2008 Annual Financial Report
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE CITY OF CHANHASSEN, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2008
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
ReferenceNo.
I. INTRODUCTORY SECTION
Letter of Transmittal3
Certificate of Achievement7
Organization9
Organization Chart10
II. FINANCIAL SECTION
Independent Auditor's Report13
Management's Discussion and Analysis15
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net AssetsStatement 131
Statement of ActivitiesStatement 232
Fund Financial Statements:
Balance Sheet - Governmental FundsStatement 334
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental FundsStatement 436
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds Statement 538
Statement of Net Assets - Proprietary FundsStatement 639
Statement of Revenues, Expenses and Changes in Fund Net Assets -
Proprietary FundsStatement 740
Statement of Cash Flows - Proprietary FundsStatement 841
Statement of Net Assets - Fiduciary FundsStatement 942
Notes to Financial Statements43
Required Supplementary Information:
Budgetary Comparison Schedule - General FundStatement 1080
Budgetary Comparison Schedule - Note to RSI86
CITY OF CHANHASSEN, MINNESOTA
TABLE OF CONTENTS
Page
ReferenceNo.
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental FundsStatement 1190
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Governmental FundsStatement 1291
Subcombining Balance Sheet - Nonmajor Special Revenue FundsStatement 1394
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Special Revenue FundsStatement 1495
Subcombining Balance Sheet - Nonmajor Debt Service FundsStatement 1598
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Debt Service FundsStatement 16100
Subcombining Balance Sheet - Nonmajor Capital Project FundsStatement 17104
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Capital Project FundsStatement 18107
Special Revenue Funds:
Schedules of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual:
Contribution FundStatement 19110
CATVStatement 20111
Combining Statement of Net Assets - Agency FundsStatement 21114
Combining Statement of Changes in Assets and Liabilities - Agency FundsStatement 22115
Supplementary Financial Information:
Combined Schedule of IndebtednessExhibit 1118
Debt Service Payments to Maturity:
General Obligation BondsExhibit 2120
General Obligation Improvement BondsExhibit 3121
Revenue BondsExhibit 4122
Taxable Valuations, Tax Levies and Tax RatesExhibit 5123
Schedule of Deferred Tax LeviesExhibit 6124
CITY OF CHANHASSEN, MINNESOTA
TABLE OF CONTENTS
Page
ReferenceNo.
III. STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Assets by ComponentTable 1127
Changes in Net AssetsTable 2128
Fund Balances - Governmental FundsTable 3130
Changes in Fund Balances - Governmental FundsTable 4131
Revenue Capacity:
Tax Capacity and Estimated Market Value of Taxable PropertyTable 5132
Direct and Overlapping Property Tax RatesTable 6134
Principal Property TaxpayersTable 7135
Property Tax Levies and CollectionsTable 8137
Debt Capacity:
Ratios of Outstanding Debt by TypeTable 9138
Direct and Overlapping Governmental Activities DebtTable 10140
Legal Debt Margin InformationTable 11141
Pledged Revenue CoverageTable 12142
Demographic and Economic:
Demographic and Economic StatisticsTable 13143
Principal EmployersTable 14145
Operating Information:
Full-Time Equivalent City Government Employees by Function/ProgramTable 15146
Operating Indicators by Function/ProgramTable 16148
Capital Asset Statistics by Function/ProgramTable 17150
- This page intentionally left blank -
I. INTRODUCTORY SECTION
1
- This page intentionally left blank -
2
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.
Cash Management Policies and Practices
The primary financial goal of the City investment strategy is to ensure the safety of the principal invested by the
City. The City only invests in instruments that are covered under Minnesota Statute 475.66. Cash balances from
all City funds are pooled into the Investment Trust Fund, and investment income is then distributed on a pro-rata
basis with final allocation occurring at year end.
Risk Management
The City contracts with outside agencies to provide insurance protecting the City from potential claims such as
workers' compensation, general liability and auto liability.
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, 2007. 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 sixteen consecutive years (fiscal years ended 1992 – 2007). 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 auditors' 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,
Greg Sticha, Finance Director
5
- This page intentionally left blank -
6
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Chanhassen
Minnesota
Text38:
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2007
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
7
- This page intentionally left blank -
8
CITY OF CHANHASSEN, MINNESOTA
ORGANIZATION
December 31, 2008
Term Expires
Mayor:
Tom Furlong12/31/10
Council Members:
Bethany Tjornhom12/31/12
Vicki Erns12/31/10
t
Jerry McDonald12/31/12
Bryan Litse12/31/10
y
City Manager:
Todd GerhardtAppointed
Finance Director:
Greg StichaAppointed
Community Development Director:
Appointed
Kathryn Aanenso
n
Public Works Director/City Engineer:
Paul OehmeAppointed
Parks and Recreation Director:
Todd HoffmanAppointed
9
CityofChanhassen,Minnesota
CityofChanhassen,Minnesota
Organization Chart
Citizens
EnvironmentalSenior
CommissionCommission
PlanningPark & RecreationPark & Recreation
Mayor -Council
CommissionCommission
Economic
Development
Development
Authority
Administration
Law
EnforcementPublicCommunityParks and
Finance
& FireWorksDevelopmentRecreation
Administration
Administration
10
II. FINANCIAL SECTION
11
- This page intentionally left blank -
12
MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Chanhassen, Minnesota, we offer readers of the City of
Chanhassen, Minnesota’s financial statements this narrative overview and analysis of the
financial activities of the City for the fiscal year ended December 31, 2008. 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 of Chanhassen, Minnesota exceeded its liabilities at the close of the
most recent fiscal year by $167,229,402 (net assets). Of this amount, $28,288,714
(unrestricted net assets) may be used to meet the government’s ongoing obligations to
citizens and creditors in accordance with the City's fund designations and fiscal policies.
The City’s total net assets increased by $2,030,532.
As of the close of the current fiscal year, the City of Chanhassen, Minnesota’s governmental
funds reported combined ending fund balances of $31,037,444. The amount designated or
reserved through legal restrictions and City Council authorization is $29,537,511.
At the end of the current fiscal year the general fund balance of $4,881,719, included
$21,173 reserved, $3,586,750 designated and $1,273,796 undesignated.
The City’s total debt increased by $3,258,589 during the current fiscal year, from
$35,866,087 to $39,124,676. The increase is attributed to the following: a new bond issue of
$7,550,000 for the public works facility, scheduled principal payments of $3,910,000, and
adjustments to the state loan for Highway 212 of approximately $175,000.
Overview of the Financial Statements
The management’s discussion and analysis is intended to serve as an introduction to the City
of Chanhassen, Minnesota’s basic financial statements. The City’s basic financial statements
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 of Chanhassen, Minnesota’s
finances, in a manner similar to a private-sector business.
The statement of net assets presents information on all of the City of Chanhassen,
Minnesota’s assets and liabilities, with the difference between the two reported as net assets.
15
Managements Discussion and Analysis
’
Over time, increases or decreases in net assets may serve as a useful indicator of whether the
financial position of the City of Chanhassen, Minnesota is improving or deteriorating.
The statement of activities presents information showing how the City’s net assets changed
during the most recent fiscal year. All changes in net assets 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 of
Chanhassen, Minnesota 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 of Chanhassen, Minnesota include general government,
public safety, public works, parks and recreation and community development. The
business-type activities of the City of Chanhassen, Minnesota 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 of Chanhassen, Minnesota, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance-related legal requirements.
All of the funds of the City of Chanhassen, Minnesota 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
Managements Discussion and Analysis
’
The City of Chanhassen, Minnesota 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
2006A G.O. Improvement Bonds Fund
Public Works Facility
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 of Chanhassen, Minnesota adopts an annual appropriated budget for its general and
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 of Chanhassen, Minnesota 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
of Chanhassen, Minnesota’s own program. The accounting used for fiduciary funds is much
like that used for proprietary funds.
The basic fiduciary fund financial statement can be found on statement 9 of this report.
17
Managements 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 statements and
schedules can be found on statement 11 through statement 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. In the case of the City of Chanhassen, Minnesota, assets exceeded
liabilities by $167,229,402 at the close of the most recent fiscal year.
The largest portion of the City of Chanhassen, Minnesota’s net assets ($126,153,120 or
75.4%) reflects its investment in capital assets (e.g. land, buildings, machinery, and
equipment) net of any related debt used to acquire those assets that is still outstanding. The
City of Chanhassen, Minnesota uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City of
Chanhassen, Minnesota’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 ASSETS
Governmental ActivitiesBusiness-Type ActivitiesTotals
200820072008200720082007
Current and other assets$37,338,712$30,497,159$13,870,692$17,916,543$51,209,404$48,413,702
Capital assets88,717,20789,110,54567,956,75266,417,257156,673,959155,527,802
Total assets$126,055,919$119,607,704$81,827,444$84,333,800$207,883,363$203,941,504
Long-term liabilities outstanding$26,606,863$21,846,990$12,517,813$14,019,097$39,124,676$35,866,087
Other liabilities878,7292,303,043650,556520,3401,529,2852,823,383
Total liabilities$27,485,592$24,150,033$13,168,369$14,539,437$40,653,961$38,689,470
Net assets:
Invested in capital assets, net of related debt$70,611,368$68,982,379$55,541,752$52,502,257$126,153,120$121,484,636
Restricted12,787,56811,844,126 - - 12,787,56811,844,126
Unrestricted15,171,39114,631,16613,117,32317,292,10628,288,71431,923,272
Total net assets$98,570,327$95,457,671$68,659,075$69,794,363$167,229,402$165,252,034
18
Managements Discussion and Analysis
’
A portion of the of the City of Chanhassen, Minnesota’s net assets represents resources that
are subject to external restrictions on how they may be used. The remaining balance of
unrestricted net assets ($28,288,714) may be used to meet the City's ongoing obligations to
citizens and creditors.
At the end of the current fiscal year, the City of Chanhassen, Minnesota is able to report
positive balances in all three categories of net assets, both for the government as a whole, as
well as for its separate governmental and business-type activities.
Governmental Activities
Total net assets of the City’s governmental activities increased $3,112,656, or 3.3%. The
components of net assets increased or decreased as follows:
Net assets invested in capital assets, net of related debt, increased $1,628,989 due
primarily to retirement of debt.
Net assets restricted for debt service increased $1,118,591 due primarily to
assessment rolls adopted in 2008.
Net assets restricted for tax increment purposes decreased $175,149.
Unrestricted net assets increased $540,225.
Liabilities increased $3,335,559, or 13.8%, in 2008. This was primarily due to the increase
in loans and bonds payable of $4,686,959 (as noted previously in the Financial Highlights
section) and the decrease of other governmental and miscellaneous payables of
approximately $1.1 million.
19
Managements Discussion and Analysis
’
Business-type Activities
The net assets of the City’s business-type activities decreased by $1,082,124, or 1.6%.
Amounts invested in capital assets, net of related debt increased $3,039,495 while
unrestricted net assets decreased $4,174,783, due to amounts expended for various
infrastructure projects.
City of Chanhassen, Minnesota's Changes in Net Assets
Governmental ActivitiesBusiness-Type ActivitiesTotals
200820072008200720082007
Revenues:
Program revenues:
Charges for services$3,051,081$3,449,688$5,074,906$5,099,975$8,125,987$8,549,663
Operating grants and contributions346,023452,79836,35045,172382,373497,970
Capital grants and contributions3,221,6367,464,6971,527,6243,340,5984,749,26010,805,295
General revenues:
Property taxes9,651,7589,419,763 - - 9,651,7589,419,763
Tax increment collections574,101420,526 - - 574,101420,526
Grants and contributions not
restricted to specific programs108,039189,616 - - 108,039189,616
Unrestricted investment earnings1,150,9931,397,746797,079786,4551,948,0722,184,201
Miscellaneous - - 22,464127,14322,464127,143
Gain on sale of capital assets32,19510,806 - - 32,19510,806
Total revenues18,135,82622,805,6407,458,4239,399,34325,594,24932,204,983
Expenses:
General government2,469,0552,439,716 - - 2,469,0552,439,716
Public safety3,062,9413,098,068 - - 3,062,9413,098,068
Public works6,220,8167,010,981 - - 6,220,8167,010,981
Parks and recreation3,025,9873,023,032 - - 3,025,9873,023,032
Community development704,9791,052,104 - - 704,9791,052,104
Interest on long-term debt652,015835,059 - - 652,015835,059
Water - - 3,234,1393,112,5753,234,1393,112,575
Sewer - - 3,072,5883,177,3663,072,5883,177,366
Surface water management - - 1,121,1971,238,9141,121,1971,238,914
Total expenses 16,135,79317,458,9607,427,9247,528,85523,563,71724,987,815
Increase in net assets before transfers2,000,0335,346,68030,4991,870,4882,030,5327,217,168
Transfers1,112,623(5,077,531)(1,112,623)5,077,531 - -
Change in net assets3,112,656269,149(1,082,124)6,948,0192,030,5327,217,168
Net assets - beginning, as previously stated95,457,67195,188,52269,794,36362,846,344165,252,034158,034,866
Prior period adjustment - - (53,164) - (53,164) -
Net assets - beginning, as restated95,457,67195,188,52269,741,19962,846,344165,198,870158,034,866
Net assets - ending$98,570,327$95,457,671$68,659,075$69,794,363$167,229,402$165,252,034
20
Managements Discussion and Analysis
’
Governmental Activities
Revenues
Revenues for the City’s governmental activities decreased by $4,669,814, or 20.5%. Capital
grants and contributions decreased by approximately $4.2 million due to smaller assessment
rolls adopted in 2008 and fewer prepaid assessments as compared to 2007. Also impacting
revenues was a $400,000 decrease in charges for services resulting from slowed development
activities within the City.
Expenses
Expenses for the City’s governmental activities decreased by $1,323,167, or 7.6%. Public
works and community development expenditures decreased approximately $1.1 million
while other functions remained relatively flat in comparative expenses from the previous
year. No specific significant items can be attributed to the decreases in expenses during
2008.
Below are specific graphs which provide comparisons of the governmental activities
revenues and expenses:
Governmental Activities -Revenues
Grants and
contributions not
restricted to specific
Tax increment collections
programs .6%
Miscellaneous
Unrestricted
3.2%
.1%
investment
earnings 6.3%
Charges for services 16.9%
Operating grants and
contributions 1.9%
Property taxes 53.2%
Capital grants
and contributions 17.8%
21
Managements Discussion and Analysis
’
Governmental Activities -Expenses
Interest on long-term debt
General government 15.3%
3.9%
Community development
4.4%
Parks and recreation 18.8%
Public Safety 19%
Public works 38.6%
Business-Type Activities
Revenues
Revenues for the City’s business-type activities decreased by $1,940,920, or 20.6%.
Decreased revenue from connection charges ($1,502,693) and decreased asset contributions
from developers ($267,082) primarily account for the decrease.
In addition to the decrease in revenues mentioned above, transfers to business-type activities
on the statement of activities decreased from $5,077,531 in 2007 to $1,112,623 in 2008. This
is due to significantly smaller transfers of capital assets from the governmental activities in
2008.
Expenses
The City’s expenses for business-type activities decreased by $100,931, or 1.3%. There are
no specific significant items that can be attributed to the immaterial decrease.
22
Managements Discussion and Analysis
’
Below are specific graphs showing the business-type activities revenue and expense
comparisons:
Unrestricted investment
earnings 10.7%
Miscellaneous 0.3%
Business-TypeActivities -Revenue
Capital grants
and contributions 20.5%
Operating grants
and
contributions
0.5%
Charges for services 68.0%
Business-Type Activities -Expenses
Surface water 15.1%
Water 43.5%
Sewer 41.4
23
Managements Discussion and Analysis
’
Financial Analysis of the Government's Funds
Governmental Funds
. The focus of the City of Chanhassen, Minnesota’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 of Chanhassen, Minnesota’s
financing requirements. In particular, unreserved 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 of Chanhassen, Minnesota’s governmental
funds reported combined ending fund balances of $31,037,444. Approximately 73.6% of this
total amount ($22,845,067) constitutes unreserved, but designated, fund balance.The
reserved portion of the fund balance ($6,692,444) has already been committed 1) to provide
for prepaid items ($21,198), 2) for future programs ($29,499), and 3) to pay debt service
($6,641,747).
The general fund decreased by $609,567 in 2008, due to the transfer of $796,836 to the
revolving assessment construction fund. This transfer was made because excess fund
balance was available above and beyond the City’s required cash reserve policy and
catastrophic contingency reserve.
The 2006A G.O. Improvement Bonds debt service fund decreased by $518,750, which was
due to scheduled principal and interest payments in 2008.
The Public Works Facility capital project fund was created in 2008 to account for
construction costs of the new public works facility. The remaining majority of the bond
proceeds will be spent in 2009 and into early 2010.
24
Managements Discussion and Analysis
’
The Revolving Assessment fund increased by $1,914,760. The increase was due to transfers
from enterprise funds for repayment of related construction costs for street reconstruction
projects.
The nonmajor special revenue funds decreased by $27,955 in 2008. No significant items can
be attributed to this decrease.
The nonmajor debt service funds decreased by $117,572 in 2008, due to regularly scheduled
debt service payments.
The nonmajor capital project funds increased by $354,949 due to increased collection of TIF
proceeds and development related construction fees.
Proprietary funds
. The City of Chanhassen, Minnesota’s proprietary funds provide the
same type of information found in the government-wide financial statements, but in more
detail.
The unrestricted net assets in the respective proprietary funds are water $5,943,798, sewer
$4,342,354 and surface water management $2,831,171. The water fund had an increase in
net assets in 2008 of $54,922 while the sewer and surface water management funds had
decreases in net assets of $612,602 and $524,444, respectively.
Budgetary Highlights
General Fund
The expenditure and revenue budgets were not amended in 2008.
Budgetary Variances – Revenues
The positive general fund revenue variance of $115,253 was due to larger than anticipated
collections of state aids and interest earnings.
Budgetary Variances – Expenses
The City’s expenses for the general fund had a positive variance of $72,016, which was less
than 1% of the City’s total budget and no specific significant items attribute to this variance.
25
Managements Discussion and Analysis
’
Capital Asset and Debt Administration
Capital assets
. The City of Chanhassen, Minnesota’s, investment in capital assets for its
governmental and business type activities as of December 31, 2008, amounts to
$156,673,959 (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
)
BeginningEnding
Primary GovernmentBalanceIncreaseDecreaseBalance
Governmental activities:
Capital assets - not depreciated:
Land$16,296,657$728,100$ - $17,024,757
Construction in progress3,104,9292,491,304(1,276,989)4,319,244
Total capital assets not being depreciated19,401,5863,219,404(1,276,989)21,344,001
Capital assets - being depreciated:
Buildings and structures15,203,969 - - 15,203,969
Machinery and equipment6,486,306442,673(123,470)6,805,509
Other improvements 4,502,292635,374 - 5,137,666
Infrastructure102,420,1421,594,631(104,400)103,910,373
Total capital assets being depreciated128,612,7092,672,678(227,870)131,057,517
Less accumulated depreciation for:
Buildings and structures3,725,015368,077 - 4,093,092
Machinery and equipment3,883,136425,176(120,805)4,187,507
Other improvements 1,335,385191,247 - 1,526,632
Infrastructure49,960,2143,986,485(69,619)53,877,080
Total accumulated depreciation58,903,7504,970,985(190,424)63,684,311
Governmental activities capital assets - net89,110,545921,097(1,314,435)88,717,207
BeginningEnding
Primary GovernmentBalanceIncreaseDecreaseBalance
Business-type activities:
Capital assets - not depreciated:
Land$1,861,117$34,019$ - $1,895,136
Construction in progress4,002,8403,771,980(2,092,862)5,681,958
Total capital assets not being depreciated5,863,9573,805,999(2,092,862)7,577,094
Capital assets - being depreciated:
Buildings and structures12,445,429 - - 12,445,429
Machinery and equipment2,199,29848,032(5,150)2,242,180
Other improvements 85,456,8162,737,368 - 88,194,184
Total capital assets being depreciated100,101,5432,785,400(5,150)102,881,793
Less accumulated depreciation for:
Buildings and structures - 249,591 - 249,591
Machinery and equipment937,852130,003(3,863)1,063,992
Other improvements 38,610,3912,578,161 - 41,188,552
Total accumulated depreciation39,548,2432,957,755(3,863)42,502,135
Business-type activities capital assets - net66,417,2573,633,644(2,094,149)67,956,752
Total capital assets - net$155,527,802$4,554,741($3,408,584)$156,673,959
Additional information on the City of Chanhassen, Minnesota’s capital assets can be found in
Note 4.
26
Managements Discussion and Analysis
’
Long-term debt
. At the end of the current fiscal year, the City of Chanhassen, Minnesota
had total bonds payable outstanding of $34,925,000, an increase of $3,640,000 from 2007.
The increase is attributed to the issuance of the public works facility bonds less scheduled
debt payments. The balance of the bonds payable outstanding is comprised of: $13,905,000
in general obligation bonds, $7,155,000 for special assessment debt which is supported in
part by special assessments, $12,415,000 of revenue bonds which financed capital
investments for the water, sewer and surface water management operations and $1,015,000
in tax increment bonds.
Additional long-term debt in the amount of $820,748 for compensated absences was also
outstanding at the end of 2008. Also outstanding is $3,375,125 for a loan construction
payable to the State of Minnesota for the City’s portion of the costs related to the
construction of State Highway 212. This project was substantially complete in 2008 and the
total loan was for approximately $3.7 million. In early 2009, this loan along with the 2006A
G.O. Improvement Bonds were refinanced.
City of Chanhassen, Minnesota’s Outstanding Debt
Governmental ActivitiesBusiness-Type ActivitiesTotals
200820072008200720082007
General obligation bonds$13,905,000$7,315,000$ - $ - $13,905,000$7,315,000
Revenue bonds435,000530,00012,415,00013,915,00012,850,00014,445,000
Tax increment bonds1,015,0001,070,000 - - 1,015,0001,070,000
General improvement bonds 7,155,0008,455,000 - - 7,155,0008,455,000
Loan payable for highway construction3,375,1253,828,166 - - 3,375,1253,828,166
Compensated absences717,935648,824102,813104,097820,748752,921
Total$26,603,060$21,846,990$12,517,813$14,019,097$39,120,873$35,866,087
The City’s bond rating was upgraded to AA+ by Standard & Poor’s in November 2008 when
the City issued its bonds for the public works facility. In early 2009, the City undertook a
refunding (mentioned above) and Standard & Poor’s upgraded the City’s rating to AAA.
The City of Chanhassen is one of only 12 communities in the State of Minnesota to have a
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
total estimated market value. The current debt limitation for the City of Chanhassen,
Minnesotais $101,847,843. Of the City's outstanding debt, $11,924,438 is counted within
the statutory limitation.
Additional information on the City of Chanhassen, Minnesota’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.
27
- This page intentionally left blank -
28
BASIC FINANCIAL STATEMENTS
29
- This page intentionally left blank -
30
CITY OF CHANHASSEN, MINNESOTA
Statement 1
STATEMENT OF NET ASSETS
December 31, 2008
Primary Government
GovernmentalBusiness-TypeTotals
Assets:ActivitiesActivities20082007
Cash and investments$31,038,698$12,391,989$43,430,687$40,325,539
Accrued interest receivable219,353148,449367,802413,390
Due from other governmental units18,98912,70131,690479,801
Accounts receivable - net321,5081,025,6661,347,1741,339,041
Property taxes receivable417,816 - 417,816248,686
Special assessments receivable5,301,150263,1075,564,2575,574,589
Prepaid items21,1982,34023,53814,181
Inventories - at cost - 26,44026,44018,475
Capital assets (net of accumulated depreciation):
Nondepreciable21,344,0017,577,09428,921,09525,265,543
Depreciable67,373,20660,379,658127,752,864130,262,259
Total assets126,055,91981,827,444207,883,363203,941,504
Liabilities:
Accounts payable234,352111,665346,017712,870
Accrued interest payable110,495209,711320,206665,890
Contracts payable170,34699,689270,035370,053
Due to other governmental units20,834185,302206,136484,537
Salaries payable249,73744,189293,926252,945
Unearned revenue92,965 - 92,965337,088
Compensated absences payable:
Due within one year44,5706,38250,95251,103
Due in more than one year673,36596,431769,796701,818
Other post employment benefits payable:
Due in more than one year3,803 - 3,803 -
Loans payable:
Due within one year318,002 - 318,002279,552
Due in more than one year3,057,123 - 3,057,1233,548,614
Bonds payable:
Due within one year2,235,000720,0002,955,0003,910,000
Due in more than one year20,275,00011,695,00031,970,00027,375,000
Total liabilities27,485,59213,168,36940,653,96138,689,470
Net assets:
Invested in capital assets, net of related debt70,611,36855,541,752126,153,120121,484,636
Restricted for:
Debt service12,165,653 - 12,165,65311,047,062
Tax increment purposes621,915 - 621,915797,064
Unrestricted15,171,39113,117,32328,288,71431,923,272
Total net assets$98,570,327$68,659,075$167,229,402$165,252,034
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, 2008
Charges For
ExpensesServices
Functions/Programs
Primary government:
Governmental activities:
General government$2,469,055$441,160
Public safety3,062,9411,471,437
Public works6,220,816220,784
Parks and recreation3,025,987868,218
Community development704,97949,482
Interest and fees on long-term debt652,015 -
Total governmental activities16,135,7933,051,081
Business-type activities:
Water3,234,1392,408,379
Sewer3,072,5882,187,209
Surface water management1,121,197479,318
Total business-type activities7,427,9245,074,906
Total primary government$23,563,717$8,125,987
The accompanying notes are an integral part of these financial statements.
32
Statement 2
Net (Expense) Revenue and
Program RevenuesChanges in Net Assets
Primary Government
OperatingCapital
Totals
Grants andGrants andGovernmentalBusiness-Type
ContributionsContributionsActivitiesActivities20082007
$600$ - ($2,027,295)$ - ($2,027,295)($2,007,285)
215,973 - (1,375,531) - (1,375,531)(766,640)
100,0003,221,636(2,678,396) - (2,678,396)534,107
29,450 - (2,128,319) - (2,128,319)(2,002,894)
- -(655,497) - (655,497)(1,014,006)
- -(652,015) - (652,015)(835,059)
346,0233,221,636(9,517,053)0(9,517,053)(6,091,777)
-776,384 -(49,376)(49,376)1,587,396
-290,915 - (594,464)(594,464)(266,476)
36,350460,325 - (145,204)(145,204)(364,030)
36,3501,527,6240(789,044)(789,044)956,890
$382,373$4,749,260(9,517,053)(789,044)(10,306,097)(5,134,887)
General revenues:
General property taxes9,651,758 - 9,651,7589,419,763
Tax increment collections574,101 - 574,101420,526
Grants and contributions not
restricted to specific programs108,039 - 108,039189,616
Unrestricted investment earnings1,150,993797,0791,948,0722,184,201
Gain on sale of capital assets32,195 -32,19510,806
Miscellaneous -22,46422,464127,143
Transfers1,112,623(1,112,623) - -
Total general revenues and transfers12,629,709(293,080)12,336,62912,352,055
Change in net assets3,112,656(1,082,124)2,030,5327,217,168
Net assets - beginning, as previously stated95,457,67169,794,363165,252,034158,034,866
Prior period adjustment -(53,164)(53,164) -
Net assets - beginning, as restated95,457,67169,741,199165,198,870158,034,866
Net assets - ending$98,570,327$68,659,075$167,229,402$165,252,034
The accompanying notes are an integral part of these financial statements.
33
CITY OF CHANHASSEN, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2008
366 2006A G.O.
Improvement
Bonds
General Fund
Assets:
Cash and investments$5,143,207$3,005,717
Accrued interest receivable40,84430,437
Due from other governmental units18,989 -
Accounts receivable - net19,411 -
Due from other funds - -
Property taxes receivable292,499 -
Special assessments receivable2,5412,503,126
Prepaid items21,173 -
Total assets$5,538,664$5,539,280
Liabilities and Fund Balances
Liabilities:
Accounts payable$126,679$ -
Due to other funds - -
Contracts payable - -
Due to other governmental units20,834 -
Salaries payable245,821 -
Deferred revenue263,6112,503,126
Total liabilities656,9452,503,126
Fund balances:
Reserved for:
Prepaid items21,173 -
Future programs - -
Debt service - 3,036,154
Unreserved reported in:
Designated:
General Fund3,586,750 -
Special Revenue Funds - -
Capital Project Funds - -
Undesignated reported in:
General Fund1,273,796 -
Special Revenue Funds - -
Debt Service Funds - -
Capital Project Funds - -
Total fund balances4,881,7193,036,154
Total liabilities and fund balances$5,538,664$5,539,280
Fund balance reported above
Amounts reported for governmental activities in the statement of net assets 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 assets of governmental activities
The accompanying notes are an integral part of these financial statements.
34
Statement 3
Other
421 Public Works 601 Revolving
GovernmentalIntra Activity
FacilityAssessment FundFundsEliminationTotals Governmental Funds
20082007
$6,790,343$4,895,971$11,203,460$ - $31,038,698$24,011,172
10,81338,02399,236 -219,353257,366
- - - -18,989424,405
- -302,097 -321,508323,122
-13,409 -(13,409) - -
-98,33626,981 -417,816248,686
-1,518,4781,277,005 - 5,301,1505,219,198
- -25 -21,19813,210
$6,801,156$6,564,217$12,908,804($13,409)$37,338,712$30,497,159
$45,326$1,900$60,447$ - $234,352$588,672
- -13,409(13,409) - -
-158,42211,924 -170,346278,353
- - - -20,834455,776
- -3,916 -249,737216,016
-1,517,9031,341,359 - 5,625,9995,672,593
45,3261,678,2251,431,055(13,409)6,301,2687,211,410
- -25 -21,19813,210
- -29,499 -29,49934,733
- - 3,605,593 - 6,641,7477,300,492
- - - - 3,586,7503,416,950
- -525,692 -525,692548,438
6,755,8304,885,9927,090,803 - 18,732,6259,934,936
- - - - 1,273,7962,061,126
- - - - - -
- -237,721 -237,721215,298
- -(11,584) -(11,584)(239,434)
6,755,8304,885,99211,477,749031,037,44423,285,749
$6,801,156$6,564,217$12,908,804($13,409)$37,338,712$30,497,159
$31,037,444$23,285,749
88,717,20789,110,545
5,533,0345,335,505
(26,717,358)(22,274,128)
$98,570,327$95,457,671
The accompanying notes are an integral part of these financial statements.
35
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2008
366 2006A G.O.
General FundImprovement Bonds
Revenues:
General property taxes$6,581,268$ -
Tax increment collections - -
Licenses and permits1,378,003 -
Intergovernmental302,947 -
Special assessments - 30,044
Charges for services592,597 -
Fines and forfeits124,633 -
Investment income216,283163,519
Contributions and donations30,650 -
Other207,172 -
Total revenues9,433,553 193,563
Expenditures:
Current:
General government1,881,342 -
Public safety2,835,279 -
Public works2,108,722 -
Parks and recreation1,850,446 -
Community development420,495 -
Capital outlay:
General government - -
Public safety - -
Public works - -
Parks and recreation - -
Debt service:
Principal - 470,000
Interest and paying agent fees - 242,313
Bond issuance costs - -
Developer assistance - -
Total expenditures9,096,284 712,313
Revenues over (under) expenditures337,269 (518,750)
Other financing sources (uses):
Bonds issued - -
Loans issued - -
Transfers in - -
Transfers out(946,836) -
Sale of capital assets - -
Total other financing sources (uses)(946,836)0
Net change in fund balance(609,567)(518,750)
Fund balance - January 15,491,2863,554,904
Fund balance - December 31$4,881,719$3,036,154
The accompanying notes are an integral part of these financial statements.
36
Statement 4
Other
421 Public Works 601 Revolving GovernmentalIntra Activity
FacilityAssessment FundFundsEliminations
Totals Governmental Funds
20082007
$ -$100,000$2,901,065$ - $9,582,333$9,403,109
-97,450476,651 -574,101420,526
- -432,542 - 1,810,5452,171,558
-300,0001,545,023 - 2,147,9701,148,034
- 457,503136,346 - 623,8933,922,517
- - 248,612 - 841,209738,669
- - - - 124,633145,682
69,425179,312522,454 - 1,150,9931,397,746
- - 12,760 - 43,41047,428
- 60,00022,105 - 289,277404,426
69,425 1,194,265 6,297,558 0 17,188,364 19,799,695
- - 221,170 - 2,102,5122,116,928
- - 50,017 - 2,885,2962,924,751
- 34,173643,502 - 2,786,3973,735,950
- - 82,907 - 1,933,3531,848,880
- - 48,324 - 468,819841,306
- - 233,600 - 233,6006,734
- - 54,284 - 54,284505,215
386,6422,838,9701,451,567 - 4,677,1796,693,387
- - 642,508 - 642,5081,491,848
- - 2,219,552 - 2,689,5521,750,000
- - 632,535 - 874,848769,212
93,811 - - - 93,811 -
- - 226,055 - 226,055206,753
480,453 2,873,143 6,506,021 0 19,668,214 22,890,964
(411,028)(1,678,878)(208,463)0 (2,479,850)(3,091,269)
7,164,308 - 385,692 - 7,550,0003,014,744
- - 24,839 - 24,839 -
2,5503,863,6241,363,427(2,583,590)2,646,011537,564
- (269,986)(1,366,768)2,583,590 - (1,163,065)
- - 10,695 - 10,69516,740
7,166,858 3,593,638 417,885 0 10,231,545 2,405,983
6,755,830 1,914,760 209,422 0 7,751,695 (685,286)
- 2,971,23211,268,327 - 23,285,74923,971,035
$6,755,830$4,885,992$11,477,749$0$31,037,444$23,285,749
The accompanying notes are an integral part of these financial statements.
37
CITY OF CHANHASSEN, MINNESOTA
Statement 5
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, 2008
20082007
Amounts reported for governmental activities in the
statement of activities (page 42) are different because:
Net changes in fund balances - total governmental funds (statement 4)$7,751,695($685,286)
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.636,5863,791,798
The net effect of various miscellaneous transactions involving capital assets
is to increase (decrease) net assets.(1,029,924)(3,711,619)
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds.197,5292,248,794
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.(4,686,959)(1,264,744)
Other post employment benefits in the statement of activites does not
require the use of current financial resources and, therefore, is not
reported as expenditures in governmental funds.(3,803) -
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.247,532(109,794)
Change in net assets of governmental activities (statement 2)$3,112,656$269,149
The accompanying notes are an integral part of these financial statements.
38
CITY OF CHANHASSEN, MINNESOTA
Statement 6
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31, 2008
Surface Water
WaterSewerManagementTotals
Assets:20082007
Current assets:
Cash and cash equivalents$5,779,360$3,867,067$2,745,562$12,391,989$16,314,367
Accrued interest receivable67,22541,70239,522148,449156,024
Due from other governmental units - - 12,70112,70155,396
Accounts receivable - net460,927467,88196,8581,025,6661,015,919
Special assessments receivable53,45611,065 - 64,52164,376
Connection charges receivable136,44062,146 - 198,586284,820
Prepaid items1,1361,0061982,340971
Water meter inventory26,440 - - 26,44018,475
Total current assets6,524,984 4,450,867 2,894,841 13,870,692 17,910,348
Noncurrent assets:
Deferred connection charges - - - - 6,195
Capital assets:
Land1,370,624145,200379,3121,895,1361,861,117
Buildings and structures12,445,429 - - 12,445,42912,445,429
Machinery and equipment1,796,317436,8369,0262,242,1792,199,298
Other improvements36,320,65331,110,82320,762,70988,194,18585,456,816
Construction in progress3,416,047650,5861,615,3255,681,9584,002,840
Total capital assets55,349,070 32,343,445 22,766,372 110,458,887 105,965,500
Less: Allowance for depreciation(17,895,500)(15,804,336)(8,802,299)(42,502,135)(39,548,243)
Net capital assets37,453,57016,539,10913,964,07367,956,75266,417,257
Total noncurrent assets37,453,57016,539,10913,964,07367,956,75266,423,452
Total assets43,978,55420,989,97616,858,91481,827,44484,333,800
Liabilities:
Current liabilities:
Accounts payable55,54318,64837,474111,665124,198
Accrued interest payable202,5057,206 - 209,711238,752
Contracts payable90,1508,4251,11499,68991,700
Due to other governmental units168,85316,449 - 185,30228,761
Salaries payable19,68815,1269,37544,18936,929
Compensated absences payable - due within one year2,7592,6489756,3827,065
Bonds payable - due within one year590,000130,000 - 720,0001,500,000
Total current liabilities1,129,498 198,502 48,938 1,376,938 2,027,405
Noncurrent liabilities:
Compensated absences payable - due in more than one year 41,68840,01014,73396,43197,032
Bonds payable - due in more than one year11,430,000265,000 - 11,695,00012,415,000
Total noncurrent liabilities11,471,688 305,010 14,733 11,791,431 12,512,032
Total liabilities12,601,186503,51263,67113,168,36914,539,437
Net assets:
Invested in capital assets, net of related debt25,433,57016,144,11013,964,07255,541,75252,502,257
Unrestricted5,943,7984,342,3542,831,17113,117,32317,292,106
Total net assets$31,377,368$20,486,464$16,795,243$68,659,075$69,794,363
The accompanying notes are an integral part of these financial statements.
39
CITY OF CHANHASSEN, MINNESOTA
Statement 7
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For The Year Ended December 31, 2008
Surface
Water
WaterSewerManagement
Totals
20082007
Operating revenues:
Charges for services$2,309,761$2,136,093$469,587$4,915,441$4,906,909
Penalties and other98,61851,1169,731159,465193,066
Total operating revenues2,408,379 2,187,209 479,318 5,074,906 5,099,975
Operating expenses:
Personal services489,994330,774217,0981,037,8661,010,288
Materials and supplies223,14632,90520,784276,835273,439
Contractual services:
MCES - 1,202,670 - 1,202,6701,380,304
Other412,040450,453215,3611,077,8541,323,836
Repairs and maintenance238,20499,140 - 337,344297,102
Depreciation1,351,325938,476667,9542,957,7552,668,372
Total operating expenses2,714,709 3,054,418 1,121,197 6,890,324 6,953,341
Operating income (loss)(306,330)(867,209)(641,879)(1,815,418)(1,853,366)
Nonoperating revenues (expenses):
Investment income355,467227,790213,822797,079786,455
Connection charges491,056173,491297,273961,8202,464,513
Intergovernmental - - 36,35036,35045,172
Special assessment revenue67,80725,884 - 93,691136,890
Interest and fiscal charges(492,676)(18,170) - (510,846)(575,514)
Gain (loss) on disposal of capital assets(26,754) - - (26,754) -
Miscellaneous 5,1774,05113,23622,464127,143
Total nonoperating revenues (expenses)400,077 413,046 560,681 1,373,804 2,984,659
Income before contributions and transfers93,747 (454,163)(81,198)(441,614)1,131,293
Transfer in - 7,37970,04977,4281,318,818
Transfer out (932,955)(426,472)(1,364,012)(2,723,439)(693,317)
Capital contributions894,130260,654850,7172,005,5015,191,225
Change in net assets54,922 (612,602)(524,444)(1,082,124)6,948,019
Net assets - January 1, as previously reported31,322,44621,099,06617,372,85169,794,36362,846,344
Prior period adjustment - - (53,164)(53,164) -
Net assets - January 1, as restated31,322,44621,099,06617,319,68769,741,19962,846,344
et assets - December 31$31,377,368$20,486,464$16,795,243$68,659,075$69,794,363
N
CapitalTransfers -
ContributionsNet
Amounts reported above$2,005,501($2,646,011)
Amounts reported for business-type activities in the
statement of activities are different because:
Transfer in of capital assets from governmental activities(1,533,388)1,533,388
Amounts reported on the statement of activities$472,113($1,112,623)
The accompanying notes are an integral part of these financial statements.
40
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF CASH FLOWSStatement 8
PROPRIETARY FUNDS
For The Year Ended December 31, 2008
Surface Water
WaterSewerManagementTotals
20082007
Cash flows from operating activities:
Receipts from customers and users$2,417,564$2,229,166$461,124$5,107,854$4,943,206
Payment to suppliers(777,077)(1,771,549)(211,403)(2,760,029)(3,293,919)
Payment to employees(490,755)(329,818)(211,317)(1,031,890)(996,586)
Miscellaneous revenue (expense)5,1774,05113,23622,464127,143
Net cash flows from operating activities1,154,909131,85051,6401,338,399779,844
Cash flows from noncapital financing activities:
Transfers in - 7,37970,04977,4281,318,818
Transfers out(932,955)(426,472)(1,364,012)(2,723,439)(693,317)
Operating grant - - 36,35036,35045,172
Net cash flows from noncapital financing activities(932,955)(419,093)(1,257,613)(2,609,661)670,673
Cash flows from capital and related
financing activities:
Acquisition of capital assets(2,155,991)(165,477)(242,210)(2,563,678)(2,124,999)
Connection charges542,796214,180297,2731,054,2492,550,357
Special assessment revenue68,51625,030 - 93,546146,538
Principal paid on bonds(1,370,000)(130,000) - (1,500,000)(905,000)
Interest and fiscal charges(519,496)(20,391) - (539,887)(589,607)
Net cash flows from capital
and related financing activities(3,434,175)(76,658)55,063(3,455,770)(922,711)
Cash flows from investing activities:
Investment income364,387226,043214,224804,654809,896
Net increase (decrease) in cash and cash equivalents(2,847,834)(137,858)(936,686)(3,922,378)1,337,702
Cash and cash equivalents - January 18,627,1944,004,9253,682,24816,314,36714,976,665
Cash and cash equivalents - December 31$5,779,360 $3,867,067 $2,745,562 $12,391,989 $16,314,367
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) ($306,330)($867,209)($641,879)($1,815,418)($1,853,366)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Miscellaneous revenue (expense)5,1774,05113,23622,464127,143
Depreciation1,351,325938,476667,9542,957,7552,668,372
Changes in assets and liabilities:
Decrease (increase) in receivables9,18541,957(18,194)32,948(156,769)
Decrease (increase) in prepaid items(651)(520)(198)(1,369)803
Decrease (increase) in inventory(7,965) - - (7,965)3,372
Increase (decrease) in payables104,16815,09530,721149,984(9,711)
Total adjustments1,461,239 999,059 693,519 3,153,817 2,633,210
Net cash provided by operating activities$1,154,909$131,850$51,640$1,338,399$779,844
Noncash investing, capital and financing activities:
Water system assets in the amount of $894,130 and $2,275,373 were contributed to the Water Fund in 2008 and 2007, respectively.
Sewer system assets in the amount of $260,654 and $1,739,398 were contributed to the Sewer Fund in 2008 and 2007, respectively.
Surface water management system assets in the amount of $850,717 and $1,176,454 were contributed to the Surface Water
Fund in 2008 and 2007, respectively.
The accompanying notes are an integral part of these financial statements.
41
CITY OF CHANHASSEN, MINNESOTA
Statement 9
STATEMENT OF NET ASSETS
FIDUCIARY FUNDS
December 31, 2008
Agency Funds
20082007
Assets:
Cash and investments$709,405$808,404
Liabilities:
Accounts payable$1,500$2,245
Escrow deposits payable707,905806,159
Total liabilities$709,405$808,404
The accompanying notes are an integral part of these financial statements.
42
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Chanhassen 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 of Chanhassen 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 of
Chanhassen, Minnesota (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 of
Chanhassen, Minnesota transferred to the Economic Development Authority of the City of
Chanhassen all activities, programs, operations, and authority of the existing City of Chanhassen
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.
. The City is a member of a joint powers
Western Area Fire Training Association (WAFTA)
group along with ten other communities. WAFTA operates a fire training facility in western
Carver County. The site has been identified by the Minnesota Pollution Control Agency (MPCA)
as contaminated, potentially requiring clean-up. The dollar amount of the clean-up cost is not
determinable. Additionally, the City of Chanhassen’s liability, if any, is not determinable.
43
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
B.GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The government-wide financial statements (i.e., the statement of net assets and the statement of
changes in net assets) report information on all of the nonfiduciary activities of the primary
government and its component units. For the most part, the effect of interfund activity has been
removed from these statements. 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 government 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, 2008
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 government.
The government reports the following major governmental funds:
General Fund is the government’s primary operating fund. It accounts for all financial resources
of the general government, except those required to be accounted for in another fund.
2006A General Obligation Improvement Bond Fund (366) accounts for the accumulation of
resources for payment of the general obligation bonds issued to finance utility improvements in
the MUSA area.
Public Works Facility(421) accounts for the construction costs of the new public works facility.
Revolving Assessment Fund (601). This construction fund 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 government 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 government 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.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989,
generally are followed in both the government-wide and proprietary fund financial statements to the
extent that those standards do not conflict with or contradict guidance of the Governmental
Accounting Standards Board. Governments also have the option of following subsequent private-
sector guidance for their business-type activities and enterprise funds, subject to this same limitation.
The government has elected not to follow subsequent private-sector guidance.
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
45
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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.
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
government’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 and Special Revenue
Funds.
Budgeted amounts are reported as originally adopted, or as amended by the City Council. There were
no budget amendments during 2008 to the General Fund or the Special Revenue Funds. 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.
46
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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 the City policy.
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.
The Special Revenue Funds expenditures did not exceed budget appropriation.
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 as of 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. 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.
47
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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.
H. SPECIAL ASSESSMENT REVENUE RECOGNITION
Special assessments are levied against benefited properties for the cost or a portion of the cost of
special assessment improvement projects in accordance with State Statutes. These assessments are
collectible by the City over a term of years usually consistent with the term of the related bond issue.
Collection of annual installments (including interest) is handled by the County Auditor in the same
manner as property taxes. Property owners are allowed to (and often do) prepay future installments
without interest or prepayment penalties.
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that
property until full payment is made or the amount is determined to be excessive by the City Council or
court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit
sale and the first proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the
City in payment of delinquent special assessments. Generally, the City will collect the full amount of
its special assessments not adjusted by City Council or court action. Pursuant to State Statutes, a
property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or
seasonal recreational land in which event the property is subject to such sale after five years.
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.
48
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
I. INVENTORIES
GOVERNMENTAL FUNDS
The original cost of materials and supplies has been 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.
J. CAPITAL ASSETS
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, trails,
sidewalks, and similar items), are reported in the applicable governmental or business-type activities
columns in the government-wide financial statements. Capital assets are defined by the government as
assets with an initial, individual cost of more than $5,000 (amount not rounded) 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.
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, 2008, no interest was
capitalized in connection with construction in progress.
Property, plant and equipment of the government is depreciated using the straight line method over the
following estimated useful lives:
Buildings and structures 20 – 50 years
Machinery and equipment 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
49
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
K. INTERFUND RECEIVABLES/PAYABLES
During the course of operations, numerous transactions occur between individual funds for goods
provided or services rendered. Short-term interfund loans are classified as “interfund
receivables/payables.” All short-term “interfund receivables/payables” at December 31, 2008 are
planned to be eliminated in 2009. 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.”
Property taxes and special assessment receivables have been reported net of estimated uncollectible
accounts (See Note 1 G and H). 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.
L. 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.
The City’s liability for compensated absences at December 31, 2008 is scheduled below:
Vacation$476,517
Severance295,979
Comp time48,252
$820,748
M. 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 assets.
Bond premiums and discounts, as well as issuance costs, are immaterial and are expensed in the year
of bond issuance.
50
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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.
N. FUND EQUITY
In the fund financial statements, governmental funds report reservations of fund balance for amounts
not appropriable for expenditure or legally segregated for a specific future use. Designated fund
balances represent tentative plans for future use of financial resources.
O. INTERFUND TRANSACTIONS
Interfund services provided and used are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it
that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing
fund and as reductions of expenditures/expenses in the fund that is reimbursed. Interfund loans are
reported as an interfund loan receivable or payable which offsets the movement of cash between
funds. Interfund interest paid out of governmental funds is either eliminated against governmental
activities investment earnings, (if paid to governmental activities) or reclassified to a transfer out (if
paid to business-type activities) on the statement of activities. All other interfund transactions are
reported as transfers.
P. 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.
Q. RECLASSIFICATIONS
Certain amounts in the prior year have been reclassified to conform with the current year presentation.
51
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
R. 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 ASSETS
The governmental fund balance sheet includes a reconciliation between fund balances – total
governmental funds and net assets – governmental activities as reported in the government-wide
statement of net assets. 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 $26,717,358 difference are as follows:
Bonds payable$22,510,000
Loan payable3,375,125
Accrued interest payable110,495
Compensated absences717,935
Other post employment benefit payable3,803
Net adjustment to increase fund balances - total governmental
funds to arrive at net assets - governmental activities$26,717,358
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 andchanges in
net assets of governmental activities as reported in the government-wide statement of activities.
One element of that reconciliation explains that “governmental funds report capital outlays as
expenditures. However, in the statement of activities the cost of those assets is allocated over
their estimated useful lives and reported as depreciation expense.” The details of this $636,586
difference are as follows:
Capital outlay/construction$5,607,571
Depreciation expense(4,970,985)
Net adjustment to increase net changes in fund balances - total
governmental funds to arrive at changes in net assets of
governmental activities$636,586
52
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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 assets.” The details of this ($1,029,924) difference are as follows:
Donation of capital assets increase net assets in the
statement of activities, but do not appear in the governmental
funds because they are not financial resources$519,410
Transfer of capital assets to Enterprise Funds.(1,533,388)
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(15,946)
Net adjustment to decrease net changes in fund
balances - total governmental funds to arrive at
changes in net assets of governmental activities($1,029,924)
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 $197,529 difference are as follows:
General property taxes deferred revenue:
At December 31, 2007($152,960)
At December 31, 2008222,385
Special assessments deferred revenue:
At December 31, 2007(5,163,942)
At December 31, 20085,300,427
Other 2007 revenue has been deferred because it was not
collected within 60 days from year-end.
At December 31, 2007(18,603)
At December 31, 200810,222
Net adjustment to increase net changes in fund balances - total
governmental funds to arrive at changes in net assets of
governmental activities.$197,529
53
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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 assets. The details of this ($4,686,959) difference are
as follows:
Debt issued:
Bonds issued($7,550,000)
Loan issued($24,839)
Principal repayments:
General obligation debt960,000
General obligation improvement bonds
with pledged special assessments 1,300,000
General obligation tax increment bonds55,000
Public project revenue bonds95,000
Loan279,552
Loan refund198,328
Net adjustment to decrease net changes in fund balances - total
governmental funds to arrive at changes in net assets of
governmental activities.($4,686,959)
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 $247,532 difference are as follows:
Compensated absences($69,111)
Accrued interest316,643
Net adjustment to increase net changes in fund balances - total
governmental funds to arrive at changes in net assets of
governmental activities.$247,532
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. As of December 31, 2008, the bank balance of the City’s
54
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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
Investors Service, Inc. or Standard & Poor’s Corporation; and
f)Time deposits that are fully insured by any federal agency.
At December 31, 2008 the carrying amount of the City’s deposits with financial institutions was
$11,321,504.
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) Obligations of the State of Minnesota or any of its municipalities 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.
55
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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 475.61, subdivision 6.
As of December 31, 2008 the City had the following investments and maturities:
Investment Maturities (in Years)
FairLess
Investment TypeRatingValueThan 11-56-10
Fannie Mae Discount NotesAAA$994,400$994,400$ - $ -
Freddie Mac Notes (1)AAA2,110,5701,025,5701,085,000 -
Federal Farm Credit Bank NotesAAA3,141,754 - 3,141,754 -
Federal Home Loan Bank NotesAAA8,841,6351,004,2087,837,427 -
Federal Home Loan Mortgage Corp. NotesAAA3,612,936 - 3,612,936 -
Federal National Mortgage Assn. NotesAAA8,731,9032,524,6906,207,213 -
Municipal bondsAAA184,767 - 184,767 -
Money market mutual fundN/A5,199,8895,199,889 - -
Total$32,817,854$10,748,757$22,069,097$0
Total investments$32,817,854
(1)These investments have call dates that occur inDeposits11,321,504
less than one year.Petty cash735
Total cash and investments$44,140,093
C. INVESTMENT RISKS
The City’s investment policy is to follow Minnesota State Statutes as described above which reduces
the City’s exposure to credit, custodial credit, and interest rate risks. Specific risk information for the
City is as follows:
Interest rate risk – 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 reasonably anticipated, i.e., not investing in maturities
longer than five years.
56
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Credit risk – The City does not have a formal investment policy that further limits the ratings of their
investments from those that are authorized by Minnesota Statutes. The City’s external investment pool
investment 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 – The City places no limit on the amount the City may invest in any one
issuer. More than 5% of the City’s investments are in various holdings as follows:
Federal Farm Credit Bank Notes9.6%
Federal Home Loan Bank Notes26.9%
Federal Home Loan Mortgage Corp. Notes11.0%
Federal National Mortgage Assn. Notes26.6%
Freddie Mac Notes6.4%
Custodial Credit Risk – For investments in securities, custodial credit risk is the risk that in the event
of a failure of the counterparty, the City will not be able to recover the value of its investments in
securities that are in the possession of an outside party. As of December 31, 2008, all investments of
the City were insured, registered and held by the City or its agent in the City’s name.
Note 3 RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2008 are as
follows:
CertifiedDelinquent Special
AccountsPropertyAssessment
ReceivableTaxesReceivableTotal
Major Funds:
General$ - $56,782$ - $56,782
2006A G.O. Improvement - - 2,480,7152,480,715
Revolving Assessment Fund - - 1,337,8021,337,802
Water6,159 - 132,066138,225
Sewer - - 46,58646,586
Nonmajor Funds - - 1,190,6991,190,699
$6,159$56,782$5,187,868$5,250,809
57
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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:
Major Funds
2006A
G.O.Revolving
General ImprovementAssessment Nonmajor
FundBondsFundFundsTotal
Unavailable:
Delinquent property taxes receivable$220,565$ - $ - $1,826$222,391
Special assessments not yet due2,5412,503,1261,517,9031,276,8515,300,421
Accounts receivable not received within 60 days10,222 - - - 10,222
Total unavailable revenue233,3282,503,1261,517,9031,278,6775,533,034
Unearned:
Grant revenue received but not yet earned - - - 62,68262,682
Antenna rental fees received but not yet earned30,283 - - - 30,283
Total unearned revenue30,2830062,68292,965
Total deferred (unavailable)/unearned revenue
for governmental funds$263,611$2,503,126$1,517,903$1,341,359$5,625,999
Note 4 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2008 was as follows:
BeginningEnding
Primary Government
BalanceIncreaseDecreaseBalance
Governmental activities:
Capital assets - not depreciated:
Land$16,296,657$728,100$ - $17,024,757
Construction in progress3,104,9292,491,304(1,276,989)4,319,244
Total capital assets not being depreciated19,401,5863,219,404(1,276,989)21,344,001
Capital assets - being depreciated:
Buildings and structures15,203,969 - - 15,203,969
Machinery and equipment6,486,306442,673(123,470)6,805,509
Other improvements 4,502,292635,374 - 5,137,666
Infrastructure102,420,1421,594,631(104,400)103,910,373
Total capital assets being depreciated128,612,7092,672,678(227,870)131,057,517
Less accumulated depreciation for:
Buildings and structures3,725,015368,077 - 4,093,092
Machinery and equipment3,883,136425,176(120,805)4,187,507
Other improvements 1,335,385191,247 - 1,526,632
Infrastructure49,960,2143,986,485(69,619)53,877,080
Total accumulated depreciation58,903,7504,970,985(190,424)63,684,311
Governmental activities capital assets - net89,110,545921,097(1,314,435)88,717,207
58
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
BeginningEnding
Primary Government
BalanceIncreaseDecreaseBalance
Business-type activities:
Capital assets - not depreciated:
Land$1,861,117$34,019$ - $1,895,136
Construction in progress4,002,8403,771,980(2,092,862)5,681,958
Total capital assets not being depreciated5,863,9573,805,999(2,092,862)7,577,094
Capital assets - being depreciated:
Buildings and structures12,445,429 - - 12,445,429
Machinery and equipment2,199,29848,032(5,150)2,242,180
Other improvements 85,456,8162,737,368 - 88,194,184
Total capital assets being depreciated100,101,5432,785,400(5,150)102,881,793
Less accumulated depreciation for:
Buildings and structures - 249,591 - 249,591
Machinery and equipment937,852130,003(3,863)1,063,992
Other improvements 38,610,3912,578,161 - 41,188,552
Total accumulated depreciation39,548,2432,957,755(3,863)42,502,135
Business-type activities capital assets - net66,417,2573,633,644(2,094,149)67,956,752
Total capital assets - net$155,527,802$4,554,741($3,408,584)$156,673,959
Depreciation expense was charged to functions/programs of the government as follows:
Governmental activities:
General government$320,529
Public safety173,291
Public works3,407,230
Parks and recreation1,069,935
Total depreciation expense - governmental activities$4,970,985
Business-type activities:
Water$1,351,325
Sewer938,476
Storm sewer667,954
Total depreciation expense - business-type activities$2,957,755
59
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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, 2008, the governmental activities long-term debt of the City consisted of the following:
FinalAuthorized
Issue Maturity Interest AndOutstanding
DateDateRateIssued12/31/08
General Long-Term Debt:
General Obligation Bonds:
G.O. Library Bonds, Series 2002A 3/01/022/01/22 1.55% - 4.85%$6,095,000$4,850,000
G.O. Park Refunding, Series 2005C11/16/052/01/10 3.50%2,590,0001,505,000
G.O. Capital Improvement Plan Bonds, Series 2008A11/18/082/01/304.00% - 4.60%7,550,0007,550,000
Total general obligation bonds16,235,00013,905,000
Revenue Bonds:
2000 Public Project Revenue Bonds12/01/002/01/124.75%-5.35%930,000435,000
Tax Increment Bonds:
G.O. Tax Increment Refunding Bonds, Series 2004C8/10/042/01/213.00% - 6.00%1,170,0001,015,000
General Improvement Bonds:
G.O. Improvement Bonds, Series 2004A8/10/042/01/152.50% - 4.00%2,070,000985,000
G.O. Improvement Bonds, Series 2006A6/13/062/01/143.75% - 3.80%6,640,0006,170,000
Total improvement bonds8,710,0007,155,000
Other debt:
Loan payable to State of MN (G.O. Improvement
Bonds, Series 2005A)4/19/057/01/173.81% - 4.30%3,654,6773,375,125
Compensated absences payableN/AN/AN/AN/A717,935
Total City indebtedness - governmental activities$30,699,677$26,603,060
60
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
BUSINESS-TYPE ACTIVITIES
As of December 31, 2008, the business-type activities long-term debt of the City consisted of the following:
FinalAuthorized
Issue Maturity Interest AndOutstanding
DateDateRateIssued12/31/08
G.O. Revenue Bonds:
Water and Sewer Revenue Bonds of 2001, Series A7-15-012/1/20123.50% - 4.65%$1,645,000$395,000
Water Revenue Bonds of 2004, Series B8-10-042/1/20254.00% - 4.50%7,930,0007,075,000
Water Revenue Bonds of 2005, Series B11-16-052/1/20213.75% - 3.90%5,465,0004,945,000
Total G.O. Revenue Bonds15,040,00012,415,000
Compensated absences payableN/AN/AN/AN/A102,813
Total City indebtedness - Business-type activities$15,040,000$12,517,813
GOVERNMENTAL ACTIVITIES
Annual debt service requirements to maturity for the governmental activities long-term debt are as follows:
G.O. Improvement BondsG.O. Tax Increment BondsPublic Project Revenue BondsAll Other G.O. BondsLoan Payable
Year EndingGovernmental ActivitiesGovernmental ActivitiesGovernmental ActivitiesGovernmental ActivitiesGovernmental Activities
December 31PrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterest
2009$1,220,000$243,738$55,000$52,979$100,000$20,152$860,000$479,937$318,002$137,406
20101,220,000200,27560,00050,485105,00014,8991,155,000539,151330,945124,462
20111,175,000156,31960,00047,725110,0009,308525,000507,918344,417110,991
20121,220,000111,30065,00044,720120,0003,210540,000486,441358,43796,971
20131,270,00064,11370,00041,345 - - 565,000463,787373,02982,379
20141,025,00020,50070,00037,775 - - 590,000439,683388,21567,192
201525,00050075,00034,005 - - 615,000414,127404,02051,387
2016 - - 80,00029,895 - - 640,000387,254420,47034,938
2017 - - 85,00025,440 - - 675,000358,910437,59017,818
2018 - - 90,00020,580 - - 705,000328,981 - -
2019 - - 95,00015,308 - - 740,000297,344 - -
2020 - - 100,0009,600 - - 780,000263,672 - -
2021 - - 110,0003,300 - - 815,000227,942 - -
2022 - - - - - - 855,000190,104 - -
2023 - - - - - - 405,000162,013 - -
2024 - - - - - - 425,000144,270 - -
2025 - - - - - - 445,000125,454 - -
2026 - - - - - - 465,000105,545 - -
2027 - - - - - - 490,00084,412 - -
2028 - - - - - - 510,00062,035 - -
2029 - - - - - - 540,00038,275 - -
2030 - - - - - - 565,00012,995 - -
Total$7,155,000$796,745$1,015,000$413,157$435,000$47,569$13,905,000$6,120,250$3,375,125$723,544
It is not practicable to determine the specific year for payment of long-term accrued compensated absences.
The revenue bond issue was sold by the City’s Economic Development Authority (EDA) to fund the
construction of a municipal facility. 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 of Chanhassen and the bond is reported in the
Governmental Activities column on the Statement of Net Assets.
61
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
The City has issued General Improvement Bonds to provide funds for various construction projects. The bonds
have interest rates ranging from 2.50% to 4.90% and are payable over the next seven years. 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, 2008 is $7,155,000.
BUSINESS-TYPE ACTIVITIES
Annual debt service requirements to maturity for the business-type long-term debt are as follows:
G.O. Revenue Bonds
Year EndingBusiness-Type Activities
December 31PrincipalInterest
2009$720,000$489,152
2010740,000460,357
2011700,000431,954
2012730,000403,783
2013690,000376,012
2014715,000348,799
2015750,000320,424
2016775,000290,887
2017805,000260,080
2018845,000227,391
2019880,000192,676
2020915,000156,323
2021960,000117,918
2022505,00086,935
2023535,00063,787
2024560,00039,150
2025590,00013,275
Total$12,415,000$4,278,903
It is not practicable to determine the specific year for payment of long-term accrued compensated absences.
62
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2008, was as follows:
BeginningEnding Due Within
BalanceAdditionsDeletionsBalanceOne Year
Governmental activities:
Bonds payable:
General obligation$7,315,000$7,550,000$960,000$13,905,000$860,000
G.O. improvement bonds8,455,000 - 1,300,0007,155,0001,220,000
G.O. tax increment bonds1,070,000 - 55,0001,015,00055,000
Public project revenue bonds530,000 - 95,000435,000100,000
Total bonds payable17,370,0007,550,0002,410,00022,510,0002,235,000
Loan payable3,828,16624,839477,8803,375,125318,002
Compensated absences648,824472,271403,160717,93544,570
Total governmental activity
long-term liabilities$21,846,990$8,047,110$3,291,040$26,603,060$2,597,572
Business-type activities:
G.O. Revenue bonds $13,915,000$ - $1,500,000$12,415,000$720,000
Compensated absences104,09776,17177,455102,8136,382
Total business-type activity
long-term liabilities$14,019,097$76,171$1,577,455$12,517,813$726,382
For the governmental activities, loans payable and compensated absences are generally liquidated by the
general and special revenue funds.
All long-term bonded indebtedness outstanding at December 31, 2008 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, 2008 totaled $7,096.
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.
63
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
REVENUE PLEDGED
Future revenue pledged for the payment of long-term debt is as follows:
Revenue PledgedCurrent Year
Percent ofDebt serviceRemainingPrincipalPledged
Use ofTotalas a % ofTerm ofPrincipaland InterestRevenue
Bond IssueProceedsTypeDebt Servicenet revenuesPledgeand InterestPaidReceived
2004A Improvement bondsInfrastructure improvementsSpecial assessments31%n/a2004 - 2015$1,046,032$407,675$47,533
2006A Improvement bondsInfrastructure improvementsSpecial assessments100%n/a2006 - 2014$6,905,713$712,313$30,044
2004C TIF Refunding bondsDowntown Redevelopment ProjectTax increment100%n/a2004 - 2021$1,428,157$110,546$110,546
State Highway loanHighway 312 improvementsSpecial assessments37.8%n/a2008 - 2017$4,098,669$495,877$55,427
State-aid8.6%n/a2008 - 2017
Storm water charges0.2%n/a2008 - 2017
2001A Sewer Revenue bondsUtility infrastructure improvementsSewer usage charges100%6.9%2001 - 2012$424,919$149,960$2,187,209
2004B Water Revenue bondsUtility infrastructure improvementsWater usage charges100%24.3%2004 - 2025$9,997,925$584,354$2,408,379
2005B Water Revenue bondsUtility infrastructure improvementsWater usage charges100%20.0%2005 - 2021$6,271,059$482,695$2,408,379
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, 2008.
Future scheduled tax levies for all bonds outstanding at December 31, 2008 totaled $22,527,618.
64
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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 Public
Employees Retirement Fund (PERF) 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.
PERF 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 PERF and PEPFF. That report may be obtained on the internet at
www.mnpera.org, by writing to PERA, 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088 or by
calling (651)296-7460 or 1-800-652-9026.
65
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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. PERF Basic Plan members and
Coordinated Plan members were required to contribute 9.1% and 6.0%, respectively, of their annual
covered salary in 2008. PEPFF members were required to contribute 8.6% of their annual covered
salary in 2008. That rate will increase to 9.4% in 2009. The City is required to contribute the
following percentages of annual covered payroll:11.78% for Basic Plan PERF members, 6.5% for
Coordinated Plan PERF members, and 12.9% for PEPFF members. Employer contribution rates for
the Coordinated Plan and PEPFF will increase to 6.75% and 14.1% respectively, effective January 1,
2009. The City’s contributions to the Public Employees Retirement Fund for the years ending
December 31, 2008, 2007 and 2006 were $278,047, $260,100 and $234,127, respectively. The City’s
contributions to the Public Employees Police and Fire Fund for the years ending December 31, 2008,
2007 and 2006 were $15,567, $13,784 and $11,943, respectively. The City’s contributions were equal
to the contractually required contributions for each year as set by state statute.
C. CHANHASSEN FIRE RELIEF ASSOCIATION
PLAN DESCRIPTION
The volunteer firefighters of the City of Chanhassen 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.
66
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
FUNDING POLICY
Minnesota StatutesChapter 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 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 $115,928 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$115,928
Contributions made:
City$0
State aid$115,928
Actuarial valuation date12/31/08
Actuarial cost methodEntry age normal
Amortization methodLevel dollar/Closed
Remaining amortization period:
Normal cost20 years
Prior service cost10 years
Asset valuation methodMarket
Actuarial assumptions:
Investment rate of return5%
Projected salary increasesN/A
Includes inflation atN/A
Cost of living adjustmentsNone
THREE YEAR TREND INFORMATION
Three-Year Trend Information
AnnualPercentageNet
YearPensionof APCPension
EndingCost (APC)ContributedObligation
12/31/2006$155,540100%$ -
12/31/2007135,949109% -
12/31/2008115,928110% -
67
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
REQUIRED SUPPLEMENTARY INFORMATION
Assets in
Excess of/Pension
ActuarialActuarialActuarial(Unfunded)Benefit
ValuationValue ofAccruedAccruedFundedPer Year
DateAssetsLiabilityLiabilityRatioof Service
12/31/2006$2,282,438$2,494,740($212,302)91.5%$4,350
12/31/20072,500,0032,619,000(118,997)95.5%4,350
12/31/20081,885,6912,874,758(989,067)65.6%5,050
The Association is comprised of volunteers; therefore, there are no payroll expenditures (i.e., there are
no covered payroll amounts or percentage calculations).
Note 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 of Chanhassen, Minnesota 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.
68
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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 March 2008, participants consisted of:
Retirees and beneficiaries currently
purchasing health insurance through the City2
Active employees68
Total70
Participating employers1
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.
69
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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, 2008, was calculated as follows:
Annual required contribution (ARC)$5,832
Interest on net OPEB obligation -
Annual OPEB cost5,832
Contributions made during the year(2,029)
Increase (decrease) in net OPEB obligation3,803
Net OPEB obligation - beginning of year -
Net OPEB obligation - end of year$3,803
The City first had an actuarial valuation performed for the plan as of January 1, 2008 to determine the
funded status of the plan as of that date as well as the employer’s annual required contribution (ARC)
for the fiscal year ended December 31, 2008. The City’s annual OPEB cost (expense) of $5,832 was
equal to the ARC for the fiscal year, as the transition liability was set at zero as of December 31, 2007.
The city’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net
OPEB obligation for 2008 was as follows:
Percentage of
Fiscal YearAnnual OPEBEmployer Annual OPEB CostNet OPEB
EndedCostContributionsContributedObligation
December 31, 2008$5,832$2,02934.7%$3,803
70
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
F. FUNDED STATUS AND FUNDING PROGRESS
The City currently has no assets that have been irrevocably deposited in a trust for future health
benefits, therefore, the actuarial value of assets is zero. The funded status of the plan was as follows:
Unfunded
ActuarialActuarialUAAL as a
ActuarialActuarialAccruedAccruedFundedCoveredPercentage of
ValuationValue of AssetsLiability (AAL)*Liability (UAAL)RatioPayrollCovered Payroll
Date(a)(b)(b-a)(a/b)(c) ( (b-a) / c)
January 1, 2008$ - $52,268$52,2680.0%$4,180,2351.3%
*Using the entry age normal actuarial pay cost method.
Note, the first OPEB actuarial valuation was conducted as of January 1, 2008. There is no data available prior to the first
valuation.
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, 2008 actuarial valuation, the Entry-age Normal Actuarial cost method was used. The
actuarial assumptions included a 4.0% investment rate of return (net of administrative expenses) and
an initial annual health care cost trend rate of 9% reduced by 1% each year to arrive at an ultimate
health care cost trend rate of 5.0%. 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, 2008, was 29
years.
71
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 9 DUE TO/FROM OTHER FUNDS AND TRANSFERS
Amounts reported as due to/from other funds at December 31, 2008 are as follows:
FundReceivablePayable
Revolving Assessment Fund$13,409$ -
Other governmental funds - 13,409
Total$13,409$13,409
Due to/from other funds are representative of lending/borrowing arrangements to cover deficit cash balances at
the end of the fiscal year. The funds will be repaid as tax increments are received.
Interfund transfers:
TransfersTransfers
InOut
General Fund$ - ($946,836)
Revolving Assessment Fund3,863,624(269,986)
Public Works Facility2,550 -
Nonmajor Government funds1,363,427(1,366,768)
Water Fund - (932,955)
Sewer Fund7,379(426,472)
Surface Water Management Fund70,049(1,364,012)
Total$5,307,029($5,307,029)
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 2008
transfers are considered routine and consistent with previous practices.
72
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Additionally, capital assets contributed to the Enterprise Funds have also been reclassified as transfers on the
government-wide statement of activities as follows:
Transfers Out
Governmental
Activities
Transfers in (business-type activities):
Water Fund$676,609
Sewer Fund169,114
Surface Water Management Fund687,665
Total$1,533,388
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.
As of December 31, 2008, the outstanding conduit debt is as follows:
BondsOriginal12/31/08Maturity
Project NameIssuedPrincipalPrincipalDate
Building Management Group12/95$1,275,000$745,0002016
Ridgeview Medical Center, Series 2002A10/025,024,0004,698,4132023
Ridgeview Medical Center, Series 2002C10/021,135,600189,1512009
Chapel Hill Academy, Series 2005A12/051,337,7001,115,4622009
St. Hubert Catholic Community, Series 200710/075,942,1405,560,3032027
As of December 31, 2008, there were an additional four conduit debt issues outstanding. The aggregate
principal amount for the additional four series issued prior to July 1, 1995 could not be determined; however,
their original issue amounts totaled $10,180,000.
73
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 11 DEFICIT FUND BALANCES
The City has a deficit fund balance in the following fund at December 31, 2008:
Capital Project Fund:
TID #5 North Bay$13,409
This deficit will be eliminated through tax increment collections.
Note 12 COMMITMENTS AND CONTINGENCIES
A. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters. The City continues to carry commercial
insurance for risks of loss, including workers compensation, property and general liability and employee
health and accident insurance. There were no significant reductions in insurance from the previous year or
settlements in excess of insurance coverage for any of the past three fiscal years.
B. LITIGATION
The City attorney has indicated that 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 attorney, remotely recoverable by plaintiffs.
C. FEDERAL AND STATE FUNDS
The City receives financial assistance from federal and state governmental agencies in the form of
grants. The disbursement of funds received under these programs generally requires compliance with
the terms and conditions specified in the grant agreements and is subject to audit by the grantor
agencies. Any disallowed claims resulting from such audits could become a liability of the applicable
fund. However, in the opinion of management, any such disallowed claims will not have a material
effect on any of the financial statements of the individual fund types included herein or on the overall
financial position of the City at December 31, 2008.
D. TAX INCREMENT DISTRICTS
The City’s tax increment districts are subject to review by the State of Minnesota Office of the State
Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the
applicable fund. Management has indicated that they are not aware of any instances of noncompliance
which would have a material effect on the financial statements.
74
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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:
– issued in 2006 in the principal
Taxable Tax Increment Revenue Note, Series 2006A (Gateway Place)
sum of $300,000 with an interest rate of 9% 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, 2008 the
principal amount outstanding on the note was $300,000.
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 9% per annum. Semi-annual principal payments
shall be paid commencing August 1, 2006 and continuing through February 1, 2014. 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. The City shall have no obligation to
pay unpaid balance that may remain after the final payment on February 1, 2014. At December 31,
2008 the principal amount outstanding on the note was $658,322.
Limited Revenue Tax Increment Note (North Bay) – issued in 1999 in the principal sum of $400,000,
plus interest on the unpaid principal at the rate of 9% per annum. Payments are payable solely from
available tax increment, which term means any tax increment generated by the minimum
improvements in the years 1999 through 2013, and received during the six month period preceding a
payment date, after first deducting therefrom. $37,200 is to be retained by the City on each payment
date from August 1, 1999 through February 1, 2008 for special assessments. If there is insufficient tax
increment to meet the obligation regarding the special assessments, such deficiency shall be deferred
and shall be paid, with interest at the rate of 9% per annum, until such deficiency is eliminated. 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.
E. COMMITTED CONTRACTS
At December 31, 2008, the City had commitments of $384,674 for uncompleted construction
contracts.
75
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 13 DESIGNATIONS AND RESERVATIONS OF FUND EQUITY
At December 31, 2008 the City had designated and reserved portions of its various fund equities through legal
restriction and City Council authorization. Major fund equity appropriations at December 31, 2008 are shown
on the various balance sheets as segregations of the fund equity. A summary of such designations is as follows:
General Fund:
Designated for cash flow$3,586,750
Reserved for prepaid items21,173
Total General Fund3,607,923
2006A G.O. Improvement Bonds:
Reserved for debt service3,036,154
Public Works Facility:
Designated for capital improvements6,755,830
Revolving Assessment Fund:
Designated for capital improvements4,885,992
Other governmental funds:
Reserved for prepaid items25
Reserved for future programs29,499
Reserved for debt service3,605,593
Designated for cable equipment525,692
Designated for capital improvements7,090,803
Total other governmental funds11,251,612
Total reservations and designations of fund balance$29,537,511
76
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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, 2008 totaled $135,906. Terms of each lease are as follows:
LesseeTermsCurrent Term
Sprint$21,006 per year with 3% annual increases8/1/06 - 7/31/11
Sprint$19,669 per year with 3% annual increases12/1/05 - 11/30/10
Verizon$1,587 per month through April 2012; $1,825 per month thereafter5/1/07 - 4/30/17
Nextel West Corp.$1,587 per month12/1/07 - 11/30/12
T-Mobile$1,750 per month with 3% annual increases11/1/05 - 10/31/10
T-Mobile$1,803 per month with 3% annual increases11/1/06 - 10/31/11
StoneBridge Wireless5% of gross revenues associated with equipment used on property4/1/06 - 12/31/09
Cingular/AT&T$1,700 per month with 3% annual increases8/1/07 - 7/31/12
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:
Statement No. 51
Accounting and Financial Reporting for Intangible Assets. The provisions of this
Statement are effective for financial statements for periods beginning after June 15, 2009.
Statement No. 53
Accounting and Financial Reporting for Derivative Investments. The provisions of this
Statement are effective for financial statements for periods beginning after June 15, 2009.
Statement No. 54
Fund Balance Reporting and Governmental Fund Type Definitions.The provisions of
this Statement are effective for financial statements for periods beginning after June 15, 2010.
The effect these standards may have on future financial statements is not determinable at this time.
Note 16 SUBSEQUENT EVENT
On May 11, 2009, the City Council adopted Resolution 2009-40 providing for the issuance of $6,020,000 G.O.
Improvement Refunding Bonds, Series 2009A.
77
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 17 PRIOR PERIOD ADJUSTMENT
During 2008, adjustments to prior year financial statements were made for capital assets. A summary of these
changes are as follows:
SurfaceBusiness-
WaterType
ManagementActivities
Net assets - December 31, 2007, as previously reported$17,372,851$69,794,363
Prior period adjustment:
Capital assets(53,164)(53,164)
Net assets - January 1, 2008, as restated$17,319,687$69,741,199
78
REQUIRED SUPPLEMENTARY INFORMATION
79
CITY OF CHANHASSEN, MINNESOTA
Statement 10
REQUIRED SUPPLEMENTARY INFORMATION
Page 1 of 6
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2008
WithComparativeActualAmountsForTheYearEndedDecember312007,
WithComparativeActualAmountsForTheYearEndedDecember312007
20082007
Budgeted AmountsActualVariance withActual
OriginalFinalAmountsFinal BudgetAmounts
Revenues:
General property taxes:
CCurrent$6513900$6,513,900$6,513,900$6,489,049($24,851)$6,284,318$6513900$6489049($24851)$6284318
Delinquent50,00050,00092,21942,219101,113
Total general property taxes6,563,9006,563,9006,581,26817,3686,385,431
Licenses and permits:
Licenses - general government3,5003,5003,000(500)5,100
Licenses - public safety104,500104,500110,2665,766126,899
Permits - public safety1,285,3001,285,3001,224,546(60,754)1,506,836
Permits - -publicworks37000,37000,32416,(4584),27471,
Permitspublicworks370003700032416(4584)27471
Permits - community development7,5007,5007,7752758,900
Total licenses and permits1,437,8001,437,8001,378,003(59,797)1,675,206
Intergovernmental:
State:
Market value homestead credit - - 79,89279,892162,052
PERA - public safety20,00020,00019,467(533)19,467
State aid - fire - public safety120,000120,000115,928(4,072)135,949
py()
Other - general government - - 975975245
State aid - police - public safety85,00085,00086,6851,68585,970
Total intergovernmental225,000225,000302,94777,947403,683
Charges for services:
General government99,50099,50079,136(20,364)79,816
Public safety5,0005,0004,610(390)3,137
Public works88,00088,00048,822(39,178)29,712
Parkandrecreationar an recreaon379100,379100,419515,40415,369636,
Pkdti37910037910041951540415369636
Community development49,50049,50040,514(8,986)29,056
Total charges for services621,100621,100592,597(28,503)511,357
Fines and forfeits:
Public safety157,500157,500124,633(32,867)145,682
Miscellaneous:
Investment income125,000125,000216,28391,283250,462
Contributions and donations
Contributionsanddonations
General government500500600100600
Public safety2,5002,5003,1006003,100
Park and recreation17,00017,00026,9509,95019,061
Other:
General government135,750135,750163,23627,486163,373
Public safety13,80013,80025,98512,185165,011
Public works12,65012,6503,097(9,553)5,081
PkdtiPark and recreation57005,7005,70013,6617,96111,489570013661796111489
Community development1001001,1931,093142
Total miscellaneous313,000313,000454,105141,105618,319
Total revenues9,318,3009,318,3009,433,553115,2539,739,678
80
CITY OF CHANHASSEN, MINNESOTA
Statement 10
REQUIRED SUPPLEMENTARY INFORMATION
Page 2 of 6
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2008
WithComparativeActualAmountsForTheYearEndedDecember312007,
WithComparativeActualAmountsForTheYearEndedDecember312007
20082007
Budgeted AmountsActualVariance withActual
OriginalFinalAmountsFinal BudgetAmounts
Expenditures:
Generalgovernment:
Generalgovernment:
Legislative:
Current:
Personal services$34,200$34,200$30,799$3,401$32,806
Contractual services100,700100,70071,00229,698107,893
Total legislative 134,900134,900101,80133,099140,699
Administrative office:
Current:
Personal services374,500374,500370,0494,451364,520
Materials and supplies500500124376316
Contractual services59,90059,90072,131(12,231)73,662
Total administrative office434,900434,900442,304(7,404)438,498
Finance:
Current:
Personal services210,600210,600213,067(2,467)229,128
Materialsandsuppliesaeras an suppes500500 -50051
Mtildli50050050051
Contractual services91,50091,50049,13142,36945,837
Total finance302,600302,600262,19840,402275,016
Election:
Current:
Personal services21,50021,50027,853(6,353)13
Materials and supplies200200545(345) -
Contractual services6,2006,2006,388(188) -
Contractualservices6,2006,2006,388(188)
Total election27,90027,90034,786(6,886)13
Legal:
Current:
Contractual services168,000168,000131,78936,211142,106
Property assessment:
Current:
Contractual services101,600101,600105,351(3,751)101,496
MISM.I.S.:
Current:
Personal services163,600163,600166,921(3,321)159,692
Materials and supplies2,4002,4002,594(194)5,874
Contractual services119,300119,30087,76931,531118,830
Total M.I.S.285,300285,300257,28428,016284,396
City hall:
Current:
Current:
Personal services68,40068,40070,416(2,016)69,003
Materials and supplies42,30042,30045,220(2,920)46,822
Contractual services282,100282,100299,164(17,064)284,694
Total City hall392,800392,800414,800(22,000)400,519
81
CITY OF CHANHASSEN, MINNESOTA
Statement 10
REQUIRED SUPPLEMENTARY INFORMATION
Page 3 of 6
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2008
WithComparativeActualAmountsForTheYearEndedDecember312007,
WithComparativeActualAmountsForTheYearEndedDecember312007
20082007
Budgeted AmountsActualVariance withActual
OriginalFinalAmountsFinal BudgetAmounts
Expenditures: (continued)
Generalgovernment:(continued)
Generalgovernment:(continued)
Library:
Current:
Materials and supplies$3,000$3,000$2,187$813$2,463
Contractual services107,200107,200128,842(21,642)124,873
Total library110,200110,200131,029(20,829)127,336
Total general government1,958,2001,958,2001,881,34276,8581,910,079
gg
Public safety:
Police:
Current:
Personal services75,10075,10075,461(361)73,543
Materials and supplies5,0005,0004,2627385,098
Contractual services1,422,0001,422,0001,421,7962041,275,967
Totalpoliceoa poce1502100,,1502100,,1501519,,5811354608,,
Ttlli1502100150210015015195811354608
Fire department:
Current:
Personal services510,600510,600461,03649,564496,664
Materials and supplies47,00047,00046,31768348,753
Contractual services116,000116,000102,03013,97090,094
Total fire department673,600673,600609,38364,217635,511
Code enforcement:
Codeenforcement:
Current:
Personal services658,800658,800635,80023,000628,834
Materials and supplies8,7008,7006,2192,4814,741
Contractual services23,40023,40012,62410,77613,027
Total code enforcement690,900690,900654,64336,257646,602
Animal control:
Current:
PliPersonal services5530055,30055,30051,5963,70453,5235530051596370453523
Materials and supplies4,0004,0004,557(557)4,833
Contractual services13,70013,70013,58111915,776
Total animal control73,00073,00069,7343,26674,132
Total public safety2,939,6002,939,6002,835,279104,3212,710,853
Publicworks:
Publicworks:
Engineering:
Current:
Personal services506,500506,500499,8416,659517,002
Materials and supplies9009002,034(1,134)1,060
Contractual services30,20030,20030,333(133)30,010
Total engineering537,600537,600532,2085,392548,072
82
CITY OF CHANHASSEN, MINNESOTA
Statement 10
REQUIRED SUPPLEMENTARY INFORMATION
Page 4 of 6
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2008
WithComparativeActualAmountsForTheYearEndedDecember312007,
WithComparativeActualAmountsForTheYearEndedDecember312007
20082007
Budgeted AmountsActualVariance withActual
Expenditures: (continued)OriginalFinalAmountsFinal BudgetAmounts
Public works: (continued)
Streetmaintenance:
Streetmaintenance:
Current:
Personal services$599,700$599,700$622,738($23,038)$595,930
Materials and supplies133,500133,500160,256(26,756)110,938
Contractual services34,30034,30020,91713,38330,184
Total street maintenance 767,500767,500803,911(36,411)737,052
Street lighting:
Current:
Materials and supplies4,5004,5002,8911,6093,009
Contractual services315,400315,400316,039(639)287,685
Total street lighting319,900319,900318,930970290,694
City garage:
Current:
Personal services241,700241,700247,571(5,871)235,717
Materials and supplies156,400156,400162,450(6,050)140,199
Contractualservicesonracua servces46500,46500,43652,2848,46435,
Cttli465004650043652284846435
Total City garage444,600444,600453,673(9,073)422,351
Total public works2,069,6002,069,6002,108,722(39,122)1,998,169
Parks and recreation:
Parks and recreation commission:
Current:
Current:
Materials and supplies200200 - 200 -
Contractual services2,0002,0001,0949061,767
Total parks and recreation commission2,2002,2001,0941,1061,767
Parks and recreation administration:
Current:
Personal services118,500118,500121,392(2,892)117,143
Materials and supplies1,0001,00075925452
CttliContractual services96009,6009,6007,1172,4837,9469600711724837946
Total parks and recreation administration129,100129,100128,584516125,541
Recreation center:
Current:
Personal services212,700212,700232,440(19,740)205,990
Materials and supplies11,50011,50046,807(35,307)7,256
Contractual services77,00077,00096,905(19,905)35,658
Totalrecreationcenter301,200,301,200,376,152,(74,952),248,904,
Totalrecreationcenter301200301200376152(74952)248904
Senior citizen center:
Current:
Personal services36,90036,90041,089(4,189)31,542
Materials and supplies4,3004,3002,6091,6914,962
Contractual services19,50019,50023,467(3,967)17,446
Total senior citizen center60,70060,70067,165(6,465)53,950
83
CITY OF CHANHASSEN, MINNESOTA
Statement 10
REQUIRED SUPPLEMENTARY INFORMATION
Page 5 of 6
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2008
WithComparativeActualAmountsForTheYearEndedDecember312007,
WithComparativeActualAmountsForTheYearEndedDecember312007
20082007
Budgeted AmountsActualVariance withActual
OriginalFinalAmountsFinal BudgetAmounts
Expenditures:(continued)
Expenditures:(continued)
Parks and recreation: (continued)
Recreation program:
Current:
Personal services$165,800$165,800$175,780($9,980)$159,507
Materials and supplies17,10017,10021,488(4,388)16,992
Contractual services93,50093,50089,6413,85983,466
Total recreation program276,400276,400286,909(10,509)259,965
pg()
Self-supporting programs:
Current:
Personal services26,90026,90030,762(3,862)29,790
Materials and supplies5,2005,2008,727(3,527)6,537
Contractual services68,00068,00044,90223,09891,833
Total self-supporting programs100,100100,10084,39115,709128,160
Lake Ann Park Operations:
Current:urren:
Ct
Personal services13,80013,8006,5967,2047,733
Materials and supplies9,1009,1007,9271,17312,881
Contractual services51,40051,40042,4468,95441,784
Total Lake Ann Park operations74,30074,30056,96917,33162,398
Park maintenance:
Current:
Personal services661,300661,300679,204(17,904)676,612
Personalservices661,300661,300679,204(17,904)676,612
Materials and supplies81,30081,30074,4166,88488,776
Contractual services92,20092,20089,3492,85188,447
Total park maintenance834,800834,800842,969(8,169)853,835
Downtown maintenance:
Current:
Materials and supplies - - 8(8)423
Contractual services - - 6,205(6,205)7,148
TtldtitTotal downtown maintenance00006,213(6,213)7,5716213(6213)7571
Total parks and recreation1,778,8001,778,8001,850,446(71,646)1,742,091
Community development:
Planning commission:
Current
Materialsandsupplies200200-200-
Materialsandsupplies200200-200-
Contractual services4,0004,0003,0049965,024
Total planning commission4,2004,2003,0041,1965,024
84
CITY OF CHANHASSEN, MINNESOTA
Statement 10
REQUIRED SUPPLEMENTARY INFORMATION
Page 6 of 6
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2008
WithComparativeActualAmountsForTheYearEndedDecember312007,
WithComparativeActualAmountsForTheYearEndedDecember312007
20082007
Budgeted AmountsActualVariance withActual
OriginalFinalAmountsFinal BudgetAmounts
Expenditures:(continued)
Expenditures:(continued)
Community development: (continued)
Planning administration:
Current
Personal services$367,800$367,800$373,488($5,688)$357,475
Materials and supplies700700241459381
Contractual services14,10014,10014,0762442,023
Total planning administration382,600382,600387,805(5,205)399,879
pg()
Senior facility commission:
Current
Personal services20,10020,10020,937(837)19,784
Materials and supplies - - 2,100(2,100) -
Contractual services15,20015,2006,6498,5519,063
Total senior facility commission35,30035,30029,6865,61428,847
Totalcommunitydevelopmentoa communyeveopmen422100,422100,420495,1605,433750,
Ttlitdlt4221004221004204951605433750
Total expenditures9,168,3009,168,3009,096,28472,0168,794,942
Revenues over expenditures150,000150,000337,269187,269944,736
Other financing sources (uses):
Transfers out(150,000)(150,000)(946,836)(796,836)(273,720)
Transfersout(150,000)(150,000)(946,836)(796,836)(273,720)
Net change in fund balance$0$0(609,567)($609,567)671,016
Fund balance - January 15,491,2864,820,270
Fund balance - December 31$4,881,719$5,491,286
85
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
NOTE TO RSI
December 31, 2008
Note A BUDGETARY INFORMATION
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.
86
COMBINING AND INDIVIDUAL FUND STATEMENTS AND
SCHEDULES
87
NONMAJOR GOVERNMENTAL FUNDS
88
SPECIAL REVENUE FUNDS
A Special Revenue Fund is 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).
89
CITY OF CHANHASSEN, MINNESOTA
Statement 11
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2008
With Comparative Totals For December 31, 2007
Totals
Nonmajor
SpecialDebtCapital
Governmental Funds
RevenueServiceProject20082007
Assets:
Cash and investments$366,360$3,802,163$7,034,937$11,203,460$11,874,673
Accrued interest receivable4,22025,65569,36199,236121,699
Due from other governmental units - - - - 309,143
Accounts receivable - net188,527 - 113,570302,097305,804
Property taxes receivable - 15,49611,48526,98126,915
Special assessments receivable - 1,237,67739,3281,277,0051,403,164
Prepaid items25 - - 25 -
Total assets$559,132$5,080,991$7,268,681$12,908,804$14,041,398
Liabilities and Fund Balance
Liabilities:
Accounts payable$ - $ - $60,447$60,447$324,234
Duetootherfunds - - --13409,13409,234177,
Duetootherfunds1340913409234177
Contracts payable - - 11,92411,924117,545
Due to other governmental units - - - - 401,235
Salaries payable3,916 - - 3,9163,061
Deferred revenue - 1,237,677103,6821,341,3591,692,819
Total liabilities3,9161,237,677189,4621,431,0552,773,071
Fund balance:
Reserved 29,5243,605,593 - 3,635,1173,780,321
Unreserved:
Designated525,692 - 7,090,8037,616,4957,512,142
Undesignated - 237,721(11,584)226,137(24,136)
Total fund balance555,2163,843,3147,079,21911,477,74911,268,327
Total liabilities and fund balance$559,132$5,080,991$7,268,681$12,908,804$14,041,398
90
CITY OF CHANHASSEN, MINNESOTA
Statement 12
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2008
With Comparative Totals For The Year Ended December 31, 2007
Totals
Nonmajor
Special DebtCapitalGovernmental Funds
RevenueServiceProject20082007
Revenues:
General property taxes$ - $1,809,190$1,091,875$2,901,065$3,017,678
Tax increment collections - - 476,651476,651420,526
Licenses and permits - - 432,542432,542496,352
Intergovernmental - - 1,545,0231,545,023494,351
Special assessments - 112,87923,467136,346519,263
Charges for services185,5666,20256,844248,612227,312
Investment income22,794133,180366,480522,454669,390
Contributions and donations10,260 - 2,50012,76024,667
Other - - 22,10522,10543,730
Total revenues218,620 2,061,451 4,017,487 6,297,558 5,913,269
Expenditures:
Current:
General government87,827 - 133,343221,170206,849
Public safety17,500 - 32,51750,017213,898
Public works - - 643,502643,502462,971
,,,
Parks and recreation - - 82,90782,907106,789
Community development - - 48,32448,324407,556
Capital outlay:
General government141,248 - 92,352233,6006,734
Public safety - - 54,28454,284505,215
Public works - - 1,451,5671,451,567982,494
Parks and recreation - - 642,508642,5081,070,648
Debt service:
Principal - 2,219,552 - 2,219,5521,750,000
Interest and paying agent fees - 632,535 - 632,535484,664
Developer assistance - - 226,055226,055206,753
Total expenditures246,575 2,852,087 3,407,359 6,506,021 6,404,571
Revenues over (under) expenditures(27,955)(790,636)610,128 (208,463)(491,302)
Other financing sources (uses):
Bonds issued - 385,692 - 385,692 -
Loans issued - - 24,83924,839 -
Transfers in - 380,532982,8951,363,4271,263,479
Transfers out - (93,160)(1,273,608)(1,366,768)(2,363,588)
Sale of capital assets - - 10,69510,69516,740
Total other financing sources (uses)0 673,064 (255,179)417,885 (1,083,369)
Net change in fund balance(27,955)(117,572)354,949 209,422 (1,574,671)
Fund balance - January 1583,1713,960,8866,724,27011,268,32712,842,998
Fund balance - December 31$555,216$3,843,314$7,079,219$11,477,749$11,268,327
91
- This page intentionally left blank -
92
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 public safety equipment and
training or programs which benefit youth.
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.
93
CITY OF CHANHASSEN, MINNESOTA
Statement 13
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2008
With Comparative Totals For December 31, 2007
201
Contribution210 CATV Total Nonmajor Special Revenue
FundFundFunds
20082007
Assets:
Cash and investments$26,158$340,202$366,360$398,972
Accrued interest receivable3803,8404,2204,298
Accounts receivable - net2,961185,566188,527184,709
Prepaid items -2525 -
Total assets$29,499 $529,633 $559,132 $587,979
Liabilities and Fund Balance
Liabilities:
Accounts payable$ - $ - $ - $805
Due to other governmental units - - - 942
Salaries payable -3,9163,9163,061
Total liabilities03,9163,9164,808
Fund balance:
Reserved for prepayments -2525 -
Reserved for youth and public safety programs29,499 - 29,49934,733
Unreserved:
Designated for cable equipment - 525,692525,692548,438
Total fund balance29,499525,717555,216583,171
Total liabilities and fund balance$29,499 $529,633 $559,132 $587,979
94
CITY OF CHANHASSEN, MINNESOTA
Statement 14
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2008
With Comparative Totals For The Year Ended December 31, 2007
201
Contribution210 CATV Total Nonmajor Special Revenue
FundFund
Funds
Revenues:20082007
Franchise fees$ - $185,566$185,566$183,542
Investment income2,00620,78822,79424,262
Contributions and donations10,260 - 10,26012,167
Total revenues12,266206,354218,620219,971
Expenditures:
Current:
Personal services -83,78383,78380,968
Materials and supplies -7407404,959
Contractual services17,5003,30420,80419,780
Capital outlay - 141,248141,248 -
Total expenditures17,500229,075246,575105,707
Revenues over (under) expenditures(5,234)(22,721)(27,955)114,264
Other financing sources (uses):
Transfers out - - - (26,026)
Net change in fund balance(5,234)(22,721)(27,955)88,238
Fund balance - January 134,733548,438583,171494,933
Fund balance - December 31$29,499$525,717$555,216$583,171
95
- This page intentionally left blank -
96
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.
97
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2008
WithComparativeTotalsForDecember312007,
WithComparativeTotalsForDecember312007
351 1999A 354 2001B
G.O.352 2000 G.O.
300PermanentImprovementPublicProjectImprovement
300PermanentImprovementPublicProjectImprovement
Revolving DebtBondsRevenue BondsBonds
Assets:
Cash and investments$235,475$160,043$119,736$15,533
Accrued interest receivable2,2461,901561476
Property taxes receivable - - 1,085 -
Special assessments receivable102,093 - - 6,239
p
Total assets$339,814$161,944$121,382$22,248
Liabilities and Fund Balance
Liabilities:
Deferred revenue$102,093$ - $ - $6,239
Fund balance (deficit):
Reserved for debt retirement - 161,944121,38216,009
Unreserved:
Undesignated237,721 - - -
Total fund balance (deficit)237,721161,944121,38216,009
Total liabilities and fund balance$339,,814$161,,944$121,,382$22,,248
Totalliabilitiesandfundbalance$339814$161944$121382$22248
98
Statement 15
358 2003A 364 2005A 365 2005C 367 2008A
357 2002A G.O.G.O.G.O. Park G.O. Public
G.O.Library..Equipment3602004AImprovementRefundingWorksTotalsNonmajorDebtService
GOLibraryEquipment3602004AImprovementRefundingWorksTotalsNonmajorDebtService
BondsCertificateG.O. BondsBondsBondsFacility BondsFunds
20082007
$761,020$25,399$598,701$666,714$830,528$389,014$3,802,163$3,893,506
5,052 - 3,7177,3553,73461325,65531,595
4,0651,2243,0712,5233,528 - 15,49617,338
- - 165,316964,029 - - 1,237,6771,343,954
$770,137$26,623$770,805$1,640,621$837,790$389,627$5,080,991$5,286,393
$ - $ - $165,316$964,029$ - $ - $1,237,677$1,325,507
770,13726,623605,489676,592837,790389,6273,605,5933,745,588
- - - - - - 237,721215,298
770,13726,623605,489676,592837,790389,6273,843,3143,960,886
$770,,137$26,,623$770,,805$1,,640,,621$837,,790$389,,627$5,,080,,991$5,,286,,393
$770137$26623$770805$1640621$837790$389627$5080991$5286393
99
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR DEBT SERVICE FUNDS
ForTheYearEndedDecember312008,
ForTheYearEndedDecember312008
With Comparative Totals For The Year Ended December 31, 2007
351 1999A 352 2000 354 2001B
300 Permanent G.O.Public Project G.O.
RevolvingImprovementRevenueImprovement
DebtBondsBondsBonds
DebtBondsBondsBonds
Revenues:
General property taxes$ - $ - $122,703$ -
Special assessments3,674 - - 7,237
Charges for services6,202 - - -
Investment income12,5474,7003,121598
Total revenues22,4234,700125,8247,835
Expenditures:
Current:
General government:
Contractual services - - - -
Debt service:
Principal - 220,00095,000240,000
Interestandpayingagentfeesneres an payng agenees -3600,25556,5240,
Ittditf3600255565240
Total expenditures0223,600120,556245,240
Revenues over (under) expenditures22,423(218,900)5,268(237,405)
Other financing sources (uses):
Bond proceeds - - - -
Transfer in - - - -
Transferin
Transfer out - - - -
Total other financing sources (uses)0000
Net change in fund balance22,423(218,900)5,268(237,405)
Fund balance - January 1215,298380,844116,114253,414
FdblDb31Fund balance - December 31$237721$237,721$161,944$121,382$16,009$161944$121382$16009
100
Statement 16
367 2008A
358 2003A 362 2004C 364 2005A 365 2005C G.O. Public
357 2002A G.O.TaxableG.O.G.O. Park Works
G.O. Library Equipment360 2004A G.O. T.I. ImprovementRefundingFacilityTotals Nonmajor Debt
BondsCertificateGOBonds..RefundBondsBondsBonds
ServiceFunds
BondsCertificateGOBondsRefundBondsBondsBondsServiceFunds
20082007
$490,700$138,173$346,700$ - $285,000$425,914$ - $1,809,190$1,942,928
- - 47,533 - 54,435 - - 112,879493,426
- - - - - - - 6,20229,250
27,673 - 20,222 - 40,46519,9193,935133,180191,246
518,373138,173414,4550379,900445,8333,9352,061,4512,656,850
- - - - - - - - 1,755
240,000130,000370,00055,000279,552590,000 - 2,219,5521,750,000
221958,3185,37675,55546,216325,63450, -632535,484664,
2219583185376755554621632563450632535484664
461,958133,185407,675110,546495,877653,45002,852,0872,236,419
56,4154,9886,780(110,546)(115,977)(207,617)3,935(790,636)420,431
- - - - - - 385,692385,692 -
- - - 110,546 - 269,986 - 380,532326,955
110,546269,986380,532326,955
- - - - (93,160) - - (93,160)(1,256,971)
000110,546(93,160)269,986385,692673,064(930,016)
56,4154,9886,7800(209,137)62,369389,627(117,572)(509,585)
713,72221,635598,709 - 885,729775,421 - 3,960,8864,470,471
$770137$770,137$26,623$605,489$0$676,592$837,790$389,627$3,843,314$3,960,886$26623$605489$0$676592$837790$389627$3843314$3960886
101
- This page intentionally left blank -
102
NONMAJOR CAPITAL PROJECT FUNDS
Capital Project Funds are used to account for the construction and financing of large capital
projects. Revenues and expenditures are recognized on the modified accrual basis. Revenues
are recognized in the accounting period in which they become available and measurable.
Expenditures are recognized in the accounting period in which they are incurred.
Most capital projects are singular in purpose and their revenues/expenditures cannot be used
for subsidizing any other operating fund. In each of these cases, bonds or other revenues
received can only be used for these specific activities.
The following Capital Project Funds differ in that several of the expenditure categories
represent recurring types of costs, i.e., personal services, repair and maintenance of utilities,
and/or recurring land improvements.
400 Capital Replacement Fund – accounts for monies collected from developers for inspection
and administrative services for projects.
– accounts for park dedication fees as required by the
410 Park Acquisition & Development
City ordinance. These funds are then utilized to finance park and trail improvements identified
in the park and recreation section of the cities comprehensive plan.
– accounts for construction of the Lyman Blvd. project.
411 Lyman Blvd. Improvements
415 Municipal State Aid Fund – accounts for monies received from the State for improving
designated State aid roads and can be used only for those purposes.
420 Street Pavement Management – accounts for sealcoating costs on local streets.
464 Highway 212 Improvements State Loan Fund – accounts for the loan proceeds received and
offsetting expenditures relating to infrastructure improvements around Highway 312.
463 212/101 GAP Fund – accounts for construction of the Highway 212/101 GAP.
464 Gateway Place TIF District, 491 TID #4 Entertainment, 494 TID #5 North Bay, 495 TID
#6 Gateway West, and 498 #8 Presbyterian Homes – account for financing improvements in
tax increment financing districts.
600 Special Assessment Projects – accounts for the construction or projects financied by
special assessments.
602 2006A Special Assessment Bonds – accounts for the construction costs related to the
MUSA area improvements.
103
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2008
With Comparative Totals For December 31,, 2007
WithComparativeTotalsForDecember312007
410 Park 464 Highway
400 Capital Acquisition420 Street 212461 Gateway
ReplacementandPavementImprovementsPlace TIF
FundDevelopmentManagementState LoanDistrict
AAssets:
Cash and investments$1,392,240$3,600,973$559,120$ - $1,825
Accrued interest receivable11,48436,1975,728 - -
Due from other governments - - - - -
Accounts receivable - net22,885 - - - -
Property taxes receivable7,296 - 2,369 - -
Special assessments receivable - - - - -
Total assets$1,433,905$3,637,170$567,217$0$1,825
Liabilities and Fund Balance
Liabilities:
Accounts payable$32,369$ - $ - $ - $ -
Due to other funds - - - - -
Contractspayable - 11,924 - - -
Contractspayable11,924
Due to other governments - - - - -
Deferred revenue - - - - -
Total liabilities32,36911,924000
Fund balance (deficit):
Unreserved:
Designated for capital improvements1,401,5363,625,246567,217 - -
Undesignated - - - - 1 ,8,25
Undesignated1825
Total fund balance (deficit)1,401,5363,625,246567,21701,825
Total liabilities and fund balance$1,433,905$3,637,170$567,217$0$1,825
104
Statement 17
602 2006A 603 Lyman
498 TID #8 600 Special SpecialBlvd
491 TID #4 494 TID #5
PresbyterianAssessmentAssessmentImprovementsTotals Nonmajor Capital Project
EntertainmentNorth BayHomesProjectsBonds06-03
Funds
20082007
$515,699$ - $126,570$30,951$399,745$407,814$7,034,937$7,582,195
4,752 - 6381184,9165,52869,36185,806
- - - - - - - 309,143
- - - - 90,176509113,570121,095
- 1,820 - - - - 11,4859,577
- - - 39,328 - - 39,32859,210
$520,451$1,820$127,208$70,397$494,837$413,851$7,268,681$8,167,026
$27,569$ - $ - $ - $ - $509$60,447$323,429
- 13,409 - - - - 13,409234,177
- - - - - - 11,924117,545
11,924117,545
- - - - - - - 400,293
- 1,820 - 39,180 - 62,682103,682367,312
27,56915,229039,180063,191189,4621,442,756
492,882 - 127,20831,217494,837350,6607,090,8036,963,704
-(13,,409) - - - - (11,58,4)(239,,434)
(13409)(11584)(239434)
492,882(13,409)127,20831,217494,837350,6607,079,2196,724,270
$520,451$1,820$127,208$70,397$494,837$413,851$7,268,681$8,167,026
105
- This page intentionally left blank -
106
CITY OF CHANHASSEN, MINNESOTA
Statement 18
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
Page 1 of 2
CHANGES IN FUND BALANCES
NONMAJOR CAPITAL PROJECT FUNDS
ForTheYearEndedDecember312008,
ForTheYearEndedDecember312008
With Comparative Totals For The Year Ended December 31, 2007
410 Park
400 Capital Acquisition411 Lyman 420 Street
ReplacementandBlvd415 Municipal Pavement
FundDevelopmentImprovementsState Aid FundManagement
Revenues:
Revenues:
General property taxes$824,000$ - $ - $ - $267,875
Tax increment collections - - - - -
Licenses and permits - 432,542 - - -
Intergovernmental - - - 100,000 -
Special assessments - - - - -
Charges for services - - - - -
Investment income61,429191,225 - - 35,864
Contributions and donations2,500 - - - -
Other13,3082,500 - - -
Total revenues901,237626,2670100,000303,739
Expenditures:
Current:
General government133,343 - - - -
Publicsafetyuc saey32517, - - - -
Pblift32517
Public works8,146 - - 10,548265,502
Parks and recreation27,95354,954 - - -
Community development - - - - -
Capital outlay:
General government92,352 - - - -
Public safety54,284 - - - -
Public works223,600 - - - -
Publicworks223,600
Parks and recreation108,442534,066 - - -
Developer assistance - - - - -
Total expenditures680,637589,020010,548265,502
Revenues over (under) expenditures220,60037,247089,45238,237
Other financing sources (uses):
LidLoans issued - - - - -
Transfer in - - - - 628,750
Transfer out - - (260,985)(628,750) -
Sale of capital assets10,695 - - - -
Total other financing sources (uses)10,6950(260,985)(628,750)628,750
Net change in fund balance231,295 37,247 (260,985)(539,298)666,987
Fund balance (deficit) - January 11,170,2413,587,999260,985539,298(99,770)
Fund balance (deficit) - December 31$1,401,536$3,625,246$0$0$567,217
107
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR CAPITAL PROJECT FUNDS
ForTheYearEndedDecember312008,
ForTheYearEndedDecember312008
With Comparative Totals For The Year Ended December 31, 2007
464 Highway
212461 Gateway
ImprovementsPlace TIF 463 212/101 491 TID #4 494 TID #5
State LoanDistrictGapEntertainmentNorth Bay
Revenues:
Revenues:
General property taxes$ - $ - $ - $ - $ -
Tax increment collections -416 - 211,89977,401
Licenses and permits - - - - -
Intergovernmental - - - - 7,705
Special assessments - - - - -
Charges for services - - - - -
Investment income - - - 26,310 -
Contributions and donations - - - - -
Other - 6,297 - - -
Total revenues06,7130238,20985,106
Expenditures:
Current:
General government - - - - -
Publicsafetyuc saey - - - - -
Pblift
Public works24,839 - 4,203 - -
Parks and recreation - - - - -
Community development -590 - 45,2932,100
Capital outlay:
General government - - - - -
Public safety - - - - -
Public works - - - - -
Publicworks
Parks and recreation - - - - -
Developer assistance - - - - 50,006
Total expenditures24,8395904,20345,29352,106
Revenues over (under) expenditures(24,839)6,123(4,203)192,91633,000
Other financing sources (uses):
LidLoans issued2483924,839 - - - -
Transfer in - - 93,160 - -
Transfer out - - - (110,546) -
Sale of capital assets - - - - -
Total other financing sources (uses)24,839093,160(110,546)0
Net change in fund balance0 6,123 88,957 82,370 33,000
Fund balance (deficit) - January 1 - (4,298)(88,957)410,512(46,409)
Fund balance (deficit) - December 31$0$1,825$0$492,882($13,409)
108
Statement 18
Page 2 of 2
602 2006A 603 Lyman
498 TID #8 600 Special SpecialBlvd
495 TID #6 PresbyterianAssessmentAssessmentImprovementsTotals Nonmajor Capital Project
Gateway WestHomesProjectsBonds06-03Funds
20082007
20082007
$ - $ - $ - $ - $ - $1,091,875$1,074,750
- 186,935 - - - 476,651420,526
- - - - - 432,542496,352
- - - - 1,437,3181,545,023494,351
- - 23,467 - - 23,46725,837
- - - - 56,84456,84414,520
-3,43861214,77132,831366,480453,882
- - - - - 2,50012,500
- - - - - 22,10543,730
0190,37324,07914,7711,526,9934,017,4873,036,448
- - - - - 133,343116,887
- - - - - 32517,196398,
32517196398
- - - - 330,264643,502462,971
- - - - - 82,907106,789
-341 - - - 48,324407,556
- - - - - 92,3526,734
- - - - - 54,284505,215
- - - 120,9131,107,0541,451,567982,494
120,9131,107,0541,451,567982,494
- - - - - 642,5081,070,648
- 176,049 - - - 226,055206,753
0176,3900120,9131,437,3183,407,3594,062,445
013,98324,079(106,142)89,675610,128(1,025,997)
- - - - - 24,839 - 24839
- - - - 260,985982,895936,524
(273,327) - - - - (1,273,608)(1,080,591)
- - - - - 10,69516,740
(273,327)000260,985(255,179)(127,327)
(273,327)13,983 24,079 (106,142)350,660 354,949 (1,153,324)
273,327113,2257,138600,979 - 6,724,2707,877,594
$0$127,208$31,217$494,837$350,660$7,079,219$6,724,270
109
CITY OF CHANHASSEN, MINNESOTA
Statement 19
SPECIAL REVENUE FUND - CONTRIBUTION FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2008
With Comparative Actual Amounts For The Year Ended December 31, 2007
20082007
Budgeted AmountsActualVariance withActual
OriginalFinalAmountsFinal BudgetAmounts
Revenues:
Investment income$1,500$1,500$2,006$506$2,341
Contributions and donations18,00018,00010,260(7,740)12,167
Total revenues19,50019,50012,266(7,234)14,508
Expenditures:
Current:
Public safety17,50017,50017,500 - 17,500
Capital outlay2,0002,000 - 2,000 -
Total expenditures19,50019,50017,5002,00017,500
Revenues over (under) expenditures$0$0(5,234)($5,234)(2,992)
Fund balance - January 134,73337,725
Fund balance - December 31$29,499$34,733
110
CITY OF CHANHASSEN, MINNESOTA
Statement 20
SPECIAL REVENUE FUND - CATV
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
ForTheYearEndedDecember312008,
ForTheYearEndedDecember312008
With Comparative Actual Amounts For The Year Ended December 31, 2007
20082007
Budgeted AmountsActualVariance withActual
OriginalFinalAmountsFinal BudgetAmounts
Revenues:
Revenues:
Franchise fees$150,000$150,000$185,566$35,566$183,542
Investment income8,0008,00020,78812,78821,438
Total revenues158,000158,000206,35448,354204,980
Expenditures:
Current:
Personal services83,20083,20083,783(583)80,968
()
Materials and supplies500500740(240)4,959
Contractual services17,00017,0003,30413,6962,280
Capital outlay5,5005,500141,248(135,748) -
Total expenditures106,200106,200229,075(122,875)88,207
Revenues over expenditures$51,800$51,800(22,721)($74,521)116,773
FdblJ1Funaance - January 5484385,431665,5
dbl14843843166
Fund balance - December 31$525,717$548,438
111
- This page intentionally left blank -
112
FIDUCIARY FUNDS
Fiduciary Funds have been established to account for cash or other assets held by the City as a
trustee or agent for others. Revenues are recognized in the accounting period in which they
become available and measurable. Expenditures are recognized in the accounting period in
which the related liability is incurred.
Fiduciary Funds are custodial in nature (assets equal liabilities) and do not involve
measurement of the results of operations.
Escrow Fund – this fund is used to account for various deposits required by the City.
Moon Valley Restoration Fund – this is an escrow fund which will be used to finance
restoration to a gravel pit when it ceases operation.
113
CITY OF CHANHASSEN, MINNESOTA
Statement 21
COMBINING STATEMENT OF NET ASSETS
AGENCY FUNDS
December 31, 2008
With Comparative Totals For December 31, 2007
913 Moon
Valley
815 Escrow Restoration
FundFundTotals
20082007
Assets:
Cash and investments$625,127$84,278$709,405$808,404
Liabilities:
Accounts payable$1,500$ - $1,500$2,245
Escrow deposits payable623,62784,278707,905806,159
Total liabilities$625,127$84,278$709,405$808,404
114
CITY OF CHANHASSEN, MINNESOTA
Statement 22
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
For The Year Ended December 31, 2008
BalanceBalance
01/01/08AdditionsDeletions12/31/08
Escrow Fund
Assets:
Cash and investments$725,992$200,144$301,009$625,127
Liabilities:
Accounts payable$2,245$1,500$2,245$1,500
Escrow deposits payable723,747198,644298,764623,627
Total liabilities$725,992$200,144$301,009$625,127
Moon Valley Restoration Fund
Assets:
Cash and investments$82,412$1,866$ - $84,278
Liabilities:
Escrow deposits payable$82,412$1,866$ - $84,278
Totals - All Agency Funds
Assets:
Cash and investments$808,404$202,010$301,009$709,405
Liabilities:
Accounts payable$2,245$1,500$2,245$1,500
Escrow deposits payable806,159200,510298,764707,905
Total liabilities$808,404$202,010$301,009$709,405
115
- This page intentionally left blank -
116
SUPPLEMENTARY FINANCIAL INFORMATION
117
CITY OF CHANHASSEN, MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS
December 31, 2008
Final
InterestIssueMaturity
Bonded indebtedness:RatesDateDate
General Obligation Bonds:
G.O. Library Bonds, Series 2002A1.55%-4.85%03/01/0202/01/22
G.O. Equipment Certificates, Series 2003A1.35%-2.45%08/01/0308/01/08
G.O. Park Refunding Bonds, Series 2005C3.50%11/16/0502/01/10
G.O. Capital Improvement Plan Bonds, Series 2008A4.00%-4.60%11/18/0802/01/30
Total General Obligation Bonds
Revenue Bonds:
2000 Public Project Revenue Bonds4.75%-5.35%12/01/0002/01/12
Tax Increment Bonds:
G.O. Tax Increment Refunding Bonds, Series 2004C3.00%-6.00%08/10/0402/01/21
General Improvement Bonds:
G.O. Improvement Bonds, Series 1999A3.80%-4.90%12/01/9902/01/10
G.O. Improvement Bonds, Series 2001B4.00%-4.30%07/15/0102/01/10
.. Imrmnt Bn,ri 2004A2.50-4.00081004020115
G.O.poveeods,Sees.%.%////
GOImprovementBondsSeries2004A250%400%08/10/0402/01/15
G.O. Improvement Bonds, Series 2006A3.75%-3.80%06/13/0602/01/14
Total General Improvement Bonds
Enterprise Fund Debt:
G.O. Water Revenue Bonds of 1998, Series C3.90%-4.55%06/01/9802/01/09
G.O. Water Revenue Bonds of 1999, Series A3.80%-5.00%12/01/9902/01/10
G.O. Sewer and Water Revenue Bonds 2001, Series A3.50%-4.65%07/15/0102/01/12
G.O. Water Revenue Bonds of 2004, Series B4.00%-4.50%08/10/0402/01/25
G.O. Water Revenue Bonds of 2005, Series B3.75%-3.90%11/16/0502/01/21
Total Enterprise Fund Debt
Total bonded indebtedness
Other debt:
Loan payable for highway construction3.81%-4.30%04/19/0507/01/17
Compensated absences payable
Total City indebtedness
118
Exhibit 1
Prior YearsPayable2008PayablePrincipal
OriginalJanuary 1,December 31,Due in
IssuePayments2008IssuedPayments20082009
$6,095,000$1,005,000$5,090,000$ - $240,000$4,850,000$250,000
630,000500,000130,000 - 130,000 - -
2,590,000495,0002,095,000 - 590,0001,505,000610,000
- - - 7,550,000 - 7,550,000 -
9,315,0002,000,0007,315,0007,550,000960,00013,905,000860,000
930,000400,000530,000 - 95,000435,000100,000
1,170,000100,0001,070,000 - 55,0001,015,00055,000
2,585,0002,365,000220,000 - 220,000 - -
640,000400,000240,000 - 240,000 - -
,00,00015,0001,355,000 - 3 0,00085,000380,000
2,7,7,,,7,9,,
20700007150001355000370000985000380000
6,640,000 - 6,640,000 - 470,0006,170,000840,000
11,935,0003,480,0008,455,00001,300,0007,155,0001,220,000
820,000610,000210,000 - 210,000 - -
1,670,0001,080,000590,000 - 590,000 - -
1,645,0001,120,000525,000 - 130,000395,000130,000
7,930,000575,0007,355,000 - 280,0007,075,000290,000
5,465,000230,0005,235,000 - 290,0004,945,000300,000
17,530,0003,615,00013,915,00001,500,00012,415,000720,000
40,880,0009,595,00031,285,0007,550,0003,910,00034,925,0002,955,000
3,853,005 - 3,828,16624,839477,8803,375,125318,002
- - 752,921548,442480,615820,74850,952
$44,733,005$9,595,000$35,866,087$8,123,281$4,868,495$39,120,873$3,323,954
119
CITY OF CHANHASSEN, MINNESOTA
Exhibit 2
DEBT SERVICE PAYMENTS TO MATURITY
GENERAL OBLIGATION BONDS
December 31, 2008
G.O. Tax
2000IncrementG.O. ParkG.O. Capital
Public ProjectG.O. LibraryRefundingRefundingImprovement
RevenueBonds,Bonds,Bonds,Plan Bonds,
BondSeries 2002ASeries 2004CSeries 2005CSeries 2008ATotal
Bonds payable$435,000$4,850,000$1,015,000$1,505,000$7,550,000$15,355,000
Future interest payable47,5691,753,744413,15757,6624,308,8446,580,976
$482,569$6,603,744$1,428,157$1,562,662$11,858,844$21,935,976
Payments to maturity:
2009$120,152$462,579$107,979$652,000$225,358$1,568,068
2010119,899462,821110,485910,662320,6681,924,535
2011119,308467,251107,725 - 565,6671,259,951
2012123,210465,873109,720 - 560,5681,259,371
2013 - 468,620111,345 - 560,1671,140,132
2014 - 470,315107,775 - 559,3681,137,458
2015 - 470,960109,005 - 558,1671,138,132
2016 - 470,686109,895 - 556,5681,137,149
2017 - 474,443110,440 - 559,4671,144,350
2018 - 472,213110,580 - 561,7681,144,561
2019 - 478,860110,308 - 558,4841,147,652
2020 - 479,249109,600 - 564,4231,153,272
2021 - 478,475113,300 - 564,4671,156,242
2022 - 481,399 - - 563,7051,045,104
2023 - - - - 567,013567,013
2024 - - - - 569,270569,270
2025 - - - - 570,454570,454
2026 - - - - 570,545570,545
2027 - - - - 574,412574,412
2028 - - - - 572,035572,035
2029 - - - - 578,275578,275
2030 - - - - 577,995577,995
$482,5696,603,744$1,428,157$1,562,662$11,858,844$21,935,976
120
CITY OF CHANHASSEN, MINNESOTA
Exhibit 3
DEBT SERVICE PAYMENTS TO MATURITY
GENERAL OBLIGATION IMPROVEMENT BONDS
December 31, 2008
G.O.G.O.
ImprovementImprovement
Bonds,Bonds,
Series 2004ASeries 2006ATotal
Bonds payable$985,000$6,170,000$7,155,000
Future interest payable61,032735,713796,745
$1,046,032$6,905,713$7,951,745
Payments to maturity:
2009$406,438$1,057,300$1,463,738
2010360,1311,060,1441,420,275
201178,3001,253,0191,331,319
201275,8501,255,4501,331,300
201373,3131,260,8001,334,113
201426,5001,019,0001,045,500
201525,500 -25,500
$1,046,032$6,905,713$7,951,745
121
CITY OF CHANHASSEN, MINNESOTA
Exhibit 4
DEBT SERVICE PAYMENTS TO MATURITY
REVENUE BONDS
December 31, 2008
G.O.
Sewer &
WaterG.O. WaterG.O. Water
RevenueRevenueRevenue
BondsBonds of 2004,Bonds of 2005,
Series 2001ASeries BSeries BTotal
Bonds payable$395,000$7,075,000$4,945,000$12,415,000
Future interest payable29,9192,922,9251,326,0594,278,903
$424,919$9,997,925$6,271,059$16,693,903
Payments to maturity:
2009$144,565$582,954$481,633$1,209,152
2010139,008581,154480,1951,200,357
201169,718583,854478,3821,131,954
201271,628581,054481,1011,133,783
2013 -582,754483,2581,066,012
2014 -583,854479,9451,063,799
2015 -584,354486,0701,070,424
2016 -584,254481,6331,065,887
2017 -583,354481,7261,065,080
2018 -586,334486,0571,072,391
2019 -588,164484,5121,072,676
2020 -589,039482,2841,071,323
2021 -593,655484,2631,077,918
2022 -591,935 -591,935
2023 -598,787 -598,787
2024 -599,150 -599,150
2025 -603,275 -603,275
$424,919$9,997,925$6,271,059$16,693,903
122
CITY OF CHANHASSEN, MINNESOTA
Exhibit 5
TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES
December 31, 2008
Taxable Capacity Valuations:
Tax Capacity
Values
Property Type2007/2008
Real estate and personal property:
Hennepin County$1,637,734
Carver County37,963,895
Fiscal disparities:
Distribution1,867,771
Contribution(3,366,665)
Less: captured tax increment value(479,494)
Net tax capacity$37,623,241
Tax Levy and Tax Rates:
Payable 2008
Tax
CertifiedCapacity
LevyRate (1)
Taxes levied:
Revenue$6,833,90016.477
Debt Service3,001,0657.236
Totals$9,834,96523.713
(1) Urban rate
123
CITY OF CHANHASSEN, MINNESOTA
Exhibit 6
SCHEDULE OF DEFERRED TAX LEVIES
December 31, 2008
Public
ProjectG.O. ParkG.O. CapitalTotalG.O.G.O.TotalTotal
Years ofRevenueLibraryRefundingImprovementGeneralImprovementImprovementGeneralDeferred
Levy/BondsBondsBondsPlan BondsBondedBondsBondsImprovementTax
Collectionof 2000of 2002Aof 2005Cof 2008ADebtof 2004Aof 2005ABondsLevies
2008/2009$122,603$491,300$972,700$ - $1,586,603$297,900$285,000$582,900$2,169,503
2009/2010122,195496,400 - 599,3001,217,895 - 285,000285,0001,502,895
2010/2011126,420495,400 - 594,0001,215,820 - 285,000285,0001,500,820
2011/2012 - 498,800 - 593,8001,092,600 - 285,000285,0001,377,600
2012/2013 - 501,200 - 593,2001,094,400 - 285,000285,0001,379,400
2013/2014 - 502,400 - 592,1001,094,500 - 285,000285,0001,379,500
2014/2015 - 502,500 - 590,6001,093,100 - 285,000285,0001,378,100
2015/2016 - 507,000 - 594,0001,101,000 - 285,000285,0001,386,000
2016/2017 - 505,100 - 596,7001,101,800 - - - 1,101,800
2017/2018 - 512,800 - 593,6001,106,400 - - - 1,106,400
2018/2019 - 513,900 - 600,3001,114,200 - - - 1,114,200
2019/2020 - 513,700 - 600,8001,114,500 - - - 1,114,500
2020/2021 - 517,500 - 600,4001,117,900 - - - 1,117,900
2021/2022 - - - 604,500604,500 - - - 604,500
2022/2023 - - - 607,400607,400 - - - 607,400
2023/2024 - - - 609,200609,200 - - - 609,200
2024/2025 - - - 609,900609,900 - - - 609,900
2025/2026 - - - 614,600614,600 - - - 614,600
2026/2027 - - - 612,700612,700 - - - 612,700
2027/2028 - - - 620,100620,100 - - - 620,100
2028/2029 - - - 620,600620,600 - - - 620,600
$371,218$6,558,000$972,700$12,047,800$19,949,718$297,900$2,280,000$2,577,900$22,527,618
124
III. STATISTICAL SECTION (UNAUDITED)
125
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 Pages
Financial Trends
These tables contain trend information to help the reader understand how the 127-131
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 Information
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.
Operation Information
These tables contain service and infrastructure data to help the reader understand 146-151
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.
126
CITY OF CHANHASSEN, MINNESOTA
Table 1
NET ASSETS BY COMPONENT
(1)
Last Six Fiscal Years
(Accrual Basis of Accounting)
200320042005200620072008
Governmental activities:
Invested in capital assets, net
of related debt$76,644,369$77,583,392$72,418,684$70,216,944$68,982,379$70,611,368
Restricted:
Debt service2,565,4865,762,41410,174,5027,687,15511,047,06212,165,653
Tax increment purposes779,619630,5661,049,0471,063,589797,064621,915
Unrestricted11,477,63810,632,18411,239,65816,220,83414,631,16615,171,391
Total governmental activities
net assets$91,467,112$94,608,556$94,881,891$95,188,522$95,457,671$98,570,327
Business-type activities:
Invested in capital assets, net
of related debt$46,050,122$38,888,555$37,479,967$47,807,323$52,502,257$55,541,752
Restricted:
Debt service - - - - - -
Tax increment purposes - - - - - -
Unrestricted12,779,70121,908,22423,767,12215,039,02117,292,10613,117,323
Total business-type activities
net assets$58,829,823$60,796,779$61,247,089$62,846,344$69,794,363$68,659,075
Primary government:
Invested in capital assets, net
of related debt$122,694,491$116,471,947$109,898,651$118,024,267$121,484,636$126,153,120
Restricted:
Debt service2,565,4865,762,41410,174,5027,687,15511,047,06212,165,653
Tax increment purposes779,619630,5661,049,0471,063,589797,064621,915
Unrestricted24,257,33932,540,40835,006,78031,259,85531,923,27228,288,714
Total primary government
net assets$150,296,935$155,405,335$156,128,980$158,034,866$165,252,034$167,229,402
(1)
The City implemented GASB Statement No. 34 for the fiscal year ended December 31, 2003. Therefore, information
for years prior to 2003 is not available.
127
CITY OF CHANHASSEN, MINNESOTA
Table 2
CHANGES IN NET ASSETS
(1)
Page 1 of 2
Last Six Fiscal Years
(Accrual Basis of Accounting)
200320042005200620072008
Expenses
Governmental activities:
General government$2,201,345$2,338,485$4,518,355$2,380,103$2,439,716$2,469,055
Public safety2,587,0192,618,3072,653,3042,851,9263,098,0683,062,941
Public works5,140,0284,955,5984,915,4357,722,4667,010,9816,220,816
Parks and recreation2,578,5852,674,9542,867,3642,918,6453,023,0323,025,987
Community development891,2532,027,713595,878868,7491,052,104704,979
Interest on long-term debt1,018,936822,047505,367751,964835,059652,015
Total governmental activities expenses14,417,16615,437,10416,055,70317,493,85317,458,96016,135,793
Business-type activities:
Water1,973,9131,985,9082,656,3812,754,2013,112,5753,234,139
Sewer2,774,2312,686,1462,719,1563,069,0693,177,3663,072,588
Surface water management784,557957,0841,039,7211,317,0891,238,9141,121,197
Total business-type activities expenses5,532,7015,629,1386,415,2587,140,3597,528,8557,427,924
Total primary government expenses$19,949,867$21,066,242$22,470,961$24,634,212$24,987,815$23,563,717
Program revenues
Governmental activities:
Charges for services:
Licenses and permits$1,996,169$1,892,579$2,166,022$3,612,021$2,171,558$1,810,545
Charges for services1,075,631997,1141,196,1031,218,8161,132,4481,115,903
Fines and forfeits43,73261,801104,962162,946145,682124,633
Operating grants and contributions267,126370,090361,093671,674452,798346,023
Capital grants and contributions1,171,5892,633,9165,080,5122,506,8227,464,6973,221,636
Total governmental activities
program revenues4,554,2475,955,5008,908,6928,172,27911,367,1836,618,740
Business-type activities:
Charges for services:
Water1,582,6321,656,9111,703,5012,111,2302,461,2052,408,379
Sewer1,633,4401,748,9291,905,2062,008,3562,186,6222,187,209
Surface water management258,132265,090299,445424,702452,148479,318
Operating grants and contributions13,2216,3811,62053945,17236,350
Capital grants and contributions1,694,9983,528,2701,961,1222,501,5983,340,5981,527,624
Total business-type activities
program revenues5,182,4237,205,5815,870,8947,046,4258,485,7456,638,880
Total primary government
program revenues$9,736,670$13,161,081$14,779,586$15,218,704$19,852,928$13,257,620
128
CITY OF CHANHASSEN, MINNESOTA
Table 2
CHANGES IN NET ASSETS
(1)
Page 2 of 2
Last Six Fiscal Years
(Accrual Basis of Accounting)
200320042005200620072008
Net (expense) revenue:
Governmental activities($9,862,919)($9,481,604)($7,147,011)($9,321,574)($6,091,777)($9,517,053)
Business-type activities(350,278)1,576,443(544,364)(93,934)956,890(789,044)
Total primary government
net (expense) revenue(10,213,197)(7,905,161)(7,691,375)(9,415,508)(5,134,887)(10,306,097)
General revenues and other changes in net assets
Governmental activities:
Property taxes$8,330,561$8,398,790$9,451,141$9,165,278$9,419,763$9,651,758
Tax increment collections4,804,0194,623,927675,117315,398420,526574,101
Grants and contributions not
restricted to specific programs59,86755,87945,45528,592189,616108,039
Unrestricted investment earnings240,859164,712387,370905,9301,397,7461,150,993
Miscellaneous98,812222,64293,79234,644 - -
Gain on sale of capital assets582,333540,64623,795 - 10,80632,195
Transfers(121,355)(96,195)(481,824)(821,637)(5,077,531)1,112,623
Total governmental activities13,995,09613,910,40110,194,8469,628,2056,360,92612,629,709
Business-type activities:
Unrestricted investment earnings90,738255,510466,750768,600786,455797,079
Miscellaneous - 255,27946,100102,952127,14322,464
Transfers121,35596,195481,824821,6375,077,531(1,112,623)
Total business-type activities212,093606,984994,6741,693,1895,991,129(293,080)
Total primary government$14,207,189$14,517,385$11,189,520$11,321,394$12,352,055$12,336,629
Change in net assets:
Governmental activities$4,132,177$4,428,797$3,047,835$306,631$269,149$3,112,656
Business-type activities(138,185)2,183,427450,3101,599,2556,948,019(1,082,124)
Total primary government$3,993,992$6,612,224$3,498,145$1,905,886$7,217,168$2,030,532
(1)
The City implemented GASB Statement No. 34 for the fiscal year ended December 31, 2003. Therefore, information
for years prior to 2003 is not available.
129
CITY OF CHANHASSEN, MINNESOTA
Table 3
FUND BALANCES, GOVERNMENTAL FUNDS
(1)
Last Six Fiscal Years
(Modified Accrual Basis of Accounting)
200320042005200620072008
General Fund:
Reserved
Prepaid items$17,056$21,003$20,239$17,376$13,210$21,173
Unreserved:
Designated
General fund3,328,5303,125,9103,199,8003,279,0503,416,9503,586,750
Undesignated
General fund2,571,9493,128,6303,731,0231,523,8442,061,1261,273,796
Total general fund$5,917,535$6,275,543$6,951,062$4,820,270$5,491,286$4,881,719
All other governmental funds:
Reserved
Prepaid items$4,804$523$523$523$ - $25
Future programs11,85319,73535,90937,72534,73329,499
Debt service4,110,3166,922,5526,560,8845,262,5347,300,4926,641,747
Unreserved:
Designated
Special revenue funds567,443533,276489,370431,665548,438525,692
Capital project funds3,638,5923,978,8184,114,82013,458,6979,934,93618,732,625
Undesignated
Special revenue funds5,948,5381,089,942 - 25,020 - -
Debt service funds(3,020,544) - 3,403,769148,784215,298237,721
Capital project funds(2,013,776)(893,811)(738,510)(214,183)(239,434)(11,584)
Total all other governmental funds$9,247,226$11,651,035$13,866,765$19,150,765$17,794,463$26,155,725
(1)
The City implemented GASB Statement No. 34 for the fiscal year ended December 31, 2003. Therefore, information
for years prior to 2003 is not available.
130
CITY OF CHANHASSEN, MINNESOTA
Table 4
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
(1)
Last Six Fiscal Years
200320042005200620072008
Revenues:
General property taxes$8,292,083$8,443,464$9,417,527$9,140,601$9,403,109$9,582,333
Tax increment collections4,975,8604,917,923675,798$315,398$420,526$574,101
Licenses and permits1,996,1681,892,5792,166,0223,727,2972,171,5581,810,545
Intergovernmental1,082,5491,013,7041,244,6562,171,5651,148,0342,147,970
Special assessments1,963,4312,262,7311,113,9221,922,9443,922,517623,893
Charges for services839,522943,744863,958899,015738,669841,209
Fines and forfeits43,73261,801104,962162,946145,682124,633
Investment income240,859164,712387,370905,9301,397,7461,150,993
Contributions and donations9,67524,74971,19843,94947,42843,410
Other364,151290,629430,171279,549404,426289,277
Total revenues19,808,030 20,016,036 16,475,584 19,569,194 19,799,695 17,188,364
Expenditures:
Current:
General government2,072,0512,203,6072,722,1712,090,5652,116,9282,102,512
Public safety2,424,1252,461,4102,547,6762,656,9232,924,7512,885,296
Public works1,958,0921,773,6552,367,6524,425,2373,735,9502,786,397
Parks and recreation1,629,8561,622,1991,658,2001,877,1091,848,8801,933,353
Community development312,446326,134372,938451,092841,306468,819
Capital outlay:
General government - - 311,25098,3966,734233,600
Public safety - 99,87210,26538,593505,21554,284
Public works3,427,2361,787,7372,334,5776,431,5946,693,3874,677,179
Parks and recreation2,362615,207462,794377,3671,491,848642,508
Debt service:
Principal 10,700,0007,752,0002,035,0001,375,0001,750,0002,689,552
Interest and paying agent fees1,070,394687,299691,230591,614769,212874,848
Bond issuance costs13,63529,317 - 36,987 - 93,811
Developer assistance578,2911,660,088230,353111,791206,753226,055
Other93,95411,046897,523300,000 - -
Total expenditures24,282,442 21,029,571 16,641,629 20,862,268 22,890,964 19,668,214
Revenues over (under) expenditures(4,474,412)(1,013,535)(166,045)(1,293,074)(3,091,269)(2,479,850)
Other financing sources (uses):
Bonds issued630,0003,240,0002,590,0006,640,000 - 7,550,000
Remption of refunding bonds - - - (3,560,000) - -
Loans issued - - 105,419708,0033,014,74424,839
Transfers in(121,355)(54,242)338,080702,889537,5642,646,011
Transfers out - - - - (1,163,065) -
Bond discount(3,937)(10,387) - (44,610) - -
Sale of capital assets702,596963,29023,795 - 16,74010,695
Total other financing sources (uses)1,207,304 4,138,661 3,057,294 4,446,282 2,405,983 10,231,545
Net change in fund balance($3,267,108)$3,125,126$2,891,249$3,153,208($685,286)$7,751,695
Debt service as a percentage of
noncapital expenditures58.4%50.2%22.0%14.8%18.0%26.4%
Debt service as percentage of
total expenditures48.5%40.3%16.4%9.6%11.0%18.6%
(1)
The City implemented GASB Statement No. 34 for the fiscal year ended December 31, 2003. Therefore, information
for years prior to 2003 is not available.
131
CITY OF CHANHASSEN, MINNESOTA
TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
Fiscal
YearCommercial/Total
EndedResidentialIndustrialAllTax
December 31,PropertyAgriculturalPropertyOtherCapacity
1999(a)(a)(a)(a)$22,666,448
2000(a)(a)(a)(a)22,428,067
2001$18,842,469$171,965$7,743,027$558,77527,316,236
200215,094,239162,6495,334,174349,27020,940,332
200317,032,236133,3005,866,524357,87223,389,932
200419,502,882141,9395,904,892377,53125,927,244
200522,438,051178,5986,054,042388,88529,059,576
200624,904,864229,6516,537,205408,07032,079,790
200727,853,083316,4618,114,703428,20336,712,450
200829,821,326208,7899,135,911435,60339,601,629
Sources: Carver County Auditor's Office and Hennepin County
(a) Information not available
(1)
Tax Capacity as a Percent of EMV for years 1999 and 2000 was calculated on Total Tax Capacity since information
for Captured Tax Capacity on Tax Increment District and Fiscal Disparity Contribution were not available. For years 2001
through 2008, Adjusted Tax Capacity was used to calculate Tax Capacity as a Percent of EMV.
132
Table 5
Captured Tax
Capacity onFiscalAdjustedCityEstimatedTax Capacity
Tax IncrementDisparityTax CapacityDirect TaxMarketas a Percent
(1)
of EMV
DistrictContributionValueRateValue
(a)(a)$22,666,44827.89100$1,194,012,2001.90%
(a)(a)22,428,06726.895001,247,906,5001.80%
($5,920,832)$53,15421,448,55826.508001,593,928,1001.35%
(3,309,835)3,36217,633,85937.823001,790,521,3000.98%
(3,789,131)(19,916)19,580,88539.039002,010,114,7000.97%
(3,958,013)17,05621,986,28732.922002,271,332,1000.97%
(619,902)60,35428,500,02828.118002,552,120,2001.12%
(309,211)(929,994)30,840,58526.638002,812,847,1001.10%
(418,018)(955,204)35,339,22823.788003,175,746,5001.11%
(479,494)(1,498,894)37,623,24123.713003,394,928,1001.11%
133
CITY OF CHANHASSEN, MINNESOTA
Table 6
DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES
Last Ten Fiscal Years
CityOverlapping Rates
FiscalDirectSchoolCarver
YearRateDistrict #112CountyOtherTotal
Tax capacity rates (per $100 of adjusted tax capacity value)
199927.8910062.0350047.593007.26300144.78200
200026.8950074.2370045.744006.27600153.15200
200126.5080060.8050043.105004.49500134.91300
200237.8230029.8080053.336007.31100128.27800
200339.0390038.4380053.137007.40200138.01600
200432.9220037.5240048.443005.84500124.73400
200528.1180033.2990044.107005.56000111.08400
200626.6380032.8080040.836005.30500105.58700
200723.7880035.8310037.802005.13200102.55300
200823.7130035.9700037.563005.54700102.79300
Source: Carver County Auditor's Office
134
CITY OF CHANHASSEN, MINNESOTA
Table 7
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
20081999
Percentage Percentage
Taxableof Total CityTaxableof Total City
CapacityCapacityCapacityCapacity
TaxpayerValueRankValueValueRankValue
Rosemount Inc$396,69211.1%$590,23013.5%
IRET Properties351,17020.9% - - 0.0%
Istar LLC Properties326,30830.9% - - 0.0%
LTF Real Estate Company Inc227,23240.6% - - 0.0%
DRF Chanhassen Medical Bldg220,36050.6% - - 0.0%
Northern States Power Co213,89060.6%305,26251.8%
Target Corporation T-0862203,22470.5% - - 0.0%
Park Avenue Lofts LLC193,65480.5% - - 0.0%
Market Square Assoc Ltd Partnership175,39290.5%188,3008 1.1%
McGlynn Bakeries Inc #366167,250100.4%393,995 3 2.3%
Beddor Enterprises - - 0.0%433,3922 2.6%
Wang - - 0.0%320,42541.9%
TF James - - 0.0%301,263 6 1.8%
The Press, Incorporated - - 0.0%210,175 7 1.2%
PRN Music Corporation - - 0.0%162,92591.0%
Individual - - 0.0%161,175 10 1.0%
Total$2,475,1726.6%$3,067,14218.2%
Total All Property $37,484,401$16,884,240
Source: Carver County Auditor's Office
135
- This page intentionally left blank -
136
CITY OF CHANHASSEN, MINNESOTA
Table 8
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
FiscalTaxesCollected Within TheCollections
YearLeviedFiscal Year of the LevyinTotal Collections to Date
EndedFor ThePercentageSubsequentPercentage
December 31,Fiscal YearAmountof LevyYearsAmountof Levy
1999$5,122,792$5,078,01699.1%$42,699$5,120,715100.0%
20005,286,618 5,226,462 98.9%34,2915,260,75399.5%
20015,679,054 5,646,328 99.4%102,1195,748,447101.2%
20027,655,9167,557,37898.7%45,7447,603,12299.3%
20038,639,1678,206,00195.0%91,7508,297,75196.0%
20048,639,1678,323,05396.3%126,8158,449,86897.8%
20059,439,7549,124,03096.7%120,1859,244,21597.9%
20069,354,8909,066,59196.9%82,5899,149,18097.8%
20079,575,7789,447,69298.7%71,8879,519,57999.4%
20089,834,9659,555,48997.2% - 9,555,48997.2%
Source: City Finance Department
137
CITY OF CHANHASSEN, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Governmental Activities
GeneralGeneral
FiscalObligationRevenueTax IncrementImprovementOther
YearBondsBondsBondsBondsDebt
1999$6,105,000$ - $15,005,000$25,221,379$ -
20005,725,000930,0008,040,00021,966,605 -
20016,040,000930,0006,855,00019,411,686120,000
200211,355,000930,0004,915,00014,175,33180,000
200311,475,000860,0003,075,0005,890,00040,000
200410,710,000785,0001,170,0004,195,000 -
200512,215,000705,0001,170,0003,325,000105,419
20068,170,000620,0001,120,0009,210,000813,422
20077,315,000530,0001,070,0008,455,0003,828,166
200813,905,000435,0001,015,0007,155,0003,375,125
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1)
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.
138
Table 9
Business-Type
Activities
Less:Percentage
G.O. RevenueDebt Serviceof TaxBonded Debt
(1)(1)
Bonded Debt
BondsTotal DebtFund BalanceCapacityPer Capita
$2,950,000$49,281,379$6,299,805$42,981,574246.79%$2,291
2,770,00039,431,6055,747,18033,684,425179.65%1,654
3,996,35037,353,0362,773,25534,579,781161.22%1,604
3,576,10035,031,4313,255,09531,776,336180.20%1,420
3,175,00024,515,0001,089,77223,425,228120.22%996
10,600,00027,460,0006,795,40620,664,59481.94%882
15,545,00033,065,4199,964,65323,100,76682.82%968
14,820,00034,753,4225,411,31829,342,10496.30%1,228
13,915,00035,113,1667,623,13827,490,02879.02%1,130
12,415,00038,300,1256,972,63031,327,49583.57%1,280
139
CITY OF CHANHASSEN, MINNESOTA
Table 10
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
December 31, 2008
Estimated
EstimatedShare of
DebtPercentageOverlapping
Governmental UnitOutstandingApplicableDebt
Direct debt:
(1)
City of Chanhassen
$13,905,000100.00%$13,905,000
Overlapping debt:
Chaska Independent School District238,900,00026.82%64,072,980
Eden Prairie Independent School District74,180,0000.94%697,292
Minnetonka Independent School District87,724,5480.00% -
Carver County32,585,00032.94%10,733,499
Hennepin County501,975,3590.07%351,383
Hennepin Suburban Park District72,794,8150.09%65,515
Hennepin Regulatory Railroad Authority43,486,8620.07%30,441
Metropolitan Council137,904,6530.03%41,371
Subtotal - overlapping debt1,189,551,23775,992,481
Total direct and overlapping debt$1,203,456,237$89,897,481
(1)
Excludes general obligation improvement bonds and revenue bonded indebtedness
140
CITY OF CHANHASSEN, MINNESOTA
Table 11
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2008
Market value$3,394,928,100
Applicable percentage3%
Debt limit101,847,843
Debt applicable to limit:
Total bonded debt34,925,000
Less:
Special assessment bonds(7,155,000)
Tax increment bonds(1,015,000)
Revenue bonds(435,000)
Enterprise Fund debt(12,415,000)
Less:
Cash and investments in G.O. Bond Debt Service Fund(1,980,562)
11,924,438
Legal debt margin$89,923,405
Legal Debt Margin Calculation for Fiscal Years 1999 Through 2008
Net DebtLegalAmount of DebtNet Bonded
FiscalDebtApplicable toDebtApplicable toDebt Per
YearPopulationLimitLimitMarginDebt LimitCapita
199918,76023,880,2445,363,84818,516,39622.46%286
200020,37124,958,1305,138,04519,820,08520.59%252
200121,56131,878,5625,629,81126,248,75117.66%261
200222,37635,810,42610,679,36025,131,06629.82%477
200323,52440,202,29410,571,25229,631,04226.30%449
200423,43145,426,6429,385,23236,041,41020.66%401
200523,86451,042,4048,150,62642,891,77815.97%342
200623,88956,256,9426,950,30449,306,63812.35%291
200724,32163,514,9305,844,64857,670,2829.20%240
200824,481101,847,84311,924,43889,923,40511.71%487
141
CITY OF CHANHASSEN, MINNESOTA
Table 12
PLEDGED REVENUE COVERAGE
Last Ten Fiscal Years
Improvement Bonds
Special
FiscalAssessmentDebt Service
YearCollectionsPrincipalInterestCoverage
1999$3,432,087Information Not Available
20002,992,985 $3,550,000$846,0610.681
20012,514,3633,506,350720,4480.595
20023,159,7785,479,750522,0720.526
20031,963,4315,446,600324,3300.340
20042,262,7313,765,000110,1180.584
20051,113,922870,000139,0591.104
20061,922,944755,000103,8132.239
20073,922,517755,000360,8523.515
2008623,8911,300,000287,7270.393
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
142
CITY OF CHANHASSEN, MINNESOTA
Table 13
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
Carver County
ChanhassenCarver CountyCarver CountyPer Capita
FiscalChanhassenUnemploymentUnemploymentPersonalPersonal
(1)(2)(2)(3)(3)
PopulationRateRateIncomeIncome
Year
199918,760(a)2.1%$2,458,789$36,063
200020,3711.8%2.4%2,758,05538,921
200121,5612.8%3.3%2,957,40140,453
200222,3763.5%4.0%3,086,47640,776
200323,5243.3%4.1%3,198,89440,797
200423,4313.2%3.9%3,467,40042,779
200523,8642.6%3.4%3,800,56545,248
200623,8892.7%3.3%4,100,88247,443
200724,3213.1%4.0%(a)(a)
200824,4814.0%5.0%(a)(a)
(1)
Sources:Federal Census Data and Chanhassen Planning Department
(2)
State of Minnesota, Department of Employment and Economic Development
(3)
U.S. Department of Commerce, Bureau of Economic Analysis
(a) Information not available
Note: Information pertaining to Chanhassen Personal Income and Per Capita Personal Income is not available, information
for Carver County was included instead.
143
- This page intentionally left blank -
144
CITY OF CHANHASSEN, MINNESOTA
Table 14
PRINCIPAL EMPLOYERS
(1)
Current Year and Two Years Ago
20082006
EmployerProduct ServiceEmployeesEmployees
Rosemount IncManufacturing1,4751,200
Lifetime FitnessFitness Center919 -
Super Value HeadquartersSupermarket900900
Instant Web CompaniesAdvertising Material Distribution Svcs847548
General MillsCommercial Bakery475600
Chanhassen Dinner TheatresDinner Theatre300300
Banta Direct MarketingCommercial Printing383324
Byerly'sSupermarket280280
Minnesota Landscape ArboretumLandscape Arboretum230240
TargetGeneral Merchandise Store160 -
EntegrisPlastics Material & Resin Mfg. -350
ABC/Lyman LumberWood Product Manufacturing -175
Total5,9694,917
Source: State of Minnesota, Department of Employment and Economic Development
(1)
Principal employer information prior to 2006 is not available
145
CITY OF CHANHASSEN, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Full-Time Equivalent Employees as of December 31,
Function/Program199920002001
General government111111
Public safety533
Public works222223
Parks & recreation111111
Community development171717
Total666465
Source: City Finance Department
146
Table 15
Full-Time Equivalent Employees as of December 31,
2002200320042005200620072008
12121212121313
3333333
23232324252525
11111111111111
17161716161515
66656666676767
147
CITY OF CHANHASSEN, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Fiscal Year
Function/Program199920002001
Building:
Permits issued1,3211,0673,195
Estimated value$90,100,800$84,131,650$86,644,500
Election:
Registered voters11,66511,66511,665
Fire:
Average number of employees444444
General government:
Area of city - square miles23.7823.7823.78
Average number of permanent full-time
employees (excluding fire department)666465
Police:
Average number of employees222
Number of major crimes145145145
Water:
Number of customers5,4825,4825,482
Daily average consumption - gallons2,195,4582,195,4582,195,458
Plant capacity - gallons3,850,0003,850,0003,850,000
Source: Various City departments
148
Table 16
Fiscal Year
2002200320042005200620072008
1,3879149981,0081,1969541,046
$85,811,450$85,879,250$86,893,088$62,100,325$95,610,311$106,831,600$116,477,429
11,66513,72315,63215,63215,31915,31916,544
44434343444445
23.7823.7823.7823.7823.7823.7823.78
66656666676767
2111113131314
1453111,2881,0681,2971,2021,013
5,4826,5496,6606,7797,4827,6737,736
2,195,4583,000,0002,718,5992,571,8433,163,8643,031,4003,200,000
3,850,0008,900,0008,500,0008,650,0008,650,0008,650,0008,650,000
149
CITY OF CHANHASSEN, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Fiscal Year
Function/Program199920002001
Fire:
Number of stations222
Parks and recreation:
Acres of parks529529529
Acres of open space2,8152,8152,815
Number of shelter buildings888
Number of playgrounds222222
Number of swimming beaches333
Number of tennis courts777
Police:
Number of stations111
Public works:
Miles of streets146.0146.0146.0
Miles of sidewalks14.014.014.0
Miles of trails23.023.023.0
Sewer:
Miles of storm sewers65.065.065.0
Miles of sanitary sewers102.0102.0102.0
Number of lift stations292929
Water:
Miles of watermains110.0110.0110.0
Number of wells777
Source: Various City departments
150
Table 17
Fiscal Year
2002200320042005200620072008
2222222
529350375375375842842
2,815300300365365750754
8233333
22232525252626
3444466
761717171717
1111111
146.0124.7102.4106.8108.1110.5111.3
14.010.510.523.023.825.226.7
26.041.539.954.055.159.364.8
65.060.160.160.161.663.664.5
102.0111.5111.5111.5113.0115.7117.0
29303030313131
110.0120.0120.0120.0122.6125.3128.9
8778101112
151
- This page intentionally left blank -
152