2014 Annual Financial Report2 14
ComprehensiveAnnualFinancialReport
City of Chanhassen
MINNESOTA
For the Fiscal Year Ended December 31, 2014. City of Chanhassen, Minnesota
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE CITY OF CHANHASSEN, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2014
Finance Department
Greg Sticha, Finance Director
Member of Government Finance Officers
Association of United States and Canada
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CITY OF CHANHASSEN, MINNESOTA
TABLE OF CONTENTS
Page
ReferenceNo.
I. INTRODUCTORY SECTION
Letter of Transmittal3
Certificate of Achievement6
Organization Chart7
Organization8
II. FINANCIAL SECTION
Independent Auditor's Report11
Management's Discussion and Analysis15
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net PositionStatement 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 To the Statement of ActivitiesStatement 538
Statement of Net Position - Proprietary FundsStatement 639
Statement of Revenues, Expenses and Changes in Fund Net Position -
Proprietary FundsStatement 740
Statement of Cash Flows - Proprietary FundsStatement 841
Statement of Net Position - Fiduciary FundsStatement 942
Notes to Financial Statements43
Required Supplementary Information:
Budgetary Comparison Schedule - General FundStatement 1080
Schedule of Funding Progress - Retiree Health Plan86
CITY OF CHANHASSEN, MINNESOTA
TABLE OF CONTENTS
Page
ReferenceNo.
Combining and Individual Nonmajor Fund Financial 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 1699
Subcombining Balance Sheet - Nonmajor Capital Project FundsStatement 17102
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Capital Project FundsStatement 18105
Special Revenue Funds:
Schedules of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual:
Contribution FundStatement 19108
CATVStatement 20109
Combining Statement of Net Position - Agency FundsStatement 21112
Combining Statement of Changes in Assets and Liabilities - Agency FundsStatement 22113
III. STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Position by ComponentTable 1118
Changes in Net PositionTable 2120
Fund Balances - Governmental FundsTable 3124
Changes in Fund Balances - Governmental FundsTable 4126
Revenue Capacity:
Tax Capacity and Estimated Market Value of Taxable PropertyTable 5128
Direct and Overlapping Property Tax Capacity RatesTable 6130
Principal Property TaxpayersTable 7131
Property Tax Levies and CollectionsTable 8133
CITY OF CHANHASSEN, MINNESOTA
TABLE OF CONTENTS
Page
ReferenceNo.
Debt Capacity:
Ratios of Outstanding Debt by TypeTable 9134
Ratios of General Bonded Debt OutstandingTable 10136
Direct and Overlapping Governmental Activities DebtTable 11137
Legal Debt Margin InformationTable 12139
Pledged Revenue CoverageTable 13140
Demographic and Economic:
Demographic and Economic StatisticsTable 14141
Principal EmployersTable 15143
Operating Information:
Full-Time Equivalent City Government Employees by Function/ProgramTable 16144
Operating Indicators by Function/ProgramTable 17146
Capital Asset Statistics by Function/ProgramTable 18148
IV. OTHER INFORMATION (UNAUDITED)
Combined Schedule of IndebtednessExhibit 1152
Debt Service Payments to Maturity:
General Obligation Bonds - Governmental ActivitiesExhibit 2154
General Obligation Revenue BondsExhibit 3155
Schedule of Deferred Tax LeviesExhibit 4156
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I. INTRODUCTORY SECTION
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Relevant Financial Policies
The City has a policy regarding General Fund reserve balances. The City has a designated fund balance in the
General Fund equivalent to 50% of the ensuing year’s budgeted tax levy to provide working capital between serve-
owned property tax settlements.
The primary financial goal of the City’s investment policy is to ensure the safety and principal invested by the
City. Cash temporarily idle during the year is invested in certificates of deposit and obligations of the U.S.
Treasury and government agencies. The City only invests in instruments authorized under Minnesota Statute
118A. Cash balances from all City funds are pooled into an investment fund and investment income is distributed
on a pro-rata basis at the end of the year, based on average monthly cash balances. At December 31, 2014, the
maturities of the investments range from 1 day to 7 years, with an average maturity of 2.06 years. Maturities are
not to exceed 7 years unless for a dedicated purpose such as a future bond payment. The average yield to maturity
on the portfolio at December 31, 2014 was 1.10%. It is the City’s practice to hold all instruments to maturity.
Economic Condition and Outlook
The City of Chanhassen, Minnesota, located southwest of the Twin Cities metropolitan area, is situated primarily
in Carver County with a small portion in Hennepin County. The City encompasses an area of 23.79 square miles.
U.S. Highways 169 and 212, as well as State Highways 5, 7, 41 and 101, provide access for commuters coming
into the City from the Twin Cities metropolitan area as well as for residents traveling to work outside the City.
The City’s population estimate as of April 1, 2014 was 24,388. Chanhassen’s residential permits were
approximately the same in 2014 as compared to 2013. In 2014, there were 159 residential permits as compared to
168 in 2013. The total value of all building permits and plan checks in 2014 was $80,591,941. The City
anticipates a two percent growth rate for residential permits.
The City is working with a developer on a 118 acre Lifestyle Center and office/industrial land use is in demand.
The City anticipates two industrial developments in 2015 of approximately 60 acres.
The City did not issue debt in 2014, however as the financial statements will indicate the City maintained strong
financial reserves and continues its practice of utilizing multiple long term financial planning documents.
Accounting System and Budgetary Control
The City's accounting records are maintained on the accrual, or modified accrual basis, as appropriate. Budgetary
control is maintained through the City's accounting and reporting system whereby monthly detail reports of budget
versus actual are provided to all departments with summaries being provided to the City Council. Approval
listings and documentation are provided for the City Council at each semi-monthly meeting for all checks issued
by the City.
In the City's accounting system, careful consideration is given to the adequacy of internal controls. These controls
are designed to provide reasonable, but not necessarily absolute, assurance regarding: (1) the safeguarding of
assets against loss from unauthorized use or disposition and (2) the reliability of financial records for preparing
financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes
that: (1) the cost of control should not exceed the benefits likely to be derived and (2) the evaluation of costs and
benefits requires estimates and judgments by management. All internal control evaluation occurs within the above
framework. We believe the City's internal controls adequately safeguard assets and provide reasonable assurance
of proper recording of financial transactions.
Capital financings for major municipal improvements are provided through (1) improvement bonds, (2) general
obligation bonds, (3) tax increment bonds, or (4) revenue bonds. Internal financing of improvement projects is
usually minimal and only for short periods of time.
Long Term Financial Planning
In 2002, the City undertook an extensive long term financial planning process called “Key Financial Strategies”.
As a part of this process the City developed a long term (5 years) general fund budgeting model. In addition the
City developed annual strategies and measurement tools, both financial and non-financial, to compare our results
from year to year and with other like communities in our area.
These strategies and the long term general fund budget are updated on an annual basis as part of our goal setting
strategies at the beginning of each year. In addition, the City has a 5 year capital improvement plan in place for
infrastructure and equipment, as well as a pavement management plan in place for streets.
The City also undertakes an annual rate study of its Water, Sanitary Sewer, and Storm Water rates. As part of this
process the City projects fund balances and capital improvements to each of the systems for the next twenty years,
and the projected user and connection rates needed for each fund for that same time period.
Certificate of Achievement
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City of Chanhassen for its comprehensive annual
financial report (CAFR) for the fiscal year ended December 31, 2013. The Certificate of Achievement is a
prestigious national award recognizing conformance with the highest standards for preparation of state and local
government financial reports.
In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and
efficiently organized comprehensive annual financial report, whose contents conform to program standards. The
CAFR must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City of Chanhassen has received a
Certificate of Achievement for the last twenty two consecutive years (fiscal years ended 1992 – 2013). We believe
our current report continues to conform to the Certificate of Achievement program requirements and we are
submitting it to GFOA to determine its eligibility for another certificate.
Independent Audit
State law provides that the City may arrange for examination of its books, records, accounts and affairs, or any
part thereof, by the State Auditor, or by Certified Public Accountants. It has been a long-standing policy of the
City to provide for a complete annual audit of City records by Certified Public Accountants. The auditor’s opinion
has been included in this report.
Acknowledgments
We wish to express our appreciation to the members of the City Council for their support in improving the
financial condition of the City. We also want to thank the Finance Department staff and department directors for
their assistance in compiling the information necessary for this report. Finally, we wish to acknowledge Redpath
and Company, Ltd. for their assistance in preparing this report.
Respectfully submitted,
Greg Sticha, Finance Director
City of Chanhassen, Minnesota
Organization Chart
Citizens
EnvironmentalSenior
CommissionCommission
PlanningPark & RecreationPark & Recreation
Mayor -Council
CommissionCommission
Economic
Development
Authority
Administration
Law
EnforcementPublicCommunityParks and
Finance
& FireWorksDevelopmentRecreation
Administration
CITY OF CHANHASSEN, MINNESOTA
ORGANIZATION
December 31, 2014
Term Expires
Mayor:
Tom Furlong12/31/14
Council Members:
Bethany Tjornhom12/31/16
Vicki Erns12/31/14
t
Jerry McDonald12/31/16
Denny Laufenburge12/31/14
r
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
II. FINANCIAL SECTION
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INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Chanhassen, Minnesota
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund and the aggregate remaining fund information of the City
of Chanhassen, Minnesota, as of and for the year ended December 31, 2014, and the related notes to
the financial statements, which collectively comprise the City of Chanhassen, Minnesota’s basic
financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether due
to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the entity’s preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express
no such opinion. An audit also includes evaluating the appropriateness of accounting policies used
and the reasonableness of significant accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major
fund and the aggregate remaining fund information of the City of Chanhassen, Minnesota, as of
December 31, 2014, and the respective changes in financial position, and, where applicable, cash
flows thereof for the year then ended in accordance with accounting principles generally accepted
in the United States of America.
Report on Summarized Comparative Information
We have previously audited the City of Chanhassen, Minnesota’s 2013 financial statements, and we
expressed an unmodified audit opinion on the respective financial statements of the governmental
activities, the business-type activities, each major fund and the aggregate remaining fund
information in our report dated May 27, 2014. In our opinion, the summarized comparative
information presented herein as of and for the year ended December 31, 2013 is consistent, in all
material respects, with the audited financial statements from which it has been derived.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, the budgetary comparison information and the schedule of
funding progress, as listed in the table of contents, be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by
the Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of
America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to express an
opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Chanhassen, Minnesota’s basic financial statements. The
introductory section, combining and individual nonmajor fund financial statements and schedules,
statistical section and other information, are presented for purposes of additional analysis and are
not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and schedules are the
responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the basic financial statements. Such information has
been subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the
basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the combining and
individual nonmajor fund financial statements and schedules are fairly stated in all material respects
in relation to the basic financial statements as a whole.
The introductory section, statistical section and other information have not been subjected to the
auditing procedures applied in the audit of the basic financial statements and, accordingly, we do
not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated May 19,
2015, on our consideration of the City of Chanhassen, Minnesota’s internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts,
and grant agreements and other matters. The purpose of that report is to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing Standards
in considering the City of Chanhassen, Minnesota’s internal control over financial reporting and
compliance.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
May 19, 2015
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MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Chanhassen, Minnesota (the City), we offer readers of the City’s
financial statements this narrative overview and analysis of the financial activities of the City for
the fiscal year ended December 31, 2014. We encourage readers to consider the information
presented here in conjunction with additional information that we have furnished in our letter of
transmittal, which can be found in the introductory section of this report.
Financial Highlights
The assets of the City exceeded its liabilities at the close of the most recent fiscal year by
$156,659,100 (net position). Of this amount, $24,344,973 (unrestricted net position) may be
used to meet the City’s ongoing obligations to citizens and creditors in accordance with the
City's fund designations and fiscal policies.
The City’s total net position decreased by $2,083,670.
As of the close of the current fiscal year, governmental funds reported combined ending fund
balances of $18,099,214. Of this amount, $5,724,419 is restricted by external constraints
established by creditors, grantors, contributors, or by state statutory provisions.
At the end of the current fiscal year, the General Fund had a fund balance of $5,609,065. Of that
amount, $58,333 was in a nonspendable form and the remaining $5,550,732 was unassigned.
Total debt decreased by $10,469,026 during the current fiscal year, from $32,404,287 to
$21,935,261. The City did not issue debt during 2014.
Overview of the Financial Statements
The management’s discussion and analysis is intended to serve as an introduction to the City’s
basic financial statements, which are comprised of three components: 1) government-wide
financial statements, 2) fund financial statements, and 3) notes to the financial statements. This
report also contains other supplementary information in addition to the basic financial statements
themselves.
Government-wide financial statements
. The government-wide financial statements are
designed to provide readers with a broad overview of the City’s finances, in a manner similar to
a private-sector business.
Managements Discussion and Analysis
’
The statement of net position presents information on all of the City’s assets and liabilities, with
the difference between the two reported as net position. Over time, increases or decreases in net
position may serve as a useful indicator of whether the financial position of the City is improving
or deteriorating.
The statement of activities presents information showing how net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues
and expenses are reported in this statement for some items that will only result in cash flows in
future fiscal periods (e.g. uncollected taxes, and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business-type activities). The governmental activities of the City include
general government, public safety, public works, parks and recreation, and community
development. The business-type activities include water, sewer, and surface water management.
The government-wide financial statements can be found on Statements 1 and 2 of this report.
Fund Financial statements
. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The City,
like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements. All of the funds can be divided into three
categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds
. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements focus on near-term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may be
useful in evaluating a government’s near-term financial requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements.
By doing so, readers may better understand the long-term impact of the City's near-term financial
decisions. Both the governmental fund balance sheet and governmental fund statement of
revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
Managements Discussion and Analysis
’
The City maintains five individual major governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of
revenues, expenditures, and changes in fund balances for the following major funds:
General Fund
2009A G.O. Refunding Bonds
Transit Station Assessment Fund
Revolving Assessment Fund
TH101 Improvements – Lyman to Pioneer
Data from the other governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these nonmajor governmental funds is provided in the form of
combining statements elsewhere in this report.
The City adopts an annual appropriated budget for the General Fund and for the Contribution
and CATV special revenue funds. A budgetary comparison statement has been provided for
those funds to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on Statements 3 through 5 of this
report.
Proprietary funds
. The City maintains three enterprise funds as a part of its proprietary fund
type. Enterprise funds are used to report the same functions presented as business-type activities
in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for the following funds:
Water
Sewer
Surface Water Management
The basic proprietary fund financial statements can be found on Statements 6 through 8 of this
report.
Fiduciary funds
. Fiduciary funds are used to account for resources held for benefit of parties
outside the government. Fiduciary funds are not reflected in the government-wide financial
statements because the resources of those funds are not available to support the City’s own
programs. The accounting used for fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statement can be found on Statement 9 of this report.
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 financial statements and
schedules can be found on Statement 11 through 22 of this report.
Government-Wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's financial
position. Assets exceeded liabilities by $156,659,100 at the close of the most recent fiscal year.
The largest portion of the City’s net position ($125,978,680 or 80%) reflects its net investment in
capital assets (e.g. land, buildings, machinery, and equipment) less any related debt used to
acquire those assets that is still outstanding. The City uses these capital assets to provide
services to citizens; consequently, these assets are not available for future spending. Although
the City’s investment in its capital assets is reported net of related debt, it should be noted that
the resources needed to repay this debt must be provided from other sources, since the capital
assets themselves cannot be used to liquidate these liabilities.
City of Chanhassen, Minnesota's Net Position
Governmental ActivitiesBusiness-Type ActivitiesTotals
201420132014201320142013
Assets:
Current and other assets$24,263,441$28,120,653$12,178,258$17,060,623$36,441,699$45,181,276
Capital assets83,590,48386,805,31063,026,86964,073,290146,617,352150,878,600
Total assets$107,853,924$114,925,963$75,205,127$81,133,913$183,059,051$196,059,876
Liabilities:
Long-term liabilities outstanding$12,707,168$16,894,021$10,218,055$16,485,291$22,925,223$33,379,312
Other liabilities3,066,4653,221,961408,263715,8333,474,7283,937,794
Total liabilities$15,773,633$20,115,982$10,626,318$17,201,124$26,399,951$37,317,106
Net position:
Net investment in capital assets$71,867,072$71,260,946$54,111,608$52,541,451$125,978,680$123,802,397
Restricted6,335,4479,824,330 - - 6,335,4479,824,330
Unrestricted13,877,77213,724,70510,467,20111,391,33824,344,97325,116,043
Total net position$92,080,291$94,809,981$64,578,809$63,932,789$156,659,100$158,742,770
Managements Discussion and Analysis
’
$6,335,447 of the City’s net position represents resources that are subject to external restrictions
on how they may be used. The remaining balance of unrestricted net position ($24,344,973) may
be used to meet ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in all three
categories of net position, both for the City as a whole, as well as for its separate governmental
and business-type activities.
Governmental Activities
Total net position of the governmental activities decreased $2,729,690, or 3%. The components
of net position increased or decreased as follows:
Net investment in capital assets increased $606,126 due to decreases in debt related to
capital assets exceeding decreases in capital asset balances.
Restricted net position decreased $3,488,883. This decrease is primarily due to decreases
in amounts restricted for debt service (a $3.5 million principal payment was made on the
2009A G.O. Refunding Bond) and amounts restricted for tax increment (TIF #8
Presbyterian Homes with a $570,000 balance was decertified).
Unrestricted net position increased $153,067, or 1%. This relatively minor increase
occurred due to a variety of reasons.
Managements Discussion and Analysis
’
Business-Type Activities
The net position of the City’s business-type activities increased by $646,020, or 1%, primarily
because capital contributions such as contributed capital assets and connection charges exceeded
operating losses. Net investment in capital assets increased $1,570,157 while unrestricted net
position decreased $924,137. This occurred because unrestricted assets were used to pay off
$1,575,000 of water revenue bonds (capital related debt) ahead of the scheduled due dates.
City of Chanhassen, Minnesota's Changes in Net Position
Governmental ActivitiesBusiness-Type ActivitiesTotals
201420132014201320142013
Revenues:
Program revenues:
Charges for services$2,941,522$3,609,822$5,684,650$5,803,976$8,626,172$9,413,798
Operating grants and contributions532,337472,298210,85763,112743,194535,410
Capital grants and contributions3,296,74810,718,9992,633,7932,852,4375,930,54113,571,436
General revenues:
Property taxes10,482,27310,059,324 - - 10,482,27310,059,324
Tax increment collections307,940545,906 - - 307,940545,906
Grants and contributions not
restricted to specific programs19,73619,941 - - 19,73619,941
Unrestricted investment earnings183,602(14,764)134,533(776)318,135(15,540)
Special item - sale of public works building - - - - - -
Gain on sale of capital assets191,75537,720 - - 191,75537,720
Total revenues17,955,91325,449,2468,663,8338,718,74926,619,74634,167,995
Expenses:
General government3,099,0042,630,405 - - 3,099,0042,630,405
Public safety3,416,0883,313,694 - - 3,416,0883,313,694
Public works9,604,52514,224,453 - - 9,604,52514,224,453
Parks and recreation3,062,5922,919,183 - - 3,062,5922,919,183
Community development1,043,848523,651 - - 1,043,848523,651
Interest on long-term debt465,935588,352 - - 465,935588,352
Water - - 3,347,9654,702,6863,347,9654,702,686
Sewer - - 3,171,6963,548,2003,171,6963,548,200
Surface water management - - 1,491,7631,334,1731,491,7631,334,173
Total expenses 20,691,99224,199,7388,011,4249,585,05928,703,41633,784,797
Increase (decrease) in net position before transfers(2,736,079)1,249,508652,409(866,310)(2,083,670)383,198
Transfers6,389307,596(6,389)(307,596) - -
Change in net position(2,729,690)1,557,104646,020(1,173,906)(2,083,670)383,198
Net position - beginning94,809,98193,252,87763,932,78965,106,695158,742,770158,359,572
Net position - ending$92,080,291$94,809,981$64,578,809$63,932,789$156,659,100$158,742,770
Managements Discussion and Analysis
’
Governmental Activities
Revenues
Revenues for the governmental activities decreased by $7,493,333, or 29%. Capital grants and
contributions decreased by $7,422,251 as compared to 2013 due to improvements made to TH
101 at Pleasant View Road and Lyman Boulevard to Pioneer Trail (approximately $5.2 million).
In addition, there was $2.1 million less in special assessment collections as compared to the
previous year.
Expenses
Expenses for the governmental activities decreased by $3,507,746, or 14%. The decrease is
largely due to the same project noted above (TH 101, from Lyman Boulevard to Pioneer Trail).
Below are specific graphs which provide comparisons of the governmental activities revenues
and expenses:
Governmental Activities -Revenues
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Managements Discussion and Analysis
’
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Business-Type Activities
Revenues
Revenues for the business-type activities decreased by $54,916, or 1%. There were no
significant items that contributed to this decrease.
Expenses
Expenses for business-type activities decreased by $1,573,635, or 16%. The majority of the
decrease was due to the purchase and installation of new radio read units for the City’s utility
billing system during 2013.
Managements Discussion and Analysis
’
Below are specific graphs showing the business-type activities revenue and expense
comparisons:
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Business-TypeActivities -Revenue
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Managements Discussion and Analysis
’
Financial Analysis of the Government's Funds
Governmental Funds
. The focus of the City’s governmental funds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the City’s financing requirements. In particular, unrestricted fund balance may serve
as a useful measure of a government’s net resources available for spending at the end of the
fiscal year.
At the end of the current fiscal year, the City’s governmental funds reported combined ending
fund balances of $18,099,214. Approximately 32% of this total amount ($5,724,419) constitutes
fund balance restricted by external constraints established by creditors, grantors, contributors, or
by state statutory provisions. $1,347,908 of fund balance is not in a spendable form, $5,951,507
has been assigned, and $5,075,380 is unassigned.
The General Fund balance increased by $317,740 in 2014. The increase in fund balance was
attributable to additional revenues not budgeted for as follows: excess tax increment of
$130,000, building permit revenue exceeding budget by $260,000 and a land sale of $280,000.
The 2009A G.O. Refunding Bonds debt service fund balance decreased by $3,192,717 due to a
$3.5 million bond payment made in 2014.
The Transit Station Assessment Fund balance increased by $92,582 due to the collection of
special assessments. These collections allowed the fund to pay $92,582 towards an interfund
loan owed to the Water Fund.
The Revolving Assessment Fund balance decreased by $146,082. The majority of the decrease
is due to a slightly larger street reconstruction project as compared to previous years.
The TH101 Improvements – Lyman to Pioneer Fund balance decreased by $479,781 due to
expending project funds which were transferred into the fund during 2013.
The nonmajor special revenue funds increased by $109,396 in 2014. This increase was primarily
due to the creation of a Cemetery Fund and Cable TV franchise fee revenues exceeding
expenses.
The nonmajor debt service funds increased by $25,492 in 2014. There were no significant items
that accounted for this increase.
The nonmajor capital project funds decreased by $233,816. This decrease was due to the closing
and decertification of TIF District #8 (Presbyterian Homes).
Managements Discussion and Analysis
’
Proprietary funds
. The City’s proprietary funds provide the same type of information found in
the government-wide financial statements, but in more detail.
The unrestricted net position in the respective proprietary funds is $5,091,624 (Water),
$4,216,593 (Sewer) and $1,158,984 (Surface Water Management). The Water Fund had an
increase in net position in 2014 of $838,796 due to capital contributions such as capital assets
and connection charges exceeding operating losses. The Sewer and Surface Water Management
Funds each had a decrease in net position in 2014 of $60,264 and $132,512, respectively.
Budgetary Highlights
General Fund
There were no budget amendments to the General Fund in 2014.
Budgetary Variances – Revenues
The positive General Fund revenue variance of $538,063 was mostly due to excess tax increment
of $130,000, building permit revenue exceeding budget by $260,000 and a land sale of $280,000.
Budgetary Variances – Expenses
Expenses for the General Fund had a negative variance of $58,060. The variance was less than
.6% of the entire General Fund budget. This insignificant variance was primarily due to large
snow events in early 2014.
Managements Discussion and Analysis
’
Capital Asset and Debt Administration
Capital assets
. The City’s investment in capital assets for its governmental and business-type
activities as of December 31, 2014, amounts to $146,617,352 (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 being depreciated:
Land$19,792,789$ - ($535,972)$19,256,817
Construction in progress1,961,1771,690,948(1,007,674)2,644,451
Permanent easements922,670233,280 - 1,155,950
Total capital assets not being depreciated22,676,6361,924,228(1,543,646)23,057,218
Capital assets being depreciated:
Buildings and structures22,858,7597,115 - 22,865,874
Machinery and equipment8,308,887474,046(238,300)8,544,633
Temporary easements12,931 - - 12,931
Other improvements 6,680,735476,883 - 7,157,618
Infrastructure112,664,246479,114 - 113,143,360
Total capital assets being depreciated150,525,5581,437,158(238,300)151,724,416
Less accumulated depreciation for:
Buildings and structures6,149,264559,807 - 6,709,071
Machinery and equipment5,721,355477,023(178,640)6,019,738
Temporary easements6,0176,915 - 12,932
Other improvements 2,669,326286,930 - 2,956,256
Infrastructure71,850,9223,642,232 - 75,493,154
Total accumulated depreciation86,396,8844,972,907(178,640)91,191,151
Governmental activities capital assets - net$86,805,310($1,611,521)($1,603,306)$83,590,483
Managements Discussion and Analysis
’
BeginningEnding
Primary Government
BalanceIncreaseDecreaseBalance
Business-type activities:
Capital assets not being depreciated:
Land$2,072,635$4,400$ - $2,077,035
Construction in progress2,698,8161,152,250(2,250,844)1,600,222
Permanent easements835,483320,984 - 1,156,467
Total capital assets not being depreciated5,606,9341,477,634(2,250,844)4,833,724
Capital assets being depreciated:
Buildings and structures12,445,429 - - 12,445,429
Machinery and equipment1,419,697138,983(39,006)1,519,674
Temporary easements34,728 - (34,728) -
Other improvements 101,611,9322,865,587(35,955)104,441,564
Total capital assets being depreciated115,511,7863,004,570(109,689)118,406,667
Less accumulated depreciation for:
Buildings and structures1,494,163248,918 - 1,743,081
Machinery and equipment924,17279,045(33,449)969,768
Temporary easements34,728 - (34,728) -
Other improvements 54,592,3672,944,261(35,955)57,500,673
Total accumulated depreciation57,045,4303,272,224(104,132)60,213,522
Business-type activities capital assets - net64,073,2901,209,980(2,256,401)63,026,869
Total capital assets - net$150,878,600($401,541)($3,859,707)$146,617,352
Additional information on the City’s capital assets can be found in Note 5.
Governmental Activities Capital Assets.
There was a decrease in capital assets due to the
reduction in depreciable assets (current year depreciation expense exceeded current year
additions).
Business-Type Activities Capital Assets.
There was a decrease in capital assets due to the
reduction in depreciable assets (current year depreciation expense exceeded current year
additions).
Long-term debt
. At the end of the current fiscal year, the City had total bonds payable
outstanding of $21,935,261, a decrease of $10,469,026 from 2013. The majority of the decrease
was due to the City making a large payment of $3.5 million towards the 2009A G.O. Refunding
Bonds. In addition, the 2004B Water Revenue Bonds had $3.575 million in cash from escrow
used to defease the old debt issuance, as well as an additional $1.575 million in funds to pay off
all remaining principal and interest related to the debt.
The balance of the bonds payable outstanding is comprised of $9,550,000 in general obligation
bonds, $1,705,000 for special assessment debt which is supported in part by special assessments,
$9,905,000 of revenue bonds which financed capital investments for the water, sewer, and
surface water management operations, $635,000 in tax increment bonds and an unamortized
bond premium of $140,261.
Managements Discussion and Analysis
’
Additional long-term debt in the amount of $964,431 for compensated absences was also
outstanding at the end of 2014.
City of Chanhassen, Minnesota’s Outstanding Debt
Governmental ActivitiesBusiness-Type ActivitiesTotals
201420132014201320142013
General obligation bonds$9,550,000$10,155,000$ - $ - $9,550,000$10,155,000
Revenue bonds - - 9,905,00016,170,0009,905,00016,170,000
Tax increment bonds635,000705,000 - - 635,000705,000
General improvement bonds 1,705,0005,220,000 - - 1,705,0005,220,000
Bond premium - - 140,261154,287140,261154,287
Compensated absences791,637794,233172,794161,004964,431955,237
Total$12,681,637$16,874,233$10,218,055$16,485,291$22,899,692$33,359,524
The City did not issue debt in 2014. However as the financial statements will indicate, the City
maintained strong financial reserves and continues its practice of utilizing multiple long term
financial planning documents. The City’s bond rating had previously been reaffirmed in 2012 by
Standard & Poor’s when the City issued the G.O. Water and Sewer Revenue Bonds of 2012A.
The City of Chanhassen is one of approximately 15 communities in the State of Minnesota to
have an AAA bond rating from either Standard & Poor’s or Moody’s.
State statutes limit the amount of general obligation debt a Minnesota city may issue to 3% of the
total estimated market value. The current debt limitation for the City is $98,838,150. Of the
City's outstanding debt, $8,030,953 is counted within the statutory limitation.
Additional information on the City’s long-term debt can be found in Note 6.
Requests for Information.
This financial report is designed to provide a general overview of
the City of Chanhassen, Minnesota’s finances for all those with an interest in the government’s
finances. Questions concerning any of the information provided in this report or requests for
additional financial information should be addressed to the Director of Finance, 7700 Market
Boulevard, P.O. Box 147, Chanhassen, Minnesota 55317.
BASIC FINANCIAL STATEMENTS
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CITY OF CHANHASSEN, MINNESOTA
Statement 1
STATEMENT OF NET POSITION
December 31, 2014
With Comparative Totals For December 31, 2013
Primary Government
GovernmentalBusiness-TypeTotals
Assets:ActivitiesActivities20142013
Cash and investments$18,543,927$10,223,079$28,767,006$32,663,984
Cash with escrow agent - - - 3,670,439
Accrued interest receivable72,15148,714120,865118,338
Due from other governmental units1,218,063104,5851,322,6482,280,276
Accounts receivable - net138,3601,115,3691,253,7291,288,312
Property taxes receivable164,003 - 164,003154,009
Prepaid items60,33312,35172,68418,313
Inventories - at cost - 36,32236,32245,277
Internal balances(466,933)466,933 - -
Contract for deed receivable1,327,053 - 1,327,0531,372,668
Special assessments receivable3,206,484170,9053,377,3893,569,660
Capital assets (net of accumulated depreciation):
Nondepreciable23,057,2184,833,72427,890,94228,283,570
Depreciable60,533,26558,193,145118,726,410122,595,030
Total assets107,853,92475,205,127183,059,051196,059,876
Liabilities:
Accounts payable440,413131,601572,014646,203
Due to other governmental units34,226106,704140,930134,955
Salaries payable163,44134,551197,992167,399
Contracts payable559,34156,782616,1231,274,818
Accrued interest payable188,94978,625267,574420,229
Unearned revenue1,680,095 - 1,680,0951,294,190
Compensated absences payable:
Due within one year86,17318,810104,98365,952
Due in more than one year705,464153,984859,448889,285
Other post employment benefits payable:
Due in more than one year25,531 - 25,53119,788
Bonds payable:
Due within one year1,250,000789,0262,039,0268,894,026
Due in more than one year10,640,0009,256,23519,896,23523,510,261
Total liabilities15,773,63310,626,31826,399,95137,317,106
Net position:
Net investment in capital assets71,867,07254,111,608125,978,680123,802,397
Restricted for:
Debt service3,441,810 - 3,441,8106,595,927
Park improvements1,751,739 - 1,751,7391,714,972
Tax increment purposes965,809 - 965,8091,347,593
Other purposes176,089 - 176,089165,838
Unrestricted13,877,77210,467,20124,344,97325,116,043
Total net position$92,080,291$64,578,809$156,659,100$158,742,770
The accompanying notes are an integral part of these financial statements.
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2014
With Comparative Totals For The Year Ended December 31, 2013
Program Revenues
Charges For
Functions/ProgramsExpensesServices
Primary government:
Governmental activities:
General government$3,099,004$489,237
Public safety3,416,0881,327,733
Public works9,604,525236,838
Parks and recreation3,062,592847,773
Community development1,043,84839,941
Interest and fees on long-term debt465,935 -
Total governmental activities20,691,9922,941,522
Business-type activities:
Water3,347,9652,573,027
Sewer3,171,6962,472,536
Surface water management1,491,763639,087
Total business-type activities8,011,4245,684,650
Total primary government$28,703,416$8,626,172
The accompanying notes are an integral part of these financial statements.
Statement 2
Net (Expense) Revenue and
Program RevenuesChanges in Net Position
Primary Government
OperatingCapital
Totals
Grants andGrants andGovernmentalBusiness-Type
ContributionsContributionsActivitiesActivities20142013
$600$ - ($2,609,167)$ - ($2,609,167)($2,117,504)
391,939 - (1,696,416) - (1,696,416)(1,570,248)
117,9083,296,748(5,953,031) - (5,953,031)(2,964,791)
21,890 - (2,192,929) - (2,192,929)(1,671,656)
- - (1,003,907) - (1,003,907)(486,068)
- -(465,935) - (465,935)(588,352)
532,3373,296,748(13,921,385)0(13,921,385)(9,398,619)
1,0081,508,992 - 735,062735,062(370,814)
35,984579,952 -(83,224)(83,224)(511,651)
173,865544,849 - (133,962)(133,962)16,931
210,8572,633,7930517,876517,876(865,534)
$743,194$5,930,541(13,921,385)517,876(13,403,509)(10,264,153)
General revenues:
General property taxes10,482,273 - 10,482,27310,059,324
Tax increment collections307,940 - 307,940545,906
Grants and contributions not
restricted to specific programs19,736 -19,73619,941
Unrestricted investment earnings183,602134,533318,135(15,540)
Gain on sale of capital assets191,755 - 191,75537,720
Transfers6,389(6,389) - -
Total general revenues, special item
and transfers11,191,695128,14411,319,83910,647,351
Change in net position(2,729,690)646,020(2,083,670)383,198
Net position - January 194,809,98163,932,789158,742,770158,359,572
Net position - December 31$92,080,291$64,578,809$156,659,100$158,742,770
The accompanying notes are an integral part of these financial statements.
CITY OF CHANHASSEN, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2014
With Comparative Totals For December 31, 2013
368 2009A G.O. 413 Transit Station
General FundRefunding BondsAssessment Fund
Assets:
Cash and investments$5,791,748$1,292,557$ -
Accrued interest receivable20,5216,328 -
Due from other governmental units106,045 - -
Accounts receivable - net39,246 - -
Due from other funds - - -
Property taxes receivable142,8281,591 -
Prepaid items58,333 - -
Contract for deed receivable - - -
Special assessments receivable2,001799,977556,676
Total assets$6,160,722$2,100,453$556,676
Liabilities, Deferred Inflows of Resources, and Fund Balances
Liabilities:
Accounts payable$207,213$ -$ -
Due to other governmental units33,983 - -
Salaries payable161,848 - -
Contracts payable - - -
Due to other funds - - -
Interfund loan payable - -466,933
Unearned revenue74,775 - -
Total liabilities477,8190466,933
Deferred inflows of resources:
Unavailable revenue73,838799,977556,676
Fund balances:
Nonspendable58,333 - -
Restricted -1,300,476 -
Assigned - - -
Unassigned5,550,732 -(466,933)
Total fund balances5,609,0651,300,476(466,933)
Total liabilities, deferred inflows
of resources, and fund balances$6,160,722$2,100,453$556,676
Fund balance reported above
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and therefore are not
reported in the funds.
Other long-term assets are not available to pay for current period expenditures and therefore are
reported as unavailabe revenue in the funds.
Long-term liabilities, including bonds payable, are not due and payable in the current period and
therefore are not reported in the funds.
Net position of governmental activities
The accompanying notes are an integral part of these financial statements.
Statement 3
604 TH101
601 Revolving Improvements -
Assessment FundLyman to PioneerOther Govt'l FundsTotals Governmental Funds
20142013
$1,503,002$ - $9,956,620$18,543,927$21,158,901
8,4452,01934,83872,15173,549
6,2091,061,74644,0631,218,0632,267,115
- - 99,114138,360180,983
545,577 - - 545,577 -
3,023 - 16,561164,003154,009
- - 2,00060,33316,741
- - 1,327,0531,327,0531,372,668
1,757,769 - 90,0613,206,4843,456,202
$3,824,025$1,063,765$11,570,310$25,275,951$28,680,168
$300$20,754$212,146$440,413$549,212
- 243 - 34,22627,927
- - 1,593163,441139,443
41,810413,140104,391559,3411,017,910
- 530,62714,950545,577 -
- - - 466,933559,515
- 87,4051,517,9151,680,0951,245,733
42,1101,052,1691,850,9953,890,0263,539,740
1,760,943 - 95,2773,286,7113,534,028
- - 1,289,5751,347,9081,343,809
- - 4,423,9435,724,4199,181,230
2,020,97211,5963,918,9395,951,5076,366,292
- - (8,419)5,075,3804,715,069
2,020,97211,5969,624,03818,099,21421,606,400
$3,824,025$1,063,765$11,570,310$25,275,951$28,680,168
$18,099,214$21,606,400
83,590,48386,805,310
3,286,7113,534,028
(12,896,117)(17,135,757)
$92,080,291$94,809,981
The accompanying notes are an integral part of these financial statements.
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2014
With Comparative Totals For The Year Ended December 31, 2013
368 2009A G.O. 413 Transit Station
General FundRefunding BondsAssessment Fund
Revenues:
General property taxes$7,785,160$233,800$ -
Tax increment collections - - -
Licenses and permits1,264,263 - -
Intergovernmental373,397 - -
Special assessments - 119,059127,857
Charges for services607,764 - -
Fines and forfeits100,516 - -
Investment earnings54,14016,032 -
Net change in fair value of investments(1,919)(568) -
Contributions and donations22,690 - -
Refunds and reimbursements69,280 - -
Other191,721 - -
Total revenues10,467,012 368,323 127,857
Expenditures:
Current:
General government2,033,2775,000 -
Public safety3,141,772 - -
Public works2,390,991 - -
Parks and recreation1,980,862 - -
Community development440,107 - -
Capital outlay:
General government - - -
Public safety - - -
Public works - - -
Parks and recreation - - -
Decertification of TIF district - - -
Debt service:
Principal - 3,515,000 -
Interest and paying agent fees - 104,325 -
Total expenditures9,987,009 3,624,325 0
Revenues over (under) expenditures480,003 (3,256,002)127,857
Other financing sources (uses):
Sale of capital assets288,547 - -
Transfers in - 63,285 -
Transfers out(450,810) - (35,275)
Total other financing sources (uses)(162,263)63,285 (35,275)
Net change in fund balance317,740 (3,192,717)92,582
Fund balance - January 15,291,3254,493,193(559,515)
Fund balance - December 31$5,609,065$1,300,476($466,933)
The accompanying notes are an integral part of these financial statements.
Statement 4
604 TH101
601 Revolving Improvements -
Assessment FundLyman to PioneerOther Govt'l FundsTotals Governmental Funds
20142013
$444,410$ - $2,025,980$10,489,350$10,176,483
- - 307,940307,940545,906
- - 427,3711,691,6342,113,770
- 1,983,950195,7152,553,0627,971,339
596,335 - 11,715854,9663,193,078
- - 190,814798,578907,414
- - - 100,51699,984
22,2785,32892,573190,351172,964
(790)(189)(3,283)(6,749)(187,728)
- - 44,22866,91833,159
- - 8,59177,871235,363
- - 73,398265,119259,703
1,062,233 1,989,089 3,375,042 17,389,556 25,521,435
- - 312,1602,350,4372,274,640
- - 116,5913,258,3633,179,446
148,4452,279,156533,6295,352,22110,628,140
25,080 - 158,7612,164,7032,002,604
- - 24,180464,287522,538
- - 34,08034,08087,707
- - 23,98023,98074,144
2,204,025438,912251,3002,894,2372,482,728
10,332 - 474,775485,107627,214
- - 569,760569,760 -
- - 675,0004,190,0001,590,000
- - 414,397518,722599,487
2,387,882 2,718,068 3,588,613 22,305,897 24,068,648
(1,325,649)(728,979)(213,571)(4,916,341)1,452,787
- - 12,984301,531 -
1,179,567249,198291,6691,783,719888,711
- - (190,010)(676,095)(43,988)
1,179,567 249,198 114,643 1,409,155 844,723
(146,082)(479,781)(98,928)(3,507,186)2,297,510
2,167,054491,3779,722,96621,606,40019,308,890
$2,020,972$11,596$9,624,038$18,099,214$21,606,400
The accompanying notes are an integral part of these financial statements.
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, 2014
With Comparative Totals For The Year Ended December 31, 2013
20142013
Amounts reported for governmental activities in the
statement of activities (Statement 2) are different because:
Net changes in fund balances - total governmental funds (Statement 4)($3,507,186)$2,297,510
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.(1,535,503)(1,763,884)
The net effect of various miscellaneous transactions involving capital assets
(i.e. sales, trade-ins and donations) is to increase (decrease) net position.(1,679,324)1,480,630
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds.(247,317)(2,089,946)
The issuance of long-term debt (e.g., bonds, leases) provides current financial
resources to governmental funds, while the repayment of the principal of
long-term debt consumes the current financial resources of governmental funds.
Neither transaction, however, has any effect on net position. This amount is the
net effect of these differences in the treatment of long-term debt and related items.4,190,0001,590,000
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.49,64042,794
Change in net position of governmental activities (Statement 2)($2,729,690)$1,557,104
The accompanying notes are an integral part of these financial statements.
CITY OF CHANHASSEN, MINNESOTA
Statement 6
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2014
With Comparative Totals For December 31, 2013
Surface Water
WaterSewerManagementTotals
Assets:20142013
Current assets:
Cash and cash equivalents$4,799,577$4,430,348$993,154$10,223,079$11,505,083
Cash with escrow agent - - - - 3,670,439
Accrued interest receivable24,29919,3875,02848,71444,789
Due from other governmental units1,12718,82984,629104,58513,161
Accounts receivable - net488,752485,851140,7661,115,3691,107,329
Prepaid items4,9904,8902,47112,3511,572
Water meter inventory36,322 - - 36,32245,277
Interfund loan receivable466,933 - - 466,933559,515
Special assessments receivable112,8994,721 - 117,62036,321
Connection charges receivable40,95812,327 - 53,28577,137
Total current assets5,975,857 4,976,353 1,226,048 12,178,258 17,060,623
Noncurrent assets:
Capital assets:
Land1,370,974145,550560,5112,077,0352,072,635
Easements455,785350,341350,3411,156,467870,211
Buildings and structures12,445,429 - - 12,445,42912,445,429
Machinery and equipment859,411642,28017,9831,519,6741,419,697
Other improvements45,691,83733,240,22725,509,500104,441,564101,611,932
Construction in progress1,104,507151,350344,3651,600,2222,698,816
Total capital assets61,927,943 34,529,748 26,782,700 123,240,391 121,118,720
Less: Allowance for depreciation(25,692,292)(21,148,340)(13,372,890)(60,213,522)(57,045,430)
Net capital assets36,235,65113,381,40813,409,81063,026,86964,073,290
Total assets42,211,50818,357,76114,635,85875,205,12781,133,913
Liabilities:
Current liabilities:
Accounts payable101,28112,34217,978131,60196,991
Due to other governmental units22,22477,0357,445106,704107,028
Salaries payable17,43110,6416,47934,55127,956
Contracts payable28,39128,391 - 56,782256,908
Accrued interest payable75,8872,738 - 78,625178,493
Unearned revenue - - - - 48,457
Compensated absences payable - due within one year8,0576,9253,82818,81011,116
Bonds payable - due within one year729,02660,000 - 789,0264,704,026
Total current liabilities982,297 198,072 35,730 1,216,099 5,430,975
Noncurrent liabilities:
Compensated absences payable -
due in more than one year 65,96256,68831,334153,984149,888
Bonds payable - due in more than one year8,751,235505,000 - 9,256,23511,620,261
Total noncurrent liabilities8,817,197 561,688 31,334 9,410,219 11,770,149
Total liabilities9,799,494759,76067,06410,626,31817,201,124
Net position:
Net investment in capital assets27,320,39013,381,40813,409,81054,111,60852,541,451
Unrestricted5,091,6244,216,5931,158,98410,467,20111,391,338
Total net position$32,412,014$17,598,001$14,568,794$64,578,809$63,932,789
The accompanying notes are an integral part of these financial statements.
CITY OF CHANHASSEN, MINNESOTA
Statement 7
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For The Year Ended December 31, 2014
With Comparative Totals For The Year Ended December 31, 2013
Surface Water
WaterSewerManagementTotals
20142013
Operating revenues:
Charges for services$2,441,499$2,396,775$620,150$5,458,424$5,575,159
Penalties and other129,80462,70316,533209,040202,662
Total operating revenues2,571,303 2,459,478 636,683 5,667,464 5,777,821
Operating expenses:
Personal services577,094388,392261,9321,227,4181,182,524
Materials and supplies257,25234,01946,337337,608350,231
Contractual services:
MCES - 1,461,463 - 1,461,4631,398,891
Other421,247214,221360,826996,2941,891,544
Repairs and maintenance286,514108,942369395,825342,222
Depreciation1,497,666952,259822,2993,272,2243,239,142
Total operating expenses3,039,773 3,159,296 1,491,763 7,690,832 8,404,554
Operating income (loss)(468,470)(699,818)(855,080)(2,023,368)(2,626,733)
Nonoperating revenues (expenses):
Investment earnings74,66851,15113,269139,088113,549
Net change in fair value of investments(2,272)(1,813)(470)(4,555)(114,325)
Intergovernmental1,00835,984173,865210,85763,112
Refunds and reimbursements1,72413,0582,40417,18626,155
Interest and fiscal charges(308,192)(6,843) - (315,035)(561,759)
Gain (loss) on disposal of capital assets - (5,557) - (5,557)(618,746)
Total nonoperating revenues (expenses)(233,064)85,980 189,068 41,984 (1,092,014)
Income before contributions and transfers(701,534)(613,838)(666,012)(1,981,384)(3,718,747)
Transfer in 45,275 - - 45,27543,988
Transfer out (738,429)(125,204)(289,266)(1,152,899)(888,711)
Capital contributions:
Contributions of capital assets905,480267,572518,7691,691,8211,217,538
Special assessments179,9967,114 - 187,11070,832
Connection charges1,148,008404,092303,9971,856,0972,101,194
Total contributions and transfers1,540,330553,574533,5002,627,4042,544,841
Change in net position838,796 (60,264)(132,512)646,020 (1,173,906)
Net position - January 131,573,21817,658,26514,701,30663,932,78965,106,695
Net position - December 31$32,412,014$17,598,001$14,568,794$64,578,809$63,932,789
CapitalTransfers -
ContributionsNet
Amounts reported above$3,735,028($1,107,624)
Amounts reported for business-type activities in the
statement of activities are different because:
Transfer in of capital assets from governmental activities(1,101,235)1,101,235
Amounts reported on the statement of activities$2,633,793($6,389)
The accompanying notes are an integral part of these financial statements.
CITY OF CHANHASSEN, MINNESOTA
Statement 8
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2014
With Comparative Totals For The Year Ended December 31, 2013
Surface Water
WaterSewerManagementTotals
20142013
Cash flows from operating activities:
Receipts from customers and users$2,592,519$2,409,762$565,719$5,568,000$5,850,826
Payment to suppliers(878,840)(1,869,503)(410,385)(3,158,728)(3,935,514)
Payment to employees(569,109)(384,212)(255,712)(1,209,033)(1,155,564)
Miscellaneous revenue2,73249,042127,812179,586137,724
Net cash flows provided by operating activities1,147,302205,08927,4341,379,825897,472
Cash flows from noncapital financing activities:
Transfers in45,275 - - 45,27543,988
Transfers out(738,429)(125,204)(289,266)(1,152,899)(888,711)
Decrease in interfund loan receivable92,582 - - 92,58287,341
Net cash flows provided by (used in)
noncapital financing activities(600,572)(125,204)(289,266)(1,015,042)(757,382)
Cash flows from capital and related financing activities:
Acquisition of capital assets(323,936)(375,585)(40,145)(739,666)(638,937)
Connection charges1,165,175410,777303,9971,879,9492,105,127
Special assessment revenue86,72319,088 - 105,81153,666
Principal paid on bonds(6,207,500)(57,500) - (6,265,000)(4,240,000)
Interest and fiscal charges(421,846)(7,082) - (428,928)(503,097)
Net cash flows provided by (used in) capital
and related financing activities(5,701,384)(10,302)263,852(5,447,834)(3,223,241)
Cash flows from investing activities:
Investment earnings71,29548,24911,064130,608(1,929)
Net (decrease) in cash and cash equivalents(5,083,359)117,83213,084(4,952,443)(3,085,080)
Cash and cash equivalents - January 19,882,9364,312,516980,07015,175,52218,260,602
Cash and cash equivalents - December 31$4,799,577 $4,430,348 $993,154 $10,223,079 $15,175,522
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) ($468,470)($699,818)($855,080)($2,023,368)($2,626,733)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Miscellaneous revenue (expense)2,73249,042127,812179,586137,724
Depreciation1,497,666952,259822,2993,272,2243,239,142
Changes in assets and liabilities:
Decrease (increase) in receivables21,216(49,716)(70,964)(99,464)73,005
Decrease (increase) in prepaid items(4,328)(4,228)(2,223)(10,779)13,212
Decrease (increase) in inventory8,955 - - 8,955(21,271)
Increase (decrease) in payables89,531(42,450)5,59052,67182,393
Total adjustments1,615,772 904,907 882,514 3,403,193 3,524,205
Net cash provided by operating activities$1,147,302$205,089$27,434$1,379,825$897,472
Noncash investing, capital and financing activities:
Capital assets in the amount of $905,480 and $544,212 were contributed to the Water Fund in 2014 and 2013, respectively.
Capital assets in the amount of $267,572 and $342,184 were contributed to the Sewer Fund in 2014 and 2013, respectively.
Capital assets in the amount of $518,769 and $331,142 were contributed to the Surface Water Fund in 2014 and 2013, respectively.
The accompanying notes are an integral part of these financial statements.
CITY OF CHANHASSEN, MINNESOTA
Statement 9
STATEMENT OF NET POSITION
FIDUCIARY FUNDS
December 31, 2014
With Comparative Totals For December 31, 2013
Agency Funds
20142013
Assets:
Cash and investments$1,306,003$1,426,193
Liabilities:
Escrow deposits payable$1,306,003$1,426,193
The accompanying notes are an integral part of these financial statements.
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Chanhassen, Minnesota (the City) was incorporated in 1967 and operates under the State of
Minnesota Statutory Plan B form of government. The governing body consists of a five member City council
elected by voters of the City.
The financial statements of the City have been prepared in conformity with accounting principles generally
accepted in the United States of America as applied to governmental units by the Governmental Accounting
Standards Board (GASB). The following is a summary of the significant accounting policies.
A.FINANCIAL REPORTING ENTITY
In accordance with GASB pronouncements and accounting principles generally accepted in the United
States of America, the financial statements of the reporting entity should include those of the City (the
primary government) and its component units. The component unit discussed below is included in the
City’s reporting entity because of the significance of its operational or financial relationships with the
City.
COMPONENT UNITS
In conformity with accounting principles generally accepted in the United States of America, the
financial statements of the component unit have been included in the financial report as a blended
component unit.
Pursuant to the authorization of Minnesota Statutes Section 469.094, on April 28, 1997 the City
transferred to the Economic Development Authority of the City all activities, programs,
operations, and authority of the existing City Housing and Redevelopment Authority (HRA). The
Economic Development Authority (EDA), an entity legally separate from the City, is governed by
a board which is substantially the same as the City Council. The City is in a relationship of
financial benefit or burden with the EDA. Separate financial statements for the EDA are not
prepared.
JOINTLY GOVERNED ORGANIZATIONS
Southwest Area Transit Commission. The City, in conjunction with the Cities of Eden Prairie and
Chaska, has agreed to establish the Southwest Area Transit Commission (the Commission). The
purpose of the Commission is to provide alternative methods of public transit service to the three
cities. The Commission’s board is composed of two commissioners from each of the cities.
Western Area Fire Training Association (WAFTA). The City is a member of a joint powers
group along with ten other communities. WAFTA operates a fire training facility in western
Carver County.
JOINT POWERS AGREEMENT
The Chanhassen Recreation Center is owned by Independent School District No. 112 and operates
under a joint powers agreement between the City and the School District. The ninety-nine year
agreement expires in 2093. According to the terms of the agreement, the City reimburses the
School District 24% of the cost to operate and maintain the facility.
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The government-wide financial statements (i.e., the statement of net position and the statement of
changes in net position) report information on all of the nonfiduciary activities of the primary
government and its component units. Governmental activities, which normally are supported by taxes
and intergovernmental revenues, are reported separately from business-type activities, which rely to a
significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
business-type activity, are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or business-type activity. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or business-type activity and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or business-type
activity. Taxes and other items not included among program revenues are reported instead as general
revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary
funds, even though the latter are excluded from the government-wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate columns
in the fund financial statements.
C.MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues
are recorded when earned and expenses are recorded when a liability is incurred, regardless of the
timing of related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements
imposed by the provider have been met. The City’s only fiduciary funds are agency funds. Agency
funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of
operations.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as
they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current period.
For this purpose, the City considers all revenues, except reimbursement grants, to be available if they
are collected within 60 days of the end of the current fiscal period. Reimbursement grants are
considered available if they are collected within one year of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
However, debt service expenditures, as well as expenditures related to compensated absences and
claims and judgments, are recorded only when payment is due.
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Property taxes, special assessments, intergovernmental revenues, charges for services and interest
associated with the current fiscal period are all considered to be susceptible to accrual and so have
been recognized as revenues of the current fiscal period. Only the portion of special assessments
receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of
the current period. All other revenue items are considered to be measurable and available only when
cash is received by the City.
The City reports the following major governmental funds:
General Fund is the City’s primary operating fund. It accounts for all financial resources of the
general government, except those required to be accounted for in another fund.
2009A General Obligation Improvement Bond Fund (368) accounts for the accumulation of
resources for payment of the general obligation bonds issued to finance utility improvements.
Transit Station Assessment Fund (413) accounts for the interfund loan from the Water Fund to
fund costs associated with the redevelopment of the Dinner Theater Transit Station in TIF #10,
and for the repayment of the special assessment to repay those costs.
Revolving Assessment Fund (601) accounts for the City’s annual street re-construction program.
The individual property owner will pay a portion of the cost of the annual project with
assessments and the City will fund their portion with the reserves created in this fund and an
annual tax levy in future years.
TH101 Improvements – Lyman to Pioneer Fund (604) accounts for the funding sources and costs
of the Trunk Highway 101 improvement project, which includes widening of the highway
between Lyman Boulevard and Pioneer Trail, pedestrian/bicycle trails and a trail underpass.
The City reports the following major proprietary funds:
The Water Fund accounts for the water service charges which are used to finance the water
system operating expenses.
The Sewer Fund accounts for the sewer service charges which are used to finance the sanitary
sewer system operating expenses.
The Surface Water Management Fund accounts for the surface water charges which are used to
finance the surface water system operating expenses.
Additionally, the City reports the following fund type:
Agency funds account for the assets of various escrow deposits and the Moon Valley Restoration
Funds held by the City in a trustee capacity or as an agent.
As a general rule the effect of interfund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are transactions that would be treated as revenues,
expenditures or expenses if they involved external organizations, such as buying goods and services or
payments in lieu of taxes, are similarly treated when they involve other funds of the City. Elimination
of these charges would distort the direct costs and program revenues reported for the various functions
concerned.
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions, including special assessments. Internally dedicated resources are reported as general
revenues rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary Funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenues
of the water, sewer, and surface water management enterprise funds are charges to customers for sales
and services. Operating expenses for enterprise funds include the cost of sales and services,
administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting
this definition are reported as nonoperating revenues and expenses.
D.BUDGETS
Budgets are adopted on a basis consistent with accounting principles generally accepted in the United
States of America. Annual appropriated budgets are adopted for the General Fund and for the
Contribution and CATV Special Revenue Funds.
Budgeted amounts are reported as originally adopted, or as amended by the City Council. There were
no budget amendments during 2014. Budgeted expenditure appropriations lapse at year end.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the appropriation, is not
employed by the City because it is at present not considered necessary to assure effective budgetary
control or to facilitate effective cash management.
E.LEGAL COMPLIANCE - BUDGETS
The City follows these procedures in establishing the budgetary data reflected in the financial
statements:
1. The City Manager submits to the City Council a proposed operating budget for the fiscal year
commencing the following January 1. The operating budget includes proposed expenditures
and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution.
4. Management may authorize transfer of budgeted amounts between departments within any
fund. All budget amendments between funds must be approved by the City Council. The
legal level of budgetary control is at the fund level. Budgetary monitoring, by departments or
divisions and by category, is required by City policy.
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
5. Formal budgetary integration is employed as a management control device during the year for
the General Fund and for the Contribution and CATV Special Revenue Funds. Formal
budgetary integration is not employed for Debt Service Funds because effective budgetary
control is alternatively achieved through general obligation bond indenture provisions.
Budgetary control for Capital Projects Funds is accomplished through the use of project
controls.
During 2014, the General Fund had expenditures of $9,987,009, which exceeded budgeted
expenditures of $9,928,949 by $58,060. The Contribution Special Revenue Fund had expenditures of
$34,488, which exceeded budgeted expenditures of $30,000 by $4,488.
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.
Investments are stated at fair value, based upon quoted market prices, except for investments in 2a7-
like external investment pools, which are stated at amortized cost. Investment income is accrued at the
balance sheet date.
For purposes of the statement of cash flows, the Proprietary Funds consider all highly liquid
investments with a maturity of three months or less when purchased to be cash equivalents. All of the
cash and investments allocated to the Proprietary Fund types have original maturities of 90 days or
less. Therefore, the entire balance in such fund types is considered cash equivalents.
G.RECEIVABLES
Property taxes and special assessment receivables have been reported net of estimated uncollectible
accounts (See Note 1 H and I). Because utility bills are considered liens on property, no estimated
uncollectible amounts are established. Uncollectible amounts are not material for other receivables
and have not been reported.
H.PROPERTY TAX REVENUE RECOGNITION
The City Council annually adopts a tax levy and certifies it to the County in December
(levy/assessment date) of each year for collection in the following year. The County is responsible for
billing and collecting all property taxes for itself, the City, the local School District and other taxing
authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that
date. Real property taxes are payable (by property owners) on May 15 and October 15 of each
calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each
year. These taxes are collected by the County and remitted to the City on or before July 15 and
December 15 of the same year. Delinquent collections for November and December are received the
following January. The City has no ability to enforce payment of property taxes by property owners.
The County possesses this authority.
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The City recognizes property tax revenue in the period for which taxes were levied. Uncollectible
property taxes are not material and have not been reported.
GOVERNMENT FUND FINANCIAL STATEMENTS
The City recognizes property tax revenue when it becomes both measurable and available to finance
expenditures of the current period. In practice, current and delinquent taxes and State credits received
by the City in July, December and January are recognized as revenue for the current year. Taxes
collected by the County by December 31 (remitted to the City the following January) and taxes and
credits not received at year end are classified as delinquent and due from County taxes receivable. The
portion of delinquent taxes not collected by the City in January are fully offset by deferred inflows of
resources because they are not available to finance current expenditures.
The City's property tax revenue includes payments from the Metropolitan Revenue Distribution (Fiscal
Disparities Formula) per State Statute 473F. This statute provides a means of spreading a portion of
the taxable valuation of commercial/industrial real property to various taxing authorities within the
defined metropolitan area. The valuation "shared" is a portion of commercial/industrial property
valuation growth since 1971.
I.SPECIAL ASSESSMENT REVENUE RECOGNITION
Special assessments are levied against benefited properties for the cost or a portion of the cost of
special assessment improvement projects in accordance with State Statutes. These assessments are
collectible by the City over a term of years usually consistent with the term of the related bond issue.
Collection of annual installments (including interest) is handled by the County Auditor in the same
manner as property taxes. Property owners are allowed to (and often do) prepay future installments
without interest or prepayment penalties.
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that
property until full payment is made or the amount is determined to be excessive by the City Council or
court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit
sale and the first proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the
City in payment of delinquent special assessments. Generally, the City will collect the full amount of
its special assessments not adjusted by City Council or court action. Pursuant to State Statutes, a
property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or
seasonal recreational land in which event the property is subject to such sale after five years.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The City recognizes special assessment revenue in the period that the assessment roll was adopted by
the City Council. Uncollectible special assessments are not material and have not been reported.
GOVERNMENT FUND FINANCIAL STATEMENTS
Revenue from special assessments is recognized by the City when it becomes measurable and
available to finance expenditures of the current fiscal period. In practice, current and delinquent
special assessments received by the City are recognized as revenue for the current year. Special
assessments are collected by the County and remitted by December 31 (remitted to the City the
following January) and are also recognized as revenue for the current year. All remaining delinquent,
deferred and special deferred assessments receivable in governmental funds are completely offset by
deferred inflows of resources.
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
J.INVENTORIES
GOVERNMENTAL FUNDS
The original cost of materials and supplies are recorded as expenditures at the time of purchase. These
funds do not maintain material amounts of inventories.
PROPRIETARY FUNDS
Inventories of the Proprietary Funds are stated at cost, which approximates market, using the first-in,
first-out (FIFO) method.
K.PREPAID ITEMS
Certain prepayments to vendors reflect costs applicable to future accounting periods and are recorded
as prepaid items in both government-wide and fund financial statements. Prepaid items are reported
using the consumption method and recorded as expenditures/expenses at the time of consumption.
L.CAPITAL ASSETS
Capital assets, which include property, plant, equipment, infrastructure assets (e.g., roads, trails,
sidewalks, and similar items), and intangible assets such as easements and computer software, are
reported in the applicable governmental or business-type activities columns in the government-wide
financial statements. Capital assets are defined by the City as assets with an initial, individual cost of
more than $5,000 (except for easements which is $10,000) and an estimated useful life in excess of
one year. Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.
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, 2014, no interest was
capitalized in connection with construction in progress.
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Capital assets of the City are depreciated/amortized using the straight line method over the following
estimated useful lives:
Buildings and structures 20 – 50 years
Machinery and equipment (including software) 3 – 30 years
Drainage systems 30 years
Water and sewer lines 30 years
Streets 25 – 50 years
Trails 15 years
Sidewalks 25 years
Other improvements 7 – 40 years
Temporary easements 2 years
M.COMPENSATED ABSENCES
The City compensates all employees upon termination for unused vacation and unused sick time up to
a maximum based upon length of service. The City compensates nonexempt employees for unused
comp time. All vacation pay and comp time is accrued when incurred in the government-wide and
proprietary fund financial statements. A liability for these amounts is reported in governmental funds
only if they have matured, for example, as a result of employee resignations and retirements. In
accordance with the provisions of Statement of Government Accounting Standards No. 16, Accounting
for Compensated Absences, no liability is recorded for nonvesting accumulating rights to receive sick
pay benefits. However, a liability is recognized for that portion of accumulating sick leave benefits
that is vested as severance pay.
N.LONG-TERM OBLIGATIONS
In the government-wide financial statements and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the applicable
governmental activities, business-type activities, or proprietary fund type statement of net position.
Bond premiums and discounts, if material, are amortized over the life of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums and discounts
during the current period. The face amount of debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources while discounts on debt
issuances are reported as other financing uses.
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
O.DEFERRED INFLOWS OF RESOURCES
In addition to liabilities, the statement of financial position reports a separate section for deferred
inflows of resources. This separate financial statement element represents an acquisition of net
position that applies to future periods, and therefore, will not be recognized as an inflow of resources
(revenue) until that time. The government has one type of item, which arises only under a modified
accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the item,
unavailable revenue, is reported only in the governmental fund balance sheet. The governmental
funds report unavailable revenues from the following sources: property taxes, special assessments and
other revenue not collected within 60 days from year-end.
P.FUND BALANCE CLASSIFICATIONS
In the fund financial statements, governmental funds report fund balance in classifications that disclose
constraints for which amounts in those funds can be spent. These classifications are as follows:
Nonspendable - consists of amounts that are not in spendable form, such as prepaid items.
Restricted - consists of amounts related to externally imposed constraints established by creditors,
grantors or contributors; or constraints imposed by state statutory provisions.
Committed - consists of internally imposed constraints. These constraints are established by
Resolution of City Council, and committed amounts cannot be used for any other purpose unless
the City Council removes or changes the specified use by resolution.
Assigned - consistsof internally imposed constraints for the specific purpose of the City’s
intended use. Pursuant to the City’s Fund Balance Policy, the City Manager or Finance Director
are authorized to assign fund balance that reflects the City’s intended use of those funds.
Unassigned - is the residual classification for the general fund and also reflects negative residual
amounts in other funds.
When both restricted and unrestricted resources are available for use, it is the City’s policy to first use
restricted resources, and then use unrestricted resources as they are needed.
When committed, assigned or unassigned resources are available for use, it is the City’s policy to use
resources in the following order; 1) committed 2) assigned and 3) unassigned. The exception to this is
the Park Acquisition and Development Fund (410), where it is the City’s policy to use resources in the
following order; 1) assigned, 2) committed, and 3) restricted.
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Q.INTERFUND TRANSACTIONS
During the course of operations, numerous transactions occur between individual funds for goods
provided or services rendered. Interfund services provided and used are accounted for as revenues,
expenditures or expenses. Transactions that constitute reimbursements to a fund for
expenditures/expenses initially made from it that are properly applicable to another fund, are recorded
as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the
fund that is reimbursed.
The City provides temporary advances to funds that have insufficient cash balances by means of an
advance from another fund. Short-term interfund loans are classified as “due to/from other funds.”
Long-term interfund loans are classified as “interfund loan receivable/payable.” Any residual balances
outstanding between the governmental activities and business-type activities are reported in the
government-wide financial statements as “internal balances.” All other interfund transactions are
reported as transfers.
R.USE OF ESTIMATES
The preparation of financial statements in accordance with generally accepted accounting principles
(GAAP) requires management to make estimates that affect amounts reported in the financial
statements during the reporting period. Actual results could differ from such estimates.
S.COMPARATIVE TOTALS
The basic financial statements and schedules, required supplementary information, and combining and
individual fund financial statements include certain prior-year summarized comparative information in
total but not at the level of detail required for a presentation in conformity with generally accepted
accounting principles. Accordingly, such information should be read in conjunction with the
government’s financial statements for the year ended December 31, 2013, from which the summarized
information was derived.
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
T.RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
1. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND
BALANCE SHEET AND THE GOVERNMENT-WIDE STATEMENT OF NET POSITION
The governmental fund balance sheet includes a reconciliation between fund balances – total
governmental funds and net position– governmental activities as reported in the government-wide
statement of net position. One element of that reconciliation explains that “long-term liabilities,
including bonds payable, are not due and payable in the current period and therefore are not
reported in the funds.” The details of this ($12,896,117) difference are as follows:
Bonds payable($11,890,000)
Accrued interest payable(188,949)
Compensated absences(791,637)
Other post employment benefit payable(25,531)
Net adjustment to decrease fund balances - total governmental
funds to arrive at net position - governmental activities($12,896,117)
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 positionof 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
($1,535,503) difference are as follows:
Capital outlay/construction$3,437,404
Depreciation expense(4,972,907)
Net adjustment to decrease net changes in fund balances - total
governmental funds to arrive at changes in net position of
governmental activities($1,535,503)
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Another element of that reconciliation states that “the net effect of various miscellaneous
transactions involving capital assets (i.e., sales, trade-ins and donations) is to increase (decrease)
net position.” The details of this ($1,679,324) difference are as follows:
Donations of capital assets increase net position in the
statement of activities, but do not appear in the governmental
funds because they are not financial resources$621,919
Transfer of capital assets to Enterprise Funds(1,101,235)
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(1,200,008)
Net adjustment to decrease net changes in fund
balances - total governmental funds to arrive at
changes in net position of governmental activities($1,679,324)
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 ($247,317) difference are as follows:
Unavailable revenue - general property taxes:
At December 31, 2013($76,946)
At December 31, 201469,869
Unavailable revenue - special assessments:
At December 31, 2013(3,451,493)
At December 31, 20143,203,449
.
Other revenue was not available because it was not
collected within 60 days from year-end.
At December 31, 2013(5,589)
At December 31, 201413,393
Net adjustment to decrease net changes in fund balances - total
governmental funds to arrive at changes in net position of
governmental activities($247,317)
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Another element of that reconciliation states that “the issuance of long-term debt (e.g., bonds,
leases) provides current financial resources to governmental funds, while the repayment of the
long-term debt consumes the current financial resources of governmental funds.” Neither
transaction, however, has any effect on net position. The details of this $4,190,000 difference are
as follows:
Principal repayments:
General obligation debt$605,000
General obligation improvement bonds 3,515,000
General obligation tax increment bonds70,000
Net adjustment to increase net changes in fund balances - total
governmental funds to arrive at changes in net position of
governmental activities$4,190,000
Another element of that reconciliation states that “some expenses reported in the statement of
activities do not require the use of current financial resources and therefore are not reported as
expenditures in governmental funds.” The details of this $49,640 difference are as follows:
Compensated absences$2,596
Other post employment benefits(5,743)
Accrued interest52,787
Net adjustment to increase net changes in fund balances - total
governmental funds to arrive at changes in net position of
governmental activities$49,640
Note 2 DEPOSITS AND INVESTMENTS
A. DEPOSITS
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks
authorized by the City Council, all of which are members of the Federal Reserve System.
Custodial Credit Risk – Custodial credit risk is the risk that in the event of a bank failure, the City’s
deposits may not be returned to it. Minnesota Statutes require that insurance, surety bonds or
collateral protect all City deposits. The market value of collateral pledged must equal 110% of
deposits not covered by insurance or bonds. The City has no additional deposit policies addressing
custodial credit risk. As of December 31, 2014, the bank balance of the City’s deposits was insured by
the FDIC or covered by pledged collateral held in the City’s name.
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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, 2014, the carrying amount of the City’s deposits with financial institutions was
$3,439,484.
B. INVESTMENTS
Minnesota Statutes authorize the City to invest in the following:
a) Direct obligations or obligations guaranteed by the United States or its agencies, its
instrumentalities, or organizations created by an act of congress, excluding mortgage-backed
securities defined as high risk.
b) Shares of investment companies registered under the Federal Investment Company Act of 1940
and whose only investments are in securities described in (a) above, general obligation tax-exempt
securities, or repurchase or reverse repurchase agreements.
c) State and local securities as follows:
1)any security which is a general obligation of any state or local government with taxing
powers which is rated “A” or better by a national bond rating service;
2)any security which is a revenue obligation of any state or local government with taxing
powers which is rated “AA” or better by a national bond rating service; and
3)a general obligation of the Minnesota Housing Finance Agency which is a moral obligation of
the State of Minnesota and is rated “A” or better by a national bond rating agency.
d) Bankers acceptance of United States banks.
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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, 2014, the City had the following investments and maturities:
Investment Maturities (in Years)
FairLess
Investment TypeRatingValueThan 11-56-10
4M FundNR$11,257$11,257$ - $ -
Money Market FundsNR2,217,2802,217,280 - -
Brokered Certificates of DepositNR5,185,7701,990,829 2,951,285243,656
Municipal Bonds(1)11,022,3604,494,830 6,113,978413,552
Federal Home Loan Bank NotesAaa2,447,132 1,760,111687,021-
Federal National Mortgage Assn. NotesAaa3,176,938506,113 2,670,825 -
Federal Home Loan Mortgage Corp. NotesAaa1,489,732 1,489,732 - -
Federal Agricultural Mortgage Assn. NotesAaa499,993 - 499,993
-
Resolution Funding Corp. Strip BondsAaa582,398 - 582,398
-
Total$26,632,860$9,220,309$16,068,322$1,344,229
(1) $2,316,810 are rated Aaa, $997,675 are rated Aa1,Total investments$26,632,860
$3,790,102 are rated Aa2, $2,901,143 are rated Aa3 and $1,016,630Deposits3,439,484
are rated A1.Petty cash665
NR - Not Rated Total cash and investments$30,073,009
Classifications above are by maturity date. Some investments listed above have call dates that occur in less than one year.
These amounts are presented in the financial statements as follows:
Cash and investments:
Governmental and business-type (Statement 1)$28,767,006
Fiduciary (Statement 9)1,306,003
Total$30,073,009
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
C. INVESTMENT RISKS
Custodial credit risk – investments – For investments in securities, custodial credit risk is the risk that
in the event of failure of the counterparty to a transaction, the City will not be able to recover the value
of its investment securities that are in the possession of an outside party. Investments in investment
pools and money markets are not evidenced by securities that exist in physical or book entry form, and
therefore are not subject to custodial credit risk disclosures. The City’s investment policy requires the
City’s security broker/dealers to provide its audited financial statements, proof of NASD certification,
proof of state registration, and certification of having read, understood and agreed to comply with the
City’s investment policy. Investments in securities are held by the City’s broker-dealer of which
$2,000,000 is insured through SIPC. Each broker-dealer has provided additional protection by
providing additional insurance. This insurance is subject to aggregate limits applied to all of the
broker-dealer’s accounts.
Interest rate risk – Interest rate risk is the risk that changes in interest rates of debt investments could
adversely affect the fair value of an investment. The City’s investment policy requires the City to
diversify its investment portfolio to eliminate the risk of loss resulting from over concentration of
assets in a specific maturity. The policy also states the City’s investment portfolio will remain
sufficiently liquid to enable the City to meet all operating requirements which might be reasonable,
i.e., not investing in maturities longer than seven years.
Credit Risk – Credit risk is the risk that an issuer or other counterparty to an investment will be unable
to fulfill its obligation to the holder of the investment. State law limits investments to commercial
paper to those rated in the highest quality category by at least two nationally recognized rating
agencies; in any security of the State of Minnesota or any of its municipalities which is rated “A” or
better by a national bond rating service for general obligation and rated “AA” or better for a revenue
obligation; a general obligation of the Minnesota Housing Finance Agency to those rated “A” or better
by a national bond rating agency; mutual funds or money market funds whose investments are
restricted to securities described in MS 118A.04. The City’s investment policy does not place further
restrictions on investment options. The City’s external investment pool is with the 4M fund which is
regulated by Minnesota Statutes and the Board of Directors of the League of Minnesota Cities. The
4M fund is an unrated 2a7-like pool and the fair value of the position in the pool is the same as the
value of pool shares.
Concentration of credit risk – Concentration of credit risk is the risk of loss that may be attributed to
the magnitude of a government’s investment in a single issuer. The City’s investment policy states
investments shall be diversified by limiting investments to avoid over concentration in securities from
a specific issuer or business sector (excluding U.S. Treasury securities). Investments in a single issuer
exceeding 5% of the City’s overall cash and investment portfolio (excluding cash with escrow agent)
are in various holdings as follows:
Federal Home Loan Bank notes8%
Federal National Mortgage Association notes11%
Federal Home Loan Mortgage Corporation notes5%
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Note 3 RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2014 are as
follows:
ContractInterfundDelinquent Special
for DeedLoanPropertyAssessments
ReceivableReceivableTaxesReceivableTotal
Major Funds:
General$ - $ - $20,579$41$20,620
2009A G.O. Refunding - - - 794,157794,157
Transit Station Assessment Fund - - - 458,349458,349
Revolving Assessment Fund - - - 1,437,0831,437,083
Water - 368,797 - 129,863498,660
Sewer - - - 11,82011,820
Nonmajor Funds1,287,575 - - 80,9401,368,515
$1,287,575$368,797$20,579$2,912,253$4,589,204
CONTRACT FOR DEED RECEIVABLE
During 2012, the City sold its old public works building for $1,475,000. The City received $30,000 at the time
of closing, and entered into an agreement to collect the remaining amount due, plus 5% interest, in monthly
payments through July 2017 as follows:
Year EndingPrincipal
December 31,Amount Due
2015$39,493
201629,373
20171,258,202
Total$1,327,068
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Note 4 UNAVAILABLE REVENUE
Governmental funds report deferred inflows of resources in connection with receivables of revenues that are
not considered to be available to liquidate liabilities of the current period. At December 31, 2014, the various
components of unavailable revenue were as follows:
Major Funds
2009ATransit
G.O.Station Revolving
General RefundingAssessmentAssessment Nonmajor
FundBondsFundFundFundsTotal
Delinquent property taxes receivable$68,073$ - $ - $ - $1,796$69,869
Special assessments not yet due2,001799,977556,6761,754,73490,0613,203,449
Other3,764 - - 6,2093,42013,393
Total unavailable revenue$73,838$799,977$556,676$1,760,943$95,277$3,286,711
Note 5 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2014 was as follows:
BeginningEnding
Primary GovernmentBalanceIncreaseDecreaseBalance
Governmental activities:
Capital assets not being depreciated:
Land$19,792,789$ - ($535,972)$19,256,817
Construction in progress1,961,1771,690,948(1,007,674)2,644,451
Permanent easements922,670233,280 - 1,155,950
Total capital assets not being depreciated22,676,6361,924,228(1,543,646)23,057,218
Capital assets being depreciated:
Buildings and structures22,858,7597,115 - 22,865,874
Machinery and equipment8,308,887474,046(238,300)8,544,633
Temporary easements12,931 - - 12,931
Other improvements 6,680,735476,883 - 7,157,618
Infrastructure112,664,246479,114 - 113,143,360
Total capital assets being depreciated150,525,5581,437,158(238,300)151,724,416
Less accumulated depreciation for:
Buildings and structures6,149,264559,807 - 6,709,071
Machinery and equipment5,721,355477,023(178,640)6,019,738
Temporary easements6,0176,915 - 12,932
Other improvements 2,669,326286,930 - 2,956,256
Infrastructure71,850,9223,642,232 - 75,493,154
Total accumulated depreciation86,396,8844,972,907(178,640)91,191,151
Governmental activities capital assets - net$86,805,310($1,611,521)($1,603,306)$83,590,483
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
BeginningEnding
Primary GovernmentBalanceIncreaseDecreaseBalance
Business-type activities:
Capital assets not being depreciated:
Land$2,072,635$4,400$ - $2,077,035
Construction in progress2,698,8161,152,250(2,250,844)1,600,222
Permanent easements835,483320,984 - 1,156,467
Total capital assets not being depreciated5,606,9341,477,634(2,250,844)4,833,724
Capital assets being depreciated:
Buildings and structures12,445,429 - - 12,445,429
Machinery and equipment1,419,697138,983(39,006)1,519,674
Temporary easements34,728 - (34,728) -
Other improvements 101,611,9322,865,587(35,955)104,441,564
Total capital assets being depreciated115,511,7863,004,570(109,689)118,406,667
Less accumulated depreciation for:
Buildings and structures1,494,163248,918 - 1,743,081
Machinery and equipment924,17279,045(33,449)969,768
Temporary easements34,728 - (34,728) -
Other improvements 54,592,3672,944,261(35,955)57,500,673
Total accumulated depreciation57,045,4303,272,224(104,132)60,213,522
Business-type activities capital assets - net64,073,2901,209,980(2,256,401)63,026,869
Total capital assets - net$150,878,600($401,541)($3,859,707)$146,617,352
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities:
General government$358,673
Public safety152,078
Public works3,566,500
Parks and recreation895,656
Total depreciation expense - governmental activities$4,972,907
Business-type activities:
Water$1,497,666
Sewer952,259
Surface water management822,299
Total depreciation expense - business-type activities$3,272,224
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Note 6 CITY INDEBTEDNESS
The City issues general obligation bonds, to provide funds for the acquisition and construction of major capital
facilities. The reporting entity’s long-term debt is segregated between the amounts to be repaid from
governmental activities and amounts to be repaid from business-type activities.
GOVERNMENTAL ACTIVITIES
As of December 31, 2014, the governmental activities long-term debt of the City consisted of the following:
FinalAuthorized
Issue Maturity Interest AndOutstanding
DateDateRateIssued12/31/14
General Long-Term Debt:
General Obligation Bonds:
G.O. Capital Improvement Plan Bonds, Series 2008A11/18/082/01/304.00% - 4.60%$7,550,000$6,505,000
G.O. Library Refunding Bonds, 2010A1/27/102/01/222.00% - 3.10%3,660,0003,045,000
Total general obligation bonds11,210,0009,550,000
Tax Increment Bonds:
G.O. Tax Increment Refunding Bonds, Series 2004C8/10/042/01/213.00% - 6.00%1,170,000635,000
General Obligation Improvement Bonds:
G.O. Improvement Refunding Bonds, Series 2009A6/03/092/01/173.00%6,020,0001,705,000
Compensated absences payableN/A791,637
Total City indebtedness - governmental activities$18,400,000$12,681,637
BUSINESS-TYPE ACTIVITIES
As of December 31, 2014, the business-type activities long-term debt of the City consisted of the following:
FinalAuthorized
Issue Maturity Interest AndOutstanding
DateDateRateIssued12/31/14
G.O. Revenue Bonds:
Water Revenue Bonds, Series 2011A10/6/20112/1/20220.30% - 2.15%$5,920,000$5,055,000
Water Revenue Refunding Bonds, Series 2011B10/6/20112/1/20252.00% - 3.00%3,720,0003,720,000
Water and Sewer Revenue Bonds, Series 2012A11/15/20122/1/20231.00% - 1.55%1,245,0001,130,000
Bond premium182,339140,261
Total G.O. revenue bonds11,067,33910,045,261
Compensated absences payableN/A172,794
Total City indebtedness - business-type activities$11,067,339$10,218,055
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
GOVERNMENTAL ACTIVITIES
Annual debt service requirements to maturity for the governmental activities long-term debt are as follows:
General Obligation BondsG.O. Improvement BondsG.O. Tax Increment Bonds
Year EndingGovernmental ActivitiesGovernmental ActivitiesGovernmental Activities
December 31,PrincipalInterestPrincipalInterestPrincipalInterest
2015$625,000$356,848$550,000$42,900$75,000$34,005
2016640,000337,111565,00026,17580,00029,895
2017670,000315,298590,0008,85085,00025,440
2018695,000291,648 - - 90,00020,580
2019725,000266,964 - - 95,00015,308
2020755,000241,053 - - 100,0009,600
2021780,000213,948 - - 110,0003,300
2022815,000185,370 - - - -
2023405,000162,014 - - - -
2024425,000144,270 - - - -
2025445,000125,454 - - - -
2026465,000105,545 - - - -
2027490,00084,413 - - - -
2028510,00062,035 - - - -
2029540,00038,275 - - - -
2030565,00012,995 - - - -
Total$9,550,000$2,943,241$1,705,000$77,925$635,000$138,128
It is not practicable to determine the specific year for payment of long-term accrued compensated absences.
The City has issued General Improvement Bonds to provide funds for various construction projects. In case of
a default by property owners, the City can place a lien on the property in order to recover the default.
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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 31,PrincipalInterest
2015$775,000$186,463
2016805,000180,541
2017815,000172,300
2018835,000162,228
20191,290,000145,828
20201,310,000120,679
20211,355,00090,821
2022920,00063,634
2023670,00042,971
2024555,00025,575
2025575,0008,625
Total$9,905,000$1,199,665
It is not practicable to determine the specific year for payment of long-term accrued compensated absences.
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2014 was as follows:
BeginningEnding Due Within
BalanceAdditionsDeletionsBalanceOne Year
Governmental activities:
Bonds payable:
General obligation bonds$10,155,000$ - ($605,000)$9,550,000$625,000
G.O. improvement bonds5,220,000 - (3,515,000)1,705,000550,000
G.O. tax increment bonds705,000 - (70,000)635,00075,000
Total bonds payable16,080,000 - (4,190,000)11,890,0001,250,000
Compensated absences794,233593,094(595,690)791,63786,173
Total governmental activity
long-term liabilities$16,874,233$593,094($4,785,690)$12,681,637$1,336,173
Business-type activities:
G.O. revenue bonds $16,170,000$ - ($6,265,000)$9,905,000$775,000
Bond premium154,287 - (14,026)140,26114,026
Compensated absences161,004115,507(103,717)172,79418,810
Total business-type activity
long-term liabilities$16,485,291$115,507($6,382,743)$10,218,055$807,836
For the governmental activities, compensated absences are generally liquidated by the General and Special
Revenue Funds.
All long-term bonded indebtedness outstanding at December 31, 2014 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, 2014 totaled $2,151.
General Obligation Revenue Bonds are serviced by the Sewer and Water Enterprise Funds and are carried as
debt of those funds. Other bonds are supported by various Debt Service Funds. All bonds are backed by the
full faith, credit, and taxing power of the City.
NONEXCHANGE FINANCIAL GUARANTEE OF DEBT
On August 1, 2014 the Carver County Community Development Agency, a legally separate entity from the
City, issued $2,110,000 of Housing Development Refunding Bonds, Series 2014 and $2,370,000 of Taxable
Housing Development and Refunding Bonds, Series 2014T. The proceeds were used to refund a portion of
prior bonds and to fund certain capital improvements of the Centennial Hill Apartments, which are located
within the City.
In accordance with Minnesota Statutes, Section 469.034, Subd. 2, the City has pledged its full faith and credit
and taxing powers to the payment of debt service on the Series 2014 and Series 2014T bonds. In the event that
the Carver County Community Development Agency is unable to pay the debt service on the bonds due to
insufficient housing revenues and cash reserves, the City is obligated to pay the debt service. The City’s
guarantee extends until the bonds have fully matured, which is scheduled to occur in 2034. The total amount of
outstanding guaranteed debt, including interest, at December 31, 2014 is $6,159,504.
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
The City’s management does not expect the city will be required to make any debt service payments towards
these bonds. Accordingly, the bonds are not reflected in the financial statements of the City.
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
2008A CIP bondsPublic Works Facility constructionProperty taxes100%n/a2009 - 2029$9,067,049$559,368$592,100
2010A Library Refunding bondsLibrary constructionProperty taxes100%n/a2012 - 2021$3,426,188$420,805$448,880
- refunded the 2002A Library bonds
2004C TIF Refunding bondsDowntown Redevelopment ProjectTax increment100%n/a2004 - 2021$773,128$107,775$107,775
2009A Improvement Refunding bondsInfrastructure improvementsSpecial assessments68%n/a2009 -2017$1,782,925$3,618,875$352,859
- refunded the 2005A & 2006A bondsProperty taxes32%
2011A Water Revenue bondsWater infrastructure improvementsWater usage charges100%27.8%2012 - 2021$5,373,835$715,850$2,571,303
- refunded the 2005B bonds
2011B Water Revenue bondsWater infrastructure improvementsWater usage charges100%4.1%2012 - 2024$4,535,100$106,000$2,571,303
- refunded the 2005B bonds
2012A Water & Sewer RevenuePurchase of meter reading equipmentWater and sewer100%2.6%2013 - 2022$1,195,728$128,715$5,030,781
Bondsusage charges
Note 7 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT
General obligation bond issues sold by the City are financed by ad valorem tax levies. Special assessment bond
issues sold by the City are partially financed by ad valorem tax levies in addition to special assessments levied
against the benefiting properties. When a bond issue to be financed partially or completely by ad valorem tax
levies is sold, specific annual amounts of such tax levies are stated in the bond resolution and the County
Auditor is notified and instructed to levy these taxes over the appropriate years. The future tax levies are
subject to cancellation when and if the City has provided alternative sources of financing. The City Council is
required to levy any additional taxes found necessary for full payment of principal and interest.
These future scheduled tax levies are not shown as assets in the accompanying financial statements at
December 31, 2014.
Future scheduled tax levies for all bonds outstanding at December 31, 2014 totaled $12,797,960.
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Note 8 PENSION PLANS
A. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (PERA)
PLAN DESCRIPTION
All full-time and certain part-time employees of the City are covered by defined benefit plans administered
by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the General
Employees Retirement Fund (GERF) and the Public Employees Police and Fire Fund (PEPFF) which are
cost-sharing, multiple-employer retirement plans. These plans are established and administered in
accordance with Minnesota Statute, Chapters 353 and 356.
GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are
covered by Social Security and Basic Plan members are not. All new members must participate in the
Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership by
statute are covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors
upon death of eligible members. Benefits are established by State Statute, and vest after five years of
credited service. The defined retirement benefits are based on a member’s highest average salary for any
five successive years of allowable service, age, and years of credit at termination of service.
PERA issues a publicly available financial report that includes financial statements and required
supplementary information for GERF and PEPFF. That report may be obtained on the internet at
www.mnpera.org, by writing to PERA, 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088 or by
calling 651-296-7460 or 1-800-652-9026.
B. FUNDING POLICY
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These
statutes are established and amended by the state legislature. The City makes annual contributions to
the pension plans equal to the amount required by state statutes. GERF Basic Plan members and
Coordinated Plan members were required to contribute 9.10% and 6.25%, respectively, of their annual
covered salary in 2014. PEPFF members were required to contribute 10.2% of their annual covered
salary in 2014. The City was required to contribute the following percentages of annual covered
payroll in 2014: 11.78% for Basic Plan GERF members, 7.25% for Coordinated Plan members, and
15.3% for PEPFF members. The City’s contributions to the Public Employees Retirement Fund for
the years ending December 31, 2014, 2013 and 2012 were $338,623, $327,268, and $318,411,
respectively. The City’s contributions to the Public Employees Police and Fire Fund for the years
ending December 31, 2014, 2013 and 2012 were $21,822, $17,883, and $18,444, respectively. The
City’s contributions were equal to the contractually required contributions for each year as set by state
statute. Contribution rates will increase on January 1, 2015 in the Coordinated Plan (6.5% for
members and 7.5% for employers) and in the Police and Fire Fund (10.8% for members and 16.2% for
employers).
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
C. CHANHASSEN FIRE RELIEF ASSOCIATION
PLAN DESCRIPTION
The volunteer firefighters of the City are members of the Chanhassen Fire Department Relief
Association. The Chanhassen Fire Department Relief Association is the administrator of a single
employer defined benefit Public Employee Retirement System (PERS) established to provide benefits
for members of the Chanhassen Fire Department. Plan provisions are established and may be
amended by the Relief Association’s Board of Trustees within the guidelines of the State of Minnesota
statutes.
The Relief Association provides retirement and disability benefits to members, and benefits to
survivors upon death of eligible members. All benefit provisions, and the obligation to make
contributions, are established and administered in accordance with Minnesota Statutes.
The Relief Association issues a publicly available financial report that includes financial statements
and required supplementary information. That report may be obtained by writing to Chanhassen Fire
Department Relief Association, P.O. Box 97, Chanhassen, MN 55317.
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 Relief Association is comprised of
volunteers; therefore, members have no contribution requirements. During the year, the City
recognized as revenue and as an expenditure an on-behalf payment of $161,491 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$206,046
Contributions made:
City44,555
State aid161,491
Actuarial valuation date12/31/14
Actuarial cost methodEntry age normal
Amortization methodLevel dollar open
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
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
THREE YEAR TREND INFORMATION
AnnualPercentageNet
YearPensionof APCPension
EndingCost (APC)ContributedObligation
12/31/2012$161,202100%$ -
12/31/2013167,163100% -
12/31/2014206,046100% -
REQUIRED SUPPLEMENTARY INFORMATION
Assets in
Excess of/Pension
ActuarialActuarialActuarial(Unfunded)Benefit
ValuationValue ofAccruedAccruedFundedPer Year
DateAssetsLiabilityLiabilityRatioof Service
12/31/2012$2,393,6732,980,865($587,192)80.3%$5,050
12/31/20132,551,9042,803,000(251,096)91.0%5,050
12/31/2014*****
* 2014 information is not available
The Association is comprised of volunteers; therefore, there are no payroll expenditures (i.e., there are
no covered payroll amounts or percentage calculations).
Note 9 OTHER POST-EMPLOYMENT BENEFITS
A.PLAN DESCRIPTION
In addition to providing the pension benefits described in Note 8, the City provides post-employment
health care benefits (as defined in paragraph B) for retired employees through a single-employer
defined benefit plan. The City’s OPEB plan is administered by the City. The authority to provide
these benefits is established in Minnesota Statutes Sections 471.61 Subd. 2a, and 299A.465. The
benefits, benefit levels, employee contributions and employer contributions are governed by the City
and can be amended by the City through its personnel manual and collective bargaining agreements
with employee groups. The Plan is not accounted for as a trust fund, as an irrevocable trust has not
been established to account for the plan. The Plan does not issue a separate report.
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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.
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 January 1, 2014 actuarial valuation, participants consisted of:
Retirees and beneficiaries currently
purchasing health insurance through the City1
Active employees60
Total61
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.
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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, 2014, was calculated as follows:
Annual required contribution (ARC)$13,175
Interest on net OPEB obligation792
Adjustment to ARC(1,144)
Annual OPEB cost12,823
Contributions made during the year(7,080)
Increase (decrease) in net OPEB obligation5,743
Net OPEB obligation - beginning of year19,788
Net OPEB obligation - end of year$25,531
For governmental activities, the net OPEB obligation is generally liquidated by the General Fund.
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net
OPEB obligation for the previous three years was as follows:
Percentage of
Fiscal YearAnnual OPEBEmployer Annual OPEB CostNet OPEB
EndedCostContributionsContributedObligation
December 31, 2012$9,100$5,23257.5%$15,536
December 31, 20139,0084,75652.8%19,788
December 31, 201412,8237,08055.2%25,531
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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, 2014$0$116,025$116,0250.0%$4,568,3372.5%
*Using the projected unit credit actuarial pay cost method.
G. ACTUARIAL METHODS AND ASSUMPTIONS
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality and the health care cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions (ARC) of the employer
are subject to continual revision as actual results are compared with past expectations and new
estimates are made about the future. The schedule of funding progress, presented as required
supplementary information following the notes to financial statements, presents multi-year trend
information that shows whether the actuarial value of plan assets is increasing or decreasing over time
relative to the actuarial accrued liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the time
of each valuation and the historical pattern of sharing of benefit costs between the employer and plan
members to that point. The actuarial methods and assumptions used include techniques that are
designed to reduce the effect of short-term volatility in actuarial accrued liabilities and the actuarial
value of assets, consistent with the long-term perspective of the calculations.
In the January 1, 2014 actuarial valuation, the projected unit credit actuarial cost method was used.
The actuarial assumptions included a 4.0% investment rate of return (net of administrative expenses)
and an annual health care cost trend rate of 8.0% for 2015, decreasing by 0.5% annually to an ultimate
rate of 4.0%. These rates include a 3% inflation rate. The actuarial value of assets was $0. The plan’s
unfunded actuarial accrued liability is being amortized using the level percentage of projected payroll
method over 30 years on a open basis. The remaining amortization period at December 31, 2014 was
30 years.
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Note 10 INTERFUND LOAN RECEIVABLE/PAYABLE AND TRANSFERS
Amounts reported as interfund receivable/payable at December 31, 2014 are as follows:
FundReceivablePayable
Transit Station Assessment Fund$ - $466,933
Water Fund466,933 -
Total$466,933$466,933
During 2010, the City adopted resolution 2010-16A authorizing an interfund loan for advance of certain costs
in connection with the Transit Station Public Improvement Project. The Transit Station Assessment Fund
borrowed $729,253 from the Water Fund. Repayments, including interest, will be made as funds become
available. There were $92,582 of repayments in 2014 and $98,136 is expected to be repaid in 2015.
Interfund transfers:
TransfersTransfers
InOut
General Fund$ - $450,810
2009A G.O. Refunding Bonds63,285 -
Transit Station Assessment Fund - 35,275
Revolving Assessment Fund1,179,567 -
TH101 Imp. - Lyman to Pioneer249,198 -
Nonmajor government funds291,669190,010
Water Fund45,275738,429
Sewer Fund - 125,204
Surface Water Management Fund - 289,266
Total$1,828,994$1,828,994
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 2014
transfers are considered routine and consistent with previous practices.
Note 11 CONDUIT DEBT
From time to time, the City has issued conduit debt to provide financial assistance to private-sector entities for
the acquisition and construction of facilities deemed to be in the public interest. The bonds are secured by the
property financed and are payable solely from payments received on the underlying mortgage loans. Upon
repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the
bond issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for
the repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying
financial statements.
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
As of December 31, 2014, the outstanding conduit debt is as follows:
BondsOriginal12/31/14Maturity
Project NameIssuedPrincipalPrincipalDate
Chapel Hill Academy, Series 2005A12/05$1,337,700$563,4242019
St. Hubert Catholic Community, Series 200710/075,942,1403,535,9172027
Presbyterian Homes, Series 2014B06/149,300,0009,126,0212034
Note 12 DEFICIT FUND BALANCES
The City has deficit fund balances of $466,933 in the Transit Station Assessment Capital Project Fund and
$8,419 in the TH101 Improvements – Pioneer to Flying Cloud Capital Project Fund at December 31, 2014.
The deficits will be eliminated through special assessment collections and transfers.
Note 13 COMMITMENTS AND CONTINGENCIES
A. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters. The City continues to carry commercial
insurance for risks of loss, including workers compensation, property and general liability and employee
health and accident insurance. There were no significant reductions in insurance from the previous year or
settlements in excess of insurance coverage for any of the past three fiscal years.
B. LITIGATION
Any existing and pending lawsuits, claims and other actions in which the City is a defendant are either
covered by insurance; of an immaterial amount; or, in the judgment of the City’s management, are
remotely recoverable by plaintiffs.
C. WESTERN AREA FIRE TRAINING ACADEMY
A potential claim may be asserted against the City arising out of its membership in the Western Area
Fire Training Academy (WAFTA). WAFTA is a joint powers entity consisting of 11 member cities
that was formed in 1974 to purchase property to be used and operated as a fire training facility. In the
late 1980’s, WAFTA became aware that the site was contaminated. Since that time, WAFTA has been
working with the Minnesota Pollution Control Agency (MPCA) and other responsible parties to
address the contamination issues on the site. At this time, the City’s share of the potential cost to
remediate the site cannot be determined, nor has a claim been asserted against WAFTA or the City.
Based on recent studies of the site, it is Management’s belief that the amount of any potential claim is
not material to the financial statements.
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
D. FEDERAL AND STATE FUNDS
The City receives financial assistance from federal and state governmental agencies in the form of
grants. The disbursement of funds received under these programs generally requires compliance with
the terms and conditions specified in the grant agreements and is subject to audit by the grantor
agencies. Any disallowed claims resulting from such audits could become a liability of the applicable
fund. However, in the opinion of management, any such disallowed claims will not have a material
effect on any of the financial statements of the individual fund types included herein or on the overall
financial position of the City at December 31, 2014.
E. TAX INCREMENT DISTRICTS
The City’s tax increment districts are subject to review by the State of Minnesota Office of the State
Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the
applicable fund. Management has indicated that they are not aware of any instances of noncompliance
which would have a material effect on the financial statements.
As of December 31, 2014, the City had one outstanding tax increment pay-as-you-go revenue note.
The note is not a general obligation of the City and is payable solely from tax increments.
Accordingly, the note is not reflected in the financial statements of the City. Details of the pay-as-you-
go revenue note is as follows:
Taxable Tax Increment Revenue Note, Series 2006A (Gateway Place) – issued in 2006 in the principal
sum of $300,000 with an interest rate of 0% per annum. Semi-annual principal payments shall be paid
commencing August 1, 2009 and continuing through February 1, 2016. Payments are payable solely
from available tax increment, which term means 90% of the tax increment that is received by the City
in the six month period immediately before each payment date through February 1, 2014 and 65%
from August 1, 2014 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, 2014 the
principal amount outstanding on the note was $209,856.
F. COMMITTED CONTRACTS
At December 31, 2014, the City had commitments of $226,553 for uncompleted construction
contracts. In addition, the City has entered into five construction contracts during 2015 totaling
$4,127,621.
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Note 14 FUND BALANCE
A.CLASSIFICATIONS
Definitions of fund balance classifications are included in Note 1P. At December 31, 2014, a
summary of the governmental fund balance classifications are as follows:
Transit
2009A G.O.Station RevolvingOther
GeneralRefundingAssessmentAssessmentTH 101Governmental
FundBondsFundFundImprovementsFundsTotal
Nonspendable:
Prepaid items$58,333$ - $ - $ - $ - $2,000$60,333
Contract for deed receivable - - - - - 1,287,5751,287,575
Total nonspendable58,33300001,289,5751,347,908
Restricted for:
Debt service - 1,300,476 - - - 1,530,3062,830,782
Park improvements - - - - - 1,751,7391,751,739
Tax increment purposes - - - - - 965,809965,809
CATV - public education - - - - - 128,693128,693
Public safety - fire - - - - - 47,39647,396
Total restricted01,300,4760004,423,9435,724,419
Assigned for:
Capital improvements - - - 2,020,97211,5962,959,9924,992,560
Cable communications - - - - - 201,112201,112
Cemetery operations - - - - - 27,41827,418
Debt service reserve - - - - - 730,417730,417
Total assigned0002,020,97211,5963,918,9395,951,507
Unassigned5,550,732 - (466,933) - - (8,419)5,075,380
Total$5,609,065$1,300,476($466,933)$2,020,972$11,596$9,624,038$18,099,214
B.MINIMUM UNASSIGNED FUND BALANCE POLICY
The City Council has formally adopted a policy regarding the minimum unassigned fund balance for
the General Fund. The most significant revenue source of the General Fund is property taxes. This
revenue source is received in two installments during the year – June and December. As such, it is the
City’s goal to begin each fiscal year with sufficient working capital to fund operations between each
semi-annual receipt of property taxes.
The City’s fund balance policy states the year end General Fund balance shall be sufficient to cover
50% of the property taxes budgeted to be received during the following year. At December 31, 2014,
the fund balance of the General Fund exceeded this level.
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Note 15 LEASE REVENUE
The City receives revenue from agreements for the lease of space above its water towers and on City property
to communication companies. The space is used for antennas and other equipment necessary to provide radio
communications. For accounting purposes, the leases are considered operating leases. Lease revenue for the
year ended December 31, 2014 totaled $180,613. Terms of each lease outstanding at year end are as follows:
LesseeTermsCurrent Term
Sprint$25,082 per year with 3% annual increases8/1/11 - 7/31/16
Sprint$23,486 per year with 3% annual increases12/1/10 - 11/30/15
Verizon$2,068 per month 8/1/13 - 4/30/17
Nextel West Corp.$22,926 per year with 3% annual increases12/1/14 - 11/30/19
T-Mobile$2,153 per month with 3% annual increases11/1/10 - 10/31/15
T-Mobile$22,258 per year with 3% annual increases1/1/14 - 12/31/19
StoneBridge/Nextera5% of gross revenues associated with equipment used on property1/1/15 - 12/31/19
Cingular/AT&T$2,029 per month with 3% annual increases8/1/12 - 7/31/17
Note 16 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. 68
Accounting and Financial Reporting for Pensions – an amendment of GASB Statement
27. The provisions of this Statement are effective for financial statements for periods beginning after June
15, 2014. Statement No. 68 requires governments providing defined benefit pensions to recognize their
long-term obligation for pension benefits as a liability for the first time.
Statement No. 71
Pension Transition for Contributions Made Subsequent to the Measurement Date – an
amendment of GASB Statement No. 68. The provisions of this Statement should be applied simultaneously
with the provisions of Statement 68.
Statement No. 72
Fair Value Measurement and Application. The provisions of this Statement are effective
for financial statements for periods beginning after June 15, 2015.
The effect these standards may have on future financial statements is not determinable at this time, but it is
expected that Statements No. 68 and No. 71 will have a material impact.
- This page intentionally left blank -
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF CHANHASSEN, MINNESOTA
Statement 10
REQUIRED SUPPLEMENTARY INFORMATION
Page 1 of 6
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2014
With Comparative Actual Amounts For The Year Ended December 31, 2013
2014
2013
Budgeted Amounts
ActualVariance withActual
OriginalFinalAmountsFinal BudgetAmounts
Revenues:
General property taxes$7,629,950$7,629,950$7,652,802$22,852$7,457,293
Excess tax increment received - - 132,358132,358 -
Total general property taxes7,629,9507,629,9507,785,160155,2107,457,293
Licenses and permits:
Licenses - general government4,0004,0004,6006003,600
Licenses - public safety95,50095,50097,5492,04998,108
Permits - public safety859,500859,5001,113,462253,9621,169,970
Permits - public works33,00033,00044,55711,55746,427
Permits - community development6,5006,5004,095(2,405)6,665
Total licenses and permits998,500998,5001,264,263265,7631,324,770
Intergovernmental:
State aid - police - public safety110,000110,000138,30528,305127,134
State aid - fire - public safety110,000110,000164,56654,566169,106
PERA - public safety20,00020,00019,467(533)19,589
Other45,00045,00051,0596,05943,251
Total intergovernmental285,000285,000373,39788,397359,080
Charges for services:
General government76,35076,35077,21586576,954
Public safety8,0008,0006,768(1,232)7,492
Public works52,50052,50071,13018,63091,052
Park and recreation422,350422,350416,846(5,504)416,850
Community development11,70011,70035,80524,10530,696
Total charges for services570,900570,900607,76436,864623,044
Fines and forfeits:
Public safety122,500122,500100,516(21,984)99,984
Refunds and reimbursements:
General government17,25017,25016,034(1,216)6,915
Public safety4,6504,6504,096(554)8,518
Public works38,60038,60045,5536,95356,796
Park and recreation14,50014,5003,556(10,944)10,630
Community development - - 4141222
Total refunds and reimbursements75,00075,00069,280(5,720)83,081
Investment earnings45,00045,00054,1409,14044,959
Net change in fair value of investments - - (1,919)(1,919)(50,077)
Contributions and donations:
General government250250600350600
Public safety250250200(50)320
Park and recreation21,29921,29921,89059118,725
Total contributions and donations21,79921,79922,69089119,645
Other:
General government$173,300$173,300$186,379$13,079$180,299
Public safety7,0007,0005,342(1,658)6,401
Total other180,300180,300191,72111,421186,700
Total revenues9,928,9499,928,94910,467,012538,06310,148,479
CITY OF CHANHASSEN, MINNESOTA
Statement 10
REQUIRED SUPPLEMENTARY INFORMATION
Page 2 of 6
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2014
With Comparative Actual Amounts For The Year Ended December 31, 2013
20142013
Budgeted AmountsActualVariance withActual
OriginalFinalAmountsFinal BudgetAmounts
Expenditures:
General government:
Legislative:
Current:
Personal services32,30032,30031,93236832,703
Contractual services77,00077,00075,2571,74389,495
Total legislative 109,300109,300107,1892,111122,198
Administrative office:
Current:
Personal services452,000452,000453,094(1,094)436,645
Materials and supplies20020015446435
Contractual services56,54956,54962,664(6,115)69,863
Total administrative office508,749508,749515,912(7,163)506,943
Finance:
Current:
Personal services243,900243,900248,109(4,209)236,729
Materials and supplies200200 - 200 -
Contractual services51,70051,70050,5451,15547,199
Total finance295,800295,800298,654(2,854)283,928
Election:
Current:
Personal services22,50022,50024,841(2,341) -
Materials and supplies3,5003,5005,481(1,981) -
Contractual services12,20012,20010,4091,79148
Total election38,20038,20040,731(2,531)48
Legal:
Current:
Contractual services148,000148,000175,563(27,563)159,919
Property assessment:
Current:
Contractual services130,000130,000132,379(2,379)123,590
M.I.S.:
Current:
Personal services192,000192,000188,9593,041182,569
Materials and supplies30,70030,70026,6294,07131,238
Contractual services41,90041,90043,945(2,045)37,940
Total M.I.S.264,600264,600259,5335,067251,747
CITY OF CHANHASSEN, MINNESOTA
Statement 10
REQUIRED SUPPLEMENTARY INFORMATION
Page 3 of 6
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2014
With Comparative Actual Amounts For The Year Ended December 31, 2013
2014
2013
Budgeted Amounts
ActualVariance withActual
OriginalFinalAmountsFinal BudgetAmounts
Expenditures: (continued)
General government: (continued)
City hall:
Current:
Personal services$76,400$76,400$74,522$1,878$72,544
Materials and supplies44,100$44,10041,4172,68336,862
Contractual services287,100287,100276,27510,825273,134
Total City hall407,600407,600392,21415,386382,540
Library:
Current:
Materials and supplies3,0003,0006,282(3,282)5,543
Contractual services111,200111,200104,8206,380113,887
Total library114,200114,200111,1023,098119,430
Total general government2,016,4492,016,4492,033,277(16,828)1,950,343
Public safety:
Police:
Current:
Personal services70,20070,20071,040(840)68,415
Materials and supplies3,0003,0003,002(2)2,378
Contractual services1,602,8001,602,8001,505,12497,6761,508,489
Total police1,676,0001,676,0001,579,16696,8341,579,282
Fire department:
Current:
Personal services586,900586,900651,072(64,172)603,172
Materials and supplies48,90048,90039,0949,80651,318
Contractual services119,100119,100133,737(14,637)124,057
Total fire department754,900754,900823,903(69,003)778,547
Code enforcement:
Current:
Personal services628,200628,200655,962(27,762)644,438
Materials and supplies4,5004,5005,361(861)4,106
Contractual services14,10014,10013,19290810,521
Total code enforcement646,800646,800674,515(27,715)659,065
Animal control:
Current:
Personal services59,60059,60050,9818,61946,218
Materials and supplies3,8003,8003,5582421,131
Contractual services7,6007,6009,649(2,049)6,731
Total animal control71,00071,00064,1886,81254,080
Total public safety3,148,7003,148,7003,141,7726,9283,070,974
CITY OF CHANHASSEN, MINNESOTA
Statement 10
REQUIRED SUPPLEMENTARY INFORMATION
Page 4 of 6
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2014
With Comparative Actual Amounts For The Year Ended December 31, 2013
2014
2013
Budgeted Amounts
ActualVariance withActual
Expenditures: (continued)OriginalFinalAmountsFinal BudgetAmounts
Public works:
Engineering:
Current:
Personal services$570,700$570,700$572,245($1,545)$548,975
Materials and supplies900900580320801
Contractual services30,50030,50029,81668433,444
Total engineering602,100602,100602,641(541)583,220
Street maintenance:
Current:
Personal services704,700704,700737,620(32,920)691,097
Materials and supplies114,600114,600115,882(1,282)144,662
Contractual services30,60030,60047,892(17,292)27,675
Total street maintenance 849,900849,900901,394(51,494)863,434
Street lighting:
Current:
Materials and supplies3,0003,0002,3196814,070
Contractual services348,500348,500331,60416,896347,149
Total street lighting351,500351,500333,92317,577351,219
City garage:
Current:
Personal services277,500277,500277,004496281,424
Materials and supplies211,100211,100205,6615,439191,268
Contractual services68,20068,20070,368(2,168)66,386
Total City garage556,800556,800553,0333,767539,078
Total public works2,360,3002,360,3002,390,991(30,691)2,336,951
Parks and recreation:
Parks and recreation commission:
Current:
Materials and supplies100100 - 100 -
Contractual services2,7002,7002,931(231)2,842
Total parks and recreation commission2,8002,8002,931(131)2,842
Parks and recreation administration:
Current:
Personal services138,400138,400142,629(4,229)135,604
Materials and supplies600600 - 600105
Contractual services6,7006,7005,4101,2904,783
Total parks and recreation
administration145,700145,700148,039(2,339)140,492
Recreation center:
Current:
Personal services214,400214,400205,0129,388204,218
Materials and supplies44,00044,00029,48714,51323,930
Contractual services82,40082,40071,52010,88093,171
Total recreation center340,800340,800306,01934,781321,319
CITY OF CHANHASSEN, MINNESOTA
Statement 10
REQUIRED SUPPLEMENTARY INFORMATION
Page 5 of 6
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2014
With Comparative Actual Amounts For The Year Ended December 31, 2013
2014
2013
Budgeted Amounts
ActualVariance withActual
OriginalFinalAmountsFinal BudgetAmounts
Expenditures: (continued)
Parks and recreation: (continued)
Senior citizen center:
Current:
Personal services$49,800$49,800$48,830$970$47,407
Materials and supplies3,3003,3002,5407602,340
Contractual services19,90019,90024,899(4,999)20,983
Total senior citizen center73,00073,00076,269(3,269)70,730
Recreation programs:
Current:
Personal services181,200181,200189,298(8,098)178,356
Materials and supplies19,50019,50020,964(1,464)23,844
Contractual services95,50095,500102,138(6,638)97,725
Total recreation programs296,200296,200312,400(16,200)299,925
Self-supporting programs:
Current:
Personal services33,90033,90035,400(1,500)32,939
Materials and supplies7,2007,2002,9894,2112,907
Contractual services24,00024,00017,0216,97921,645
Total self-supporting programs65,10065,10055,4109,69057,491
Lake Ann Park operations:
Current:
Personal services8,7008,7008,637638,117
Materials and supplies8,2008,2009,536(1,336)14,328
Contractual services43,80043,80041,4932,30740,952
Total Lake Ann Park operations60,70060,70059,6661,03463,397
Park maintenance:
Current:
Personal services788,800788,800829,738(40,938)807,849
Materials and supplies81,10081,10072,9748,12680,491
Contractual services89,60089,60080,8818,71985,916
Total park maintenance959,500959,500983,593(24,093)974,256
Downtown maintenance:
Current:
Contractual services - - 3,081(3,081)2,641
Recreation sports:
Current:
Personal services16,20016,20024,523(8,323)16,931
Materials and supplies8,8008,8008,920(120)8,275
Contractual services30030011289325
Total recreation sports25,30025,30033,454(8,154)25,531
Total parks and recreation1,969,1001,969,1001,980,862(11,762)1,958,624
CITY OF CHANHASSEN, MINNESOTA
Statement 10
REQUIRED SUPPLEMENTARY INFORMATION
Page 6 of 6
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2014
With Comparative Actual Amounts For The Year Ended December 31, 2013
20142013
Budgeted AmountsActualVariance withActual
OriginalFinalAmountsFinal BudgetAmounts
Expenditures: (continued)
Community development:
Planning commission:
Current:
Personal services$ - $ - $1,907($1,907)$88
Materials and supplies200200 - 200 -
Contractual services3,8003,8005,872(2,072)3,196
Total planning commission4,0004,0007,779(3,779)3,284
Planning administration:
Current:
Personal services384,300384,300392,286(7,986)374,345
Materials and supplies40040011428690
Contractual services12,00012,0006,5635,4373,941
Total planning administration396,700396,700398,963(2,263)378,376
Senior facility commission:
Current:
Personal services24,00024,00024,823(823)23,820
Contractual services9,7009,7008,5421,1588,641
Total senior facility commission33,70033,70033,36533532,461
Total community development434,400434,400440,107(5,707)414,121
Total expenditures9,928,9499,928,9499,987,009(58,060)9,731,013
Revenues over expenditures00480,003480,003417,466
Other financing sources (uses):
Sale of capital assets - - 288,547288,547 -
Transfers out - - (450,810)(450,810)(617,919)
Total other financing sources (uses) - - (162,263)(162,263)(617,919)
Net change in fund balance$0$0317,740$317,740(200,453)
Fund balance - January 15,291,3255,491,778
Fund balance - December 31$5,609,065$5,291,325
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.
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS - RETIREE HEALTH PLAN
For The Year Ended December 31, 2014
Unfunded
ActuarialActuarialActuarialUAAL as a
ActuarialValue ofAccruedAccruedFundedCoveredPercentage of
ValuationAssetsLiability (AAL)*Liability (UAAL)RatioPayrollCovered Payroll
Date(a)(b)(b-a)(a/b)(c) ( (b-a) / c)
January 1, 2008$0$52,268$52,2680.0%$4,180,2351.3%
January 1, 2011$0$89,875$89,8750.0%$4,299,4662.1%
January 1, 2014$0$116,025$116,0250.0%$4,568,3372.5%
*Using the projected unit credit actuarial pay cost method.
COMBINING AND INDIVIDUAL NONMAJOR FUND FINANCIAL
STATEMENTS AND SCHEDULES
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
The Special Revenue Funds are used to account for the proceeds of specific revenue sources that
are legally restricted to expenditures for specified purposes.
DEBT SERVICE FUNDS
The Debt Service Funds are used to account for the accumulation of resources for, and payment
of, interest, principal and related costs on general long-term debt.
CAPITAL PROJECT FUNDS
The Capital Project Funds account for financial resources to be used for the acquisition or
construction of major capital facilities (other than those financed by Proprietary Funds).
CITY OF CHANHASSEN, MINNESOTA
Statement 11
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2014
With Comparative Totals For December 31, 2013
Totals
Nonmajor
SpecialDebtCapital
Governmental Funds
RevenueServiceProject20142013
Assets:
Cash and investments$350,043$2,246,153$7,360,424$9,956,620$8,197,745
Accrued interest receivable1,4257,54125,87234,83830,068
Due from other governmental units735 - 43,32844,063876,741
Accounts receivable - net54,009 - 45,10599,114109,108
Property taxes receivable - 7,0299,53216,56114,854
Prepaid items - - 2,0002,000 -
Contract for deed receivable - - 1,327,0531,327,0531,372,668
Special assessments receivable - 82,2757,78690,061705,719
Total assets$406,212$2,342,998$8,821,100$11,570,310$11,306,903
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable$ - $ - $212,146$212,146$186,670
Due to other governmental units - - - - 1,131
Salaries payable1,593 - - 1,5932,435
Contracts payable - - 104,391104,391160,942
Due to other funds - - 14,95014,950 -
Interfund payable - - - - 559,515
Unearned revenue - - 1,517,9151,517,915526,449
Total liabilities1,59301,849,4021,850,9951,437,142
Deferred inflows of resources:
Unavailable revenue - 82,27513,00295,277706,310
Fund balance:
Nonspendable - - 1,289,5751,289,5751,327,068
Restricted176,0891,530,3062,717,5484,423,9434,688,037
Assigned228,530730,4172,959,9923,918,9393,707,861
Unassigned - - (8,419)(8,419)(559,515)
Total fund balance404,6192,260,7236,958,6969,624,0389,163,451
Total liabilities, deferred inflows
of resources, and fund balance$406,212$2,342,998$8,821,100$11,570,310$11,306,903
CITY OF CHANHASSEN, MINNESOTA
Statement 12
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2014
With Comparative Totals For The Year Ended December 31, 2013
Totals
Nonmajor
Special DebtCapitalGovernmental Funds
RevenueServiceProject20142013
Revenues:
General property taxes$ - $1,040,980$985,000$2,025,980$2,038,510
Tax increment collections - - 307,940307,940545,906
Licenses and permits - - 427,371427,371789,000
Intergovernmental - - 195,715195,7151,385,423
Special assessments - 11,715 - 11,715154,943
Charges for services190,814 - - 190,814284,370
Investment earnings3,76020,55968,25492,57364,815
Net change in fair value of investments(133)(730)(2,420)(3,283)(76,744)
Contributions and donations44,228 - - 44,22813,514
Refunds and reimbursements - - 8,5918,591152,282
Other - - 73,39873,39873,003
Total revenues238,669 1,072,524 2,063,849 3,375,042 5,425,022
Expenditures:
Current:
General government128,1292,675181,356312,160324,297
Public safety34,488 - 82,103116,591108,472
Public works - - 533,629533,629429,619
Parks and recreation - - 158,761158,76143,980
Community development - - 24,18024,180108,417
Capital outlay:
General government - - 34,08034,08087,707
Public safety - - 23,98023,98074,144
Public works - - 251,300251,3001,882,852
Parks and recreation - - 474,775474,775418,333
Decertification of TIF district - - 569,760569,760 -
Debt service:
Principal - 675,000 - 675,000620,000
Interest and paying agent fees - 414,397 - 414,397434,817
Total expenditures162,617 1,092,072 2,333,924 3,588,613 4,532,638
Revenues over (under) expenditures76,052 (19,548)(270,075)(213,571)892,384
Other financing sources (uses):
Sale of capital assets - - 12,98412,984 -
Transfers in33,344108,325150,000291,669627,734
Transfers out - (63,285)(126,725)(190,010)(1,252,942)
Total other financing sources (uses)33,344 45,040 36,259 114,643 (625,208)
Net change in fund balance109,396 25,492 (233,816)(98,928)267,176
Fund balance - January 1295,2232,235,2317,192,5129,722,9668,896,275
Fund balance - December 31$404,619$2,260,723$6,958,696$9,624,038$9,163,451
Reconciliation of beginning fund balance to prior year ending fund balance:
Prior year ending fund balance reported above$9,163,451
Reclassification of the 413 Transit Station Assessment Fund balance, now presented as a major fund$559,515
Fund balance - January 1, 2014 as reported on this statement$9,722,966
- This page intentionally left blank -
NONMAJOR SPECIAL REVENUE FUNDS
Special Revenue Funds are established to account for taxes and other revenues set aside for a
particular purpose. Revenues are recognized in the accounting period in which they become
available and measurable. Expenditures are recognized in the accounting period in which the
related liability is incurred.
Contribution Fund – This fund accounts for the proceeds that the City receives from
charitable gambling. The City collects 10% of the net proceeds from a pull-tab operation
in the City. By state statute, the fund may only be used for equipment and training for the
City’s fire department.
Cemetery Fund – The City owns and operates a municipal cemetery. In 2014,
improvements were made to add approximately 300 additional plots. This fund accounts
for all plot fees and maintenance going forward. Cemetery operations had previously been
accounted for within the City’s General Fund.
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.
CITY OF CHANHASSEN, MINNESOTA
Statement 13
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2014
With Comparative Totals For December 31, 2013
201
Contribution202 Cemetery 210 CATV Total Nonmajor Special
FundFundFundRevenue Funds
20142013
Assets:
Cash and investments$39,853$27,395$282,795$350,043$248,215
Accrued interest receivable201231,2011,4251,008
Due from other governmental units735 - - 735 -
Accounts receivable - net6,607 - 47,40254,00954,429
Total assets$47,396 $27,418 $331,398 $406,212 $303,652
Liabilities and Fund Balance
Liabilities:
Accounts payable$ - $ - $ - $ - $5,994
Salaries payable - - 1,5931,5932,435
Total liabilities001,5931,5938,429
Fund balance:
Restricted47,396 - 128,693176,089165,838
Assigned - 27,418201,112228,530129,385
Total fund balance47,39627,418329,805404,619295,223
Total liabilities and fund balance$47,396 $27,418 $331,398 $406,212 $303,652
CITY OF CHANHASSEN, MINNESOTA
Statement 14
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2014
With Comparative Totals For The Year Ended December 31, 2013
201
Contribution202 Cemetery 210 CATV Total Nonmajor Special
FundFundFundRevenue Funds
20142013
Revenues:
Franchise and PEG fees$ - $ - $190,814$190,814$211,835
Investment earnings530623,1683,7603,131
Net change in fair value of investments(19)(2)(112)(133)(2,573)
Contributions and donations44,228 - - 44,22813,514
Refunds and reimbursements - - - - 45
Total revenues44,73960193,870238,669225,952
Expenditures:
Current:
Personal services - - 98,41198,41194,481
Materials and supplies - - 7,3717,3717,571
Contractual services34,4885,98616,36156,83564,048
Capital outlay:
General government - - - - 9,041
Total expenditures34,4885,986122,143162,617175,141
Revenues over expenditures10,251(5,926)71,72776,05250,811
Other financing sources (uses):
Transfers in - 33,344 - 33,344 -
Transfers out - - - - (774,620)
Total other financing sources (uses)033,344033,344(774,620)
Net change in fund balance10,251 27,418 71,727 109,396 (723,809)
Fund balance - January 137,145 - 258,078295,2231,019,032
Fund balance - December 31$47,396$27,418$329,805$404,619$295,223
- This page intentionally left blank -
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.
CITY OF CHANHASSEN, MINNESOTA
Statement 15
SUBCOMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2014
With Comparative Totals For December 31, 2013
367 2008A 369 2010A
300 Permanent G.O. Public
G.O. Library
RevolvingWorks Facility Refunding
Totals Nonmajor Debt
DebtBondsBondsService Funds
20142013
Assets:
Cash and investments$727,106$910,000$609,047$2,246,153$2,221,522
Accrued interest receivable3,3112,6911,5397,5416,678
Property taxes receivable - 4,0283,0017,0297,031
Special assessments receivable82,275 - - 82,27559,934
Total assets$812,692$916,719$613,587$2,342,998$2,295,165
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:$ - $ - $ - $ - $ -
Deferred inflows of resources:
Unavailable revenue82,275 - - 82,27559,934
Fund balance:
Restricted - 916,719613,5871,530,3061,459,634
Assigned730,417 - - 730,417775,597
Total fund balance730,417916,719613,5872,260,7232,235,231
Total liabilities, deferred inflows
of resources, and fund balance$812,692$916,719$613,587$2,342,998$2,295,165
CITY OF CHANHASSEN, MINNESOTA
Statement 16
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR DEBT SERVICE FUNDS
For The Year Ended December 31, 2014
With Comparative Totals For The Year Ended December 31, 2013
362 2004C 367 2008A
300Taxable G.O. G.O. Public 369 2010A
PermanentT.I.WorksG.O. Library
Revolving360 2004A RefundingFacilityRefundingTotals Nonmajor Debt
DebtG.O. BondsBondsBondsBondsService Funds
20142013
Revenues:
General property taxes$ - $ - $ - $592,100$448,880$1,040,980$1,038,510
Special assessments86410,851 - - - 11,71523,614
Charges for services - - - - - - 7,610
Investment earnings8,734665 - 7,1004,06020,55915,384
Net change in fair value of investments(310)(24) - (252)(144)(730)(17,043)
Total revenues9,28811,4920598,948452,7961,072,5241,068,075
Expenditures:
Current:
General government2,675 - - - - 2,6752,585
Debt service:
Principal - - 70,000275,000330,000675,000620,000
Interest and paying agent fees - - 38,325284,81791,255414,397434,817
Total expenditures2,6750108,325559,817421,2551,092,0721,057,402
Revenues over (under) expenditures6,61311,492(108,325)39,13131,541(19,548)10,673
Other financing sources:
Transfer in - - 108,325 - - 108,325123,574
Transfer out - (63,285) - - - (63,285)(11,779)
Total other financing sources (uses) - (63,285)108,325 - - 45,040111,795
Net change in fund balance6,613(51,793)039,13131,54125,492122,468
Fund balance - January 1723,80451,793 - 877,588582,0462,235,2312,112,763
Fund balance - December 31$730,417$0$0$916,719$613,587$2,260,723$2,235,231
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NONMAJOR CAPITAL PROJECT FUNDS
Capital Project Funds are used to account for the construction and financing of large capital
projects. Revenues and expenditures are recognized on the modified accrual basis. Revenues
are recognized in the accounting period in which they become available and measurable.
Expenditures are recognized in the accounting period in which they are incurred.
Most capital projects are singular in purpose and their revenues/expenditures cannot be used
for subsidizing any other operating fund. In each of these cases, bonds or other revenues
received can only be used for these specific activities.
The following Capital Project Funds differ in that several of the expenditure categories
represent recurring types of costs, i.e., personal services, repair and maintenance of utilities,
and/or recurring land improvements.
400 Capital Replacement Fund – Accounts for monies collected from developers for inspection
and administrative services for projects.
410 Park Acquisition and Development – Accounts for park dedication fees as required by the
City ordinance. These funds are then utilized to finance park and trail improvements identified
in the park and recreation section of the City’s comprehensive plan.
420 Street Pavement Management – Accounts for sealcoating costs on local streets.
422 Old Public Works Building – Accounts for the sale of the old public works building and the
related contract for deed receivable.
461 Gateway Place TIF District, 491 TIF #4 Entertainment, 494 TIF #5 North Bay, and 498
TIF #8 Presbyterian Homes – Accounts for financing improvements in tax increment financing
districts.
600 Special Assessment Projects – Accounts for the construction or projects financed by
special assessments.
603 Lyman Blvd Improvements – Accounts for the street and utility improvement of Lyman
Blvd.
605 TH101 Improvements – Pioneer to Flying Cloud – Accounts for the funding sources and
costs of the Trunk Highway 101 improvement project, which includes widening of the highway
between Pioneer Trail and Flying Cloud Drive, sanitary sewer and water extension, storm sewer
improvements, pedestrian/bicycle trails and a pedestrian bridge.
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2014
With Comparative Totals For December 31, 2013
410 Park
400 Capital Acquisition420 Street 422 Old Public 461 Gateway
ReplacementandPavementWorksPlace TIF
Fund
DevelopmentManagementBuildingDistrict
Assets:
Cash and investments$1,817,151$1,738,071$1,196,007$260,569$17,635
Accrued interest receivable6,8357,8682,42396344
Due from other governmental units295526,188 - -
Accounts receivable - net39,3055,800 - - -
Property taxes receivable5,445 - 1,259 - -
Prepaid items2,000 - - - -
Contract for deed receivable - - - 1,327,053 -
Special assessments receivable - - 7,786 - -
Total assets$1,871,031$1,751,744$1,233,663$1,588,585$17,679
Liabilities, Deferred inflows of Resources, and Fund Balance
Liabilities:
Accounts payable$180,172$ - $15,066$ - $6,599
Due to other governmental units - - - - -
Due to other funds - - - - -
Interfund loan payable - - - - -
Contracts payable - - 104,391 - -
Unearned revenue - - 699,333 - -
Total liabilities180,1720818,79006,599
Deferred inflows of resources:
Unavailable revenue3,41557,786 - -
Fund balance:
Nonspendable2,000 - - 1,287,575 -
Restricted - 1,751,739 - - 11,080
Assigned1,685,444 - 407,087301,010 -
Unassigned - - - - -
Total fund balance1,687,4441,751,739407,0871,588,58511,080
Total liabilities, deferred inflows
of resources, and fund balance$1,871,031$1,751,744$1,233,663$1,588,585$17,679
Statement 17
603 Lyman 605 TH101
600 Special BlvdImprovements-
491 TIF #4 494 TIF #5 AssessmentImprovementsPioneer to Totals Nonmajor Capital Project
EntertainmentNorth BayProjects06-03Flying CloudFunds
20142013
$734,903$213,910$79,711$1,302,467$ - $7,360,424$5,728,008
4,1357493632,492 - 25,87222,382
- - - - 16,84043,328876,741
- - - - - 45,10554,679
1,7961,032 - - - 9,5327,823
- - - - - 2,000 -
- - - - - 1,327,0531,372,668
- - - - - 7,786645,785
$740,834$215,691$80,074$1,304,959$16,840$8,821,100$8,708,086
$ - $ - $ - $ - $10,309$212,146$180,676
- - - - - - 1,131
- - - - 14,95014,950 -
- - - - - - 559,515
- - - - - 104,391160,942
- - - 818,582 - 1,517,915526,449
000818,58225,2591,849,4021,428,713
1,796 - - - - 13,002646,376
- - - - - 1,289,5751,327,068
739,038215,691 - - - 2,717,5483,062,565
- - 80,074486,377 - 2,959,9922,802,879
- - - - (8,419)(8,419)(559,515)
739,038215,69180,074486,377(8,419)6,958,6966,632,997
$740,834$215,691$80,074$1,304,959$16,840$8,821,100$8,708,086
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CITY OF CHANHASSEN, MINNESOTA
Statement 18
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
Page 1 of 2
CHANGES IN FUND BALANCES
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2014
With Comparative Totals For The Year Ended December 31, 2013
410 Park 420 Street
400 Capital Acquisition and Pavement
Replacement FundDevelopmentManagement
Revenues:
General property taxes$800,000$ - $185,000
Tax increment collections - - -
Licenses and permits - 427,371 -
Intergovernmental - - 178,806
Special assessments - - -
Charges for services - - -
Investment earnings18,03020,7566,393
Net change in fair value of investments(639)(736)(227)
Refunds and reimbursements591 - 8,000
Other5,800 - -
Total revenues823,782447,391377,972
Expenditures:
Current:
General government181,356 - -
Public safety82,103 - -
Public works24,509 - 483,861
Parks and recreation127,29531,466 -
Community development - - -
Capital outlay:
General government34,080 - -
Public safety23,980 - -
Public works249,492 - 1,808
Parks and recreation114,017360,758 -
Decertification of TIF district - - -
Total expenditures836,832392,224485,669
Revenues over (under) expenditures(13,050)55,167(107,697)
Other financing sources (uses):
Sale of capital assets12,984 - -
Transfer in150,000 - -
Transfer out - (18,400) -
Total other financing sources (uses)162,984(18,400)0
Net change in fund balance149,934 36,767 (107,697)
Fund balance - January 11,537,5101,714,972514,784
Fund balance - December 31$1,687,444$1,751,739$407,087
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2014
With Comparative Totals For The Year Ended December 31, 2013
422 Old Public 461 Gateway Place 491 TIF #4
Works BuildingTIF DistrictEntertainment
Revenues:
General property taxes$ - $ - $ -
Tax increment collections - 20,304205,470
Licenses and permits - - -
Intergovernmental - - -
Special assessments - - -
Charges for services - - -
Investment earnings2,54111610,911
Net change in fair value of investments(90)(4)(387)
Refunds and reimbursements - - -
Other67,598 - -
Total revenues70,04920,416215,994
Expenditures:
Current:
General government - - -
Public safety - - -
Public works - - -
Parks and recreation - - -
Community development - 14,5614,937
Capital outlay:
General government - - -
Public safety - - -
Public works - - -
Parks and recreation - - -
Decertification of TIF district - - -
Total expenditures014,5614,937
Revenues over (under) expenditures70,0495,855211,057
Other financing sources (uses):
Sale of capital assets - - -
Transfer in - - -
Transfer out - - (108,325)
Total other financing sources (uses)00(108,325)
Net change in fund balance70,049 5,855 102,732
Fund balance - January 11,518,5365,225636,306
Fund balance - December 31$1,588,585$11,080$739,038
Statement 18
Page 2 of 2
605 TH101
498 TIF #8 600 Special 603 Lyman Blvd Improvements -
494 TIF #5 PresbyterianAssessmentImprovementsPioneer to Flying Totals Nonmajor Capital Project
North BayHomesProjects06-03CloudFunds
20142013
$ - $ - $ - $ - $ - $985,000$1,000,000
82,166 - - - - 307,940545,906
- - - - - 427,371789,000
- - - 6916,840195,7151,385,423
- - - - - - 131,329
- - - - - - 64,925
1,975 - 9586,574 - 68,25446,300
(70) - (34)(233) - (2,420)(57,128)
- - - - - 8,591152,237
- - - - - 73,39873,003
84,07109246,41016,8402,063,8494,130,995
- - - - - 181,356167,869
- - - - - 82,10396,215
- - - - 25,259533,629429,619
- - - - - 158,76143,980
2,7041,978 - - - 24,180108,417
- - - - - 34,08078,666
- - - - - 23,98074,144
- - - - - 251,3001,882,852
- - - - - 474,775418,333
- 569,760 - - - 569,760 -
2,704571,7380025,2592,333,9243,300,095
81,367(571,738)9246,410(8,419)(270,075)830,900
- - - - - 12,984 -
- - - - - 150,000504,160
- - - - - (126,725)(466,543)
0000036,25937,617
81,367 (571,738)924 6,410 (8,419)(233,816)868,517
134,324571,73879,150479,967 - 7,192,5125,764,480
$215,691$0$80,074$486,377($8,419)$6,958,696$6,632,997
Reconciliation of beginning fund balance to prior year ending fund balance:
Prior year ending fund balance reported above$6,632,997
Reclassification of the 413 Transit Station Assessment Fund balance, now presented as a major fund$559,515
Fund balance - January 1, 2014 as reported on this statement$7,192,512
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, 2014
With Comparative Actual Amounts For The Year Ended December 31, 2013
20142013
Budgeted AmountsActualVariance withActual
OriginalFinalAmountsFinal BudgetAmounts
Revenues:
Investment earnings$500$500$530$30$293
Net change in fair value of investments - - (19)(19)(424)
Contributions and donations17,00017,00044,22827,22813,514
Total revenues17,50017,50044,73927,23913,383
Expenditures:
Current:
Contractual services30,00030,00034,488(4,488)12,257
Revenues over (under) expenditures($12,500)($12,500)10,251$22,7511,126
Fund balance - January 137,14536,019
Fund balance - December 31$47,396$37,145
CITY OF CHANHASSEN, MINNESOTA
Statement 20
SPECIAL REVENUE FUND - CATV
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2014
With Comparative Actual Amounts For The Year Ended December 31, 2013
20142013
Budgeted AmountsActualVariance withActual
OriginalFinalAmountsFinal BudgetAmounts
Revenues:
Franchise and PEG fees$190,000$190,000$190,814$814$211,835
Investment earnings2,0002,0003,1681,168(1,782)
Net change in fair value of investments - - (112)(112)(2,149)
Other - - - - 45
Total revenues192,000192,000193,8701,870207,949
Expenditures:
Current:
Personal services97,00097,00098,411(1,411)94,481
Materials and supplies25,00025,0007,37117,6297,571
Contractual services22,30022,30016,3615,93951,791
Capital outlay - - - - 9,041
Total expenditures144,300144,300122,14322,157162,884
Revenues over expenditures$47,700$47,70071,727($20,287)45,065
Fund balance - January 1258,078213,013
Fund balance - December 31$329,805$258,078
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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.
CITY OF CHANHASSEN, MINNESOTA
Statement 21
COMBINING STATEMENT OF NET POSITION
AGENCY FUNDS
December 31, 2014
With Comparative Totals For December 31, 2013
913 Moon
Valley
815 Escrow Restoration
Fund
FundTotals
20142013
Assets:
Cash and investments$1,219,351$86,652$1,306,003$1,426,193
Liabilities:
Escrow deposits payable$1,219,351$86,652$1,306,003$1,426,193
CITY OF CHANHASSEN, MINNESOTA
Statement 22
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
For The Year Ended December 31, 2014
BalanceBalance
01/01/14AdditionsDeletions12/31/14
Escrow Fund
Assets:
Cash and investments$1,339,715$690,178$810,542$1,219,351
Liabilities:
Escrow deposits payable$1,339,715$690,178$810,542$1,219,351
Moon Valley Restoration Fund
Assets:
Cash and investments$86,478$174$ - $86,652
Liabilities:
Escrow deposits payable$86,478$174$ - $86,652
Totals - All Agency Funds
Assets:
Cash and investments$1,426,193$690,352$810,542$1,306,003
Liabilities:
Escrow deposits payable$1,426,193$690,352$810,542$1,306,003
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III. STATISTICAL SECTION (UNAUDITED)
- This page intentionally left blank -
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 118-126
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 128-133
significant local revenue source, the property tax.
Debt Capacity
These tables present information to help the reader assess the affordability of the 134-140
City’s current levels of outstanding debt and the City’s ability to issue additional
debt in the future.
Demographic and Economic
These tables offer demographic and economic indicators to help the reader 141-143
understand the environment within which the City’s financial activities take
place.
Operating Information
These tables contain service and infrastructure data to help the reader understand 144-148
how the information in the City’s financial report relates to the services the City
provides and the activities it performs.
Sources: Unless otherwise noted, the information in these tables is derived from the
comprehensive financial reports for the relevant year.
CITY OF CHANHASSEN, MINNESOTA
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2005200620072008
Governmental activities:
Net investment in capital assets$72,418,684$70,216,944$68,982,379$70,611,368
Restricted:
Debt service10,174,5027,687,15511,047,06212,165,653
Park improvements - - - -
Tax increment purposes1,049,0471,063,589797,064621,915
Other purposes - - - -
Unrestricted11,239,65816,220,83414,631,16615,171,391
Total governmental activities net position$94,881,891$95,188,522$95,457,671$98,570,327
Business-type activities:
Net investment in capital assets$37,479,967$47,807,323$52,502,257$55,541,752
Unrestricted23,767,12215,039,02117,292,10613,117,323
Total business-type activities net position$61,247,089$62,846,344$69,794,363$68,659,075
Primary government:
Net investment in capital assets$109,898,651$118,024,267$121,484,636$126,153,120
Restricted:
Debt service10,174,5027,687,15511,047,06212,165,653
Park improvements - - - -
Tax increment purposes1,049,0471,063,589797,064621,915
Other purposes - - - -
Unrestricted35,006,78031,259,85531,923,27228,288,714
Total primary government net position$156,128,980$158,034,866$165,252,034$167,229,402
Note: GASB 65 was implemented in 2013. Unamortized bond issuance costs are no longer included within net position.
Net position for years prior to 2013 was not restated.
Table 1
200920102011201220132014
$72,106,198$73,272,450$70,866,708$69,987,563$71,260,946$71,867,072
6,461,7809,655,9515,709,7275,905,5536,595,9273,441,810
- 2,088,2462,516,0271,650,1181,714,9721,751,739
840,857693,309812,0961,022,7851,347,593965,809
- 121,137168,147142,747165,838176,089
14,421,0428,348,96812,888,98014,544,11113,724,70513,877,772
$93,829,877$94,180,061$92,961,685$93,252,877$94,809,981$92,080,291
$55,496,919$57,028,340$55,430,138$54,475,353$52,541,451$54,111,608
12,129,04910,259,8369,484,94710,631,34211,391,33810,467,201
$67,625,968$67,288,176$64,915,085$65,106,695$63,932,789$64,578,809
$127,603,117$130,300,790$126,296,846$124,462,916$123,802,397$125,978,680
6,461,7809,655,9515,709,7275,905,5536,595,9273,441,810
- 2,088,2462,516,0271,650,1181,714,9721,751,739
840,857693,309812,0961,022,7851,347,593965,809
- 121,137168,147142,747165,838176,089
26,550,09118,608,80422,373,92725,175,45325,116,04324,344,973
$161,455,845$161,468,237$157,876,770$158,359,572$158,742,770$156,659,100
CITY OF CHANHASSEN, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2005200620072008
Expenses
Governmental activities:
General government$4,518,355$2,380,103$2,439,716$2,469,055
Public safety2,653,3042,851,9263,098,0683,062,941
Public works4,915,4357,722,4667,010,9816,220,816
Parks and recreation2,867,3642,918,6453,023,0323,025,987
Community development595,878868,7491,052,104704,979
Interest on long-term debt505,367751,964835,059652,015
Total governmental activities expenses16,055,70317,493,85317,458,96016,135,793
Business-type activities:
Water2,656,3812,754,2013,112,5753,234,139
Sewer2,719,1563,069,0693,177,3663,072,588
Surface water management1,039,7211,317,0891,238,9141,121,197
Total business-type activities expenses6,415,2587,140,3597,528,8557,427,924
Total primary government expenses$22,470,961$24,634,212$24,987,815$23,563,717
Program revenues
Governmental activities:
Charges for services:
Licenses and permits$2,166,022$3,612,021$2,171,558$1,810,545
Charges for services1,196,1031,218,8161,132,4481,115,903
Fines and forfeits104,962162,946145,682124,633
Operating grants and contributions361,093671,674452,798346,023
Capital grants and contributions5,080,5122,506,8227,464,6973,221,636
Total governmental activities program revenues8,908,6928,172,27911,367,1836,618,740
Business-type activities:
Charges for services:
Water1,703,5012,111,2302,461,2052,408,379
Sewer1,905,2062,008,3562,186,6222,187,209
Surface water management299,445424,702452,148479,318
Operating grants and contributions1,62053945,17236,350
Capital grants and contributions1,961,1222,501,5983,340,5981,527,624
Total business-type activities program revenues5,870,8947,046,4258,485,7456,638,880
Total primary government program revenues$14,779,586$15,218,704$19,852,928$13,257,620
Table 2
Page 1 of 2
200920102011201220132014
$2,597,147$2,898,608$2,565,486$2,690,853$2,630,405$3,099,004
3,158,4653,227,3963,061,1223,176,4413,313,6943,416,088
9,123,1656,308,0238,607,5347,743,14714,224,4539,604,525
3,663,1243,046,7182,921,5933,114,3402,919,1833,062,592
628,339879,048799,379646,262523,6511,043,848
1,031,567880,384838,421725,881588,352465,935
20,201,80717,240,17718,793,53518,096,92424,199,73820,691,992
3,311,1293,443,5833,581,9553,646,7874,702,6863,347,965
3,276,0423,252,5103,317,3293,235,3243,548,2003,171,696
1,093,1651,202,5561,173,1151,347,3451,334,1731,491,763
7,680,3367,898,6498,072,3998,229,4569,585,0598,011,424
$27,882,143$25,138,826$26,865,934$26,326,380$33,784,797$28,703,416
$1,085,754$1,331,374$1,381,326$1,595,358$2,113,770$1,691,634
1,064,1731,189,5601,047,7261,394,3561,396,0681,149,372
122,496123,609126,571119,99799,984100,516
363,540414,654692,428404,663472,298532,337
1,265,2874,175,6551,646,5732,953,49610,718,9993,296,748
3,901,2507,234,8524,894,6246,467,87014,801,1196,770,607
2,689,1702,424,6342,611,3273,146,8862,829,2262,573,027
2,378,1112,365,3582,297,6772,434,3702,358,8542,472,536
512,761538,688534,473590,323615,896639,087
5,3322,98412,589121,92563,112210,857
1,684,9821,593,2891,086,6551,861,6892,852,4372,633,793
7,270,3566,924,9536,542,7218,155,1938,719,5258,529,300
$11,171,606$14,159,805$11,437,345$14,623,063$23,520,644$15,299,907
CITY OF CHANHASSEN, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2005200620072008
Net (expense) revenue:
Governmental activities($7,147,011)($9,321,574)($6,091,777)($9,517,053)
Business-type activities(544,364)(93,934)956,890(789,044)
Total primary government net (expense) revenue(7,691,375)(9,415,508)(5,134,887)(10,306,097)
General revenues and other changes in net position
Governmental activities:
Property taxes9,451,1419,165,2789,419,7639,651,758
Tax increment collections675,117315,398420,526574,101
Grants and contributions not restricted to specific programs45,45528,592189,616108,039
Unrestricted investment earnings387,370905,9301,397,7461,150,993
Miscellaneous93,79234,644 - -
Gain on sale of capital assets23,795 - 10,80632,195
Special item - sale of public works building - - - -
Transfers(481,824)(821,637)(5,077,531)1,112,623
Total governmental activities10,194,8469,628,2056,360,92612,629,709
Business-type activities:
Unrestricted investment earnings466,750768,600786,455797,079
Miscellaneous46,100102,952127,14322,464
Transfers481,824821,6375,077,531(1,112,623)
Total business-type activities994,6741,693,1895,991,129(293,080)
Total primary government$11,189,520$11,321,394$12,352,055$12,336,629
Change in net position:
Governmental activities$3,047,835$306,631$269,149$3,112,656
Business-type activities450,3101,599,2556,948,019(1,082,124)
Total primary government$3,498,145$1,905,886$7,217,168$2,030,532
Note: GASB 65 was implemented in 2013. Bond issuance costs are now expensed in the year of issuance. Expenses
for years prior to 2013 were not restated.
Table 2
Page 2 of 2
200920102011201220132014
($16,300,557)($10,005,325)($13,898,911)($11,629,054)($9,398,619)($13,921,385)
(409,980)(973,696)(1,529,678)(74,263)(865,534)517,876
(16,710,537)(10,979,021)(15,428,589)(11,703,317)(10,264,153)(13,403,509)
9,921,59810,014,6849,849,88210,064,17610,059,32410,482,273
473,674539,523566,045533,011545,906307,940
27,61245,76728,30420,07119,94119,736
357,953222,719505,541173,523(14,764)183,602
- - - - - -
4,52420,72744,00056,61037,720191,755
- - - 1,246,275 - -
774,746(487,911)1,061,763(173,420)307,5966,389
11,560,10710,355,50912,055,53511,920,24610,955,72311,191,695
141,070114,349211,70792,453(776)134,533
10,54933,6446,643 - - -
(774,746)487,911(1,061,763)173,420(307,596)(6,389)
(623,127)635,904(843,413)265,873(308,372)128,144
$10,936,980$10,991,413$11,212,122$12,186,119$10,647,351$11,319,839
($4,740,450)$350,184($1,843,376)$291,192$1,557,104($2,729,690)
(1,033,107)(337,792)(2,373,091)191,610(1,173,906)646,020
($5,773,557)$12,392($4,216,467)$482,802$383,198($2,083,670)
CITY OF CHANHASSEN, MINNESOTA
FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2005200620072008
General Fund:
Reserved$20,239$17,376$13,210$21,173
Unreserved:
Designated3,199,8003,279,0503,416,9503,586,750
Undesignated3,731,0231,523,8442,061,1261,273,796
Nonspendable - - - -
Unassigned - - - -
Total general fund$6,951,062$4,820,270$5,491,286$4,881,719
All other governmental funds:
Reserved$6,597,316$5,300,782$7,335,225$6,671,271
Unreserved:
Designated:
Special revenue funds489,370431,665548,438525,692
Capital project funds4,114,82013,458,6979,934,93618,732,625
Undesignated:
Special revenue funds -25,020 - -
Debt service funds3,403,769148,784215,298237,721
Capital project funds(738,510)(214,183)(239,434)(11,584)
Nonspendable - - - -
Restricted - - - -
Assigned - - - -
Unassigned - - - -
Total all other governmental funds$13,866,765$19,150,765$17,794,463$26,155,725
The City implemented GASB Statement No. 54 for the fiscal year ended December 31, 2011.
Information for years prior to 2011 is presented in accordance with fund balance classifications in effect at that time.
Table 3
200920102011201220132014
$46,750$55,826$ - $ - $ - $ -
3,690,0003,754,000 - - - -
1,137,1091,459,792 - - - -
- - 17,28057,13716,74158,333
- - 5,278,1185,434,6415,274,5845,550,732
$4,873,859$5,269,618$5,295,398$5,491,778$5,291,325$5,609,065
$2,950,284$5,642,029$ - $ - $ - $ -
668,9922,082,929 - - - -
11,418,0067,487,198 - - - -
- - - - - -
342,877356,724 - - - -
(2,001,149)(786,209) - - - -
- - 12,6621,373,1461,327,0681,289,575
- - 10,426,5856,359,4229,181,2305,724,419
- - 6,561,4116,731,4006,366,2925,951,507
- - (730,120)(646,856)(559,515)(475,352)
$13,379,010$14,782,671$16,270,538$13,817,112$16,315,075$12,490,149
CITY OF CHANHASSEN, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Revenues:2005200620072008
General property taxes$9,417,527$9,140,601$9,403,109$9,582,333
Tax increment collections675,798$315,398$420,526$574,101
Licenses and permits2,166,0223,727,2972,171,5581,810,545
Intergovernmental1,244,6562,171,5651,148,0342,147,970
Special assessments1,113,9221,922,9443,922,517623,893
Charges for services863,958899,015738,669841,209
Fines and forfeits104,962162,946145,682124,633
Investment income387,370905,9301,397,7461,150,993
Contributions and donations71,19843,94947,42843,410
Refunds and reimbursements - - - 51,247
Other430,171279,549404,426238,030
Total revenues16,475,584 19,569,194 19,799,695 17,188,364
Expenditures:
Current:
General government2,722,1712,090,5652,116,9282,102,512
Public safety2,547,6762,656,9232,924,7512,885,296
Public works2,367,6524,425,2373,735,9502,786,397
Parks and recreation1,658,2001,877,1091,848,8801,933,353
Community development372,938451,092841,306468,819
Capital outlay:
General government311,25098,3966,734233,600
Public safety10,26538,593505,21554,284
Public works2,334,5776,431,5946,693,3874,677,179
Parks and recreation462,794377,3671,491,848642,508
Debt service:
Principal 2,035,0001,375,0001,750,0002,689,552
Interest and paying agent fees691,230591,614769,212874,848
Bond issuance costs - 36,987 - 93,811
Developer assistance230,353111,791206,753226,055
Other897,523300,000 - -
Total expenditures16,641,629 20,862,268 22,890,964 19,668,214
Revenues over (under) expenditures(166,045)(1,293,074)(3,091,269)(2,479,850)
Other financing sources (uses):
Bonds issued2,590,0006,640,000 - 7,550,000
Loans issued105,419708,0033,014,74424,839
Bond premium (discount) - (44,610) - -
Redemption of refunding bonds - (3,560,000) - -
Transfers in338,080702,889537,5642,646,011
Transfers out - - (1,163,065) -
Sale of capital assets23,795 - 16,74010,695
Special item - sale of old public works building - - - -
Total other financing sources (uses)3,057,294 4,446,282 2,405,983 10,231,545
Net change in fund balance$2,891,249$3,153,208($685,286)$7,751,695
Debt service as a percentage of
noncapital expenditures22.0%14.8%18.0%26.4%
Debt service as percentage of
total expenditures16.4%9.6%11.0%18.6%
Table 4
200920102011201220132014
$9,834,389$10,141,168$9,760,052$10,143,011$10,176,483$10,489,350
473,674539,523566,045533,011545,906307,940
1,085,7541,331,3741,381,3261,595,3582,113,7701,691,634
397,438401,5501,425,5252,151,7857,971,3392,553,062
540,151790,4261,242,0401,667,8813,193,078854,966
950,760923,550795,616880,920907,414798,578
122,496123,609126,571119,99799,984100,516
357,953222,719505,541173,523(14,764)183,602
47,20658,01650,68536,89333,15966,918
61,707132,616117,441253,030235,36377,871
170,688213,272846,523264,038259,703265,119
14,042,216 14,877,823 16,817,365 17,819,447 25,521,435 17,389,556
2,070,6982,525,3262,162,4792,326,4902,274,6402,350,437
2,979,0443,077,0382,896,6443,013,9803,179,4463,258,363
5,710,8042,739,7044,779,0673,726,15810,628,1405,352,221
2,487,9851,901,5641,906,4892,154,7142,002,6042,164,703
527,919698,818502,916621,295522,5381,034,047
143,663473,753129,53575,22687,70734,080
55,15265,66752,64539,31474,14423,980
8,179,3243,995,4442,122,6413,502,3712,482,7282,894,237
235,292490,737309,5241,310,366627,214485,107
2,553,0022,370,0001,025,0005,100,0001,590,0004,190,000
920,529888,843853,152814,621599,487518,722
73,18246,505 - - - -
90,354176,643298,21621,108 - -
- - - - - -
26,026,948 19,450,042 17,038,308 22,705,643 24,068,648 22,305,897
(11,984,732)(4,572,219)(220,943)(4,886,196)1,452,787 (4,916,341)
6,020,0005,200,000 - - - -
- - - - - -
226,99135,964 - - - -
(8,387,123) - - - - -
1,324,0151,105,0001,734,5901,203,031888,7111,783,719
- - - (48,881)(43,988)(676,095)
16,27430,675 - - - 301,531
- - - 1,475,000 - -
(799,843)6,371,639 1,734,590 2,629,150 844,723 1,409,155
($12,784,575)$1,799,420$1,513,647($2,257,046)$2,297,510($3,507,186)
20.5%23.2%13.3%33.3%10.5%25.0%
13.6%17.0%11.0%26.0%9.1%21.1%
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
2005$22,438,051$178,598$6,054,042$388,885$29,059,576
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
200930,741,292190,8449,665,269471,74941,069,154
201030,301,115170,85710,229,329477,66341,178,964
201128,951,885131,7519,778,491511,18539,373,312
201227,198,238137,0129,149,904520,74337,005,897
201326,970,557105,1608,927,095541,61236,544,424
201428,725,937132,7288,984,174613,10538,455,944
Sources: Carver County Taxpayer Services and Hennepin County
Table 5
Captured Tax
Capacity onFiscalAdjustedCityEstimatedTax Capacity
Tax IncrementDisparityTax CapacityDirect TaxMarketas a Percent
DistrictContributionValueRateValueof EMV
($619,902)$60,354$28,500,02828.11800$2,552,120,2001.12%
(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%
(473,702)(1,627,749)38,967,70322.993003,501,886,8001.11%
(532,007)(1,861,362)38,785,59525.183003,491,841,8001.11%
(509,863)(1,998,912)36,864,53726.602563,350,141,8001.10%
(469,759)(2,038,437)34,497,70128.532113,153,275,0001.09%
(435,999)(1,804,630)34,303,79528.428383,118,066,7001.10%
(252,884)(1,971,928)36,231,13227.238623,294,605,0001.10%
CITY OF CHANHASSEN, MINNESOTA
Table 6
DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES
Last Ten Fiscal Years
CityOverlapping Rates
FiscalDirectSchoolCarver
(1)
YearRateDistrict #112CountyOtherTotal
Tax capacity rates (per $100 of adjusted tax capacity value)
200528.1180033.2990044.107005.56000111.08400
200626.6380032.8080040.836005.30500105.58700
200723.7880035.8310037.802005.13200102.55300
200823.7130035.9700037.563005.54700102.79300
200922.9930035.5050038.033005.45800101.98900
201025.1830035.8400039.509005.63900106.17100
201126.6025640.2355441.751636.02059114.61032
201228.5321144.3824743.562396.68081123.15778
201328.4283845.3194646.115406.60329126.46653
201427.2386244.9172745.210556.87257124.23901
Source: Carver County Taxpayer Services
(1)
The City Direct Rate is the Urban based rate, not including Market Value levies.
CITY OF CHANHASSEN, MINNESOTA
Table 7
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
20142005
Percentage Percentage
Taxableof Total CityTaxableof Total City
CapacityCapacityCapacityCapacity
TaxpayerValueRankValueValueRankValue
Istar Minnesota LLC$388,01611.1%$261,42821.0%
IRET Properties369,50421.0%257,92430.9%
Rosemount Inc312,58630.8%276,80211.0%
Northern States Power Co265,46440.7%213,34240.8%
LTF Real Estate VRDN I LLC239,20250.6% - - -
LTF Real Estate CBC I (Chan Club) LLC204,91660.6% - - -
PHM/Chanhassen Inc202,26670.5% - - -
DRF Chanhassen Medical Bldg194,88880.5% - - -
Target Corporation T-0862194,42290.5%145,47270.5%
Centerpoint Energy Minnegasco176,442100.5% - -0.0%
McGlynn Bakeries Inc #366 - - 207,488 50.8%
Park Avenue Lofts LLC - 0.0%147,92860.5%
Emplast Inc - - 134,610 80.5%
Bloomberg Companies Inc - - 128,916 90.5%
Market Square Assoc Ltd Partnership - - 125,308 100.5%
Total$2,547,7066.9%$1,899,2186.9%
Total All Property $36,823,088$27,217,125
Source: Carver County Taxpayer Services
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CITY OF CHANHASSEN, MINNESOTA
Table 8
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
FiscalTaxesCollectionsCollected Within The
YearLeviedFiscal Year of the LevyinTotal Collections to Date
EndedFor ThePercentageSubsequentPercentage
December 31,Fiscal YearAmountof LevyYearsAmountof Levy
2005$9,439,754$9,124,03096.7%$120,936$9,244,96697.9%
20069,354,8909,066,59196.9%90,3329,156,92397.9%
20079,575,7789,447,69298.7%114,9389,562,63099.9%
20089,834,9659,555,48997.2%144,8299,700,31798.6%
200910,074,5659,668,71396.0%155,5629,824,27597.5%
201010,213,1909,918,52897.1%(22,702)9,895,82696.9%
201110,267,3909,739,12594.9%180,7049,919,82996.6%
201210,153,69010,005,87798.5%46,49210,052,37099.0%
201310,195,89010,105,39399.1%22,40510,127,79899.3%
201410,334,14010,269,51899.4% - 10,269,51899.4%
Source: City Finance Department
CITY OF CHANHASSEN, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Governmental Activities
GeneralGeneral
FiscalObligationRevenueTax IncrementImprovement
YearBondsBondsBondsBonds
2005$12,215,000$705,000$1,170,000$3,325,000
20068,170,000620,0001,120,0009,210,000
20077,315,000530,0001,070,0008,455,000
200813,905,000435,0001,015,0007,155,000
200913,045,000335,000960,0006,625,000
201016,860,000230,000900,0005,805,000
201116,195,000120,000840,0005,615,000
201211,475,000 -775,0005,420,000
201310,155,000 -705,0005,220,000
20149,550,000 -635,0001,705,000
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1)Information pertaining to Chanhassen Personal Income is not available, information for Carver County was
included instead.
(a) Information not available
Table 9
Business-TypeBonded Debt
ActivitiesPer Total
Carver County
OtherG.O. RevenueDebtPersonal
(1)
Income
DebtBondsTotal DebtPer Capita
$105,419$15,545,000$33,065,419$1,3860.9%
813,42214,820,00034,753,4221,4550.8%
3,828,16613,915,00035,113,1661,4440.8%
3,375,12512,415,00038,300,1251,5640.8%
-11,695,00032,660,0001,3220.7%
-10,955,00034,750,0001,5140.7%
-20,077,33942,847,3391,8490.8%
-20,578,31338,248,3131,6290.7%
-16,324,28732,404,2871,3530.5%
-10,045,26121,935,261899(a)
CITY OF CHANHASSEN, MINNESOTA
Table 10
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
Last Ten Fiscal Years
Net General
GeneralG.O. TaxG.O.G.O.Total GeneralLess AmountsNet GeneralPercentageObligation
FiscalObligationIncrementImprovementRevenueObligationRestricted forObligationof TaxBonded Debt
YearBondsBondsBondsBonds Bonded DebtDebt Service Bonded DebtCapacityPer Capita
2005$12,215,000$1,170,000$3,325,000$15,545,000$32,255,000$10,174,502$22,080,49879.16%$925
20068,170,0001,120,0009,210,00014,820,00033,320,0007,687,15525,632,84584.13%1,073
20077,315,0001,070,0008,455,00013,915,00030,755,00011,047,06219,707,93856.65%810
200813,905,0001,015,0007,155,00012,415,00034,490,00012,165,65322,324,34759.56%912
200913,045,000960,0006,625,00011,695,00032,325,0006,461,78025,863,22066.29%1,047
201016,860,000900,0005,805,00010,955,00034,520,0009,217,25425,302,74664.55%1,102
201116,195,000840,0005,615,00020,077,33942,727,33916,998,40125,728,93868.61%1,110
201211,475,000775,0005,420,00020,578,31338,248,31313,020,20625,228,10771.80%1,074
201310,155,000705,0005,220,00016,324,28732,404,28710,266,36622,137,92163.62%924
20149,550,000635,0001,705,00010,045,26121,935,2613,441,81018,493,45150.09%758
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
CITY OF CHANHASSEN, MINNESOTA
Table 11
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
December 31, 2014
Estimated
EstimatedShare of
DebtPercentageOverlapping
Governmental UnitOutstandingApplicable*Debt
Direct debt:
(1)
City of Chanhassen
$11,890,000100.00%$11,890,000
Overlapping debt:
Eastern Carver County School District226,215,00041.15%93,087,473
Eden Prairie Independent School District52,979,5201.05%556,285
Minnetonka Independent School District95,419,3470.00% -
Carver County27,620,00033.73%9,316,226
Hennepin County753,266,8800.07%527,287
Hennepin Suburban Park District52,209,0490.09%46,988
Hennepin Regulatory Railroad Authority35,200,1570.09%31,680
Metropolitan Council93,953,7390.04%37,581
Subtotal - overlapping debt1,336,863,692103,603,520
Total direct and overlapping debt$1,348,753,692$115,493,520
(1)
Excludes debt related to the City's business-type activities.
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents
and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term
debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not
imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
*For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed
property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable
assessed value that is within the City's boundaries and dividing it by each unit's total taxable assessed value.
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CITY OF CHANHASSEN, MINNESOTA
Table 12
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2014
Market value$3,294,605,000
Applicable percentage3%
Debt limit98,838,150
Debt applicable to limit:
Total bonded debt21,935,261
Less:
Special assessment bonds(1,705,000)
Tax increment bonds(635,000)
Enterprise Fund debt(10,045,261)
Less:
Cash and investments in G.O. Bond Debt Service Fund(1,519,047)
8,030,953
Legal debt margin$90,807,197
Legal Debt Margin Calculation for Fiscal Years 2005 Through 2014
Net Debt
Net DebtLegalAmount of DebtApplicable
FiscalDebtApplicable toDebtApplicable toto Limit
YearPopulationLimitLimitMarginDebt LimitPer Capita
200523,864$51,042,404$8,150,626$42,891,77815.97%$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
200924,699105,056,60411,175,08693,881,51810.64%452
201022,952104,755,25415,831,83188,923,42315.11%690
201123,179100,504,25414,755,25885,748,99614.68%637
201223,48494,598,25010,117,34784,480,90310.70%431
201323,95493,542,0018,705,95884,836,0439.31%363
201424,38898,838,1508,030,95390,807,1978.13%329
CITY OF CHANHASSEN, MINNESOTA
Table 13
PLEDGED REVENUE COVERAGE
Last Ten Fiscal Years
Improvement Bonds
Special
FiscalAssessmentDebt Service
YearCollectionsPrincipalInterestCoverage
2005$1,113,922$870,000$139,0591.104
20061,922,944755,000103,8132.239
20073,922,517755,000360,8523.515
2008623,8911,300,000287,7270.393
2009540,1481,220,000142,9630.396
2010790,4221,050,000230,0840.617
20111,242,038330,000185,7332.408
20121,527,253595,000178,1151.975
20133,193,076970,000164,2202.815
2014854,9663,515,000103,8750.236
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
CITY OF CHANHASSEN, MINNESOTA
Table 14
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
Carver CountyCarver County
ChanhassenCarver CountyPersonalPer Capita
FiscalChanhassenUnemploymentUnemploymentIncomePersonal
(1)(2)(2)(3)(3)
PopulationRateRate(Thousands)Income
Year
200523,8642.6%3.4%$3,829,211$45,992
200623,8892.7%3.3%4,120,12048,100
200724,3212.9%4.0%4,569,44452,360
200824,4813.6%4.9%4,831,65354,403
200924,6995.8%7.0%4,641,84251,438
201022,9526.1%6.8%4,939,62954,079
201123,1794.9%5.6%5,439,07358,589
201223,4844.5%4.8%5,826,21762,068
201323,9544.1%4.3%5,930,65362,061
201424,3883.3%3.6%(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.
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CITY OF CHANHASSEN, MINNESOTA
Table 15
PRINCIPAL EMPLOYERS
(1)
Current Year and Eight Years Ago
20142006
PercentagePercentage
of Total Cityof Total City
(2)(2)
EmployerEmployeesRankEmploymentEmployeesRankEmployment
Rosemount Inc1,376124.5%1,200124.4%
Lifetime Fitness1,166220.8% - -
Instant Web Companies1,120319.9%548411.1%
Eastern Carver County Schools41047.3% - -
RR Donnelley38256.8%32466.6%
General Mills30065.3%600312.2%
Minnesota Landscape Arboretum24074.3%24094.9%
Chanhassen Dinner Theatres23784.2%30076.1%
Exlar Corporation21093.7% - -
Target175103.1% - -
Super Value Headquarters - -900218.3%
Entegris - -35057.1%
Byerly's - -28085.7%
ABC/Lyman Lumber - -175103.6%
Total5,6164,917
Source: Survey by City Administration and Finance Departments
(1)
Principal employer information prior to 2006 is not available
(2)
The statistic for total City employment is not available, therefore the percentage represents the percentage of
the top ten listed.
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/Program200520062007
General government121213
Public safety333
Public works252626
Parks & recreation111111
Community development171716
Total686969
Source: City Finance Department
Table 16
Full-Time Equivalent Employees as of December 31,
2008200920102011201220132014
13131313131313
3333333
26262626262626
11111111111111
16161515141414
69696868676767
CITY OF CHANHASSEN, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Fiscal Year
Function/Program200520062007
Building:
Total permits issued2,8843,1653,013
Total estimated value$71,357,132$106,223,825$125,865,426
Election:
Registered voters15,63215,31915,319
Fire:
Average number of employees434444
General government:
Area of city - square miles23.7823.7823.78
Average number of permanent full-time
employees (excluding fire department)686969
Police:
Average number of employees131313
Number of major crimes1,0681,2971,202
Water:
Number of customers6,8726,7526,804
Daily average consumption - gallons2,571,8433,163,8643,031,400
Plant capacity - gallons8,650,0008,650,0008,650,000
Source: Various City Departments
Table 17
Fiscal Year
2008200920102011201220132014
2,8382,6082,9103,3973,2853,2013,076
$124,885,965$67,811,817$65,046,933$82,991,029$83,531,808$89,370,069$80,591,941
16,54416,54415,32615,32616,91616,91616,344
45454547484848
23.7823.7823.7823.7823.7823.7823.79
69696868676767
14151515151515
1,013702647757777748838
7,0397,4277,6207,6557,7417,9538,075
3,200,0003,642,4102,698,5592,257,5422,570,3492,876,3832,524,413
8,650,0008,650,0008,650,0008,650,0008,650,0008,650,0008,650,000
CITY OF CHANHASSEN, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Fiscal Year
Function/Program200520062007
Fire:
Number of stations222
Parks and recreation:
Acres of parks375375383
Acres of open space365365434
Number of shelter buildings333
Number of picnic shelters445
Number of playgrounds252526
Number of swimming beaches446
Number of tennis courts171717
Number of outdoor pickleball courts - - -
Police:
Number of stations111
Public works:
Miles of streets102.5103.8106.2
Miles of sidewalks24.725.526.9
Miles of trails42.043.047.2
Sewer:
Miles of storm sewers62.764.266.2
Miles of sanitary sewers115.4116.9119.6
Number of lift stations303131
Water:
Miles of watermains120.8123.4126.0
Number of wells81011
Table 18
Fiscal Year
2008200920102011201220132014
2222222
383383396396401401405
434434434489503503503
3444444
5555567
26262626262728
6655555
17171717151515
- - - - 236
1111111
107.0110.9111.9112.0112.6113.5113.7
28.431.131.931.931.931.932.0
53.053.653.656.156.458.659.2
67.169.571.074.575.376.577.0
120.8123.0123.6123.7123.9124.3124.5
31313131313131
129.6135.1136.8137.8138.0139.1139.3
12121212121212
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IV. OTHER INFORMATION (UNAUDITED)
CITY OF CHANHASSEN, MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS
December 31, 2014
Final
InterestIssueMaturity
Bonded indebtedness:RatesDateDate
General obligation bonds:
G.O. Capital Improvement Plan Bonds, Series 2008A4.00%-4.60%11/18/0802/01/30
G.O. Library Refunding Bonds, Series 2010A2.00%-3.10%01/27/1002/01/22
Total general obligation bonds
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 2009A3.00%06/03/0902/01/17
Enterprise Fund debt:
G.O. Water Revenue Bonds, Series 2004B4.00%-4.50%08/10/0402/01/25
G.O. Water Revenue Bonds, Series 2011A0.30%-2.15%10/06/1102/01/22
G.O. Water Revenue Refunding Bonds, Series 2011B2.00%-3.00%10/06/1102/01/25
G.O. Water and Sewer Revenue Bonds, Series 2012A1.00%-1.55%11/15/1202/01/23
Total Enterprise Fund debt
Total City bonded indebtedness
Exhibit 1
Prior Years2014PayablePayablePrincipal
OriginalJanuary 1,December 31,Due in
IssuePayments2014IssuedPayments20142015
$7,550,000$770,000$6,780,000$ - $275,000$6,505,000$285,000
3,660,000285,0003,375,000 - 330,0003,045,000340,000
11,210,0001,055,00010,155,0000605,0009,550,000625,000
1,170,000465,000705,000 - 70,000635,00075,000
6,020,000800,0005,220,000 - 3,515,0001,705,000550,000
7,930,0002,425,0005,505,000 - 5,505,000 - -
5,920,000220,0005,700,000 - 645,0005,055,000655,000
3,720,000 - 3,720,000 - - 3,720,000 -
1,245,000 - 1,245,000 - 115,0001,130,000120,000
18,815,0002,645,00016,170,00006,265,0009,905,000775,000
$37,215,000$4,965,000$32,250,000$ - $10,455,000$21,795,000$2,025,000
CITY OF CHANHASSEN, MINNESOTA
Exhibit 2
DEBT SERVICE PAYMENTS TO MATURITY
GENERAL OBLIGATION BONDS - GOVERNMENTAL ACTIVITIES
December 31, 2014
G.O. Tax
G.O. CapitalG.O. LibraryIncrementG.O.
ImprovementRefundingRefundingImprovement
Plan Bonds,BondsBonds,Bonds,
Series 2008ASeries 2010ASeries 2004CSeries 2009ATotal
Bonds payable$6,505,000$3,045,000$635,000$1,705,000$11,890,000
Future interest payable2,562,053381,188138,12877,9253,159,294
$9,067,053$3,426,188$773,128$1,782,925$15,049,294
Payments to maturity:
2015$558,168$423,680$109,005$592,900$1,683,753
2016556,568420,543109,895591,1751,678,181
2017559,468425,830110,440598,8501,694,588
2018561,768424,880110,580 - 1,097,228
2019558,484433,480110,308 - 1,102,272
2020564,423431,630109,600 - 1,105,653
2021564,468429,480113,300 - 1,107,248
2022563,705436,665 - - 1,000,370
2023567,014 - - - 567,014
2024569,270 - - - 569,270
2025570,454 - - - 570,454
2026570,545 - - - 570,545
2027574,413 - - - 574,413
2028572,035 - - - 572,035
2029578,275 - - - 578,275
2030577,995 - - - 577,995
$9,067,053$3,426,188$773,128$1,782,925$15,049,294
CITY OF CHANHASSEN, MINNESOTA
Exhibit 3
DEBT SERVICE PAYMENTS TO MATURITY
GENERAL OBLIGATION REVENUE BONDS
December 31, 2014
G.O. WaterG.O. WaterG.O. Water &
RevenueRevenueSewer Revenue
Bonds, SeriesBonds, SeriesBonds, Series
2011A2011B2012ATotal
Bonds payable$5,055,000$3,720,000$1,130,000$9,905,000
Future interest payable318,837815,10065,7281,199,665
$5,373,837$4,535,100$1,195,728$11,104,665
Payments to maturity:
2015$722,923$106,000$132,540$961,463
2016718,501135,700131,340985,541
2017722,060135,100130,140987,300
2018728,813134,500133,915997,228
2019733,663569,500132,6651,435,828
2020731,758567,600131,3211,430,679
2021738,163572,900134,7581,445,821
2022277,956572,675133,003983,634
2023 - 576,925136,046712,971
2024 - 580,575 - 580,575
2025 - 583,625 - 583,625
$5,373,837$4,535,100$1,195,728$11,104,665
CITY OF CHANHASSEN, MINNESOTA
Exhibit 4
SCHEDULE OF DEFERRED TAX LEVIES
December 31, 2014
G.O.
LibraryG.O. CapitalTotalImprovementG.O. StreetTotalTotal
Years ofBondsImprovementGeneralRefundingReconstructionGeneralDeferred
Levy/of 2002A/Plan BondsBondedBondsBondsImprovementTax
Collection2010Aof 2008ADebtof 2009Aof 2010BondsLevies
2014/2015$446,098$590,600$1,036,698$232,300$55,000$287,300$1,323,998
2015/2016452,792594,0001,046,792240,700 - 240,7001,287,492
2016/2017451,952596,7001,048,652 - - - 1,048,652
2017/2018461,297593,6001,054,897 - - - 1,054,897
2018/2019459,512600,3001,059,812 - - - 1,059,812
2019/2020457,412600,8001,058,212 - - - 1,058,212
2020/2021465,497600,4001,065,897 - - - 1,065,897
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
$3,194,560$9,075,400$12,269,960$473,000$55,000$528,000$12,797,960