2015 Annual Financial ReportComprehensive Annual
Financial Report
For the Fscal Year Ended December 31, 2015. City of Chanhassen, Minnesota
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE CITY OF CHANHASSEN, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2015
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
Reference No.
I. INTRODUCTORY SECTION
Letter of Transmittal 3
Certificate of Achievement 6
Organization Chart 7
Organization 8
II. FINANCIAL SECTION
Independent Auditor's Report 11
Management's Discussion and Analysis 15
Basic Financial Statements:
Government -Wide Financial Statements:
Statement of Net Position Statement 1 31
Statement of Activities Statement 2 32
Fund Financial Statements:
Balance Sheet - Governmental Funds
Statement 3
34
Statement of Revenues, Expenditures and Changes in Fund Balances -
Statement 10
88
Governmental Funds
Statement 4
36
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds To the Statement of Activities
Statement 5
38
Statement of Net Position - Proprietary Funds
Statement 6
39
Statement of Revenues, Expenses and Changes in Fund Net Position -
Proprietary Funds
Statement 7
40
Statement of Cash Flows - Proprietary Funds
Statement 8
41
Statement of Net Position - Fiduciary Funds
Statement 9
42
Notes to Financial Statements 43
Required Supplementary Information:
Budgetary Comparison Schedule - General Fund
Statement 10
88
Schedule of Funding Progress - Retiree Health Plan
Statement 11
94
Schedule of Proportionate Share of Net Pension Liability - General Employees
Retirement Fund
Statement 12
95
Schedule of Pension Contributions - General Employees Retirement Fund
Statement 13
96
Schedule of Proportionate Share of Net Pension Liability - Public Employees Police
and Fire Fund
Statement 14
97
Schedule of Pension Contributions - Public Employees Police and Fire Fund
Statement 15
98
Schedule of Changes in the Net Pension Liability and Related Ratios -
Chanhassen Fire Department Relief Association
Statement 16
99
Schedule of Contributions - Chanhassen Fire Department Relief Association
Statement 17
100
Notes to RSI
101
CITY OF CHANHASSEN, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
Combining and Individual Nonmajor Fund Financial Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds Statement 18 108
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Governmental Funds Statement 19 109
Subcombining Balance Sheet - Nonmajor Special Revenue Funds
Statement 20
112
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Special Revenue Funds
Statement 21
113
Subcombining Balance Sheet - Nonmajor Debt Service Funds
Statement 22
116
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Debt Service Funds
Statement 23
117
Subcombining Balance Sheet - Nonmajor Capital Project Funds
Statement 24
121
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Capital Project Funds
Statement 25
125
Special Revenue Funds:
Schedules of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual:
Contribution Fund Statement 26 128
CATV Statement 27 129
Combining Statement of Net Position - Agency Funds Statement 28 132
Combining Statement of Changes in Assets and Liabilities - Agency Funds Statement 29 133
III. STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Position by Component Table 1 138
Changes in Net Position Table 2 140
Fund Balances - Governmental Funds Table 3 144
Changes in Fund Balances - Governmental Funds Table 4 146
Revenue Capacity:
Tax Capacity and Estimated Market Value of Taxable Property Table 5 148
Direct and Overlapping Property Tax Capacity Rates Table 6 150
Principal Property Taxpayers Table 7 151
Property Tax Levies and Collections Table 8 153
Debt Capacity:
Ratios of Outstanding Debt by Type Table 9 154
Ratios of General Bonded Debt Outstanding Table 10 156
Direct and Overlapping Governmental Activities Debt Table 11 157
Legal Debt Margin Information Table 12 158
Pledged Revenue Coverage Table 13 159
CITY OF CHANHASSEN, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
Demographic and Economic:
Demographic and Economic Statistics Table 14 160
Principal Employers Table 15 161
Operating Information:
Full -Time Equivalent City Government Employees by Function/Program Table 16 162
Operating Indicators by Function/Program Table 17 164
Capital Asset Statistics by Function/Program Table 18 166
IV. OTHER INFORMATION (UNAUDITED)
Combined Schedule of Indebtedness
Exhibit 1
170
Debt Service Payments to Maturity:
General Obligation Bonds - Governmental Activities
Exhibit 2
172
General Obligation Revenue Bonds
Exhibit 3
173
Schedule of Deferred Tax Levies
Exhibit 4
174
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I. INTRODUCTORY SECTION
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U00 Mad<el 30Ui0VaI'd To tll(..,, honorable Mayor and ( 'ily CMUnCil
("ily of Cllanllassen
110 liox IV
Chanhassen, Minnesota
Wehsa llle
1v1Mv.(J che11 lilassel � Infuis
Chanhassen iii as Cominmore fly loiir l Re rlro0d�ng for f0drJy',Cd 101 -10IT101 MW
TlI
The Comprehensive AnIIUJI FiMICial Report of City ol"(111mlillassell, Minnesota (tile, City)
Mh6lnmliralioin
for the fiscal year ended Dk-,ceinbcr 31, 2015 is liciet)y submitted. This report was prepared I )y
110110:1152 22l 1100
11 ik.° Chanhassen ('inance Department and ;esponsibi I ity for both the accuracy ofthe prescuted
Fu952. A`%1,1.1110
data and the and Hairless ofthe. Presentation, illOkiding all diSCIOSUI-CS, SUf)l)()Ftiug
schedules and statistical tables rests with the ity. We believe the data, as presented, is accurate
BWMng Ikispecfions
in all inaterial icspecLs; that it is presented in a alanner designed to fairly set forth the financial
:1 onof11iL321.1180
position and Jesulls of operati kills of the` City as measured by the Imanciat activity OfjtS VaTjOUS
Fax. 952-22Z 1190
funds; and that all disclosures necessary to enable', the reader to gair) IIIe MaXinIUM UrldC'TS&IIIdlrlg
Of'the City's finallui3i 'ciff"'In'S 1MVe been included.
Bnq�ineerung
'I tic, organization, forill, and contents of'llus report wej c pi cf-)ared in accordance with the
M ione! 1i;':,P.M3 1160
stan(huds prescribed by the (J'overnirienral ACCOLUltitig Standards Board, the (Joverninclit
NX: 9V 1110
Finance Officeis Association oifth(..7 f hlited States and Canada (GFOA), the American Institute
of'Ceilificol public Accountants, Minnesota's Office ol'the State Auditor and City policies.
Rinance
None: 952 2211140
'1 his transmittal leiter is designed to complement the, Management's DiSCUSSion and Analysis
t ax: 952 ?1(1'110
(ML)&A) and Should be read in conjunction with it. The MD&A can be fOUnd unniudiatcly
following the report of tide independent audiurs
Pair& Recreafion
Vllone: 952 1W.N,10
Rcporfing 1,,ntity and Its Scrvrces
t ax:: 952.2211110
This report includes all funds, account groups, and departments of City (the primary
government) and its cornporlOni Unit. City provides a full range of: services to its residents
Recireaftn Cenler
and businesses including general government, public safety (police and fire protection), public
2310 (,mfltei&uievai,d
Work's (engineering, streets, and equipment maintenance), parks and recreational activities,
Mule: Y)1,M,1400
planning and c.cononric developl-laent. In addition to general ll-runicipal services,, the City
I �ax: 95? 1-) 114 Od
provides watei and sanitary sewer service and oversight (through licensing) of the refuse and
recycling services. In accondance with the reporting entity definition of the Governmental
Ma rvNing &
Accounting Standards Board, the City has included the Chanhassen Economic Development
er
Mahmrai Rsouces
Authority (FDA) in these financial statements as a blended component unit.The EDA is
II'ioii(a: 9152,M,1130
governed by five commissioners appointed by the City C,C)LInCil with the ity Manager as
1 rix 952,2�,1,MO
executive director. Thc Chanhassen Fire Relief Association has been excluded from this report
because it is governed by a board elected by its Yncinbers and it is not fiscally dependent upon
the City. The Western Area fire Training Association (WAFTA) is governed by an eleven-
PublHc Works
person board comprised of one member- appointed by eacli jurisdiction who is a party to the join(
/901 Par[( 1Maco,
powers agreement, Although the City is jointly responsible for the maintenance and cleanup
Vlioiie: 95222N300
costs of the training site in rural Carver County, we do not exercise substantial control oftfic
rm: 952 22/131(1'
association. The school districts that serve residents of the City, like all school districts ill
Minnesota, governed independently by U.-icir own elected board members. They levy their
Senk)ir Centeir
owu taxcs and prepare their own financial reports. Accordingly, they are excludedFroin this
PIone9522M125
eport.
Fax: 952 2211110
Wehsa llle
1v1Mv.(J che11 lilassel � Infuis
Chanhassen iii as Cominmore fly loiir l Re rlro0d�ng for f0drJy',Cd 101 -10IT101 MW
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, 2015, the
maturities of the investments range from 1 day to 7 years, with an average maturity of 1.93 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, 2015 was 1.23%. 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, 2015 was 24,655. Chanhassen's residential permits were slightly
lower in 2015 as compared to 2014. In 2015, there were 104 residential permits as compared to 159 in 2014. The
total value of all building permits and plan checks in 2015 was $82,145,483. The City anticipates more diversity
in housing types (apartment, townhouse, duplex, etc.).
Office and industrial land use is currently in demand. A 118 acre Lifestyle Center is proceeding with a different
development team.
The City did not issue debt in 2015, 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 Terni 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, 2014. 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 three consecutive years (fiscal years ended 1992 — 2014). 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,
".." Ac�-� e__
Greg Sticha, Finance Director
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Chanhassen
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2014
*4000*.- 40-:PAW,.0
Executive Director/CEO
6
City of Chanhassen, Minnesota
Organization Chart
Citizens
Environmental Senior
Commission Commission
Planning Mayor - Council14 ark & Recreat
Commission Commission
Economic
Development
Authority
Administration
Law
Enforcement Public Community Parks and
Finance & Fire Works Development Recreation
Administration
CITY OF CHANHASSEN, MINNESOTA
ORGANIZATION
December 31, 2015
Term Expires
Mayor:
Denny Laufenburger 12/31/18
Council Members:
Bethany Tjornhom
12/31/16
Jerry McDonald
12/31/16
Elise Ryan
12/31/18
Dan Campion
12/31/18
City Manager:
Todd Gerhardt Appointed
Finance Director:
Greg Sticha Appointed
Community Development Director:
Kathryn Aanenson Appointed
Public Works Director/City Engineer:
Paul Oehme Appointed
Parks and Recreation Director:
Todd Hoffman Appointed
II. FINANCIAL SECTION
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10
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, 2015, 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
11
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major
fund and the aggregate remaining fund information of the City of Chanhassen, Minnesota, as of
December 31, 2015, and the respective changes in financial position, and, where applicable, cash
flows thereof for the year then ended in accordance with accounting principles generally accepted
in the United States of America.
Emphasis of Matter
As described in Note 18 to the financial statements, the City of Chanhassen, Minnesota adopted new
accounting guidance, GASB Statement No. 68, Accounting and Financial Reporting for Pensions an
Amendment of GASB Statement No. 27 for the year ended December 31, 2015. Our opinion is not
modified with respect to this matter.
Report on Summarized Comparative Information
We have previously audited the City of Chanhassen, Minnesota's 2014 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 19, 2015. In our opinion, the summarized comparative
information presented herein as of and for the year ended December 31, 2014 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, the schedule of
funding progress, and the schedules of pension liabilities and contributions, as listed in the table of
contents, be presented to supplement the basic financial statements. Such information, although not
a part of the basic financial statements, is required by the Governmental Accounting Standards
Board, who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied certain
limited procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with
management's responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or
provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
12
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Chanhassen, Minnesota's basic financial statements. The
introductory section, combining and individual nonmajor fund financial statements and schedules,
statistical section and other information, are presented for purposes of additional analysis and are
not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and schedules are the
responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the basic financial statements. Such information has
been subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the
basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the combining and
individual nonmajor fund financial statements and schedules are fairly stated in all material respects
in relation to the basic financial statements as a whole.
The introductory section, statistical section and other information have not been subjected to the
auditing procedures applied in the audit of the basic financial statements and, accordingly, we do
not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 24,
2016, 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
June 24, 2016
13
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14
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Chanhassen, Minnesota (the City), we offer readers of the City's
financial statements this narrative overview and analysis of the financial activities of the City for
the fiscal year ended December 31, 2015. 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 Hi2hli2hts
The assets of the City exceeded its liabilities at the close of the most recent fiscal year by
$152,455,099 (net position). Of this amount, $19,542,836 (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.
Net position of the government -wide financial statements was negatively impacted in the current year
by $4,634,287 due to the required implementation of a new accounting standard. This is more fully
described on page 19.
The City's total net position increased by $96,487.
As of the close of the current fiscal year, governmental funds reported combined ending fund
balances of $17,622,249. Of this amount, $5,824,354 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 $5,330,346. Of that
amount, $72,114 was in a nonspendable form and the remaining $5,258,232 was unassigned.
Total debt decreased by $2,599,026 during the current fiscal year, from $21,935,261 to
$19,336,235. The City did not issue debt during 2015.
Overview of the Financial Statements
The management's discussion and analysis is intended to serve as an introduction to the City's
basic financial statements, which are comprised of three components: 1) government -wide
financial statements, 2) fund financial statements, and 3) notes to the financial statements. This
report also contains other supplementary information in addition to the basic financial statements
themselves.
Government -wide financial statements. The government -wide financial statements are
designed to provide readers with a broad overview of the City's finances, in a manner similar to
a private -sector business.
15
Management's Discussion and Analysis
The statement of net position presents information on all of the City's assets, deferred outflows
of resources, liabilities, and deferred inflows of resources, with the difference reported as net
position. Over time, increases or decreases in net position may serve as a useful indicator of
whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues
and expenses are reported in this statement for some items that will only result in cash flows in
future fiscal periods (e.g. uncollected taxes, and earned but unused vacation leave).
Both of the government -wide financial statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business -type activities). The governmental activities of the City include
general government, public safety, public works, parks and recreation, and community
development. The business -type activities include water, sewer, and surface water management.
The government -wide financial statements can be found on Statements 1 and 2 of this report.
Fund Financial statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The City,
like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance -related legal requirements. All of the funds can be divided into three
categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government -wide financial statements.
However, unlike the government -wide financial statements, governmental fund financial
statements focus on near-term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may be
useful in evaluating a government's near-term financial requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements.
By doing so, readers may better understand the long-term impact of the City's near-term financial
decisions. Both the governmental fund balance sheet and governmental fund statement of
revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
16
Management's Discussion and Analysis
The City maintains four individual major governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of
revenues, expenditures, and changes in fund balances for the following major funds:
• General Fund
• 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.
17
Management's Discussion and Analysis
Notes to the financial statements. The notes provide additional information that is essential to
a full understanding of the data provided in the government -wide and fund financial statements.
The notes to the financial statements can be found following Statement 9 of this report.
Other information. The combining statements referred to earlier in connection with non -major
governmental funds are presented immediately following the required supplementary
information on budgetary comparisons. Combining and individual fund financial statements and
schedules can be found on Statement 18 through 29 of this report.
Government -Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's
financial position. Assets plus deferred outflows of resources exceeded liabilities plus deferred
inflows of resources by $152,455,099 at the close of the most recent fiscal year.
The largest portion of the City's net position ($126,930,001, or 83%) 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.
Assets:
Current and other assets
Capital assets
Total assets
City of Chanhassen, Minnesota's Net Position
Governmental Activities
2015 2014
Business -Type Activities
2015 2014
Totals
2015 2014
$21,265,024 $24,263,441 $12,334,591 $12,178,258 $33,599,615 $36,441,699
81,404,608 83,590,483 64,125,738 63,026,869 145,530,346 146,617,352
$102,669,632 $107,853,924 $76,460,329 $75,205,127 $179,129,961 $183,059,051
Total deferred outflows of resources
$747,394
$ -
$103,303
$ -
$850,697
$
Liabilities:
Long-term liabilities outstanding
$15,079,152
$12,707,168
$10,172,746
$10,218,055
$25,251,898
$22,925,223
Other liabilities
1,177,146
3,066,465
563,350
408,263
1,740,496
3,474,728
Total liabilities
$16,256,298
$15,773,633
$10,736,096
$10,626,318
$26,992,394
$26,399,951
Total deferred inflows of resources
$442,838
$ -
$90,327
$ -
$533,165
$
Net position:
Net investment in capital assets
$71,225,523
$71,867,072
$55,704,478
$54,111,608
$126,930,001
$125,978,680
Restricted
5,982,262
5,700,447
-
-
5,982,262
5,700,447
Unrestricted
9,510,105
14,512,772
10,032,731
10,467,201
19,542,836
24,979,973
Total net position
$86,717,890
$92,080,291
$65,737,209
$64,578,809
$152,455,099
$156,659,100
18
Management's Discussion and Analysis
The City adopted new accounting guidance, GASB Statement No. 68, Accounting and Financial
Reporting for Pensions an Amendment of GASB Statement No. 27 for the year ended December
31, 2015. Essentially, the standard required the unfunded portion of defined benefit pension
plans to be reported by all participating employers. Recording the net pension liability and the
pension related deferred outflows and inflows of resources do not change the City's future
funding requirements or obligations under the plans, which are determined by Minnesota
statutes.
Net position was negatively impacted by $4,634,287 at December 31, 2015 due to the
implementation of this standard. Pension -related amounts included in the above schedule related
to the standard are as follows:
Deferred outflows of resources $850,697
Deferred inflows of resources (533,165)
Net pension liability (4,951,819)
Total ($4,634,287)
$5,982,262 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 ($19,542,836) 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 $1,782,520, or 2%. The most
significant components of change in net position are as follows:
Net investment in capital assets decreased $641,549 due to increasing older assets being
depreciated and fewer new assets being added, as well as transfers of capital assets to
business -type activities.
Restricted net position increased $281,815. This increase is due to park development
fees and tax increment collections exceeding corresponding expenditures by $145,184
and $144,548, respectively.
Unrestricted net position decreased $1,422,786. During 2015, a significant amount of
unrestricted net position was consumed for capital purposes. For example, the fund
balances of the Revolving Assessment Fund and the Capital Replacement Fund decreased
$335,004 and $304,404, respectively. Also, approximately $315,000 of additional
pension expense was recognized as a result of the new pension standard.
19
Management's Discussion and Analysis
Business -Type Activities
The net position of the City's business -type activities increased by $1,879,007, or 3%, primarily
because contributions of capital assets were greater than transfers out for construction projects.
City of Chanhassen, Minnesota's Changes in Net Position
Revenues:
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues:
Property taxes
Tax increment collections
Grants and contributions not
restricted to specific programs
Unrestricted investment earnings
Special item - sale of public works building
Gain on sale of capital assets
Total revenues
Expenses:
General government
Public safety
Public works
Parks and recreation
Community development
Interest on long-term debt
Water
Sewer
Surface water management
Total expenses
Increase (decrease) in net position before transfers
Transfers
Change in net position
Net position - beginning, as previously reported
Prior period adjustment
Net position - beginning, as restated
Net position - ending
Governmental Activities
Business -Type
Activities
Totals
2015
2014
2015
2014
2015
2014
$2,836,868
$2,941,522
$5,806,597
$5,684,650
$8,643,465
$8,626,172
823,943
532,337
45,130
210,857
869,073
743,194
5,812,825
3,296,748
3,140,823
2,633,793
8,953,648
5,930,541
10,536,216
10,482,273
-
-
10,536,216
10,482,273
200,338
307,940
200,338
307,940
21,679
19,736
-
-
21,679
19,736
176,731
183,602
132,406
134,533
309,137
318,135
66,248
191,755
57,510
-
123,758
191,755
20,474,848
17,955,913
9,182,466
8,663,833
29,657,314
26,619,746
2,775,663
3,099,004
-
2,775,663
3,099,004
3,826,376
3,416,088
3,826,376
3,416,088
11,153,322
9,604,525
11,153,322
9,604,525
2,952,985
3,062,592
2,952,985
3,062,592
527,268
1,043,848
527,268
1,043,848
409,676
465,935
-
-
409,676
465,935
-
-
3,290,265
3,347,965
3,290,265
3,347,965
3,297,128
3,171,696
3,297,128
3,171,696
-
-
1,328,144
1,491,763
1,328,144
1,491,763
21,645,290
20,691,992
7,915,537
8,011,424
29,560,827
28,703,416
(1,170,442)
(2,736,079)
1,266,929
652,409
96,487
(2,083,670)
(612,078)
6,389
612,078
(6,389)
-
(1,782,520)
(2,729,690)
1,879,007
646,020
96,487
(2,083,670)
92,080,291
94,809,981
64,578,809
63,932,789
156,659,100
158,742,770
(3,579,881)
-
(720,607)
-
(4,300,488)
-
88,500,410
94,809,981
63,858,202
63,932,789
152,358,612
158,742,770
$86,717,890
$92,080,291
$65,737,209
$64,578,809
$152,455,099
$156,659,100
20
Management's Discussion and Analysis
Governmental Activities
Revenues
Revenues for the governmental activities increased by $2,518,935, or 14%. The primary reason
for the change was an increase to capital grants and contributions as compared to the previous
year. This was comprised of mostly state aid for road improvement projects.
Expenses
Expenses for the governmental activities increased by $953,298, or 5%. As noted above, the
increase was due to additional state aid for improvement projects; as such, there was a
corresponding increase in construction expense, a portion of which was not capitalized.
Below are specific graphs which provide comparisons of the governmental activities revenues
and expenses:
Charges for services
13.9
21
Management's Discussion and Analysis
Business -Type Activities
Revenues
Revenues for the business -type activities increased by $518,633, or 6%. The increase was from
a greater amount of capital grants and contributions for the Surface Water Management and
Sewer Funds as compared to the previous year.
Expenses
Expenses for business -type activities decreased by $95,887, or 1%. There were no significant
items that contributed to the minor decrease.
22
Management's Discussion and Analysis
Below are specific graphs showing the business -type activities revenue and expense
comparisons:
Capital grants and
34.4%
Operating grants ani
contributions
0.5%
Unrestricted investment Business -Type Activities - Revenue
earnings
Surface wa
Sewer
41.6%
for services
3.6%
Business -Type Activities - Expenses
23
Water
41.6%
Management's Discussion and Analysis
Financial Analysis of the Government's Funds
Governmental Funds. The focus of the City's governmental funds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the City's financing requirements. In particular, unrestricted fund balance may serve
as a useful measure of a government's net resources available for spending at the end of the
fiscal year.
At the end of the current fiscal year, the City's governmental funds reported combined ending
fund balances of $17,622,249. Approximately 33% of this total amount ($5,824,354) constitutes
fund balance restricted by external constraints established by creditors, grantors, contributors, or
by state statutory provisions. $1,325,819 of fund balance is not in a spendable form, $5,586,353
has been assigned, and $4,885,723 is unassigned.
The General Fund balance decreased by $278,719 in 2015. The change in fund balance was
attributable to the transfer out of prior year surplus being more than the current year surplus,
resulting in a decrease in fund balance.
The Transit Station Assessment Fund balance increased by $98,136 due to the collection of
special assessments. These collections allowed the fund to pay $98,136 towards an interfund
loan owed to the Water Fund.
The Revolving Assessment Fund balance decreased by $335,004. The majority of the decrease
is due to the transfer out of funds to cover construction expenses in another fund. The transfer
was approved by City Council prior to incurring the expenses during the year.
The TH101 Improvements — Lyman to Pioneer Fund balance decreased by $10,835. The
decrease reflects costs incurred which will not be reimbursed by other governmental agencies.
The nonmajor special revenue funds increased by $54,943. This increase was primarily due to
franchise fee revenue exceeding expenses in the Cable TV fund.
The nonmajor debt service funds increased by $508,286. The increase was due to four large
deferred special assessments paid off in advance during 2015.
The nonmajor capital project funds decreased by $513,772. This decrease was due to the
transfer out of funds to cover the early retirement of debt noted earlier in fund 362 (2004C G.O.
Tax Increment Refunding Bond).
24
Management's Discussion and Analysis
Proprietary funds. The City's proprietary funds provide the same type of information found in
the government -wide financial statements, but in more detail.
The unrestricted net position in the respective proprietary funds is $4,871,151 (Water),
$4,113,927 (Sewer) and $1,047,653 (Surface Water Management). All three proprietary funds
experienced larger contributions of capital assets from projects completed in governmental funds
as compared to the previous year.
Bud2etary Hi2hli2hts
General Fund
There were no budget amendments to the General Fund in 2015.
Budgetary Variances Revenues
The positive General Fund revenue variance of $385,744 was mostly due to building permit
revenue exceeding budget by $300,000.
Budgetary Variances Expenses
Expenses for the General Fund had a positive variance of $35,537. The variance was less than
0.4% of the entire General Fund budget. There was no significant event to account for this small
change.
25
Management's Discussion and Analysis
Capital Asset and Debt Administration
Capital assets. The City's investment in capital assets for its governmental and business -type
activities as of December 31, 2015 amounts to $145,530,346 (net of accumulated depreciation).
This investment in capital assets includes land, buildings, infrastructure, machinery, and
equipment.
City of Chanhassen, Minnesota's Capital Assets
(Net of Depreciation)
26
Beginning
Ending
Primary Government
Balance
Increase
Decrease
Balance
Governmental activities:
Capital assets not being depreciated:
Land
$19,256,817
$609,000
$ -
$19,865,817
Construction in progress
2,644,451
524,078
(2,213,218)
955,311
Permanent easements
1,155,950
42,229
-
1,198,179
Total capital assets not being depreciated
23,057,218
1,175,307
(2,213,218)
22,019,307
Capital assets being depreciated:
Buildings and structures
22,865,874
213,713
-
23,079,587
Machinery and equipment
8,544,633
813,521
(768,230)
8,589,923
Temporary easements
12,931
-
-
12,931
Other improvements
7,157,618
257,142
-
7,414,760
Infrastructtiire
113,143,360
2,599,898
(380,267)
115,362,992
Total capital assets being depreciated
151,724,416
3,884,273
(1,148,497)
154,460,192
Less accumulated depreciation for:
Buildings and structures
6,709,071
560,034
-
7,269,105
Machinery and equipment
6,019,738
492,117
(671,862)
5,839,993
Temporary easements
12,932
-
-
12,932
Other improvements
2,956,256
310,552
-
3,266,808
Infrastructtiire
75,493,154
3,573,166
(380,267)
78,686,054
Total accumulated depreciation
91,191,151
4,935,869
(1,052,129)
95,074,891
Governmental activities capital assets - net
$83,590,483
$123,711
($2,309,586)
$81,404,608
26
Management's Discussion and Analysis
Primary Government
Business -type activities:
Capital assets not being depreciated:
Land
Construction in progress
Permanent easements
Total capital assets not being depreciated
Capital assets being depreciated:
Buildings and structures
Machinery and equipment
Temporary easements
Other improvements
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings and structures
Machinery and equipment
Temporary easements
Other improvements
Total accumulated depreciation
Business -type activities capital assets - net
Total capital assets - net
Ending
Ending
Balance
Increase
Decrease
Balance
$2,077,035
$300
$ -
$2,077,335
1,600,222
2,834,139
(1,009,695)
3,424,666
1,156,467
63,061
-
1,219,528
4,833,724
2,897,500
(1,009,695)
6,721,529
12,445,429
-
-
12,445,429
1,519,674
464,701
(246,371)
1,738,004
104,441,564
2,088,474
(211,747)
106,318,291
118,406,667
2,553,175
(458,118)
120,501,724
1,743,081
248,917
-
1,991,998
969,768
80,365
(243,878)
806,255
57,500,673
3,010,336
(211,747)
60,299,262
60,213,522
3,339,618
(455,625)
63,097,515
63,026,869
2,111,057
(1,012,188)
64,125,738
$146,617,352 $2,234,768 ($3,321,774) $145,530,346
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). In addition, $1,069,917 of capital assets were transferred to business -type activities.
Business -Type Activities Capital Assets. There was an increase in capital assets due to the
receipt of capital assets transferred from governmental activities, combined with current year
additions exceeding depreciation expense.
Long-term debt. At the end of the current fiscal year, the City had total bonds payable
outstanding of $19,336,235, a decrease of $2,599,026 from 2014. In addition to scheduled debt
service payments, the City paid off its G.O. Tax Increment Refunding Bonds of 2004C which
had a balance of $635,000 at December 31, 2014.
The balance of the bonds payable outstanding is comprised of $8,925,000 in general obligation
bonds, $1,155,000 for special assessment debt which is supported in part by special assessments,
$9,130,000 of revenue bonds which financed capital investments for the water, sewer, and
surface water management operations, and an unamortized bond premium of $126,235.
27
Management's Discussion and Analysis
Additional long-term debt in the amount of $933,241 for compensated absences was also
outstanding at the end of 2015.
City of Chanhassen, Minnesota's Outstanding Debt
The City did not issue debt in 2015. 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 was reaffirmed in February 2016 by
Standard & Poor's when the City issued the 2016A General Obligation Bonds. The City of
Chanhassen is one of approximately 20 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 $110,603,316. Of the
City's outstanding debt, $8,925,000 is applicable to the statutory limitation.
Additional information on the City's long-term debt can be found in Note 6.
Requests for Information. This financial report is designed to provide a general overview of
the City of Chanhassen, Minnesota's finances for all those with an interest in the government's
finances. Questions concerning any of the information provided in this report or requests for
additional financial information should be addressed to the Director of Finance, 7700 Market
Boulevard, P.O. Box 147, Chanhassen, Minnesota 55317.
28
Governmental Activities
Business -Type
Activities
Totals
2015
2014
2015
2014
2015
2014
General obligation bonds
$8,925,000
$9,550,000
$ -
$ -
$8,925,000
$9,550,000
Revenue bonds
-
-
9,130,000
9,905,000
9,130,000
9,905,000
Tax increment bonds
-
635,000
-
-
-
635,000
General improvement bonds
1,155,000
1,705,000
-
-
1,155,000
1,705,000
Bond premium
-
-
126,235
140,261
126,235
140,261
Compensated absences
769,264
791,637
163,977
172,794
933,241
964,431
Total
$10,849,264
$12,681,637
$9,420,212
$10,218,055
$20,269,476
$22,899,692
The City did not issue debt in 2015. 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 was reaffirmed in February 2016 by
Standard & Poor's when the City issued the 2016A General Obligation Bonds. The City of
Chanhassen is one of approximately 20 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 $110,603,316. Of the
City's outstanding debt, $8,925,000 is applicable to the statutory limitation.
Additional information on the City's long-term debt can be found in Note 6.
Requests for Information. This financial report is designed to provide a general overview of
the City of Chanhassen, Minnesota's finances for all those with an interest in the government's
finances. Questions concerning any of the information provided in this report or requests for
additional financial information should be addressed to the Director of Finance, 7700 Market
Boulevard, P.O. Box 147, Chanhassen, Minnesota 55317.
28
BASIC FINANCIAL STATEMENTS
29
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30
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF NET POSITION
December 31, 2015
Assets:
Cash and investments
Accrued interest receivable
Due from other governmental units
Accounts receivable - net
Property taxes receivable
Prepaid items
Inventories - at cost
Internal balances
Contract for deed receivable
Special assessments receivable
Capital assets (net of accumulated depreciation):
Nondepreciable
Depreciable
Total assets
Deferred outflows of resources related to pensions
Liabilities:
Accounts payable
Due to other governmental units
Salaries payable
Contracts payable
Accrued interest payable
Unearned revenue
Compensated absences payable:
Due within one year
Due in more than one year
Other post employment benefits payable:
Due in more than one year
Bonds payable:
Due within one year
Due in more than one year
Net pension liability:
Due in more than one year
Total liabilities
Deferred inflows of resources related to pensions
Net position:
Net investment in capital assets
Restricted for:
Debt service
Park improvements
Tax increment purposes
Other purposes
Unrestricted
Total net position
Statement 1
Primary Government
Governmental Business -Type
APfl6 iP9 APfl6 iP9 Tntnl
$14,938,421
$11,828,639
$26,767,060
100,890
75,588
176,478
946,030
105,865
1,051,895
177,482
1,169,494
1,346,976
176,859
-
176,859
72,950
14,109
87,059
-
35,210
35,210
1,031,203
(1,031,203)
-
1,282,486
-
1,282,486
2,538,703
136,889
2,675,592
22,019,307
6,721,529
28,740,836
59,385,301
57,404,209
116,789,510
102,669,632
76,460,329
179,129,961
747,394
103,303
850,697
302,739
62,987
365,726
44,940
104,866
149,806
174,917
31,162
206,079
321,607
287,574
609,181
159,155
76,761
235,916
173,788
-
173,788
112,469
23,974
136,443
656,795
140,003
796,798
30,603 - 30,603
1,205,000 819,026 2,024,026
8,875,000 8,437,209 17,312,209
4.199285 752.534 4.951.819
10,ZD0,ZyZS 10, /S0,Uy0 Z0,VVZ,JV4
442,838 90,327 533,165
71,225,523 55,704,478 126,930,001
3,455,172
- 3,455,172
1,896,923
- 1,896,923
475,357
- 475,357
154,810
- 154,810
9,510,105
10,032,731 19,542,836
$86,717,890
$65,737,209 $152,455,099
The accompanying notes are an integral part of these financial statements.
31
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2015
Functions/Pro grams
Primary government:
Governmental activities:
General government
Public safety
Public works
Parks and recreation
Community development
Interest and fees on long-term debt
Total governmental activities
Business -type activities:
Water
Sewer
Surface water management
Total business -type activities
Total primary government
Expenses
$2,775,663
3,826,376
11,153,322
2,952,985
527,268
409,676
21,645,290
3,290,265
3,297,128
1,328,144
7,915,537
Program Revenues
Charges For
Services
$486,141
1,370,829
218,686
724,533
36,679
2,836,868
2,611,895
2,525,731
668,971
5,806,597
$29,560,827 $8,643,465
The accompanying notes are an integral part of these financial statements.
32
Statement 2
Net (Expense) Revenue and
Program Revenues Changes in Net Position
Operating Capital Primary Government
Grants and Grants and Governmental Business -Type Total
Contributions Contributions Activities Activities 2015
$600 $ -
403,952 18,308
393,991 5,794,517
25,400 -
823,943 5,812,825
45,130
45,130
1,526,773
721,405
892,645
3,140, 823
($2,288,922)
(2,033,287)
(4,746,128)
(2,203,052)
(490,589)
(409,676)
(12,171,654)
0
$ 869,073 $ 8,953,648 (12,171,654)
General revenues:
General property taxes
Tax increment collections
Grants and contributions not
restricted to specific programs
Unrestricted investment earnings
Gain on sale of capital assets
Transfers
Total general revenues, special item
and transfers
Change in net position
Net position - January 1, as previously reported
Prior period adjustment
Net position - January 1, as restated
Net position - December 31
10,536,216
200,338
21,679
176,731
66,248
(612,078)
0
848,403
(49,992)
278,602
1,077,013
1,077,013
132,406
57,510
612,078
($2,288,922)
(2,033,287)
(4,746,128)
(2,203,052)
(490,589)
(409,676)
(12,171,654)
848,403
(49,992)
278,602
1,077,013
(11,094,641)
10,536,216
200,338
21,679
309,137
123,758
10,389,134 801,994 11,191,128
(1,782,520) 1,879,007 96,487
92,080,291
(3,579,881)
88,500,410
$86,717,890
64,578,809
(720,607)
63,858,202
156,659,100
(4,300,488)
152,358,612
$65,737,209 $152,455,099
The accompanying notes are an integral part of these financial statements.
33
CITY OF CHANHASSEN, MINNESOTA
BALANCE SHEET
GOVERNMENTALFUNDS
December 31, 2015
With Comparative Totals For December 31, 2014
Assets:
Cash and investments
Accrued interest receivable
Due from other governmental units
Accounts receivable - net
Due from other funds
Property taxes receivable
Prepaid items
Interfund loan receivable
Contract for deed receivable
Special assessments receivable
Total assets
Liabilities, Deferred Inflows of Resources, and Fund Balances
Liabilities:
Accounts payable
Due to other governmental units
Salaries payable
Contracts payable
Due to other funds
Interfund loan payable
Unearned revenue
Total liabilities
Deferred inflows of resources:
Unavailable revenue
Fund balances:
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows of resources, and fund balances
General Fund
$5,471,348
28,298
81,642
39,940
161,611
72,114
786
$5,855,739
$146,338
44,940
172,047
78,915
442,240
413 Transit Station
Assessment Fund
461,967
$461,967
368,797
368,797
83,153 461,967
72,114
5,258,232
5,330,346
(368,797)
(368,797)
$5,855,739 $461,967
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 pension related deferred outflows and inflows, are not due and payable in the current
period and, therefore, are not reported in the funds (see Note 1T).
Net position of governmental activities
The accompanying notes are an integral part of these financial statements.
34
601 Revolving
Assessment Fund
$619,134
13,775
55,753
588,022
2,551
700,000
1,699,137
$3,678,372
$68,600
222,522
604 TH 101
Improvements -
Lvman to Pioneer
602,136
$602,136
85,624
515,751
291,122
601,375
1,701,282
-
1,685,968
761
1,685,968
761
$3,678,372
$602,136
Other
Governmental
Funds
$8,847,939
58,817
206,499
137,542
12,697
836
700,000
1,282,486
376,813
$11,623,629
$87,801
2,870
13,461
72,271
94,873
271,276
378,382
1,253,705
5,824,354
3,899,624
(3,712)
10,973,971
$11,623,629
Statement 3
Total Governmental Funds
2015
$14,938,421
100,890
946,030
177,482
588,022
176,859
72,950
1,400,000
1,282,486
2,538,703
$22,221,843
$302,739
44,940
174,917
321,607
588,022
368,797
173,788
1,974,810
2,624,784
1,325, 819
5,824,354
5,586,353
4,885,723
17, 622,249
$22,221,843
$17,622,249
81,404,608
2,624,784
(14,933,751)
$86,717,890
The accompanying notes are an integral part of these financial statements.
35
2014
$18,543,927
72,151
1,218, 063
138,360
545,577
164,003
60,333
1,327,053
3,206,484
$25,275,951
$440,413
34,226
163,441
559,341
545,577
466,933
1,680,095
3,890,026
3,286,711
1,347,908
5,724,419
5,951,507
5,075,380
18,099,214
$25,275,951
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
For The Year Ended December 31, 2015
With Comparative Totals For The Year Ended December 31, 2014
Revenues:
General property taxes
Tax increment collections
Licenses and permits
Intergovernmental
Special assessments
Charges for services
Fines and forfeits
Investment earnings
Net change in fair value of investments
Contributions and donations
Refunds and reimbursements
Other
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Parks and recreation
Community development
Capital outlay:
General government
Public safety
Public works
Parks and recreation
Decertification of TIF district
Debt service:
Principal
Interest and paying agent fees
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Sale of capital assets
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance - January 1
Fund balance - December 31
413 Transit Station
General Fund Assessment Fund
$7,825,804
1,296,003
384,025
597,567
117,189
62,861
(13,292)
26,400
63,558
190,129
10,550,244
2,036,920
3,308,152
2,326,612
1,972,053
485,226
10,128,963
127,901
127,901
0
421,281
127,901
(700,000)
(29,765)
(700,000)
(29,765)
(278,719)
98,136
5,609,065
(466,933)
$5,330,346
The accompanying notes are an integral part of these financial statements.
36
($368,797)
601 Revolving
Assessment Fund
$450,192
1,269,742
749,359
30,600
(6,470)
1
604 TH 101
Improvements -
Lvman to Pioneer
265,163
2,493,424 265,163
Other Govt'1 Funds
$2,253,998
200,338
269,897
2,978,209
787,164
201,976
130,658
(27,626)
51,775
22,396
77,493
6,946,278
Statement 4
Totals Governmental Funds
2015
$10,529,994
200,338
1,565,900
4,897,139
1,664,424
799,543
117,189
224,119
(47,388)
78,175
85,955
267,622
20,383,010
2014
$10,489,350
307,940
1,691,634
2,553,062
854,966
798,578
100,516
190,351
(6,749)
66,918
77,871
265,119
17,389,556
- - 354,275
2,391,195
2,350,437
- - 123,389
3,431,541
3,258,363
3,143,011 4,000 2,063,753
7,537,376
5,352,221
11,550 - 84,929
2,068,532
2,164,703
- - 30,156
515,382
464,287
34,080
- - 122,143 122,143 23,980
561,132 271,998 1,733,737 2,566, 867 2,894,237
8,990 - 467,333 476,323 485,107
- - - - 569,760
3,724,683
(1,231,259)
1,187,604
(291,349)
896,255
(335,004)
2,020,972
$1,685,968
275,998
(10,835)
0
(10,835)
11,596
$761
1,810,000
439,470
7,229,185
(282,907)
41,015
971,240
(679, 891)
332,364
49,457
10,924,514
$10,973,971
1,810,000
439,470
21,358,829
(975,819)
41,015
2,158,844
(1,701,005)
498,854
(476,965)
18,099,214
$17,622,249
The accompanying notes are an integral part of these financial statements.
37
4,190, 000
518,722
22,305,897
(4,916,341)
301,531
1,783,719
(676,095)
1,409,155
(3,507,186)
21,606,400
$18,099,214
CITY OF CHANHASSEN, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES, Statement 5
EXPENDITURES AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2015
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) ($476,965)
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:
Capital outlay 3,165,333
Depreciation expense (4,935,869)
The net effect of various miscellaneous transactions involving capital assets
(i.e. sales, trade-ins and donations) is to increase (decrease) net position.
Developer contributed infrastructure 685,717
Transfer of capital assets to Enterprise Funds (1,069,917)
Gain on disposal of capital assets 25,233
Decrease in estimated portion of projects pertaining to governmental activities (56,372)
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds.
Change in delinquent property taxes 6,222
Change in deferred and delinquent special assessments (668,808)
Change in other unavailable revenue 659
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.
Repayment of principal 1,810,000
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. Expenses reported in the statement of activities include the
effects of the changes in these expense accruals as follows:
Change in compensated absences payable 22,373
Change in other post employment benefits payable (5,072)
Change in accrued interest payable 29,794
Governmental funds report pension contributions as expenditures, however,
pension expense is reported in the statement of activities.
Pension contributions 314,650
Pension expense (629,498)
Change in net position of governmental activities (Statement 2) ($1,782,520)
The accompanying notes are an integral part of these financial statements.
38
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2015
Assets:
Current assets:
Cash and cash equivalents
Accrued interest receivable
Due from other governmental units
Accounts receivable - net
Interfund loan receivable
Prepaid items
Water meter inventory
Special assessments receivable
Connection charges receivable
Total current assets
Noncurrent assets:
Capital assets:
Nondepreciable
Depreciable
Total capital assets
Less: Allowance for depreciation
Net capital assets
Total assets
Deferred outflows of resources related to pensions
Liabilities:
Current liabilities:
Accounts payable
Due to other governmental units
Salaries payable
Contracts payable
Accrued interest payable
Interfund loan payable - due within one year
Compensated absences payable - due within one year
Bonds payable - due within one year
Total current liabilities
Noncurrent liabilities:
Interfund loan payable
Compensated absences payable
Bonds payable
Net pension liability
Total noncurrent liabilities
Total liabilities
Deferred inflows of resources related to pensions
Net position:
Net investment in capital assets
Unrestricted
Total net position
Surface Water
Water Sewer Management
Statement 6
Total
$6,266,795
$4,451,388
$1,110,456
$11,828,639
37,137
30,491
7,960
75,588
1,629
18,997
85,239
105,865
500,274
499,984
169,236
1,169,494
368,797
-
-
368,797
5,424
4,783
3,902
14,109
35,210
-
-
35,210
94,396
3,749
-
98,145
31,736
7,008
-
38,744
7,341,398
5,016,400
1,376,793
13,734,591
3,804,242
770,579
2,146,708
6,721,529
59,683,329
34,550,355
26,268,040
120,501,724
63,487,571
35,320,934
28,414,748
127,223,253
(26,905,012)
(21,994,565)
(14,197,938)
(63,097,515)
36,582,559
13,326,369
14,216,810
64,125,738
43,923,957
18,342,769
15,593,603
77,860,329
44,306
36,284
22,713
103,303
44,537
6,525
11,925
62,987
18,619
32,305
53,942
104,866
13,660
9,965
7,537
31,162
203,416
28,391
55,767
287,574
74,273
2,488
-
76,761
163,446
-
-
163,446
10,026
8,486
5,462
23,974
759,026
60,000
-
819,026
11287,003
148,160
134,633
1,569,796
1,236,554
-
-
1,236,554
58,550
49,554
31,899
140,003
7,992,209
445,000
-
8,437,209
322,756
264,317
165,461
752,534
9,610,069
758,871
197,360
10,566,300
10,897,072
907,031
331,993
12,136,096
38,741
31,726
19,860
90,327
28,161,299
13,326,369
14,216,810
55,704,478
4,871,151
4,113,927
1,047,653
10,032,731
$33,032,450
$17,440,296
$15,264,463
$65,737,209
The accompanying notes are an integral part of these financial statements.
39
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For The Year Ended December 31, 2015
Operating revenues:
Charges for services
Penalties and other
Total operating revenues
Operating expenses:
Personal services
Materials and supplies
Contractual services:
MCES
Other
Repairs and maintenance
Depreciation
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses):
Investment earnings
Net change in fair value of investments
Intergovernmental
Refunds and reimbursements
Interest and fiscal charges
Gain (loss) on disposal of capital assets
Total nonoperating revenues (expenses)
Income before contributions and transfers
Transfer in
Transfer out
Capital contributions:
Contributions of capital assets
Special assessments
Connection charges
Total contributions and transfers
Change in net position
Net position - January 1, as previously reported
Prior period adjustment
Net position - January 1, as restated
Water Sewer
Surface Water
Management
Statement 7
Totals
$2,462,792
$2,449,022
$650,760
$5,562,574
146,194
73,402
16,621
236,217
2,608,986
2,522,424
667,381
5,798,791
587,851
391,270
262,773
1,241,894
319,404
32,700
20,768
372,872
-
1,567,672
-
1,567,672
367,959
221,160
219,186
808,305
287,713
118,662
369
406,744
1,555,151
959,419
825,048
3,339,618
3,118,078
3,290,883
1,328,144
7,737,105
(509,092)
(768,459)
(660,763)
(1,938,314)
82,497
67,732
17,682
167,911
(17,444)
(14,322)
(3,739)
(35,505)
-
-
45,130
45,130
15,073
4,285
1,590
20,948
(172,187)
(6,245)
-
(178,432)
27,510
30,000
-
57,510
(64,551)
81,450
60,663
77,562
(573,643)
(687,009)
(600,100)
(1,860,752)
29,765
32,084
-
61,849
(87,515)
(187,369)
(244,804)
(519,688)
411,238
548,045
1,566,071
2,525,354
7,295
-
-
7,295
1,142,359
389,647
132,943
1,664,949
1,503,142
782,407
1,454,210
3,739,759
929,499
95,398
854,110
1,879,007
32,412,014 17,598,001 14,568,794 64,578,809
(309,063) (253,103) (158,441) (720,607)
32,102,951 17,344,898 14,410,353 63,858,202
Net position - December 31 $33,032,450 $17,440,296 $15,264,463 $65,737,209
Capital Transfers -
Contributions Net
Amounts reported above $4,197,598 ($457,839)
Amounts reported for business -type activities in the
statement of activities are different because:
Transfer in of capital assets from governmental activities (1,069,917) 1,069,917
Amounts reported on the statement of activities
$3,127,681 $612,078
The accompanying notes are an integral part of these financial statements.
40
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2015
Cash flows from operating activities:
Receipts from customers and users
Payment to suppliers
Payment to employees
Miscellaneous revenue
Net cash flows provided by operating activities
Cash flows from noncapital financing activities:
Transfers in
Transfers out
Decrease in interfund loan receivable
Increase in interfund loan payable
Net cash flows provided by (used in)
noncapital financing activities
Cash flows from capital and related financing activities:
Acquisition of capital assets
Connection charges
Special assessment collections
Principal paid on bonds
Interest and fiscal charges
Net cash flows provided by (used in) capital
and related financing activities
Cash flows from investing activities:
Investment earnings
Net (decrease) in cash and cash equivalents
Cash and cash equivalents - January 1
Cash and cash equivalents - December 31
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Miscellaneous revenue (expense)
Depreciation
Changes in assets and liabilities, deferred outflows and inflows:
Decrease (increase) in receivables
Decrease (increase) in prepaid items
Decrease (increase) in inventory
Decrease (increase) in deferred outflows of resources
Increase (decrease)in payables
Increase (decrease) in net pension liability
Increase (decrease) in deferred inflows of resources
Total adjustments
Net cash provided by operating activities
Statement 8
Surface Water
Water Sewer Management Totals
$2,596,962
$2,508,123
$638,301
$5,743,386
(1,034,747)
(1,990,634)
(201,310)
(3,226,691)
(588,937)
(390,863)
(255,349)
(1,235,149)
15,073
4,285
46,720
66,078
988,351
130,911
228,362
1,347,624
(30,861)
(25,273)
29,765
32,084
-
61,849
(87,515)
(187,369)
(244,804)
(519,688)
98,136
-
-
98,136
1,400,000
-
-
1,400,000
1,440,386
(155,285)
(244,804)
1,040,297
$228,362
$1,347,624
(1,288,287)
(326,335)
(10,210)
(1,624,832)
1,151,583
394,966
132,943
1,679,492
25,798
972
-
26,770
(715,000)
(60,000)
-
(775,000)
(187,828)
(6,495)
-
(194,323)
(1,013,734)
3,108
122,733
(887,893)
52,215
42,306
11,011
105,532
1,467,218
21,040
117,302
1,605,560
4,799,577
4,430,348
993,154
10,223,079
$6,266,795 $4,451,388 $1,110,456 $11,828,639
($509,092) ($768,459) ($660,763) ($1,938,314)
15,073
4,285
46,720
66,078
1,555,151
959,419
825,048
3,339,618
(12,024)
(14,301)
(29,080)
(55,405)
(434)
107
(1,431)
(1,758)
1,112
-
-
1,112
(30,861)
(25,273)
(15,820)
(71,954)
(69,563)
(56,796)
43,701
(82,658)
248
203
127
578
38,741
31,726
19,860
90,327
1,497,443
899,370
889,125
3,285,938
$988,351
$130,911
$228,362
$1,347,624
Noncash investing, capital and financing activities:
Capital assets in the amount of $411,238 and $905,480 were contributed to the Water Fund in 2015 and 2014, respectively.
Capital assets in the amount of $548,045 and $267,572 were contributed to the Sewer Fund in 2015 and 2014, respectively.
Capital assets in the amount of $1,566,071 and $518,769 were contributed to the Surface Water Fund in 2015 and 2014, respectively.
The accompanying notes are an integral part of these financial statements.
41
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF NET POSITION
FIDUCIARY FUNDS
December 31, 2015
With Comparative Totals For December 31, 2014
Assets
Statement 9
Agency Funds
2015 2014
Cash and investments $1,835,459 $1,306,003
Liabilities:
Escrow deposits payable $1,835,459 $1,306,003
The accompanying notes are an integral part of these financial statements.
42
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
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.
43
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
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.
44
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
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.
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.
45
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
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 2015. Budgeted expenditure appropriations lapse at year end.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the appropriation, is not
employed by the City because it is at present not considered necessary to assure effective budgetary
control or to facilitate effective cash management.
E. LEGAL COMPLIANCE - BUDGETS
The City follows these procedures in establishing the budgetary data reflected in the financial
statements:
1. The City Manager submits to the City Council a proposed operating budget for the fiscal year
commencing the following January 1. The operating budget includes proposed expenditures
and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution.
4. Management may authorize transfer of budgeted amounts between departments within any
fund. All budget amendments between funds must be approved by the City Council. The
legal level of budgetary control is at the fund level. Budgetary monitoring, by departments or
divisions and by category, is required by City policy.
46
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
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 2015, the Contribution Special Revenue Fund had expenditures of $49,080, which exceeded
budgeted expenditures of $40,000 by $9,080.
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 1). 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.
47
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
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.
48
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
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, 2015, no interest was
capitalized in connection with construction in progress.
49
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
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.
50
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
O. DEFERRED OUTFLOWSANFLOWS OF RESOURCES
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element represents a consumption of
net position that applies to future periods and so will not be recognized as an outflow of resources
(expense/expenditure) until then. The government has one item that qualifies for reporting in the
category. It is the pension related deferred outflows of resources reported in the government -wide
Statement of Net Position and the proprietary funds Statement of Net Position.
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 pension related deferred inflows of resources reported
in the government -wide Statement of Net Pension and the proprietary funds Statements of Net
Position. The government also has a type of item, which arises only under a modified accrual basis of
accounting, that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is
reported only in the governmental fund balance sheet. The governmental funds report unavailable
revenues from the following sources: property taxes, special assessments and other revenue not
collected within 60 days from year-end.
P. FUND BALANCE CLASSIFICATIONS
In the fund financial statements, governmental funds report fund balance in classifications that disclose
constraints for which amounts in those funds can be spent. These classifications are as follows:
Nonspendable - consists of amounts that are not in spendable form, such as prepaid items.
Restricted - consists of amounts related to externally imposed constraints established by creditors,
grantors or contributors; or constraints imposed by state statutory provisions.
Committed - consists of internally imposed constraints. These constraints are established by
Resolution of City Council, and committed amounts cannot be used for any other purpose unless
the City Council removes or changes the specified use by resolution.
Assigned - consists of internally imposed constraints for the specific purpose of the City's
intended use. Pursuant to the City's Fund Balance Policy, the City Manager or Finance Director
are authorized to assign fund balance that reflects the City's intended use of those funds.
Unassigned - is the residual classification for the general fund and also reflects negative residual
amounts in other funds.
When both restricted and unrestricted resources are available for use, it is the City's policy to first use
restricted resources, and then use unrestricted resources as they are needed.
When committed, assigned or unassigned resources are available for use, it is the City's policy to use
resources in the following order: 1) committed 2) assigned and 3) unassigned. The exception to this is
the Park Acquisition and Development Fund (410), where it is the City's policy to use resources in the
following order: 1) assigned, 2) committed, and 3) restricted.
51
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
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, 2014, from which the summarized
information was derived.
52
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
T. RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
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 pension related deferred outflows and inflows, are not due and payable in the current
period and, therefore, are not reported in the funds." The details of this ($14,933,751) difference
are as follows:
Bonds payable ($10,080,000)
Accrued interest payable (159,155)
Compensated absences payable (769,264)
Other post employment benefit payable (30,603)
Net pension liability (4,199,285)
Deferred outflows of resources related to pensions 747,394
Deferred inflows of resources related to pensions (442,838)
Net adjustment to decrease fund balances - total governmental
funds to arrive at net position - governmental activities ($14,933,751)
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, 2015, the bank balance of the City's deposits was insured by
the FDIC or covered by pledged collateral held in the City's name.
Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City
Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral
includes the following:
a) United States government treasury bills, treasury notes, treasury bonds;
b) Issues of United States government agencies and instrumentalities as quoted by a recognized
industry quotation service available to the government entity;
53
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
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, 2015, the carrying amount of the City's deposits with financial institutions was
$1,290,740.
B. INVESTMENTS
Minnesota Statutes authorize the City to invest in the following:
a) Direct obligations or obligations guaranteed by the United States or its agencies, its
instrumentalities, or organizations created by an act of congress, excluding mortgage-backed
securities defined as high risk.
b) Shares of investment companies registered under the Federal Investment Company Act of 1940
and whose only investments are in securities described in (a) above, general obligation tax-exempt
securities, or repurchase or reverse repurchase agreements.
c) State and local securities as follows:
1) any security which is a general obligation of any state or local government with taxing
powers which is rated "A" or better by a national bond rating service;
2) any security which is a revenue obligation of any state or local government with taxing
powers which is rated "AA" or better by a national bond rating service; and
3) a general obligation of the Minnesota Housing Finance Agency which is a moral obligation of
the State of Minnesota and is rated "A" or better by a national bond rating agency.
d) Bankers acceptance of United States banks.
e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the
highest quality, and maturing in 270 days or less.
f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve
System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government
securities to the Federal Reserve Bank of New York; certain Minnesota securities broker-dealers;
or, a bank qualified as a depositor.
54
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
g) General obligation temporary bonds of the same governmental entity issued under section
429.091, subdivision 7; 469.178, subdivision 5; or 475.6 1, subdivision 6.
As of December 31, 2015, the City had the following investments and maturities:
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) $26,767,060
Fiduciary (Statement 9) 1,835,459
Total $28,602,519
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
$1,500,000 is insured through SIPC. Each broker-dealer has provided additional protection by
providing additional insurance. This insurance is subject to aggregate limits applied to all of the
broker -dealer's accounts.
55
Investment Maturities (in Years)
Fair
Less
Investment Type
Rating
Value
Than 1
1-5
6-10
4M Fund
NR
$10
$10
$
$ -
Money Market
NR
4,982,826
4,982,826
-
Brokered Certificates ofDeposit
NR
7,181,998
2,487,262
4,446,780
247,956
Municipal Bonds
(1)
8,674,028
2,759,831
5,502,361
411,836
Federal National Mortgage Assn. Notes
Aaa
3,172,227
-
3,172,227
-
Federal Home Loan Mortgage Corp. Notes
Aaa
1,412,787
754,269
658,518
Federal Farm Credit Bank Notes
Aaa
789,072
-
789,072
-
Federal Home Loan Bank Notes
Aaa
504,200
504,200
-
Resolution Funding Corp. Strip Bonds
Aaa
593,997
-
593,997
Total
$27,311,144
$10,734,129
$15,258,706
$1,318,310
(1) $3,451,526 are rated Aaa, $499,670 are rated Aal,
Total investments
$27,311,144
$850,519 are rated Aa2, $2,044,915 are rated Aa3, $1,265,392
are rated
Deposits
1,290,740
are rated Al and $562,006 are rated AA.
Petty cash
635
NR - Not Rated
Total cash and investments
$28,602,519
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) $26,767,060
Fiduciary (Statement 9) 1,835,459
Total $28,602,519
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
$1,500,000 is insured through SIPC. Each broker-dealer has provided additional protection by
providing additional insurance. This insurance is subject to aggregate limits applied to all of the
broker -dealer's accounts.
55
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
Interest rate risk — Interest rate risk is the risk that changes in interest rates of debt investments could
adversely affect the fair value of an investment. The City's investment policy requires the City to
diversify its investment portfolio to eliminate the risk of loss resulting from over concentration of
assets in a specific maturity. The policy also states the City's investment portfolio will remain
sufficiently liquid to enable the City to meet all operating requirements which might be reasonable,
i.e., not investing in maturities longer than seven years.
Credit Risk — Credit risk is the risk that an issuer or other counterparty to an investment will be unable
to fulfill its obligation to the holder of the investment. State law limits investments to commercial
paper to those rated in the highest quality category by at least two nationally recognized rating
agencies; in any security of the State of Minnesota or any of its municipalities which is rated "A" or
better by a national bond rating service for general obligation and rated "AA" or better for a revenue
obligation; a general obligation of the Minnesota Housing Finance Agency to those rated "A" or better
by a national bond rating agency; mutual funds or money market funds whose investments are
restricted to securities described in MS I I8A.04. The City's investment policy does not place further
restrictions on investment options. The City's external investment pool is with the 4M fund which is
regulated by Minnesota Statutes and the Board of Directors of the League of Minnesota Cities. The
4M fund is an unrated 2a7 -like pool and the fair value of the position in the pool is the same as the
value of pool shares.
Concentration of credit risk — Concentration of credit risk is the risk of loss that may be attributed to
the magnitude of a government's investment in a single issuer. The City's investment policy states
investments shall be diversified by limiting investments to avoid over concentration in securities from
a specific issuer or business sector (excluding U.S. Treasury securities). Investments in a single issuer
exceeding 5% of the City's overall cash and investment portfolio are in various holdings as follows:
Federal National Mortgage Association notes 11%
Note 3 RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2015 are as
follows:
56
Contract
Interfund
Delinquent
Special
for Deed
Loan
Property
Assessments
Receivable
Receivable
Taxes
Receivable
Total
Major Funds:
General
$ -
$ -
$23,694
$16
$23,710
Transit Station Assessment Fund
-
-
-
355,967
355,967
Revolving Assessment Fund
-
536,554
-
1,366,485
1,903,039
Water
-
264,772
-
108,089
372,861
Sewer
-
-
-
7,244
7,244
Nonmajor Funds
1,252,869
700,000
-
363,852
2,316,721
$1,252,869
$1,501,326
$23,694
$2,201,653
$4,979,542
56
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
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 June 2017, plus a balloon payment of approximately $1,237,000 due July 2017, as follows:
Year Ending Principal
December 31, Amount Due
2016 $29,617
2017 1,252,869
Total $1,282,486
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, 2015, the various
components of unavailable revenue were as follows:
Major Funds
Transit
Station Revolving
General Assessment Assessment Nonmajor
Fund Fund Fund Funds Total
Delinquent property taxes receivable
$76,081 S - S -
$10
$76,091
Special assessments not yet due
786 461,967 1,695,074
376,814
2,534,641
Other
6,286 - 6,208
1,558
14,052
Total unavailable revenue
$83,153 $461,967 $1,701,282
$378,382
$2,624,784
57
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
Note 5 CAPITAL ASSETS
Ending
Ending
Capital asset activity for the year ended December
31, 2015 was as
follows:
Decrease
Balance
Business -type activities:
Beginning
Ending
Primary Government
Balance
Increase
Decrease
Balance
Governmental activities:
$2,077,035
$300
$ -
$2,077,335
Capital assets not being depreciated:
1,600,222
2,834,139
(1,009,695)
3,424,666
Land
$19,256,817
$609,000
$ -
$19,865,817
Construction in progress
2,644,451
524,078
(2,213,218)
955,311
Permanent easements
1,155,950
42,229
1,198,179
Total capital assets not being depreciated
23,057,218
1,175,307
(2,213,218)
22,019,307
Capital assets being depreciated:
1,519,674
464,701
(246,371)
1,738,004
Buildings and structures
22,865,874
213,713
23,079,587
Machinery and equipment
8,544,633
813,521
(768,230)
8,589,923
Temporary easements
12,931
-
(458,118)
12,931
Other improvements
7,157,618
257,142
7,414,760
Infrastructure
113,143,360
2,599,898
(380,267)
115,362,992
Total capital assets being depreciated
151,724,416
3,884,273
(1,148,497)
154,460,192
Less accumulated depreciation for:
-
-
-
Buildings and structures
6,709,071
560,034
(211,747)
7,269,105
Machinery and equipment
6,019,738
492,117
(671,862)
5,839,993
Temporary easements
12,932
-
(1,012,188)
12,932
Other improvements
2,956,256
310,552
($3,321,774)
3,266,808
Infrastructure
75,493,154
3,573,166
(380,267)
78,686,054
Total accumulated depreciation
91,191,151
4,935,869
(1,052,129)
95,074,891
Governmental activities capital assets - net
$83,590,483
$123,711
($2,309,586)
$81,404,608
58
Ending
Ending
Primary Government
Balance
Increase
Decrease
Balance
Business -type activities:
Capital assets not being depreciated:
Land
$2,077,035
$300
$ -
$2,077,335
Construction in progress
1,600,222
2,834,139
(1,009,695)
3,424,666
Permanent easements
1,156,467
63,061
1,219,528
Total capital assets not being depreciated
4,833,724
2,897,500
(1,009,695)
6,721,529
Capital assets being depreciated:
Buildings and structures
12,445,429
-
12,445,429
Machinery and equipment
1,519,674
464,701
(246,371)
1,738,004
Temporary easements
-
-
-
Other improvements
104,441,564
2,088,474
(211,747)
106,318,291
Total capital assets being depreciated
118,406,667
2,553,175
(458,118)
120,501,724
Less accumulated depreciation for:
Buildings and structures
1,743,081
248,917
1,991,998
Machinery and equipment
969,768
80,365
(243,878)
806,255
Temporary easements
-
-
-
Other improvements
57,500,673
3,010,336
(211,747)
60,299,262
Total accumulated depreciation
60,213,522
3,339,618
(455,625)
63,097,515
Business -type activities capital assets - net
63,026,869
2,111,057
(1,012,188)
64,125,738
Total capital assets - net
$146,617,352
$2,234,768
($3,321,774)
$145,530,346
58
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities:
General government
$354,646
Public safety
150,694
Public works
3,545,115
Parks and recreation
885,414
Total depreciation expense - governmental activities $4,935,869
Business -type activities:
Water $1,555,151
Sewer 959,419
Surface water management 825,048
Total depreciation expense - business -type activities $3,339,618
Note 6 CITY INDEBTEDNESS
The City issues general obligation bonds, to provide funds for the acquisition and construction of major capital
facilities. The City'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, 2015, the governmental activities long-term debt of the City consisted of the following:
General Long -Term Debt:
General Obligation Bonds:
G.O. Capital Improvement Plan Bonds, Series 2008A
G.O. Library Refunding Bonds, 2010A
Total general obligation bonds
General Obligation Improvement Bonds:
G.O. Improvement Refunding Bonds, Series 2009A
Compensated absences payable
Total City indebtedness - governmental activities
Final Authorized
Issue Maturity Interest And Outstanding
Date Date Rate Issued 12/31/15
11/18/08 2/01/30 4.00%-4.60% $7,550,000 $6,220,000
1/27/10 2/01/22 2.00%-3.10% 3,660,000 2,705,000
11,210,000 8,925,000
6/03/09 2/01/17 3.00% 6,020,000 1,155,000
N/A 769,263
$17,230,000 $10,849,263
59
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
BUSINESS -TYPE ACTIVITIES
As of December 31, 2015, the business -type activities long-term debt of the City consisted of the following:
G.O. Revenue Bonds:
Water Revenue Bonds, Series 201 IA
Water Revenue Refunding Bonds, Series 201 IB
Water and Sewer Revenue Bonds, Series 2012A
Bond premium
Total G.O. revenue bonds
Compensated absences payable
Total City indebtedness - business -type activities
GOVERNMENTAL ACTIVITIES
N/A 163,977
$11,067,339 $9,420,212
Annual debt service requirements to maturity for the governmental activities long-term debt are as follows:
Final
G.O. Improvement Bonds
Authorized
Governmental Activities
Issue
Maturity
Interest
And
Outstanding
Date
Date
Rate
Issued
12/31/15
10/6/2011
2/1/2022
0.30%- 2.15%
$5,920,000
$4,400,000
10/6/2011
2/1/2025
2.00%- 3.00%
3,720,000
3,720,000
11/15/2012
2/1/2023
1.00%- 1.55%
1,245,000
1,010,000
-
2020
755,000
182,339
126,235
-
2021
780,000
11,067,339
9,256,235
N/A 163,977
$11,067,339 $9,420,212
Annual debt service requirements to maturity for the governmental activities long-term debt are as follows:
It is not practicable to determine the specific year for payment of long-term accrued compensated absences.
The City has issued General Improvement Bonds to provide funds for various construction projects. In case of
a default by property owners, the City can place a lien on the property in order to recover the default.
60
General Obligation Bonds
G.O. Improvement Bonds
Year Ending
Governmental Activities
Governmental Activities
December 31,
Principal
Interest
Principal
Interest
2016
$640,000
$337,111
$565,000
$26,175
2017
670,000
315,298
590,000
8,850
2018
695,000
291,648
-
-
2019
725,000
266,964
-
-
2020
755,000
241,053
-
-
2021
780,000
213,948
-
-
2022
815,000
185,370
-
-
2023
405,000
162,014
-
-
2024
425,000
144,270
-
-
2025
445,000
125,454
-
-
2026
465,000
105,545
-
-
2027
490,000
84,413
-
-
2028
510,000
62,035
-
-
2029
540,000
38,275
-
-
2030
565,000
12,995
-
-
Total
$8,925,000
$2,586,393
$1,155,000
$35,025
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.
60
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
BUSINESS -TYPE ACTIVITIES
Annual debt service requirements to maturity for the business -type long-term debt are as follows:
G.O. Revenue Bonds
Year Ending Business -Type Activities
December 31, Principal Interest
2016
$805,000
$180,541
2017
815,000
172,300
2018
835,000
162,228
2019
1,290,000
145,828
2020
1,310,000
120,679
2021
1,355,000
90,821
2022
920,000
63,634
2023
670,000
42,971
2024
555,000
25,575
2025
575,000
8,625
Total
$9,130,000
$1,013,202
It is not practicable to determine the specific year for payment of long-term accrued compensated absences.
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2015 was as follows:
Governmental activities:
Bonds payable:
General obligation bonds
G.O. improvement bonds
G.O. tax increment bonds
Total bonds payable
Compensated absences
Total governmental activity
long-term liabilities
Business -type activities:
G.O. revenue bonds
Bond premium
Compensated absences
Total business -type activity
long-term liabilities
Beginning
Ending
Due Within
Balance
Additions
Deletions
Balance
One Year
$9,550,000
$ -
($625,000)
$8,925,000
$640,000
1,705,000
-
(550,000)
1,155,000
565,000
635,000
-
(635,000)
-
-
11,890,000
-
(1,810,000)
10,080,000
1,205,000
791,637
534,807
(557,180)
769,264
112,469
$12,681,637
$534,807
($2,367,180)
$10,849,264
$1,317,469
$9,905,000
$ -
($775,000)
$9,130,000
$805,000
140,261
-
(14,026)
126,235
14,026
172,794
114,083
(122,900)
163,977
23,974
$10,218,055
$114,083
($911,926)
$9,420,212
$843,000
For the governmental activities, compensated absences are generally liquidated by the General and Special
Revenue Funds.
61
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
All long-term bonded indebtedness outstanding at December 31, 2015 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, 2015 totaled $3,052.
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, 2015 is $5,982,310.
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:
62
Revenue Pledged
Current Year
Percent of
Debt service
Remaining
Principal
Pledged
Use of
Total
as a %of
Term of
Principal
and Interest
Revenue
Bond Issue
Proceeds
Type
Debt Service
net revenues
Pledge
and Interest
Paid
Received
2008A CIP bonds
Public Works Facility constriction
Property taxes
100%
n/a
2009-2029
$8.508.885
$558.168
$590.600
2010A Library Refunding bonds
Library constriction
Property taxes
100%
n/a
2012-2021
$3.002.508
$423.680
$446.098
- refunded the 2002A Library bonds
2009A Improvement Refunding bonds
Infrastructure improvements
Special assessments
68%
n/a
2009-2017
$1.190.025
$592.900
$984.295
- refunded the 2005A & 2006A bonds
Property nixes
32%
2011A Water Revenue bonds
Water infrastructure improvements
Water usage charges
100%
27.7%
2012-2021
$4.650.914
$722.923
$2.608.986
- refunded the 2005B bonds
2011B Water Revenue bonds
Water infrastructure improvements
Water usage charges
100%
4.1%
2012-2024
$4.429.100
$106.000
$2.608.986
- refunded the 2005B bonds
20A Water & Seaver Revenue 12
Purchase of meter reading equipment
Water and sewer
100%
2.6%
2013 - 2022
$1.063.188
$132.540
$5.131.410
bonds
usage charges
62
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
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, 2015.
Future scheduled tax levies for all bonds outstanding at December 31, 2015 totaled $9,999,960.
Note 8 DEFINED BENEFIT PENSION PLANS
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension
expense, information about the fiduciary net position of the Public Employees Retirement Association
(PERA) and additions to/deductions from PERA's fiduciary net position have been determined on the same
basis as they are reported by PERA except that PERA's fiscal year end is June 30. For this purpose, plan
contributions are recognized as of employer payroll paid dates and benefit payments and refunds are
recognized when due and payable in accordance with the benefit terms. Investments are reported at fair
value.
B. PLAN DESCRIPTION
The City participates in the following cost-sharing multiple -employer defined benefit pension plans
administered by PERA. PERA's defined benefit pension plans are established and administered in
accordance with Minnesota Statutes, Chapters 353 and 356. PERA's defined benefit pension plans are tax
qualified plans under Section 401(a) of the Internal Revenue Code.
1. General Employees Retirement Fund (GERF)
All full-time (with the exception of employees covered by PEPFF) and certain part-time employees of
the City are covered by the GERF. 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. The
Basic Plan was closed to new members in 1967. The City no longer has any employees who are
members of the Basic Plan. All new members must participate in the Coordinated Plan.
63
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
2. Public Employees Police and Fire Fund (PEPFF)
The PEPFF, originally established for police officers and firefighters not covered by a local relief
association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999,
the PEPFF also covers police officers and firefighters belonging to a local relief association that
elected to merge with and transfer assets and administration to PERA.
C. BENEFITS PROVIDED
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute
and can only be modified by the state legislature.
Benefit increases are provided to benefit recipients each January. Increases are related to the funding ratio
of the plan. Members in plans that are at least 90 percent funded for two consecutive years are given 2.5%
increases. Members in plans that have not exceeded 90% funded, or have fallen below 80%, are given 1%
increases.
The benefit provisions stated in the following paragraphs of this section are current provisions and apply to
active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving
them yet are bound by the provisions in effect at the time they last terminated their public service.
1. GERF Benefits
Benefits are based on a member's highest average salary for any five successive years of allowable
service, age, and years of credit at termination of service. Two methods are used to compute benefits
for PERA's members. The retiring member receives the higher of a step -rate benefit accrual formula
(Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a
member is 1.2% of average salary for each of the first ten years and 1.7% for each remaining year.
Under Method 2, the annuity accrual rate is 1.7% of average salary for each year of service. For
members hired prior to July 1, 1989, a full annuity is available when age plus years of service equal 90
and normal retirement age is 65. For members hired on or after July 1, 1989, normal retirement age is
the age for unreduced Social Security benefits capped at 66.
2. PEPFF Benefits
Benefits for the PEPFF members first hired after June 30, 2010, but before July 1, 2014, vest on a
prorated basis from 50% after five years up to 100% after ten years of credited service. Benefits for
PEPFF members first hired after June 30, 2014, vest on a prorated basis from 50% after ten years up to
100% after twenty years of credited service. The annuity accrual rate is 3% of average salary for each
year of service. For PEPFF who were first hired prior to July 1, 1989, a full annuity is available when
age plus years of service equal at least 90.
D. CONTRIBUTIONS
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates
can only be modified by the state legislature.
64
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
1. GERF Contributions
Coordinated Plan members were required to contribute 6.5% of their annual covered salary in calendar
year 2015. The City was required to contribute 7.5% for Coordinated Plan members in calendar year
2015. The City's contributions to the GERF for the year ended December 31, 2015, were $346,881.
The City's contributions were equal to the required contributions as set by state statute.
2. PEPFF Contributions
Plan members were required to contribute 10.8% of their annual covered salary in calendar year 2015.
The City was required to contribute 16.2% of pay for PEPFF members in calendar year 2015. The
City's contributions to the PEPFF for the year ended December 31, 2015, were $29,647. The City's
contributions were equal to the required contributions as set by state statute.
E. PENSION COSTS
1. GERF Pension Costs
At December 31, 2015, the City reported a liability of $4,099,373 for its proportionate share of the
GERF's net pension liability. The net pension liability was measured as of June 30, 2015, and the
total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date. The City's proportion of the net pension liability was based on the City's
contributions received by PERA during the measurement period for employer payroll paid dates from
July 1, 2014, through June 30, 2015, relative to the total employer contributions received from all of
PERA's participating employers. At June 30, 2015, the City's proportion was 0.0791%, which was a
decrease of 0.0081% from its proportion measured as of June 30, 2014.
For the year ended December 31, 2015, the City recognized pension expense of $450,126 for its
proportionate share of the GERF's pension expense.
At December 31, 2015, the City reported its proportionate share of the GERF's deferred outflows of
resources and deferred inflows of resources related to pensions from the following sources:
Differences between expected and
actual economic experience
Changes in actuarial assumptions
Difference between projected and
actual investment earnings
Changes in proportion
Contributions paid to PERA
subsequent to the measurement date
Total
65
Deferred Outflows Deferred Inflows
of Resources of Resources
388,069
$206,678
285,373
174,665 -
$562,734 $492,051
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
$174,665 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended December 31, 2016. Other amounts reported as deferred outflows and
inflows of resources related to pensions will be recognized in pension expense as follows:
Year Ended Pension
December 31, Expense
2016
($67,000)
2017
(67,000)
2018
(67,000)
2019
97,018
2. PEPFF Pension Costs
At December 31, 2015, the City reported a liability of $227,247 for its proportionate share of the
PEPFF's net pension liability. The net pension liability was measured as of June 30, 2015, and the
total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date. The City's proportion of the net pension liability was based on the City's
contributions received by PERA during the measurement period for employer payroll paid dates from
July 1, 2014, through June 30, 2015, relative to the total employer contributions received from all of
PERA's participating employers. At June 30, 2015, the City's proportion was 0.02%, which was a
decrease of 0.007% from its proportion measured as of June 30, 2014.
For the year ended December 31, 2015, the City recognized pension expense of $51,319 for its
proportionate share of the PEPFF's pension expense. The City also recognized $1,800 for the year
ended December 31, 2015, as pension expense (and grant revenue) for its proportionate share of the
State of Minnesota's on -behalf contributions to the PEPFF. Legislation passed in 2013 required the
State of Minnesota to begin contributing $9 million to the PEPFF each year, starting in fiscal year
2014.
At December 31, 2015, the City reported its proportionate share of the PEPFF's deferred outflows of
resources and deferred inflows of resources related to pensions from the following sources:
Differences between expected and
actual economic experience
Changes in actuarial assumptions
Difference between projected and
actual investment earnings
Changes in proportion
Contributions paid to PERA
subsequent to the measurement date
Total
66
Deferred Outflows Deferred Inflows
of Resources of Resources
$36,852
39,594
63,002
14,809 -
$117,405 $36,852
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
$14,809 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended December 31, 2016. Other amounts reported as deferred outflows and
inflows of resources related to pensions will be recognized in pension expense as follows:
Year Ended Pension
December 31, Expense
2016
$15,129
2017
15,129
2018
15,129
2019
15,127
2020
5,230
F. ACTUARIAL ASSUMPTIONS
The total pension liability in the June 30, 2015, actuarial valuation was determined using the following
actuarial assumptions:
Inflation 2.75% per year
Active Member Payroll Growth 3.50% per year
Investment Rate of Return 7.90%
Salary increases were based on a service -related table. Mortality rates for active members, retirees,
survivors and disabilitants were based on RP -2000 tables for males or females, as appropriate, with
slight adjustments. Cost of living benefit increases for retirees are assumed to be 1% effective every
January 1st until 2034 and 2.5% thereafter.
Actuarial assumptions used in the June 30, 2015, valuation were based on the results of actuarial
experience studies. The experience study in the GERF was for the period July 1, 2004, through June
30, 2008, with an update of economic assumptions in 2014. The experience study for PEPFF was for
the period July 1, 2004 through June 30, 2009.
There are no changes in actuarial assumptions in 2015.
67
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
The long-term expected rate of return on pension plan investments is 7.9%. The State Board of
Investment, which manages the investments of PERA, prepares an analysis of the reasonableness of
the long-term expected rate of return on a regular basis using a building-block method in which best -
estimate ranges of expected future rates of return are developed for each major asset class. These
ranges are combined to produce an expected long-term rate of return by weighting the expected future
rates of return by the target asset allocation percentages. The target allocation and best estimates of
arithmetic real rates of return for each major asset class are summarized in the following table:
G. DISCOUNT RATE
The discount rate used to measure the total pension liability was 7.9%. The projection of cash flows
used to determine the discount rate assumed that employee and employer contributions will be made at
the rate specified in statute. Based on that assumption, each of the pension plan's fiduciary net
position was projected to be available to make all projected future benefit payments of current active
and inactive employees. Therefore, the long-term expected rate of return on pension plan investments
was applied to all periods of projected benefit payments to determine the total pension liability.
H. PENSION LIABILITY SENSITIVITY
The following presents the City's proportionate share of the net pension liability for all plans it
participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what
the City's proportionate share of the net pension liability would be if it were calculated using a
discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate:
1% Decrease in 1% Increase in
Discount Rate (6.9%) Discount Rate (7.9%) Discount Rate (8.9%)
City's proportionate share of the
GERE net pension liability $6,445,671 $4,099,373 $2,161,691
City's proportionate share of the
PEPEE net pension liability 442,906 227,247 49,074
I. PENSION PLAN FIDUCIARY NET POSITION
Detailed information about each pension plan's fiduciary net position is available in a separately -
issued PERA financial report that includes financial statements and required supplementary
information. That report may be obtained at www.mnpera.or4.
68
Target
Long -Term Expected
Asset Class
Allocation
Real Rate of Return
Domestic Stocks
45%
5.50%
International Stocks
15%
6.00%
Bonds
18%
1.45%
Alternative Assets
20%
6.40%
Cash
2%
0.50%
G. DISCOUNT RATE
The discount rate used to measure the total pension liability was 7.9%. The projection of cash flows
used to determine the discount rate assumed that employee and employer contributions will be made at
the rate specified in statute. Based on that assumption, each of the pension plan's fiduciary net
position was projected to be available to make all projected future benefit payments of current active
and inactive employees. Therefore, the long-term expected rate of return on pension plan investments
was applied to all periods of projected benefit payments to determine the total pension liability.
H. PENSION LIABILITY SENSITIVITY
The following presents the City's proportionate share of the net pension liability for all plans it
participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what
the City's proportionate share of the net pension liability would be if it were calculated using a
discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate:
1% Decrease in 1% Increase in
Discount Rate (6.9%) Discount Rate (7.9%) Discount Rate (8.9%)
City's proportionate share of the
GERE net pension liability $6,445,671 $4,099,373 $2,161,691
City's proportionate share of the
PEPEE net pension liability 442,906 227,247 49,074
I. PENSION PLAN FIDUCIARY NET POSITION
Detailed information about each pension plan's fiduciary net position is available in a separately -
issued PERA financial report that includes financial statements and required supplementary
information. That report may be obtained at www.mnpera.or4.
68
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
Note 9 SINGLE EMPLOYER PENSION PLAN
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related
to pensions, and pension expense, information about the fiduciary net position of the Chanhassen Fire
Department Relief Association (the Relief Association) and additions to / deductions from the Relief
Association's fiduciary net position have been determined on the same basis as they were reported by
the Relief Association. For this purpose, benefit payments are recognized when due and payable in
accordance with the benefit terms. Investments are reported at fair value.
B. PLAN DESCRIPTION
All members of the Chanhassen Fire Department are covered by a defined benefit pension plan
administered by the Relief Association. The Plan is a single employer retirement plan and is
established and administered in accordance with Minnesota Statute, Chapter 69.
C. BENEFITS PROVIDED
Twenty Year Service Pension
Prior to April 1997, each member who is at least 50 years of age, has retired from the Fire
Department, has served at least twenty years of active service with such department before
retirement, and has been a member of the Relief Association in good standing at least ten years
prior to such retirement shall be entitled to receive either a monthly lifetime service pension or a
defined benefit lump sum pension. After April 1997, each member shall be entitled to receive a
defined benefit lump sum pension.
Monthly service pensions shall be $410 per month. Defined benefit service pension per year of
service shall be $6,000. The maximum service pension shall not exceed the maximum service
pension amount permitted under the flexible service pension maximums pursuant to Minnesota
Section 424A.02, Subdivision 3. Members who choose the lump sum receive no additional
interest accrual.
69
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
Ten Year Service But Less Than Twenty Year Service
Each member who is at least 50 years of age; who has retired from the Fire Department; who has
served at least five years of active service with such department before retirement but has not
served at least 20 years of active service; and, who has been a member of the Association in good
standing at least ten years prior to such retirement, shall be entitled to either a pro -rated monthly
service pension or a pro -rated lump sum service pension based on the percentages in the following
table:
For Duty of:
more than but less than
5 years
6 years
40%
6
7
44
7
8
48
8
9
52
9
10
56
10
11
60
11
12
64
12
13
68
13
14
72
14
15
76
15
16
80
16
17
84
17
18
88
18
19
92
19
20
96
20
100
The payment amount will be calculated by using the amount payable per year of service in effect at the
time of such early retirement, multiplied by the number of accumulated years of service, multiplied by
the appropriate percentage as defined above.
During the time a member is on early -vested pension, he or she will not be eligible for disability
benefits.
Survivors Benefit
Prior to April 1997, if any active vested or deferred member dies leaving an eligible surviving spouse,
they shall receive a monthly pension for a guaranteed fifteen year period. After April 1997, an eligible
surviving spouse shall receive a lump sum payment calculated in accordance with the by-laws. If there
is no surviving spouse, then the deceased member's designated beneficiary or their estate would
receive the payment.
A surviving spouse of a member receiving a monthly pension shall receive 50% of the member's
monthly benefit, based on the date of death.
70
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
Permanent Disability
Any member of the Relief Association contracting sickness or injury, incapacitating the member from
attending to their business, from causes outside or within their line of duty, and a physician's report
shows that that member is unable to perform their duties, they are entitled to their full accrued lump
sum benefit, payable immediately.
Temporary Disability_
Any member of the Relief Association who becomes temporarily incapacitated from attending to their
business due to illness of injury, sustained in the performance of such business, and is unable to work
for a period of one week or longer, shall be paid a benefit of $5 per day for a period of no longer than
120 days in any one fiscal year, providing the member is under the care of a physician or doctor during
this period.
Death Benefit
Upon the death of any active or deferred member, the beneficiaries of the deceased member shall be
paid a death benefit in an amount equivalent to the accrued service pension.
D. EMPLOYEES COVERED BY BENEFIT TERMS
At December 31, 2015, the following employees were covered by the benefit terms:
Retirees and beneficiaries
currently receiving benefits
Retired members entitled to
benefits but have not received them
21
Active members:
Fully vested (20 years or more) 4
Partially vested (5 years to 19 years) 23
Non -vested (less than 5 years) 14
Total
E. CONTRIBUTIONS
69
Minnesota Statutes Chapter 424A.092 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 not the same
as those used to compute the accrued pension liability. The Relief Association is comprised of
volunteers; therefore, there are no payroll expenditures (i.e., there are no covered payroll percentage
calculations).
71
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
Contributions totaling $212,355 ($174,784 from the State of Minnesota, $37,571 from the City of
Chanhassen) were made to the Relief Association in accordance with state statute requirements for the
year ended December 31, 2015.
F. NET PENSION LIABILITY
The City's net pension liability was measured as of December 31, 2015, and the total pension liability
used to calculate the net pension liability was determined by an actuarial valuation as of December 31,
2015.
G. ACTUARIAL METHOD AND SIGNIFICANT ASSUMPTIONS
The total pension liability was determined by an actuarial valuation as of December 31, 2015 using the
following actuarial assumptions, applied to all periods in the measurement:
Valuation date
Measurement date (assets and funded status)
Actuarial cost method
Amortization method
Asset valuation method
Actuarial assumptions:
Investment rate of return
Projected salary increases
Includes inflation at
Cost -of -living adjustments
Age of service retirement
Post-retirement benefit increases
12/31/2015
12/31/2015
Entry Age Normal
Level dollar
Closed 20 -year period
Market Value
5%
N/A
3%
N/A
The later of the age 50 and
20 years of service
None
Mortality assumptions were determined using the RP -2000 Mortality Table projected generationally
using Scale BB.
72
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
The long-term expected rate of return on pension plan investments was determined using a building-
block method in which best -estimates of expected future real rates of return (expected returns, net of
pension plan investment expense and inflation) are developed for each major asset class. These real
rates of return are combined to produce the long-term expected rate of return by weighting the
expected future real rates of return by the target asset allocation percentage and by adding expected
inflation. For each major asset class that is included in the pension plan's target asset allocation as of
December 31, 2015, these best estimates are summarized in the following table:
Target Long -Term Expected
Asset Class Allocation Real Rate of Return
Equity investments 60% 5%
Mutual funds 30% 2%
Other 5% 2%
Cash 5% 0%
H. DISCOUNT RATES
The discount rate used to measure the total pension liability was 5%. The liability discount rate was
developed using the alternative method described in paragraph 43 of GASB 67, which states that "if
the evaluations required by paragraph 41 can be made with sufficient reliability without a separate
projection of cash flows into and out of the pension plan, alternative methods may be applied in
making the evaluations." The determination of the discount rate assumed that the plan's current
underfunded status, combined with Minnesota statutory funding requirements, provide sufficient
reliability that projected plan assets will be adequate to pay future retiree benefits. Therefore, the
plan's long-term expected return on plan investments was applied to all periods of projected benefit
payments to determine the total pension liability. The municipal bond rate used in the rate
calculation was 3.57% based on the weekly rate closest to but not later than the measurement date of
the "state and local bond" rate from Federal Reserve statistical section.
73
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
I. CHANGES IN THE NET PENSION LIABILITY
Balance at December 31, 2014
Changes for the year:
Service cost
Interest
Changes in benefit terms
Differences between expected and actual experience
Contributions - employer
On behalf contributions - State of MN
Contributions - employee
Net investment income
Benefit payments, including refunds of employee
contributions
Administrative expense
Other changes
Net changes
Balance at December 31, 2015
J. PENSION LIABILITY SENSITIVITY
The following presents the net pension liability of the Relief Association, calculated using the
discount rate of 5.0%, as well as what the net pension liability would be if it were calculated using a
discount rate that is 1 -percentage -point lower (4.0 percent) or 1 -percentage -point higher (6.0
percent) than the current rate:
Net pension liability
1% Decrease
(4.0%)
$751,835
K. PENSION PLAN FIDUCIARY NET POSITION
Current
Discount Rate
(5.0%)
$625,199
1% Increase
(6.0%)
$504,594
Detailed information about the pension plan's fiduciary net position is available in the separately
issued Relief Association financial report. That report may be obtained by writing to Chanhassen
Fire Department Relief Association, P.O. Box 147, Chanhassen, Minnesota, 55317.
74
Increase (Decrease)
Total Pension
Plan Fiduciary
Net Pension
Liability
Net Position
Liability
(a)
(b)
(a) - (b)
$2,524,303
$2,276,084
$248,219
86,369
86,369
118,909
118,909
279,202
279,202
(5,328)
(5,328)
37,571
(37,571)
177,784
(177,784)
(105,958)
105,958
(470,743)
(470,743)
(7,225)
7,225
8,409
(368,571)
376,980
$2,532,712
$1,907,513
$625,199
The following presents the net pension liability of the Relief Association, calculated using the
discount rate of 5.0%, as well as what the net pension liability would be if it were calculated using a
discount rate that is 1 -percentage -point lower (4.0 percent) or 1 -percentage -point higher (6.0
percent) than the current rate:
Net pension liability
1% Decrease
(4.0%)
$751,835
K. PENSION PLAN FIDUCIARY NET POSITION
Current
Discount Rate
(5.0%)
$625,199
1% Increase
(6.0%)
$504,594
Detailed information about the pension plan's fiduciary net position is available in the separately
issued Relief Association financial report. That report may be obtained by writing to Chanhassen
Fire Department Relief Association, P.O. Box 147, Chanhassen, Minnesota, 55317.
74
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
L. PENSION EXPENSE AND DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED
INFLOWS OF RESOURCES RLEATED TO PENSIONS
For the year ended December 31, 2015, the City recognized pension expense of $426,039, including
$177,784 as pension expense (and grant revenue) for the State of Minnesota's on -behalf
contribution to the plan. At December 31, 2015, the City reported deferred outflows of resources
and deferred inflows of resources related to pensions from the following sources:
Differences between expected and
actual economic experience
Difference between projected and
actual investment earnings
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
$4,262
170,558 -
$170,558 $4,262
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized as pension expense as follows:
Year Ended Pension
December 31, Expense
2016
$41,574
2017
41,574
2018
41,574
2019
41,574
M. PENSION EXPENSE
Pension expense recognized by the City for all pension plans for the fiscal year ended December 31,
2015 is as follows:
GERF
$450,126
PEPFF
51,319
Fire Relief
426,039
Total
$927,484
75
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
Note 10 OTHER POST -EMPLOYMENT BENEFITS (OPEB)
A. PLAN DESCRIPTION
In addition to providing the pension benefits described in Note 8 and 9, the City provides post -
employment health care benefits (as defined in paragraph B) for retired employees through a single -
employer defined benefit plan. The City's OPEB plan is administered by the City. The authority to
provide these benefits is established in Minnesota Statutes Sections 471.61 Subd. 2a, and 299A.465.
The benefits, benefit levels, employee contributions and employer contributions are governed by the
City and can be amended by the City through its personnel manual and collective bargaining
agreements with employee groups. The Plan is not accounted for as a trust fund, as an irrevocable
trust has not been established to account for the plan. The Plan does not issue a separate report.
B. BENEFITS PROVIDED
Retirees
The City is required by State Statute to allow retirees to continue participation in the City's group
health insurance plan if the individual terminates service with the City through service retirement or
disability retirement. Employees who satisfy the rule of 80 or attain age 55 and have completed 10
years of service at termination can immediately commence medical benefits. Retirees may obtain
dependent coverage while the participating retiree is under age 65. Covered spouses may continue
coverage after the retiree's death. The surviving spouse of an active employee may continue coverage
in the group health insurance plan after the employee's death.
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, 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 City
Active employees
Total
Kc
61
Participating employers 1
76
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
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.
E. ANNUAL OPEB COSTS AND NET OPEB OBLIGATION
The City's annual 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, 2015, was calculated as follows:
Annual required contribution (ARC)
$13,175
Interest on net OPEB obligation
1,021
Adjustment to ARC
(1,477)
Annual OPEB cost
12,719
Contributions made during the year
(7,647)
Increase (decrease) in net OPEB obligation 5,072
Net OPEB obligation - beginning of year 25,531
Net OPEB obligation - end of year $30,603
For governmental activities, the net OPEB obligation is generally liquidated by the General Fund.
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net
OPEB obligation for the previous three years was as follows:
Fiscal Year Annual OPEB
Ended Cost
Percentage of
Employer Annual OPEB Cost
Contributions Contributed
Net OPEB
Obligation
December 31, 2013 $9,008 $4,756 52.8% $19,788
December 31, 2014 12,823 7,080 55.2% 25,531
December 31, 2015 12,719 7,647 60.1% 30,603
77
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
F. FUNDED STATUS AND FUNDING PROGRESS
The City currently has no assets that have been irrevocably deposited in a trust for future health
benefits, therefore, the actuarial value of assets is zero. The funded status of the plan was as follows:
Unfunded
Actuarial Actuarial UAAL as a
Actuarial Actuarial Accred Accred Funded Covered Percentage of
Valuation Value of Assets Liability (AAL)* Liability (UAAL) Ratio Payroll Covered Payroll
Date (a) (b) (b -a) (a/b) (c) ( (b -a) / c)
January 1, 2014 $0 $116,025 $116,025 0.0% $4,568,337 2.5%
*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 an open basis. The remaining amortization period at December 31, 2015 was
30 years.
78
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
Note 11 DUE TO/FROM OTHER FUNDS, INTERFUND LOANS AND TRANSFERS
Amounts reported as due to/from other funds at December 31, 2015 are as follows:
Major Funds:
Revolving Assessment Fund
TH 101 Improvements -
Lyman to Pioneer
Nonmajor Funds:
TH 101 Improvements -
Pioneer to Flying Cloud
Total
Due From Due To
Other Funds Other Funds
$588,022
515,751
72,271
$588,022 $588,022
Due to/from other funds represent temporary balances due to reclassifications of funds with internally reported
negative cash balances. The balances will be eliminated in 2016 upon the collection of amounts due from other
governments relating to intergovernmental revenue.
Amounts reported as interfund loan receivable/payable at December 31, 2015 are as follows:
Major Funds:
Transit Station Assessment Fund
Revolving Assessment Fund
Water Fund
Nonmajor Funds:
Capital Replacement Fund
Interfund
Loan Receivable
700,000
368,797
700,000
Interfund
Loan Payable
$368,797
1,400,000
Total $1,768,797 $1,768,797
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 $98,136 of repayments in 2015 and $104,025 is expected to be repaid in 2016.
During 2015, the City adapted resolution 2015-15 authorizing an interfund loan to finance construction of Well
415. The Water Fund borrowed $700,000 from the Revolving Assessment Fund and $700,000 from the Capital
Equipment Replacement Fund. The loan will be repaid at an interest rate of 2.5% over eight years, beginning
in 2016. Payments during years 2016-2019 will be made to the Revolving Assessment Fund and payments
during years 2020-2023 will be made to the Capital Replacement Fund. $163,446 is expected to be repaid in
2016.
79
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
Interfund transfers made during 2015 are summarized as follows:
Major Funds:
General Fund
Transit Station Assessment Fund
Revolving Assessment Fund
Water Fund
Sewer Fund
Surface Water Management Fund
Nonmajor Funds
Total
Transfers In Transfers Out
$ - $700,000
29,765
1,187,604 291,349
29,765 87,515
32,084 187,369
- 244,804
971,240 679,891
$2,220,693 $2,220,693
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 2015
transfers are considered routine and consistent with previous practices, with the exception of an additional
$560,000 transfer from the Entertainment TIF 44 Capital Project Fund to the 2004C G.O. Tax Increment Bond
Debt Service Fund so that the bonds could be retired early.
Note 12 CONDUIT DEBT
From time to time, the City has issued conduit debt to provide financial assistance to private -sector entities for
the acquisition and construction of facilities deemed to be in the public interest. The bonds are secured by the
property financed and are payable solely from payments received on the underlying mortgage loans. Upon
repayment of the bonds, ownership of the acquired facilities transfers to the private -sector entity served by the
bond issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for
the repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying
financial statements.
As of December 31, 2015, the outstanding conduit debt is as follows:
Bonds
Project Name Issued
Chapel Hill Academy, Series 2005A 12/05
St. Hubert Catholic Community, Series 2007 10/07
Presbyterian Homes, Series 2014B 06/14
Note 13 DEFICIT FUND BALANCES
Original 12/31/15 Maturity
Principal Principal Date
$1,337,700 $458,016 2019
5,942,140 3,269,343 2027
9,300,000 8,773,435 2034
The City has deficit fund balances of $368,797 in the Transit Station Assessment Capital Project Fund and
$3,712 in the Frontier Development 42 TIF 411 at December 31, 2015. The deficits will be eliminated through
special assessment and tax increment collections.
80
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
Note 14 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.
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, 2015.
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.
81
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
As of December 31, 2015, 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 Pte) — issued in 2006 in the principal
sum of $300,000 with an interest rate of 0% per annum. Semi-annual principal payments shall be paid
commencing August 1, 2009 and continuing through February 1, 2016. Payments are payable solely
from available tax increment, which term means 90% of the tax increment that is received by the City
in the six month period immediately before each payment date through February 1, 2014 and 65%
from August 1, 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, 2015 the
principal amount outstanding on the note was $196,658.
F. COMMITTED CONTRACTS
At December 31, 2015, the City had commitments of $817,852 for uncompleted construction
contracts. In addition, the City entered into a construction contract during 2016 totaling $713,385.
82
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
Note 15 FUND BALANCE
A. CLASSIFICATIONS
Definitions of fund balance classifications are included in Note 1P. At December 31, 2015, a
summary of the governmental fund balance classifications are as follows:
Nonspendable:
Prepaid items
Contract for deed receivable
Total nonspendable
Restricted for:
Debt service
Park improvements
Tax increment purposes
CATV - public education
Public safety - fire
Total restricted
Assigned for:
Capital improvements
Cable communications
Cemetery operations
Debt service reserve
Total assigned
Unassigned
Total
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, 2015,
the fund balance of the General Fund exceeded this level.
83
Transit
Station
Revolving
Other
General
Assessment
Assessment
TH 101
Governmental
Fund
Fund
Fund
Improvements
Funds
Total
$72,114
$
$
$
$836
$72,950
-
1,252,869
1,252,869
72,114
0
0
0
1,253,705
1,325,819
-
3,297,264
3,297,264
1,896,923
1,896,923
475,357
475,357
116,718
116,718
38,092
38,092
0
0
0
0
5,824,354
5,824,354
1,685,968
761
2,822,927
4,509,656
-
294,977
294,977
9,499
9,499
-
-
772,221
772,221
0
0
1,685,968
761
3,899,624
5,586,353
5,258,232
(368,797)
-
(3,712)
4,885,723
$5,330,346
($368,797)
$1,685,968
$761
$10,973,971
$17,622,249
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, 2015,
the fund balance of the General Fund exceeded this level.
83
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
Note 16 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, 2015 totaled $178,359. Terms of each lease outstanding at year end are as follows:
Lessee
Terms
Sprint
$25,082 per year with 3% annual increases
Sprint
$23,486 per year with 3% annual increases
Verizon
$2,068 per month
Nextel West Corp.
$22,926 per year with 3% annual increases
T -Mobile
$2,153 per month with 3% annual increases
T -Mobile
$22,258 per year with 3% annual increases
StoneBridge/Nextera
5% of gross revenues associated with equipment used on property
Cingular/AT&T
$2,029 per month with 3% annual increases
Note 17 RECENTLY ISSUED ACCOUNTING STANDARDS
Current Term
8/1/11 - 7/31/16
12/1/05 - 11/30/20
8/1/13 - 4/30/17
12/1/14 - 11/30/19
11/1/05 - 10/31/20
1/1/14 - 12/31/19
4/1/06 - 12/31/19
8/1/12 - 7/31/17
The Governmental Accounting Standards Boards (GASB) recently approved the following statements which
were not implemented for these financial statements:
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.
Statement No. 73 Accounting and Financial Reporting for Pensions and Related Assets That Are Not
within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67
and 68. The provisions in Statement 73 are effective for fiscal years beginning after June 15, 2015 — except
those provisions that address employers and governmental nonemployer contributing entities for pensions
that are not within the scope of Statement 68, which are effective for fiscal years beginning after June 15,
2016.
Statement No. 74 Financial Reporting for Posteniployment Benefit Plans Other Than Pension Plans. The
provisions in Statement 74 are effective for fiscal years beginning after June 15, 2016.
Statement No. 75 Accounting and Financial Reporting for Postenzploynzent Benefits Other Than Pensions.
The provisions in Statement 75 are effective for fiscal years beginning after June 15, 2017.
Statement No. 76 The Hierarchy of Generally Accepted Accounting Principles for State and Local
Governments. The provisions in Statement 76 are effective for reporting periods beginning after June 15,
2015.
Statement No. 77 Tax Abatement Disclosures. The provisions of this Statement are effective for reporting
periods beginning after December 31, 2015.
Statement No. 78 Pensions Provided through Certain Multiple -Employer Defined Benefit Pension Plans.
The provisions of this Statement are effective for reporting periods beginning after December 15, 2015.
84
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
Statement No. 79 Certain External Investment Pools and Pool Participants. The provisions of this
Statement are effective for reporting periods beginning after June 15, 2015, except for certain provisions
on portfolio quality, custodial credit risk, and shadow pricing which are effective for reporting periods
beginning after December 15, 2015.
Statement No. 80 Blending Requirements for Certain Component Units. The provisions of this Statement
are effective for reporting periods beginning after June 15, 2016.
Statement No. 81 Irrevocable Split -Interest Agreements. The provisions of this Statement are effective for
reporting periods beginning after December 15, 2016.
The effect these standards may have on future financial statements is not determinable at this time, but it is
expected that Statement No. 75 will have a material impact.
Note 18 CHANGE IN ACCOUNTING PRINCIPLE
For the year ended December 31, 2015, the City implemented GASB Statement No. 68, Accounting and
Financial Reporting for Pensions an Amendment of GASB Statement No. 27. GASB 68 addresses accounting
and financial reporting for pension plans that are provided to employees of state and local governments. The
standard requires the City to record its share of the net pension liability of defined benefit plans, as well as any
corresponding deferred inflows and outflows of resources. See Note 8 for further information.
The standard required retroactive implementation which resulted in a restatement of net position as of
December 31, 2014. Certain amounts necessary to fully restate 2014 financial information are not
determinable, therefore, prior year comparative amounts have not been restated. Details of the prior period
adjustment are as follows:
Net position - January 1, 2015, as previously reported
Prior period adjustment:
Deferred outflows of resources - pension related
Net pension liability
Net position - January 1, 2015, as restated
Note 19 SUBSEQUENT EVENT
Surface water
Total
Governmental Management
Business -Type
Activities Water Fund SewerFund Fund
Activities
$92,080,291 $32,412,014 $17,598,001 $14,568,794
$64,578,809
153,007 13,445 11,011 6,893 31,349
(3,732,888) (322,508) (264,114) (165,334) (751,956)
$88,500,410 $32,102,951 $17,344,898 $14,410,353 $63,858,202
On March 3, 2016, the City issued $6,370,000 of General Obligation Bonds, Series 2016A, with an average
coupon rate of 2.35%. $4,805,000 of bonds were issued to refund the 2008A General Obligation Bonds and
$1,565,000 of bonds were issued to provide funding for water system improvements.
85
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86
REQUIRED SUPPLEMENTARY INFORMATION
87
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2015
With Comparative Actual Amounts For The Year Ended December 31, 2014
Revenues:
General property taxes
Excess tax increment received
Total general property taxes
Licenses and permits:
Licenses - general government
Licenses - public safety
Permits - public safety
Permits - public works
Permits - community development
Total licenses and permits
Intergovernmental:
State aid - police - public safety
State aid - fire - public safety
PERA - public safety
Other
Total intergovernmental
Charges for services:
General government
Public safety
Public works
Park and recreation
Community development
Total charges for services
Fines and forfeits:
Public safety
Investment earnings
Net change in fair value of investments
Contributions and donations:
General government
Public safety
Park and recreation
Total contributions and donations
Refunds and reimbursements:
General government
Public safety
Public works
Park and recreation
Community development
Total refunds and reimbursements
Other:
General government
Public safety
Total other
Total revenues
2015
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Statement 10
Page 1 of 6
2014
Actual
Amounts
$7,804,831
$7,804,831
$7,805,301
$470
$7,652,802
-
-
20,503
20,503
132,358
7,804,831
7,804,831
7,825,804
20,973
7,785,160
4,000
4,000
3,600
(400)
4,600
98,500
98,500
92,190
(6,310)
97,549
859,500
859,500
1,141,363
281,863
1,113,462
33,000
33,000
49,965
16,965
44,557
6,500
6,500
8,885
2,385
4,095
1,001,500
1,001,500
1,296,003
294,503
1,264,263
125,000
125,000
134,909
9,909
138,305
140,000
140,000
186,517
46,517
164,566
20,000
20,000
19,467
(533)
19,467
45,000
45,000
43,132
(1,868)
51,059
330,000
330,000
384,025
54,025
373,397
76,450
76,450
76,714
264
77,215
6,000
6,000
7,384
1,384
6,768
59,500
59,500
40,733
(18,767)
71,130
429,550
429,550
444,942
15,392
416,846
18,000
18,000
27,794
9,794
35,805
589,500
589,500
597,567
8,067
607,764
112,500
112,500
117,189
4,689
100,516
45,000
45,000
62,861
17,861
54,140
-
-
(13,292)
(13,292)
(1,919)
500
500
600
100
600
200
200
400
200
200
20,669
20,669
25,400
4,731
21,890
21,369
21,369
26,400
5,031
22,690
10,300
10,300
5,281
(5,019)
16,034
7,500
7,500
7,150
(350)
4,096
48,000
48,000
42,438
(5,562)
45,553
9,100
9,100
8,689
(411)
3,556
100
100
-
(100)
41
75,000
75,000
63,558
(11,442)
69,280
177,800
177,800
184,576
6,776
186,379
7,000
7,000
5,553
(1,447)
5,342
184,800
184,800
190,129
5,329
191,721
10,164,500
10,164,500
10,550,244
385,744
10,467,012
88
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 6
For The Year Ended December 31, 2015
With Comparative Actual Amounts For The Year Ended December 31, 2014
89
2015
2014
Budgeted Amounts
Actual
Variance with
Actual
Original
Final
Amounts
Final Budget
Amounts
Expenditures:
General government:
Legislative:
Current:
Personal services
$32,200
$32,200
$30,538
$1,662
$31,932
Contractual services
76,700
76,700
70,105
6,595
75,257
Total legislative
108,900
108,900
100,643
8,257
107,189
Administrative office:
Current:
Personal services
463,900
463,900
468,877
(4,977)
453,094
Materials and supplies
-
-
17
(17)
154
Contractual services
54,100
54,100
54,558
(458)
62,664
Total administrative office
518,000
518,000
523,452
(5,452)
515,912
Finance:
Current:
Personal services
266,000
266,000
268,219
(2,219)
248,109
Materials and supplies
200
200
-
200
-
Contractual services
51,400
51,400
69,774
(18,374)
50,545
Total finance
317,600
317,600
337,993
(20,393)
298,654
Election:
Current:
Personal services
22,500
22,500
-
22,500
24,841
Materials and supplies
3,500
3,500
-
3,500
5,481
Contractual services
12,200
12,200
-
12,200
10,409
Total election
38,200
38,200
0
38,200
40,731
Legal:
Current:
Contractual services
161,000
161,000
167,264
(6,264)
175,563
Property assessment:
Current:
Contractual services
130,000
130,000
138,862
(8,862)
132,379
M.I.S.:
Current:
Personal services
193,000
193,000
193,918
(918)
188,959
Materials and supplies
30,000
30,000
23,812
6,188
26,629
Contractual services
46,200
46,200
43,930
2,270
43,945
Total M.I.S.
269,200
269,200
261,660
7,540
259,533
89
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 3 of 6
For The Year Ended December 31, 2015
With Comparative Actual Amounts For The Year Ended December 31, 2014
Total general government
2,064,300
2015
2,036,920
27,380
2014
Budgeted Amounts
Actual
Variance with
Actual
Original
Final
Amounts
Final Budget
Amounts
Expenditures: (continued)
Current:
General government: (continued)
Personal services
71,200
71,200
City hall:
(543)
71,040
Materials and supplies
3,000
3,000
Current:
439
3,002
Contractual services
1,674,000
1,674,000
Personal services
$75,900
$75,900
$76,058
($158)
$74,522
Materials and supplies
39,800
$39,800
42,823
(3,023)
41,417
Contractual services
291,400
291,400
278,218
13,182
276,275
Total City hall
407,100
407,100
397,099
10,001
392,214
Library:
(88,016)
651,072
Materials and supplies
48,900
48,900
Current:
6,780
39,094
Contractual services
123,100
123,100
Materials and supplies
3,000
3,000
1,584
1,416
6,282
Contractual services
111,300
111,300
108,363
2,937
104,820
Total library
114,300
114,300
109,947
4,353
111,102
Total general government
2,064,300
2,064,300
2,036,920
27,380
2,033,277
Public safety:
Police:
Current:
Personal services
71,200
71,200
71,743
(543)
71,040
Materials and supplies
3,000
3,000
2,561
439
3,002
Contractual services
1,674,000
1,674,000
1,644,130
29,870
1,505,124
Total police
1,748,200
1,748,200
1,718,434
29,766
1,579,166
Fire department:
Current:
Personal services
631,500
631,500
719,516
(88,016)
651,072
Materials and supplies
48,900
48,900
42,120
6,780
39,094
Contractual services
123,100
123,100
116,528
6,572
133,737
Total fire department
803,500
803,500
878,164
(74,664)
823,903
Code enforcement:
Current:
Personal services
614,200
614,200
639,690
(25,490)
655,962
Materials and supplies
6,500
6,500
4,886
1,614
5,361
Contractual services
12,400
12,400
11,601
799
13,192
Total code enforcement
633,100
633,100
656,177
(23,077)
674,515
Animal control:
Current:
Personal services
58,400
58,400
49,363
9,037
50,981
Materials and supplies
2,300
2,300
853
1,447
3,558
Contractual services
7,600
7,600
5,161
2,439
9,649
Total animal control
68,300
68,300
55,377
12,923
64,188
Total public safety
3,253,100
3,253,100
3,308,152
(55,052)
3,141,772
90
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2015
With Comparative Actual Amounts For The Year Ended December 31, 2014
Expenditures: (continued)
Public works:
Engineering:
Current:
Personal services
Materials and supplies
Contractual services
Total engineering
Street maintenance:
Current:
Personal services
Materials and supplies
Contractual services
Total street maintenance
Street lighting:
Current:
Materials and supplies
Contractual services
Total street lighting
City garage:
Current:
Personal services
Materials and supplies
Contractual services
Total City garage
Total public works
Statement 10
Page 4 of 6
2015 2014
Budgeted Amounts Actual Variance with Actual
Original Final Amounts Final Budget Amounts
$583,800
$583,800
$614,012
($30,212)
$572,245
900
900
1,964
(1,064)
580
30,400
30,400
24,878
5,522
29,816
615,100
615,100
640,854
(25,754)
602,641
210,800
210,800
205,293
717,000
717,000
689,264
27,736
737,620
119,400
119,400
107,399
12,001
115,882
27,500
27,500
22,591
4,909
47,892
863,900
863,900
819,254
44,646
901,394
3,000
3,000
454
2,546
2,319
364,500
364,500
353,522
10,978
331,604
367,500
367,500
353,976
13,524
333,923
282,800
282,800
267,119
15,681
277,004
203,500
203,500
182,596
20,904
205,661
74,000
74,000
62,813
11,187
70,368
560,300
560,300
512,528
47,772
553,033
2,406,800
2,406,800
2,326,612
80,188
2,390,991
Parks and recreation:
Parks and recreation commission:
Current:
Materials and supplies 100 100 12 88 -
Contractual services 2,700 2,700 3,174 (474) 2,931
Total parks and recreation commission 2,800 2,800 3,186 (386) 2,931
Parks and recreation administration:
Current:
Personal services
Materials and supplies
Contractual services
Total parks and recreation
administration
Recreation center:
Current:
Personal services
Materials and supplies
Contractual services
Total recreation center
143,500
143,500
146,818
(3,318)
142,629
400
400
153
247
-
6,700
6,700
5,150
1,550
5,410
150,600
150,600
152,121
(1,521)
148,039
210,800
210,800
205,293
5,507
205,012
35,000
35,000
20,315
14,685
29,487
92,700
92,700
80,196
12,504
71,520
338,500
338,500
305,804
32,696
306,019
91
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 5 of 6
For The Year Ended December 31, 2015
With Comparative Actual Amounts For The Year Ended December 31, 2014
Total parks and recreation 1,975,900 1,975,900 1,972,053 3,847 1,980,862
92
2015
2014
Budgeted Amounts
Actual
Variance with
Actual
Original
Final
Amounts
Final Budget
Amounts
Expenditures: (continued)
Parks and recreation: (continued)
Senior citizen center:
Current:
Personal services
$49,800
$49,800
$50,317
($517)
$48,830
Materials and supplies
3,300
3,300
4,631
(1,331)
2,540
Contractual services
19,900
19,900
28,623
(8,723)
24,899
Total senior citizen center
73,000
73,000
83,571
(10,571)
76,269
Recreation programs:
Current:
Personal services
181,300
181,300
178,426
2,874
189,298
Materials and supplies
20,300
20,300
22,819
(2,519)
20,964
Contractual services
97,000
97,000
96,064
936
102,138
Total recreation programs
298,600
298,600
297,309
1,291
312,400
Self-supporting programs:
Current:
Personal services
33,800
33,800
30,078
3,722
35,400
Materials and supplies
5,200
5,200
4,255
945
2,989
Contractual services
22,000
22,000
11,315
10,685
17,021
Total self-supporting programs
61,000
61,000
45,648
15,352
55,410
Lake Ann Park operations:
Current:
Personal services
9,500
9,500
10,909
(1,409)
8,637
Materials and supplies
10,200
10,200
9,512
688
9,536
Contractual services
41,800
41,800
44,488
(2,688)
41,493
Total Lake Ann Park operations
61,500
61,500
64,909
(3,409)
59,666
Park maintenance:
Current:
Personal services
787,800
787,800
832,508
(44,708)
829,738
Materials and supplies
81,100
81,100
84,016
(2,916)
72,974
Contractual services
90,600
90,600
68,643
21,957
80,881
Total park maintenance
959,500
959,500
985,167
(25,667)
983,593
Downtown maintenance:
Current:
Contractual services
-
-
2,010
(2,010)
3,081
Recreation sports:
Current:
Personal services
21,300
21,300
24,632
(3,332)
24,523
Materials and supplies
8,800
8,800
7,696
1,104
8,920
Contractual services
300
300
-
300
11
Total recreation sports
30,400
30,400
32,328
(1,928)
33,454
Total parks and recreation 1,975,900 1,975,900 1,972,053 3,847 1,980,862
92
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2015
With Comparative Actual Amounts For The Year Ended December 31, 2014
Expenditures: (continued)
Community development:
Planning commission:
Current:
Personal services
Materials and supplies
Contractual services
Total planning commission
Planning administration:
Current:
Personal services
Materials and supplies
Contractual services
Total planning administration
Senior facility commission:
Current:
Personal services
Contractual services
Total senior facility commission
Total community development
Total expenditures
Revenues over expenditures
Other financing sources (uses):
Sale of capital assets
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance - January 1
Fund balance - December 31
2015
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Statement 10
Page 6 of 6
2014
Actual
Amounts
$ -
$ -
$163
($163)
$1,907
200
200
-
200
-
3,600
3,600
3,418
182
5,872
3,800
3,800
3,581
219
7,779
415,000
415,000
421,922
(6,922)
392,286
400
400
82
318
114
11,500
11,500
23,705
(12,205)
6,563
426,900
426,900
445,709
(18,809)
398,963
24,000
24,000
25,430
(1,430)
24,823
9,700
9,700
10,506
(806)
8,542
33,700
33,700
35,936
(2,236)
33,365
464,400
464,400
485,226
(20,826)
440,107
10,164,500
10,164,500
10,128,963
35,537
9,987,009
0
0
421,281
421,281
480,003
288,547
(700,000) (700,000) (450,810)
(700,000) (700,000) (162,263)
$0 $0 (278,719) ($278,719) 317,740
93
5,609,065
$5,330,346
5,291,325
$5,609,065
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS - RETIREE HEALTH PLAN
For The Year Ended December 31, 2015
Statement 11
*Using the projected unit credit actuarial pay cost method
94
Unfunded
Actuarial
Actuarial
Actuarial
UAAL as a
Actuarial
Value of
Accrued
Accrued
Funded
Covered
Percentage of
Valuation
Assets
Liability (AAL)*
Liability (UAAL)
Ratio
Payroll
Covered Payroll
Date
(a)
(b)
(b -a)
(alb)
(c)
((b-a)l c)
January 1, 2008
$0
$52,268
$52,268
0.0%
$4,180,235
1.3%
January 1, 2011
$0
$89,875
$89,875
0.0%
$4,299,466
2.1%
January 1, 2014
$0
$116,025
$116,025
0.0%
$4,568,337
2.5%
*Using the projected unit credit actuarial pay cost method
94
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY -
GENERAL EMPLOYEES RETIREMENT FUND
For The Year Ended December 31, 2015
Statement 12
Proportionate Share
of the Net Pension Plan Fiduciary
Liability as a Net Position as
Covered- Percentage of its a Percentage
Employee Covered -Employee of the Total
Payroll (b) Payroll (a/b) Pension Liability
June 30, 2015 December 31, 2015 0.0791% $4,099,373 $4,651,703 88.1% 78.2%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
95
Proportionate
Proportion
Share (Amount)
(Percentage) of
of the Net
Measurement Fiscal Year the Net Pension
Pension
Date Ending Liability
Liability (a)
Statement 12
Proportionate Share
of the Net Pension Plan Fiduciary
Liability as a Net Position as
Covered- Percentage of its a Percentage
Employee Covered -Employee of the Total
Payroll (b) Payroll (a/b) Pension Liability
June 30, 2015 December 31, 2015 0.0791% $4,099,373 $4,651,703 88.1% 78.2%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
95
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 13
SCHEDULE OF PENSION CONTRIBUTIONS - GENERAL EMPLOYEES RETIREMENT FUND
For The Year Ended December 31, 2015
Statutorily
Contributions in
Contribution
Covered-
Contributions as a
Required
Relation to the
Deficiency
Employee
Percentage of
Fiscal Year Contribution
Statutorily Required
(Excess)
Payroll
Covered -Employee
Ending (a)
Contribution (b)
(a -b)
(c)
Payroll (blc)
December 31, 2015 $346,881
$346,881
$0
$4,625,080
7.5%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
96
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY -
PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Year Ended December 31, 2015
Statement 14
Proportionate
Proportion
Share (Amount)
(Percentage) of
of the Net
Measurement Fiscal Year the Net Pension
Pension
Date Ending Liability
Liability (a)
June 30, 2015 December 31, 2015 0.0200%
$227,247
Statement 14
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
97
Proportionate Share
of the Net Pension
Plan Fiduciary
Liability as a
Net Position as
Covered-
Percentage of its
a Percentage
Employee
Covered -Employee
of the Total
Payroll (b)
Payroll (a/b)
Pension Liability
$180,370
126.0%
86.6%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
97
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 15
SCHEDULE OF PENSION CONTRIBUTIONS - PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Year Ended December 31, 2015
Statutorily
Contributions in
Contribution
Covered-
Contributions as a
Required
Relation to the
Deficiency
Employee
Percentage of
Fiscal Year Contribution
Statutorily Required
(Excess)
Payroll
Covered -Employee
Ending (a)
Contribution (b)
(a -b)
(c)
Payroll (blc)
December 31, 2015 $29,647
$29,647
$0
$183,006
16.2%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
98
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 16
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS -
CHANHASSEN FIRE DEPARTMENT RELIEF ASSOCIATION
For The Year Ended December 31, 2015
Fiscal year ending and measurement date
December 31, 2015
Total pension liability:
177,784
Service cost
$86,369
Interest
118,909
Changes of benefit terms
279,202
Differences between expected and actual experience
(5,328)
Changes of assumptions
-
Benefit payments, including refunds of employee contributions
(470,743)
Net change in total pension liability
8,409
Total pension liability - beginning
2,524,303
Total pension liability - ending (a)
$2,532,712
Plan fiduciary net position:
Contributions - employer
$37,571
Contributions - State of Minnesota
177,784
Contributions - employee
-
Net investment income
(105,958)
Benefit payments, including refunds of employee contributions
(470,743)
Administrative expense
(7,225)
Net change in plan fiduciary net position
(368,571)
Plan fiduciary net position - beginning
2,276,084
Plan fiduciary net position - ending (b)
$1,907,513
Net pension liability - ending (a) - (b)
$625,199
Plan fiduciary net position as a percentage of the total pension liability
75.3%
Covered -employee payroll*
$0
Net pension liability as a percentage of covered employee payroll*
Not applicable
*The Chanhassen Fire Department Relief Association is comprised of volunteers, therefore there are no
payroll expenditures.
GASB 68 was implemented in 2015. Information prior to 2015 is not available.
99
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 17
SCHEDULE OF CONTRIBUTIONS - CHANHASSEN FIRE DEPARTMENT RELIEF ASSOCIATION
For The Year Ended December 31, 2015
Statutorily
Contributions in
Contribution
Covered-
Contributions as a
Required
Relation to the
Deficiency
Employee
Percentage of
Fiscal Year Contribution
Statutorily Required
(Excess)
Payroll
Covered -Employee
Ending (a)
Contribution (b)
(a -b)
(c)
Payroll (blc)
December 31, 2015 SO
SO
SO
*The Chanhassen Fire Department Relief Association is comprised of volunteers, therefore, there are no payroll expenditures.
(i.e., there are no covered payroll amounts or percentage calculations.)
GASB 68 was implemented in 2015. Information prior to 2015 is not available.
100
CITY OF CHANHASSEN, MINNESOTA
NOTES TO RSI
December 31, 2015
A. LEGAL COMPLIANCE — BUDGETS
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 expenditure category level.
B. PENSION INFORMATION
PERA — General Emnlovees Retirement Fund
There are no factors that affect trends in the amounts reported, such as change of benefit terms or
assumptions. With only one year reported in the RSI, there is no additional information to include in the
notes. Details can be obtained from the financial reports of PERA.
PERA — Public Emnlovees Police and Fire Fund
There are no factors that affect trends in the amounts reported, such as change of benefit terms or
assumptions. With only one year reported in the RSI, there is no additional information to include in the
notes. Details can be obtained from the financial reports of PERA.
Single Employer — Fire Relief Association
There are no factors that affect trends in the amounts reported, such as change in benefit terms or
assumptions. With only one year reported in the RSI, there is no additional information to include in the
notes. Details can be obtained from the financial reports of the Fire Relief Association.
101
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102
COMBINING AND INDIVIDUAL NONMAJOR FUND FINANCIAL
STATEMENTS AND SCHEDULES
103
- This page intentionally left blank -
104
NONMAJOR GOVERNMENTAL FUNDS
105
- This page intentionally left blank -
106
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).
107
CITY OF CHANHASSEN, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2015
With Comparative Totals For December 31, 2014
Assets:
Cash and investments
Accrued interest receivable
Due from other governmental units
Accounts receivable - net
Property taxes receivable
Prepaid items
Interfund loan receivable
Contract for deed receivable
Special assessments receivable
Statement 18
Total assets $464,850 $4,438,512 $6,720,267 $11,623,629 $11,570,310
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable
Salaries payable
Contracts payable
Due to other funds
Unearned revenue
Total liabilities
Deferred inflows of resources:
Unavailable revenue
Fund balance:
Nonspendable
Restricted
Assigned
Unassigned
Total fund balance
Total liabilities, deferred inflows
of resources, and fund balance
$2,418
$ -
$85,383
Total Nonmajor
Special
Debt
Capital
Governmental Funds
Revenue
Service
Project
2015
2014
$395,320
$4,042,261
$4,410,358
$8,847,939
$9,956,620
2,593
20,106
36,118
58,817
34,838
-
-
206,499
206,499
44,063
66,661
-
70,881
137,542
99,114
-
7,118
5,579
12,697
16,561
276
-
560
836
2,000
-
-
700,000
700,000
-
-
-
1,282,486
1,282,486
1,327,053
-
369,027
7,786
376,813
90,061
Total assets $464,850 $4,438,512 $6,720,267 $11,623,629 $11,570,310
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable
Salaries payable
Contracts payable
Due to other funds
Unearned revenue
Total liabilities
Deferred inflows of resources:
Unavailable revenue
Fund balance:
Nonspendable
Restricted
Assigned
Unassigned
Total fund balance
Total liabilities, deferred inflows
of resources, and fund balance
$2,418
$ -
$85,383
$87,801
$212,146
2,870
-
-
2,870
1,593
-
-
13,461
13,461
104,391
-
-
72,271
72,271
14,950
-
-
94,873
94,873
1,517,915
5,288
0
265,988
271,276
1,850,995
-
369,027
9,355
378,382
95,277
276
-
1,253,429
1,253,705
1,289,575
154,810
3,297,264
2,372,280
5,824,354
4,423,943
304,476
772,221
2,822,927
3,899,624
3,918,939
-
-
(3,712)
(3,712)
(8,419)
459,562
4,069,485
6,444,924
10,973,971
9,624,038
$464,850
$4,438,512
$6,720,267
$11,623,629
$11,570,310
108
CITY OF CHANHASSEN, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 19
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2015
With Comparative Totals For The Year Ended December 31, 2014
Other financing sources (uses)
Sale of capital assets - -
41,015
41,015
12,984
Total Nonmajor
297,867
Special
Debt
Capital
Governmental Funds
(679,891)
Revenue
Service
Project
2015
2014
Revenues:
(513,772)
49,457
(98,928)
Fund balance - January 1 404,619 3,561,199
6,958,696
General property taxes
$ -
$1,268,998
$985,000
$2,253,998
$2,025,980
Tax increment collections
-
-
200,338
200,338
307,940
Licenses and permits
-
-
269,897
269,897
427,371
Intergovernmental
-
-
2,978,209
2,978,209
195,715
Special assessments
-
787,164
-
787,164
11,715
Charges for services
201,976
-
-
201,976
190,814
Investment earnings
5,759
44,664
80,235
130,658
92,573
Net change in fair value of investments
(1,218)
(9,443)
(16,965)
(27,626)
(3,283)
Contributions and donations
39,620
-
12,155
51,775
44,228
Refunds and reimbursements
-
-
22,396
22,396
8,591
Other
-
-
77,493
77,493
73,398
Total revenues
246,137
2,091,383
4,608,758
6,946,278
3,375,042
Expenditures:
Current:
General government
142,114
7,000
205,161
354,275
312,160
Public safety
39,618
-
83,771
123,389
116,591
Public works
-
-
2,063,753
2,063,753
533,629
Parks and recreation
-
-
84,929
84,929
158,761
Community development
-
-
30,156
30,156
24,180
Capital outlay:
General government
-
-
-
-
34,080
Public safety
9,462
-
112,681
122,143
23,980
Public works
-
-
1,733,737
1,733,737
251,300
Parks and recreation
-
-
467,333
467,333
474,775
Decertification of TIF district
-
-
-
-
569,760
Debt service:
Principal
-
1,810,000
-
1,810,000
675,000
Interest and paying agent fees
-
439,470
-
439,470
414,397
Total expenditures
191,194
2,256,470
4,781,521
7,229,185
3,588,613
Revenues over (under) expenditures
54,943
(165,087)
(172,763)
(282,907)
(213,571)
Other financing sources (uses)
Sale of capital assets - -
41,015
41,015
12,984
Transfers in - 673,373
297,867
971,240
291,669
Transfers out - -
(679,891)
(679,891)
(190,010)
Total other financing sources (uses) 0 673,373
(341,009)
332,364
114,643
Net change in fund balance 54,943 508,286
(513,772)
49,457
(98,928)
Fund balance - January 1 404,619 3,561,199
6,958,696
10,924,514
9,722,966
Fund balance - December 31 $459,562 $4,069,485
$6,444,924
$10,973,971
$9,624,038
Reconciliation of beginning fund balance to prior year ending fund balance:
Prior year ending fund balance reported above
$9,624,038
Reclassification of 368 2009A G.O. Refunding Bonds fund balance, now presented as a nonmajor
fund
1,300,476
Fund balance - January 1, 2015 as reported on this statement
$10,924,514
109
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110
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.
III
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2015
With Comparative Totals For December 31, 2014
Statement 20
112
201
Contribution
202 Cemetery
210 CATV
Total Nonmajor
Special
Fund
Fund
Fund
Revenue Funds
2015
2014
Assets:
Cash and investments
$31,220
$9,378
$354,722
$395,320
$350,043
Accrued interest receivable
247
121
2,225
2,593
1,425
Due from other governmental units
-
-
-
-
735
Accounts receivable - net
7,427
-
59,234
66,661
54,009
Prepaid items
276
-
-
276
-
Total assets
$39,170
$9,499
$416,181
$464,850
$406,212
Liabilities and Fund Balance
Liabilities:
Accounts payable
$802
$ -
$1,616
$2,418
$ -
Salaries payable
-
-
2,870
2,870
1,593
Total liabilities
802
0
4,486
5,288
1,593
Fund balance:
Nonspendable
276
-
-
276
-
Restricted
38,092
-
116,718
154,810
176,089
Assigned
-
9,499
294,977
304,476
228,530
Total fund balance
38,368
9,499
411,695
459,562
404,619
Total liabilities and fund balance
$39,170
$9,499
$416,181
$464,850
$406,212
112
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES Statement 21
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2015
With Comparative Totals For The Year Ended December 31, 2014
201
Contribution 202 Cemetery 210 CATV Total Nonmajor Special
Fund Fund Fund Revenue Funds
2015 2014
Revenues:
Charges for services
$ -
$1,850
$200,126
$201,976
$190,814
Investment earnings
548
269
4,942
5,759
3,760
Net change in fair value of investments
(116)
(57)
(1,045)
(1,218)
(133)
Contributions and donations
39,620
-
-
39,620
44,228
Total revenues
40,052
2,062
204,023
246,137
238,669
Expenditures:
Current:
General government
-
19,981
122,133
142,114
128,129
Public safety
39,618
-
-
39,618
34,488
Capital outlay:
Public safety
9,462
-
-
9,462
-
Total expenditures
49,080
19,981
122,133
191,194
162,617
Revenues over expenditures
(9,028)
(17,919)
81,890
54,943
76,052
Other financing sources (uses):
Transfers in - - - - 33,344
Net change in fund balance (9,028) (17,919) 81,890 54,943 109,396
Fund balance - January 1 47,396 27,418 329,805 404,619 295,223
Fund balance - December 31 $38,368 $9,499 $411,695 $459,562 $404,619
113
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114
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.
115
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2015
With Comparative Totals For December 31, 2014
Statement 22
116
367 2008A
368 2009A
369 2010A
300 Permanent
G.O. Public
G.O.
G.O. Library
Revolving
Works Facility
Refunding
Refunding
Total Nonmajor
Debt
Debt
Bonds
Bonds
Bonds
Service Funds
2015
2014
Assets:
Cash and investments
$767,291
$948,438
$1,696,553
$629,979
$4,042,261
$2,246,153
Accrued interest receivable
4,930
4,175
8,606
2,395
20,106
7,541
Property taxes receivable
-
3,402
1,339
2,377
7,118
7,029
Special assessments receivable
51,964
-
317,063
-
369,027
82,275
Total assets
$824,185
$956,015
$2,023,561
$634,751
$4,438,512
$2,342,998
Liabilities, Deferred Inflows of Resources,
and Fund
Balance
Liabilities:
$ -
$ -
$ -
$ -
$ -
$ -
Deferred inflows of resources:
Unavailable revenue
51,964
-
317,063
-
369,027
82,275
Fund balance:
Restricted
-
956,015
1,706,498
634,751
3,297,264
1,530,306
Assigned
772,221
-
-
-
772,221
730,417
Total fund balance
772,221
956,015
1,706,498
634,751
4,069,485
2,260,723
Total liabilities, deferred inflows
of resources, and fund balance
$824,185
$956,015
$2,023,561
$634,751
$4,438,512
$2,342,998
116
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 23
CHANGES IN FUND BALANCES
NONMAJOR DEBT SERVICE FUNDS
For The Year Ended December 31, 2015
With Comparative Totals For The Year Ended December 31, 2014
117
362 2004C
367 2008A
300
Taxable G.O.
G.O. Public
369 2010A
Permanent
Tax Incr.
Works
368 2009A G.O.
G.O. Library
Revolving
Refunding
Facility
Refunding
Refunding
Total Nonmajor Debt
Debt
Bonds
Bonds
Bonds
Bonds
Service Funds
2015
2014
Revenues:
General property taxes
$ -
$
$590,600
$232,300
$446,098
$1,268,998
$1,040,980
Special assessments
35,169
-
751,995
-
787,164
11,715
Investment earnings
10,950
9,274
19,119
5,321
44,664
20,559
Net change in fair value of investments
(2,315)
(1,961)
(4,042)
(1,125)
(9,443)
(730)
Total revenues
43,804
0
597,913
999,372
450,294
2,091,383
1,072,524
Expenditures:
Current:
General government
2,000
-
-
-
5,000
7,000
2,675
Debt service:
Principal
-
635,000
285,000
550,000
340,000
1,810,000
675,000
Interest and paying agent fees
-
38,373
273,617
43,350
84,130
439,470
414,397
Total expenditures
2,000
673,373
558,617
593,350
429,130
2,256,470
1,092,072
Revenues over (under) expenditures
41,804
(673,373)
39,296
406,022
21,164
(165,087)
(19,548)
Other financing sources:
Transfer in
-
673,373
-
-
-
673,373
108,325
Transfer out
-
-
(63,285)
Total other financing sources (uses)
-
673,373
-
-
-
673,373
45,040
Net change in fund balance
41,804
0
39,296
406,022
21,164
508,286
25,492
Fund balance - January 1
730,417
-
916,719
1,300,476
613,587
3,561,199
2,235,231
Fund balance - December 31
$772,221
$0
$956,015
$1,706,498
$634,751
$4,069,485
$2,260,723
Reconciliation of beginning fund balance
to prior year ending fund balance:
Prior year ending fund balance reported
above
$2,260,723
Reclassification of 368 2009A G.O.
Refunding Bonds fund balance, now
presented as a
nonmajor fund
1,300,476
Fund balance - January 1, 2015 as reported on this statement
$3,561,199
117
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118
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 49, 462 Downtown Transit Station TIF 410, 480 Frontier Development
42 TIF 411, 491 Entertainment TIF 44, and 494 North Bay TIF 45 — 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.
119
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120
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2015
With Comparative Totals For December 31, 2014
Assets:
Cash and investments
Accrued interest receivable
Due from other governmental units
Accounts receivable - net
Property taxes receivable
Prepaid items
Interfund loan receivable
Contract for deed receivable
Special assessments receivable
Total assets
Statement 24
Page 1 of 2
410 Park
420 Street
400 Capital Acquisition and
Pavement
Replacement Fund Development
Management
Liabilities, Deferred inflows of Resources, and Fund Balance
Liabilities:
Accounts payable
Due to other funds
Contracts payable
Unearned revenue
Total liabilities
Deferred inflows of resources:
Unavailable revenue
Fund balance:
Nonspendable
Restricted
Assigned
Unassigned
Total fund balance
Total liabilities, deferred inflows
of resources, and fund balance
121
$643,922
5,522
6,227
70,881
4,523
700,000
$1,896,954
12,579
3
$499,192
3,785
91,690
1,046
7,786
$1,431,075 $1,909,536 $603,499
$46,509 $12,610 $15,638
13,461
- - 88,485
46,509 12,610 117,584
1,526 3 7,816
- 1,896,923 -
1,383,040 - 478,099
1,383,040 1,896,923 478,099
$1,431,075 $1,909,536 $603,499
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2015
With Comparative Totals For December 31, 2014
122
462 Downtown
480 Frontier
422 Old Public
461 Gateway
Transit Station
Development 4 2
Works Building
Place TIF 4 9
TIF 4 10
TIF 4 11
Assets:
Cash and investments
$372,986
$24,452
$624
$ -
Accrued interest receivable
2,120
79
1
-
Due from other governmental units
-
-
-
-
Accounts receivable - net
-
-
-
-
Property taxes receivable
-
-
10
-
Prepaid items
-
-
-
-
Interfund loan receivable
-
-
-
-
Contract for deed receivable
1,282,486
-
-
-
Special assessments receivable
-
-
-
-
Total assets
$1,657,592
$24,531
$635
$0
Liabilities, Deferred inflows of Resources,
and Fund Balance
Liabilities:
Accounts payable
$ -
$6,599
$ -
$3,712
Due to other funds
-
-
-
-
Contracts payable
-
-
-
-
Unearned revenue
-
-
-
-
Total liabilities
0
6,599
0
3,712
Deferred inflows of resources:
Unavailable revenue
-
-
10
-
Fund balance:
Nonspendable
1,252,869
-
-
-
Restricted
-
17,932
625
-
Assigned
404,723
-
-
-
Unassigned
-
-
-
(3,712)
Total fund balance
1,657,592
17,932
625
(3,712)
Total liabilities, deferred inflows
of resources, and fund balance
$1,657,592
$24,531
$635
$0
122
Statement 24
Page 2 of 2
$155,149 $302,526 $81,084 $471,291 $83,349 $6,720,267 $8,821,100
123
605 TH101
491
494
600 Special
603 Lyman
Improvments -
Entertainment
North Bay
Assessment
Boulevard
Pioneer to
Total Nonmajor
TIF 4 4
TIF 4 5
Projects
Improvements
Flying Cloud
Capital Project Funds
2015
2014
$150,788
$300,934
$80,508
$439,998
$ -
$4,410,358
$7,360,424
3,801
1,592
576
6,063
-
36,118
25,782
-
-
-
25,230
83,349
206,499
43,328
-
-
-
-
-
70,881
45,105
-
-
-
-
-
5,579
9,532
560
-
-
-
-
560
2,000
-
-
-
-
-
700,000
-
-
-
-
-
-
1,282,486
1,327,053
-
-
-
-
-
7,786
7,786
$155,149
$302,526
$81,084
$471,291
$83,349
$6,720,267
$8,821,010
$315
$ -
$ -
$ -
$ -
$85,383
$212,146
-
-
-
-
72,271
72,271
14,950
-
-
-
-
-
13,461
104,391
-
-
-
-
6,388
94,873
1,517,915
315
0
0
0
78,659
265,988
1,849,402
-
-
-
-
-
9,355
13,002
560
-
-
-
-
1,253,429
1,289,575
154,274
302,526
-
-
-
2,372,280
2,717,548
-
-
81,084
471,291
4,690
2,822,927
2,959,992
-
-
-
-
-
(3,712)
(8,419)
154,834
302,526
81,084
471,291
4,690
6,444,924
6,958,696
$155,149 $302,526 $81,084 $471,291 $83,349 $6,720,267 $8,821,100
123
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124
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 25
CHANGES IN FUND BALANCES Page 1 of 2
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2015
With Comparative Totals For The Year Ended December 31, 2014
Revenues:
General property taxes
Tax increment collections
Licenses and permits
Intergovernmental
Investment earnings
Net change in fair value of investments
Contributions and donations
Refunds and reimbursements
Other
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Parks and recreation
Community development
Capital outlay:
General government
Public safety
Public works
Parks and recreation
Decertification of TIF district
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Sale of capital assets
Transfer in
Transfer out
Total other financing sources (uses)
Net change in fund balance
Fund balance - January 1
Fund balance - December 31
400 Capital
Replacement Fund
$800,000
6,153
12,265
(2,593)
12,155
9,535
3,800
841,315
205,161
83,771
19,553
36,871
112,681
356,277
372,420
1,186,734
(345,419)
41,015
41,015
(304,404)
1,687,444
$1,383,040
125
410 Park
Acquisition and
Development
269,897
27,945
(5,909)
1,005
420 Street
Pavement
Management
$185,000
1,049,197
8,408
(1,778)
292,938 1,240,827
- 776,487
48,058 -
- 398,111
93,178 1,735
141,236
151,702
(6,518)
(6,518)
145,184
1,751,739
$1,896,923
1,176,333
64,494
6,518
6,518
71,012
407,087
$478,099
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2015
With Comparative Totals For The Year Ended December 31, 2014
Revenues:
General property taxes
Tax increment collections
Licenses and permits
Intergovernmental
Investment earnings
Net change in fair value of investments
Contributions and donations
Refunds and reimbursements
Other
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Parks and recreation
Community development
Capital outlay:
General government
Public safety
Public works
Parks and recreation
Decertification of TIF district
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Sale of capital assets
Transfer in
Transfer out
Total other financing sources (uses)
Net change in fund balance
Fund balance - January 1
Fund balance - December 31
422 Old Public
461 Gateway
Works Building
Place TIF 4 9
69,007
6,852
625
-
20,303
4,710
176
(996)
(37)
65,293
-
69,007
20,442
462 Downtown
Transit Station
TIF 4 10
623
3
(1)
625
480 Frontier
Development 4 2
TIF 4 11
0
13,590 - 3,712
0
13,590
0
3,712
69,007
6,852
625
(31712)
0
0
0
0
69,007
6,852
625
(3,712)
1,588,585
11,080
-
-
$1,657,592
$17,932
$625
($3,712)
126
Statement 25
Page 2 of 2
-
-
-
-
605 TH101
205,161
491
494
600 Special
603 Lyman
Improvments -
-
Entertainment
North Bay
Assessment
Boulevard
Pioneer to
Total Nonmajor
TIF 4 4
TIF 4 5
Projects
Improvements
Flying Cloud
Capital Project Funds
-
-
84,929
158,761
10,804
2015 2014
-
-
-
30,156
24,180
$985,000 $985,000
93,316
86,096
-
-
-
200,338 307,940
-
-
-
-
-
269,897 427,371
-
-
-
1,357,000
565,859
2,978,209 195,715
8,442
3,537
1,281
13,468
-
80,235 68,254
(1,785)
(748)
(271)
(2,847)
-
(16,965) (2,420)
-
-
-
-
-
12,155 -
-
-
-
11,856
-
22,396 8,591
-
-
-
-
8,400
77,493 73,398
99,973
88,885
1,010
1,379,477
574,259
4,608,758 2,063,849
-
-
-
-
-
205,161
181,356
-
-
-
-
-
83,771
82,103
-
-
-
1,024,214
243,499
2,063,753
533,629
-
-
-
-
-
84,929
158,761
10,804
2,050
-
-
-
30,156
24,180
-
-
-
-
-
-
34,080
-
-
-
-
-
112,681
23,980
-
-
-
370,349
609,000
1,733,737
251,300
-
-
-
-
-
467,333
474,775
-
-
-
-
-
-
569,760
10,804
2,050
0
1,394,563
852,499
4,781,521
2,333,924
89,169
86,835
1,010
(15,086)
(278,240)
(172,763)
(270,075)
-
-
-
-
-
41,015
12,984
-
-
-
-
291,349
297,867
150,000
(673,373)
-
-
-
-
(679,891)
(126,725)
(673,373)
0
0
0
291,349
(341,009)
36,259
(584,204)
86,835
1,010
(15,086)
13,109
(513,772)
(233,816)
739,038
215,691
80,074
486,377
(8,419)
6,958,696
7,192,512
$154,834
$302,526
$81,084
$471,291
$4,690
$6,444,924
$6,958,696
127
CITY OF CHANHASSEN, MINNESOTA
SPECIAL REVENUE FUND - CONTRIBUTION FUND Statement 26
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2015
With Comparative Actual Amounts For The Year Ended December 31, 2014
2015
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
2014
Actual
Ammintc
Revenues:
Investment earnings
$300 $300 $548
$248
$530
Net change in fair value of investments
- - (116)
(116)
(19)
Contributions and donations
40,000 40,000 39,620
(380)
44,228
Total revenues
40,300 40,300 40,052
(248)
44,739
Expenditures:
Current:
Public safety:
Contractual services
Capital outlay
Total expenditures
Revenues over (under) expenditures
Fund balance - January 1
Fund balance - December 31
40,000 40,000 39,618 382 34,488
- - 9,462 (9,462) -
40,000 40,000 49,080 (9,080) 34,488
$300 $300
128
(9,028) ($9,328) 10,251
47,396 37,145
$38,368 $47,396
CITY OF CHANHASSEN, MINNESOTA
SPECIAL REVENUE FUND - CATV Statement 27
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2015
With Comparative Actual Amounts For The Year Ended December 31, 2014
2015
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
2014
Actual
A mmmtc
Revenues:
100,700
96,582
4,118
Franchise and PEG fees
$190,000 $190,000 $200,126
$10,126
$190,814
Investment earnings
1,000 1,000 4,942
3,942
3,168
Net change in fair value of investments
- - (1,045)
(1,045)
(112)
Total revenues
191,000 191,000 204,023
13,023
193,870
Expenditures:
Current:
General government:
Personal services
Materials and supplies
Contractual services
Total expenditures
Revenues over expenditures
Fund balance - January 1
Fund balance - December 31
100,700
100,700
96,582
4,118
98,411
25,000
25,000
11,975
13,025
7,371
22,300
22,300
13,576
8,724
16,361
148,000
148,000
122,133
25,867
122,143
$43,000 $43,000
129
81,890 $38,890 71,727
329,805 258,078
$411,695 $329,805
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130
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.
131
CITY OF CHANHASSEN, MINNESOTA
COMBINING STATEMENT OF NET POSITION
AGENCYFUNDS
December 31, 2015
With Comparative Totals For December 31, 2014
913 Moon
Valley
815 Escrow Restoration
Fund Fund Totals
Statement 28
2015 2014
Assets
Cash and investments $1,748,634 $86,825 $1,835,459 $1,306,003
Liabilities:
Escrow deposits payable $1,748,634 $86,825 $1,835,459 $1,306,003
132
CITY OF CHANHASSEN, MINNESOTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCYFUNDS
For The Year Ended December 31, 2015
Escrow Fund
Assets:
Cash and investments
Liabilities:
Escrow deposits payable
Moon Valley_ Restoration Fund
Assets:
Cash and investments
Liabilities:
Escrow deposits payable
Totals - All Agency Funds
Assets:
Cash and investments
Liabilities:
Escrow deposits payable
Statement 29
Balance Balance
01/01/15 Additions Deletions 12/31/15
$1,219,351 $1,559,713 $1,030,430 $1,748,634
$1,219,351 $1,559,713 $1,030,430 $1,748,634
$86,652 $173 $ - $86,825
$86,652 $173 $ - $86,825
$1,306,003 $1,559,886 $1,030,430 $1,835,459
$1,306,003 $1,559,886 $1,030,430 $1,835,459
133
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134
III. STATISTICAL SECTION (UNAUDITED)
135
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136
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 138-147
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 148-153
significant local revenue source, the property tax.
Debt Capacity
These tables present information to help the reader assess the affordability of the 154-159
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 160-161
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 162-167
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.
137
CITY OF CHANHASSEN, MINNESOTA
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Business -type activities:
2006
2007
2008
2009
Governmental activities:
$47,807,323
$52,502,257
$55,541,752
$55,496,919
Net investment in capital assets
$70,216,944
$68,982,379
$70,611,368
$72,106,198
Restricted:
$62,846,344
$69,794,363
$68,659,075
$67,625,968
Debt service
7,687,155
11,047,062
12,165,653
6,461,780
Park improvements
-
-
-
-
Tax increment purposes
728,150
386,552
129,033
195,265
Other purposes
-
-
-
-
Unrestricted
16,556,273
15,041,678
15,664,273
15,066,634
Total governmental activities net position
$95,188,522
$95,457,671
$98,570,327
$93,829,877
Business -type activities:
Net investment in capital assets
$47,807,323
$52,502,257
$55,541,752
$55,496,919
Unrestricted
15,039,021
17,292,106
13,117,323
12,129,049
Total business -type activities net position
$62,846,344
$69,794,363
$68,659,075
$67,625,968
Primary government:
Net investment in capital assets
$118,024,267
$121,484,636
$126,153,120
$127,603,117
Restricted:
Debt service
7,687,155
11,047,062
12,165,653
6,461,780
Park improvements
-
-
-
-
Tax increment purposes
728,150
386,552
129,033
195,265
Other purposes
-
-
-
-
Unrestricted
31,595,294
32,333,784
28,781,596
27,195,683
Total primary government net position
$158,034,866
$165,252,034
$167,229,402
$161,455,845
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.
Note: GASB 68 was implemented in 2015. Net position was restated for 2014 to reflect the reporting of net
pension liability and pension related deferred outflows of resources. Net position for years prior to
2014 was not restated.
138
Table 1
2010
2011
2012
2013
2014
2015
$73,272,450
$70,866,708
$69,987,563
$71,260,946
$71,867,072
$71,225,523
9,655,951
5,709,727
5,905,553
6,595,927
3,441,810
3,455,172
2,088,246
2,516,027
1,650,118
1,714,972
1,751,739
1,896,923
319,864
338,029
471,930
711,287
330,809
475,357
121,137
168,147
142,747
165,838
176,089
154,810
8,722,413
13,363,047
15,094,966
14,361,011
14,512,772
9,510,105
$94,180,061
$92,961,685
$93,252,877
$94,809,981
$92,080,291
$86,717,890
$57,028,340
$55,430,138
$54,475,353
$52,541,451
$54,111,608
$55,704,478
10,259,836
9,484,947
10,631,342
11,391,338
10,467,201
10,032,731
$67,288,176
$64,915,085
$65,106,695
$63,932,789
$64,578,809
$65,737,209
$130,300,790
$126,296,846
$124,462,916
$123,802,397
$125,978,680
$126,930,001
9,655,951
5,709,727
5,905,553
6,595,927
3,441,810
3,455,172
2,088,246
2,516,027
1,650,118
1,714,972
1,751,739
1,896,923
319,864
338,029
471,930
711,287
330,809
475,357
121,137
168,147
142,747
165,838
176,089
154,810
18,982,249
22,847,994
25,726,308
25,752,349
24,979,973
19,542,836
$161,468,237
$157,876,770
$158,359,572
$158,742,770
$156,659,100
$152,455,099
139
CITY OF CHANHASSEN, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Expenses
Governmental activities:
General government
Public safety
Public works
Parks and recreation
Community development
Interest on long-term debt
Total governmental activities expenses
Business -type activities:
Water
Sewer
Surface water management
Total business -type activities expenses
Total primary government expenses
Program revenues
Governmental activities:
Charges for services:
Licenses and permits
Charges for services
Fines and forfeits
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business -type activities:
Charges for services:
Water
Sewer
Surface water management
Operating grants and contributions
Capital grants and contributions
Total business -type activities program revenues
2006 2007 2008 2009
$2,380,103
$2,439,716
$2,469,055
$2,597,147
2,851,926
3,098,068
3,062,941
3,158,465
7,722,466
7,010,981
6,220,816
9,123,165
2,918,645
3,023,032
3,025,987
3,663,124
868,749
1,052,104
704,979
628,339
751,964
835,059
652,015
1,031,567
17,493,853
17,458,960
16,135,793
20,201,807
2,754,201
3,112,575
3,234,139
3,311,129
3,069,069
3,177,366
3,072,588
3,276,042
1,317,089
1,238,914
1,121,197
1,093,165
7,140,359
7,528,855
7,427,924
7,680,336
$24,634,212 $24,987,815 $23,563,717 $27,882,143
$3,612,021
$2,171,558
$1,810,545
$1,085,754
1,218,816
1,132,448
1,115,903
1,064,173
162,946
145,682
124,633
122,496
671,674
452,798
346,023
363,540
2,506,822
7,464,697
3,221,636
1,265,287
8,172,279
11,367,183
6,618,740
3,901,250
2,111,230
2,461,205
2,408,379
2,689,170
2,008,356
2,186,622
2,187,209
2,378,111
424,702
452,148
479,318
512,761
539
45,172
36,350
5,332
2,501,598
3,340,598
1,527,624
1,684,982
7,046,425
8,485,745
6,638,880
7,270,356
Total primary government program revenues $15,218,704 $19,852,928 $13,257,620 $11,171,606
140
2010
$2,898,608
3,227,396
6,308,023
3,046,718
879,048
880,384
17,240,177
3,443,583
3,252,510
1,202,556
7,898,649
$25,138,826
$1,331,374
1,189,560
123,609
414,654
4,175,655
7,234,852
2,424,634
2,365,358
538,688
2,984
1,593,289
6,924,953
$14,159,805
2011
$2,565,486
3,061,122
8,607,534
2,921,593
799,379
838,421
18,793,535
3,581,955
3,317,329
1,173,115
8,072,399
$26,865,934
$1,381,326
1,047,726
126,571
692,428
1,646,573
4,894,624
2,611,327
2,297,677
534,473
12,589
1,086,655
6,542,721
$11,437,345
2012
$2,690,853
3,176,441
7,743,147
3,114,340
646,262
725,881
18,096,924
3,646,787
3,235,324
1,347,345
8,229,456
$26,326,380
$1,595,358
1,394,356
119,997
404,663
2,953,496
6,467,870
3,146,886
2,434,370
590,323
121,925
1,861,689
8,155,193
$14,623,063
141
2013
$2,630,405
3,313,694
14,224,453
2,919,183
523,651
588,352
24,199,738
4,702,686
3,548,200
1,334,173
9,585,059
$33,784,797
$2,113,770
1,396,068
99,984
472,298
10,718,999
14,801,119
2,829,226
2,358,854
615,896
63,112
2,852,437
8,719,525
$23,520,644
2014
$3,099,004
3,416,088
9,604,525
3,062,592
1,043,848
465,935
20,691,992
3,347,965
3,171,696
1,491,763
8,011,424
$28,703,416
$1,691,634
1,149,372
100,516
532,337
3,296,748
6,770,607
2,573,027
2,472,536
639,087
210,857
2,633,793
8,529,300
$15,299,907
Table 2
Page 1 of 2
2015
$2,775,663
3,826,376
11,153,322
2,952,985
527,268
409,676
21,645,290
3,290,265
3,297,128
1,328,144
7,915,537
$29,560,827
$1,565,900
1,153,779
117,189
823,943
5,812,825
9,473,636
2,611,895
2,525,731
668,971
45,130
3,140, 823
8,992,550
$18,466,186
CITY OF CHANHASSEN, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Net (expense) revenue:
Governmental activities
Business -type activities
Total primary government net (expense) revenue
General revenues and other changes in net position
Governmental activities:
Property taxes
Tax increment collections
Grants and contributions not restricted to specific programs
Unrestricted investment earnings
Miscellaneous
Gain on sale of capital assets
Special item - sale of public works building
Transfers
Total governmental activities
Business -type activities:
Unrestricted investment earnings
Miscellaneous
Gain on sale of capital assets
Transfers
Total business -type activities
Total primary government
Change in net position:
Governmental activities
Business -type activities
Total primary government
2006 2007 2008 2009
($9,321,574)
($6,091,777)
($9,517,053)
($16,300,557)
(93,934)
956,890
(789,044)
(409,980)
(9,415,508)
(5,134,887)
(10,306,097)
(16,710,537)
9,165,278
9,419,763
9,651,758
9,921,598
315,398
420,526
574,101
473,674
28,592
189,616
108,039
27,612
905,930
1,397,746
1,150,993
357,953
34,644
-
-
-
-
10,806
32,195
4,524
(821,637) (5,077,531) 1,112,623 774,746
9,628,205 6,360,926 12,629,709 11,560,107
768,600 786,455 797,079 141,070
102,952 127,143 22,464 10,549
821,637 5,077,531 (1,112,623) (774,746)
1,693,189 5,991,129 (293,080) (623,127)
$11,321,394 $12,352,055 $12,336,629 $10,936,980
$306,631
$269,149
$3,112,656
($4,740,450)
1,599,255
6,948,019
(1,082,124)
(1,033,107)
$1,905,886
$7,217,168
$2,030,532
($5,773,557)
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.
Note: GASB 68 was implemented in 2015. Pension expense for years prior to 2015 were not restated.
142
2010
($10,005,325)
(973,696)
(10,979,021)
10,014,684
539,523
45,767
222,719
20,727
(487,911)
10,355,509
114,349
33,644
487,911
635,904
$10,991,413
$350,184
(337,792)
$12,392
2011
($13,898,911)
(1,529,678)
(15,428,589)
9,849,882
566,045
28,304
505,541
44,000
1,061,763
12,055,535
211,707
6,643
(1,061,763)
(843,413)
$11,212,122
($1,843,376)
(2,373,091)
($4,216,467)
2012
($11,629,054)
(74,263)
(11,703,317)
10,064,176
533,011
20,071
173,523
56,610
1,246,275
(173,420)
11,920,246
92,453
173,420
265,873
$12,186,119
$291,192
191,610
$482,802
143
2013
($9,398,619)
(865,534)
(10,264,153)
10,059,324
545,906
19,941
(14,764)
37,720
307,596
10,955,723
(776)
(307,596)
(308,372)
$10,647,351
$1,557,104
(1,173,906)
$383,198
2014
($13,921,385)
517,876
(13,403,509)
10,482,273
307,940
19,736
183,602
191,755
6,389
11,191,695
134,533
(6,389)
128,144
$11,319,839
($2,729,690)
646,020
($2,083,670)
Table 2
Page 2 of 2
2015
($12,171,654)
1,077,013
(11,094,641)
10,536,216
200,338
21,679
176,731
66,248
(612,078)
10,389,134
132,406
57,510
612,078
801,994
$11,191,128
($1,782,520)
1,879,007
$96,487
CITY OF CHANHASSEN, MINNESOTA
FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
General Fund:
Reserved
Unreserved:
Designated
Undesignated
Nonspendable
Unassigned
Total general fund
All other governmental funds:
Reserved
Unreserved:
Designated:
Special revenue funds
Capital project funds
Undesignated:
Special revenue funds
Debt service funds
Capital project funds
Nonspendable
Restricted
Assigned
Unassigned
Total all other governmental funds
2006
2007
2008
2009
$17,376
$13,210
$21,173
$46,750
3,279,050
3,416,950
3,586,750
3,690,000
1,523,844
2,061,126
1,273,796
1,137,109
$4,820,270
$5,491,286
$4,881,719
$4,873,859
$5,300,782
$7,335,225
$6,671,271
$2,950,284
431,665
548,438
525,692
668,992
13,458,697
9,934,936
18,732,625
11,418,006
25,020
-
-
-
148,784
215,298
237,721
342,877
(214,183)
(239,434)
(11,584)
(2,001,149)
$19,150,765
$17,794,463
$26,155,725
$13,379,010
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.
144
Table 3
2010
2011
2012
2013
2014
2015
$55,826
$ -
$ -
$ -
$ -
$ -
3,754,000
-
-
-
-
-
1,459,792
-
-
-
-
-
-
17,280
57,137
16,741
58,333
72,114
-
5,278,118
5,434,641
5,274,584
5,550,732
5,258,232
$5,269,618
$5,295,398
$5,491,778
$5,291,325
$5,609,065
$5,330,346
$5,642,029
2,082,929
-
-
-
-
-
7,487,198
-
-
-
-
-
356,724
-
-
-
-
-
(786,209)
-
-
-
-
-
-
12,662
1,373,146
1,327,068
1,289,575
1,253,705
-
10,426,585
6,359,422
9,181,230
5,724,419
5,824,354
-
6,561,411
6,731,400
6,366,292
5,951,507
5,586,353
-
(730,120)
(646,856)
(559,515)
(475,352)
(372,509)
$14,782,671
$16,270,538
$13,817,112
$16,315,075
$12,490,149
$12,291,903
145
CITY OF CHANHASSEN, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Revenues:
2006
2007
2008
2009
General property taxes
$9,140,601
$9,403,109
$9,582,333
$9,834,389
Tax increment collections
$315,398
$420,526
$574,101
473,674
Licenses and permits
3,727,297
2,171,558
1,810,545
1,085,754
Intergovernmental
2,171,565
1,148,034
2,147,970
397,438
Special assessments
1,922,944
3,922,517
623,893
540,151
Charges for services
899,015
738,669
841,209
950,760
Fines and forfeits
162,946
145,682
124,633
122,496
Investment income
905,930
1,397,746
1,150,993
357,953
Contributions and donations
43,949
47,428
43,410
47,206
Refunds and reimbursements
-
-
51,247
61,707
Other
279,549
404,426
238,030
170,688
Total revenues
19,569,194
19,799,695
17,188,364
14,042,216
Expenditures:
Current:
General government
2,090,565
2,116,928
2,102,512
2,070,698
Public safety
2,656,923
2,924,751
2,885,296
2,979,044
Public works
4,425,237
3,735,950
2,786,397
5,710,804
Parks and recreation
1,877,109
1,848,880
1,933,353
2,487,985
Community development
451,092
841,306
468,819
527,919
Capital outlay:
General government
98,396
6,734
233,600
143,663
Public safety
38,593
505,215
54,284
55,152
Public works
6,431,594
6,693,387
4,677,179
8,179,324
Parks and recreation
377,367
1,491,848
642,508
235,292
Debt service:
Principal
1,375,000
1,750,000
2,689,552
2,553,002
Interest and paying agent fees
591,614
769,212
874,848
920,529
Bond issuance costs
36,987
-
93,811
73,182
Developer assistance
111,791
206,753
226,055
90,354
Other
300,000
-
-
-
Total expenditures
20,862,268
22,890,964
19,668,214
26,026,948
Revenues over (under) expenditures
(1,293,074)
(3,091,269)
(2,479,850)
(11,984,732)
Other financing sources (uses):
Bonds issued
6,640,000
-
7,550,000
6,020,000
Loans issued
708,003
3,014,744
24,839
-
Bond premium (discount)
(44,610)
-
-
226,991
Redemption of refunding bonds
(3,560,000)
-
-
(8,387,123)
Transfers in
702,889
537,564
2,646,011
1,324,015
Transfers out
-
(1,163,065)
-
-
Sale of capital assets
-
16,740
10,695
16,274
Special item - sale of old public works building
-
-
-
-
Total other financing sources (uses)
4,446,282
2,405,983
10,231,545
(799,843)
Net change in fund balance
$3,153,208
($685,286)
$7,751,695
($12,784,575)
Debt service as a percentage of
noncapital expenditures
14.8%
18.0%
26.4%
20.5%
Debt service as percentage of
total expenditures
9.6%
11.0%
18.6%
13.6%
146
Table 4
2010
2011
2012
2013
2014
2015
$10,141,168
$9,760,052
$10,143,011
$10,176,483
$10,489,350
$10,529,994
539,523
566,045
533,011
545,906
307,940
200,338
1,331,374
1,381,326
1,595,358
2,113,770
1,691,634
1,565,900
401,550
1,425,525
2,151,785
7,971,339
2,553,062
4,897,139
790,426
1,242,040
1,667,881
3,193,078
854,966
1,664,424
923,550
795,616
880,920
907,414
798,578
799,543
123,609
126,571
119,997
99,984
100,516
117,189
222,719
505,541
173,523
(14,764)
183,602
176,731
58,016
50,685
36,893
33,159
66,918
78,175
132,616
117,441
253,030
235,363
77,871
85,955
213,272
846,523
264,038
259,703
265,119
267,622
14,877,823
16,817,365
17,819,447
25,521,435
17,389,556
20,383,010
2,525,326
2,162,479
2,326,490
2,274,640
2,350,437
2,391,195
3,077,038
2,896,644
3,013,980
3,179,446
3,258,363
3,431,541
2,739,704
4,779,067
3,726,158
10,628,140
5,352,221
7,537,376
1,901,564
1,906,489
2,154,714
2,002,604
2,164,703
2,068,532
698,818
502,916
621,295
522,538
1,034,047
515,382
473,753
129,535
75,226
87,707
34,080
-
65,667
52,645
39,314
74,144
23,980
122,143
3,995,444
2,122,641
3,502,371
2,482,728
2,894,237
2,566,867
490,737
309,524
1,310,366
627,214
485,107
476,323
2,370,000
1,025,000
5,100,000
1,590,000
4,190,000
1,810,000
888,843
853,152
814,621
599,487
518,722
439,470
46,505
-
-
-
-
-
176,643
298,216
21,108
-
-
-
19,450,042
17,038,308
22,705,643
24,068,648
22,305,897
21,358,829
(4,572,219)
(220,943)
(4,886,196)
1,452,787
(4,916,341)
(975,819)
5,200,000
-
-
-
-
-
35,964
-
-
-
-
-
1,105,000
1,734,590
1,203,031
888,711
1,783,719
2,158,844
-
-
(48,881)
(43,988)
(676,095)
(1,701,005)
30,675
-
-
-
301,531
41,015
-
-
1,475,000
-
-
-
6,371,639
1,734,590
2,629,150
844,723
1,409,155
498,854
$1,799,420
$1,513,647
($2,257,046)
$2,297,510
($3,507,186)
($476,965)
23.2%
13.3%
33.3%
10.5%
25.0%
12.4%
17.0%
11.0%
26.0%
9.1%
21.1%
10.5%
147
CITY OF CHANHASSEN, MINNESOTA
TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
Fiscal
Year
Total
All
Commercial/
Ended
Residential
$408,070
Industrial
December 31,
Property
Agricultural
Property
471,749
2006
$24,904,864
$229,651
$6,537,205
2007
27,853,083
316,461
8,114,703
2008
29,821,326
208,789
9,135,911
2009
30,741,292
190,844
9,665,269
2010
30,301,115
170,857
10,229,329
2011
28,951,885
131,751
9,778,491
2012
27,198,238
137,012
9,149,904
2013
26,970,557
105,160
8,927,095
2014
28,725,937
132,728
8,984,174
2015
32,778,287
153,500
9,205,053
Sources: Carver County Taxpayer Services and Hennepin County
148
Total
All
Tax
Other
Capacity
$408,070
$32,079,790
428,203
36,712,450
435,603
39,601,629
471,749
41,069,154
477,663
41,178,964
511,185
39,373,312
520,743
37,005,897
541,612
36,544,424
613,105
38,455,944
620,620
42,757,460
Table 5
Captured Tax
Capacity on
Fiscal
Adjusted
City
Estimated
Tax Capacity
Tax Increment
Disparity
Tax Capacity
Direct Tax
Market
as a Percent
District
Contribution
Value
Rate
Value
of EMV
($309,211)
($929,994)
$30,840,585
26.63800
$2,812,847,100
1.10%
(418,018)
(955,204)
35,339,228
23.78800
3,175,746,500
1.11%
(479,494)
(1,498,894)
37,623,241
23.71300
3,394,928,100
1.11%
(473,702)
(1,627,749)
38,967,703
22.99300
3,501,886,800
1.11%
(532,007)
(1,861,362)
38,785,595
25.18300
3,491,841,800
1.11%
(509,863)
(1,998,912)
36,864,537
26.60256
3,350,141,800
1.10%
(469,759)
(2,038,437)
34,497,701
28.53211
3,153,275,000
1.09%
(435,999)
(1,804,630)
34,303,795
28.42838
3,118,066,700
1.10%
(252,884)
(1,971,928)
36,231,132
27.23862
3,294,605,000
1.10%
(267,337)
(1,896,611)
40,593,512
24.63317
3,686,777,200
1.10%
149
CITY OF CHANHASSEN, MINNESOTA
DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES
Last Ten Fiscal Years
Table 6
Source: Carver County Taxpayer Services
(')The City Direct Rate is the Urban based rate, not including Market Value levies.
150
City
Overlapping Rates
Fiscal
Direct
School
Carver
Year
Rate(i)
District 4112
County
Other
Total
Tax capacity
rates (per $100 of adjusted tax capacity value)
2006
26.63800
32.80800
40.83600
5.30500
105.58700
2007
23.78800
35.83100
37.80200
5.13200
102.55300
2008
23.71300
35.97000
37.56300
5.54700
102.79300
2009
22.99300
35.50500
38.03300
5.45800
101.98900
2010
25.18300
35.84000
39.50900
5.63900
106.17100
2011
26.60256
40.23554
41.75163
6.02059
114.61032
2012
28.53211
44.38247
43.56239
6.68081
123.15778
2013
28.42838
45.31946
46.11540
6.60329
126.46653
2014
27.23862
44.91727
45.21055
6.87257
124.23901
2015
24.63332
39.12011
40.48815
6.27028
110.51186
Source: Carver County Taxpayer Services
(')The City Direct Rate is the Urban based rate, not including Market Value levies.
150
CITY OF CHANHASSEN, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
Table 7
Source: Carver County Taxpayer Services
151
2015
2006
Percentage
Percentage
Taxable
of Total City
Taxable
of Total City
Capacity
Capacity
Capacity
Capacity
Taxpayer
Value
Rank
Value
Value
Rank
Value
Istar Minnesota LLC
$420,786
1
1.0%
$293,026
2
1.0%
IRET Properties
387,666
2
0.9%
312,746
1
1.0%
Rosemount Inc
316,584
3
0.8%
288,270
3
0.9%
Northern States Power Co
274,550
4
0.7%
230,006
4
0.8%
LTF Real Estate VRDN I LLC
239,202
5
0.6%
-
0.0%
LTF Real Estate CBC I (Chan Club) LLC
208,712
6
0.5%
219,250
5
0.7%
Target Corporation T-0862
200,872
7
0.5%
179,680
8
0.6%
PHM/Chanhassen Inc
198,833
8
0.5%
-
0.0%
DRF Chanhassen Medical Bldg
194,888
9
0.5%
203,798
6
0.7%
Centerpoint Energy Minnegasco
182,536
10
0.4%
-
0.0%
McGlynn Bakeries Inc #366
-
-
172,694
9
0.6%
Park Avenue Lofts LLC
-
-
181,266
7
0.6%
Market Square Assoc Ltd Partnership
-
-
160,394
10
0.5%
Total
$2,624,629
6.4%
$2,241,130
7.4%
Total All Property
$41,145,495
$30,468,124
Source: Carver County Taxpayer Services
151
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152
CITY OF CHANHASSEN, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Table 8
Fiscal
Taxes
Collected Within The
Collections
Year
Levied
Fiscal Year of the Levy
in
Total Collections to Date
Ended
For The
Percentage
Subsequent
Percentage
December 31,
Fiscal Year
Amount
of Levy
Years
Amount
of Levy
2006
$9,354,890
$9,066,591
96.9%
$90,332
$9,156,923
97.9%
2007
9,575,778
9,447,692
98.7%
114,938
9,562,630
99.9%
2008
9,834,965
9,555,489
97.2%
144,891
9,700,379
98.6%
2009
10,074,565
9,668,713
96.0%
156,513
9,825,226
97.5%
2010
10,213,190
9,918,528
97.1%
(20,807)
9,897,721
96.9%
2011
10,267,390
9,739,125
94.9%
183,244
9,922,369
96.6%
2012
10,153,690
10,005,877
98.5%
48,798
10,054,676
99.0%
2013
10,195,890
10,105,393
99.1%
19,151
10,124,544
99.3%
2014
10,334,140
10,269,518
99.4%
37,027
10,306,545
99.7%
2015
10,484,021
10,446,765
99.6%
-
10,446,765
99.6%
Source: City Finance Department
153
CITY OF CHANHASSEN, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Governmental Activities
General General
Fiscal Obligation Revenue Tax Increment Improvement
Year Bonds Bonds Bonds Bonds
2006
$ 8,170,000
$620,000
$1,120,000
$9,210,000
2007
7,315,000
530,000
1,070,000
8,455,000
2008
13,905,000
435,000
1,015,000
7,155,000
2009
13,045,000
335,000
960,000
6,625,000
2010
16,860,000
230,000
900,000
5,805,000
2011
16,195,000
120,000
840,000
5,615,000
2012
11,475,000
-
775,000
5,420,000
2013
10,155,000
-
705,000
5,220,000
2014
9,550,000
-
635,000
1,705,000
2015
8,925,000
-
-
1,155,000
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(')Information pertaining to Chanhassen Personal Income is not available, information for Carver County was
included instead.
(a) Information not available
154
Business -Type
Activities
Other G.O. Revenue
Debt Bonds Total Debt
$813,422
3,828,166
3,375,125
$14,820,000
13,915,000
12,415,000
11,695,000
10,955,000
20,077,339
20,578,313
16,324,287
10,045,261
9,256,235
$34,753,422
35,113,166
38,300,125
32,660,000
34,750,000
42,847,339
38,248,313
32,404,287
21,935,261
19,336,235
155
Debt
Per Capita
1,455
1,444
1,564
1,322
1,514
1,849
1,629
1,353
899
784
Table 9
Bonded Debt
Per Total
Carver County
Personal
Income(i)
0.8%
0.8%
0.8%
0.7%
0.7%
0.8%
0.7%
0.6%
0.4%
(a)
CITY OF CHANHASSEN, MINNESOTA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
Last Ten Fiscal Years
Table 10
Fiscal
Year
General
Obligation
Bonds
G.O. Tax
Increment
Bonds
G.O.
Improvement
Bonds
G.O.
Revenue
Bonds
Total General
Obligation
Bonded Debt
Less Amounts
Restricted for
Debt Service
Net General
Obligation
Bonded Debt
Percentage
of Tax
Capacity
Net General
Obligation
Bonded Debt
Per Capita
2006
$8,170,000
$1,120,000
$9,210,000
$14,820,000
$33,320,000
$7,687,155
$25,632,845
84.13%
1,073
2007
7,315,000
1,070,000
8,455,000
13,915,000
30,755,000
11,047,062
19,707,938
56.65%
810
2008
13,905,000
1,015,000
7,155,000
12,415,000
34,490,000
12,165,653
22,324,347
59.56%
912
2009
13,045,000
960,000
6,625,000
11,695,000
32,325,000
6,461,780
25,863,220
66.29%
1,047
2010
16,860,000
900,000
5,805,000
10,955,000
34,520,000
9,217,254
25,302,746
64.55%
1,102
2011
16,195,000
840,000
5,615,000
20,077,339
42,727,339
16,998,401
25,728,938
68.61%
1,110
2012
11,475,000
775,000
5,420,000
20,578,313
38,248,313
13,020,206
25,228,107
71.80%
1,074
2013
10,155,000
705,000
5,220,000
16,324,287
32,404,287
10,266,366
22,137,921
63.62%
924
2014
9,550,000
635,000
1,705,000
10,045,261
21,935,261
3,441,810
18,493,451
50.09%
758
2015
8,925,000
-
1,155,000
9,256,235
19,336,235
3,455,171
15,881,064
38.60%
644
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
156
CITY OF CHANHASSEN, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
December 31, 2015
Governmental Unit
Direct debt:
City of Chanhassen(')
Overlapping debt:
Eastern Carver County School District
Filen Prairie Independent School District
Carver County
Hennepin County
Hennepin Suburban Park District
Hennepin Regulatory Railroad Authority
Metropolitan Council
Subtotal - overlapping debt
Total direct and overlapping debt
(')Excludes debt related to the City's business -type activities.
Table 11
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.
157
Estimated
Estimated
Share of
Debt
Percentage
Overlapping
Outstanding
Applicable*
Debt
$10,080,000
100.00%
$10,080,000
208,400,000
38.50%
80,227,748
57,992,207
0.88%
510,331
24,650,000
32.51%
8,014,356
689,516,184
0.06%
413,710
49,596,497
0.08%
39,677
34,389,498
0.08%
27,512
67,164,480
0.03%
20,149
1,131,708,866
89,253,483
$1,141,788,866
$99,333,483
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.
157
CITY OF CHANHASSEN, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2015
Market value $3,686,777,200
Applicable percentage 3%
Debt limit 110,603,316
Debt applicable to limit:
Total bonded debt 19,336,235
Less:
Special assessment bonds (1,155,000)
Tax increment bonds -
Enterprise Fund debt (9,256,235)
Less:
Cash and investments in G.O. Bond Debt Service Fund (1,578,417)
7,346,583
Legal debt margin $103,256,733
Legal Debt Margin Calculation for Fiscal Years 2006 Through 2015
Table 12
Net Debt
Net Debt Legal Amount of Debt Applicable
Fiscal Debt Applicable to Debt Applicable to to Limit
Year Population Limit Limit Margin Debt Limit Per Capita
2006
23,889
$56,256,942
$6,950,304
$49,306,638
12.35%
$291
2007
24,321
63,514,930
5,844,648
57,670,282
9.20%
240
2008
24,481
101,847,843
11,924,438
89,923,405
11.71%
487
2009
24,699
105,056,604
11,175,086
93,881,518
10.64%
452
2010
22,952
104,755,254
15,831,831
88,923,423
15.11%
690
2011
23,179
100,504,254
14,755,258
85,748,996
14.68%
637
2012
23,484
94,598,250
10,117,347
84,480,903
10.70%
431
2013
23,954
93,542,001
8,705,958
84,836,043
9.31%
363
2014
24,388
98,838,150
8,030,953
90,807,197
8.13%
329
2015
24,655
110,603,316
7,346,583
103,256,733
6.64%
298
158
CITY OF CHANHASSEN, MINNESOTA
PLEDGED REVENUE COVERAGE
Last Ten Fiscal Years
Table 13
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
159
Improvement Bonds
Special
Fiscal
Assessment
Debt Service
Year
Collections
Principal Interest
Coverage
2006
$1,922,944
$755,000
$103,813
2.239
2007
3,922,517
755,000
360,852
3.515
2008
623,891
1,300,000
287,727
0.393
2009
540,148
1,220,000
142,963
0.396
2010
790,422
1,050,000
230,084
0.617
2011
1,242,038
330,000
185,733
2.408
2012
1,527,253
595,000
178,115
1.975
2013
3,193,076
970,000
164,220
2.815
2014
854,966
3,515,000
103,875
0.236
2015
1,664,423
550,000
42,900
2.807
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
159
CITY OF CHANHASSEN, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
Fiscal
Chanhassen
Year
Population(l)
2006
23,889
2007
24,321
2008
24,481
2009
24,699
2010
22,952
2011
23,179
2012
23,484
2013
23,954
2014
24,388
2015
24,655
Chanhassen
Unemployment
Rate (2)
2.7%
2.9%
3.6%
5.8%
6.1%
4.9%
4.5%
4.1%
3.4%
2.9%
Carver County
Unemployment
Rate (2)
3.3%
4.0%
4.9%
7.2%
6.8%
5.5%
4.8%
4.3%
3.6%
3.2%
Carver County
Personal
Income
(Thousands)(3)
Sources: (')Federal Census Data and Chanhassen Planning Department
(2)State of Minnesota, Department of Employment and Economic Development
(')U.S. Department of Commerce, Bureau of Economic Analysis
(a) Information not available
$4,152,161
4,494,474
4,707,305
4,449,868
4,672,590
5,081,245
5,427,814
5,537,845
5,838,766
(a)
Table 14
Carver County
Per Capita
Personal
Income (3)
Note: Information pertaining to Chanhassen Personal Income and Per Capita Personal Income is not available, information
for Carver County was included instead.
160
$48,474
51,501
53,003
49,310
51,136
54,748
57,810
57,901
59,984
(a)
CITY OF CHANHASSEN, MINNESOTA
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
Employer
Employees
Instant Web Companies
1,236
Rosemount Inc
1,196
Lifetime Fitness
1,166
The Bernard Group
500
Eastern Carver County Schools
400
RR Donnelley
382
General Mills
335
Chanhassen Dinner Theatres
259
Minnesota Landscape Arboretum
231
Exlar Corporation
195
Super Value Headquarters
Entegris
Byerly's
ABC/Lyman Lumber
Total 5,900
2015
2006
Table 15
4,917
Source: Survey by City Administration and Finance Departments
(')The statistic for total City employment is not available, therefore the percentage represents the percentage of
the top ten listed.
161
Percentage
Percentage
of Total City
of Total City
Rank
EmploymenO
Employees
Rank
EmploymenP
1
20.9%
548
4
11.1%
2
20.3%
1,200
1
24.4%
3
19.8%
-
-
4
8.5%
-
-
5
6.8%
-
-
6
6.5%
324
6
6.6%
7
5.7%
600
3
12.2%
8
4.4%
300
7
6.1%
9
3.9%
240
9
4.9%
10
3.3%
-
-
-
900
2
18.3%
-
350
5
7.1%
-
280
8
5.7%
-
175
10
3.6%
4,917
Source: Survey by City Administration and Finance Departments
(')The statistic for total City employment is not available, therefore the percentage represents the percentage of
the top ten listed.
161
CITY OF CHANHASSEN, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Total
Source: City Finance Department
162
69 69 69
Full -Time Equivalent Employees as of December 31,
Function/Program
2006
2007
2008
General government
12
13
13
Public safety
3
3
3
Public works
26
26
26
Parks & recreation
11
11
11
Community development
17
16
16
Total
Source: City Finance Department
162
69 69 69
Table 16
Full -Time Equivalent Employees as of December 31,
�nn9 �n�n ?n>> ?n » NWI ?n]4 ?n]5
13
13
13
13
13
13
13
3
3
3
3
3
3
3
26
26
26
26
26
26
26
11
11
11
11
11
11
11
16
15
15
14
14
14
14
69
68
68
67
67
67
67
163
CITY OF CHANHASSEN, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program
Building:
Total permits issued
Total estimated value
Election:
Registered voters
Fire:
Average number of employees
General government:
Area of city - square miles
Average number of permanent full-time
employees (excluding fire department)
Police:
Average number of employees
Number of crimes
Water:
Number of customers
Daily average consumption - gallons
Plant capacity - gallons
Source: Various City Departments
164
Fiscal Year
2006
2007
2008
3,165
3,013
2,838
$106,223,825
$125,865,426
$124,885,965
15,319
15,319
16,544
44
44
45
23.78
23.78
23.78
69
69
69
13
13
14
1,297
1,202
1,013
6,752
6,804
7,039
3,163,864
3,031,400
3,200,000
8,650,000
8,650,000
8,650,000
Table 17
Fiscal Year
2009 2010 2011 2012 2013 2014 2015
2,608
2,910
3,397
3,285
3,201
3,076
3,266
$67,811,817
$65,046,933
$82,991,029
$83,531,808
$89,370,069
$80,591,941
$82,145,483
16,544
15,326
15,326
16,916
16,916
16,344
16,344
45
45
47
48
48
48
48
23.78
23.78
23.78
23.78
23.78
23.79
23.79
69
68
68
67
67
67
67
15
15
15
15
15
15
15
702
647
757
777
748
838
870
7,427
7,620
7,655
7,741
7,953
8,075
8,195
3,642,410
2,698,559
2,257,542
2,570,349
2,876,383
2,542,413
2,495,868
8,650,000
8,650,000
8,650,000
8,650,000
8,650,000
8,650,000
8,650,000
165
CITY OF CHANHASSEN, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program
Fire:
Number of stations
Parks and recreation:
Acres of parks
Acres of open space
Number of shelter buildings
Number of picnic shelters
Number of playgrounds
Number of swimming beaches
Number of tennis courts
Number of outdoor pickleball courts
Police:
Number of stations
Public works:
Miles of streets
Miles of sidewalks
Miles of trails
Sewer:
Miles of storm sewers
Miles of sanitary sewers
Number of lift stations
Water:
Miles of watermains
Number of wells
166
Fiscal Year
2006 2007 2008
2
2
2
375
383
383
365
434
434
3
3
3
4
5
5
25
26
26
4
6
6
17
17
17
1
1
1
103.8
106.2
107.0
25.5
26.9
28.4
43.0
47.2
53.0
64.2
66.2
67.1
116.9
119.6
120.8
31
31
31
123.4
126.0
129.6
10
11
12
Table 18
Fiscal Year
2009 2010 2011 2012 2013 2014 2015
2
2
2
2
2
2
2
383
396
396
401
401
405
405
434
434
489
503
503
503
503
4
4
4
4
4
4
4
5
5
5
5
6
7
13
26
26
26
26
27
28
28
6
5
5
5
5
5
5
17
17
17
15
15
15
15
-
-
-
2
3
6
6
1
1
1
1
1
1
1
110.9
111.9
112.0
112.6
113.5
113.7
113.9
31.1
31.9
31.9
31.9
31.9
32.0
32.0
53.6
53.6
56.1
56.4
58.6
59.2
59.9
69.5
71.0
74.5
75.3
76.5
77.0
78.8
123.0
123.6
123.7
123.9
124.3
124.5
125.3
31
31
31
31
31
31
31
135.1
136.8
137.8
138.0
139.1
139.3
140.6
12
12
12
12
12
12
12
167
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168
IV. OTHER INFORMATION (UNAUDITED)
169
CITY OF CHANHASSEN, MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS
December 31, 2015
Bonded indebtedness:
General obligation bonds:
G.O. Capital Improvement Plan Bonds, Series 2008A
G.O. Library Refunding Bonds, Series 2010A
Total general obligation bonds
Tax increment bonds:
G.O. Tax Increment Refunding Bonds, Series 2004C
General improvement bonds:
G.O. Improvement Bonds, Series 2009A
Enterprise Fund debt:
G.O. Water Revenue Bonds, Series 2011A
G.O. Water Revenue Refunding Bonds, Series 2011B
G.O. Water and Sewer Revenue Bonds, Series 2012A
Total Enterprise Fund debt
Total City bonded indebtedness
170
3.00%-6.00% 08/10/04 02/01/21
3.00%
0.30%-2.15%
2.00%-3.00%
1.00%-1.55%
06/03/09
02/01/17
Final
Interest
Issue
Maturity
Rates
Date
Date
4.00%-4.60%
11/18/08
02/01/30
2.00%-3.10%
01/27/10
02/01/22
3.00%-6.00% 08/10/04 02/01/21
3.00%
0.30%-2.15%
2.00%-3.00%
1.00%-1.55%
06/03/09
02/01/17
10/06/11
02/01/22
10/06/11
02/01/25
11/15/12
02/01/23
Exhibit 1
Prior Years
Payable
2015
Payable
Principal
Original
January 1,
December 31,
Due in
Issue
Payments
2015
Issued Payments
2015
2016
$7,550,000
$1,045,000
$6,505,000
$ - $285,000
$6,220,000
$295,000
3,660,000
615,000
3,045,000
- 340,000
2,705,000
345,000
11,210,000
1,660,000
9,550,000
0 625,000
8,925,000
640,000
1,170,000
535,000
635,000
- 635,000
-
-
6,020,000
4,315,000
1,705,000
- 550,000
1,155,000
565,000
5,920,000
865,000
5,055,000
- 655,000
4,400,000
655,000
3,720,000
-
3,720,000
- -
3,720,000
30,000
1,245,000
115,000
1,130,000
- 120,000
1,010,000
120,000
10,885,000
980,000
9,905,000
0 775,000
9,130,000
805,000
$29,285,000
$7,490,000
$21,795,000
$ - $2,585,000
$19,210,000
$2,010,000
171
CITY OF CHANHASSEN, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY
GENERAL OBLIGATION BONDS - GOVERNMENTAL ACTIVITIES
December 31, 2015
Exhibit 2
G.O. Capital
G.O. Library
G.O.
$591,175 $1,568,286
Improvement
Refunding
Improvement
598,850 1,584,148
Plan Bonds,
Bonds
Bonds,
- 986,648
Series 2008A
Series 2010A
Series 2009A
Total
Bonds payable $6,220,000
$2,705,000
$1,155,000
$10,080,000
Future interest payable 2,288,885
297,508
35,025
2,621,418
$8,508,885
$3,002,508
$1,190,025
$12,701,418
Payments to maturity:
2016
$556,568
$420,543
$591,175 $1,568,286
2017
559,468
425,830
598,850 1,584,148
2018
561,768
424,880
- 986,648
2019
558,484
433,480
- 991,964
2020
564,423
431,630
- 996,053
2021
564,468
429,480
- 993,948
2022
563,705
436,665
- 1,000,370
2023
567,014
-
- 567,014
2024
569,270
-
- 569,270
2025
570,454
-
- 570,454
2026
570,545
-
- 570,545
2027
574,413
-
- 574,413
2028
572,035
-
- 572,035
2029
578,275
-
- 578,275
2030
577,995
-
- 577,995
$8,508,885
$3,002,508
$1,190,025 $12,701,418
172
CITY OF CHANHASSEN, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY
GENERAL OBLIGATION REVENUE BONDS
December 31, 2015
Bonds payable
Future interest payable
Payments to maturity:
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
G.O. Water
Revenue
Bonds, Series
2011A
$4,400,000
250,914
$4,650,914
$718,501
722,060
728,813
733,663
731,758
738,163
277,956
$4,650,914
G.O. Water
Revenue
Bonds, Series
2011B
$3,720,000
709,100
$4,429,100
$135,700
135,100
134,500
569,500
567,600
572,900
572,675
576,925
580,575
583,625
$4,429,100
173
G.O. Water &
Sewer Revenue
Bonds, Series
2012A
$1,010,000
53,188
$1,063,188
$131,340
130,140
133,915
132,665
131,321
134,758
133,003
136,046
$1,063,188
Exhibit 3
Total
$9,130,000
1,013,202
$10,143,202
$985,541
987,300
997,228
1,435,828
1,430,679
1,445, 821
983,634
712,971
580,575
583,625
$10,143,202
CITY OF CHANHASSEN, MINNESOTA
SCHEDULE OF DEFERRED TAX LEVIES
December 31, 2015
Exhibit 4
174
G.O.
Library
G.O. Capital
Total
Improvement
Total
Years of
Bonds
Improvement
General
Refunding
Deferred
Levy/
of 2002A/
Plan Bonds
Bonded
Bonds
Tax
Collection
2010A
of 2008A
Debt
of 2009A
Levies
2015/2016
$452,792
$594,000
$1,046,792
$240,700
$1,287,492
2016/2017
451,952
596,700
1,048,652
-
1,048,652
2017/2018
461,297
470,348
931,645
-
931,645
2018/2019
459,512
475,702
935,214
-
935,214
2019/2020
457,412
480,585
937,997
-
937,997
2020/2021
465,497
479,745
945,242
-
945,242
2021/2022
-
483,840
483,840
-
483,840
2022/2023
-
482,213
482,213
-
482,213
2023/2024
-
485,520
485,520
-
485,520
2024/2025
-
487,410
487,410
-
487,410
2025/2026
-
489,090
489,090
-
489,090
2026/2027
-
490,560
490,560
-
490,560
2027/2028
-
497,070
497,070
-
497,070
2028/2029
-
498,015
498,015
-
498,015
$2,748,462
$7,010,798
$9,759,260
$240,700
$9,999,960
174