2016 Annual Financial ReportCITY OF CHANHASSEN
For the Fiscal Year Ended December 31, 2016. City of Chanhassen, Minnesota
Comprehensive Annual
FINANCIAL REPORT2 16
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE CITY OF CHANHASSEN, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2016
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 -
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
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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
Cemetery Fund Statement 27 129
CATV Statement 28 130
Combining Statement of Net Position - Agency Funds Statement 29 132
Combining Statement of Changes in Assets and Liabilities - Agency Funds Statement 30 133
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 Value 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
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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
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
IV. OTHER INFORMATION (UNAUDITED)
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I. INTRODUCTORY SECTION
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June 16, 2017
To the Honorable Mayor and City Council
City of Chanhassen
Chanhassen, Minnesota
The Comprehensive Annual Financial Report of the City of Chanhassen, Minnesota (the City) for the fiscal year
ended December 31, 2016 is hereby submitted. This report was prepared by the Chanhassen Finance Department
and responsibility for both the accuracy of the presented data and the completeness and fairness of the
presentation, including all disclosures, supporting schedules and statistical tables rests with the City. We believe
the data, as presented, is accurate in all material respects; that it is presented in a manner designed to fairly set
forth the financial position and results of operations of the City as measured by the financial activity of its various
funds; and that all disclosures necessary to enable the reader to gain the maximum understanding of the City's
financial affairs have been included.
The organization, form and contents of this report were prepared in accordance with the standards prescribed by
the Governmental Accounting Standards Board, the Government Finance Officers Association of the United States
and Canada (GFOA), the American Institute of Certified Public Accountants, Minnesota’s Office of the State
Auditor and City policies.
This transmittal letter is designed to complement the Management’s Discussion and Analysis (MD&A) and should
be read in conjunction with it. The MD&A can be found immediately following the report of the independent
auditors.
Reporting Entity and Its Services
This report includes all funds, account groups, and departments of the City (the primary government) and its
component unit. The City provides a full range of services to its residents and businesses including general
government, public safety (police and fire protection), public works (engineering, streets, and equipment
maintenance), parks and recreational activities, planning and economic development. In addition to general
municipal services, the City provides water and sanitary sewer service and oversight (through licensing) of the
refuse and recycling services. In accordance with the reporting entity definition of the Governmental Accounting
Standards Board, the City has included the Chanhassen Economic Development Authority (EDA) in these
financial statements as a blended component unit. The EDA is governed by five commissioners appointed by the
City Council with the City Manager as executive director. The Chanhassen Fire Relief Association has been
excluded from this report because it is governed by a board elected by its members and it is not fiscally dependent
upon the City. The Western Area Fire Training Association (WAFTA) is governed by an eleven-
person board comprised of one member appointed by each jurisdiction who is a party to the joint powers
agreement. Although the City is jointly responsible for the maintenance and cleanup costs of the training site in
rural Carver County, we do not exercise substantial control of the association. The school districts that serve
residents of the City, like all school districts in Minnesota, are governed independently by their own elected board
members. They levy their own taxes and prepare their own financial reports. Accordingly, they are excluded from
this report.
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Relevant Financial Policies
The City has a policy regarding General Fund reserve balances. The City has a designated fund balance in the
General Fund equivalent to 50% of the ensuing year’s budgeted tax levy to provide working capital between serve-
owned property tax settlements.
The primary financial goal of the City’s investment policy is to ensure the safety and principal invested by the
City. Cash temporarily idle during the year is invested in certificates of deposit and obligations of the U.S.
Treasury and government agencies. The City only invests in instruments authorized under Minnesota Statute
118A. Cash balances from all City funds are pooled into an investment fund and investment income is distributed
on a pro-rata basis at the end of the year, based on average monthly cash balances. At December 31, 2016, the
maturities of the investments range from 1 day to 7 years, with an average maturity of 1.51 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, 2016 was 1.18%. 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, 2016 was 24,951. Chanhassen’s residential permits were lower in
2016 as compared to 2015. In 2016, there were 48 residential permits as compared to 104 in 2015. The total value
of all building permits and plan checks in 2016 was $73,881,121.
The City anticipates more residential permits in the coming years and more diversity in housing types, including
apartments, townhouses and senior housing. Office and industrial land use is currently in demand. A 115 acre
Lifestyle Center, which includes 1,000,000 square feet of office, retail and housing, is proceeding and should be
approved in 2017. In addition, there is significant remodeling and expansion happening in the industrial sector.
During 2016, the City issued $6,370,000 of General Obligation Bonds and $3,630,000 of General Obligation
Water Revenue Bonds. $4,805,000 of the General Obligation Bonds will be used to refund the General Obligation
Bonds, Series 2008A on February 1, 2018. The remaining portion of the General Obligation Bonds and the
proceeds from the General Obligation Water Revenue Bonds are being used for improvements to the water utility
system, including construction of a new water treatment plant.
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.
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Capital financings for major municipal improvements are provided through (1) improvement bonds, (2) general
obligation bonds, (3) tax increment bonds, or (4) revenue bonds. Internal financing of improvement projects is
usually minimal and only for short periods of time.
Long Term Financial Planning
In 2002, the City undertook an extensive long term financial planning process called “Key Financial Strategies”.
As a part of this process the City developed a long term (5 years) general fund budgeting model. In addition the
City developed annual strategies and measurement tools, both financial and non-financial, to compare our results
from year to year and with other like communities in our area.
These strategies and the long term general fund budget are updated on an annual basis as part of our goal setting
strategies at the beginning of each year. In addition, the City has a 5 year capital improvement plan in place for
infrastructure and equipment, as well as a pavement management plan in place for streets.
The City also undertakes an annual rate study of its Water, Sanitary Sewer, and Storm Water rates. As part of this
process the City projects fund balances and capital improvements to each of the systems for the next twenty years,
and the projected user and connection rates needed for each fund for that same time period.
Certificate of Achievement
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City of Chanhassen for its comprehensive annual
financial report (CAFR) for the fiscal year ended December 31, 2015. 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 four consecutive years (fiscal years ended 1992 – 2015). We believe
our current report continues to conform to the Certificate of Achievement program requirements and we are
submitting it to GFOA to determine its eligibility for another certificate.
Independent Audit
State law provides that the City may arrange for examination of its books, records, accounts and affairs, or any
part thereof, by the State Auditor, or by Certified Public Accountants. It has been a long-standing policy of the
City to provide for a complete annual audit of City records by Certified Public Accountants. The auditor’s opinion
has been included in this report.
Acknowledgments
We wish to express our appreciation to the members of the City Council for their support in improving the
financial condition of the City. We also want to thank the Finance Department staff and department directors for
their assistance in compiling the information necessary for this report. Finally, we wish to acknowledge Redpath
and Company, Ltd. for their assistance in preparing this report.
Respectfully submitted,
Greg Sticha, Finance Director
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City of Chanhassen, Minnesota
Organization Chart
Citizens
Administration
Mayor - Council
Environmental
Commission
Planning
Commission
Senior
Commission
Park & RecreationPark & Recreation
Commission
Economic
Development
Authority
Finance
Law
Enforcement
& Fire
Administration
Public
Works
Community
Development
Parks and
Recreation
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CITY OF CHANHASSEN, MINNESOTA
ORGANIZATION
December 31, 2016
Term Expires
Mayor:
Denny Laufenburger 12/31/18
Council Members:
Bethany Tjornhom 12/31/20
Jerry McDonald 12/31/20
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
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II. FINANCIAL SECTION
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4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com
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, 2016, 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.
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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, 2016, and the respective changes in financial position, and, where applicable, cash
flows thereof for the year then ended in accordance with accounting principles generally accepted
in the United States of America.
Report on Summarized Comparative Information
We have previously audited the City of Chanhassen, Minnesota’s 2015 financial statements, and we
expressed an unmodified audit opinion on the respective financial statements of the governmental
activities, the business-type activities, each major fund and the aggregate remaining fund
information in our report dated June 24, 2016. In our opinion, the summarized comparative
information presented herein as of and for the year ended December 31, 2015 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.
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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 16,
2017, 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 16, 2017
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MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Chanhassen, Minnesota (the City), we offer readers of the City’s
financial statements this narrative overview and analysis of the financial activities of the City for
the fiscal year ended December 31, 2016. We encourage readers to consider the information
presented here in conjunction with additional information that we have furnished in our letter of
transmittal, which can be found in the introductory section of this report.
Financial Highlights
The assets of the City exceeded its liabilities at the close of the most recent fiscal year by
$154,265,775 (net position). Of this amount, $20,738,020 (unrestricted net position) may be
used to meet the City’s ongoing obligations to citizens and creditors in accordance with the
City's fund designations and fiscal policies.
The City’s total net position increased by $1,810,676.
As of the close of the current fiscal year, governmental funds reported combined ending fund
balances of $21,528,879. Of this amount, $8,673,981 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 $5,312,712. Of that
amount, $25,832 was in a nonspendable form and the remaining $5,286,880 was unassigned.
Total debt increased by $7,904,272 during the current fiscal year, from $19,336,235 to
$27,240,507. Please refer to the Capital Asset and Debt Administration portion of this analysis
for an explanation of the increase.
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.
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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.
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Management’s Discussion and Analysis
The City maintains three 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
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,
Cemetery and CATV special revenue funds. Budgetary comparison statements have 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.
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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 nonmajor
governmental funds are presented immediately following the required supplementary
information. Combining and individual fund financial statements and schedules can be found on
Statement 18 through 30 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 $154,265,775 at the close of the most recent fiscal year.
The largest portion of the City’s net position ($130,067,915, or 84%) reflects its net investment
in capital assets (e.g. land, buildings, machinery, and equipment) less any related debt used to
acquire those assets that is still outstanding. The City uses these capital assets to provide
services to citizens; consequently, these assets are not available for future spending. Although
the City’s investment in its capital assets is reported net of related debt, it should be noted that
the resources needed to repay this debt must be provided from other sources, since the capital
assets themselves cannot be used to liquidate these liabilities.
City of Chanhassen, Minnesota's Net Position
2016 2015 2016 2015 2016 2015
Assets:
Current and other assets $25,828,754 $21,265,024 $17,610,363 $12,334,591 $43,439,117 $33,599,615
Capital assets 81,182,242 81,404,608 65,998,971 64,125,738 147,181,213 145,530,346
Total assets 107,010,996 102,669,632 83,609,334 76,460,329 190,620,330 179,129,961
Total deferred outflows of resources 2,766,838 747,394 469,375 103,303 3,236,213 850,697
Liabilities:
Long-term liabilities outstanding 20,427,351 15,079,152 15,238,791 10,172,746 35,666,142 25,251,898
Other liabilities 2,318,730 1,177,146 695,956 563,350 3,014,686 1,740,496
Total liabilities 22,746,081 16,256,298 15,934,747 10,736,096 38,680,828 26,992,394
Total deferred inflows of resources 761,269 442,838 148,671 90,327 909,940 533,165
Net position:
Net investment in capital assets 72,588,940 71,225,523 57,478,975 55,704,478 130,067,915 126,930,001
Restricted 3,459,840 5,982,262 - - 3,459,840 5,982,262
Unrestricted 10,221,704 9,510,105 10,516,316 10,032,731 20,738,020 19,542,836
Total net position $86,270,484 $86,717,890 $67,995,291 $65,737,209 $154,265,775 $152,455,099
Governmental Activities Business-Type Activities Totals
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Management’s Discussion and Analysis
$3,459,840 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 ($20,738,020) 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 $447,406, or 1%. The most
significant components of change in net position are as follows:
Net investment in capital assets increased $1,363,417 due to a $1,795,000 reduction in
capital related debt. This reduction was partially offset because depreciation expense
exceeded capital asset additions.
Restricted net position decreased $2,522,422. This decrease occurred because restricted
resources on hand at the end of 2015 were used during 2016 to pay the remaining balance
of the 2009A G.O. Refunding Bonds. Also, $774,111 of previously restricted net
position became unrestricted once these bonds were paid off. Finally, net position
restricted for park improvements decreased $391,139 as a portion of monies collected in
previous years were spent during 2016.
Unrestricted net position increased $711,599 primarily because net position previously
restricted for debt service ($774,111) became unrestricted during 2016.
Business-Type Activities
The total net position of the City’s business-type activities increased by $2,258,082, or 3%,
primarily because contributions of capital assets and other capital asset additions were greater
than depreciation expense and transfers out for construction projects. Unrestricted net position
increased $483,585, primarily because operating revenues exceeded operating expenses,
excluding depreciation expense.
19
Management’s Discussion and Analysis
City of Chanhassen, Minnesota's Changes in Net Position
2016 2015 2016 2015 2016 2015
Revenues:
Program revenues:
Charges for services $2,978,107 $2,836,868 $6,021,366 $5,806,597 $8,999,473 $8,643,465
Operating grants and contributions 735,840 823,943 72,007 45,130 807,847 869,073
Capital grants and contributions 3,705,857 5,812,825 5,199,139 3,140,823 8,904,996 8,953,648
General revenues:
General property taxes 10,643,917 10,536,216 - - 10,643,917 10,536,216
Tax increment collections 111,761 200,338 - - 111,761 200,338
Grants and contributions not
restricted to specific programs 19,754 21,679 - - 19,754 21,679
Unrestricted investment earnings 156,202 176,731 79,765 132,406 235,967 309,137
Gain on sale of capital assets 41,129 66,248 25,224 57,510 66,353 123,758
Total revenues 18,392,567 20,474,848 11,397,501 9,182,466 29,790,068 29,657,314
Expenses:
General government 2,887,111 2,775,663 - - 2,887,111 2,775,663
Public safety 3,973,031 3,826,376 - - 3,973,031 3,826,376
Public works 7,591,530 11,153,322 - - 7,591,530 11,153,322
Parks and recreation 3,278,139 2,952,985 - - 3,278,139 2,952,985
Community development 689,448 527,268 - - 689,448 527,268
Interest and fees on long-term debt 493,746 409,676 - - 493,746 409,676
Water - - 4,422,789 3,290,265 4,422,789 3,290,265
Sewer - - 3,254,619 3,297,128 3,254,619 3,297,128
Surface water management - - 1,388,979 1,328,144 1,388,979 1,328,144
Total expenses 18,913,005 21,645,290 9,066,387 7,915,537 27,979,392 29,560,827
Increase (decrease) in net position before transfers (520,438) (1,170,442) 2,331,114 1,266,929 1,810,676 96,487
Transfers 73,032 (612,078) (73,032) 612,078 - -
Change in net position (447,406) (1,782,520) 2,258,082 1,879,007 1,810,676 96,487
Net position - beginning, as previously reported 86,717,890 92,080,291 65,737,209 64,578,809 152,455,099 156,659,100
Prior period adjustment - (3,579,881) - (720,607) - (4,300,488)
Net position - beginning, as restated 86,717,890 88,500,410 65,737,209 63,858,202 152,455,099 152,358,612
Net position - ending $86,270,484 $86,717,890 $67,995,291 $65,737,209 $154,265,775 $152,455,099
Governmental Activities Business-Type Activities Totals
20
Management’s Discussion and Analysis
Governmental Activities
Revenues
Revenues for the governmental activities decreased by $2,082,281, or 10%. The primary reason
for the change was a decrease to capital grants and contributions as compared to the previous
year. During 2015, a significantly higher amount of state aid was received for road improvement
projects. 2016 capital grant and contribution revenue is comparable to 2014 amounts.
Expenses
Expenses for the governmental activities decreased by $2,732,285, or 13%. As noted above, the
decrease was due to less state aid for improvement projects; as such, there was a corresponding
decrease in construction expense, a significant portion of which was not capitalized in 2015.
Below are specific graphs which provide comparisons of the governmental activities revenues
and expenses:
21
Management’s Discussion and Analysis
Business-Type Activities
Revenues
Revenues for the business-type activities increased by $2,215,035, or 24%. More specifically,
capital grants and contributions increased $2,058,316 from the previous year. An increase in
developer contributed assets in the Water and Sewer Funds accounted for most of the change.
Expenses
Expenses for business-type activities increased by $1,150,850, or 15%. Almost the entire
increase occurred in the Water Fund. The two most significant items were 1) $755,450 of non-
capitalized expenses were incurred for the Lake Lucy water tower repainting project and 2)
$126,196 of costs were incurred relating to the issuance of the 2016A and 2016B Water Revenue
Bonds.
22
Management’s Discussion and Analysis
Below are specific graphs showing the business-type activities revenue and expense
comparisons:
23
Management’s Discussion and Analysis
Financial Analysis of the Government's Funds
Governmental funds. The focus of the City’s governmental funds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the City’s financing requirements. In particular, unrestricted fund balance may serve
as a useful measure of a government’s net resources available for spending at the end of the
fiscal year.
At the end of the current fiscal year, the City’s governmental funds reported combined ending
fund balances of $21,528,879. Approximately 40% of this total amount ($8,673,981) constitutes
fund balance restricted by external constraints established by creditors, grantors, contributors, or
by state statutory provisions. $25,832 of fund balance is not in a spendable form, $7,806,958 has
been assigned, and $5,022,108 is unassigned.
The General Fund balance decreased by $17,634 in 2016. There were no significant items that
contributed to this change in fund balance.
The Revolving Assessment Fund balance increased by $736,991. The majority of the increase
was due to transfers from other funds. One of the transfers ($301,281) was from the General
Fund for the prior year surplus and the other transfer ($211,442) was for costs attributable to the
enterprise funds for a construction project accounted for in this fund.
The TH101 Improvements – Lyman to Pioneer Fund balance increased by $2,037, which equals
the current year investment income of the fund.
The nonmajor special revenue funds increased by $64,164. There were no significant items that
contributed to this change in fund balance.
The nonmajor debt service funds increased by $4,128,298. The increase was due to the issuance
of the 2016A General Obligation Bonds.
The nonmajor capital project funds decreased by $1,007,226. The decrease was due to a number
of capital expenditures in excess of revenues including two significant park improvement
projects totaling $871,589, the unplanned purchase of a fire truck ($254,190) and a number of
other smaller street improvement projects in excess of anticipated cost.
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 $4,580,751 (Water),
$4,610,885 (Sewer) and $1,324,680 (Surface Water Management). All three proprietary funds
experienced increases in net position due to large contributions of capital assets from developer
installed projects as compared to the previous year.
24
Management’s Discussion and Analysis
Budgetary Highlights
General Fund
There were no budget amendments to the General Fund in 2016.
Budgetary Variances – Revenues
The positive General Fund revenue variance of $135,705 was mostly due to building permit
revenue exceeding budget.
Budgetary Variances – Expenses
Expenses for the General Fund had a positive variance of $232,618. The variance was due to
vacant positions throughout the year and fuel costs significantly lower than budgeted.
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, 2016 amounts to $147,181,213 (net of accumulated depreciation).
This investment in capital assets includes land, easements, buildings, infrastructure, machinery,
and equipment.
City of Chanhassen, Minnesota’s Capital Assets
(Net of Depreciation)
Beginning Ending
Primary Government Balance Increase Decrease Balance
Governmental activities:
Capital assets not being depreciated:
Land $19,865,817 $ - ($64,100) $19,801,717
Construction in progress 955,311 977,488 (314,619) 1,618,180
Permanent easements 1,198,179 300,815 - 1,498,994
Total capital assets not being depreciated 22,019,307 1,278,303 (378,719) 22,918,891
Capital assets being depreciated:
Buildings and structures 23,079,587 109,150 - 23,188,737
Machinery and equipment 8,589,923 630,986 (472,713) 8,748,196
Temporary easements 12,931 - (12,931) -
Other improvements 7,414,759 86,427 - 7,501,186
Infrastructure 115,362,992 2,990,102 - 118,353,094
Total capital assets being depreciated 154,460,192 3,816,665 (485,644) 157,791,213
Less accumulated depreciation for:
Buildings and structures 7,269,105 565,390 - 7,834,495
Machinery and equipment 5,839,993 518,169 (445,224) 5,912,938
Temporary easements 12,931 - (12,931) -
Other improvements 3,266,808 297,764 - 3,564,572
Infrastructure 78,686,054 3,529,803 - 82,215,857
Total accumulated depreciation 95,074,891 4,911,126 (458,155) 99,527,862
Governmental activities capital assets - net $81,404,608 $183,842 ($406,208) $81,182,242
25
Management’s Discussion and Analysis
Beginning Ending
Primary Government Balance Increase Decrease Balance
Business-type activities:
Capital assets not being depreciated:
Land $2,077,335 $8,100 $ - $2,085,435
Construction in progress 3,424,667 902,905 (3,070,515) 1,257,057
Permanent easements 1,219,527 92,721 - 1,312,248
Total capital assets not being depreciated 6,721,529 1,003,726 (3,070,515) 4,654,740
Capital assets being depreciated:
Buildings and structures 12,445,429 - - 12,445,429
Machinery and equipment 1,738,005 138,470 (71,956) 1,804,519
Other improvements 106,318,290 7,256,013 (41,285) 113,533,018
Total capital assets being depreciated 120,501,724 7,394,483 (113,241) 127,782,966
Less accumulated depreciation for:
Buildings and structures 1,991,997 248,917 - 2,240,914
Machinery and equipment 806,254 127,241 (50,180) 883,315
Other improvements 60,299,264 3,056,527 (41,285) 63,314,506
Total accumulated depreciation 63,097,515 3,432,685 (91,465) 66,438,735
Business-type activities capital assets - net 64,125,738 4,965,524 (3,092,291) 65,998,971
Total capital assets - net $145,530,346 $5,149,366 ($3,498,499) $147,181,213
Additional information on the City’s capital assets can be found in Note 5.
Governmental Activities Capital Assets. There was a decrease in capital assets due to the
reduction in depreciable assets (current year depreciation expense exceeded current year
additions).
Business-Type Activities Capital Assets. There was an increase in capital assets due to the
receipt of capital assets from developer installed projects.
Long-term debt. At the end of the current fiscal year, the City had total bonds payable
outstanding of $27,240,507, an increase of $7,904,272 from 2015. In addition to scheduled debt
service payments, the City paid off its G.O. Improvement Refunding Bonds of 2009A which had
a balance of $1,155,000 at December 31, 2015.
During 2016, the City issued $6,370,000 of General Obligation Bonds, Series 2016A and
$3,630,000 of General Obligation Water Revenue Bonds, Series 2016B. $4,805,000 of the
2016A bonds will be used to refund the General Obligation Bonds, Series 2008A, on February 1,
2018. Until that date, the City will report greater debt than, in substance, it will be responsible
for paying. The remaining $1,565,000 of 2016A bonds and proceeds from the 2016B bonds are
being used for improvements to the water utility system, including construction of a new water
treatment plant.
26
Management’s Discussion and Analysis
The balance of the bonds payable outstanding is comprised of $13,090,000 in general obligation
bonds, $13,520,000 of revenue bonds which financed capital investments for the water, sewer,
and surface water management operations, and an unamortized bond premium of $630,507.
Additional long-term debt in the amount of $944,163 for compensated absences was also
outstanding at the end of 2016.
City of Chanhassen, Minnesota’s Outstanding Debt
2016 2015 2016 2015 2016 2015
General obligation bonds $13,090,000 $8,925,000 $ - $ - $13,090,000 $8,925,000
Revenue bonds - - 13,520,000 9,130,000 13,520,000 9,130,000
General improvement bonds - 1,155,000 - - - 1,155,000
Bond premium 223,788 - 406,719 126,235 630,507 126,235
Compensated absences 763,563 769,264 180,600 163,977 944,163 933,241
Total $14,077,351 $10,849,264 $14,107,319 $9,420,212 $28,184,670 $20,269,476
TotalsBusiness-Type ActivitiesGovernmental Activities
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 and again in December 2016 by Standard & Poor’s.
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 $114,087,123. Of the
City's outstanding debt, $7,800,000 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.
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28
BASIC FINANCIAL STATEMENTS
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30
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF NET POSITION Statement 1
December 31, 2016
With Comparative Totals For December 31, 2015
Governmental Business-Type
Activities Activities 2016 2015
Assets:
Cash and investments $15,294,797 $13,491,288 $28,786,085 $26,767,060
Cash with escrow agent 5,414,798 - 5,414,798 -
Restricted cash - 3,724,395 3,724,395 -
Accrued interest receivable 48,322 46,896 95,218 176,478
Due from other governmental units 245,027 35,142 280,169 1,051,895
Accounts receivable - net 256,296 1,153,702 1,409,998 1,346,976
Property taxes receivable 217,259 - 217,259 176,859
Prepaid items 25,832 2,191 28,023 87,059
Inventories - at cost - 51,113 51,113 35,210
Internal balances 1,000,120 (1,000,120) - -
Contract for deed receivable 1,252,869 - 1,252,869 1,282,486
Special assessments receivable 2,073,434 105,756 2,179,190 2,675,592
Capital assets (net of accumulated depreciation):
Nondepreciable 22,918,891 4,654,740 27,573,631 28,740,836
Depreciable 58,263,351 61,344,231 119,607,582 116,789,510
Total assets 107,010,996 83,609,334 190,620,330 179,129,961
Deferred outflows of resources related to pensions 2,766,838 469,375 3,236,213 850,697
Liabilities:
Accounts payable 338,127 184,923 523,050 365,726
Due to other governmental units 68,329 179,305 247,634 149,806
Salaries payable 196,988 39,924 236,912 206,079
Contracts payable 428,628 198,381 627,009 609,181
Accrued interest payable 185,353 92,573 277,926 235,916
Unearned revenue 1,101,305 850 1,102,155 173,788
Compensated absences payable:
Due within one year 125,975 29,797 155,772 136,443
Due in more than one year 637,588 150,803 788,391 796,798
Other post employment benefits payable:
Due in more than one year 34,050 - 34,050 30,603
Bonds payable:
Due within one year 670,000 955,000 1,625,000 2,024,026
Due in more than one year 12,643,788 12,971,719 25,615,507 17,312,209
Net pension liability:
Due in more than one year 6,315,950 1,131,472 7,447,422 4,951,819
Total liabilities 22,746,081 15,934,747 38,680,828 26,992,394
Deferred inflows of resources related to pensions 761,269 148,671 909,940 533,165
Net position:
Net investment in capital assets 72,588,940 57,478,975 130,067,915 126,930,001
Restricted for:
Debt service 1,390,127 - 1,390,127 3,455,172
Park improvements 1,505,784 - 1,505,784 1,896,923
Tax increment purposes 399,178 - 399,178 475,357
Other purposes 164,751 - 164,751 154,810
Unrestricted 10,221,704 10,516,316 20,738,020 19,542,836
Total net position $86,270,484 $67,995,291 $154,265,775 $152,455,099
Primary Government
Totals
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, 2016
With Comparative Totals For The Year Ended December 31, 2015
Program Revenues
Charges For
Functions/Programs Expenses Services
Primary government:
Governmental activities:
General government $2,887,111 $508,067
Public safety 3,973,031 1,219,943
Public works 7,591,530 253,468
Parks and recreation 3,278,139 968,122
Community development 689,448 28,507
Interest and fees on long-term debt 493,746 -
Total governmental activities 18,913,005 2,978,107
Business-type activities:
Water 4,422,789 2,717,285
Sewer 3,254,619 2,619,882
Surface water management 1,388,979 684,199
Total business-type activities 9,066,387 6,021,366
Total primary government $27,979,392 $8,999,473
The accompanying notes are an integral part of these financial statements.
32
Statement 2
Operating Capital
Grants and Grants and Governmental Business-Type
Contributions Contributions Activities Activities 2016 2015
$24,602 $ - ($2,354,442) $ - ($2,354,442) ($2,288,922)
493,343 - (2,259,745) - (2,259,745) (2,033,287)
194,520 3,705,857 (3,437,685) - (3,437,685) (4,746,128)
23,375 - (2,286,642) - (2,286,642) (2,203,052)
- - (660,941) - (660,941) (490,589)
- - (493,746) - (493,746) (409,676)
735,840 3,705,857 (11,493,201) 0 (11,493,201) (12,171,654)
5,187 2,150,002 - 449,685 449,685 848,403
- 1,705,131 - 1,070,394 1,070,394 (49,992)
66,820 1,344,006 - 706,046 706,046 278,602
72,007 5,199,139 0 2,226,125 2,226,125 1,077,013
$807,847 $8,904,996 (11,493,201) 2,226,125 (9,267,076) (11,094,641)
General revenues:
General property taxes 10,643,917 - 10,643,917 10,536,216
Tax increment collections 111,761 - 111,761 200,338
Grants and contributions not
restricted to specific programs 19,754 - 19,754 21,679
Unrestricted investment earnings 156,202 79,765 235,967 309,137
Gain on sale of capital assets 41,129 25,224 66,353 123,758
Transfers 73,032 (73,032) - -
Total general revenues and transfers 11,045,795 31,957 11,077,752 11,191,128
Change in net position (447,406) 2,258,082 1,810,676 96,487
Net position - January 1, as previously reported 86,717,890 65,737,209 152,455,099 156,659,100
Prior period adjustment - - - (4,300,488)
Net position - January 1, as restated 86,717,890 65,737,209 152,455,099 152,358,612
Net position - December 31 $86,270,484 $67,995,291 $154,265,775 $152,455,099
Program Revenues
Net (Expense) Revenue and
Changes in Net Position
Primary Government
Totals
The accompanying notes are an integral part of these financial statements.
33
CITY OF CHANHASSEN, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2016
With Comparative Totals For December 31, 2015
601 Revolving
General Fund Assessment Fund
Assets:
Cash and investments $5,522,414 $1,930,632
Cash with escrow agent - -
Accrued interest receivable 15,939 5,071
Due from other governmental units 70,003 78,751
Accounts receivable - net 59,728 -
Due from other funds - -
Property taxes receivable 193,936 3,856
Prepaid items 25,832 -
Interfund loan receivable - 564,892
Contract for deed receivable - -
Special assessments receivable 948 1,392,979
Total assets $5,888,800 $3,976,181
Liabilities, Deferred Inflows of Resources, and Fund Balances
Liabilities:
Accounts payable $199,378 $18,968
Due to other governmental units 42,921 -
Salaries payable 193,638 -
Contracts payable - 77,425
Due to other funds - -
Interfund loan payable - -
Unearned revenue 45,056 69,969
Total liabilities 480,993 166,362
Deferred inflows of resources:
Unavailable revenue 95,095 1,386,860
Fund balances:
Nonspendable 25,832 -
Restricted - -
Assigned - 2,422,959
Unassigned 5,286,880 -
Total fund balances 5,312,712 2,422,959
Total liabilities, deferred inflows of resources, and fund balances $5,888,800 $3,976,181
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 1U).
Net position of governmental activities
The accompanying notes are an integral part of these financial statements.
34
Statement 3
604 TH101 Other
Improvements - Governmental
Lyman to Pioneer Funds
2016 2015
$848,246 $6,993,505 $15,294,797 $14,938,421
- 5,414,798 5,414,798 -
1,199 26,113 48,322 100,890
58,004 38,269 245,027 946,030
- 196,568 256,296 177,482
- - - 588,022
- 19,467 217,259 176,859
- - 25,832 72,950
- 700,000 1,264,892 1,400,000
- 1,252,869 1,252,869 1,282,486
- 679,507 2,073,434 2,538,703
$907,449 $15,321,096 $26,093,526 $22,221,843
$ - $119,781 $338,127 $302,739
- 25,408 68,329 44,940
- 3,350 196,988 174,917
- 351,203 428,628 321,607
- - - 588,022
- 264,772 264,772 368,797
904,651 81,629 1,101,305 173,788
904,651 846,143 2,398,149 1,974,810
- 684,543 2,166,498 2,624,784
- - 25,832 1,325,819
- 8,673,981 8,673,981 5,824,354
2,798 5,381,201 7,806,958 5,586,353
- (264,772) 5,022,108 4,885,723
2,798 13,790,410 21,528,879 17,622,249
$907,449 $15,321,096 $26,093,526 $22,221,843
$21,528,879 $17,622,249
81,182,242 81,404,608
2,166,498 2,624,784
(18,607,135) (14,933,751)
$86,270,484 $86,717,890
Total Governmental Funds
The accompanying notes are an integral part of these financial statements.
35
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2016
With Comparative Totals For The Year Ended December 31, 2015
General Fund
601 Revolving
Assessment Fund
Revenues:
General property taxes $8,028,125 $431,698
Tax increment collections - -
Licenses and permits 1,142,778 -
Intergovernmental 406,507 138,186
Special assessments - 629,161
Charges for services 622,569 -
Fines and forfeits 114,367 -
Investment earnings 33,578 70,328
Net change in fair value of investments (6,498) (2,067)
Contributions and donations 24,275 -
Refunds and reimbursements 60,804 12,831
Other 195,200 -
Total revenues 10,621,705 1,280,137
Expenditures:
Current:
General government 2,087,320 -
Public safety 3,312,704 -
Public works 2,324,835 871,797
Parks and recreation 2,056,716 -
Community development 471,807 -
Capital outlay:
General government - -
Public safety - -
Public works - 362,852
Parks and recreation - -
Decertification of TIF district - -
Debt service:
Principal - -
Interest and paying agent fees - -
Total expenditures 10,253,382 1,234,649
Revenues over (under) expenditures 368,323 45,488
Other financing sources (uses):
Sale of capital assets 35,324 -
Bonds issued - -
Bonds premium - -
Transfers in - 720,337
Transfers out (421,281) (28,834)
Total other financing sources (uses) (385,957) 691,503
Net change in fund balance (17,634) 736,991
Fund balance - January 1 5,330,346 1,685,968
Fund balance - December 31 $5,312,712 $2,422,959
The accompanying notes are an integral part of these financial statements.
36
Statement 4
604 TH101 Improvements -
Lyman to Pioneer Other Govt'l Funds
2016 2015
$ - $2,180,492 $10,640,315 $10,529,994
- 111,761 111,761 200,338
- 511,080 1,653,858 1,565,900
3,750 426,474 974,917 4,897,139
- 190,865 820,026 1,664,424
- 223,971 846,540 799,543
- - 114,367 117,189
2,526 69,470 175,902 224,119
(489) (10,646) (19,700) (47,388)
- 36,527 60,802 78,175
- 76,458 150,093 85,955
- 80,867 276,067 267,622
5,787 3,897,319 15,804,948 20,383,010
- 391,951 2,479,271 2,391,195
- 400,442 3,713,146 3,431,541
3,217 761,167 3,961,016 7,537,376
- 199,598 2,256,314 2,068,532
- 47,875 519,682 515,382
- 62,713 62,713 -
- 314,004 314,004 122,143
533 95,757 459,142 2,566,867
- 1,153,763 1,153,763 476,323
- 139,594 139,594 -
- 1,795,000 1,795,000 1,810,000
- 483,533 483,533 439,470
3,750 5,845,397 17,337,178 21,358,829
2,037 (1,948,078) (1,532,230) (975,819)
- 54,994 90,318 41,015
- 4,805,000 4,805,000 -
- 239,773 239,773 -
- 627,546 1,347,883 2,158,844
- (593,999) (1,044,114) (1,701,005)
0 5,133,314 5,438,860 498,854
2,037 3,185,236 3,906,630 (476,965)
761 10,605,174 17,622,249 18,099,214
$2,798 $13,790,410 $21,528,879 $17,622,249
Total Governmental Funds
The accompanying notes are an integral part of these financial statements.
37
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, 2016
With Comparative Totals For The Year Ended December 31, 2015
2016 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)$3,906,630 ($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 1,989,622 3,165,333
Depreciation expense (4,911,126) (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 2,979,064 685,717
Transfer of capital assets to Enterprise Funds (230,737) (1,069,917)
Gain (loss) on disposal of capital assets (49,189)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 3,602 6,222
Change in deferred and delinquent special assessments (467,814) (668,808)
Change in other unavailable revenue 5,926 659
The issuance of long-term debt 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. Also, governmental funds
report the effects of bond premiums when the debt is first issued, whereas amounts
are deferred and amortized over the life of the debt in the statement of activities.
Issuance of bonds, including bond premium (5,044,773) -
Repayment of principal 1,795,000 1,810,000
Amortization of bond premiums 15,985 -
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 5,701 22,373
Change in other post employment benefits payable (3,447)(5,072)
Change in accrued interest payable (26,198)29,794
Governmental funds report pension contributions as expenditures, however,
pension expense is reported in the statement of activities. This is the amount
by which pension expense exceeds pension contributions.(415,652) (314,848)
Change in net position of governmental activities (Statement 2)($447,406) ($1,782,520)
The accompanying notes are an integral part of these financial statements.
38
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF NET POSITION Statement 6
PROPRIETARY FUNDS
December 31, 2016
With Comparative Totals For December 31, 2015
Water Sewer
Surface Water
Management 2016 2015
Assets:
Current assets:
Cash and cash equivalents $7,079,872 $5,031,128 $1,380,288 $13,491,288 $11,828,639
Restricted cash 3,724,395 - - 3,724,395 -
Accrued interest receivable 24,790 17,392 4,714 46,896 75,588
Due from other governmental units 1,480 174 33,488 35,142 105,865
Accounts receivable - net 470,691 525,308 157,703 1,153,702 1,169,494
Interfund loan receivable 264,772 - - 264,772 368,797
Prepaid items 1,023 828 340 2,191 14,109
Water meter inventory 51,113 - - 51,113 35,210
Special assessments receivable 73,319 3,044 - 76,363 98,145
Connection charges receivable 24,273 5,120 - 29,393 38,744
Total current assets 11,715,728 5,582,994 1,576,533 18,875,255 13,734,591
Noncurrent assets:
Capital assets:
Nondepreciable 2,681,717 596,825 1,376,198 4,654,740 6,721,529
Depreciable 63,390,722 36,051,666 28,340,578 127,782,966 120,501,724
Total capital assets 66,072,439 36,648,491 29,716,776 132,437,706 127,223,253
Less: Allowance for depreciation (28,640,630) (22,765,258) (15,032,847) (66,438,735) (63,097,515)
Net capital assets 37,431,809 13,883,233 14,683,929 65,998,971 64,125,738
Total assets 49,147,537 19,466,227 16,260,462 84,874,226 77,860,329
Deferred outflows of resources related to pensions 201,197 164,895 103,283 469,375 103,303
Liabilities:
Current liabilities:
Accounts payable 157,573 8,514 18,836 184,923 62,987
Due to other governmental units 19,059 154,126 6,120 179,305 104,866
Salaries payable 19,710 11,864 8,350 39,924 31,162
Contracts payable 187,704 10,677 - 198,381 287,574
Accrued interest payable 90,335 2,238 - 92,573 76,761
Unearned revenue - - 850 850 -
Interfund loan payable - due within one year 192,175 - - 192,175 163,446
Compensated absences payable - due within one year 12,501 10,813 6,483 29,797 23,974
Bonds payable - due within one year 895,000 60,000 - 955,000 819,026
Total current liabilities 1,574,057 258,232 40,639 1,872,928 1,569,796
Noncurrent liabilities:
Interfund loan payable 1,072,717 - - 1,072,717 1,236,554
Compensated absences payable 63,268 54,725 32,810 150,803 140,003
Bonds payable 12,586,719 385,000 - 12,971,719 8,437,209
Net pension liability 485,005 397,494 248,973 1,131,472 752,534
Total noncurrent liabilities 14,207,709 837,219 281,783 15,326,711 10,566,300
Total liabilities 15,781,766 1,095,451 322,422 17,199,639 12,136,096
Deferred inflows of resources related to pensions 63,727 52,230 32,714 148,671 90,327
Net position:
Net investment in capital assets 28,922,490 13,872,556 14,683,929 57,478,975 55,704,478
Unrestricted 4,580,751 4,610,885 1,324,680 10,516,316 10,032,731
Total net position $33,503,241 $18,483,441 $16,008,609 $67,995,291 $65,737,209
Totals
The accompanying notes are an integral part of these financial statements.
39
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND Statement 7
CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For The Year Ended December 31, 2016
With Comparative Totals For The Year Ended December 31, 2015
Water Sewer
Surface Water
Management 2016 2015
Operating revenues:
Charges for services $2,626,645 $2,552,679 $665,364 $5,844,688 $5,562,574
Penalties and other 85,677 66,984 17,031 169,692 236,217
Total operating revenues 2,712,322 2,619,663 682,395 6,014,380 5,798,791
Operating expenses:
Personal services 665,347 422,033 275,464 1,362,844 1,241,894
Materials and supplies 241,172 34,367 41,643 317,182 372,872
Contractual services:
MCES - 1,445,540 - 1,445,540 1,567,672
Other 1,235,775 238,738 223,831 1,698,344 808,305
Repairs and maintenance 358,199 126,543 614 485,356 406,744
Depreciation 1,603,505 981,753 847,427 3,432,685 3,339,618
Total operating expenses 4,103,998 3,248,974 1,388,979 8,741,951 7,737,105
Operating income (loss) (1,391,676) (629,311) (706,584) (2,727,571) (1,938,314)
Nonoperating revenues (expenses):
Investment earnings 52,312 36,640 9,931 98,883 167,911
Net change in fair value of investments (10,106) (7,090) (1,922) (19,118) (35,505)
Intergovernmental 5,187 - 66,820 72,007 45,130
Refunds and reimbursements 4,963 219 1,804 6,986 20,948
Interest and fiscal charges (318,791) (5,645) - (324,436) (178,432)
Gain on disposal of capital assets 12,612 12,612 - 25,224 57,510
Total nonoperating revenues (expenses) (253,823) 36,736 76,633 (140,454) 77,562
Income before contributions and transfers (1,645,499) (592,575) (629,951) (2,868,025) (1,860,752)
Transfers in 72,286 - - 72,286 61,849
Transfers out (204,312) (107,976) (63,767) (376,055) (519,688)
Capital contributions:
Contributions of capital assets 1,268,976 1,362,245 1,254,909 3,886,130 2,525,354
Special assessments 6,212 1,611 - 7,823 7,295
Connection charges 973,128 379,840 182,955 1,535,923 1,664,949
Total contributions and transfers 2,116,290 1,635,720 1,374,097 5,126,107 3,739,759
Change in net position 470,791 1,043,145 744,146 2,258,082 1,879,007
Net position - January 1, as previously reported 33,032,450 17,440,296 15,264,463 65,737,209 64,578,809
Prior period adjustment - - - - (720,607)
Net position - January 1, as restated 33,032,450 17,440,296 15,264,463 65,737,209 63,858,202
Net position - December 31 $33,503,241 $18,483,441 $16,008,609 $67,995,291 $65,737,209
Capital Transfers -
Contributions Net
Amounts reported above $5,429,876 ($303,769)
Amounts reported for business-type activities in the
statement of activities are different because:
Transfer in of capital assets from governmental activities (230,737) 230,737
Amounts reported on the statement of activities $5,199,139 ($73,032)
Totals
The accompanying notes are an integral part of these financial statements.
40
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF CASH FLOWS Statement 8
PROPRIETARY FUNDS
For The Year Ended December 31, 2016
With Comparative Totals For The Year Ended December 31, 2015
Water Sewer
Surface Water
Management 2016 2015
Cash flows from operating activities:
Receipts from customers and users $2,742,054 $2,613,162 $746,529 $6,101,745 $5,743,386
Payment to suppliers (1,733,172) (1,717,423) (303,437) (3,754,032) (3,226,691)
Payment to employees (621,760) (387,566) (256,923) (1,266,249) (1,235,149)
Miscellaneous revenue 10,150 219 68,624 78,993 66,078
Net cash flows provided by operating activities 397,272 508,392 254,793 1,160,457 1,347,624
Cash flows from noncapital financing activities:
Transfers in 34,203 - - 34,203 61,849
Transfers out (204,312) (69,893) (63,767) (337,972) (519,688)
Interfund loan receivable - collections 104,025 - - 104,025 98,136
Interfund loan payable - (payments) proceeds (163,446) - - (163,446) 1,400,000
Net cash flows provided by (used in)
noncapital financing activities (229,530) (69,893) (63,767) (363,190) 1,040,297
Cash flows from capital and related financing activities:
Acquisition of capital assets (1,101,006) (219,557) (115,404) (1,435,967) (1,624,832)
Connection charges 980,591 381,728 182,955 1,545,274 1,679,492
Special assessment collections 27,289 2,316 - 29,605 26,770
Proceeds from issuance of bonds 5,500,545 - - 5,500,545 -
Principal paid on bonds (745,000) (60,000) - (805,000) (775,000)
Interest and fiscal charges (347,242) (5,895) - (353,137) (194,323)
Net cash flows provided by (used in) capital
and related financing activities 4,315,177 98,592 67,551 4,481,320 (887,893)
Cash flows from investing activities:
Investment earnings 54,553 42,649 11,255 108,457 105,532
Net (decrease) in cash and cash equivalents 4,537,472 579,740 269,832 5,387,044 1,605,560
Cash and cash equivalents - January 1 6,266,795 4,451,388 1,110,456 11,828,639 10,223,079
Cash and cash equivalents - December 31 $10,804,267 $5,031,128 $1,380,288 $17,215,683 $11,828,639
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) ($1,391,676) ($629,311) ($706,584) ($2,727,571) ($1,938,314)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Miscellaneous revenue (expense)10,150 219 68,624 78,993 66,078
Depreciation 1,603,505 981,753 847,427 3,432,685 3,339,618
Changes in assets and liabilities, deferred outflows and inflows:
Decrease (increase) in receivables 29,732 (6,501) 63,284 86,515 (55,405)
Decrease (increase) in prepaid items 4,401 3,955 3,562 11,918 (1,758)
Decrease (increase) in inventory (15,903) - - (15,903) 1,112
Decrease (increase) in deferred outflows of resources (156,891) (128,611) (80,570) (366,072) (71,954)
Increase (decrease) in payables 126,719 133,207 (37,316) 222,610 (82,658)
Increase (decrease) in net pension liability 162,249 133,177 83,512 378,938 578
Increase (decrease) in deferred inflows of resources 24,986 20,504 12,854 58,344 90,327
Total adjustments 1,788,948 1,137,703 961,377 3,888,028 3,285,938
Net cash provided by operating activities $397,272 $508,392 $254,793 $1,160,457 $1,347,624
Noncash investing, capital and financing activities:
Capital assets in the amount of $1,268,976 and $411,238 were contributed to the Water Fund in 2016 and 2015, respectively.
Capital assets in the amount of $1,362,245 and $548,045 were contributed to the Sewer Fund in 2016 and 2015, respectively.
Capital assets in the amount of $1,254,909 and $1,566,071 were contributed to the Surface Water Fund in 2016 and 2015, respectively.
Capital assets with a net book value of $38,083 were tranferred from the Sewer Fund to the Water fund in 2016.
Totals
The accompanying notes are an integral part of these financial statements.
41
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF NET POSITION Statement 9
FIDUCIARY FUNDS
December 31, 2016
With Comparative Totals For December 31, 2015
2016 2015
Assets:
Cash and investments $1,639,041 $1,306,003
Accounts receivable 10,905 -
Total assets $1,649,946 $1,306,003
Liabilities:
Accounts payable $10,905 $ -
Escrow deposits payable 1,639,041 1,306,003
Total liabilities $1,649,946 $1,306,003
Agency Funds
The accompanying notes are an integral part of these financial statements.
42
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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, 2016
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) 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.
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
44
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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.
Revolving Assessment Fund (601) accounts for the City’s annual street re-construction program.
The individual property owner pays a portion of the cost of the annual project with assessments
and the City funds its portion with the reserves created in this fund and an annual tax levy.
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.
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,
45
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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, Cemetery, 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 2016. 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.
5. Formal budgetary integration is employed as a management control device during the year for
the General Fund and for the Contribution, Cemetery 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 2016, the CATV Special Revenue Fund had expenditures of $171,672, which exceeded
budgeted expenditures of $150,500 by $21,172.
46
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
F. CASH AND INVESTMENTS
Cash and investment balances from all funds are pooled and invested to the extent available in
authorized investments. Investments are stated at fair value. Investment income is accrued at the
balance sheet date and allocated to individual funds on the basis of the fund's equity in the cash and
investment pool.
For purposes of the statement of cash flows, the Proprietary Funds consider all highly liquid
investments with a maturity of three months or less when purchased to be cash equivalents. All of the
cash and investments allocated to the Proprietary Fund types have original maturities of 90 days or
less. Therefore, the entire balance in such fund types is considered cash equivalents.
G. RECEIVABLES
Property taxes and special assessment receivables have been reported net of estimated uncollectible
accounts (See Note 1 H and I). Because utility bills are considered liens on property, no estimated
uncollectible amounts are established. Uncollectible amounts are not material for other receivables
and have not been reported.
H. PROPERTY TAX REVENUE RECOGNITION
The City Council annually adopts a tax levy and certifies it to the County in December
(levy/assessment date) of each year for collection in the following year. The County is responsible for
billing and collecting all property taxes for itself, the City, the local School District and other taxing
authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that
date. Real property taxes are payable (by property owners) on May 15 and October 15 of each
calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each
year. These taxes are collected by the County and remitted to the City on or before July 15 and
December 15 of the same year. Delinquent collections for November and December are received the
following January. The City has no ability to enforce payment of property taxes by property owners.
The County possesses this authority.
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
47
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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.
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.
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CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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 $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 acquisition 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, 2016, $55,910 of
interest was capitalized in connection with construction in progress.
Capital assets of the City are depreciated/amortized using the straight line method over the following
estimated useful lives:
Buildings and structures 20 – 50 years
Machinery and equipment (including software) 3 – 30 years
Drainage systems 30 years
Water and sewer lines 30 years
Streets 25 – 50 years
Trails 15 years
Sidewalks 25 years
Other improvements 7 – 40 years
Temporary easements 2 years
M. COMPENSATED ABSENCES
The City compensates all employees upon termination for unused vacation and unused sick time up to
a maximum based upon length of service. The City compensates nonexempt employees for unused
comp time. All vacation pay and comp time is accrued when incurred in the government-wide and
49
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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 GASB Statement 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.
O. DEFERRED OUTFLOWS/INFLOWS 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 an 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.
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CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Restricted - consists of amounts related to externally imposed constraints established by creditors,
grantors or contributors; or constraints imposed by state statutory provisions.
Committed - consists of internally imposed constraints. These constraints are established by
Resolution of City Council, and committed amounts cannot be used for any other purpose unless
the City Council removes or changes the specified use by resolution.
Assigned - consists of internally imposed constraints for the specific purpose of the City’s
intended use. Pursuant to the City’s Fund Balance Policy, the City Manager or Finance Director
are authorized to assign fund balance that reflects the City’s intended use of those funds.
Unassigned - is the residual classification for the general fund and also reflects negative residual
amounts in other funds.
When both restricted and unrestricted resources are available for use, it is the City’s policy to first use
restricted resources, and then use unrestricted resources as they are needed.
When committed, assigned or unassigned resources are available for use, it is the City’s policy to use
resources in the following order: 1) committed 2) assigned and 3) unassigned. The exception to this is
the Park Acquisition and Development Fund (410), where it is the City’s policy to use resources in the
following order: 1) assigned, 2) committed, and 3) restricted.
Q. INTERFUND TRANSACTIONS
During the course of operations, numerous transactions occur between individual funds for goods
provided or services rendered. Interfund services provided and used are accounted for as revenues,
expenditures or expenses. Transactions that constitute reimbursements to a fund for
expenditures/expenses initially made from it that are properly applicable to another fund, are recorded
as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the
fund that is reimbursed.
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.
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CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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, 2015, from which the summarized
information was derived.
T. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - PENSIONS
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.
U. 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 ($18,607,135) difference
are as follows:
Bonds payable ($13,090,000)
Unamortized bond premium (223,788)
Accrued interest payable (185,353)
Compensated absences payable (763,563)
Other post employment benefits payable (34,050)
Net pension liability (6,315,950)
Deferred outflows of resources related to pensions 2,766,838
Deferred inflows of resources related to pensions (761,269)
Net adjustment to decrease fund balances - total governmental
funds to arrive at net position - governmental activities ($18,607,135)
52
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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, 2016, 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;
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, 2016, the carrying amount of the City’s deposits with financial institutions was
$3,846,950.
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.
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CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
b) Shares of investment companies registered under the Federal Investment Company Act of 1940
and whose only investments are in securities described in (a) above, general obligation tax-exempt
securities, or repurchase or reverse repurchase agreements.
c) State and local securities as follows:
1) any security which is a general obligation of any state or local government with taxing
powers which is rated “A” or better by a national bond rating service;
2) any security which is a revenue obligation of any state or local government with taxing
powers which is rated “AA” or better by a national bond rating service; and
3) a general obligation of the Minnesota Housing Finance Agency which is a moral obligation of
the State of Minnesota and is rated “A” or better by a national bond rating agency.
d) Bankers’ acceptance of United States banks.
e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the
highest quality, and maturing in 270 days or less.
f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve
System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government
securities to the Federal Reserve Bank of New York; certain Minnesota securities broker-dealers;
or, a bank qualified as a depositor.
g) General obligation temporary bonds of the same governmental entity issued under section
429.091, subdivision 7; 469.178, subdivision 5; or 475.61, subdivision 6.
As of December 31, 2016, the City had the following investments and maturities:
Fair Less
Investment Type Rating Value Than 1 1-5 6-10
Money Market NR $7,313,948 $7,313,948 $ - $ -
Brokered Certificates of Deposit NR 7,224,398 2,983,758 4,240,640 -
Municipal Bonds (1)10,405,179 2,770,708 7,634,471 -
Federal National Mortgage Assn. Notes Aaa 1,610,697 - 1,610,697 -
Federal Home Loan Mortgage Corp. Notes Aaa 1,267,838 - 1,267,838 -
Federal Home Loan Bank Notes Aaa 490,655 - 490,655 -
Resolution Funding Corp. Strip Bonds NR 1,328,897 - 1,328,897 -
Private Export Funding Corp. Bonds Aaa 660,324 - 660,324 -
Total $30,301,936 $13,068,414 $17,233,522 $0
(1) $5,351,525 are rated Aaa, $1,841,913 are rated Aa1,Total investments $30,301,936
$2,312,506 are rated Aa2, and $899,235 are rated Aa3.Deposits 3,846,950
Cash with escrow agent 5,414,798
NR - Not Rated Petty cash 635
Total cash and investments $39,564,319
Classifications above are by maturity date. Some investments listed above have call dates that occur in less than one year.
Investment Maturities (in Years)
The City categorizes its fair value measurements within the fair value hierarchy established by
generally accepted accounting principles. The hierarchy is based on the valuation inputs used to
measure the fair value of the asset. The hierarchy has three levels. Level 1 investments are valued
using inputs that are based on quoted prices in active markets for identical assets. Level 2 investments
54
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
are valued using inputs that are based on quoted prices for similar assets or inputs that are observable,
either directly or indirectly. Level 3 investments are valued using inputs that are unobservable.
The City has the following recurring fair value measurements as of December 31, 2016:
Investment Type 12/31/2016 Level 1 Level 2 Level 3
Investments at fair value:
Brokered Certificates of Deposit $7,224,398 $ - $7,224,398 $ -
Municipal Bonds 10,405,179 - 10,405,179 -
Federal National Mortgage Assn. Notes 1,610,697 - 1,610,697 -
Federal Home Loan Mortgage Corp. Notes 1,267,838 - 1,267,838 -
Federal Home Loan Bank Notes 490,655 - 490,655 -
Resolution Funding Corp. Strip Bonds 1,328,897 - 1,328,897 -
Private Export Funding Corp. Bonds 660,324 - 660,324
Total/subtotal 22,987,988 $0 $22,987,988 $0
Investments not categorized:
Money Market 7,313,948
Total $30,301,936
Fair Value Measurement Using
Cash and investments are presented in the financial statements as follows:
Cash and investments:
Governmental and business-type (Statement 1) $28,786,085
Fiduciary (Statement 9)1,639,041
Cash with escrow agent (Statement 1)5,414,798
Restricted cash (Statement 1)3,724,395
Total $39,564,319
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
$500,000 per broker is insured through SIPC. Each broker-dealer has provided additional protection
by providing additional insurance. This insurance is subject to aggregate limits applied to all of the
broker-dealer’s accounts.
Interest rate risk – Interest rate risk is the risk that changes in interest rates of debt investments could
adversely affect the fair value of an investment. The City’s investment policy requires the City to
diversify its investment portfolio to eliminate the risk of loss resulting from over concentration of
assets in a specific maturity. The policy also states the City’s investment portfolio will remain
55
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
sufficiently liquid to enable the City to meet all operating requirements which might be reasonable,
i.e., not investing in maturities longer than seven years.
Credit risk – Credit risk is the risk that an issuer or other counterparty to an investment will be unable
to fulfill its obligation to the holder of the investment. State law limits investments to commercial
paper to those rated in the highest quality category by at least two nationally recognized rating
agencies; in any security of the State of Minnesota or any of its municipalities which is rated “A” or
better by a national bond rating service for general obligation and rated “AA” or better for a revenue
obligation; a general obligation of the Minnesota Housing Finance Agency to those rated “A” or better
by a national bond rating agency; mutual funds or money market funds whose investments are
restricted to securities described in MS 118A.04. The City’s investment policy does not place further
restrictions on investment options.
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). At December 31, 2016, the
City had no investments in a single issuer exceeding 5% of the City’s overall cash and investment
portfolio.
Note 3 RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2016 are as
follows:
Interfund Delinquent Special
Loan Property Assessments
Receivable Taxes Receivable Total
Major Funds:
General $ - $26,359 $17 $26,376
Revolving Assessment Fund 372,717 - 1,058,750 1,431,467
Water 154,506 - 60,327 214,833
Nonmajor Funds 700,000 - 569,266 1,269,266
$1,227,223 $26,359 $1,688,360 $2,941,942
CONTRACT FOR DEED RECEIVABLE
During 2012, the City sold its old public works building for $1,475,000. The City received $30,000 at the time
of closing, and entered into an agreement to collect the remaining amount due, plus 5% interest, in monthly
payments through July 2017, plus a balloon payment of approximately $1,237,000 due August 2017. The
principal amount outstanding at December 31, 2016 was $1,252,869.
56
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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, 2016, the various
components of unavailable revenue were as follows:
Revolving
General Assessment Nonmajor
Fund Fund Funds Total
Delinquent property taxes receivable $79,693 $ - $ - $79,693
Special assessments not yet due 948 1,386,860 679,018 2,066,826
Other 14,454 - 5,525 19,979
Total unavailable revenue $95,095 $1,386,860 $684,543 $2,166,498
Major Funds
Note 5 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2016 was as follows:
Beginning Ending
Primary Government Balance Increase Decrease Balance
Governmental activities:
Capital assets not being depreciated:
Land $19,865,817 $ - ($64,100) $19,801,717
Construction in progress 955,311 977,488 (314,619) 1,618,180
Permanent easements 1,198,179 300,815 - 1,498,994
Total capital assets not being depreciated 22,019,307 1,278,303 (378,719) 22,918,891
Capital assets being depreciated:
Buildings and structures 23,079,587 109,150 - 23,188,737
Machinery and equipment 8,589,923 630,986 (472,713) 8,748,196
Temporary easements 12,931 - (12,931) -
Other improvements 7,414,759 86,427 - 7,501,186
Infrastructure 115,362,992 2,990,102 - 118,353,094
Total capital assets being depreciated 154,460,192 3,816,665 (485,644) 157,791,213
Less accumulated depreciation for:
Buildings and structures 7,269,105 565,390 - 7,834,495
Machinery and equipment 5,839,993 518,169 (445,224) 5,912,938
Temporary easements 12,931 - (12,931) -
Other improvements 3,266,808 297,764 - 3,564,572
Infrastructure 78,686,054 3,529,803 - 82,215,857
Total accumulated depreciation 95,074,891 4,911,126 (458,155) 99,527,862
Governmental activities capital assets - net $81,404,608 $183,842 ($406,208) $81,182,242
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CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Beginning Ending
Primary Government Balance Increase Decrease Balance
Business-type activities:
Capital assets not being depreciated:
Land $2,077,335 $8,100 $ - $2,085,435
Construction in progress 3,424,667 902,905 (3,070,515) 1,257,057
Permanent easements 1,219,527 92,721 - 1,312,248
Total capital assets not being depreciated 6,721,529 1,003,726 (3,070,515) 4,654,740
Capital assets being depreciated:
Buildings and structures 12,445,429 - - 12,445,429
Machinery and equipment 1,738,005 138,470 (71,956) 1,804,519
Other improvements 106,318,290 7,256,013 (41,285) 113,533,018
Total capital assets being depreciated 120,501,724 7,394,483 (113,241) 127,782,966
Less accumulated depreciation for:
Buildings and structures 1,991,997 248,917 - 2,240,914
Machinery and equipment 806,254 127,241 (50,180) 883,315
Other improvements 60,299,264 3,056,527 (41,285) 63,314,506
Total accumulated depreciation 63,097,515 3,432,685 (91,465) 66,438,735
Business-type activities capital assets - net 64,125,738 4,965,524 (3,092,291) 65,998,971
Total capital assets - net $145,530,346 $5,149,366 ($3,498,499) $147,181,213
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities:
General government $340,485
Public safety 122,838
Public works 3,516,216
Parks and recreation 931,587
Total depreciation expense - governmental activities $4,911,126
Business-type activities:
Water $1,603,505
Sewer 981,753
Surface water management 847,427
Total depreciation expense - business-type activities $3,432,685
58
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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, 2016, the governmental activities long-term debt of the City consisted of the following:
Final Authorized
Issue Maturity Interest And Outstanding
Date Date Rate Issued 12/31/16
General Long-Term Debt:
General Obligation Bonds:
G.O. Capital Improvement Plan Bonds, Series 2008A 11/18/08 2/1/2018 4.00% - 4.60% $7,550,000 $5,925,000
G.O. Library Refunding Bonds, Series 2010A 1/27/10 2/1/2022 2.00% - 3.10% 3,660,000 2,360,000
G.O. Bonds, Series 2016A 3/3/2016 2/1/2030 2.00% - 3.00% 4,805,000 4,805,000
Bond premium 239,773 223,788
Total general obligation bonds 16,254,773 13,313,788
Compensated absences payable N/A 763,563
Total City indebtedness - governmental activities $16,254,773 $14,077,351
BUSINESS-TYPE ACTIVITIES
As of December 31, 2016, the business-type activities long-term debt of the City consisted of the following:
Final Authorized
Issue Maturity Interest And Outstanding
Date Date Rate Issued 12/31/16
G.O. Revenue Bonds:
Water Revenue Bonds, Series 2011A 10/6/2011 2/1/2022 0.30% - 2.15% $5,920,000 $3,745,000
Water Revenue Bonds, Series 2011B 10/6/2011 2/1/2025 2.00% - 3.00% 3,720,000 3,690,000
Water and Sewer Revenue Bonds, Series 2012A 11/15/2012 2/1/2023 1.00% - 1.55% 1,245,000 890,000
Water Revenue Bonds, Series 2016A 3/3/2016 2/1/2026 2.00% - 3.00% 1,565,000 1,565,000
Water Revenue Bonds, Series 2016B 12/29/2016 2/1/2042 3.50% - 4.00% 3,630,000 3,630,000
Bond premium 476,848 406,719
Total G.O. revenue bonds 16,556,848 13,926,719
Compensated absences payable N/A 180,600
Total City indebtedness - business-type activities $16,556,848 $14,107,319
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CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
GOVERNMENTAL ACTIVITIES
Annual debt service requirements to maturity for the governmental activities long-term debt are as follows:
Year Ending Governmental Activities
December 31, Principal Interest
2017 $670,000 $433,248
2018 5,985,000 294,464
2019 720,000 156,480
2020 745,000 134,505
2021 770,000 111,780
2022 800,000 88,015
2023 385,000 70,025
2024 395,000 58,325
2025 410,000 48,300
2026 420,000 40,000
2027 430,000 31,500
2028 440,000 22,800
2029 455,000 13,850
2030 465,000 4,650
Total $13,090,000 $1,507,942
General Obligation Bonds
It is not practicable to determine the specific year for payment of long-term accrued compensated absences.
60
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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
2017 $955,000 $295,107
2018 975,000 337,666
2019 1,435,000 316,991
2020 1,460,000 287,417
2021 1,510,000 252,984
2022 1,080,000 221,072
2023 835,000 195,534
2024 720,000 173,188
2025 745,000 152,063
2026 175,000 139,988
2027 - 138,238
2028 - 138,238
2029 - 138,238
2030 - 138,238
2031 - 138,238
2032 - 138,238
2033 - 138,238
2034 - 138,238
2035 - 138,238
2036 - 138,238
2037 - 138,238
2038 140,000 135,788
2039 825,000 118,900
2040 855,000 88,431
2041 885,000 54,700
2042 925,000 18,500
Total $13,520,000 $4,308,947
It is not practicable to determine the specific year for payment of long-term accrued compensated absences.
61
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2016 was as follows:
Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Governmental activities:
General obligation bonds $8,925,000 $4,805,000 ($640,000) $13,090,000 $670,000
G.O. improvement bonds 1,155,000 - (1,155,000) - -
Bond premium - 239,773 (15,985) 223,788 -
Compensated absences 769,264 557,032 (562,733) 763,563 125,975
Total governmental activity
long-term liabilities $10,849,264 $5,601,805 ($2,373,718) $14,077,351 $795,975
Business-type activities:
G.O. revenue bonds $9,130,000 $5,195,000 ($805,000) $13,520,000 $955,000
Bond premium 126,235 305,544 (25,060) 406,719 -
Compensated absences 163,977 126,683 (110,060) 180,600 29,797
Total business-type activity
long-term liabilities $9,420,212 $5,627,227 ($940,120) $14,107,319 $984,797
For the governmental activities, compensated absences are generally liquidated by the General and Special
Revenue Funds.
All long-term bonded indebtedness outstanding at December 31, 2016 is backed by the full faith and credit of
the City. 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.
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, 2016 is $5,666,387.
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.
62
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
CROSSOVER REFUNDING
Series 2016A Bonds
On March 3, 2016, the City issued $6,370,000 in General Obligation Bonds, Series 2016A with an average
interest rate of 2.35%. Bonds in the amount of $1,565,000 were issued to provide funding for water system
improvements. The remaining $4,805,000 of bonds, along with $475,000 of cash on hand, will be used to
advance refund $5,290,000 of outstanding 2008A Series Bonds with an average interest rate of 4.42%. The net
proceeds were used to purchase U.S. government securities in the amount of $5,448,832. Those securities were
deposited in an irrevocable trust with an escrow agent to provide for the interest on the refunding bonds
through the crossover date of February 1, 2018 and called principal on the refunded bonds (2019 through 2030
maturities) on February 1, 2018.
The City advance refunded the 2019 through 2030 maturities of the 2008A Series Bonds to reduce its total debt
service payments during the years 2017 through 2030 by $928,572 and to obtain an economic gain (difference
between the present value of the debt service payments on the old and new debt) of $757,654.
The City is responsible for the debt service of the refunded bonds through February 1, 2018 and the debt
service of the refunding bonds beginning August 1, 2018. The debt service of the refunding bonds due prior to
August 1, 2018 is payable from the escrow account. Assets held with the escrow agent total $5,414,798 at
December 31, 2016.
The financial statements present each bond issue and the escrow account assets pursuant to GASB Statement
No. 7. The effect on the financial statements is to report greater debt than, in substance, the City will be
responsible for paying.
63
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
The refunding portion of the 2016A bonds are crossover refunding bonds whereby the City and the escrow
agent are responsible for debt service payments as follows:
Year Ending Refunded Refunding Escrow
December 31, Bonds Total Bonds Total Account City
2017 $559,468 $117,950 $117,950 $559,468
2018 5,736,634 117,950 5,348,975 505,609
2019 - 443,000 - 443,000
2020 - 447,875 - 447,875
2021 - 452,300 - 452,300
2022 - 451,350 - 451,350
2023 - 455,025 - 455,025
2024 - 453,325 - 453,325
2025 - 458,300 - 458,300
2026 - 460,000 - 460,000
2027 - 461,500 - 461,500
2028 - 462,800 - 462,800
2029 - 468,850 - 468,850
2030 - 469,650 - 469,650
Total $6,296,102 $5,719,875 $5,466,925 $6,549,052
Debt Service Commitment
64
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
REVENUE PLEDGED
Future revenue pledged for the payment of long-term debt is as follows:
Percent of Debt service Remaining Principal Pledged
Use of Total as a % of Term of Principal and Interest Revenue
Bond Issue Proceeds Type Debt Service net revenues Pledge and Interest Paid Received
2008A CIP bonds Public Works Facility construction Property taxes 100% n/a 2009 - 2029 $6,549,052 $556,569 $594,000
2010A Library Refunding bonds Library construction Property taxes 100% n/a 2012 - 2021 $2,581,965 $420,992 $452,792
- refunded the 2002A Library bonds
2011A Water Revenue bonds Water infrastructure improvements Water usage charges 100% 26.5% 2012 - 2021 $3,932,413 $718,501 $2,712,322
- refunded the 2005B bonds
2011B Water Revenue bonds Water infrastructure improvements Water usage charges 100% 5.0% 2012 - 2024 $4,293,400 $135,700 $2,712,322
- refunded the 2005B bonds
2012A Water & Sewer Revenue Purchase of meter reading equipment Water and sewer 100% 2.5% 2013 - 2022 $931,848 $131,340 $5,331,985
bonds usage charges
2016A Water Revenue bonds Water infrastructure improvements Water usage charges 100% 0.7% 2016 - 2025 $1,778,800 $17,883 $2,712,322
2016B Water Revenue bonds West Water Treatment Plant Water usage charges 100% n/a 2017 - 2041 $6,892,486 $ - $ -
Current YearRevenue Pledged
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, 2016.
Future scheduled tax levies for all bonds outstanding at December 31, 2016 totaled $8,712,468.
Note 8 DEFINED BENEFIT PENSION PLANS
A. 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.
65
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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.
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.
B. 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% 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 members who were first hired prior to July 1, 1989, a full annuity is
available when age plus years of service equal at least 90.
66
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
C. CONTRIBUTIONS
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates
can only be modified by the state legislature.
1. GERF Contributions
Coordinated Plan members were required to contribute 6.5% of their annual covered salary in calendar
year 2016. The City was required to contribute 7.5% for Coordinated Plan members in calendar year
2016. The City’s contributions to the GERF for the year ended December 31, 2016 were $358,611.
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 2016.
The City was required to contribute 16.2% of pay for PEPFF members in calendar year 2016. The
City’s contributions to the PEPFF for the year ended December 31, 2016 were $30,790. The City’s
contributions were equal to the required contributions as set by state statute.
D. PENSION COSTS
1. GERF Pension Costs
At December 31, 2016, the City reported a liability of $6,162,704 for its proportionate share of the
GERF’s net pension liability. The City’s net pension liability reflected a reduction due to the State of
Minnesota’s contribution of $6 million to the fund in 2016. The State of Minnesota is considered a
non-employer contributing entity and the state’s contribution meets the definition of a special funding
situation. The State of Minnesota’s proportionate share of the net pension liability associated with the
City totaled $80,496. The net pension liability was measured as of June 30, 2016, 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, 2015
through June 30, 2016, relative to the total employer contributions received from all of PERA’s
participating employers. At June 30, 2016, the City’s proportion was 0.0759%, which was a decrease
of 0.0032% from its proportion measured as of June 30, 2015.
For the year ended December 31, 2016, the City recognized pension expense of $745,864 for its
proportionate share of the GERF’s pension expense. In addition, the City recognized an additional
$24,002 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s
contribution of $6 million to the GERF.
67
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
At December 31, 2016, 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:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual economic experience $ - $500,628
Changes in actuarial assumptions 1,206,663 -
Difference between projected and
actual investment earnings 1,169,708 -
Changes in proportion - 309,125
Contributions paid to PERA
subsequent to the measurement date 180,143 -
Total $2,556,514 $809,753
$180,143 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, 2017. 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
2017 $394,260
2018 394,260
2019 555,491
2020 222,607
2021 -
Thereafter -
2. PEPFF Pension Costs
At December 31, 2016, the City reported a liability of $762,503 for its proportionate share of the
PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2016, 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, 2015 through June 30, 2016, relative to the total employer contributions received from all of
PERA’s participating employers. At June 30, 2016, the City’s proportion was 0.0190%, which was a
decrease of 0.0010% from its proportion measured as of June 30, 2015. For the year ended December
31, 2016, the City also recognized $1,710 as revenue (and an offsetting reduction of net pension
liability) 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.
For the year ended December 31, 2016, the City recognized pension expense of $143,333 for its
proportionate share of the PEPFF’s pension expense.
68
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
At December 31, 2016, 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:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual economic experience $ - $87,474
Changes in actuarial assumptions 419,639 -
Difference between projected and
actual investment earnings 116,363 -
Changes in proportion 50,402 9,355
Contributions paid to PERA
subsequent to the measurement date 15,401 -
Total $601,805 $96,829
$15,401 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, 2017. 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
2017 $107,205
2018 107,205
2019 107,203
2020 97,800
2021 70,162
Thereafter -
E. ACTUARIAL ASSUMPTIONS
The total pension liability in the June 30, 2016 actuarial valuation was determined using the following
actuarial assumptions:
Inflation 2.50% per year
Active Member Payroll Growth 3.25% per year
Investment Rate of Return 7.50%
Salary increases were based on a service-related table. Mortality rates for active members, retirees,
survivors and disabilitants were based on RP-2014 tables for the General Employees Plan and RP-
2000 tables for the Police and Fire Plan for males or females, as appropriate, with slight adjustments.
Cost of living benefit increases for retirees are assumed to be one percent per year for all future years
for the General Employees Plan and Police and Fire Plan.
69
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Actuarial assumptions used in the June 30, 2016 valuation were based on the results of actuarial
experience studies. The most recent four-year experience study in the General Employees Plan was
completed in 2015. The experience study for Police and Fire Plan was for the period July 1, 2004
through June 30, 2009. The most recent five-year experience study for the Police and Fire Plan was
completed in 2016, but the results were not adopted at the time of valuation.
The following changes in actuarial assumptions occurred in 2016:
General Employees Fund
The assumed post-retirement benefit increase rate was changed from 1.0% per year through
2035 and 2.5% per year thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate
was changed from 7.9% to 7.5%.
Other assumptions were changed pursuant to the experience study dated June 30, 2015. The
assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to
3.25% for payroll growth and 2.50% for inflation.
Police and Fire Fund
The assumed post-retirement benefit increase rate was changed from 1.0% per year through
2037 and 2.5% per year thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate
was changed from 7.9% to 5.6%.
The assumed future salary increases, payroll growth, and inflation were decreased by 0.25%
to 3.25% for payroll growth and 2.50% for inflation.
The long-term expected rate of return on pension plan investments is 7.5%. The State Board of
Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a
regular basis of the long-term expected rate of return 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
geometric real rates of return for each major asset class are summarized in the following table:
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%
Total 100%
F. DISCOUNT RATE
The discount rate used to measure the total pension liability in 2016 was 7.5%, a reduction from the
7.9% used in 2015. The projection of cash flows used to determine the discount rate assumed that
contributions from plan members and employers will be made at rates set in Minnesota statute. Based
70
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
on those assumptions, the fiduciary net position of the GERF was projected to be available to make all
projected future benefit payments of current plan members. 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.
In the Police and Fire Fund, the fiduciary net position was projected to be available to make all
projected future benefit payments of current plan members through June 30, 2056. Beginning in fiscal
year ended June 30, 2057 for the Police and Fire Fund, when projected benefit payments exceed the
funds’ projected fiduciary net position, benefit payments were discounted at the municipal bond rate of
2.85% based on an index of 20-year general obligation bonds with an average AA credit rating at the
measurement date. An equivalent single discount rate of 5.60% for the Police and Fire Fund was
determined that produced approximately the same present value of projected benefits when applied to
all years of projected benefits as the present value of projected benefits using 7.50% applied to all
years of the projected benefits through the point of asset depletion and 2.85% after.
G. 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 (6.5%) Discount Rate (7.5%) Discount Rate (8.5%)
City's proportionate share of the
GERF net pension liability $8,752,865 $6,162,704 $4,029,115
1% Decrease in 1% Increase in
Discount Rate (4.6%) Discount Rate (5.6%) Discount Rate (6.6%)
City's proportionate share of the
PEPFF net pension liability $1,067,403 $762,503 $513,377
H. 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.org.
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.
71
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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.
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 Relief 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%
6744
7848
8952
91056
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
72
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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.
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.
73
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
D. EMPLOYEES COVERED BY BENEFIT TERMS
At December 31, 2016, the following employees were covered by the benefit terms:
Retirees and beneficiaries
currently receiving benefits 7
Retired members entitled to
benefits but have not received them 27
Active members:
Fully vested (20 years or more) 3
Partially vested (5 years to 19 years) 19
Non-vested (less than 5 years)17
Total 73
E. CONTRIBUTIONS
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).
Contributions totaling $176,831 from the State of Minnesota were made to the Relief Association in
accordance with state statute requirements for the year ended December 31, 2016.
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CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
F. ACTUARIAL METHOD AND SIGNIFICANT ASSUMPTIONS
The total pension liability was determined by an actuarial valuation as of December 31, 2016 using the
following actuarial assumptions, applied to all periods in the measurement:
Valuation date (liability calculation rolled forward to 12/31/16) 12/31/2015
Measurement date (assets and funded status) 12/31/2016
Actuarial cost method Entry Age Normal
Amortization method Level dollar
Closed 20-year period
Asset valuation method Market Value
Actuarial assumptions:
Investment rate of return 5%
Projected salary increases N/A
Includes inflation at 3%
Cost-of-living adjustments N/A
Age of service retirement
The later of the age 50 and
20 years of service
Post-retirement benefit increases None
Mortality assumptions were determined using the RP-2014 Blue Collar Mortality with fully
generational improvements from 2006 based on assumptions from the Social Security
Administration’s 2016 trustees report.
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, 2016, these best estimates are summarized in the following table:
Target Long-Term Expected
Asset Class Allocation Real Rate of Return
Equity investments 60% 5.1%
Mutual funds 30% 0.6%
Other 5% 0.6%
Cash 5% 0.0%
100%
G. 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
75
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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.
H. CHANGES IN THE NET PENSION LIABILITY
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
Balance at December 31, 2015 $2,532,712 $1,907,513 $625,199
Changes for the year:
Service cost 88,924 - 88,924
Interest 128,235 - 128,235
Changes in benefit terms - - -
Changes of assumptions (203) - (203)
Contributions - employer - - -
On behalf contributions - State of MN - 177,831 (177,831)
Contributions - employee - - -
Net investment income - 158,581 (158,581)
Benefit payments, including refunds of employee
contributions (113,883) (113,883) -
Administrative expense - (16,972)16,972
Other changes - 500 (500)
Net changes 103,073 206,057 (102,984)
Balance at December 31, 2016 $2,635,785 $2,113,570 $522,215
Increase (Decrease)
I. 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:
Current
1% Decrease Discount Rate 1% Increase
(4.0%) (5.0%) (6.0%)
Net pension liability $662,503 $522,215 $389,017
76
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
J. PENSION PLAN FIDUCIARY NET POSITION
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.
K. PENSION EXPENSE AND DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED
INFLOWS OF RESOURCES RLEATED TO PENSIONS
For the year ended December 31, 2016, the City recognized pension expense of $166,607, including
$177,831 as pension expense (and grant revenue) for the State of Minnesota’s on-behalf
contribution to the plan. At December 31, 2016, the City reported deferred outflows of resources
and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual economic experience $ - $3,196
Changes in actuarial assumptions - 162
Difference between projected and
actual investment earnings 77,894 -
Total $77,894 $3,358
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
2017 $29,026
2018 29,026
2019 29,030
2020 (12,546)
2021 -
Thereafter -
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CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
L. TOTAL PENSION EXPENSE
Pension expense recognized by the City for all pension plans for the fiscal year ended December 31,
2016 is as follows:
GERF (Note 8)$769,866
PEPFF (Note 8)143,333
Fire Relief 166,607
Total $1,079,806
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.
78
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
C. PARTICIPANTS
As of the January 1, 2014 actuarial valuation, participants consisted of:
Retirees and beneficiaries currently
purchasing health insurance through the City 1
Active employees 60
Total 61
Participating employers 1
D. FUNDING POLICY
The additional cost of using a blended rate for actives and retirees is currently funded on a pay-as-you-
go basis. The City Council may change the funding policy at any time.
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, 2016, was calculated as follows:
Annual required contribution (ARC)$13,175
Interest on net OPEB obligation 1,224
Adjustment to ARC (1,770)
Annual OPEB cost 12,629
Contributions made during the year (9,182)
Increase (decrease) in net OPEB obligation 3,447
Net OPEB obligation - beginning of year 30,603
Net OPEB obligation - end of year $34,050
For governmental activities, the net OPEB obligation is generally liquidated by the General Fund.
79
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net
OPEB obligation for the previous three years was as follows:
Percentage of
Fiscal Year Annual OPEB Employer Annual OPEB Cost Net OPEB
Ended Cost Contributions Contributed Obligation
December 31, 2014 $12,823 $7,080 55.2%$25,531
December 31, 2015 12,719 7,647 60.1%30,603
December 31, 2016 12,629 9,182 72.7%34,050
F. FUNDED STATUS AND FUNDING PROGRESS
The City currently has no assets that have been irrevocably deposited in a trust for future health
benefits, therefore, the actuarial value of assets is zero. The funded status of the plan was as follows:
Unfunded
Actuarial Actuarial UAAL as a
Actuarial Actuarial Accrued Accrued Funded Covered Percentage of
Valuation Value of Assets Liability (AAL)* Liability (UAAL) Ratio Payroll Covered Payroll
Date (a) (b) (b-a) (a/b) (c) ( (b-a) / c)
January 1, 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 pay cost method was used.
The actuarial assumptions included a 4.0% investment rate of return (net of administrative expenses)
80
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
and an annual health care cost trend rate of 7.5% for 2016, 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, 2016 was
30 years.
Note 11 INTERFUND LOANS AND TRANSFERS
Amounts reported as interfund loan receivable/payable at December 31, 2016 are as follows:
Interfund Interfund
Loan Receivable Loan Payable
Major Funds:
Revolving Assessment Fund $564,892 $ -
Water Fund 264,772 1,264,892
Nonmajor Funds 700,000 264,772
Total $1,529,664 $1,529,664
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 $104,025 of repayments in 2016 and $110,266 is expected to be repaid in 2017.
During 2015, the City adopted resolution 2015-15 authorizing an interfund loan to finance construction of Well
#15. 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. There were $163,446 of repayments in
2016 and $192,175 is expected to be repaid in 2017.
Interfund transfers made during 2016 are summarized as follows:
Transfers In Transfers Out
Major Funds:
General Fund $ - $421,281
Revolving Assessment Fund 720,337 28,834
Water Fund 72,286 204,312
Sewer Fund - 107,976
Surface Water Management Fund - 63,767
Nonmajor Funds 627,546 593,999
Total $1,420,169 $1,420,169
$907,086 of interfund transfers were made to allocate financial resources to funds that received benefit from
services provided by another fund. These transfers are considered routine and consistent with previous
81
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
practices. Additionally, a $475,000 transfer was made from the 2008A bond fund to the 2016A refunding bond
fund as part of the crossover refunding transaction. Finally, a capital asset with a net book value of $38,083
was transferred from the Sewer Fund to the Water Fund.
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, 2016, the outstanding conduit debt is as follows:
Bonds Original 12/31/16 Maturity
Project Name Issued Principal Principal Date
St. Hubert Catholic Community, Series 2007 10/07 5,942,140 3,018,187 2027
Presbyterian Homes, Series 2014B 06/14 9,300,000 8,410,366 2034
Note 13 DEFICIT FUND BALANCES
The City has a deficit fund balance of $264,772 in the Transit Station Assessment Capital Project Fund at
December 31, 2016. The deficit will be eliminated through special assessment collections.
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.
82
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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, 2016.
E. TAX ABATEMENTS – PAY-AS-YOU-GO TAX INCREMENT
The City occasionally provides tax abatements pursuant to Minnesota Statutes 469.174 to 469.1794
(Tax Increment Financing) through a pay-as-you-go note program. Tax increment financing (TIF) can
be used to encourage private development, redevelopment, renovation and renewal, growth in low-to-
moderate-income housing, and economic development within the City. TIF captures the increase in
tax capacity and property taxes from development or redevelopment to provide funding for the related
project.
As of December 31, 2016, there were no outstanding pay-as-you-go notes.
F. COMMITTED CONTRACTS
At December 31, 2016, the City had commitments of $15,398,704 for uncompleted construction
contracts. In addition, the City entered into construction contracts during 2017 totaling $4,443,998.
83
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Note 15 FUND BALANCE
A. CLASSIFICATIONS
Definitions of fund balance classifications are included in Note 1P. At December 31, 2016, a
summary of the governmental fund balance classifications are as follows:
Revolving Other
General Assessment TH 101 Governmental
Fund Fund Improvements Funds Total
Nonspendable:
Prepaid items $25,832 $ - $ - $ - $25,832
Contract for deed receivable - - - - -
Total nonspendable 25,832 0 0 0 25,832
Restricted for:
Debt service - - - 6,604,268 6,604,268
Park improvements - - - 1,505,784 1,505,784
Tax increment purposes - - - 399,178 399,178
CATV - public education - - - 112,161 112,161
Public safety - fire - - - 52,590 52,590
Total restricted 0 0 0 8,673,981 8,673,981
Assigned for:
Capital improvements - 2,422,959 2,798 3,428,711 5,854,468
Cable communications - - - 324,564 324,564
Cemetery operations - - - 34,411 34,411
Debt service reserve - - - 1,593,515 1,593,515
Total assigned 0 2,422,959 2,798 5,381,201 7,806,958
Unassigned 5,286,880 - - (264,772) 5,022,108
Total $5,312,712 $2,422,959 $2,798 $13,790,410 $21,528,879
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, 2016,
the fund balance of the General Fund exceeded this level.
84
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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, 2016 totaled $182,378. Terms of each lease outstanding at year end are as follows:
Lessee Terms Current Term
Sprint $25,082 per year with 3% annual increases 8/1/06 - 7/31/21
Sprint $23,486 per year with 3% annual increases 12/1/05 - 11/30/20
Verizon $2,068 per month 8/1/13 - 4/30/18
Nextel West Corp. $22,926 per year with 3% annual increases 12/1/14 - 11/30/19
T-Mobile $2,153 per month with 3% annual increases 11/1/05 - 10/31/20
T-Mobile $22,258 per year with 3% annual increases 1/1/14 - 12/31/19
StoneBridge/Nextera 5% of gross revenues associated with equipment used on property 4/1/06 - 12/31/19
Cingular/AT&T $2,029 per month with 3% annual increases 8/1/12 - 7/31/2022
Note 17 RECENTLY ISSUED ACCOUNTING STANDARDS
The Governmental Accounting Standards Boards (GASB) recently approved the following statements which
were not implemented for these financial statements:
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 Postemployment 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 Postemployment Benefits Other Than Pensions.
The provisions in Statement 75 are effective for fiscal years beginning after June 15, 2017.
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.
Statement No. 82 Pension Issues – an amendment of GASB Statement No. 67, No. 68 and No. 73. The
provisions of this Statement are effective for reporting periods beginning after June 15, 2016, except for
the requirements of this Statement for the selection of assumptions in a circumstance in which an
employer’s pension liability is measured as of a date other than the employer’s most recent fiscal year-end.
In that circumstance, the requirements for the selection of assumptions are effective for that employer in
the first reporting period in which the measurement date of the pension liability is on or after June 15,
2017.
85
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Statement No. 83 Certain Asset Retirement Obligations. The provisions of this Statement are effective for
reporting periods beginning after June 15, 2018.
Statement No. 84 Fiduciary Activities. The provisions of this Statement are effective for reporting periods
beginning after December 15, 2018.
Statement No. 85 Omnibus 2017. The provisions of this Statement are effective for reporting periods
beginning after June 15, 2017.
Statement No. 86 Certain Debt Extinguishment Issues. The provisions of this Statement are effective for
reporting periods beginning after June 15, 2017.
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 SUBSEQUENT EVENT
On February 1, 2017, the City issued $10,000,000 of General Obligation Water Revenue Bonds, Series 2017A,
with an average coupon rate of 3.13%. The bonds were issued to provide funding for construction of the West
Water Treatment Plant.
86
REQUIRED SUPPLEMENTARY INFORMATION
87
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 1 of 6
For The Year Ended December 31, 2016
With Comparative Actual Amounts For The Year Ended December 31, 2015
2015
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues:
General property taxes $8,052,431 $8,052,431 $7,995,056 ($57,375) $7,805,301
Excess tax increment received - - 33,069 33,069 20,503
Total general property taxes 8,052,431 8,052,431 8,028,125 (24,306) 7,825,804
Licenses and permits:
Licenses - general government 5,300 5,300 3,000 (2,300) 3,600
Licenses - public safety 97,500 97,500 92,721 (4,779) 92,190
Permits - public safety 879,500 879,500 994,456 114,956 1,141,363
Permits - public works 33,000 33,000 43,676 10,676 49,965
Permits - community development 6,500 6,500 8,925 2,425 8,885
Total licenses and permits 1,021,800 1,021,800 1,142,778 120,978 1,296,003
Intergovernmental:
State aid - police - public safety 140,000 140,000 149,504 9,504 134,909
State aid - fire - public safety 160,000 160,000 189,502 29,502 186,517
PERA - public safety 20,000 20,000 19,467 (533) 19,467
Other 45,000 45,000 48,034 3,034 43,132
Total intergovernmental 365,000 365,000 406,507 41,507 384,025
Charges for services:
General government 76,550 76,550 76,205 (345) 76,714
Public safety 6,000 6,000 6,282 282 7,384
Public works 70,000 70,000 65,917 (4,083) 40,733
Park and recreation 425,550 425,550 454,583 29,033 444,942
Community development 28,600 28,600 19,582 (9,018) 27,794
Total charges for services 606,700 606,700 622,569 15,869 597,567
Fines and forfeits:
Public safety 111,000 111,000 114,367 3,367 117,189
Investment earnings 45,000 45,000 33,578 (11,422) 62,861
Net change in fair value of investments - - (6,498) (6,498) (13,292)
Contributions and donations:
General government 500 500 600 100 600
Public safety 200 200 300 100 400
Park and recreation 22,569 22,569 23,375 806 25,400
Total contributions and donations 23,269 23,269 24,275 1,006 26,400
Refunds and reimbursements:
General government 4,500 4,500 10,268 5,768 5,281
Public safety 10,000 10,000 8,050 (1,950) 7,150
Public works 50,500 50,500 40,030 (10,470) 42,438
Park and recreation 10,000 10,000 2,456 (7,544) 8,689
Total refunds and reimbursements 75,000 75,000 60,804 (14,196) 63,558
Other:
General government 179,800 179,800 189,487 9,687 184,576
Public safety 6,000 6,000 4,067 (1,933) 5,553
Public works - - 1,646 1,646 -
Total other 185,800 185,800 195,200 9,400 190,129
Total revenues 10,486,000 10,486,000 10,621,705 135,705 10,550,244
2016
Budgeted Amounts
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CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 6
For The Year Ended December 31, 2016
With Comparative Actual Amounts For The Year Ended December 31, 2015
2015
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Expenditures:
General government:
Legislative:
Current:
Personal services $32,200 $32,200 $30,821 $1,379 $30,538
Contractual services 71,600 71,600 80,208 (8,608) 70,105
Total legislative 103,800 103,800 111,029 (7,229) 100,643
Administrative office:
Current:
Personal services 443,200 443,200 487,834 (44,634) 468,877
Materials and supplies - - - - 17
Contractual services 52,400 52,400 61,290 (8,890) 54,558
Total administrative office 495,600 495,600 549,124 (53,524) 523,452
Finance:
Current:
Personal services 275,500 275,500 281,815 (6,315) 268,219
Materials and supplies 200 200 - 200 -
Contractual services 65,000 65,000 41,269 23,731 69,774
Total finance 340,700 340,700 323,084 17,616 337,993
Election:
Current:
Personal services 22,500 22,500 29,581 (7,081) -
Materials and supplies 3,500 3,500 731 2,769 -
Contractual services 12,200 12,200 14,559 (2,359) -
Total election 38,200 38,200 44,871 (6,671) 0
Legal:
Current:
Contractual services 168,000 168,000 187,471 (19,471) 167,264
Property assessment:
Current:
Contractual services 134,000 134,000 146,371 (12,371) 138,862
M.I.S.:
Current:
Personal services 199,700 199,700 161,476 38,224 193,918
Materials and supplies 32,900 32,900 21,843 11,057 23,812
Contractual services 47,200 47,200 54,777 (7,577) 43,930
Total M.I.S. 279,800 279,800 238,096 41,704 261,660
2016
Budgeted Amounts
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, 2016
With Comparative Actual Amounts For The Year Ended December 31, 2015
2015
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Expenditures: (continued)
General government: (continued)
City hall:
Current:
Personal services $78,300 $78,300 $79,795 ($1,495) $76,058
Materials and supplies 40,200 40,200 39,896 304 42,823
Contractual services 276,000 276,000 255,629 20,371 278,218
Total City hall 394,500 394,500 375,320 19,180 397,099
Library:
Current:
Materials and supplies 4,500 4,500 2,105 2,395 1,584
Contractual services 108,500 108,500 109,849 (1,349) 108,363
Total library 113,000 113,000 111,954 1,046 109,947
Total general government 2,067,600 2,067,600 2,087,320 (19,720) 2,036,920
Public safety:
Police:
Current:
Personal services 73,100 73,100 30,597 42,503 71,743
Materials and supplies 3,000 3,000 475 2,525 2,561
Contractual services 1,734,000 1,734,000 1,685,775 48,225 1,644,130
Total police 1,810,100 1,810,100 1,716,847 93,253 1,718,434
Fire department:
Current:
Personal services 696,900 696,900 687,197 9,703 719,516
Materials and supplies 48,900 48,900 34,527 14,373 42,120
Contractual services 123,100 123,100 113,488 9,612 116,528
Total fire department 868,900 868,900 835,212 33,688 878,164
Code enforcement:
Current:
Personal services 638,200 638,200 687,628 (49,428) 639,690
Materials and supplies 6,600 6,600 5,742 858 4,886
Contractual services 13,000 13,000 8,921 4,079 11,601
Total code enforcement 657,800 657,800 702,291 (44,491) 656,177
Animal control:
Current:
Personal services 58,600 58,600 51,495 7,105 49,363
Materials and supplies 2,300 2,300 1,797 503 853
Contractual services 7,600 7,600 5,062 2,538 5,161
Total animal control 68,500 68,500 58,354 10,146 55,377
Total public safety 3,405,300 3,405,300 3,312,704 92,596 3,308,152
2016
Budgeted Amounts
90
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 4 of 6
For The Year Ended December 31, 2016
With Comparative Actual Amounts For The Year Ended December 31, 2015
2015
Actual Variance with Actual
Expenditures: (continued) Original Final Amounts Final Budget Amounts
Public works:
Engineering:
Current:
Personal services $621,700 $621,700 $629,262 ($7,562) $614,012
Materials and supplies 800 800 843 (43) 1,964
Contractual services 28,200 28,200 24,389 3,811 24,878
Total engineering 650,700 650,700 654,494 (3,794) 640,854
Street maintenance:
Current:
Personal services 749,500 749,500 730,609 18,891 689,264
Materials and supplies 123,400 123,400 95,257 28,143 107,399
Contractual services 30,900 30,900 27,713 3,187 22,591
Total street maintenance 903,800 903,800 853,579 50,221 819,254
Street lighting:
Current:
Materials and supplies 3,000 3,000 2,785 215 454
Contractual services 348,000 348,000 356,777 (8,777) 353,522
Total street lighting 351,000 351,000 359,562 (8,562) 353,976
Fleet department:
Current:
Personal services 277,400 277,400 279,669 (2,269) 267,119
Materials and supplies 207,200 207,200 116,830 90,370 182,596
Contractual services 71,100 71,100 60,701 10,399 62,813
Total City garage 555,700 555,700 457,200 98,500 512,528
Total public works 2,461,200 2,461,200 2,324,835 136,365 2,326,612
Parks and recreation:
Parks and recreation commission:
Current:
Materials and supplies 100 100 - 100 12
Contractual services 400 400 325 75 3,174
Total parks and recreation commission 500 500 325 175 3,186
Parks and recreation administration:
Current:
Personal services 216,600 216,600 209,634 6,966 146,818
Materials and supplies 200 200 - 200 153
Contractual services 5,900 5,900 4,849 1,051 5,150
Total parks and recreation
administration 222,700 222,700 214,483 8,217 152,121
Recreation center:
Current:
Personal services 217,700 217,700 203,502 14,198 205,293
Materials and supplies 31,000 31,000 16,056 14,944 20,315
Contractual services 88,700 88,700 100,314 (11,614) 80,196
Total recreation center 337,400 337,400 319,872 17,528 305,804
2016
Budgeted Amounts
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, 2016
With Comparative Actual Amounts For The Year Ended December 31, 2015
2015
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Expenditures: (continued)
Parks and recreation: (continued)
Senior citizen center:
Current:
Personal services $51,700 $51,700 $51,889 ($189) $50,317
Materials and supplies 3,300 3,300 2,539 761 4,631
Contractual services 21,800 21,800 31,157 (9,357) 28,623
Total senior citizen center 76,800 76,800 85,585 (8,785) 83,571
Recreation programs:
Current:
Personal services 190,300 190,300 188,269 2,031 178,426
Materials and supplies 20,200 20,200 19,230 970 22,819
Contractual services 101,200 101,200 108,630 (7,430) 96,064
Total recreation programs 311,700 311,700 316,129 (4,429) 297,309
Self-supporting programs:
Current:
Personal services 34,300 34,300 33,164 1,136 30,078
Materials and supplies 3,200 3,200 4,142 (942) 4,255
Contractual services 20,000 20,000 11,766 8,234 11,315
Total self-supporting programs 57,500 57,500 49,072 8,428 45,648
Lake Ann Park operations:
Current:
Personal services 10,300 10,300 10,096 204 10,909
Materials and supplies 10,200 10,200 8,633 1,567 9,512
Contractual services 42,600 42,600 46,869 (4,269) 44,488
Total Lake Ann Park operations 63,100 63,100 65,598 (2,498) 64,909
Park maintenance:
Current:
Personal services 803,600 803,600 821,629 (18,029) 832,508
Materials and supplies 78,100 78,100 76,369 1,731 84,016
Contractual services 90,000 90,000 74,880 15,120 68,643
Total park maintenance 971,700 971,700 972,878 (1,178) 985,167
Downtown maintenance:
Current:
Contractual services - - 41 (41) 2,010
Recreation sports:
Current:
Personal services 27,500 27,500 24,571 2,929 24,632
Materials and supplies 8,800 8,800 8,162 638 7,696
Contractual services 300 300 - 300 -
Total recreation sports 36,600 36,600 32,733 3,867 32,328
Total parks and recreation 2,078,000 2,078,000 2,056,716 21,284 1,972,053
2016
Budgeted Amounts
92
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 6 of 6
For The Year Ended December 31, 2016
With Comparative Actual Amounts For The Year Ended December 31, 2015
2015
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Expenditures: (continued)
Community development:
Planning commission:
Current:
Personal services $ - $ - $ - $ - $163
Materials and supplies 200 200 - 200 -
Contractual services 1,100 1,100 1,160 (60) 3,418
Total planning commission 1,300 1,300 1,160 140 3,581
Planning administration:
Current:
Personal services 425,300 425,300 427,035 (1,735) 421,922
Materials and supplies 400 400 119 281 82
Contractual services 11,500 11,500 7,761 3,739 23,705
Total planning administration 437,200 437,200 434,915 2,285 445,709
Senior facility commission:
Current:
Personal services 25,700 25,700 26,403 (703) 25,430
Contractual services 9,700 9,700 9,329 371 10,506
Total senior facility commission 35,400 35,400 35,732 (332) 35,936
Total community development 473,900 473,900 471,807 2,093 485,226
Total expenditures 10,486,000 10,486,000 10,253,382 232,618 10,128,963
Revenues over expenditures 0 0 368,323 368,323 421,281
Other financing sources (uses):
Sale of capital assets - - 35,324 35,324 -
Transfers out - - (421,281) (421,281) (700,000)
Total other financing sources (uses) 0 0 (385,957) (385,957) (700,000)
Net change in fund balance $0 $0 (17,634) ($17,634) (278,719)
Fund balance - January 1 5,330,346 5,609,065
Fund balance - December 31 $5,312,712 $5,330,346
Budgeted Amounts
2016
93
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 11
SCHEDULE OF FUNDING PROGRESS - RETIREE HEALTH PLAN
For The Year Ended December 31, 2016
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)(a/b)(c) ( (b-a) / c)
January 1, 2008 $0 $52,268 $52,268 0.0% $4,180,235 1.3%
January 1, 2011 $0 $89,875 $89,875 0.0% $4,299,466 2.1%
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 Statement 12
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY -
GENERAL EMPLOYEES RETIREMENT FUND
For The Year Ended December 31, 2016
City's
Proportionate City's
Share of the Proportionate Plan
State's Net Share Fiduciary
Proportionate Pension Liability of the Net
City's City's Share and the State's Net Pension Position
Proportionate Proportionate (Amount) Proportionate Liability as a
Share Share of the Net Share of the Net as a Percentage
(Percentage) (Amount) Pension Pension Percentage of the
of the of the Net Liability Liability of its Total
Measurement Fiscal Year Net Pension Pension Associated Associated with Covered Covered Pension
Date Ending Liability Liability (a) with City (b) City (a+b) Payroll (c) Payroll ((a+b)/c) Liability
June 30, 2015 December 31, 2015 0.0791% $4,099,373 $0 $4,099,373 $4,651,703 88.1% 78.2%
June 30, 2016 December 31, 2016 0.0759% 6,162,704 80,496 6,243,200 4,708,444 132.6% 68.9%
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, 2016
Statutorily Contributions in Contribution Contributions as a
Required Relation to the Deficiency Covered Percentage of
Fiscal Year Contribution Statutorily Required (Excess) Payroll Covered-Employee
Ending (a) Contribution (b) (a-b) (c) Payroll (b/c)
December 31, 2015 $346,881 $346,881 $0 $4,625,080 7.5%
December 31, 2016 358,611 358,611 - 4,781,489 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 Statement 14
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY -
PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Year Ended December 31, 2016
Proportionate Share
Proportionate of the Net Pension Plan Fiduciary
Proportion Share (Amount) Liability as a Net Position as
(Percentage) of of the Net Percentage of its a Percentage
Measurement Fiscal Year the Net Pension Pension Covered Covered of the Total
Date Ending Liability Liability (a) Payroll (b) Payroll (a/b) Pension Liability
June 30, 2015 December 31, 2015 0.0200% $227,247 $180,370 126.0%86.6%
June 30, 2016 December 31, 2016 0.0190% 762,503 186,408 409.1%63.9%
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, 2016
Statutorily Contributions in Contribution Contributions as a
Required Relation to the Deficiency Covered Percentage of
Fiscal Year Contribution Statutorily Required (Excess) Payroll Covered
Ending (a) Contribution (b) (a-b) (c) Payroll (b/c)
December 31, 2015 $29,647 $29,647 $0 $183,006 16.2%
December 31, 2016 30,790 30,790 - 190,064 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, 2016
Fiscal year ending and measurement date December 31, 2016 December 31, 2015
Total pension liability:
Service cost $88,924 $86,369
Interest 128,235 118,909
Changes of benefit terms - 279,202
Differences between expected and actual experience - (5,328)
Changes of assumptions (203) -
Benefit payments, including refunds of employee contributions (113,883) (470,743)
Net change in total pension liability 103,073 8,409
Total pension liability - beginning 2,532,712 2,524,303
Total pension liability - ending (a) $2,635,785 $2,532,712
Plan fiduciary net position:
Contributions - employer $ - $37,571
Contributions - State of Minnesota 177,831 177,784
Contributions - employee - -
Net investment income 158,581 (105,958)
Benefit payments, including refunds of employee contributions (113,883) (470,743)
Administrative expense (16,472) (7,225)
Net change in plan fiduciary net position 206,057 (368,571)
Plan fiduciary net position - beginning 1,907,513 2,276,084
Plan fiduciary net position - ending (b) $2,113,570 $1,907,513
Net pension liability - ending (a) - (b)$522,215 $625,199
Plan fiduciary net position as a percentage of the total pension liability 80.2%75.3%
Covered payroll*$0 $0
Net pension liability as a percentage of covered payroll*Not applicable 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, 2016
Actuarially Contribution Contributions
Determined Deficiency As a Percentage
Fiscal Year Contribution Employer State of MN (Excess) Covered of Covered
Ending (a) Contributions (b) Contributions (c) (a-b-c) Payroll Payroll
December 31, 2015 $142,501 $37,571 $174,784 ($69,854) * *
December 31, 2016 171,760 - 176,831 (5,071) * *
*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.
Contributions in Relation to the
Actuarially Determined Contribution
100
CITY OF CHANHASSEN, MINNESOTA
NOTES TO RSI
December 31, 2016
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 Employees Retirement Fund
2016 Changes in Actuarial Assumptions:
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035
and 2.5% per year thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was
changed from 7.9% to 7.5%.
Other assumptions were changed pursuant to the experience study dated June 30, 2015. The
assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25%
for payroll growth and 2.50% for inflation.
PERA – Public Employees Police and Fire Fund
2016 Changes in Actuarial Assumptions:
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037
and 2.5% per year thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate
changed from 7.9% to 5.6%.
The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to
3.25% for payroll growth and 2.50% for inflation.
Single Employer – Fire Relief Association
Valuation date – actuarially determined contribution rates are calculated as of January 1 every other year,
which is the same date as the beginning of the fiscal year beginning in which contributions are reported.
2016 Changes in Actuarial Assumptions:
As of December 31, 2016, the mortality assumption was changed to the RP-2014 Blue Collar
Mortality with fully generational improvements from 2006 based on assumptions from the Social
Security Administration’s 2016 trustees report.
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
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104
NONMAJOR GOVERNMENTAL FUNDS
105
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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 Statement 18
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2016
With Comparative Totals For December 31, 2015
Special Debt Capital
Revenue Service Project 2016 2015
Assets:
Cash and investments $471,946 $2,761,824 $3,759,735 $6,993,505 $8,847,939
Cash with escrow agent - 5,414,798 - 5,414,798 -
Accrued interest receivable 1,649 9,182 15,282 26,113 58,817
Due from other governmental units 249 - 38,020 38,269 206,499
Accounts receivable - net 53,232 - 143,336 196,568 137,542
Property taxes receivable - 11,490 7,977 19,467 12,697
Prepaid items - - - - 836
Interfund loan receivable - - 700,000 700,000 700,000
Contract for deed receivable - - 1,252,869 1,252,869 1,282,486
Special assessments receivable - 328,464 351,043 679,507 376,813
Total assets $527,076 $8,525,758 $6,268,262 $15,321,096 $11,623,629
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $ - $ - $119,781 $119,781 $87,801
Due to other governmental units - - 25,408 25,408 -
Salaries payable 3,350 - - 3,350 2,870
Contracts payable - - 351,203 351,203 13,461
Due to other funds - - - - 72,271
Interfund loan payable - - 264,772 264,772 -
Unearned revenue - - 81,629 81,629 94,873
Total liabilities 3,350 0 842,793 846,143 271,276
Deferred inflows of resources:
Unavailable revenue - 327,975 356,568 684,543 378,382
Fund balance:
Nonspendable - - - - 1,253,705
Restricted 164,751 6,604,268 1,904,962 8,673,981 5,824,354
Assigned 358,975 1,593,515 3,428,711 5,381,201 3,899,624
Unassigned - - (264,772) (264,772) (3,712)
Total fund balance 523,726 8,197,783 5,068,901 13,790,410 10,973,971
Total liabilities, deferred inflows
of resources, and fund balance $527,076 $8,525,758 $6,268,262 $15,321,096 $11,623,629
Total Nonmajor
Governmental Funds
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, 2016
With Comparative Totals For The Year Ended December 31, 2015
Special Debt Capital
Revenue Service Project 2016 2015
Revenues:
General property taxes $ - $1,287,492 $893,000 $2,180,492 $2,253,998
Tax increment collections - - 111,761 111,761 200,338
Licenses and permits - - 511,080 511,080 269,897
Intergovernmental - - 426,474 426,474 2,978,209
Special assessments - 44,360 146,505 190,865 787,164
Charges for services 219,932 4,039 - 223,971 201,976
Investment earnings 3,476 33,800 32,194 69,470 130,658
Net change in fair value of investments (673) (3,742) (6,231) (10,646) (27,626)
Contributions and donations 36,527 - - 36,527 51,775
Refunds and reimbursements 249 - 76,209 76,458 22,396
Other - - 80,867 80,867 77,493
Total revenues 259,511 1,365,949 2,271,859 3,897,319 6,946,278
Expenditures:
Current:
General government 172,777 3,891 215,283 391,951 354,275
Public safety 16,670 - 383,772 400,442 123,389
Public works - - 761,167 761,167 2,063,753
Parks and recreation - - 199,598 199,598 84,929
Community development - - 47,875 47,875 30,156
Capital outlay:
General government - - 62,713 62,713 -
Public safety 5,900 - 308,104 314,004 122,143
Public works - - 95,757 95,757 1,733,737
Parks and recreation - - 1,153,763 1,153,763 467,333
Decertification of TIF district - - 139,594 139,594 -
Debt service:
Principal - 1,795,000 - 1,795,000 1,810,000
Interest and paying agent fees - 483,533 - 483,533 439,470
Total expenditures 195,347 2,282,424 3,367,626 5,845,397 7,229,185
Revenues over (under) expenditures 64,164 (916,475) (1,095,767) (1,948,078) (282,907)
Other financing sources (uses):
Sale of capital assets - - 54,994 54,994 41,015
Bonds issued - 4,805,000 - 4,805,000 -
Bonds premium - 239,773 - 239,773 -
Transfers in - 475,000 152,546 627,546 971,240
Transfers out - (475,000) (118,999) (593,999) (679,891)
Total other financing sources (uses)0 5,044,773 88,541 5,133,314 332,364
Net change in fund balance 64,164 4,128,298 (1,007,226) 3,185,236 49,457
Fund balance - January 1 459,562 4,069,485 6,076,127 10,605,174 10,924,514
Fund balance - December 31 $523,726 $8,197,783 $5,068,901 $13,790,410 $10,973,971
Reconciliation of beginning fund balance to prior year ending fund balance:
Prior year ending fund balance reported above $10,973,971
Reclassification of Transit Station Assessment Fund fund balance, now presented as a nonmajor fund (368,797)
Fund balance - January 1, 2016 as reported on this statement $10,605,174
Total Nonmajor
Governmental Funds
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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.
111
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING BALANCE SHEET Statement 20
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2016
With Comparative Totals For December 31, 2015
201
Contribution
Fund
202 Cemetery
Fund
210 CATV
Fund
2016 2015
Assets:
Cash and investments $47,708 $34,313 $389,925 $471,946 $395,320
Accrued interest receivable 156 98 1,395 1,649 2,593
Due from other governmental units - - 249 249 -
Accounts receivable - net 4,726 - 48,506 53,232 66,661
Prepaid items - - - - 276
Total assets $52,590 $34,411 $440,075 $527,076 $464,850
Liabilities and Fund Balance
Liabilities:
Accounts payable $ - $ - $ - $ - $2,418
Salaries payable - - 3,350 3,350 2,870
Total liabilities 0 0 3,350 3,350 5,288
Fund balance:
Nonspendable - - - - 276
Restricted 52,590 - 112,161 164,751 154,810
Assigned - 34,411 324,564 358,975 304,476
Total fund balance 52,590 34,411 436,725 523,726 459,562
Total liabilities and fund balance $52,590 $34,411 $440,075 $527,076 $464,850
Total Nonmajor Special
Revenue Funds
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, 2016
With Comparative Totals For The Year Ended December 31, 2015
201
Contribution
Fund
202 Cemetery
Fund
210 CATV
Fund
2016 2015
Revenues:
Charges for services $ - $25,850 $194,082 $219,932 $201,976
Investment earnings 329 207 2,940 3,476 5,759
Net change in fair value of investments (64) (40) (569) (673) (1,218)
Contributions and donations 36,527 - - 36,527 39,620
Refunds and reimbursements - - 249 249 -
Total revenues 36,792 26,017 196,702 259,511 246,137
Expenditures:
Current:
General government - 1,105 171,672 172,777 142,114
Public safety 16,670 - - 16,670 39,618
Capital outlay:
Public safety 5,900 - - 5,900 9,462
Total expenditures 22,570 1,105 171,672 195,347 191,194
Revenues over expenditures 14,222 24,912 25,030 64,164 54,943
Fund balance - January 1 38,368 9,499 411,695 459,562 404,619
Fund balance - December 31 $52,590 $34,411 $436,725 $523,726 $459,562
Total Nonmajor Special
Revenue Funds
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.
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 Statement 22
NONMAJOR DEBT SERVICE FUNDS
December 31, 2016
With Comparative Totals For December 31, 2015
300 Permanent
Revolving Debt
367 2008A G.O.
Public Works
Facility Bonds
368 2009A G.O.
Refunding
Bonds
369 2010A G.O.
Library
Refunding
Bonds
370 2016A G.O.
Refunding
Bonds
2016 2015
Assets:
Cash and investments $815,924 $513,930 $768,355 $663,530 $85 $2,761,824 $4,042,261
Cash with escrow agent - - - - 5,414,798 5,414,798 -
Accrued interest receivable 2,991 1,122 3,608 1,460 1 9,182 20,106
Property taxes receivable - 5,301 2,148 4,041 - 11,490 7,118
Special assessments receivable 17,342 - 311,122 - - 328,464 369,027
Total assets $836,257 $520,353 $1,085,233 $669,031 $5,414,884 $8,525,758 $4,438,512
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities: $ - $ - $ - $ - $ - $ - $ -
Deferred inflows of resources:
Unavailable revenue 16,853 - 311,122 - - 327,975 369,027
Fund balance:
Restricted - 520,353 - 669,031 5,414,884 6,604,268 3,297,264
Assigned 819,404 - 774,111 - - 1,593,515 772,221
Total fund balance 819,404 520,353 774,111 669,031 5,414,884 8,197,783 4,069,485
Total liabilities, deferred inflows
of resources, and fund balance $836,257 $520,353 $1,085,233 $669,031 $5,414,884 $8,525,758 $4,438,512
Total Nonmajor Debt
Service Funds
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, 2016
With Comparative Totals For The Year Ended December 31, 2015
300 Permanent
Revolving
Debt
367 2008A
G.O. Public
Works Facility
Bonds
368 2009A
G.O.
Refunding
Bonds
369 2010A
G.O. Library
Refunding
Bonds
370 2016A
G.O.
Refunding
Bonds
2016 2015
Revenues:
General property taxes $ - $594,000 $240,700 $452,792 $ - $1,287,492 $1,268,998
Special assessments 38,062 - 6,298 - - 44,360 787,164
Charges for services 4,039 - - - - 4,039 -
Investment earnings 6,301 2,364 7,602 3,075 14,458 33,800 44,664
Net change in fair value of investments (1,219) (457) (1,471) (595) - (3,742) (9,443)
Total revenues 47,183 595,907 253,129 455,272 14,458 1,365,949 2,091,383
Expenditures:
Current:
General government - - 3,891 - - 3,891 7,000
Debt service:
Principal - 295,000 1,155,000 345,000 - 1,795,000 1,810,000
Interest and paying agent fees - 261,569 26,625 75,992 119,347 483,533 439,470
Total expenditures 0 556,569 1,185,516 420,992 119,347 2,282,424 2,256,470
Revenues over (under) expenditures 47,183 39,338 (932,387) 34,280 (104,889) (916,475) (165,087)
Other financing sources (uses):
Bonds issued - - - - 4,805,000 4,805,000 -
Bond premium - - - - 239,773 239,773 -
Transfers in - - - - 475,000 475,000 673,373
Transfers out - (475,000) - - - (475,000) -
Total other financing sources (uses) 0 (475,000) 0 0 5,519,773 5,044,773 673,373
Net change in fund balance 47,183 (435,662) (932,387) 34,280 5,414,884 4,128,298 508,286
Fund balance - January 1 772,221 956,015 1,706,498 634,751 - 4,069,485 3,561,199
Fund balance - December 31 $819,404 $520,353 $774,111 $669,031 $5,414,884 $8,197,783 $4,069,485
Total Nonmajor Debt
Service Funds
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.
413 Transit Station Assessment Fund – Accounts for the interfund loan from the Water Fund to
fund costs associated with the redevelopment of the Dinner Theater Transit Station in TIF #10,
and for the repayment of the special assessment to repay those costs.
420 Street Pavement Management – Accounts for sealcoating costs on local streets.
422 Old Public Works Building – Accounts for the sale of the old public works building and the
related contract for deed receivable.
461 Gateway Place TIF #9, 462 Downtown Transit Station TIF #10, 480 Frontier Development
#2 TIF #11, 491 Entertainment TIF #4, and 494 North Bay TIF #5 – 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 Statement 24
NONMAJOR CAPITAL PROJECT FUNDS Page 1 of 2
December 31, 2016
With Comparative Totals For December 31, 2015
410 Park 420 Street
400 Capital Acquisition and 413 Transit Station Pavement
Replacement Fund Development Assessment Fund Management
Assets:
Cash and investments $515,777 $1,810,535 $ - $351,853
Accrued interest receivable 1,873 7,235 - 1,821
Due from other governmental units 360 - - 12,430
Accounts receivable - net 143,336 - - -
Property taxes receivable 7,146 - - 831
Prepaid items - - - -
Interfund loan receivable 700,000 - - -
Contract for deed receivable - - - -
Special assessments receivable - - 351,043 -
Total assets $1,368,492 $1,817,770 $351,043 $366,935
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $103,520 $15,298 $ - $464
Due to other governmental units - - - 24,658
Contracts payable 54,515 296,688 - -
Due to other funds - - - -
Interfund loan payable - - 264,772 -
Unearned revenue - - - 80,429
Total liabilities 158,035 311,986 264,772 105,551
Deferred inflows of resources:
Unavailable revenue 5,525 - 351,043 -
Fund balance:
Nonspendable - - - -
Restricted - 1,505,784 - -
Assigned 1,204,932 - - 261,384
Unassigned - - (264,772) -
Total fund balance 1,204,932 1,505,784 (264,772) 261,384
Total liabilities, deferred inflows
of resources, and fund balance $1,368,492 $1,817,770 $351,043 $366,935
121
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2016
With Comparative Totals For December 31, 2015
462 Downtown
422 Old Public 461 Gateway Transit Station
Works Building Place TIF # 9 TIF # 10
Assets:
Cash and investments $214,766 $40,068 $65
Accrued interest receivable 1,098 78 1
Due from other governmental units - - -
Accounts receivable - net - - -
Property taxes receivable - - -
Prepaid items - - -
Interfund loan receivable - - -
Contract for deed receivable 1,252,869 - -
Special assessments receivable - - -
Total assets $1,468,733 $40,146 $66
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $ - $ - $ -
Due to other governmental units - - -
Contracts payable - - -
Due to other funds - - -
Interfund loan payable - - -
Unearned revenue - - -
Total liabilities 0 0 0
Deferred inflows of resources:
Unavailable revenue - - -
Fund balance:
Nonspendable - - -
Restricted - 40,146 66
Assigned 1,468,733 - -
Unassigned - - -
Total fund balance 1,468,733 40,146 66
Total liabilities, deferred inflows
of resources, and fund balance $1,468,733 $40,146 $66
122
Statement 24
Page 2 of 2
605 TH101
491 494 603 Lyman Improvments -
Entertainment North Bay Boulevard Pioneer to Total Nonmajor
TIF # 4 TIF # 5 Improvements Flying Cloud
2016 2015
$109 $357,857 $454,649 $14,056 $3,759,735 $4,410,358
266 1,233 1,677 - 15,282 36,118
- - 25,230 - 38,020 206,499
- - - - 143,336 70,881
- - - - 7,977 5,579
- - - - - 560
- - - - 700,000 700,000
- - - - 1,252,869 1,282,486
- - - - 351,043 7,786
$375 $359,090 $481,556 $14,056 $6,268,262 $6,720,267
$ - $499 $ - $ - $119,781 $85,383
- - - 750 25,408 -
- - - - 351,203 13,461
- - - - - 72,271
- - - - 264,772 -
- - - 1,200 81,629 94,873
0 499 0 1,950 842,793 265,988
- - - - 356,568 9,355
- - - - - 1,253,429
375 358,591 - - 1,904,962 2,372,280
- - 481,556 12,106 3,428,711 2,822,927
- - - - (264,772) (3,712)
375 358,591 481,556 12,106 5,068,901 6,444,924
$375 $359,090 $481,556 $14,056 $6,268,262 $6,720,267
Capital Project Funds
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, 2016
With Comparative Totals For The Year Ended December 31, 2015
410 Park 413 Transit Station 420 Street
400 Capital Acquisition and Assessment Pavement
Replacement Fund Development Fund Management
Revenues:
General property taxes $800,000 $ - $ - $93,000
Tax increment collections - - - -
Licenses and permits - 511,080 - -
Intergovernmental - - - 416,098
Special assessments - - 138,228 8,277
Investment earnings 3,946 15,242 - 3,836
Net change in fair value of investments (764) (2,950) - (742)
Contributions and donations - - - -
Refunds and reimbursements 68,744 3 - 46
Other 3,000 - - -
Total revenues 874,926 523,375 138,228 520,515
Expenditures:
Current:
General government 215,283 - - -
Public safety 383,772 - - -
Public works 28,434 - - 686,539
Parks and recreation 181,694 17,904 - -
Community development - - - -
Capital outlay:
General government 62,713 - - -
Public safety 53,913 - - -
Public works 87,700 - - 8,057
Parks and recreation 214,519 896,610 - 42,634
Decertification of TIF district - - - -
Total expenditures 1,228,028 914,514 0 737,230
Revenues over (under) expenditures (353,102) (391,139)138,228 (216,715)
Other financing sources (uses):
Sale of capital assets 54,994 - - -
Transfers in 120,000 - - -
Transfers out - - (34,203) -
Total other financing sources (uses)174,994 0 (34,203)0
Net change in fund balance (178,108) (391,139)104,025 (216,715)
Fund balance - January 1 1,383,040 1,896,923 (368,797)478,099
Fund balance - December 31 $1,204,932 $1,505,784 ($264,772) $261,384
125
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2016
With Comparative Totals For The Year Ended December 31, 2015
462 Downtown 480 Frontier
422 Old Public 461 Gateway Transit Station Development # 2
Works Building Place TIF # 9 TIF # 10 TIF # 11
Revenues:
General property taxes $ - $ - $ - $ -
Tax increment collections - 22,836 - -
Licenses and permits - - - -
Intergovernmental - - - -
Special assessments - - - -
Investment earnings 2,313 165 2 -
Net change in fair value of investments (448) (32) - -
Contributions and donations - - - -
Refunds and reimbursements - - - -
Other 63,467 - - -
Total revenues 65,332 22,969 2 0
Expenditures:
Current:
General government - - - -
Public safety - - - -
Public works - - - -
Parks and recreation - - - -
Community development - 755 561 -
Capital outlay:
General government - - - -
Public safety 254,191 - - -
Public works - - - -
Parks and recreation - - - -
Decertification of TIF district - - - -
Total expenditures 254,191 755 561 0
Revenues over (under) expenditures (188,859)22,214 (559)0
Other financing sources (uses):
Sale of capital assets - - - -
Transfers in - - - 3,712
Transfers out - - - -
Total other financing sources (uses)0 0 0 3,712
Net change in fund balance (188,859)22,214 (559)3,712
Fund balance - January 1 1,657,592 17,932 625 (3,712)
Fund balance - December 31 $1,468,733 $40,146 $66 $0
126
Statement 25
Page 2 of 2
605 TH101
491 494 600 Special 603 Lyman Improvments -
Entertainment North Bay Assessment Boulevard Pioneer to
TIF # 4 TIF # 5 Projects Improvements Flying Cloud
2016 2015
$ - $ - $ - $ - $ - $893,000 $985,000
- 88,925 - - - 111,761 200,338
- - - - - 511,080 269,897
- - - - 10,376 426,474 2,978,209
- - - - - 146,505 -
560 2,597 - 3,533 - 32,194 80,235
(108) (503) - (684) - (6,231) (16,965)
- - - - - - 12,155
- - - 7,416 - 76,209 22,396
- - - - 14,400 80,867 77,493
452 91,019 0 10,265 24,776 2,271,859 4,608,758
- - - - - 215,283 205,161
- - - - - 383,772 83,771
- - - - 46,194 761,167 2,063,753
- - - - - 199,598 84,929
15,317 31,242 - - - 47,875 30,156
- - - - - 62,713 -
- - - - - 308,104 112,681
- - - - - 95,757 1,733,737
- - - - - 1,153,763 467,333
139,594 - - - - 139,594 -
154,911 31,242 0 0 46,194 3,367,626 4,781,521
(154,459) 59,777 0 10,265 (21,418) (1,095,767) (172,763)
- - - - - 54,994 41,015
- - - - 28,834 152,546 297,867
- (3,712) (81,084) - - (118,999) (679,891)
0 (3,712) (81,084) 0 28,834 88,541 (341,009)
(154,459) 56,065 (81,084) 10,265 7,416 (1,007,226) (513,772)
154,834 302,526 81,084 471,291 4,690 6,076,127 6,958,696
$375 $358,591 $0 $481,556 $12,106 $5,068,901 $6,444,924
Reconciliation of beginning fund balance to prior year ending fund balance:
Prior year ending fund balance reported above $6,444,924
Reclassification of Transit Station Assessment Fund fund balance, now presented as a nonmajor fund (368,797)
Fund balance - January 1, 2016 as reported on this statement $6,076,127
Total Nonmajor
Capital Project Funds
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, 2016
With Comparative Actual Amounts For The Year Ended December 31, 2015
2015
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues:
Investment earnings $ - $ - $329 $329 $548
Net change in fair value of investments - - (64)(64) (116)
Contributions and donations 42,000 42,000 36,527 (5,473) 39,620
Total revenues 42,000 42,000 36,792 (5,208) 40,052
Expenditures:
Current:
Public safety:
Contractual services 20,000 20,000 16,670 3,330 39,618
Capital outlay 20,000 20,000 5,900 14,100 9,462
Total expenditures 40,000 40,000 22,570 17,430 49,080
Revenues over (under) expenditures $2,000 $2,000 14,222 $12,222 (9,028)
Fund balance - January 1 38,368 47,396
Fund balance - December 31 $52,590 $38,368
2016
Budgeted Amounts
128
CITY OF CHANHASSEN, MINNESOTA
SPECIAL REVENUE FUND - CEMETERY FUND Statement 27
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2016
With Comparative Actual Amounts For The Year Ended December 31, 2015
2015
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues:
Charges for services $8,900 $8,900 $25,850 $16,950 $1,850
Investment earnings 100 100 207 107 269
Net change in fair value of investments - - (40)(40)(57)
Total revenues 9,000 9,000 26,017 17,017 2,062
Expenditures:
Current:
General government:
Contractual services 6,500 6,500 1,105 5,395 19,981
Total expenditures 6,500 6,500 1,105 5,395 19,981
Revenues over (under) expenditures $2,500 $2,500 24,912 $22,412 (17,919)
Fund balance - January 1 9,499 27,418
Fund balance - December 31 $34,411 $9,499
2016
Budgeted Amounts
129
CITY OF CHANHASSEN, MINNESOTA
SPECIAL REVENUE FUND - CATV Statement 28
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2016
With Comparative Actual Amounts For The Year Ended December 31, 2015
2015
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues:
Franchise and PEG fees $190,000 $190,000 $194,082 $4,082 $200,126
Refunds and reimbursements - - 249 249 -
Investment earnings 1,000 1,000 2,940 1,940 4,942
Net change in fair value of investments - - (569) (569) (1,045)
Total revenues 191,000 191,000 196,702 5,702 204,023
Expenditures:
Current:
General government:
Personal services 103,200 103,200 102,350 850 96,582
Materials and supplies 5,000 5,000 4,557 443 11,975
Contractual services 22,300 22,300 64,765 (42,465) 13,576
Capital outlay 20,000 20,000 - 20,000 -
Total expenditures 150,500 150,500 171,672 (21,172) 122,133
Revenues over expenditures $40,500 $40,500 25,030 ($15,470) 81,890
Fund balance - January 1 411,695 329,805
Fund balance - December 31 $436,725 $411,695
2016
Budgeted Amounts
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 Statement 29
AGENCY FUNDS
December 31, 2016
With Comparative Totals For December 31, 2015
815 Escrow
Fund
913 Moon
Valley
Restoration
Fund
2016 2015
Assets:
Cash and investments $1,552,083 $86,958 $1,639,041 $1,835,459
Accounts receivable 10,905 - 10,905 -
Total assets $1,562,988 $86,958 $1,649,946 $1,835,459
Liabilities:
Accounts payable $10,905 $ - $10,905 $ -
Escrow deposits payable 1,552,083 86,958 1,639,041 1,835,459
Total liabilities $1,562,988 $86,958 $1,649,946 $1,835,459
Totals
132
CITY OF CHANHASSEN, MINNESOTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Statement 30
AGENCY FUNDS
For The Year Ended December 31, 2016
Balance Balance
01/01/16 Additions Deletions 12/31/16
Escrow Fund
Assets:
Cash and investments $1,748,634 $671,877 $868,428 $1,552,083
Accounts receivable - 10,905 - 10,905
Total assets $1,748,634 $682,782 $868,428 $1,562,988
Liabilities:
Accounts payable $ - $10,905 $ - $10,905
Escrow deposits payable 1,748,634 671,877 868,428 1,552,083
Total liabilities $1,748,634 $682,782 $868,428 $1,562,988
Moon Valley Restoration Fund
Assets:
Cash and investments $86,825 $133 $ - $86,958
Liabilities:
Escrow deposits payable $86,825 $133 $ - $86,958
Totals - All Agency Funds
Assets:
Cash and investments $1,835,459 $672,010 $868,428 $1,639,041
Accounts receivable - 10,905 - 10,905
Total assets $1,835,459 $682,915 $868,428 $1,649,946
Liabilities:
Accounts payable $ - $10,905 $ - $10,905
Escrow deposits payable 1,835,459 672,010 868,428 1,639,041
Total liabilities $1,835,459 $682,915 $868,428 $1,649,946
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
City’s financial performance and well-being have changed over time.
138-147
Revenue Capacity
These tables contain information to help the reader assess the City’s most
significant local revenue source, the property tax.
148-153
Debt Capacity
These tables present information to help the reader assess the affordability of the
City’s current levels of outstanding debt and the City’s ability to issue additional
debt in the future.
154-159
Demographic and Economic
These tables offer demographic and economic indicators to help the reader
understand the environment within which the City’s financial activities take
place.
160-161
Operating Information
These tables contain service and infrastructure data to help the reader understand
how the information in the City’s financial report relates to the services the City
provides and the activities it performs.
162-167
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)
2007 2008 2009 2010
Governmental activities:
Net investment in capital assets $68,982,379 $70,611,368 $72,106,198 $73,272,450
Restricted:
Debt service 11,047,062 12,165,653 6,461,780 9,655,951
Park improvements - - - 2,088,246
Tax increment purposes 386,552 129,033 195,265 319,864
Other purposes - - - 121,137
Unrestricted 15,041,678 15,664,273 15,066,634 8,722,413
Total governmental activities net position $95,457,671 $98,570,327 $93,829,877 $94,180,061
Business-type activities:
Net investment in capital assets $52,502,257 $55,541,752 $55,496,919 $57,028,340
Unrestricted 17,292,106 13,117,323 12,129,049 10,259,836
Total business-type activities net position $69,794,363 $68,659,075 $67,625,968 $67,288,176
Primary government:
Net investment in capital assets $121,484,636 $126,153,120 $127,603,117 $130,300,790
Restricted:
Debt service 11,047,062 12,165,653 6,461,780 9,655,951
Park improvements - - - 2,088,246
Tax increment purposes 386,552 129,033 195,265 319,864
Other purposes - - - 121,137
Unrestricted 32,333,784 28,781,596 27,195,683 18,982,249
Total primary government net position $165,252,034 $167,229,402 $161,455,845 $161,468,237
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
2011 2012 2013 2014 2015 2016
$70,866,708 $69,987,563 $71,260,946 $71,867,072 $71,225,523 $72,588,940
5,709,727 5,905,553 6,595,927 3,441,810 3,455,172 1,390,127
2,516,027 1,650,118 1,714,972 1,751,739 1,896,923 1,505,784
338,029 471,930 711,287 330,809 475,357 399,178
168,147 142,747 165,838 176,089 154,810 164,751
13,363,047 15,094,966 14,361,011 14,512,772 9,510,105 10,221,704
$92,961,685 $93,252,877 $94,809,981 $92,080,291 $86,717,890 $86,270,484
$55,430,138 $54,475,353 $52,541,451 $54,111,608 $55,704,478 $57,478,975
9,484,947 10,631,342 11,391,338 10,467,201 10,032,731 10,516,316
$64,915,085 $65,106,695 $63,932,789 $64,578,809 $65,737,209 $67,995,291
$126,296,846 $124,462,916 $123,802,397 $125,978,680 $126,930,001 $130,067,915
5,709,727 5,905,553 6,595,927 3,441,810 3,455,172 1,390,127
2,516,027 1,650,118 1,714,972 1,751,739 1,896,923 1,505,784
338,029 471,930 711,287 330,809 475,357 399,178
168,147 142,747 165,838 176,089 154,810 164,751
22,847,994 25,726,308 25,752,349 24,979,973 19,542,836 20,738,020
$157,876,770 $158,359,572 $158,742,770 $156,659,100 $152,455,099 $154,265,775
139
CITY OF CHANHASSEN, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2007 2008 2009 2010
Expenses
Governmental activities:
General government $2,439,716 $2,469,055 $2,597,147 $2,898,608
Public safety 3,098,068 3,062,941 3,158,465 3,227,396
Public works 7,010,981 6,220,816 9,123,165 6,308,023
Parks and recreation 3,023,032 3,025,987 3,663,124 3,046,718
Community development 1,052,104 704,979 628,339 879,048
Interest and fees on long-term debt 835,059 652,015 1,031,567 880,384
Total governmental activities expenses 17,458,960 16,135,793 20,201,807 17,240,177
Business-type activities:
Water 3,112,575 3,234,139 3,311,129 3,443,583
Sewer 3,177,366 3,072,588 3,276,042 3,252,510
Surface water management 1,238,914 1,121,197 1,093,165 1,202,556
Total business-type activities expenses 7,528,855 7,427,924 7,680,336 7,898,649
Total primary government expenses $24,987,815 $23,563,717 $27,882,143 $25,138,826
Program revenues
Governmental activities:
Charges for services:
Licenses and permits $2,171,558 $1,810,545 $1,085,754 $1,331,374
Charges for services 1,132,448 1,115,903 1,064,173 1,189,560
Fines and forfeits 145,682 124,633 122,496 123,609
Operating grants and contributions 452,798 346,023 363,540 414,654
Capital grants and contributions 7,464,697 3,221,636 1,265,287 4,175,655
Total governmental activities program revenues 11,367,183 6,618,740 3,901,250 7,234,852
Business-type activities:
Charges for services:
Water 2,461,205 2,408,379 2,689,170 2,424,634
Sewer 2,186,622 2,187,209 2,378,111 2,365,358
Surface water management 452,148 479,318 512,761 538,688
Operating grants and contributions 45,172 36,350 5,332 2,984
Capital grants and contributions 3,340,598 1,527,624 1,684,982 1,593,289
Total business-type activities program revenues 8,485,745 6,638,880 7,270,356 6,924,953
Total primary government program revenues $19,852,928 $13,257,620 $11,171,606 $14,159,805
140
Table 2
Page 1 of 2
2011 2012 2013 2014 2015 2016
$2,565,486 $2,690,853 $2,630,405 $3,099,004 $2,775,663 $2,887,111
3,061,122 3,176,441 3,313,694 3,416,088 3,826,376 3,973,031
8,607,534 7,743,147 14,224,453 9,604,525 11,153,322 7,591,530
2,921,593 3,114,340 2,919,183 3,062,592 2,952,985 3,278,139
799,379 646,262 523,651 1,043,848 527,268 689,448
838,421 725,881 588,352 465,935 409,676 493,746
18,793,535 18,096,924 24,199,738 20,691,992 21,645,290 18,913,005
3,581,955 3,646,787 4,702,686 3,347,965 3,290,265 4,422,789
3,317,329 3,235,324 3,548,200 3,171,696 3,297,128 3,254,619
1,173,115 1,347,345 1,334,173 1,491,763 1,328,144 1,388,979
8,072,399 8,229,456 9,585,059 8,011,424 7,915,537 9,066,387
$26,865,934 $26,326,380 $33,784,797 $28,703,416 $29,560,827 $27,979,392
$1,381,326 $1,595,358 $2,113,770 $1,691,634 $1,565,900 $1,653,858
1,047,726 1,394,356 1,396,068 1,149,372 1,153,779 1,209,882
126,571 119,997 99,984 100,516 117,189 114,367
692,428 404,663 472,298 532,337 823,943 735,840
1,646,573 2,953,496 10,718,999 3,296,748 5,812,825 3,705,857
4,894,624 6,467,870 14,801,119 6,770,607 9,473,636 7,419,804
2,611,327 3,146,886 2,829,226 2,573,027 2,611,895 2,717,285
2,297,677 2,434,370 2,358,854 2,472,536 2,525,731 2,619,882
534,473 590,323 615,896 639,087 668,971 684,199
12,589 121,925 63,112 210,857 45,130 72,007
1,086,655 1,861,689 2,852,437 2,633,793 3,140,823 5,199,139
6,542,721 8,155,193 8,719,525 8,529,300 8,992,550 11,292,512
$11,437,345 $14,623,063 $23,520,644 $15,299,907 $18,466,186 $18,712,316
141
CITY OF CHANHASSEN, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2007 2008 2009 2010
Net (expense) revenue:
Governmental activities ($6,091,777) ($9,517,053) ($16,300,557) ($10,005,325)
Business-type activities 956,890 (789,044) (409,980) (973,696)
Total primary government net (expense) revenue (5,134,887) (10,306,097) (16,710,537) (10,979,021)
General revenues and other changes in net position
Governmental activities:
Property taxes 9,419,763 9,651,758 9,921,598 10,014,684
Tax increment collections 420,526 574,101 473,674 539,523
Grants and contributions not restricted to specific programs 189,616 108,039 27,612 45,767
Unrestricted investment earnings 1,397,746 1,150,993 357,953 222,719
Gain on sale of capital assets 10,806 32,195 4,524 20,727
Special item - sale of public works building - - - -
Transfers (5,077,531) 1,112,623 774,746 (487,911)
Total governmental activities 6,360,926 12,629,709 11,560,107 10,355,509
Business-type activities:
Unrestricted investment earnings 786,455 797,079 141,070 114,349
Miscellaneous 127,143 22,464 10,549 33,644
Gain on sale of capital assets - - - -
Transfers 5,077,531 (1,112,623) (774,746) 487,911
Total business-type activities 5,991,129 (293,080) (623,127) 635,904
Total primary government $12,352,055 $12,336,629 $10,936,980 $10,991,413
Change in net position:
Governmental activities $269,149 $3,112,656 ($4,740,450) $350,184
Business-type activities 6,948,019 (1,082,124) (1,033,107) (337,792)
Total primary government $7,217,168 $2,030,532 ($5,773,557) $12,392
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
Table 2
Page 2 of 2
2011 2012 2013 2014 2015 2016
($13,898,911) ($11,629,054) ($9,398,619) ($13,921,385) ($12,171,654) ($11,493,201)
(1,529,678) (74,263) (865,534) 517,876 1,077,013 2,226,125
(15,428,589) (11,703,317) (10,264,153) (13,403,509) (11,094,641) (9,267,076)
9,849,882 10,064,176 10,059,324 10,482,273 10,536,216 10,643,917
566,045 533,011 545,906 307,940 200,338 111,761
28,304 20,071 19,941 19,736 21,679 19,754
505,541 173,523 (14,764)183,602 176,731 156,202
44,000 56,610 37,720 191,755 66,248 41,129
- 1,246,275 - - - -
1,061,763 (173,420)307,596 6,389 (612,078)73,032
12,055,535 11,920,246 10,955,723 11,191,695 10,389,134 11,045,795
211,707 92,453 (776)134,533 132,406 79,765
6,643 - - - - -
- - - - 57,510 25,224
(1,061,763)173,420 (307,596)(6,389)612,078 (73,032)
(843,413)265,873 (308,372)128,144 801,994 31,957
$11,212,122 $12,186,119 $10,647,351 $11,319,839 $11,191,128 $11,077,752
($1,843,376)$291,192 $1,557,104 ($2,729,690) ($1,782,520) ($447,406)
(2,373,091)191,610 (1,173,906)646,020 1,879,007 2,258,082
($4,216,467)$482,802 $383,198 ($2,083,670)$96,487 $1,810,676
143
CITY OF CHANHASSEN, MINNESOTA
FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2007 2008 2009 2010
General Fund:
Reserved $13,210 $21,173 $46,750 $55,826
Unreserved:
Designated 3,416,950 3,586,750 3,690,000 3,754,000
Undesignated 2,061,126 1,273,796 1,137,109 1,459,792
Nonspendable - - - -
Unassigned - - - -
Total general fund $5,491,286 $4,881,719 $4,873,859 $5,269,618
All other governmental funds:
Reserved $7,335,225 $6,671,271 $2,950,284 $5,642,029
Unreserved:
Designated:
Special revenue funds 548,438 525,692 668,992 2,082,929
Capital project funds 9,934,936 18,732,625 11,418,006 7,487,198
Undesignated:
Debt service funds 215,298 237,721 342,877 356,724
Capital project funds (239,434)(11,584) (2,001,149) (786,209)
Nonspendable - - - -
Restricted - - - -
Assigned - - - -
Unassigned - - - -
Total all other governmental funds $17,794,463 $26,155,725 $13,379,010 $14,782,671
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
2011 2012 2013 2014 2015 2016
$ - $ - $ - $ - $ - $ -
- - - - - -
- - - - - -
17,280 57,137 16,741 58,333 72,114 25,832
5,278,118 5,434,641 5,274,584 5,550,732 5,258,232 5,286,880
$5,295,398 $5,491,778 $5,291,325 $5,609,065 $5,330,346 $5,312,712
$ - $ - $ - $ - $ - $ -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
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 8,673,981
6,561,411 6,731,400 6,366,292 5,951,507 5,586,353 7,806,958
(730,120) (646,856) (559,515) (475,352) (372,509) (264,772)
$16,270,538 $13,817,112 $16,315,075 $12,490,149 $12,291,903 $16,216,167
145
CITY OF CHANHASSEN, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Revenues: 2007 2008 2009 2010
General property taxes $9,403,109 $9,582,333 $9,834,389 $10,141,168
Tax increment collections $420,526 $574,101 473,674 539,523
Licenses and permits 2,171,558 1,810,545 1,085,754 1,331,374
Intergovernmental 1,148,034 2,147,970 397,438 401,550
Special assessments 3,922,517 623,893 540,151 790,426
Charges for services 738,669 841,209 950,760 923,550
Fines and forfeits 145,682 124,633 122,496 123,609
Investment earnings 1,397,746 1,150,993 357,953 222,719
Contributions and donations 47,428 43,410 47,206 58,016
Refunds and reimbursements - 51,247 61,707 132,616
Other 404,426 238,030 170,688 213,272
Total revenues 19,799,695 17,188,364 14,042,216 14,877,823
Expenditures:
Current:
General government 2,116,928 2,102,512 2,070,698 2,525,326
Public safety 2,924,751 2,885,296 2,979,044 3,077,038
Public works 3,735,950 2,786,397 5,710,804 2,739,704
Parks and recreation 1,848,880 1,933,353 2,487,985 1,901,564
Community development 841,306 468,819 527,919 698,818
Capital outlay:
General government 6,734 233,600 143,663 473,753
Public safety 505,215 54,284 55,152 65,667
Public works 6,693,387 4,677,179 8,179,324 3,995,444
Parks and recreation 1,491,848 642,508 235,292 490,737
Debt service:
Principal 1,750,000 2,689,552 2,553,002 2,370,000
Interest and paying agent fees 769,212 874,848 920,529 888,843
Bond issuance costs - 93,811 73,182 46,505
Developer assistance 206,753 226,055 90,354 176,643
Total expenditures 22,890,964 19,668,214 26,026,948 19,450,042
Revenues over (under) expenditures (3,091,269) (2,479,850) (11,984,732) (4,572,219)
Other financing sources (uses):
Bonds issued - 7,550,000 6,020,000 5,200,000
Loans issued 3,014,744 24,839 - -
Bond premium - - 226,991 35,964
Redemption of refunding bonds - - (8,387,123) -
Transfers in 537,564 2,646,011 1,324,015 1,105,000
Transfers out (1,163,065) - - -
Sale of capital assets 16,740 10,695 16,274 30,675
Special item - sale of old public works building - - - -
Total other financing sources (uses)2,405,983 10,231,545 (799,843) 6,371,639
Net change in fund balance ($685,286) $7,751,695 ($12,784,575) $1,799,420
Debt service as a percentage of
noncapital expenditures 18.0%26.4%20.5%23.2%
Debt service as percentage of
total expenditures 11.0%18.6%13.6%17.0%
146
Table 4
2011 2012 2013 2014 2015 2016
$9,760,052 $10,143,011 $10,176,483 $10,489,350 $10,529,994 $10,640,315
566,045 533,011 545,906 307,940 200,338 111,761
1,381,326 1,595,358 2,113,770 1,691,634 1,565,900 1,653,858
1,425,525 2,151,785 7,971,339 2,553,062 4,897,139 974,917
1,242,040 1,667,881 3,193,078 854,966 1,664,424 820,026
795,616 880,920 907,414 798,578 799,543 846,540
126,571 119,997 99,984 100,516 117,189 114,367
505,541 173,523 (14,764) 183,602 176,731 156,202
50,685 36,893 33,159 66,918 78,175 60,802
117,441 253,030 235,363 77,871 85,955 150,093
846,523 264,038 259,703 265,119 267,622 276,067
16,817,365 17,819,447 25,521,435 17,389,556 20,383,010 15,804,948
2,162,479 2,326,490 2,274,640 2,350,437 2,391,195 2,479,271
2,896,644 3,013,980 3,179,446 3,258,363 3,431,541 3,713,146
4,779,067 3,726,158 10,628,140 5,352,221 7,537,376 3,961,016
1,906,489 2,154,714 2,002,604 2,164,703 2,068,532 2,256,314
502,916 621,295 522,538 1,034,047 515,382 659,276
129,535 75,226 87,707 34,080 - 62,713
52,645 39,314 74,144 23,980 122,143 314,004
2,122,641 3,502,371 2,482,728 2,894,237 2,566,867 459,142
309,524 1,310,366 627,214 485,107 476,323 1,153,763
1,025,000 5,100,000 1,590,000 4,190,000 1,810,000 1,795,000
853,152 814,621 599,487 518,722 439,470 483,533
- - - - - -
298,216 21,108 - - - -
17,038,308 22,705,643 24,068,648 22,305,897 21,358,829 17,337,178
(220,943) (4,886,196) 1,452,787 (4,916,341) (975,819) (1,532,230)
- - - - - 4,805,000
- - - - - -
- - - - - 239,773
- - - - - -
1,734,590 1,203,031 888,711 1,783,719 2,158,844 1,347,883
- (48,881) (43,988) (676,095) (1,701,005) (1,044,114)
- - - 301,531 41,015 90,318
- 1,475,000 - - - -
1,734,590 2,629,150 844,723 1,409,155 498,854 5,438,860
$1,513,647 ($2,257,046) $2,297,510 ($3,507,186) ($476,965) $3,906,630
13.3% 33.3% 10.5% 25.0% 12.4% 14.8%
11.0% 26.0% 9.1% 21.1% 10.5% 13.1%
147
CITY OF CHANHASSEN, MINNESOTA
TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
Fiscal
Year Commercial/Total
Ended Residential Industrial All Tax
December 31, Property Agricultural Property Other Capacity
2007 $27,853,083 $316,461 $8,114,703 $428,203 $36,712,450
2008 29,821,326 208,789 9,135,911 435,603 39,601,629
2009 30,741,292 190,844 9,665,269 471,749 41,069,154
2010 30,301,115 170,857 10,229,329 477,663 41,178,964
2011 28,951,885 131,751 9,778,491 511,185 39,373,312
2012 27,198,238 137,012 9,149,904 520,743 37,005,897
2013 26,970,557 105,160 8,927,095 541,612 36,544,424
2014 28,725,937 132,728 8,984,174 613,105 38,455,944
2015 32,778,287 153,500 9,205,053 620,620 42,757,460
2016 33,790,483 222,144 9,508,063 669,890 44,190,580
Sources: Carver County Taxpayer Services and Hennepin County
148
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
($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%
(103,638) (2,119,400) 41,967,542 24.25249 3,802,904,100 1.10%
149
CITY OF CHANHASSEN, MINNESOTA
DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES Table 6
Last Ten Fiscal Years
Fiscal Operational Debt City School Carver
Year and Capital Service Total District #112 County Other Total
Tax capacity rates (per $100 of adjusted tax capacity value)
2007 18.961 4.827 23.788 35.831 37.802 5.132 102.553
2008 19.110 4.603 23.713 35.970 37.563 5.547 102.793
2009 18.864 4.129 22.993 35.505 38.033 5.458 101.989
2010 20.722 4.461 25.183 35.840 39.509 5.639 106.171
2011 21.915 4.688 26.603 40.236 41.752 6.021 114.610
2012 23.701 4.831 28.532 44.382 43.562 6.681 123.158
2013 23.635 4.793 28.428 45.319 46.115 6.603 126.467
2014 22.708 4.531 27.239 44.917 45.211 6.873 124.239
2015 21.532 3.101 24.633 39.120 40.488 6.270 110.512
2016 21.314 2.938 24.252 39.245 38.880 6.417 108.795
Source: Carver County Taxpayer Services
(1)The City Direct Rate is the Urban Based Rate, not including market value levies.
City Direct Rate(1)Overlapping Rates
150
CITY OF CHANHASSEN, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS Table 7
Current Year and Nine Years Ago
Percentage Percentage
Taxable of Total City Taxable of Total City
Capacity Capacity Capacity Capacity
Taxpayer Value Rank Value Value Rank Value
Istar Minnesota LLC $430,422 1 1.0% $293,026 2 0.8%
SGO MN West Village LLC 391,666 2 0.9% - -
Rosemount Inc 321,864 3 0.8% 288,270 3 0.8%
LTF Real Estate Company Inc 306,584 4 0.7% - -
Northern States Power Co 290,656 5 0.7% 230,006 4 0.7%
Prince R Nelson 228,494 6 0.5% - -
PHM/Chanhassen Inc 209,474 7 0.5% - -
Centerpoint Energy Minnegasco 204,488 8 0.5% - -
Target Corporation T-0862 204,178 9 0.5% 179,680 8 0.5%
LTF Real Estate MP I LLC 202,346 10 0.5% 219,250 5 0.6%
IRET Properties - - 312,746 1 0.9%
DRF Chanhassen Medical Bldg - - 203,798 6 0.6%
Park Avenue Lofts LLC - - 181,266 7 0.5%
McGlynn Bakeries Inc #366 - - 172,694 9 0.5%
Market Square Assoc Ltd Partnership - - 160,394 10 0.5%
Total $2,790,172 6.5% $2,241,130 6.4%
Total All Property $42,734,822 $34,789,850
Source: Carver County Taxpayer Services
20072016
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152
CITY OF CHANHASSEN, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS Table 8
Last Ten Fiscal Years
Fiscal Taxes Collections
Year Levied in
Ended For The Percentage Subsequent Percentage
December 31, Fiscal Year Amount of Levy Years Amount of Levy
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%144,961 9,700,449 98.6%
2009 10,074,565 9,668,713 96.0%156,702 9,825,415 97.5%
2010 10,213,190 9,918,528 97.1%(20,050) 9,898,478 96.9%
2011 10,267,390 9,739,125 94.9%184,260 9,923,385 96.6%
2012 10,153,690 10,005,877 98.5%50,040 10,055,918 99.0%
2013 10,195,890 10,105,393 99.1%16,625 10,122,018 99.3%
2014 10,334,140 10,269,518 99.4%31,572 10,301,090 99.7%
2015 10,484,021 10,446,765 99.6%37,256 10,484,021 100.0%
2016 10,629,621 10,564,815 99.4% - 10,564,815 99.4%
Source: City Finance Department
Fiscal Year of the Levy
Collected Within The
Total Collections to Date
153
CITY OF CHANHASSEN, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
General General
Fiscal Obligation Revenue Tax Increment Improvement
Year Bonds Bonds Bonds Bonds
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
2016 13,313,788 - - -
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1)Information pertaining to Chanhassen Personal Income is not available, information for Carver County was
included instead.
(a) Information not available
Governmental Activities
154
Table 9
Business-Type Bonded Debt
Activities Per Total
Carver County
Other G.O. Revenue Debt Personal
Debt Bonds Total Debt Per Capita Income(1)
$3,828,166 $13,915,000 $35,113,166 $1,444 0.8%
3,375,125 12,415,000 38,300,125 1,564 0.8%
- 11,695,000 32,660,000 1,322 0.7%
- 10,955,000 34,750,000 1,514 0.7%
- 20,077,339 42,847,339 1,849 0.9%
- 20,578,313 38,248,313 1,629 0.7%
- 16,324,287 32,404,287 1,353 0.6%
- 10,045,261 21,935,261 899 0.4%
- 9,256,235 19,336,235 784 0.3%
- 13,926,719 27,240,507 1,092 (a)
155
CITY OF CHANHASSEN, MINNESOTA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING Table 10
Last Ten Fiscal Years
Net General
General G.O. Tax G.O. G.O. Total General Less Amounts Net General Percentage Obligation
Fiscal Obligation Increment Improvement Revenue Obligation Restricted for Obligation of Tax Bonded Debt
Year Bonds Bonds Bonds Bonds Bonded Debt Debt Service Bonded Debt Capacity Per Capita
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 3,455,172 15,881,063 38.60%644
2016 13,313,788 - - 13,926,719 27,240,507 6,418,913 20,821,594 48.72%834
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 Table 11
December 31, 2016
Estimated
Estimated Share of
Debt Percentage Overlapping
Governmental Unit Outstanding Applicable*Debt
Direct debt:
City of Chanhassen(1)$13,090,000 100.00% $13,090,000
Overlapping debt:
Eastern Carver County School District 246,825,000 37.71% 93,077,708
Eden Prairie Independent School District 53,008,080 0.90% 477,073
Carver County 29,255,000 31.94% 9,344,047
Hennepin County 811,375,883 0.05% 405,688
Hennepin Suburban Park District 47,787,952 0.08%38,230
Hennepin Regulatory Railroad Authority 32,848,204 0.08%26,279
Metropolitan Council 38,874,706 0.03%11,662
Subtotal - overlapping debt 1,259,974,825 103,380,686
Total direct and overlapping debt $1,273,064,825 $116,470,686
(1)Excludes debt related to the City's business-type activities.
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents
and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term
debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not
imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
*For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed
property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable
assessed value that is within the City's boundaries and dividing it by each unit's total taxable assessed value.
157
CITY OF CHANHASSEN, MINNESOTA
LEGAL DEBT MARGIN INFORMATION Table 12
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2016
Market value $3,802,904,100
Applicable percentage 3%
Debt limit 114,087,123
Debt applicable to limit:
Total bonded debt 27,240,507
Less:
Enterprise Fund debt (13,926,719)
Less:
Cash and investments in G.O. Bond Debt Service Fund (6,592,343)
6,721,445
Legal debt margin $107,365,678
Legal Debt Margin Calculation for Fiscal Years 2007 Through 2016
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
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
2016 24,951 114,087,123 6,721,445 107,365,678 5.89%269
158
CITY OF CHANHASSEN, MINNESOTA
PLEDGED REVENUE COVERAGE Table 13
Last Ten Fiscal Years
Special
Fiscal Assessment
Year Collections Principal Interest Coverage
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
2016 820,026 1,155,000 26,175 0.694
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Improvement Bonds
Debt Service
159
CITY OF CHANHASSEN, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS Table 14
Last Ten Fiscal Years
Carver County Carver County
Chanhassen Carver County Personal Per Capita
Fiscal Chanhassen Unemployment Unemployment Income Personal
Year Population(1)Rate(2)Rate(2)(Thousands)(3)Income(3)
2007 24,321 2.9%4.0%$4,454,024 $51,037
2008 24,481 3.6%4.9%4,700,313 52,924
2009 24,699 5.8%7.2%4,443,704 49,242
2010 22,952 6.1%6.8%4,642,812 50,800
2011 23,179 4.9%5.5%5,034,748 54,229
2012 23,484 4.5%4.8%5,433,676 57,852
2013 23,954 4.1%4.3%5,548,893 58,000
2014 24,388 3.4%3.6%5,924,329 60,827
2015 24,655 3.0%3.2%6,249,370 63,291
2016 24,951 3.1%3.3%(a)(a)
Sources:(1)Federal Census Data and Chanhassen Planning Department
(2)State of Minnesota, Department of Employment and Economic Development
(3)U.S. Department of Commerce, Bureau of Economic Analysis
(a) Information not available
Note: Information pertaining to Chanhassen Personal Income and Per Capita Personal Income is not available, information
for Carver County was included instead.
160
CITY OF CHANHASSEN, MINNESOTA
PRINCIPAL EMPLOYERS Table 15
Current Year and Nine Years Ago
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment(1)Employees Rank Employment(1)
Lifetime Fitness 1,218 1 21.0%980 2 16.3%
Instant Web Companies 1,193 2 20.6%824 4 13.7%
Rosemount Inc 943 3 16.3% 1,577 1 26.2%
The Bernard Group 581 4 10.0% - -
Eastern Carver County Schools 400 5 6.9%165 10 2.7%
RR Donnelley 382 6 6.6%280 7 4.7%
General Mills 326 7 5.6%475 5 7.9%
Chanhassen Dinner Theatres 275 8 4.7%300 6 5.0%
Minnesota Landscape Arboretum 270 9 4.7%240 9 4.0%
Checkpoint Systems Inc.204 10 3.5% - -
Super Value Headquarters - - 900 3 14.9%
Byerly's - - 280 7 4.7%
Total 5,792 6,021
Source: Survey by City Administration and Finance Departments
(1)The statistic for total City employment is not available, therefore the percentage represents the percentage of
the top ten listed.
2016 2007
161
CITY OF CHANHASSEN, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program 2007 2008 2009
General government 13 13 13
Public safety 3 3 3
Public works 26 26 26
Parks & recreation 11 11 11
Community development 16 16 16
Total 69 69 69
Source: City Finance Department
Full-Time Equivalent Employees as of December 31,
162
Table 16
2010 2011 2012 2013 2014 2015 2016
13 13 13 13 13 13 13
3333332
26 26 26 26 26 26 27
11 11 11 11 11 11 12
15 15 14 14 14 14 16
68 68 67 67 67 67 70
Full-Time Equivalent Employees as of December 31,
163
CITY OF CHANHASSEN, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program 2007 2008 2009
Building:
Total permits issued 3,013 2,838 2,608
Total estimated value $125,865,426 $124,885,965 $67,811,817
Election:
Registered voters 15,319 16,544 16,544
Fire:
Average number of employees 44 45 45
General government:
Area of city - square miles 23.78 23.78 23.78
Average number of permanent full-time
employees (excluding fire department)69 69 69
Police:
Average number of employees 13 14 15
Number of crimes - MNCJRS(1)1,202 1,013 702
Number of crimes - NIBRS(1) - - -
Water:
Number of customers 6,804 7,039 7,427
Daily average consumption - gallons 3,031,400 3,200,000 3,642,410
Plant capacity - gallons 8,550,000 8,550,000 8,550,000
Source: Various City Departments
(1)Crime statistics in Minnesota had been reported for the last forty years utilizing Minnesota's Criminal Justice
Reporting System (MNCJRS). The Federal Bureau of Investigations has mandated that all states become National
Incident Based Reporting System (NIBRS) compliant by 2019. The Carver County Sheriff's Office transitioned to
NIBRS June 1, 2016.
Fiscal Year
164
Table 17
2010 2011 2012 2013 2014 2015 2016
2,910 3,397 3,285 3,201 3,076 3,266 2,891
$65,046,933 $82,991,029 $83,531,808 $89,370,069 $80,591,941 $82,145,483 $73,881,121
15,326 15,326 16,916 16,916 16,344 16,344 17,769
45 45 45 45 45 45 45
23.78 23.78 23.78 23.78 23.79 23.79 23.79
68 68 67 67 67 67 70
15 15 15 15 15 15 15
647 757 777 748 838 870 313
- - - - - - 472
7,620 7,655 7,741 7,953 8,075 8,195 8,254
2,698,559 2,257,542 2,570,349 2,876,383 2,542,413 2,495,868 2,565,905
8,550,000 8,550,000 8,550,000 8,550,000 8,550,000 8,550,000 8,550,000
Fiscal Year
165
CITY OF CHANHASSEN, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program 2007 2008 2009
Fire:
Number of stations 2 2 2
Parks and recreation:
Acres of parks 383 383 383
Acres of open space 434 434 434
Number of shelter buildings 3 3 4
Number of picnic shelters 5 5 5
Number of playgrounds 26 26 26
Number of swimming beaches 6 6 6
Number of tennis courts 17 17 17
Number of outdoor pickleball courts - - -
Police:
Number of stations 1 1 1
Public works:
Miles of streets 106.2 107.0 110.9
Miles of sidewalks 26.9 28.4 31.1
Miles of trails 47.2 53.0 53.6
Sewer:
Miles of storm sewers 66.2 67.1 69.5
Miles of sanitary sewers 119.6 120.8 123.0
Number of lift stations 31 31 31
Water:
Miles of watermains 126.0 129.6 135.1
Number of wells 11 12 12
Source: Various City Departments
Fiscal Year
166
Table 18
2010 2011 2012 2013 2014 2015 2016
2222222
396 396 401 401 405 405 405
434 489 503 503 503 503 503
4444444
555671315
26 26 26 27 28 28 28
5555555
17 17 15 15 15 15 15
- - 23666
1111111
111.9 112.0 112.6 113.5 113.7 113.9 116.5
31.9 31.9 31.9 31.9 32.0 32.0 34.0
53.6 56.1 56.4 58.6 59.2 59.9 62.4
71.0 74.5 75.3 76.5 77.0 78.8 84.3
123.6 123.7 123.9 124.3 124.5 125.3 128.2
31 31 31 31 31 31 31
136.8 137.8 138.0 139.1 139.3 140.6 145.5
12 12 12 12 12 12 13
Fiscal Year
167
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168
IV. OTHER INFORMATION (UNAUDITED)
169
CITY OF CHANHASSEN, MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS
December 31, 2016
Final
Interest Issue Maturity
Bonded indebtedness: Rates Date Date
General obligation bonds:
G.O. Capital Improvement Plan Bonds, Series 2008A 4.00%-4.60% 11/18/08 02/01/30
G.O. Library Refunding Bonds, Series 2010A 2.00%-3.10% 01/27/10 02/01/22
G.O. Bonds, Series 2016A 2.00%-3.00% 03/03/16 02/01/30
Total general obligation bonds
General improvement bonds:
G.O. Improvement Bonds, Series 2009A 3.00% 06/03/09 08/01/16
Enterprise Fund debt:
G.O. Water Revenue Bonds, Series 2011A 0.30%-2.15% 10/06/11 02/01/22
G.O. Water Revenue Refunding Bonds, Series 2011B 2.00%-3.00% 10/06/11 02/01/25
G.O. Water and Sewer Revenue Bonds, Series 2012A 1.00%-1.55% 11/15/12 02/01/23
G.O. Water Revenue Bonds, Series 2016A 2.00%-3.00% 03/03/16 02/01/26
G.O. Water Revenue Bonds, Series 2016B 3.50%-4.00% 12/29/16 02/01/42
Total Enterprise Fund debt
Total City bonded indebtedness
170
Exhibit 1
Payable Payable Principal
Original January 1, December 31, Due in
Issue Payments 2016 Issued Payments 2016 2017
$7,550,000 $1,330,000 $6,220,000 $ - $295,000 $5,925,000 $310,000
3,660,000 955,000 2,705,000 - 345,000 2,360,000 360,000
4,805,000 - - 4,805,000 - 4,805,000 -
16,015,000 2,285,000 8,925,000 4,805,000 640,000 13,090,000 670,000
6,020,000 4,865,000 1,155,000 - 1,155,000 - -
5,920,000 1,520,000 4,400,000 - 655,000 3,745,000 665,000
3,720,000 - 3,720,000 - 30,000 3,690,000 30,000
1,245,000 235,000 1,010,000 - 120,000 890,000 120,000
1,565,000 - - 1,565,000 - 1,565,000 140,000
3,630,000 - - 3,630,000 - 3,630,000 -
16,080,000 1,755,000 9,130,000 5,195,000 805,000 13,520,000 955,000
$38,115,000 $8,905,000 $19,210,000 $10,000,000 $2,600,000 $26,610,000 $1,625,000
Prior Years 2016
171
CITY OF CHANHASSEN, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY Exhibit 2
GENERAL OBLIGATION BONDS - GOVERNMENTAL ACTIVITIES
December 31, 2016
G.O. Capital G.O. Library
Improvement Refunding G.O.
Plan Bonds,Bonds,Bonds,
Series 2008A Series 2010A Series 2016A Total
Bonds payable $5,925,000 $2,360,000 $4,805,000 $13,090,000
Future interest payable 371,102 221,965 914,875 1,507,942
$6,296,102 $2,581,965 $5,719,875 $14,597,942
Payments to maturity:
2017 $559,468 $425,830 $117,950 $1,103,248
2018 5,736,634 424,880 117,950 6,279,464
2019 - 433,480 443,000 876,480
2020 - 431,630 447,875 879,505
2021 - 429,480 452,300 881,780
2022 - 436,665 451,350 888,015
2023 - - 455,025 455,025
2024 - - 453,325 453,325
2025 - - 458,300 458,300
2026 - - 460,000 460,000
2027 - - 461,500 461,500
2028 - - 462,800 462,800
2029 - - 468,850 468,850
2030 - - 469,650 469,650
$6,296,102 $2,581,965 $5,719,875 $14,597,942
172
CITY OF CHANHASSEN, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY Exhibit 3
GENERAL OBLIGATION REVENUE BONDS
December 31, 2016
G.O. Water G.O. Water G.O. Water & G.O. Water G.O. Water
Revenue Revenue Sewer Revenue Revenue Revenue
Bonds, Series Bonds, Series Bonds, Series Bonds, Series Bonds, Series
2011A 2011B 2012A 2016A 2016B Total
Bonds payable $3,745,000 $3,690,000 $890,000 $1,565,000 $3,630,000 $13,520,000
Future interest payable 187,413 603,400 41,848 213,800 3,262,486 4,308,947
$3,932,413 $4,293,400 $931,848 $1,778,800 $6,892,486 $17,828,947
Payments to maturity:
2017 $722,060 $135,100 $130,140 $181,400 $81,407 $1,250,107
2018 728,813 134,500 133,915 177,200 138,238 1,312,666
2019 733,663 569,500 132,665 177,925 138,238 1,751,991
2020 731,758 567,600 131,321 178,500 138,238 1,747,417
2021 738,163 572,900 134,758 178,925 138,238 1,762,984
2022 277,956 572,675 133,003 179,200 138,238 1,301,072
2023 - 576,925 136,046 179,325 138,238 1,030,534
2024 - 580,575 - 174,375 138,238 893,188
2025 - 583,625 - 175,200 138,238 897,063
2026 - - - 176,750 138,238 314,988
2027 - - - - 138,238 138,238
2028 - - - - 138,238 138,238
2029 - - - - 138,238 138,238
2030 - - - - 138,238 138,238
2031 - - - - 138,238 138,238
2032 - - - - 138,238 138,238
2033 - - - - 138,238 138,238
2034 - - - - 138,238 138,238
2035 - - - - 138,238 138,238
2036 - - - - 138,238 138,238
2037 - - - - 138,238 138,238
2038 - - - - 275,788 275,788
2039 - - - - 943,900 943,900
2040 - - - - 943,431 943,431
2041 - - - - 939,700 939,700
2042 - - - - 943,500 943,500
$3,932,413 $4,293,400 $931,848 $1,778,800 $6,892,486 $17,828,947
173
CITY OF CHANHASSEN, MINNESOTA
SCHEDULE OF DEFERRED TAX LEVIES Exhibit 4
December 31, 2016
Library G.O. Capital Total
Years of Bonds Improvement Deferred
Levy/ of 2002A/ Plan Bonds Tax
Collection 2010A of 2008A Levies
2016/2017 $451,952 $596,700 $1,048,652
2017/2018 461,297 470,348 931,645
2018/2019 459,512 475,702 935,214
2019/2020 457,412 480,585 937,997
2020/2021 465,497 479,745 945,242
2021/2022 - 483,840 483,840
2022/2023 - 482,213 482,213
2023/2024 - 485,520 485,520
2024/2025 - 487,410 487,410
2025/2026 - 489,090 489,090
2026/2027 - 490,560 490,560
2027/2028 - 497,070 497,070
2028/2029 - 498,015 498,015
$2,295,670 $6,416,798 $8,712,468
174