2021 Annual Financial ReportAn
Annual Comprehensive
Financial Report
For the Fiscal Year Ended December 31, 2021 City of Chanhassen, Minnesota
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ANNUAL COMPREHENSIVE FINANCIAL REPORT
OF THE CITY OF CHANHASSEN, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2021
Finance Department
Kelly Strey, 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 7
Organization Chart 8
Organization 9
II. FINANCIAL SECTION
Independent Auditor's Report 13
Management's Discussion and Analysis 19
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position Statement 1 35
Statement of Activities Statement 2 36
Fund Financial Statements:
Balance Sheet - Governmental Funds Statement 3 38
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds Statement 4 39
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities Statement 5 40
Statement of Net Position - Proprietary Funds Statement 6 41
Statement of Revenues, Expenses and Changes in Fund Net Position -
Proprietary Funds Statement 7 42
Statement of Cash Flows - Proprietary Funds Statement 8 43
Notes to Financial Statements 45
Required Supplementary Information:
Budgetary Comparison Schedule - General Fund Statement 9 90
Schedule of Changes in the City's Total OPEB Liability and Related Ratios Statement 10 96
Schedule of Proportionate Share of Net Pension Liability - General Employees
Retirement Fund Statement 11 97
Schedule of Pension Contributions - General Employees Retirement Fund Statement 12 98
Schedule of Proportionate Share of Net Pension Liability - Public Employees Police
and Fire Fund Statement 13 99
Schedule of Pension Contributions - Public Employees Police and Fire Fund Statement 14 100
Schedule of Changes in the Net Pension Liability and Related Ratios -
Chanhassen Fire Department Relief Association Statement 15 101
Schedule of Contributions - Chanhassen Fire Department Relief Association Statement 16 102
Notes to RSI 103
CITY OF CHANHASSEN, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
Combining and Individual Nonmajor Fund Financial Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds Statement 17 114
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Governmental Funds Statement 18 115
Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 19 118
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Special Revenue Funds Statement 20 119
Subcombining Balance Sheet - Nonmajor Debt Service Funds Statement 21 122
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Debt Service Funds Statement 22 123
Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 23 126
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Capital Project Funds Statement 24 128
Special Revenue Funds:
Schedules of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual:
Contribution Fund Statement 25 131
Cemetery Fund Statement 26 132
CATV Statement 27 133
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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May 31, 2022
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, 2021 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 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, and community 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
semi-annual 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, 2021, the maturities of the investments range from 1 day to 10 years, with an average maturity of 1.9 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, 2021 was .99%. 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, 2021 was 26,271. Chanhassen’s residential permits were higher
in 2021 as compared to 2020. In 2020, there were 68 residential permits as compared to 98 in 2021. The total
value of all permits and plan checks in 2021 was $160,438,828.
The City anticipates a continuous uptick in residential permits in the coming years and more diversity in
housing types, including apartments, townhouses and senior housing. Retail/commercial services and
restaurants continue to be in demand. The 118 acre Lifestyle Center, which includes over 500,000 square feet
of office and retail space and 800 housing units (including detached townhouses, senior housing and
apartments) was approved in 2017. They currently have one housing project under construction, with others in
process. Commercial and industrial remodeling and expansion continues the reinvestment into the community.
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
The City expanded its long-term financial planning in 2021 to prepare multi-year financial plans for each of its
funds for the 2022 annual budget. The plans include projections of revenues, expenditures, fund balance and
cash balance for a minimum of five years as well as a comparison to historical actual results and the current
budget. A narrative describes the fund, background, sources and uses of funds, assumptions, and challenges
for the future. These plans form the foundation for making budget decisions for the City’s resources. The
plans will be updated each year and are included in the annual budget.
The City is committed to preserving the value of the community’s over $150 million capital asset investment.
The City prepares annual 5-year capital improvements plan for additions to and replacements of the City’s
infrastructure and capital assets. The City has dedicated a franchise fee revenue as a funding source for the
replacement of the City’s 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.
In 2021 the City began a facilities study to evaluate the current condition and long-term replacement needs of
the City’s facilities. The study evaluated current condition, maintenance planning and future needs. The
results will be incorporated into the 2023 budget and capital improvement plan.
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 for the fiscal year ended December 31, 2020. 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 comprehensive annual financial report 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 nine consecutive years (fiscal years ended 1992 – 2020). 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.
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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,
Kelly Strey, Finance Director
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Chanhassen
Minnesota
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
December 31, 2020
Executive Director/CEO
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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, 2021
Term Expires
Mayor:
Elise Ryan 12/31/2022
Council Members:
Lucy Rehm 12/31/2024
Jerry McDonald 12/31/2022
Haley Schubert 12/31/2024
Dan Campion 12/31/2022
City Manager:
Laurie Hokkanen Appointed
Finance Director:
Kelly Strey Appointed
Community Development Director:
Kathryn Aanenson Appointed
Public Works Director/City Engineer:
Charles Howley Appointed
Parks and Recreation Director:
Jerry Reugemer Appointed
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II. FINANCIAL SECTION
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55 5th Street East, Suite 1400, St. Paul, MN, 55101 www.redpathcpas.com
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Chanhassen, Minnesota
Report on the Audit of the Financial Statements
Opinions
We have audited the 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, 2021, 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.
In our opinion, the accompanying 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, 2021, 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.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America Generally Accepted Auditing Standards and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Our responsibilities under those standards are
further described in the Auditor's Responsibilities for the Audit of the Financial Statements
section of our report. We are required to be independent of the City of Chanhassen,
Minnesota and to meet our other ethical responsibilities, in accordance with the relevant
ethical requirements relating to our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinions.
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Report on Summarized Comparative Information
We have previously audited the City of Chanhassen, Minnesota’s 2020 financial statements,
and we expressed unmodified audit opinions 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 9, 2021. In our opinion, the summarized
comparative information presented herein as of and for the year ended December 31, 2020 is
consistent, in all material respects, with the audited financial statements from which it has
been derived.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial
statements in accordance with accounting principles generally accepted in the United States
of America, and for 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.
In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about City of
Chanhassen, Minnesota’s ability to continue as a going concern for twelve months beyond
the financial statement date, including any currently known information that may raise
substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's report that includes our opinions. Reasonable assurance is a high level of assurance
but is not absolute assurance and therefore is not a guarantee that an audit conducted in
accordance with Generally Accepted Auditing Standards and Government Auditing
Standards will always detect a material misstatement when it exists. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control. Misstatements are considered material if there is a
substantial likelihood that, individually or in the aggregate, they would influence the
judgment made by a reasonable user based on the financial statements.
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In performing an audit in accordance with Generally Accepted Auditing Standards and
Governmental Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the
audit.
Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, and design and perform audit procedures responsive to
those risks. Such procedures include examining, on a test basis, evidence regarding
the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit 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 City of Chanhassen, Minnesota's
internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about City of Chanhassen, Minnesota's ability
to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain
internal control related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, the budgetary comparison schedule, and the
schedules of OPEB and pension information, as listed in the table of contents, be presented to
supplement the basic financial statements. Such information is the responsibility of
management and, 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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Supplementary 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
combining and individual fund financial statements and schedules are presented for purposes
of additional analysis and are not a required part of the basic financial statements. Such
information is the responsibility of management and was derived from and relates directly to
the underlying accounting and other records used to prepare the basic financial statements.
The 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 fund financial
statements and schedules are fairly stated, in all material respects, in relation to the basic
financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other
information comprises the introductory, statistical section and other information but does not
include the basic financial statements and our auditor's report thereon. Our opinions on the
basic financial statements do not cover the other information, and we do not express an
opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the
other information and consider whether a material inconsistency exists between the other
information and the basic financial statements, or the other information otherwise appears to
be materially misstated. If, based on the work performed, we conclude that an uncorrected
material misstatement of the other information exists, we are required to describe it in our
report.
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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
May 31, 2022 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
solely 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 the effectiveness
of the City of Chanhassen, Minnesota 's internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City of Chanhassen, Minnesota’s internal
control over financial reporting and compliance.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
May 31, 2022
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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, 2021. 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 and deferred outflows of the City exceeded its liabilities and deferred inflows at the
close of the most recent fiscal year by $156,326,694 (net position). Of this amount, $28,376,164
(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 $4,997,158.
As of the close of the current fiscal year, governmental funds reported combined ending fund
balances of $16,844,059. Of this amount, $1,056,768 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 $7,989,515. Of that
amount, $69,953 was in a nonspendable form and the remaining $7,919,562 was unassigned.
Total debt decreased by $2,311,480 during the current fiscal year, from $33,371,888 to
$31,060,408. Please refer to the Capital Asset and Debt Administration portion of this analysis
for detailed information regarding the City’s debt.
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 – Pioneer to Flying Cloud
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.
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 8 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
Statements 17 through 27 of this report.
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Management’s Discussion and Analysis
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 $156,326,694 at the close of the most recent fiscal year.
The largest portion of the City’s net position ($126,929,970, or 81%) 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
2021 2020 2021 2020 2021 2020
Assets:
Current and other assets $26,859,081 $23,095,175 $18,593,242 $19,873,878 $45,452,323 $42,969,053
Other noncurrent assets - - - 179,893 - 179,893
Capital assets 74,773,946 77,468,634 81,676,826 77,515,811 156,450,772 154,984,445
Total assets 101,633,027 100,563,809 100,270,068 97,569,582 201,903,095 198,133,391
Total deferred outflows of resources 2,444,527 638,859 516,631 76,590 2,961,158 715,449
Liabilities:
Long-term liabilities outstanding 9,040,482 10,056,602 27,118,843 29,616,581 36,159,325 39,673,183
Other liabilities 7,987,711 6,367,384 593,753 719,555 8,581,464 7,086,939
Total liabilities 17,028,193 16,423,986 27,712,596 30,336,13 6 44,740,789 46,760,122
Total deferred inflows of resources 3,149,306 716,333 647,464 42,849 3,796,770 759,182
Net position:
Net investment in capital assets 70,860,083 73,063,927 56,069,887 55,526,666 126,929,970 128,590,593
Restricted 1,020,560 1,629,219 - - 1,020,560 1,629,219
Unrestricted 12,019,412 9,369,203 16,356,752 11,740,521 28,376,164 21,109,724
Total net position $83,900,055 $84,062,349 $72,426,639 $67 ,267,187 $156,326,694 $151,329,536
Governmental Activities Business-Type Activities Totals
$1,020,560 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 ($28,376,164) 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.
22
Management’s Discussion and Analysis
Governmental Activities
Total net position of the governmental activities decreased $162,294 or 0.20%. The most
significant components of change in net position are as follows:
Net investment in capital assets decreased $2,203,844. This decrease was due to
scheduled bond payments, offset by current year depreciation exceeding capital asset
additions.
Restricted net position decreased $608,659. This decrease occurred due to use of capital
fund reserve funds for park improvements.
Unrestricted net position increased $2,650,209 resulting from a shift in net position into
this category from restricted net position.
Business-Type Activities
The total net position of the City’s business-type activities increased by $5,159,452 primarily
due capital asset contributions. Unrestricted net position increased $4,616,231.
23
Management’s Discussion and Analysis
City of Chanhassen, Minnesota's Changes in Net Position
2021 2020 2021 2020 2021 2020
Revenues:
Program revenues:
Charges for services $5,603,524 $4,392,983 $9,312,636 $7,877,852 $14,916,160 $12,270,835
Operating grants and contributions 6,047,214 14,970,473 38,380 39,552 6,085,594 15,010,025
Capital grants and contributions 4,683,258 4,066,959 8,513,319 2,084,681 13,196,577 6,151,640
General revenues:
General property taxes 12,075,260 11,745,709 - - 12,075,260 11,745,709
Tax increment collections 279,653 236,485 - - 279,653 236,485
Grants and contributions not
restricted to specific programs 311 - - - 311 -
Unrestricted investment earnings (22,856) 368,168 (78,079) 390,604 (100,935) 758,772
Gain on sale of capital assets 84,387 - - 1,795 84,387 1,795
Total revenues 28,750,751 35,780,777 17,786,256 10,394,484 46,537,007 46,175,261
Expenses:
General government 3,545,101 3,503,418 - - 3,545,101 3,503,418
Public safety 4,055,112 3,975,838 - - 4,055,112 3,975,838
Public works 17,282,830 25,142,224 - - 17,282,830 25,142,224
Parks and recreation 2,957,867 2,704,009 - - 2,957,867 2,704,009
Community development 814,146 754,205 - - 814,146 754,205
Interest and fees on long-term debt 72,195 107,993 - - 72,195 107,993
Water - - 5,245,018 4,908,477 5,245,018 4,908,477
Sewer - - 5,025,866 4,312,195 5,025,866 4,312,195
Surface water management - - 2,541,714 1,694,090 2,541,714 1,694,090
Total expenses 28,727,251 36,187,687 12,812,598 10,914,762 41,539,849 47,102,449
Increase (decrease) in net position before transfers 23,500 (406,910) 4,973,658 (520,278) 4,997,158 (927,188)
Transfers (185,794) 239,676 185,794 (239,676) - -
Change in net position (162,294) (167,234) 5,159,452 (759,954) 4,997,158 (927,188)
Net position - beginning 84,062,349 84,229,583 67,267,187 68,027,141 151,329,536 152,256,724
Net position - ending $83,900,055 $84,062,349 $72,426,639 $67,267,187 $156,326,694 $151,329,536
Governmental Activities Business-Type Activities Totals
24
Management’s Discussion and Analysis
Governmental Activities
Revenues
Revenues for the governmental activities decreased by $7,030,026, or 20%. This decrease is
largely due to reimbursements related to the Highway 101 construction project and COVID-19
relief funds received in 2020.
Expenses
Expenses for the governmental activities decreased by $7,460,436, or 21%. This decrease was
largely due to construction costs related to the Highway 101 construction project.
Below are specific graphs which provide comparisons of the governmental activities revenues
and expenses:
Charges for services
19%
Operating grants and
contributions
22%
Capital grants and
contributions
16%
Property taxes
43%
Other
0%
Governmental Activities - Revenues
25
Management’s Discussion and Analysis
General government
12%
Public safety
14%
Public works
61%
Parks and recreation
10%
Community development
3%
Governmental Activities - Expenses
Business-Type Activities
Revenues
Revenues for the business-type activities increased by $7,391,772, or 71%. The increase was
primarily due to an increase in connection charges and contributions of capital assets.
Expenses
Expenses for business-type activities increased by $1,897,836, or 17%. The increase was
primarily due to increased maintenance expense in the current year.
26
Management’s Discussion and Analysis
Below are specific graphs showing the business-type activities revenue and expense
comparisons:
Charges for services
52%
Capital grants and
contributions
48%
Unrestricted investment
earnings
0%
Business-Type Activities - Revenue
Water
41%
Sewer
39%
Surface water management
20%
Business-Type Activities - Expenses
27
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 $16,844,059. Approximately 6% of this total amount ($1,056,768) constitutes
fund balance restricted by external constraints established by creditors, grantors, contributors, or
by state statutory provisions. $70,643 of fund balance is not in a spendable form, $7,819,511 has
been assigned, and $7,897,137 is unassigned.
The General Fund balance increased by $1,240,749 in 2021. The increase was primarily due to
an increase in permit revenues.
The Revolving Assessment Fund balance increased by $589,682. The increase was due to
increased franchise fee revenue and special assessment payments.
The TH101 Improvements – Pioneer to Flying Cloud Fund balance increased $9,100 in 2021.
The nonmajor special revenue funds decreased by $26,826. The decrease was largely in the
Cable TV fund resulting from using reserve funds for current expenditures.
The nonmajor debt service funds decreased by $199,231. The decrease was primarily due to the
transfers out of funds to the sewer fund.
The nonmajor capital project funds decreased by $47,732. The decrease was primarily due to the
use of Park Acquisition and Development reserve funds for capital outlay expenditures.
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 $6,801,185 (Water),
$7,078,219 (Sewer) and $2,477,348 (Surface Water Management).
Net position in the Water Fund increased by $2,677,535. The increase was due to capital
contributions and high connection charge revenue.
Net position in the Sewer Fund increased by $1,130,998. The increase was due to capital
contributions and high connection charge revenue.
Net position in the Surface Water Management Fund increased by $1,350,919. The increase was
mainly due to capital contributions.
28
Management’s Discussion and Analysis
Budgetary Highlights
General Fund
There was one budget amendment to General Fund expenditures in 2021 to increase the M.I.S.
budget by $400,000.
Budgetary Variances – Revenues
The positive General Fund revenue variance of $986,853 was primarily due to building permit
revenue exceeding budget.
Budgetary Variances – Expenditures
Expenditures for the General Fund had a positive variance of $743,896. This was primarily due
to personal services and police contract services being below budget.
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, 2021 amounts to $156,450,772 (net of accumulated depreciation).
This investment in capital assets includes land, easements, buildings, infrastructure, machinery,
and equipment.
29
Management’s Discussion and Analysis
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 $19,912,318 $2,000 $ - $19,914,318
Construction in progress 817,303 594,867 - 1,412,170
Permanent easements 2,021,856 174,136 (514,963) 1,681,029
Total capital assets not being depreciated 22,751,477 771,003 (514,963) 23,007,517
Capital assets being depreciated:
Buildings and structures 24,812,815 - - 24,812,815
Machinery and equipment 10,025,413 216,981 (523,082) 9,719,312
Other improvements 9,455,414 3,087,139 (50,188) 12,492,365
Infrastructure 123,791,209 464,918 (32,660) 124,223,467
Temporary easements 4,762,253 - - 4,762,253
Total capital assets being depreciated 172,847,104 3,769,038 (605,930) 176,010,212
Less accumulated depreciation for:
Buildings and structures 10,083,155 620,160 - 10,703,315
Machinery and equipment 6,163,794 1,990,335 (447,042) 7,707,087
Other improvements 4,845,644 551,581 (44,154) 5,353,071
Infrastructure 94,926,311 397,429 (32,138) 95,291,602
Temporary easements 2,111,043 3,077,665 - 5,188,708
Total accumulated depreciation 118,129,947 6,637,170 (523,334) 124,243,783
Governmental activities capital assets - net $77,468,634 ($2,097,129) ($597,559) $74,773,946
Beginning Ending
Primary Government Balance Increase Decrease Balance
Business-type activities:
Capital assets not being depreciated:
Land $2,108,735 $1,100 $ - $2,109,835
Construction in progress 2,809,179 2,167,096 (186,817) 4,789,458
Permanent easements 2,790,572 4,457,437 - 7,248,009
Total capital assets not being depreciated 7,708,486 6,625,633 (186,817) 14,147,302
Capital assets being depreciated:
Buildings and structures 28,077,579 - - 28,077,579
Machinery and equipment 2,005,434 64,625 (5,251) 2,064,808
Other improvements 120,453,201 1,428,856 - 121,882,057
Total capital assets being depreciated 150,536,214 1,493,481 (5,251) 152,024,444
Less accumulated depreciation for:
Buildings and structures 3,860,806 561,611 - 4,422,41 7
Machinery and equipment 1,112,298 152,081 (5,252) 1,259,127
Other improvements 75,755,785 3,057,591 - 78,813,376
Total accumulated depreciation 80,728,889 3,771,283 (5,252) 84,494,920
Business-type activities capital assets - net 77,515,811 4,347,831 (186,816) 81,676,826
Total capital assets - net $154,984,445 $2,250,702 ($784,375) $156,450,772
Additional information on the City’s capital assets can be found in Note 5.
30
Management’s Discussion and Analysis
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 mainly due to
the addition of drainage and utility easements in new developments.
Long-term debt. At the end of the current fiscal year, the City had total bonds payable
outstanding of $30,225,371 a decrease of $2,600,409 from 2020.
The balance of the bonds payable outstanding is comprised of $3,770,000 in general obligation
bonds, $25,180,000 of revenue bonds which financed capital investments for the water, sewer,
and surface water management operations, and unamortized bond premiums of $1,275,371.
Additional long-term debt in the amount of $929,801 for compensated absences was also
outstanding at the end of 2021.
31
Management’s Discussion and Analysis
City of Chanhassen, Minnesota’s Outstanding Debt
2021 2020 2021 2020 2021 2020
General obligation bonds $3,770,000 $4,130,000 $ - $ - $3,770,000 $4,130,000
Revenue bonds - - 25,180,000 27,285,000 25,180,000 27,285,000
Bond premium 143,863 159,848 1,131,508 1,250,932 1,275,371 1,410,780
Project financing 835,037 546,108 - - 835,037 546,108
Compensated absences 747,455 682,281 182,346 205,033 929,801 887,314
Total $5,496,355 $5,518,237 $26,493,854 $28,740,965 $31,990,209 $34,259,202
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 of
Chanhassen is one of approximately 25 communities in the State of Minnesota to have an AAA
bond rating from Standard & Poor’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 $146,048,763. Of the
City's outstanding debt, $3,770,000 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.
32
BASIC FINANCIAL STATEMENTS
33
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34
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF NET POSITION Statement 1
December 31, 2021
With Comparative Totals For December 31, 2020
Governmental Business-Type
Activities Activities 2021 2020
Assets:
Cash and investments $21,285,717 $17,037,017 $38,322,734 $31,132,561
Restricted cash - - - 5,657,940
Accrued interest receivable 52,352 38,628 90,980 158,628
Due from other governmental units 2,256,079 14,169 2,270,248 2,109,941
Accounts receivable - net 643,508 1,498,584 2,142,092 2,124,881
Property taxes receivable 217,155 - 217,155 87,260
Prepaid items 70,643 12,537 83,180 169,112
Inventories - at cost - 356,330 356,330 94,449
Internal balances 383,971 (383,971) - -
Special assessments receivable 1,949,656 19,948 1,969,604 1,434,281
Receivable not expected to be collected within one year - - - 179,893
Capital assets (net of accumulated depreciation):
Nondepreciable 23,007,517 14,147,302 37,154,819 30,459,963
Depreciable 51,766,429 67,529,524 119,295,953 124,524,482
Total assets 101,633,027 100,270,068 201,903,095 198,133,391
Deferred outflows of resources:
Deferred outflows of resources related to other post employement benefits 15,648 5,282 20,930 16,101
Deferred outflows of resources related to pensions 2,428,879 511,349 2,940,228 699,348
Total deferred outflows of resources 2,444,527 516,631 2,961,158 715,449
Liabilities:
Accounts payable 1,229,075 139,833 1,368,908 1,039,317
Due to other governmental units 153,860 68,151 222,011 1,756,380
Salaries payable 134,987 25,845 160,832 213,949
Contracts payable 2,029,835 36,627 2,066,462 1,262,143
Escrow deposits payable 2,857,935 - 2,857,935 2,294,023
Accrued interest payable 36,208 321,547 357,755 438,939
Unearned revenue 1,545,811 1,750 1,547,561 82,188
Compensated absences payable:
Due within one year 91,042 22,210 113,252 138,921
Due in more than one year 656,413 160,136 816,549 748,393
Other post employment benefits payable:
Due in more than one year 134,192 45,298 179,490 167,622
Bonds payable:
Due within one year 370,000 2,060,000 2,430,000 2,465,000
Due in more than one year 3,543,863 24,251,508 27,795,371 30,360,780
Project financing
Due within one year 145,000 - 145,000 -
Due in more than one year 690,037 - 690,037 546,108
Net pension liability:
Due in more than one year 3,409,935 579,691 3,989,626 5,246,359
Total liabilities 17,028,193 27,712,596 44,740,789 46,760,122
Deferred inflows of resources:
Deferred inflows of resources related to other post employement benefits 52,472 17,712 70,184 75,343
Deferred inflows of resources related to pensions 3,096,834 629,752 3,726,586 683,839
Total deferred inflows of resources 3,149,306 647,464 3,796,770 759,182
Net position:
Net investment in capital assets 70,860,083 56,069,887 126,929,970 128,590,593
Restricted for:
Debt service 594,203 - 594,203 564,714
Park improvements 321,161 - 321,161 991,872
Tax increment 12,970 - 12,970 6,668
Other purposes 92,226 - 92,226 65,965
Unrestricted 12,019,412 16,356,752 28,376,164 21,109,724
Total net position $83,900,055 $72,426,639 $156,326,694 $151,329,536
Totals
The accompanying notes are an integral part of these financial statements.
35
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2021
With Comparative Totals For The Year Ended December 31, 2020
Program Revenues
Charges For
Functions/Programs Expenses Services
Primary government:
Governmental activities:
General government $3,545,101 $2,414,388
Public safety 4,055,112 2,283,340
Public works 17,282,830 275,801
Parks and recreation 2,957,867 613,935
Community development 814,146 16,060
Interest and fees on long-term debt 72,195 -
Total governmental activities 28,727,251 5,603,524
Business-type activities:
Water 5,245,018 4,384,603
Sewer 5,025,866 3,469,282
Surface water management 2,541,714 1,458,751
Total business-type activities 12,812,598 9,312,636
Total primary government $41,539,849 $14,916,160
The accompanying notes are an integral part of these financial statements.
36
Statement 2
Operating Capital
Grants and Grants and Governmental Business-Type
Contributions Contributions Activities Activities 2021 2020
$21,151 $ - ($1,109,562) $ - ($1,109,562) $27,506
311,679 - (1,460,093) - (1,460,093) (1,505,594)
5,713,390 4,683,258 (6,610,381) - (6,610,381) (8,014,037)
994 - (2,342,938) - (2,342,938) (2,433,375)
- - (798,086) - (798,086) (723,779)
- - (72,195) - (72,195) (107,993)
6,047,214 4,683,258 (12,393,255) 0 (12,393,255) (12,757,272)
209 3,570,326 - 2,710,120 2,710,120 (477,691)
209 2,536,548 - 980,173 980,173 (571,540)
37,962 2,406,445 - 1,361,444 1,361,444 136,554
38,380 8,513,319 0 5,051,737 5,051,737 (912,677)
$6,085,594 $13,196,577 (12,393,255) 5,051,737 (7,341,518) (13,669,949)
General revenues:
General property taxes 12,075,260 - 12,075,260 11,745,709
Tax increment collections 279,653 - 279,653 236,485
Grants and contributions not
restricted to specific programs 311 - 311 -
Unrestricted investment earnings (22,856) (78,079) (100,935) 758,772
Gain on sale of capital assets 84,387 - 84,387 1,795
Transfers (185,794) 185,794 - -
Total general revenues and transfers 12,230,961 107,715 12,338,676 12,742,761
Change in net position (162,294) 5,159,452 4,997,158 (927,188)
Net position - January 1 84,062,349 67,267,187 151,329,536 152,256,724
Net position - December 31 $83,900,055 $72,426,639 $156,326,694 $151,329,536
Program Revenues Net (Expense) Revenue and
Changes in Net Position
Totals
The accompanying notes are an integral part of these financial statements.
37
CITY OF CHANHASSEN, MINNESOTA
BALANCE SHEET Statement 3
GOVERNMENTAL FUNDS
December 31, 2021
With Comparative Totals For December 31, 2020
605 TH101
Improvements - Other
601 Revolving Pioneer to Governmental
General Fund Assessment Fund Flying Cloud Funds
Assets:2021 2020
Cash and investments $11,018,821 $2,912,026 $114,467 $7,240,403 $21,285,717 $18,103,575
Accrued interest receivable 28,864 6,264 - 17,224 52,352 75,748
Due from other governmental units 209,777 733,765 1,311,253 1,284 2,256,079 2,095,437
Due from other funds 7,425 - - - 7,425 -
Accounts receivable - net 24,874 464,568 - 154,066 643,508 645,807
Property taxes receivable 198,166 6,891 - 12,098 217,155 87,260
Prepaid items 69,953 - - 690 70,643 113,465
Interfund loan receivable - - - 383,971 383,971 568,962
Special assessments receivable - 1,630,440 - 319,216 1,949,656 1,404,921
Total assets $11,557,880 $5,753,954 $1,425,720 $8,128,952 $26,866,506 $23,095,175
Liabilities, Deferred Inflows of Resources,
and Fund Balances
Liabilities:
Accounts payable $352,863 $69,143 $88,597 $718,472 $1,229,075 $909,171
Due to other governmental units 25,613 - - 128,247 153,860 1,702,402
Escrow deposits payable 2,857,935 - - - 2,857,935 2,294,023
Due to other funds - - - 7,425 7,425 -
Salaries payable 132,940 - - 2,047 134,987 173,765
Contracts payable - 777,478 1,252,357 - 2,029,835 1,166,302
Unearned revenue 83,152 20,735 - 1,441,924 1,545,811 81,013
Total liabilities 3,452,503 867,356 1,340,954 2,298,115 7,958,928 6,326,676
Deferred inflows of resources:
Unavailable revenue 115,862 1,628,441 - 319,216 2,063,519 1,490,182
Fund balances:
Nonspendable 69,953 - - 690 70,643 113,465
Restricted - - - 1,056,768 1,056,768 1,669,927
Assigned - 3,258,157 84,766 4,476,588 7,819,511 6,809,934
Unassigned 7,919,562 - - (22,425) 7,897,137 6,684,991
Total fund balances 7,989,515 3,258,157 84,766 5,511,621 16,844,059 15,278,317
Total liabilities, deferred inflows of resources,
and fund balances $11,557,880 $5,753,954 $1,425,720 $8,128,952 $26,866,506 $23,095,175
Fund balance reported above $16,844,059 $15,278,317
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.74,773,946 77,468,634
Other long-term assets are not available to pay for current period expenditures and, therefore, are
reported as unavailabe revenue in the funds.2,063,519 1,490,182
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).(9,781,469) (10,174,784)
Net position of governmental activities $83,900,055 $84,062,349
Total Governmental Funds
The accompanying notes are an integral part of these financial statements.
38
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND Statement 4
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2021
With Comparative Totals For The Year Ended December 31, 2020
605 TH101
Improvements - Other
601 Revolving Pioneer to Governmental
General Fund Assessment Fund Flying Cloud Funds
Revenues:2021 2020
General property taxes $9,483,858 $930,000 $ - $1,632,800 $12,046,658 $11,800,538
Tax increment collections - - - 279,653 279,653 236,485
Licenses and permits 2,272,079 - - 336,215 2,608,294 1,574,780
Intergovernmental 385,630 913,591 5,286,361 298,264 6,883,846 18,569,329
Franchise fees - 1,857,692 - 162,120 2,019,812 1,826,255
Special assessments - 987,099 - 332 987,431 464,373
Charges for services 523,708 - - 11,900 535,608 546,809
Fines and forfeits 78,673 - - - 78,673 73,800
Investment earnings 15,664 (12,877) - (25,643) (22,856) 368,168
Contributions and donations 21,593 - - 63,143 84,736 56,101
Refunds and reimbursements 53,016 - - 31,899 84,915 88,945
Other 270,832 - - 4,600 275,432 263,202
Total revenues 13,105,053 4,675,505 5,286,361 2,795,283 25,862,202 35,868,785
Expenditures:
Current:
General government 2,628,898 - - 823,375 3,452,273 3,361,771
Public safety 3,821,823 - - 36,685 3,858,508 3,786,905
Public works 2,736,052 167,186 - 304,590 3,207,828 20,127,051
Parks and recreation 2,086,932 - - 160,553 2,247,485 1,854,471
Community development 590,599 - - 295,505 886,104 803,234
Capital outlay:
General government - - - - - 833,034
Public safety - - - - - 387,528
Public works - 3,918,637 5,277,261 - 9,195,898 4,938,481
Parks and recreation - - - 1,183,802 1,183,802 1,121,223
Debt service:
Principal - - - 360,000 360,000 1,585,000
Interest and paying agent fees - - - 92,680 92,680 143,970
Total expenditures 11,864,304 4,085,823 5,277,261 3,257,190 24,484,578 38,942,668
Revenues over (under) expenditures 1,240,749 589,682 9,100 (461,907) 1,377,624 (3,073,883)
Other financing sources (uses):
Sale of capital assets - - - 84,983 84,983 46,443
Project financing issued - - - 288,929 288,929 546,108
Transfers in - - - - - 2,852,877
Transfers out - - - (185,794) (185,794) (40,724)
Total other financing sources (uses)0 0 0 188,118 188,118 3,404,704
Net change in fund balance 1,240,749 589,682 9,100 (273,789) 1,565,742 330,821
Fund balance - January 1 6,748,766 2,668,475 75,666 5,785,410 15,278,317 14,947,496
Fund balance - December 31 $7,989,515 $3,258,157 $84,766 $5,511,621 $16,844,059 $15,278,317
Total Governmental Funds
The accompanying notes are an integral part of these financial statements.
39
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, 2021
With Comparative Totals For The Year Ended December 31, 2020
2021 2020
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)$1,565,742 $330,821
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 1,723,700 7,280,266
Depreciation expense (6,637,170) (6,405,894)
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 2,219,378 235,596
Transfer of capital assets to Enterprise Funds - (2,572,477)
Gain (loss) on disposal/trade-ins of capital assets (596)(40,307)
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 28,602 (54,829)
Change in deferred and delinquent special assessments 544,735 (303,606)
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.
Project financing (288,929) (546,108)
Repayment of principal 360,000 1,585,000
Amortization of bond premiums 15,985 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 (65,174)671
Change in other post employment benefits payable (1,405)50,208
Change in accrued interest payable 4,500 19,992
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.368,338 237,448
Change in net position of governmental activities (Statement 2)($162,294) ($167,234)
The accompanying notes are an integral part of these financial statements.
40
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF NET POSITION Statement 6
PROPRIETARY FUNDS
December 31, 2021
With Comparative Totals For December 31, 2020
Water Sewer
Surface Water
Management 2021 2020
Assets:
Current assets:
Cash and cash equivalents $7,607,062 $7,013,372 $2,416,583 $17,037,017 $13,028,986
Restricted cash - - - - 5,657,940
Accrued interest receivable 16,153 17,201 5,274 38,628 82,880
Due from other governmental units 1,081 85 13,003 14,169 14,504
Accounts receivable - net 583,211 625,719 289,654 1,498,584 1,479,074
Prepaid items 5,409 4,023 3,105 12,537 55,647
Water meter inventory 356,330 - - 356,330 94,449
Special assessments receivable 19,948 - - 19,948 29,360
Total current assets 8,589,194 7,660,400 2,727,619 18,977,213 20,442,840
Noncurrent assets:
Receivables not expected to be collected within one year - - - - 179,893
Capital assets:
Nondepreciable 7,190,463 3,572,710 3,384,129 14,147,302 7,708,486
Depreciable 82,585,076 37,019,453 32,419,915 152,024,444 150,536,214
Total capital assets 89,775,539 40,592,163 35,804,044 166,171,746 158,244,700
Less: Allowance for depreciation (37,533,493) (27,351,418) (19,610,009) (84,494,920) (80,728,889)
Net capital assets 52,242,046 13,240,745 16,194,035 81,676,826 77,515,811
Total noncurrent assets 52,242,046 13,240,745 16,194,035 81,676,826 77,695,704
Total assets 60,831,240 20,901,145 18,921,654 100,654,039 98,138,544
Deferred outflows of resources:
Related to other post employment benefits 2,306 1,910 1,066 5,282 4,063
Related to pensions 228,432 172,994 109,923 511,349 72,527
Total deferred outflows of resources 230,738 174,904 110,989 516,631 76,590
Liabilities:
Current liabilities:
Accounts payable 89,592 31,847 18,394 139,833 130,146
Due to other governmental units 5,534 62,617 - 68,151 53,978
Salaries payable 12,665 6,958 6,222 25,845 40,184
Contracts payable 34,273 - 2,354 36,627 95,841
Accrued interest payable 290,628 17,711 13,208 321,547 398,231
Unearned revenue - - 1,750 1,750 1,175
Interfund loan payable - due within one year 193,970 - - 193,970 193,593
Compensated absences payable - due within one year 9,478 7,648 5,084 22,210 32,101
Bonds payable - due within one year 1,820,000 125,000 115,000 2,060,000 2,105,000
Total current liabilities 2,456,140 251,781 162,012 2,869,933 3,050,249
Noncurrent liabilities:
Other post employment benefits 19,778 16,375 9,145 45,298 42,302
Interfund loan payable 190,001 - - 190,001 375,369
Compensated absences payable 68,336 55,145 36,655 160,136 172,932
Bonds payable 21,526,577 1,602,439 1,122,492 24,251,508 26,430,932
Net pension liability 245,222 206,893 127,576 579,691 833,314
Total noncurrent liabilities 22,049,914 1,880,852 1,295,868 25,226,634 27,854,849
Total liabilities 24,506,054 2,132,633 1,457,880 28,096,567 30,905,098
Deferred inflows of resources:
Related to other post employment benefits 7,734 6,402 3,576 17,712 19,014
Related to pensions 279,466 212,990 137,296 629,752 23,835
287,200 219,392 140,872 647,464 42,849
Net position:
Net investment in capital assets 29,467,539 11,645,805 14,956,543 56,069,887 55,526,666
Unrestricted 6,801,185 7,078,219 2,477,348 16,356,752 11,740,521
Total net position $36,268,724 $18,724,024 $17,433,891 $72,426,639 $67,267,187
Totals
The accompanying notes are an integral part of these financial statements.
41
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND Statement 7
CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For The Year Ended December 31, 2021
With Comparative Totals For The Year Ended December 31, 2020
Water Sewer
Surface Water
Management 2021 2020
Operating revenues:
Charges for services $4,231,073 $3,392,197 $1,434,752 $9,058,022 $7,641,980
Penalties and other 136,115 76,255 23,952 236,322 180,639
Intergovernmental 209 209 37,962 38,380 39,552
Total operating revenues 4,367,397 3,468,661 1,496,666 9,332,724 7,862,171
Operating expenses:
Personal services 853,164 438,624 338,304 1,630,092 1,751,891
Materials and supplies 391,556 39,880 17,834 449,270 363,191
Contractual services:
MCES - 2,476,920 - 2,476,920 2,120,208
Other 721,824 383,668 380,269 1,485,761 1,503,259
Repairs and maintenance 762,056 719,329 847,666 2,329,051 520,617
Depreciation 1,915,739 919,246 936,298 3,771,283 3,834,373
Total operating expenses 4,644,339 4,977,667 2,520,371 12,142,377 10,093,539
Operating income (loss)(276,942) (1,509,006) (1,023,705) (2,809,653) (2,231,368)
Nonoperating revenues (expenses):
Investment earnings (32,585) (34,969) (10,525) (78,079) 390,604
Refunds and reimbursements 17,415 830 47 18,292 55,233
Interest and fiscal charges (600,679) (48,199) (21,343) (670,221) (797,756)
Gain (loss) on disposal of capital assets - - - - (21,673)
Total nonoperating revenues (expenses)(615,849) (82,338) (31,821) (730,008) (373,592)
Income before contributions and transfers (892,791) (1,591,344) (1,055,526) (3,539,661) (2,604,960)
Transfers in - 185,794 - 185,794 -
Transfers out - - - - (2,812,153)
Capital contributions:
Contributions of capital assets 1,770,049 1,745,738 2,181,286 5,697,073 3,662,274
Special assessments 5,994 30 - 6,024 3,879
Connection charges 1,794,283 790,780 225,159 2,810,222 991,006
Total contributions and transfers 3,570,326 2,722,342 2,406,445 8,699,113 1,845,006
Change in net position 2,677,535 1,130,998 1,350,919 5,159,452 (759,954)
Net position - January 1 33,591,189 17,593,026 16,082,972 67,267,187 68,027,141
Net position - December 31 $36,268,724 $18,724,024 $17,433,891 $72,426,639 $67,267,187
Capital Transfers -
Contributions Net
Amounts reported above $8,513,319 $185,794
Amounts reported for business-type activities in the
statement of activities are different because:
Transfer in of capital assets from governmental activities - -
Amounts reported on the statement of activities $8,513,319 $185,794
Totals
The accompanying notes are an integral part of these financial statements.
42
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF CASH FLOWS Statement 8
PROPRIETARY FUNDS
For The Year Ended December 31, 2021
With Comparative Totals For The Year Ended December 31, 2020
Water Sewer
Surface Water
Management 2021 2020
Cash flows from operating activities:
Receipts from customers and users $4,384,881 $3,474,443 $1,635,868 $9,495,192 $8,129,638
Payment to suppliers (2,077,852) (3,627,522) (1,261,015) (6,966,389) (4,645,412)
Payment to employees (905,038) (484,164) (363,969) (1,753,171) (1,748,534)
Miscellaneous revenue 17,415 830 47 18,292 55,233
Net cash flows provided by (used by) operating activities 1,419,406 (636,413) 10,931 793,924 1,790,925
Cash flows from noncapital financing activities:
Transfers in - 185,794 - 185,794 -
Interfund loan receivable - collections - - - - -
Interfund loan payable - (payments)(193,593) - - (193,593) (193,225)
Net cash flows used by
noncapital financing activities (193,593) 185,794 0 (7,799) (193,225)
Cash flows from capital and related financing activities:
Acquisition of capital assets (1,694,680) (253,883) (308,508) (2,257,071) (578,491)
Connection charges 1,794,283 790,780 225,159 2,810,222 992,613
Intergovernmental revenue - - - - -
Special assessment collections 14,797 639 - 15,436 17,890
Transfers out - - - - (2,812,153)
Reallocation of bond proceeds (962,030) 962,030 - - 6,768,274
Principal paid on bonds (1,865,000) (125,000) (115,000) (2,105,000) (1,870,000)
Interest and fiscal charges (754,301) (58,224) (45,203) (857,728) (796,068)
Net cash flows used by capital
and related financing activities (3,466,931) 1,316,342 (243,552) (2,394,141) 1,722,065
Cash flows from investing activities:
Investment earnings (11,500) (21,441) (8,952) (41,893) 382,538
Net increase (decrease) in cash and cash equivalents (2,252,618) 844,282 (241,573) (1,649,909) 3,702,303
Cash and cash equivalents - January 1 9,859,680 6,169,090 2,658,156 18,686,926 14,984,623
Cash and cash equivalents - December 31 $7,607,062 $7,013,372 $2,416,583 $17,037,017 $18,686,926
Reconciliation of operating loss to net cash
provided (used) by operating activities:
Operating loss ($276,942) ($1,509,006) ($1,023,705) ($2,809,653) ($2,231,368)
Adjustments to reconcile operating loss
to net cash flows from operating activities:
Miscellaneous revenue 17,415 830 47 18,292 55,233
Depreciation 1,915,739 919,246 936,298 3,771,283 3,834,373
Changes in assets and liabilities, deferred outflows and inflows:
Decrease (increase) in receivables 17,484 5,782 137,452 160,718 267,117
Decrease (increase) in prepaid items 15,435 15,014 12,661 43,110 (28,166)
Decrease (increase) in inventory (261,881) - - (261,881) (40,806)
Decrease (increase) in deferred outflows of resources (197,819) (147,973) (94,249) (440,041) (6,657)
Increase (decrease) in payables 30,849 (39,359) (33,382) (41,892) (68,265)
Increase (decrease) in other post employment benefits 1,308 1,083 605 2,996 42,302
Increase (decrease) in net pension liability (114,025) (85,268) (54,330) (253,623) 95,348
Increase (decrease) in deferred inflows of resources 271,843 203,238 129,534 604,615 (128,186)
Total adjustments 1,696,348 872,593 1,034,636 3,603,577 4,022,293
Net cash flows provided by (used in) operating activities $1,419,406 ($636,413) $10,931 $793,924 $1,790,925
Noncash investing, capital and financing activities:
Capital assets in the amount of $1,770,049 and $1,908,677 were contributed to the Water Fund in 2021 and 2020, respectively.
Capital assets in the amount of $1,745,738 and $1,149,307 were contributed to the Sewer Fund in 2021 and 2020, respectively.
Capital assets in the amount of $2,181,286 and $604,290 were contributed to the Surface Water Fund in 2021 and 2020, respectively.
Totals
The accompanying notes are an integral part of these financial statements.
43
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44
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Chanhassen (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
The City has one component unit, the Economic Development Authority (EDA). The financial
statements of the EDA are included as a blended component unit because its governing body is
substantively the same as the City Council, the City is in a relationship of financial burden with the
EDA, and because management of the City have operational responsibilities for 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.
45
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
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 and proprietary funds. 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.
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 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.
46
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
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, an annual tax levy and franchise fees.
TH101 Improvements – Pioneer to Flying Cloud (605) 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.
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.
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, administrative
expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are
reported as nonoperating revenues and expenses.
47
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
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. 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.
The following is a listing of funds whose expenditures exceeded budgeted appropriations:
Budgeted
Expenditures Actual Expenditures
Expenditures Over
Budget
CATV Fund $172,800 $247,536 ($74,736)
48
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
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 defined
metropolitan area. The valuation "shared" is a portion of commercial/industrial property valuation growth
since 1971.
49
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
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.
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.
50
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
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. In accordance
with GASB 89, which the City early implemented for the year ended December 31, 2018, interest incurred
during the construction phase of capital assets of business-type activities is recognized as an expense in the
period in which the cost is incurred.
Capital assets of the City are depreciated/amortized using the straight-line method over the following
estimated useful lives:
Buildings and structures 20 –50 years
Machinery and equipment (including software) 3 –30 years
Drainage systems 30 years
Water and sewer lines 30 years
Streets 25 –50 years
Trails 15 years
Sidewalks 25 years
Other improvements 7 –40 years
Temporary easements 2 years
M. COMPENSATED ABSENCES
The City compensates all employees upon termination for unused vacation and unused sick time up to a
maximum based upon length of service. The City compensates nonexempt employees for unused comp
time. All vacation pay and comp time is accrued when incurred in the government-wide and proprietary
fund financial statements. A liability for these amounts is reported in governmental funds only if they have
matured, for example, as a result of employee resignations and retirements. In accordance with the
provisions of 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.
51
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
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.
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.
52
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
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.
S. COMPARATIVE TOTALS
The basic financial statements, required supplementary information, and combining and individual fund
financial statements and schedules 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, 2020, from which the summarized information was derived.
53
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
T. PENSION PLANS
COST SHARING MULTIPLE – EMPLOYER PLANS
For purposes of measuring the net pension liability, deferred outflows and inflows of resources, and
pension expense, information about the fiduciary net position of the Public Employees Retirement
Association (PERA) and additions to and 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.
SINGLE EMPLOYER PLAN
For purposes of measuring the net pension liability (asset), deferred outflows of resources and deferred
inflows of resources related to pensions, and pension expense, information about the fiduciary net position
of the Chanhassen Fire Department Relief Association (Relief) and additions to/deductions from the
Relief’s fiduciary net position have been determined on the same basis as they were reported by the Relief.
For this purpose, benefit payments 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
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 ($9,781,469) difference are as follows:
Bonds payable ($3,770,000)
Unamortized bond premium (143,863)
Project financing (835,037)
Accrued interest payable (36,208)
Compensated absences payable (747,455)
Other post employment benefits payable (134,192)
Net pension liability (3,409,935)
Deferred outflows of resources related to pensions 2,428,879
Deferred inflows of resources related to pensions (3,096,834)
Deferred outflows of resources related to OPEB 15,648
Deferred inflows of resources related to OPEB (52,472)
Net adjustment to decrease fund balances - total governmental
funds to arrive at net position - governmental activities ($9,781,469)
54
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
V. RECLASSIFICATIONS
Certain amounts presented in the prior year data have been reclassified in order to be consistent with
current year’s presentation.
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, 2021, 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. Minnesota Statute 118.A.03 identifies
allowable forms of collateral.
At December 31, 2021, the carrying amount of the City’s deposits with financial institutions was
$2,852,816.
55
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
B. INVESTMENTS
Minnesota Subject to rating, yield, maturity and issuer requirements as prescribed by statue, Minnesota
Statutes 118A.04 and 118A.05 authorized the City to invest in United States securities, state and local
securities, commercial paper, time deposits, high-risk mortgage-backed securities, temporary general
obligation bonds, repurchase agreements, Minnesota joint powers investment trust and guaranteed
investment contracts.
As of December 31, 2021, the City had the following investments and maturities:
Fair Less
Investment Type Rating Value Than 1 1-5 6-10
Money Market NR $18,202,741 $18,202,741 $ - $ -
Brokered Certificates of Deposit NR 1,751,415 1,248,406 503,009 -
Municipal Bonds (1)9,380,508 2,222,064 5,561,079 1,597,365
Federal National Mortgage Assn. Notes NR 753,750 - - 753,750
Federal Home Loan Mortgage Corp. Notes Aaa 982,650 - 982,650 -
Federal Home Loan Bank Notes Aaa 2,225,019 506,700 722,519 995,800
Federal Farm Credit Bank Aaa 2,173,200 606,000 1,567,200 -
Total $35,469,283 $22,785,911 $9,336,457 $3,346,915
(1) $2,577,394 are rated Aaa, $2,423,936 are rated Aa1,Total investments $35,469,283
$1,578,272 are rated Aa2, $297,000 are rated A1, $2,060,918 Deposits 2,852,816
and $442,988 are rated AA.Petty cash 635
Total cash and investments $38,322,734
NR - Not Rated
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 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, 2021:
Investment Type 12/31/2021 Level 1 Level 2 Level 3
Investments at fair value:
Brokered Certificates of Deposit $1,751,415 $ - $1,751,415 $ -
Municipal Bonds 9,380,508 - 9,380,508 -
Federal National Mortgage Assn. Notes 753,750 - 753,750 -
Federal Home Loan Mortgage Corp. Notes 982,650 - 982,650 -
Federal Home Loan Bank Notes 2,225,019 - 2,225,019 -
Federal Farm Credit Bank 2,173,200 - 2,173,200 -
Total/subtotal 17,266,542 $0 $17,266,542 $0
Investments not categorized:
Money Market 18,202,741
Total $35,469,283
Fair Value Measurement Using
56
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
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 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). Investments in a single issuer
exceeding 5% of the City’s overall investment portfolio are in various holdings as follows:
Federal Home Loan Bank Notes 6%
Federal Farm Credit Bank 6%
57
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
Note 3 RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2021 are as follows:
Interfund Delinquent Special
Loan Property Assessments
Receivable Taxes Receivable Total
Major Funds:
General $ - $49,347 $ - $49,347
Revolving Assessment Fund - - 1,346,062 1,346,062
Water - - 15,950 15,950
Nonmajor Funds 190,002 - 319,216 509,218
$190,002 $49,347 $1,681,228 $1,920,577
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 2021, the various
components of unavailable revenue were as follows:
Revolving
General Assessment Nonmajor
Fund Fund Funds Total
Delinquent property taxes receivable $115,862 $ - $ - $115,862
Special assessments not yet due - 1,628,441 319,216 1,947,657
Total unavailable revenue $115,862 $1,628,441 $319,216 $2,063,519
Major Funds
58
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
Note 5 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2021 was as follows:
Beginning Ending
Primary Government Balance Increase Decrease Balance
Governmental activities:
Capital assets not being depreciated:
Land $19,912,318 $2,000 $ - $19,914,318
Construction in progress 817,303 594,867 - 1,412,170
Permanent easements 2,021,856 174,136 (514,963) 1,681,029
Total capital assets not being depreciated 22,751,477 771,003 (514,963) 23,007,517
Capital assets being depreciated:
Buildings and structures 24,812,815 - - 24,812,815
Machinery and equipment 10,025,413 216,981 (523,082) 9,719,312
Other improvements 9,455,414 3,087,139 (50,188) 12,492,365
Infrastructure 123,791,209 464,918 (32,660) 124,223,467
Temporary easements 4,762,253 - - 4,762,253
Total capital assets being depreciated 172,847,104 3,769,038 (605,930) 176,010,212
Less accumulated depreciation for:
Buildings and structures 10,083,155 620,160 - 10,703,315
Machinery and equipment 6,163,794 1,990,335 (447,042) 7,707,087
Other improvements 4,845,644 551,581 (44,154) 5,353,071
Infrastructure 94,926,311 397,429 (32,138) 95,291,602
Temporary easements 2,111,043 3,077,665 - 5,188,708
Total accumulated depreciation 118,129,947 6,637,170 (523,334) 124,243,783
Governmental activities capital assets - net $77,468,634 ($2,097,129) ($597,559) $74,773,946
Beginning Ending
Primary Government Balance Increase Decrease Balance
Business-type activities:
Capital assets not being depreciated:
Land $2,108,735 $1,100 $ - $2,109,835
Construction in progress 2,809,179 2,167,096 (186,817) 4,789,458
Permanent easements 2,790,572 4,457,437 - 7,248,009
Total capital assets not being depreciated 7,708,486 6,625,633 (186,817) 14,147,302
Capital assets being depreciated:
Buildings and structures 28,077,579 - - 28,077,579
Machinery and equipment 2,005,434 64,625 (5,251) 2,064,808
Other improvements 120,453,201 1,428,856 - 121,882,057
Total capital assets being depreciated 150,536,214 1,493,481 (5,251) 152,024,444
Less accumulated depreciation for:
Buildings and structures 3,860,806 561,611 - 4,422,417
Machinery and equipment 1,112,298 152,081 (5,252) 1,259,127
Other improvements 75,755,785 3,057,591 - 78,813,376
Total accumulated depreciation 80,728,889 3,771,283 (5,252) 84,494,920
Business-type activities capital assets - net 77,515,811 4,347,831 (186,816) 81,676,826
Total capital assets - net $154,984,445 $2,250,702 ($784,375) $156,450,772
59
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities:
General government $310,863
Public safety 233,216
Public works 5,179,481
Parks and recreation 913,610
Total depreciation expense - governmental activities $6,637,170
Business-type activities:
Water $1,915,739
Sewer 919,246
Surface water management 936,298
Total depreciation expense - business-type activities $3,771,283
Note 6 CITY INDEBTEDNESS
The City issues long-term debt 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, 2021, the governmental activities long-term debt of the City consisted of the following:
Final Authorized
Issue Maturity Interest And Outstanding
Date Date Rate Issued 12/31/2021
General Long-Term Debt:
General Obligation Bonds:
G.O. Bonds, Series 2016A 3/3/2016 2/1/2030 2.00% - 3.00% $4,805,000 $3,770,000
Bond premium 239,773 143,863
Total general obligation bonds 5,044,773 3,913,863
Project financing N/A 835,037
Compensated absences payable N/A 747,455
Total City indebtedness - governmental activities $5,044,773 $5,496,355
60
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
BUSINESS-TYPE ACTIVITIES
As of December 31, 2021, 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 12/31/2021
G.O. Revenue Bonds:
Water Revenue Bonds, Series 2011A 10/6/2011 2/1/2022 0.30% - 2.15%$5,920,000 $275,000
Water Revenue Bonds, Series 2011B 10/6/2011 2/1/2025 2.00% - 3.00%3,720,000 2,180,000
Water and Sewer Revenue Bonds, Series 2012A 11/15/2012 2/1/2023 1.00% - 1.55% 1,245,000 265,000
Water Revenue Bonds, Series 2016A 3/3/2016 2/1/2026 2.00% - 3.00% 1,565,000 835,000
Water Revenue Bonds, Series 2016B 12/29/2016 2/1/2042 3.50% - 4.00% 3,630,000 3,630,000
Water Revenue Bonds, Series 2017A 2/1/2017 2/1/2038 2.00% - 4.00% 10,000,000 9,145,000
Water Revenue Bonds, Series 2018A 3/15/2018 2/1/2030 3.00% - 4.00%3,595,000 2,805,000
Water, Sewer, and Surface Water Revenue Bonds, Series 2020A 4/2/2020 2/1/2031 2.00% - 3.00% 6,220,000 6,045,000
Bond premium 1,626,772 1,131,508
Total G.O. revenue bonds 37,521,772 26,311,508
Compensated absences payable N/A 182,346
Total City indebtedness - business-type activities $37,521,772 $26,493,854
GOVERNMENTAL ACTIVITIES
Annual debt service requirements to maturity for the governmental activities long-term debt are as follows:
Year Ending
December 31, Principal Interest
2022 $370,000 $81,350
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 $3,770,000 $370,800
General Obligation Bonds
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, 2021
BUSINESS-TYPE ACTIVITIES
Annual debt service requirements to maturity for the business-type long-term debt are as follows:
Year Ending G.O. Revenue Bonds
December 31, Principal Interest
2022 $2,060,000 $742,422
2023 1,845,000 685,634
2024 1,755,000 631,013
2025 1,810,000 576,763
2026 1,275,000 530,538
2027 1,550,000 488,188
2028 1,600,000 440,938
2029 1,650,000 395,563
2030 1,690,000 352,263
2031 1,150,000 315,488
2032 690,000 290,288
2033 715,000 269,213
2034 735,000 247,463
2035 755,000 225,113
2036 780,000 202,088
2037 800,000 176,388
2038 830,000 147,863
2039 825,000 118,900
2040 855,000 88,431
2041 885,000 54,700
2042 925,000 18,500
Total $25,180,000 $6,997,757
It is not practicable to determine the specific year for payment of long-term accrued compensated absences.
62
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2021 was as follows:
Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Governmental activities:
General obligation bonds $4,130,000 $ - ($360,000) $3,770,000 $370,000
Bond premium 159,848 - (15,985) 143,863 -
Project financing 546,108 288,929 - 835,037 145,000
Compensated absences 682,281 644,701 (579,527) 747,455 91,042
Total governmental activity
long-term liabilities $5,518,237 $933,630 ($955,512) $5,496,355 $606,042
Business-type activities:
G.O. revenue bonds $27,285,000 $ - ($2,105,000) $25,180,000 $2,060,000
Bond premium 1,250,932 - (119,424) 1,131,508 -
Compensated absences 205,033 167,016 (189,703) 182,346 22,210
Total business-type activity
long-term liabilities $28,740,965 $167,016 ($2,414,127) $26,493,854 $2,082,210
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, 2021 is backed by the full faith and credit of the
City. General Obligation Revenue Bonds are serviced by the Sewer, Water and Surface Water Management
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, 2021 is $4,079,822.
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.
63
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
PROJECT FINANCING
The City has a Joint Powers Agreement with Carver County for the Lyman Boulevard- Phase 3 project. The County
is administering the project. The City is paying their share over the next five years at 0% interest. The City has a
Joint Powers Agreement with Carver County for the pedestrian trail to Arboretum. The City is paying its share over
the next four years at 0% interest. The payment schedule is as follows:
Year Ending
December 31, Lyman Blvd Ped Trail Total
2022 $145,000 $ - $145,000
2023 145,000 96,310 241,310
2024 145,000 96,310 241,310
2025 111,108 96,309 207,417
Total $546,108 $288,929 $835,037
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
2016A Refunding bonds Refunding of 2008A bonds Property taxes 100%n/a 2019 - 2030 $4,140,800 $452,300 $479,800
2011A Water Revenue bonds Water infrastructure improvements Water charges 100% 12.0% 2012 - 2021 $277,956 $738,163 $6,161,471
- refunded the 2005B bonds
2011B Water Revenue bonds Water infrastructure improvements Water charges 100% 9.3% 2012 - 2024 $2,313,800 $572,900 $6,161,471
- refunded the 2005B bonds
2012A Water & Sewer Revenue Purchase of meter reading equipment Water and 100% 1.3% 2013 - 2022 $269,049 $134,757 $10,420,703
bonds sewer charges
2016A Water Revenue bonds Water infrastructure improvements Water charges 100% 4.1% 2016 - 2025 $884,850 $178,925 $4,367,188
2016B Water Revenue bonds West Water Treatment Plant Water charges 100% 2.2% 2017 - 2041 $6,258,127 $138,238 $6,161,471
2017A Water Revenue bonds West Water Treatment Plant Water charges 100% 7.2% 2018 - 2038 $12,162,000 $443,350 $6,161,471
2018A Water Revenue bonds West Water Treatment Plant Water charges 100% 5.8% 2019 - 2030 $3,201,700 $355,875 $6,161,471
2020A Water, Sewer, & Surface Water, Sewer, and Surface Water Water, sewer, and 100%n/a 2021 - 2031 $6,810,275 $396,174 $12,104,566
Water Revenue bonds Infrastructure improvements surface water charges
Current YearRevenue Pledged
64
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
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,
2021.
Future scheduled tax levies for all bonds outstanding at December 31, 2021 totaled $3,913,718.
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 the Public Employees Retirement Association of Minnesota (PERA). PERA’s defined benefit
pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356.
PERA’s defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue
Code.
1. General Employees Retirement Fund (GERF)
All full-time (with the exception of employees covered by PEPFF) and certain part-time employees of the
City are covered by the General Employees Retirement Fund (GERF). GERF members belong to the
Coordinated Plan. Coordinated Plan members are covered by Social Security.
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 local relief associations 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. 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.
65
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
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
Coordinated members. Members hired prior to July 1, 1989 receive the higher of Method 1 or Method 2
formulas. Only Method 2 is used for members hired after June 30, 1989. Under Method 1, the accrual rate
for Coordinated members is 1.2% of average salary for each of the first ten years of service and 1.7% of
average salary for each additional year. Under Method 2, the accrual rate for Coordinated Plan members is
1.7% of average salary for all years 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.
Benefit increases are provided to benefit recipients each January. The postretirement increase is equal to
50% of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least
1% and a maximum of 1.5%. Recipients that have been receiving the annuity or benefit for at least a full
year as of the June 30 before the effective date of the increase will receive the full increase. Recipients
receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the
effective date of the increase will receive a reduced prorated increase. For members retiring on January 1,
2024 or later, the increase will be delayed until normal retirement age (age 65 if hired prior to July 1, 1989,
or age 66 for individuals hired on or after July 1, 1989). Members retiring under Rule of 90 are exempt
from the delay to normal retirement.
2. PEPFF Benefits
Benefits for 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.
Benefit increases are provided to benefit recipients each January. The postretirement increase will be fixed
at 1%. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30
before the effective date of the increase will receive the full increase. Recipients receiving the annuity or
benefit for at least 25 months but less than 36 months as of the June 30 before the effective date of the
increase will receive a reduced prorated increase.
66
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
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 Coordinated Plan members were required to contribute 6.50% of their annual covered salary in
fiscal year 2021 and the City was required to contribute 7.50%. The City’s contributions to the GERF for
the year ended December 31, 2021, were $438,328. The City’s contributions were equal to the required
contributions as set by state statute.
2. PEPFF Contributions
Police Police and Fire members were required to contribute 11.80% of their annual covered salary in fiscal
year 2021 and the City was required to contribute 17.70%. The City’s contributions to the PEPFF for the
year ended December 31, 2021, were $55,996. 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, 2021, the City reported a liability of $3,279,704 for its proportionate share of GERF’s net
pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s
contribution of $16 million. 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 $100,098. The net pension
liability was measured as of June 30, 2021, 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 proportionate share 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, 2020 through June 30, 2021, relative to the total employer
contributions received from all of PERA’s participating employers. The City’s proportionate share was
0.0768% at the end of the measurement period and 0.0741% for the beginning of the period.
City’s proportionate share of the net pension liability $3,279,704
State of Minnesota’s proportionate share of the net
pension liability associated with the City 100,098
Total $3,379,802
For the year ended December 31, 2021, the City recognized pension expense of $41,578 for its
proportionate share of the GERF’s pension expense. In addition, the City recognized an additional $8,076
as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution
of $16 million to the GERF.
67
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
At December 31, 2021, 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 $20,504 $100,368
Changes in actuarial assumptions 2,002,519 72,955
Difference between projected and
actual investment earnings - 2,843,868
Changes in proportion 150,187 39,290
Contributions paid to PERA
subsequent to the measurement date 231,312 -
Total $2,404,522 $3,056,481
The $231,312 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, 2022. Other amounts reported as deferred outflows and inflows of
resources related to pensions will be recognized in pension expense as follows:
Year Ending Pension
December 31,Expense
2022 ($127,613)
2023 7,241
2024 11,817
2025 (774,716)
Thereafter -
2. PEPFF Pension Costs
At December 31, 2021, the City reported a liability of $169,817 for its proportionate share of the PEPFF’s
net pension liability. The net pension liability was measured as of June 30, 2021 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 proportionate share 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, 2020 through June 30,
2021, relative to the total employer contributions received from all of PERA’s participating employers.
The City’s proportionate share was 0.0220% at the end of the measurement period and 0.0200% for the
beginning of the period.
68
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
The State of Minnesota also contributed $18 million to PEPFF during the plan fiscal year ended June 30,
2021. The contribution consisted of $9 million in direct state aid that meets the definition of a special
funding situation and $9 million in supplemental state aid that does not meet the definition of a special
funding situation. The direct state aid was paid on October 1, 2020. Thereafter, by October 1 of each year,
the state will pay $9 million to the PEPFF until full funding is reached or July 1, 2048, whichever is earlier.
The $9 million in supplemental state aid will continue until the fund is 90% funded, or until the State Patrol
Plan (administered by the Minnesota State Retirement System) is 90% funded, whichever occurs later.
Strong asset returns for the fiscal year ended 2021 will accelerate the phasing out of these state
contributions, although we do not anticipate them to be phased out during the fiscal year ending 2022.
The State of Minnesota is included as a non-employer contributing entity in the PEPFF Schedule of
Employer Allocations and Schedule of Pension Amounts by Employer, Current Reporting Period Only
(pension allocation schedules) for the $9 million in direct state aid. PEPFF employers need to recognize
their proportionate share of the State of Minnesota’s pension expense (and grant revenue) under GASB 68
special funding situation accounting and financial reporting requirements. For the year ended December
31, 2021, the City recognized pension expense of ($140) for its proportionate share of the Police and Fire
Plan’s pension expense. The City recognized an additional $1,391 as pension expense (and grant revenue)
for its proportionate share of the State of Minnesota’s contribution of $9 million to the PEPFF.
The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire Pension
Plan pension allocation schedules for the $9 million in supplemental state aid. The City also recognized
$2,071 for the year ended December 31, 2021 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 Police and Fire Fund.
At December 31, 2021, 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 $32,923 $ -
Changes in actuarial assumptions 249,586 104,899
Net collective between projected and
actual investment earnings - 325,270
Changes in proportion 67,942 28,015
Contributions paid to PERA
subsequent to the measurement date 30,302 -
Total $380,753 $458,184
69
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
The $30,302 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, 2022. Other amounts reported as deferred outflows and inflows of
resources related to pensions will be recognized in pension expense as outflows:
Year Ending Pension
December 31,Expense
2022 ($124,700)
2023 4,735
2024 (15,167)
2025 (30,858)
2026 58,256
Thereafter -
($107,733)
The net pension liability will be liquidated by the general, water, sewer, and surface water management
funds.
E. ACTUARIAL ASSUMPTIONS
The total pension liability in the June 30, 2021 actuarial valuation was determined using an individual
entry-age normal actuarial cost method and the following actuarial assumptions:
Inflation 2.25% per year
Investment Rate of Return 6.50%
The long-term investment rate of return is based on a review of inflation and investment return assumptions
from a number of national investment consulting firms. The review provided a range of investment return
rates deemed to be reasonable by the actuary. An investment return of 6.50% was deemed to be within that
range of reasonableness for financial reporting purposes.
Salary growth assumptions in the GERF range in annual increments from 10.25% after one year of service
to 3.0% after 29 years of service and 6.0% per year thereafter. In the PEPFF, salary growth assumptions
range from 11.75% after one year of service to 3.0% after 24 years of service.
Mortality rates for GERF were based on the Pub-2010 General Employee Mortality Table. Mortality rates
for PEPFF were based on the Pub-2010 Public Safety Employee Mortality tables. The tables are adjusted
slightly to fit PERA’s experience. Cost of living benefit increases after retirement are assumed to be 1.25%
per year for GERF and 1.0% per year for PEPFF.
70
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
Actuarial assumptions for GERF are reviewed every four years. The most recent four-year experience
study for GERF was completed in 2019. The assumption changes were adopted by the Board and become
effective with the July 1, 2020 actuarial valuation. The most recent four-year experience study for PEPFF
was completed in 2020 and adopted by the Board and became effective with the July 1, 2021 actuarial
valuation.
The following changes in actuarial assumptions and plan provisions occurred in 2021:
General Employees Fund
Changes in Actuarial Assumptions:
The investment return and single discount rates were changed from 7.50% to 6.50% for financial
reporting purposes.
The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020.
Police and Fire Fund
Changes in Actuarial Assumptions:
The investment return and single discount rates were changed from 7.50% to 6.50% for financial
reporting purposes.
The inflation assumption was changed from 2.50% to 2.25%.
The payroll growth assumption was changed from 3.25% to 3.00%.
The base mortality tables for healthy annuitants, disabled annuitants and employees were changed
from RP-2014 tables to Pub-2010 Public Safety Mortality tables. The mortality improvement scale
was changed from MP-2019 to MN-2020.
Assumed salary increase and retirement rates were modified as recommended in the July 14, 2020
experience study. The changes result in a decrease in gross salary increase rates, slightly more
unreduced retirements and fewer assumed early retirements.
Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates. The
changes result in more assumed terminations.
Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall,
proposed rates result in more projected disabilities.
Assumed percent married for active female members was changed from 60% to 70%.
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 Equity 33.5% 5.10%
International Equity 16.5% 5.30%
Fixed Income 25% 0.75%
Private Markets 25% 5.90%
Total 100%
71
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
F. DISCOUNT RATE
The discount rate used to measure the total pension liability in 2021 was 6.5%. 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 Statutes. Based on these assumptions, the fiduciary net position of
the GERF and the PEPFF 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.
G. PENSION LIABILITY SENSITIVITY
The following presents the City’s proportionate share of the net pension liability, 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 one percentage point lower or one
percentage point higher than the current discount rate:
1% Decrease in 1% Increase in
Discount Rate (5.5%) Discount Rate (6.5%) Discount Rate (7.5%)
City's Proportionate share of the
GERF net pension liability $6,688,922 $3,279,704 $482,233
City's Proportionate share of the
PEPFF net pension liability $539,139 $169,817 ($132,936)
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.
I. PENSION EXPENSE
Pension expense recognized by the City for the year ended December 31, 2021 is as follows:
GERF $41,578
PEPFF (140)
Fire Relief (note 9)183,852
Total $225,290
72
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
Note 9 SINGLE EMPLOYER PENSION PLAN
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to
pensions, and pension expense, information about the fiduciary net position of the Chanhassen Fire
Department Relief Association (the Relief Association) and additions to/deductions from the Relief
Association’s fiduciary net position have been determined on the same basis as they were reported by the
Relief Association. For this purpose, benefit payments are recognized when due and payable in accordance
with the benefit terms. Investments are reported at fair value.
B. PLAN DESCRIPTION
All members of the Chanhassen Fire Department are covered by a defined benefit pension plan
administered by the Relief Association. The Plan is a single employer retirement plan and is established
and administered in accordance with Minnesota Statute, Chapter 69.
C. BENEFITS PROVIDED
Twenty Year Service Pension
Prior to April 1997, each member who is at least 50 years of age, has retired from the Fire Department, has
served at least twenty years of active service with such department before retirement, and has been a
member of the Relief Association in good standing at least ten years prior to such retirement shall be
entitled to receive either a monthly lifetime service pension or a defined benefit lump sum pension. After
April 1997, each member shall be entitled to receive a defined benefit lump sum pension.
Monthly service pensions shall be $410 per month. Defined benefit service pension per year of service shall
be $6,800. As of January 1, 2021, the lump sum pension increased to $7,500. 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.
73
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
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
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.
74
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
Permanent Disability
Any member of the Relief Association contracting sickness or injury, incapacitating the member from
attending to their business, from causes outside or within their line of duty, and a physician’s report shows
that that member is unable to perform their duties, they are entitled to their full accrued lump sum benefit,
payable immediately.
Temporary Disability
Any member of the Relief Association who becomes temporarily incapacitated from attending to their
business due to illness of injury, sustained in the performance of such business, and is unable to work for a
period of one week or longer, shall be paid a benefit of $5 per day for a period of no longer than 120 days
in any one fiscal year, providing the member is under the care of a physician or doctor during this period.
Death Benefit
Upon the death of any active or deferred member, the beneficiaries of the deceased member shall be paid a
death benefit in an amount equivalent to the accrued service pension.
D. EMPLOYEES COVERED BY BENEFIT TERMS
At December 31, 2020, the following employees were covered by the benefit terms:
Retirees and beneficiaries
currently receiving benefits 4
Retired members entitled to
benefits but have not received them 25
Active members:
Fully vested (20 years or more)3
Partially vested (5 years to 19 years)18
Non-vested (less than 5 years)20
Total 70
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 $235,495 ($203,495 from the State of Minnesota and $31,957 from the City) were
made to the Relief Association in accordance with state statute requirements for the year ended December
31, 2020.
75
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
F. ACTUARIAL METHOD AND SIGNIFICANT ASSUMPTIONS
The total pension liability was determined by an actuarial valuation as of December 31, 2020 using the
following actuarial assumptions, applied to all periods in the measurement:
Valuation date 12/31/2020
Measurement date (assets and funded status)12/31/2020
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 3%
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 Pubs-2010 Mortality table projected generationally from
2010 with MP-2010 Mortality improvement scale.
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which expected future real rates of return (expected returns, net of pension plan investment
expense and inflation) are developed for each major asset class. These expected 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, 2020, these best estimates
are summarized in the following table:
Target Long-Term Expected
Asset Class Allocation Real Rate of Return
Stock and mutual funds 60% 5.2%
Fixed income 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 projection of cash flows used to
determine the discount rate assumed that plan member contributions will be made at the current
contribution rate and that contributions will be made at rates equal to the difference between actuarially
determined contribution rates and the member rate. Based on those assumptions, the pensions plans
fiduciary net position was projected to be available to make all projected future benefit payments to
76
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
current plan members. 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
The City’s net pension liability was measured using a one-year lookback as of December 31, 2020, and
the total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of December 31, 2020.
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
Balance at December 31, 2019 $3,055,205 $2,499,867 $555,338
Changes for the year:
Service cost 150,695 - 150,695
Interest 156,622 - 156,622
Changes in benefit terms - - -
Differences between expected
and actual experience 76,350 - 76,350
Changes of assumptions 58,144 - 58,144
Contributions - employer - 31,957 (31,957)
On behalf contributions - State of MN - 203,495 (203,495)
Contributions - employee - - -
Net investment income - 237,593 (237,593)
Benefit payments, including refunds of employee (206,737) (206,737) -
contributions - - -
Administrative expense - (16,000) 16,000
Other changes - - -
Net changes 235,074 250,308 (15,234)
Balance at December 31, 2020 $3,290,279 $2,750,175 $540,104
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%) or 1-percentage-point higher (6.0%) than the current rate:
Current
1% Decrease Discount Rate 1% Increase
(4.0%) (5.0%) (6.0%)
Net pension liability $716,901 $540,104 $379,048
77
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
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, 2020, the City recognized pension expense of $183,852, including
$203,495 and $31,957 as pension expense (and grant revenue) for the State of Minnesota’s on-behalf
contribution to the plan and the City’s on-behalf contribution to the plan, respectively. At December 31,
2021, 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 $62,109 $47,430
Changes in actuarial assumptions 92,843 969
Difference between projected and
actual investment earnings - 163,523
Total $154,952 $211,922
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized as pension expense as follows:
Year Ending Pension
December 31,Expense
2022 ($6,417)
2023 (55,181)
2024 4,739
2025 -
2026 -
Thereafter -
78
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
Note 10 DEFINED CONTRIBUTION PLAN
The Mayor and all four Council members of the City of Chanhassen are covered by the Public Employees
Defined Contribution Plan (PEDCP), a multiple-employer deferred compensation plan administered by
PERA. The PEDCP is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all
contributions by or on behalf of employees are tax deferred until time of withdrawal.
Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less
administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the
employee and employer contribution rates for those qualified personnel who elect to participate. An eligible
elected official who decides to participate contributes 5% of salary which is matched by the elected
official's employer. For ambulance service personnel, employer contributions are determined by the
employer, and for salaried employees must be a fixed percentage of salary. Employer contributions for
volunteer personnel may be a unit value for each call or period of alert duty. Employees who are paid for
their services may elect to make member contributions in an amount not to exceed the employer share.
Employer and employee contributions are combined and used to purchase shares in one or more of the
seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA
receives 2% of employer contributions and twenty-five hundredths of 1% (.0025) of the assets in each
member's account annually.
Total contributions made by the City during fiscal year 2021 were:
Required
Employer
Employee (Pension Expense) Employee Employer Rate
$2,276 $2,276 5% 5% 5%
Contribution Amount Percentage of Covered Payroll
Note 11 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.
79
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
B. BENEFITS PROVIDED
Retirees
The City is required by State Statute to allow retirees to continue participation in the City’s group health
insurance plan if the individual terminates service with the City through service retirement or disability
retirement. Employees who satisfy the rule of 80 or attain age 55 and have completed 10 years of service at
termination can immediately commence medical benefits. Retirees may obtain dependent coverage while
the participating retiree is under age 65. Covered spouses may continue coverage after the retiree’s death.
The surviving spouse of an active employee may continue coverage in the group health insurance plan after
the employee’s death.
All health care coverage is provided through the City’s group health insurance plans. The retiree is
required to pay 100% of their premium cost for the City-sponsored group health insurance plan in which
they participate. The premium is a blended rate determined on the entire active and retiree population.
Since the projected claims costs for retirees exceed the blended premium paid by retirees, the retirees are
receiving an implicit rate subsidy (benefit). The coverage levels are the same as those afforded to active
employees. Upon a retiree reaching age 65, Medicare becomes the primary insurer and the City’s plan
becomes secondary.
C. PARTICIPANTS
As of the December 31, 2021 actuarial valuation, participants consisted of:
Active employees receiving benefits 78
Inactive employees currently receiving
or entitled to receive benefits 2
Total 80
D. TOTAL OPEB LIABILITY AND CHANGES IN TOTAL OPEB LIABILITY
The City’s total OPEB liability of $179,490 was measured as of December 31, 2021, and was determined
by an actuarial valuation as of December 31, 2021. Changes in the total OPEB liability during 2021 were:
Balance - beginning of year $167,623
Changes for the year:
Service cost 15,307
Interest 3,785
Changes of benefit terms -
Differences between expected and actual experience (6,405)
Changes in assumptions 8,015
Benefit payments (8,835)
Net changes 11,867
Balance - end of year $179,490
The OPEB liability is liquidated by the General fund, water fund, sewer fund, and surface water management fund.
80
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
E. ACTUARIAL ASSUMPTIONS AND OTHER INPUTS
The total OPEB liability in the December 31, 2021 actuarial valuation was determined using the following
actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise
specified:
Inflation 2.25%
Salary increases Based on the most recent disclosed assumptions for the pension plan in
which the employee participates.
Discount rate 2.25%
Investment rate of return 2.53%
Healthcare cost trend rates 8.0% for 2021 decreasing to ultimate rate of 4.5% in 2029 and beyond
Retirees' share of benefit-related costs 100%
Since the plan is funded on a pay-as-you-go basis, both the discount rate and the investment rate of return
was based on the 20 year AA rated municipal bond rate as of December 31, 2021, obtained from the Bond
Buyer G.O. 20 year Bond Muncipal Bond Index.
Mortality rates were based on the SOA Pub-2010 General Headcount Weighted Mortality Table fully
generational using Scale MP-2020 for active and retirees and SOA Pub-2010 Continuing Survivor
Headcount Weighted Mortality Table fully generational using Scale MP-2021 for surviving spouses.
20% of employees are assumed to elect spousal coverage at retirement. Husbands are assumed to be three
years older than wives. Actual spousal coverage and age is used for retirees.
F. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE DISCOUNT RATE
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability
would be if it were calculated using a discount rate that is 1% lower (1.25%) or 1% higher (3.25%) than the
current discount rate:
1% Decrease Discount Rate 1% Increase
(1.25%) (2.25%) (3.25%)
Total OPEB liability $188,172 $179,490 $171,082
G. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE HEALTHCARE COST
TREND RATES
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability
would be if it were calculated using healthcare cost trend rates that are 1% lower (7.0% decreasing to 3.5%)
or 1% higher (9.0% decreasing to 5.50%) than the current healthcare cost trend rates:
Healthcare Cost
1% Decrease Trend Rates 1% Increase
(7.0% decreasing to 3.5%)(8.0% decreasing to 4.5%)(9.0% decreasing to 5.50%)
Total OPEB liability $166,516 $179,490 $194,260
81
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
H. OPEB EXPENSE AND DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED
TO OPEB
For the year ended December 31, 2021, the City recognized $10,714 of OPEB expense. At December 31,
2021, the City reported deferred outflows and inflows of resources related to OPEB from the following
sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience $ - $70,184
Changes in actuarial assumptions 20,930 -
Total $20,930 $70,184
Amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in
OPEB expense as follows:
Year Ending OPEB
December 31,Expense
2022 ($8,378)
2023 (8,378)
2024 (8,378)
2025 (8,378)
2026 (8,382)
Thereafter (7,360)
I. 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 December 31, 2021 actuarial valuation, the projected unit credit actuarial pay cost method was used.
The actuarial assumptions included a 2.25% investment rate of return (net of administrative expenses) and
an annual health care cost trend rate of 8.0% for 2021, decreasing by 0.5% annually to an ultimate rate of
82
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
4.5%. These rates include a 2.25% 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, 2021 was 30
years.
Note 12 INTERFUND LOANS AND TRANSFERS
Amounts reported as interfund loan receivable/payable at December 31, 2021 are as follows:
Interfund Interfund
Loan Receivable Loan Payable
Major Funds:
Water Fund $ - $383,971
Nonmajor Funds 383,971 -
Total $383,971 $383,971
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 is being repaid at an interest rate of 2.5% over eight years. Payments
during years 2016-2019 were made to the Revolving Assessment Fund and payments during years 2020-2023 will
be made to the Capital Replacement Fund. There were $180,846 of repayments in 2021 and $185,367 is expected to
be repaid in 2022.
Interfund transfers made during 2021 are summarized as follows:
Transfers In Transfers Out
Major Funds:
Sewer Fund $185,947 $ -
Nonmajor Funds - 185,947
Total $185,947 $185,947
83
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
Note 13 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, 2021, the outstanding conduit debt is as follows:
Bonds Original 12/31/2021 Maturity
Project Name Issued Principal Principal Date
Presbyterian Homes, Series 2014B 06/14 $9,300,000 $6,457,520 2034
Note 14 DEFICIT FUND BALANCES
At December 31, 2021, Lake Place Senior apartment TIF12 fund had a deficit in the amount of $22,425. The Deficit
will be eliminated by future tax increment receipts.
Note 15 COMMITMENTS AND CONTINGENCIES
A. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors
and omissions; injuries to employees; and natural disasters. The City continues to carry commercial insurance for
risks of loss, including workers compensation, property and general liability and employee health and accident
insurance. There were no significant reductions in insurance from the previous year or settlements in excess of
insurance coverage for any of the past three fiscal years.
B. LITIGATION
The City is in the process of acquiring land for the Lyman Boulevard Phase 2 Project. During 2019, the
City and Carver County agreed on an amount for condemnation of two properties. The property owners
declined the offer and are suing the City and County for damages. The total amount of damages sought by
the property owners is $5,028,510. The total estimated damages per the County appraiser was $432,500.
The total amounts awarded by the County Commissioners was $760,500. The property owners appealed
that award to a Jury Trial that is scheduled to take place in the future. The degree of probability of an
unfavorable outcome, above and beyond the settlement amount awarded by the County Commissioners, in
the Jury Trials is unknown. The City is unable to make a reasonable estimate of the amount of loss, above
and beyond the settlement amount awarded by the County Commissioners.
84
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
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, 2021.
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.
The City has one tax increment district, which has an outstanding pay-as-you-go revenue note. The note is
not a general obligation of the City and is payable solely from available tax increments. Accordingly, the
note is not reflected in the financial statements of the City. Details of the pay-as-you-go revenue note is as
follows:
Tax Increment Revenue Note (Frontier Redevelopment) – issued in 2020 in the principal sum of
$1,300,000 with an interest rate of 5.0% per annum. Principal and interest payments shall be paid
commencing August 1, 2020 and each February 1 and August 1 thereafter to and including February 1,
2045. Payments are payable solely from tax increments, which shall mean 95% of the tax increments
derived from the tax increment property and received by the City. The payment reimburses the developer
for street, utilities, right-of-way, land acquisition, and other public improvements. The City shall have no
obligation to pay unpaid balance of principal or accrued interest that may remain after the final payment on
February 1, 2045. Current year abatement (TIF note payments) amounted to $265,670. At December 31,
2021 the principal amount outstanding on the note was $922,345.
85
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
F. COMMITTED CONTRACTS
At December 31, 2021, the City had commitments of $1,326,140 for uncompleted construction contracts.
In addition, the City entered into construction contracts during 2022 totaling $5,886,800.
Note 16 FUND BALANCE
A. CLASSIFICATIONS
Definitions of fund balance classifications are included in Note 1P. At December 31, 2021, a summary of
the governmental fund balance classifications are as follows:
TH101
Revolving Improvements - Other
General Assessment Pioneer to Governmental
Fund Fund Flying Cloud Funds Total
Nonspendable:
Prepaid items $69,953 $ - $ - $690 $70,643
Restricted for:
Debt service - - - 630,411 630,411
Park improvements - - - 321,161 321,161
Tax Increment - - - 12,970 12,970
CATV - public education - - - 43,837 43,837
Public safety - fire - - - 48,389 48,389
Total restricted 0 0 0 1,056,768 1,056,768
Assigned for:
Capital improvements - 3,258,157 84,766 2,756,979 6,099,902
Cable communications - - - 461,978 461,978
Cemetery operations - - - 80,937 80,937
Debt service reserve - - - 1,176,694 1,176,694
Total assigned 0 3,258,157 84,766 4,476,588 7,819,511
Unassigned 7,919,562 - - (22,425) 7,897,137
Total $7,989,515 $3,258,157 $84,766 $5,511,621 $16,844,059
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, 2021, the fund
balance of the General Fund exceeded this level.
86
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
Note 17 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, 2021 totaled $261,427. Terms of each lease outstanding at year-end are as follows:
Lessee Terms Current Term
Sprint $25,082 per year with 3% annual increases 8/1/2006 - 7/31/2026
Sprint $23,486 per year with 3% annual increases 12/1/2005 - 11/30/2025
Verizon $2,342 per month 5/1/2017 - 4/30/2022
Nextel West Corp.$22,926 per year with 3% annual increases 12/1/2014 - 11/30/2024
T-Mobile $2,153 per month with 3% annual increases 11/1/2005 - 10/31/2025
T-Mobile $22,258 per year with 3% annual increases 1/1/2014 - 12/31/2024
StoneBridge/Nextera 5% of gross revenues associated with equipment used on property 4/1/2006 - 12/31/2024
Cingular/AT&T $2,029 per month with 3% annual increases 8/1/2007 - 7/31/2022
Verizon-Arboretum $2,300 per month, with 2% annual increases 1/1/2020 - 12/31/2024
Verizon-Minnetonka Middle School $2,300 per month, with 2% annual increases 1/1/2020 - 12/31/2024
Note 18 RECENTLY ISSUED ACCOUNTING STANDARDS
The Governmental Accounting Standards Board (GASB) recently approved the following statements which were
not implemented for these financial statements:
Statement No. 87 Leases. The provisions of this Statement are effective for reporting periods beginning after
June 15, 2021.
Statement No. 91 Conduit Debt Obligations. The provisions of this Statement are effective for reporting
periods beginning after December 15, 2021.
Statement No. 92 Omnibus 2020. The provisions of this Statement are effective for reporting periods beginning
after June 15, 2021.
Statement No. 93 Replacement of Interbank Offered Rates. The provisions of this Statement contain multiple
effective dates, the first being for reporting periods beginning after June 15, 2020.
Statement No. 94 Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The
provisions of this Statement are effective for reporting periods beginning after June 15, 2022.
Statement No. 96 Subscription – Based Information Technology Arrangements. The provisions of this
Statement are effective for reporting periods beginning after June 15, 2022.
The effect these standards may have on future financial statements is not determinable at this time, but it is expected
that Statement No. 87 may have a material impact.
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88
REQUIRED SUPPLEMENTARY INFORMATION
89
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 9
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 1 of 6
For The Year Ended December 31, 2021
With Comparative Actual Amounts For The Year Ended December 31, 2020
2020
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues:
General property taxes $9,476,000 $9,476,000 $9,483,858 $7,858 $9,241,003
Licenses and permits:
Licenses - general government 3,100 3,100 2,500 (600)3,000
Licenses - public safety 93,500 93,500 91,248 (2,252)95,967
Permits - public safety 1,041,000 1,041,000 2,103,829 1,062,829 1,376,346
Permits - public works 36,500 36,500 58,442 21,942 68,185
Permits - community development 17,500 17,500 16,060 (1,440)5,510
Total licenses and permits 1,191,600 1,191,600 2,272,079 1,080,479 1,549,008
Intergovernmental:
Federal - police - public safety - - - - 62,614
Federal - fire - public safety - - - - 356,236
Federal - parks and recreation - - 994 994 5,152
State aid - parks and recreation - - 790 790 -
State aid - police - public safety 155,000 155,000 146,841 (8,159)168,658
State aid - fire - public safety 200,000 200,000 227,443 27,443 216,211
Other 55,000 55,000 9,562 (45,438)(4,183)
Total intergovernmental 410,000 410,000 385,630 (24,370)804,688
Charges for services:
General government 1,500 1,500 692 (808)78,850
Public safety 3,000 3,000 1,059 (1,941)1,000
Public works 60,800 60,800 112,694 51,894 105,575
Parks and recreation 346,600 346,600 385,651 39,051 134,435
Community development 32,000 32,000 23,612 (8,388)24,916
Total charges for services 443,900 443,900 523,708 79,808 344,776
Fines and forfeits:
Public safety 106,500 106,500 78,673 (27,827)73,800
Investment earnings 135,000 135,000 15,664 (119,336)127,746
Contributions and donations:
General government - - 500 500 -
Parks and recreation 26,000 26,000 21,093 (4,907)31,231
Total contributions and donations 26,000 26,000 21,593 (4,407)31,231
Refunds and reimbursements:
General government 4,000 4,000 6,591 2,591 16,821
Public safety 12,500 12,500 1,582 (10,918)1,306
Public works 42,500 42,500 44,803 2,303 37,087
Parks and recreation 1,000 1,000 - (1,000) -
Community development - - 40 40 -
Total refunds and reimbursements 60,000 60,000 53,016 (6,984)55,214
Other:
General government 262,500 262,500 263,883 1,383 256,453
Public safety 6,700 6,700 6,949 249 2,349
Total other 269,200 269,200 270,832 1,632 258,802
Total revenues 12,118,200 12,118,200 13,105,053 986,853 12,486,268
2021
Budgeted Amounts
See accompanying notes to the required supplementary information.
90
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 9
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 6
For The Year Ended December 31, 2021
With Comparative Actual Amounts For The Year Ended December 31, 2020
2020
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Expenditures:
General government:
Legislative:
Current:
Personal services $46,700 $46,700 $48,547 ($1,847)$46,357
Contractual services 82,700 82,700 78,883 3,817 90,454
Total legislative 129,400 129,400 127,430 1,970 136,811
Administrative office:
Current:
Personal services 539,100 539,100 525,362 13,738 531,529
Contractual services 120,600 120,600 105,168 15,432 41,002
Total administrative office 659,700 659,700 630,530 29,170 572,531
Finance:
Current:
Personal services 329,900 329,900 328,422 1,478 342,711
Materials and supplies 200 200 57 143 -
Contractual services 48,300 48,300 43,368 4,932 52,970
Total finance 378,400 378,400 371,847 6,553 395,681
Election:
Current:
Personal services 26,000 26,000 - 26,000 28,035
Materials and supplies 4,000 4,000 - 4,000 1,449
Contractual services 18,000 18,000 13,264 4,736 16,957
Total election 48,000 48,000 13,264 34,736 46,441
Legal:
Current:
Contractual services 205,000 205,000 200,938 4,062 201,523
Property assessment:
Current:
Contractual services 165,000 165,000 177,554 (12,554)150,115
M.I.S.:
Current:
Personal services 215,300 215,300 217,213 (1,913)178,403
Materials and supplies 44,600 44,600 69,855 (25,255)46,634
Contractual services 69,400 469,400 276,185 193,215 38,784
Total M.I.S.329,300 729,300 563,253 166,047 263,821
2021
Budgeted Amounts
See accompanying notes to the required supplementary information.
91
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 9
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 3 of 6
For The Year Ended December 31, 2021
With Comparative Actual Amounts For The Year Ended December 31, 2020
2020
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Expenditures: (continued)
General government: (continued)
City hall:
Current:
Personal services $91,900 $91,900 $95,920 ($4,020)$92,191
Materials and supplies 41,900 41,900 47,767 (5,867)39,113
Contractual services 293,100 293,100 267,543 25,557 278,637
Total City hall 426,900 426,900 411,230 15,670 409,941
Library:
Current:
Materials and supplies 1,500 1,500 475 1,025 442
Contractual services 120,600 120,600 133,665 (13,065)95,298
Total library 122,100 122,100 134,140 (12,040)95,740
Total general government 2,463,800 2,863,800 2,630,186 233,614 2,272,604
Public safety:
Police:
Current:
Materials and supplies 500 500 - 500 -
Contractual services 1,984,800 1,984,800 1,777,166 207,634 1,889,914
Total police 1,985,300 1,985,300 1,777,166 208,134 1,889,914
Fire department:
Current:
Personal services 1,062,100 1,062,100 1,052,988 9,112 931,819
Materials and supplies 45,100 45,100 44,446 654 43,068
Contractual services 149,200 149,200 142,637 6,563 123,911
Total fire department 1,256,400 1,256,400 1,240,071 16,329 1,098,798
Code enforcement:
Current:
Personal services 709,100 709,100 750,244 (41,144)706,206
Materials and supplies 6,400 6,400 4,567 1,833 4,148
Contractual services 13,000 13,000 9,318 3,682 10,552
Total code enforcement 728,500 728,500 764,129 (35,629)720,906
Community Service:
Current:
Personal services 57,200 57,200 36,910 20,290 48,400
Materials and supplies 1,200 1,200 672 528 2,017
Contractual services 5,400 5,400 3,379 2,021 5,485
Total animal control 63,800 63,800 40,961 22,839 55,902
Total public safety 4,034,000 4,034,000 3,822,327 211,673 3,765,520
2021
Budgeted Amounts
See accompanying notes to the required supplementary information.
92
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 9
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 4 of 6
For The Year Ended December 31, 2021
With Comparative Actual Amounts For The Year Ended December 31, 2020
2020
Actual Variance with Actual
Expenditures: (continued)Original Final Amounts Final Budget Amounts
Public works:
Engineering:
Current:
Personal services $688,900 $688,900 $696,017 ($7,117) $655,565
Materials and supplies 3,000 3,000 4,729 (1,729)3,707
Contractual services 36,000 36,000 31,615 4,385 32,939
Total engineering 727,900 727,900 732,361 (4,461)692,211
Street maintenance:
Current:
Personal services 975,500 975,500 931,095 44,405 872,618
Materials and supplies 112,200 112,200 132,622 (20,422)124,936
Contractual services 35,300 35,300 28,842 6,458 49,831
Total street maintenance 1,123,000 1,123,000 1,092,559 30,441 1,047,385
Street lighting:
Current:
Materials and supplies 30,000 30,000 15,521 14,479 1,299
Contractual services 355,500 355,500 364,752 (9,252)386,494
Total street lighting 385,500 385,500 380,273 5,227 387,793
Fleet department:
Current:
Personal services 339,000 339,000 334,526 4,474 334,139
Materials and supplies 175,600 175,600 143,372 32,228 103,260
Contractual services 74,500 74,500 52,961 21,539 56,695
Total fleet department 589,100 589,100 530,859 58,241 494,094
Total public works 2,825,500 2,825,500 2,736,052 89,448 2,621,483
Parks and recreation:
Parks and recreation commission:
Current:
Materials and supplies 100 100 31 69 -
Contractual services 1,100 1,100 291 809 -
Total parks and recreation commission 1,200 1,200 322 878 0
Parks and recreation administration:
Current:
Personal services 218,700 218,700 194,668 24,032 248,104
Materials and supplies 200 200 325 (125)107
Contractual services 5,700 5,700 4,527 1,173 2,289
Total parks and recreation
administration 224,600 224,600 199,520 25,080 250,500
Recreation center:
Current:
Personal services 213,400 213,400 213,208 192 181,753
Materials and supplies 14,400 14,400 18,356 (3,956)3,904
Contractual services 86,400 86,400 77,569 8,831 67,798
Total recreation center 314,200 314,200 309,133 5,067 253,455
2021
Budgeted Amounts
See accompanying notes to the required supplementary information.
93
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 9
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 5 of 6
For The Year Ended December 31, 2021
With Comparative Actual Amounts For The Year Ended December 31, 2020
2020
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Expenditures: (continued)
Parks and recreation: (continued)
Senior citizen center:
Current:
Personal services $87,100 $87,100 $86,437 $663 $84,813
Materials and supplies 3,000 3,000 1,174 1,826 1,145
Contractual services 23,500 23,500 28,547 (5,047)14,741
Total senior citizen center 113,600 113,600 116,158 (2,558)100,699
Recreation programs:
Current:
Personal services 251,000 251,000 186,432 64,568 138,669
Materials and supplies 19,200 19,200 16,753 2,447 5,844
Contractual services 122,200 122,200 107,853 14,347 53,032
Total recreation programs 392,400 392,400 311,038 81,362 197,545
Self-supporting programs:
Current:
Personal services 20,000 20,000 14,162 5,838 13,709
Materials and supplies 3,300 3,300 5,489 (2,189)2,672
Contractual services 14,000 14,000 5,038 8,962 4,542
Total self-supporting programs 37,300 37,300 24,689 12,611 20,923
Lake Ann Park operations:
Current:
Personal services 11,400 11,400 9,050 2,350 -
Materials and supplies 8,200 8,200 8,669 (469)469
Contractual services 49,600 49,600 49,236 364 44,697
Total Lake Ann Park operations 69,200 69,200 66,955 2,245 45,166
Park maintenance:
Current:
Personal services 908,800 908,800 839,566 69,234 773,869
Materials and supplies 89,700 89,700 91,363 (1,663)64,851
Contractual services 107,000 107,000 105,266 1,734 127,675
Total park maintenance 1,105,500 1,105,500 1,036,195 69,305 966,395
Recreation sports:
Current:
Personal services 23,000 23,000 15,811 7,189 7,176
Materials and supplies 6,500 6,500 5,194 1,306 607
Contractual services 300 300 125 175 -
Total recreation sports 29,800 29,800 21,130 8,670 7,783
Total parks and recreation 2,287,800 2,287,800 2,085,140 202,660 1,842,466
2021
Budgeted Amounts
See accompanying notes to the required supplementary information.
94
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 9
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 6 of 6
For The Year Ended December 31, 2021
With Comparative Actual Amounts For The Year Ended December 31, 2020
2020
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Expenditures: (continued)
Community development:
Planning commission:
Current:
Materials and supplies $200 $200 $ - $200 $ -
Contractual services 1,500 1,500 1,617 (117)1,750
Total planning commission 1,700 1,700 1,617 83 1,750
Planning administration:
Current:
Personal services 547,600 547,600 549,476 (1,876)536,848
Materials and supplies 400 400 30 370 68
Contractual services 12,000 12,000 8,007 3,993 4,290
Total planning administration 560,000 560,000 557,513 2,487 541,206
Senior facility commission:
Current:
Personal services 30,400 30,400 31,101 (701)30,542
Contractual services 5,000 5,000 368 4,632 -
Total senior facility commission 35,400 35,400 31,469 3,931 30,542
Total community development 597,100 597,100 590,599 6,501 573,498
Total expenditures 12,208,200 12,608,200 11,864,304 743,896 11,075,571
Revenues over expenditures ($90,000) ($490,000) 1,240,749 $1,730,749 $1,410,697
Fund balance - January 1 6,748,766 5,338,069
Fund balance - December 31 $7,989,515 $6,748,766
Budgeted Amounts
2021
See accompanying notes to the required supplementary information.
95
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
SCHEDULE OF CHANGES IN THE CITY'S TOTAL OPEB LIABILITY AND RELATED RATIOS
Last Ten Fiscal Years
2021 2020 2019 2018
Total OPEB liability:
Service cost $15,307 $13,504 $13,547 $14,388
Interest 3,785 5,463 8,738 7,032
Changes of benefit terms - - - -
Differences between expected and actual experience 8,015 (12,888) (82,370) -
Changes in assumptions (6,405) 9,168 16,736 (7,402)
Benefit payments (8,835) (3,343) - (9,869)
Net change in total OPEB liability 11,867 11,904 (43,349) 4,149
Total OPEB liability - beginning 167,623 155,719 199,068 194,919
Total OPEB liability - ending $179,490 $167,623 $155,719 $199,068
Covered-employee payroll $6,422,681 $5,270,695 $5,270,695 $5,151,178
Total OPEB liability as a percentage of covered-employee payroll 2.8%3.2%3.0%3.9%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2018 and is intended to
show a ten year trend. Additional years will be added as they become available.
See accompanying notes to the required supplementary information.
96
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 11
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY -
GENERAL EMPLOYEES RETIREMENT FUND
Last Ten Fiscal Years
City's Plan
State's Proportionate Fiduciary
Proportionate Share of the Net Net
City's City's Share Pension Liability City's Position
Proportionate Proportionate (Amount) and the State's Proportionate as a
Share Share of the Net Proportionate Share of the Net Percentage
(Percentage) (Amount) Pension Share of the Net Pension Liability of the
Measurement Fiscal Year of the of the Net Liability Pension Liability as a Percentage Total
Date Ending Net Pension Pension Associated Associated with Covered of its Covered Pension
June 30 December 31 Liability Liability (a) with City (b) City (a+b) Payroll (c) Payroll ((a+b)/c) Liability
2015 2015 0.0791% $4,099,373 $0 $4,099,373 $4,651,703 88.1%78.2%
2016 2016 0.0759% 6,162,704 80,496 6,243,200 4,708,444 132.6% 68.9%
2017 2017 0.0751% 4,794,334 60,265 4,854,599 4,836,519 100.4% 75.9%
2018 2018 0.0760% 4,216,168 138,310 4,354,478 5,110,253 85.2%79.5%
2019 2019 0.0727% 4,019,420 124,828 4,144,248 5,143,989 80.6%80.2%
2020 2020 0.0741% 4,442,634 137,022 4,579,656 5,283,373 86.7%79.1%
2021 2021 0.0768% 3,279,704 100,098 3,379,802 5,527,150 61.1%87.0%
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.
See accompanying notes to the required supplementary information.
97
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 12
SCHEDULE OF PENSION CONTRIBUTIONS - GENERAL EMPLOYEES RETIREMENT FUND
Last Ten Fiscal Years
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 7.50%
December 31, 2016 358,611 358,611 - 4,781,489 7.50%
December 31, 2017 371,824 371,824 - 4,957,652 7.50%
December 31, 2018 383,686 383,686 - 5,115,814 7.50%
December 31, 2019 390,082 390,082 - 5,201,071 7.50%
December 31, 2020 409,847 409,847 - 5,464,626 7.50%
December 31, 2021 438,328 438,328 - 5,844,364 7.50%
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.
See accompanying notes to the required supplementary information.
98
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 13
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY -
PUBLIC EMPLOYEES POLICE AND FIRE FUND
Last Ten Fiscal Years
Proportionate Share
Proportionate Proportionate of the Net Pension Plan Fiduciary
Share 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%
June 30, 2017 December 31, 2017 0.0190%256,523 194,526 131.9%85.4%
June 30, 2018 December 31, 2018 0.0193%205,718 203,653 101.0%88.8%
June 30, 2019 December 31, 2019 0.0205%218,243 216,056 101.0%89.3%
June 30, 2020 December 31, 2020 0.0200%263,621 225,631 116.8%87.2%
June 30, 2021 December 31, 2021 0.0220%169,817 260,290 65.2%93.7%
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.
See accompanying notes to the required supplementary information.
99
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 14
SCHEDULE OF PENSION CONTRIBUTIONS - PUBLIC EMPLOYEES POLICE AND FIRE FUND
Last Ten Fiscal Years
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 16.20%
December 31, 2016 30,790 30,790 - 190,064 16.20%
December 31, 2017 32,612 32,612 - 201,307 16.20%
December 31, 2018 33,511 33,511 - 206,857 16.20%
December 31, 2019 37,761 37,761 - 222,780 16.95%
December 31, 2020 40,530 40,530 - 228,980 17.70%
December 31, 2021 55,996 55,996 - 316,363 17.70%
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.
See accompanying notes to the required supplementary information.
100
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 15
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS -
CHANHASSEN FIRE DEPARTMENT RELIEF ASSOCIATION
LAST TEN FISCAL YEARS
Fiscal year ending December 31, 2021 December 31, 2020 December 31, 2019 December 31, 2018 December 31, 2017 December 31, 2016 December 31, 2015
Measurement date December 31, 2020 December 31, 2020 December 31, 2019 December 31, 2018 December 31, 2017 December 31, 2016 December 31, 2015
Total pension liability:
Service cost $150,695 $150,695 $143,922 $143,922 $88,924 $88,924 $86,369
Interest 156,622 156,622 154,784 149,836 127,729 128,235 118,909
Changes of benefit terms - - - - 212,120 - 279,202
Differences between expected and actual experience 76,350 76,350 (79,049) - 5,145 - (5,328)
Changes of assumptions 58,144 58,144 (902) (1,074) 231,636 (203) -
Benefit payments, including refunds of employee contributions (206,737) (206,737) (170,835) (216,595) (370,143) (113,883) (470,743)
Net change in total pension liability 235,074 235,074 47,920 76,089 295,411 103,073 8,409
Total pension liability - beginning 3,055,205 3,055,205 3,007,285 2,931,196 2,635,785 2,532,712 2,524,303
Total pension liability - ending (a) $3,290,279 $3,290,279 $3,055,205 $3,007,285 $2,931,196 $2,635,785 $2,532,712
Plan fiduciary net position:
Contributions - employer $31,957 $31,957 $47,399 $54,749 $ - $ - $37,571
Contributions - State of Minnesota 203,495 203,495 190,045 184,695 181,554 177,831 177,784
Contributions - employee - - - - - - -
Net investment income 237,593 237,593 328,474 (130,928) 306,593 158,581 (105,958)
Benefit payments, including refunds of employee contributions (206,737) (206,737) (170,835) (216,595) (340,243)(113,883)(470,743)
Administrative expense (16,000) (16,000) (16,386) (17,350) (14,875)(16,972)(7,225)
Other changes - - - 500 -
Net change in plan fiduciary net position 250,308 250,308 378,697 (125,429)133,029 206,057 (368,571)
Plan fiduciary net position - beginning 2,499,867 2,499,867 2,121,170 2,246,599 2,113,570 1,907,513 2,276,084
Plan fiduciary net position - ending (b)$2,750,175 $2,750,175 $2,499,867 $2,121,170 $2,246,599 $2,113,570 $1,907,513
Net pension liability - ending (a) - (b)$540,104 $540,104 $555,338 $886,115 $684,597 $522,215 $625,199
Plan fiduciary net position as a percentage of the total pension liability 83.6%83.6%81.8%70.5%76.6%80.2%75.3%
Covered payroll*NA NA NA NA NA NA NA
Net pension liability as a percentage of covered payroll*Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
*The Chanhassen Fire Department Relief Association is comprised of volunteers, therefore there are no payroll expenditures.
Beginning in 2021, The City's net pension liability was measured using a one-year lookback option.
GASB 68 was implemented in 2015. Information prior to 2015 is not available.
See accompanying notes to the required supplementary information.
101
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 16
SCHEDULE OF CONTRIBUTIONS - CHANHASSEN FIRE DEPARTMENT RELIEF ASSOCIATION
Last Ten Fiscal Years
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) **
December 31, 2017 171,760 - 176,554 (4,794) * *
December 31, 2018 236,444 54,749 181,695 - * *
December 31, 2019 237,444 47,399 190,045 - * *
December 31, 2020 235,452 31,957 203,495 - * *
December 31, 2021 235,452 31,957 203,495 - * *
*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.)
Beginning in 2021, The City's net pension liability was measured using a one-year lookback option.
GASB 68 was implemented in 2015. Information prior to 2015 is not available.
Contributions in Relation to the
Actuarially Determined Contribution
See accompanying notes to the required supplementary information.
102
CITY OF CHANHASSEN, MINNESOTA
NOTES TO RSI
December 31, 2021
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
2021 Changes in Actuarial Assumptions:
The investment return and single discount rates were changed from 7.50% to 6.50% for financial
reporting purposes.
The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020.
2020 Changes in Actuarial Assumptions:
The price inflation assumption was decreased from 2.50% to 2.25%.
The payroll growth assumption was decreased from 3.25% to 3.00%.
Assumed salary increase rates were decreased 0.25% and assumed rates of retirement were changed
resulting in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements.
Assumed rates of termination and disability were also changed.
Base mortality tables were changed from RP-2014 tables to Pub-2010 tables, with adjustments.
The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.
The spouse age difference was changed from two years older for females to one year older.
The assumed number of married male new retirees electing the 100% Joint & Survivor option changed
from 35% to 45%. The assumed number of married female new retirees electing the 100% Joint &
Survivor option changed from 15% to 30%. The corresponding number of married new retirees
electing the Life annuity option was adjusted accordingly.
Changes in Plan Provisions:
Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through
December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations occurring after
June 30, 2020.
2019 Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2017 to MP-2018.
103
CITY OF CHANHASSEN, MINNESOTA
NOTES TO RSI
December 31, 2021
Changes in the Plan Provisions
The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to
$21.0 million per year. The State’s special funding contribution was changed prospectively, requiring
$16.0 million due per year through 2031.
2018 Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2015 to MP-2017.
The assumed benefit increase was changed from 1.0 percent per year through 2044 and 2.50 percent
per year thereafter to 1.25 percent per year.
2017 Changes in Actuarial Assumptions:
The Combined Service Annuity (CSA) loads were changed from 0.8% for active members and 60%
for vested and non-vested deferred members. The revised CSA loads are now 0.0% for active member
liability, 15.0% for vested deferred member liability and 3.0% for non-vested deferred member
liability.
The assumed post-retirement benefit increase rate was changed from 1.0% per year for all years to
1.0% per year through 2044 and 2.5% per year thereafter.
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
2021 Changes in Actuarial Assumptions:
The investment return and single discount rates were changed from 7.50% to 6.50% for financial
reporting purposes.
The inflation assumption was changed from 2.50% to 2.25%.
The payroll growth assumption was changed from 3.25% to 3.00%.
The base mortality tables for healthy annuitants, disabled annuitants and employees were changed
from RP-2014 tables to Pub-2010 Public Safety Mortality tables. The mortality improvement scale
was changed from MP-2019 to MN-2020.
104
CITY OF CHANHASSEN, MINNESOTA
NOTES TO RSI
December 31, 2021
Assumed salary increase and retirement rates were modified as recommended in the July 14, 2020
experience study. The changes result in a decrease in gross salary increase rates, slightly more
unreduced retirements and fewer assumed early retirements.
Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates. The
changes result in more assumed terminations.
Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall,
proposed rates result in more projected disabilities.
Assumed percent married for active female members was changed from 60% to 70%.
2020 Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2018 to MP-2019.
2019 Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in the Plan Provisions
There have been no changes since the prior valuation.
2018 Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2016 to MP-2017.
2017 Changes in Actuarial Assumptions:
The single discount rate was changed from 5.6% to 7.5%.
Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The
net effect is proposed rates that average 0.34% lower than the previous rates.
Assumed rates of retirement were changed, resulting in fewer retirements.
The Combined Service Annuity (CSA) load was 30% for vested and non-vested deferred members.
The CSA has been changed to 33% for vested members and 2% for non-vested members.
The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table
to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor
of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base
mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the
mortality tables assumed for healthy retirees.
Assumed termination rates were decreased to 3.0% for the first three years of service. Rates beyond
the select period of three years were adjusted, resulting in more expected terminations overall.
Assumed percentage of married female members was decreased from 65% to 60%.
105
CITY OF CHANHASSEN, MINNESOTA
NOTES TO RSI
December 31, 2021
Assumed age difference was changed from separate assumptions for male members (wives assumed to
be three years younger) and female members (husbands assumed to be four years older) to the
assumption that males are two years older than females.
The assumed percentage of female members electing Joint and Survivor annuities was increased.
The assumed post-retirement benefit increase rate was changed from 1.00% for all years to 1.00% per
year through 2064 and 2.50% thereafter.
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.
2020 Changes in Actuarial Assumptions:
The mortality assumption was updated from the PubS-2010 Mortality Table Projected Generationally
from 2010 with the MP-2019 Mortality Improvement Scale to the PubS-2010 Mortality Table
Projected Generationally from 2010 with the MP-2020 Mortality Improvement Scale.
2019 Changes in Actuarial Assumptions:
The mortality table used to measure funding liability has been changed from RP -2014 Sex Distinct
Blue Collar Mortality with generational improvements beginning in 2006 (based on assumptions
developed from the 2017 Social Security Trustees Report) to PubS-2010 Mortality with generational
improvements projected beginning in 2010 based on SOA Scale MP-2019.
2018 Changes in Actuarial Assumptions:
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
2018 trustees report.
The mortality improvement scale used to measure liability has been changed from an improvement
scale based on assumptions developed from the 2017 Social Security Trustees Report to an
improvement scaled based on assumptions developed from the 2018 Social Security trustees Report.
The base table (RP-2014 Blue Collar) and year in which improvements began (2006) remained
unchanged. This results in a decrease in liability and service cost.
106
CITY OF CHANHASSEN, MINNESOTA
NOTES TO RSI
December 31, 2021
2017 Changes in Actuarial Assumptions:
The mortality improvement scale has been changed from an improvement scale based on assumptions
developed from the 2016 Social Security Trustees Report to an improvement scale based on
assumptions developed from the 2017 Social Security Trustees Report.
Disability rates have changed from 0.03% at age 20, grading to 0.33% at age 50 to Class 1 1985
Disability Rates.
The lump sum benefit accrual amount has been projected to increase by 9.27% every three years (3%
compounded each year).
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.
C. OPEB INFORMATION
No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75 to pay
related benefits.
107
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108
COMBINING AND INDIVIDUAL NONMAJOR FUND FINANCIAL
STATEMENTS AND SCHEDULES
109
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110
NONMAJOR GOVERNMENTAL FUNDS
111
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112
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).
113
CITY OF CHANHASSEN, MINNESOTA
COMBINING BALANCE SHEET Statement 17
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2021
With Comparative Totals For December 31, 2020
Special Debt Capital
Revenue Service Project 2021 2020
Assets:
Cash and investments $1,993,001 $2,198,869 $3,048,533 $7,240,403 $5,658,893
Accrued interest receivable 1,794 6,782 8,648 17,224 36,152
Due from other governmental units 249 - 1,035 1,284 971
Accounts receivable - net 86,068 - 67,998 154,066 87,074
Property taxes receivable - 3,554 8,544 12,098 -
Prepaid items 690 - - 690 49,690
Interfund loan receivable - - 383,971 383,971 568,962
Special assessments receivable - 319,216 - 319,216 319,528
Total assets $2,081,802 $2,528,421 $3,518,729 $8,128,952 $6,721,270
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $2,000 $402,100 $314,372 $718,472 $592,403
Due to other governmental units - - 128,247 128,247 10,679
Due to other funds - - 7,425 7,425 -
Salaries payable 2,047 - - 2,047 3,361
Contracts payable - - - - 9,889
Unearned revenue 1,441,924 - - 1,441,924 -
Total liabilities 1,445,971 402,100 450,044 2,298,115 616,332
Deferred inflows of resources:
Unavailable revenue - 319,216 - 319,216 319,528
Fund balance:
Nonspendable 690 - - 690 49,690
Restricted 92,226 630,411 334,131 1,056,768 1,669,927
Assigned 542,915 1,176,694 2,756,979 4,476,588 4,065,793
Unassigned - - (22,425) (22,425) -
Total fund balance 635,831 1,807,105 3,068,685 5,511,621 5,785,410
Total liabilities, deferred inflows
of resources, and fund balance $2,081,802 $2,528,421 $3,518,729 $8,128,952 $6,721,270
Total Nonmajor
Governmental Funds
114
CITY OF CHANHASSEN, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 18
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2021
With Comparative Totals For The Year Ended December 31, 2020
Special Debt Capital
Revenue Service Project 2021 2020
Revenues:
General property taxes $ - $479,800 $1,153,000 $1,632,800 $1,831,012
Tax increment collections - 279,653 279,653 236,485
Licenses and permits - - 336,215 336,215 28,111
Intergovernmental - - 298,264 298,264 1,888,665
Franchise Fees 162,120 - - 162,120 177,362
Special assessments - 332 - 332 352
Charges for services 11,900 - - 11,900 199,694
Investment earnings (3,687) (13,938)(8,018) (25,643) 182,886
Contributions and donations 63,143 - - 63,143 24,870
Refunds and reimbursements 249 - 31,650 31,899 33,731
Other - - 4,600 4,600 4,400
Total revenues 233,725 466,194 2,095,364 2,795,283 4,607,568
Expenditures:
Current:
General government 223,866 26,951 572,558 823,375 1,089,167
Public safety 36,685 - - 36,685 21,385
Public works - - 304,590 304,590 381,808
Parks and recreation - - 160,553 160,553 12,005
Community development - - 295,505 295,505 229,736
Capital outlay:
General government - - - - 833,034
Public safety - - - - 387,528
Public works - - - - 456,476
Parks and recreation - - 1,183,802 1,183,802 1,064,094
Debt service:
Principal - 360,000 - 360,000 1,585,000
Interest and paying agent fees - 92,680 - 92,680 143,970
Total expenditures 260,551 479,631 2,517,008 3,257,190 6,204,203
Revenues over (under) expenditures (26,826) (13,437) (421,644) (461,907) (1,596,635)
Other financing sources (uses):
Project financing issued - - 288,929 288,929 -
Sale of capital assets - - 84,983 84,983 46,443
Transfers in - - - - 40,724
Transfers out - (185,794) - (185,794) (40,724)
Total other financing sources (uses)0 (185,794) 373,912 188,118 46,443
Net change in fund balance (26,826) (199,231) (47,732) (273,789) (1,550,192)
Fund balance - January 1 662,657 2,006,336 3,116,417 5,785,410 7,335,602
Fund balance - December 31 $635,831 $1,807,105 $3,068,685 $5,511,621 $5,785,410
Total Nonmajor
Governmental Funds
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116
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 Mediacom, 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.
Grant Fund- This fund accounts for the revenues and expenditures related to federal and state
financial assistance programs.
117
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING BALANCE SHEET Statement 19
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2021
With Comparative Totals For December 31, 2020
201
Contribution
Fund
202 Cemetery
Fund
210 CATV
Fund
212 Grant
Fund
2021 2020
Assets:
Cash and investments $40,120 $80,700 $430,257 $1,441,924 $1,993,001 $616,317
Accrued interest receivable 96 237 1,461 - 1,794 3,276
Accounts receivable - net 8,173 - 77,895 - 86,068 51,406
Due from other governmental units - - 249 - 249 -
Prepaid items - - 690 - 690 1,069
Total assets $48,389 $80,937 $510,552 $1,441,924 $2,081,802 $672,068
Liabilities and Fund Balance
Liabilities:
Accounts payable $ - $ - $2,000 $ - $2,000 $6,050
Salaries payable - - 2,047 - 2,047 3,361
Unearned revenue - - - 1,441,924 1,441,924 -
Total liabilities 0 0 4,047 1,441,924 1,445,971 9,411
Fund balance:
Nonspendable - - 690 - 690 1,069
Restricted 48,389 - 43,837 - 92,226 65,965
Assigned - 80,937 461,978 - 542,915 595,623
Total fund balance 48,389 80,937 506,505 0 635,831 662,657
Total liabilities and fund balance $48,389 $80,937 $510,552 $1,441,924 $2,081,802 $672,068
Total Nonmajor Special
Revenue Funds
118
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES Statement 20
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2021
With Comparative Totals For The Year Ended December 31, 2020
201
Contribution
Fund
202 Cemetery
Fund
210 CATV
Fund
212 Grant
Fund
2021 2020
Revenues:
Intergovernmental $ - $ - $ - $ - $ - $1,560,038
Franchise fees - - 162,120 - 162,120 177,362
Charges for services - 11,900 - - 11,900 13,900
Investment earnings (197) (488) (3,002) - (3,687) 15,303
Contributions and donations 63,143 - - - 63,143 24,870
Refunds and reimbursements - - 249 - 249 -
Total revenues 62,946 11,412 159,367 0 233,725 1,791,473
Expenditures:
Current:
General government - 1,330 222,536 - 223,866 652,523
Public safety 36,685 - - - 36,685 21,385
Capital outlay:
General government - - - - - 747,757
Public safety - - - - - 101,635
Public works - - - - - 125,640
Parks and recreation - - - - 97,786
Total expenditures 36,685 1,330 222,536 0 260,551 1,746,726
Net change in fund balance 26,261 10,082 (63,169)0 (26,826) 44,747
Fund balance - January 1 22,128 70,855 569,674 0 662,657 617,910
Fund balance - December 31 $48,389 $80,937 $506,505 $0 $635,831 $662,657
Total Nonmajor Special
Revenue Funds
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120
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.
Permanent Revolving Debt – This fund is used to account for excess resources from matured
bond issues.
General Obligation Bond Funds – 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.
121
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING BALANCE SHEET Statement 21
NONMAJOR DEBT SERVICE FUNDS
December 31, 2021
With Comparative Totals For December 31, 2020
300 Permanent
Revolving Debt
368 2009A
G.O.
Refunding
Bonds
370 2016A
G.O.
Refunding
Bonds
2021 2020
Assets:
Cash and investments $737,479 $835,570 $625,820 $2,198,869 $2,372,396
Accrued interest receivable 3,177 2,568 1,037 6,782 14,190
Property taxes receivable - - 3,554 3,554 -
Special assessments receivable 8,094 311,122 - 319,216 319,528
Total assets $748,750 $1,149,260 $630,411 $2,528,421 $2,706,114
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $21,850 $380,250 $ - $402,100 $380,250
Deferred inflows of resources:
Unavailable revenue 8,094 311,122 - 319,216 319,528
Fund balance:
Restricted - - 630,411 630,411 605,422
Assigned 718,806 457,888 - 1,176,694 1,400,914
Total fund balance 718,806 457,888 630,411 1,807,105 2,006,336
Total liabilities, deferred inflows
of resources, and fund balance $748,750 $1,149,260 $630,411 $2,528,421 $2,706,114
Total Nonmajor Debt
Service Funds
122
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 22
CHANGES IN FUND BALANCES
NONMAJOR DEBT SERVICE FUNDS
For The Year Ended December 31, 2021
With Comparative Totals For The Year Ended December 31, 2020
300 Permanent
Revolving
Debt
368 2009A
G.O.
Refunding
Bonds
370 2016A
G.O.
Refunding
Bonds
2021 2020
Revenues:
General property taxes $ - $ - $479,800 $479,800 $938,012
Special assessments 332 - - 332 352
Investment earnings (6,529) (5,278) (2,131) (13,938) 66,297
Charges for services - - - - 185,794
Total revenues (6,197) (5,278) 477,669 466,194 1,190,455
Expenditures:
Current:
General government 26,951 - - 26,951 19,262
Debt service:
Principal - - 360,000 360,000 1,585,000
Interest and paying agent fees - - 92,680 92,680 143,970
Total expenditures 26,951 0 452,680 479,631 1,748,232
Revenues over (under) expenditures (33,148) (5,278) 24,989 (13,437) (557,777)
Other financing sources (uses):
Transfers in - - - - 40,724
Transfers out (185,794) - - (185,794) (40,724)
Total other financing sources (uses) (185,794)0 0 (185,794)0
Net change in fund balance (218,942) (5,278) 24,989 (199,231) (557,777)
Fund balance - January 1 937,748 463,166 605,422 2,006,336 2,564,113
Fund balance - December 31 $718,806 $457,888 $630,411 $1,807,105 $2,006,336
Total Nonmajor Debt
Service Funds
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124
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 the City’s annual equipment purchases not related
to the City’s enterprise funds. The fund currently does include a property tax levy to support the
annual purchases.
401 Park Replacement Fund – Accounts for replacement or repair of major park
equipment/infrastructure, including playgrounds, picnic shelters, hockey rinks, bridges, fences,
walls, etc. The maintenance and replacement schedule is an ongoing endeavor that will be
updated as new investments are made or aging structures are removed.
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.
480 TIF #11 – Accounts for tax increment financing for the downtown district, TIF #11 –
Frontier Development #2.
481 TIF #12 – Accounts for tax increment financing for TIF #12 – Lake Place Senior Apt.
603 Lyman Blvd Improvements – Accounts for the street and utility improvement of Lyman Blvd.
125
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2021
With Comparative Totals For December 31, 2020
410 Park
400 Capital 401 Park Acquisition and
Replacement Fund Replacement Fund Development
Assets:
Cash and investments $1,249,676 $196,162 $425,678
Accrued interest receivable 2,319 954 2,472
Due from other governmental units 1,027 - -
Accounts receivable - net 67,998 - -
Property taxes receivable 5,928 - -
Prepaid items - - -
Interfund loan receivable 383,971 - -
Total assets $1,710,919 $197,116 $428,150
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $181,926 $ - $ -
Due to other governmental units - - 106,989
Due to other funds - - -
Contracts payable - - -
Total liabilities 181,926 0 106,989
Fund balance:
Nonspendable - - -
Restricted - - 321,161
Assigned 1,528,993 197,116 -
Unassigned - - -
Total fund balance 1,528,993 197,116 321,161
Total liabilities, deferred inflows
of resources, and fund balance $1,710,919 $197,116 $428,150
126
Statement 23
420 Street 480 Frontier 481 Lake 603 Lyman
413 Transit Station Pavement Development #2 Place Senior Apt Boulevard Total Nonmajor
Assessment Fund Management TIF#11 TIF 12 Improvements
2021 2020
$102,587 $806,631 $129,405 $ - $138,394 $3,048,533 $2,670,180
315 2,031 132 - 425 8,648 18,686
- 8 - - - 1,035 971
- - - - - 67,998 35,668
- 2,616 - - - 8,544 -
- - - - - - 48,621
- - - - - 383,971 568,962
$102,902 $811,286 $129,537 $0 $138,819 $3,518,729 $3,343,088
$ - $879 $116,567 $15,000 $ - $314,372 $206,103
- 21,258 - - - 128,247 10,679
- - - 7,425 - 7,425 -
- - - - - - 9,889
0 22,137 116,567 22,425 0 450,044 226,671
- - - - - - 48,621
- - 12,970 - - 334,131 998,540
102,902 789,149 - - 138,819 2,756,979 2,069,256
- - - (22,425) - (22,425) -
102,902 789,149 12,970 (22,425)138,819 3,068,685 3,116,417
$102,902 $811,286 $129,537 $0 $138,819 $3,518,729 $3,343,088
Capital Project Funds
127
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 24
CHANGES IN FUND BALANCES Page 1 of 2
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2021
With Comparative Totals For The Year Ended December 31, 2020
410 Park 413 Transit Station 420 Street
400 Capital 401 Park Acquisition and Assessment Pavement
Replacement Fund Replacement Fund Development Fund Management
Revenues:
General property taxes $800,000 $ - $ - $ - $353,000
Tax increment collections - - - - -
Licenses and permits 107,971 - 228,244 - -
Intergovernmental - - - - 298,264
Investment earnings 4,994 (1,960)(5,082)(649)(4,176)
Refunds and reimbursements 30,650 - 1,000 - -
Other 4,600 - - - -
Total revenues 948,215 (1,960)224,162 (649)647,088
Expenditures:
Current:
General government 572,558 - - - -
Public works - - - - 304,590
Parks and recreation - 160,553 - - -
Community development - - - - -
Capital outlay:
General government - - - - -
Public safety - - - - -
Public works - - - - -
Parks and recreation - - 1,183,802 - -
Total expenditures 572,558 160,553 1,183,802 0 304,590
Revenues over (under) expenditures 375,657 (162,513) (959,640)(649)342,498
Other financing sources (uses):
Proceeds from loans - - 288,929 - -
Sale of capital assets 84,983 - - - -
Total other financing sources (uses)84,983 0 288,929 0 0
Net change in fund balance 460,640 (162,513) (670,711)(649)342,498
Fund balance - January 1 1,068,353 359,629 991,872 103,551 446,651
Fund balance - December 31 $1,528,993 $197,116 $321,161 $102,902 $789,149
128
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 24
CHANGES IN FUND BALANCES Page 2 of 2
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2021
With Comparative Totals For The Year Ended December 31, 2020
480 Frontier 481 Lake 603 Lyman
Development #2 Place Senior Apt Boulevard
TIF#11 TIF 12 Improvements
2021 2020
Revenues:
General property taxes $ - $ - $ - $1,153,000 $893,000
Tax increment collections 279,653 - - 279,653 $236,485
Licenses and permits - - - 336,215 28,111
Intergovernmental - - - 298,264 328,627
Investment earnings (271) - (874)(8,018)101,286
Refunds and reimbursements - - - 31,650 33,731
Other - - - 4,600 4,400
Total revenues 279,382 0 (874) 2,095,364 1,625,640
Expenditures:
Current:
General government - - - 572,558 417,382
Public works - - - 304,590 381,808
Parks and recreation - - - 160,553 12,005
Community development 273,080 22,425 - 295,505 229,736
Capital outlay: -
General government - - - - 85,277
Public safety - - - - 285,893
Public works - - - - 330,836
Parks and recreation - - - 1,183,802 966,308
Total expenditures 273,080 22,425 0 2,517,008 2,709,245
Revenues over (under) expenditures 6,302 (22,425)(874) (421,644) (1,083,605)
Other financing sources (uses):
Proceeds from loans - - - 288,929 -
Sale of capital assets - - - 84,983 46,443
Total other financing sources (uses)0 0 0 373,912 46,443
Net change in fund balance 6,302 (22,425)(874)(47,732) (1,037,162)
Fund balance - January 1 6,668 0 139,693 3,116,417 4,153,579
Fund balance - December 31 $12,970 ($22,425) $138,819 $3,068,685 $3,116,417
Total Nonmajor
Capital Project Funds
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130
CITY OF CHANHASSEN, MINNESOTA
SPECIAL REVENUE FUND - CONTRIBUTION FUND Statement 25
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2021
With Comparative Actual Amounts For The Year Ended December 31, 2020
2020
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues:
Investment earnings $ - $ - ($197) ($197) $485
Contributions and donations 36,000 36,000 63,143 27,143 24,870
Total revenues 36,000 36,000 62,946 26,946 25,355
Expenditures:
Current:
Public safety:
Contractual services 53,800 53,800 36,685 17,115 21,385
Revenues over (under) expenditures ($17,800) ($17,800) 26,261 $9,831 $3,970
Fund balance - January 1 22,128 18,158
Fund balance - December 31 $48,389 $22,128
2021
Budgeted Amounts
131
CITY OF CHANHASSEN, MINNESOTA
SPECIAL REVENUE FUND - CEMETERY FUND Statement 26
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2021
With Comparative Actual Amounts For The Year Ended December 31, 2020
2020
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues:
Charges for services $5,700 $5,700 $11,900 $6,200 $13,900
Investment earnings 500 500 (488) (988) 1,810
Total revenues 6,200 6,200 11,412 5,212 15,710
Expenditures:
Current:
General government:
Contractual services 2,300 2,300 1,330 970 3,563
Revenues over (under) expenditures $3,900 $3,900 10,082 $4,242 12,147
Fund balance - January 1 70,855 58,708
Fund balance - December 31 $80,937 $70,855
2021
Budgeted Amounts
132
CITY OF CHANHASSEN, MINNESOTA
SPECIAL REVENUE FUND - CATV Statement 27
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2021
With Comparative Actual Amounts For The Year Ended December 31, 2020
2020
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues:
Franchise fees $185,000 $185,000 $162,120 ($22,880) $177,362
Investment earnings 3,000 3,000 (3,002) (6,002) 13,008
Refunds and reimbursements - - 249 249 -
Total revenues 188,000 188,000 159,367 (28,633) 190,370
Expenditures:
Current:
General government:
Personal services 120,500 120,500 127,338 (6,838) 116,105
Materials and supplies 20,000 20,000 14,562 5,438 -
Contractual services 32,300 32,300 80,636 (48,336) 45,635
Capital outlay - - - - -
Total expenditures 172,800 172,800 222,536 (49,736) 161,740
Revenues over expenditures $15,200 $15,200 (63,169) ($78,369) 28,630
Fund balance - January 1 569,674 541,044
Fund balance - December 31 $506,505 $569,674
2021
Budgeted Amounts
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’s Annual Comprehensive 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’s overall
financial health.
Contents Table
Number
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.
Tables 1-4
Revenue Capacity
These tables contain information to help the reader assess the City’s most
significant local revenue source, the property tax.
Tables 5-8
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.
Tables 9-13
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.
Tables 14-15
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.
Tables 16-18
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)
2012 2013 2014 2015
Governmental activities:
Net investment in capital assets $69,987,563 $71,260,946 $71,867,072 $71,225,523
Restricted:
Debt service 5,905,553 6,595,927 3,441,810 3,455,172
Park Improvements 1,650,118 1,714,972 1,751,739 1,896,923
Tax increment purposes 1,022,785 1,347,593 965,809 475,357
Other purposes 142,747 165,838 176,089 154,810
Unrestricted 14,544,111 13,724,705 13,877,772 9,510,105
Total governmental activities net position $93,252,877 $94,809,981 $92,080,291 $86,717,890
Business-type activities:
Net investment in capital assets $54,475,353 $52,541,451 $54,111,608 $55,704,478
Unrestricted 10,631,342 11,391,338 10,467,201 10,032,731
Total business-type activities net position $65,106,695 $63,932,789 $64,578,809 $65,737,209
Primary government:
Net investment in capital assets $124,462,916 $123,802,397 $125,978,680 $126,930,001
Restricted:
Debt service 5,905,553 6,595,927 3,441,810 3,455,172
Park Improvements 1,650,118 1,714,972 1,751,739 1,896,923
Tax increment purposes 1,022,785 1,347,593 965,809 475,357
Other purposes 142,747 165,838 176,089 154,810
Unrestricted 25,175,453 25,116,043 24,344,973 19,542,836
Total primary government net position $158,359,572 $158,742,770 $156,659,100 $152,455,099
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
2016 2017 2018 2019 2020 2021
$72,588,940 $70,255,784 $71,053,355 $72,986,179 $73,063,927 $70,860,083
1,390,127 1,400,411 1,189,447 1,283,606 564,714 594,203
1,505,784 1,716,043 1,224,509 1,537,790 991,872 321,161
399,178 - - - 6,668 12,970
164,751 153,633 135,024 61,995 65,965 92,226
10,221,704 10,028,355 8,781,660 8,360,013 9,369,203 12,019,412
$86,270,484 $83,554,226 $82,383,995 $84,229,583 $84,062,349 $83,900,055
$57,478,975 $57,212,106 $56,195,385 $54,469,960 $55,526,666 $56,069,887
10,516,316 10,126,315 12,342,280 13,557,181 11,740,521 16,356,752
$67,995,291 $67,338,421 $68,537,665 $68,027,141 $67,267,187 $72,426,639
$130,067,915 $127,467,890 $127,248,740 $127,456,139 $128,590,593 $126,929,970
1,390,127 1,400,411 1,189,447 1,283,606 564,714 594,203
1,505,784 1,716,043 1,224,509 1,537,790 991,872 321,161
399,178 - - - 6,668 12,970
164,751 153,633 135,024 61,995 65,965 92,226
20,738,020 20,154,670 21,123,940 21,917,194 21,109,724 28,376,164
$154,265,775 $150,892,647 $150,921,660 $152,256,724 $151,329,536 $156,326,694
139
CITY OF CHANHASSEN, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2012 2013 2014 2015
Expenses
Governmental activities:
General government $2,690,853 $2,630,405 $3,099,004 $2,775,663
Public safety 3,176,441 3,313,694 3,416,088 3,826,376
Public works 7,743,147 14,224,453 9,604,525 11,153,322
Parks and recreation 3,114,340 2,919,183 3,062,592 2,952,985
Community development 646,262 523,651 1,043,848 527,268
Interest on long-term debt 725,881 588,352 465,935 409,676
Total governmental activities expenses 18,096,924 24,199,738 20,691,992 21,645,290
Business-type activities:
Water 3,646,787 4,702,686 3,347,965 3,290,265
Sewer 3,235,324 3,548,200 3,171,696 3,297,128
Surface water management 1,347,345 1,334,173 1,491,763 1,328,144
Total business-type activities expenses 8,229,456 9,585,059 8,011,424 7,915,537
Total primary government expenses $26,326,380 $33,784,797 $28,703,416 $29,560,827
Program revenues
Governmental activities:
Charges for services:
Licenses and permits $1,595,358 $2,113,770 $1,691,634 $1,565,900
Charges for services 1,394,356 1,396,068 1,149,372 1,153,779
Franchise fees - - - -
Fines and forfeits 119,997 99,984 100,516 117,189
Operating grants and contributions 404,663 472,298 532,337 823,943
Capital grants and contributions 2,953,496 10,718,999 3,296,748 5,812,825
Total governmental activities program revenues 6,467,870 14,801,119 6,770,607 9,473,636
Business-type activities:
Charges for services:
Water 3,146,886 2,829,226 2,573,027 2,611,895
Sewer 2,434,370 2,358,854 2,472,536 2,525,731
Surface water management 590,323 615,896 639,087 668,971
Operating grants and contributions 121,925 63,112 210,857 45,130
Capital grants and contributions 1,861,689 2,852,437 2,633,793 3,140,823
Total business-type activities program revenues 8,155,193 8,719,525 8,529,300 8,992,550
Total primary government program revenues $14,623,063 $23,520,644 $15,299,907 $18,466,186
140
Table 2
Page 1 of 2
2016 2017 2018 2019 2020 2021
$2,887,111 $3,230,517 $3,291,465 $2,968,604 $3,503,418 $3,545,101
3,973,031 3,969,540 3,819,890 4,045,361 3,975,838 4,055,112
7,591,530 8,161,048 7,225,531 9,808,088 25,142,224 17,282,830
3,278,139 3,227,236 3,158,725 3,275,021 2,704,009 2,957,867
689,448 918,962 589,570 535,700 754,205 814,146
493,746 408,273 173,323 132,327 107,993 72,195
18,913,005 19,915,576 18,258,504 20,765,101 36,187,687 28,727,251
4,422,789 3,866,810 4,567,874 5,842,506 4,908,477 5,245,018
3,254,619 3,746,880 4,122,804 3,879,581 4,312,195 5,025,866
1,388,979 1,538,468 1,634,475 1,918,378 1,694,090 2,541,714
9,066,387 9,152,158 10,325,153 11,640,465 10,914,762 12,812,598
$27,979,392 $29,067,734 $28,583,657 $32,405,566 $47,102,449 $41,539,849
$1,653,858 $1,641,140 $2,289,052 $2,047,190 $1,574,780 $2,608,294
1,209,882 1,257,486 1,203,187 1,090,985 918,148 896,745
- - - - 1,826,255 2,019,812
114,367 128,394 95,351 89,989 73,800 78,673
735,840 902,871 948,912 2,770,655 14,970,473 6,047,214
3,705,857 2,425,333 1,669,995 4,716,702 4,066,959 4,683,258
7,419,804 6,355,224 6,206,497 10,715,521 23,430,415 16,333,996
2,717,285 2,921,936 3,121,292 3,108,307 3,533,939 4,384,603
2,619,882 2,764,674 3,034,207 3,144,282 3,260,080 3,469,282
684,199 709,508 764,930 998,832 1,083,833 1,458,751
72,007 45,109 44,604 460,905 39,552 38,380
5,199,139 1,678,595 3,965,466 3,108,377 2,084,681 8,513,319
11,292,512 8,119,822 10,930,499 10,820,703 10,002,085 17,864,335
$18,712,316 $14,475,046 $17,136,996 $21,536,224 $33,432,500 $34,198,331
141
CITY OF CHANHASSEN, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2012 2013 2014 2015
Net (expense) revenue:
Governmental activities ($11,629,054) ($9,398,619) ($13,921,385) ($12,171,654)
Business-type activities (74,263) (865,534) 517,876 1,077,013
Total primary government
net (expense) revenue (11,703,317) (10,264,153) (13,403,509) (11,094,641)
General revenues and other changes in net position:
Governmental activities:
Property taxes 10,064,176 10,059,324 10,482,273 10,536,216
Tax increment collections 533,011 545,906 307,940 200,338
Grants and contributions not restricted to specific programs 20,071 19,941 19,736 21,679
Unrestricted investment earnings 173,523 (14,764) 183,602 176,731
Gain on sale of capital assets 56,610 37,720 191,755 66,248
Special item - sale of public works building 1,246,275 - - -
Transfers (173,420) 307,596 6,389 (612,078)
Total governmental activities 11,920,246 10,955,723 11,191,695 10,389,134
Business-type activities:
Unrestricted investment earnings 92,453 (776) 134,533 132,406
Miscellaneous - - - -
Gain on sale of capital assets - - - 57,510
Transfers 173,420 (307,596)(6,389) 612,078
Total business-type activities 265,873 (308,372) 128,144 801,994
Total primary government $12,186,119 $10,647,351 $11,319,839 $11,191,128
Change in net assets:
Governmental activities $291,192 $1,557,104 ($2,729,690) ($1,782,520)
Business-type activities 191,610 (1,173,906) 646,020 1,879,007
Total primary government $482,802 $383,198 ($2,083,670) $96,487
142
Table 2
Page 2 of 2
2016 2017 2018 2019 2020 2021
($11,493,201) ($13,560,352) ($12,052,007) ($10,049,580) ($12,757,272) ($12,393,255)
2,226,125 (1,032,336) 605,346 (819,762) (912,677) 5,051,737
(9,267,076) (14,592,688) (11,446,661) (10,869,342) (13,669,949) (7,341,518)
10,643,917 10,826,116 10,877,849 10,996,831 11,745,709 12,075,260
111,761 - - - 236,485 279,653
19,754 19,753 19,755 20,009 - 311
156,202 164,393 258,456 491,345 368,168 (22,856)
41,129 38,254 45,244 103,976 - 84,387
- - - - - -
73,032 (204,422)(319,528)283,007 239,676 (185,794)
11,045,795 10,844,094 10,881,776 11,895,168 12,590,038 12,230,961
79,765 171,044 263,802 548,747 390,604 (78,079)
- - - - - -
25,224 - 10,568 43,498 1,795 -
(73,032)204,422 319,528 (283,007)(239,676)185,794
31,957 375,466 593,898 309,238 152,723 107,715
$11,077,752 $11,219,560 $11,475,674 $12,204,406 $12,742,761 $12,338,676
($447,406) ($2,716,258) ($1,170,231)$1,845,588 ($167,234)($162,294)
2,258,082 (656,870)1,199,244 (510,524)(759,954)5,159,452
$1,810,676 ($3,373,128)$29,013 $1,335,064 ($927,188)$4,997,158
143
CITY OF CHANHASSEN, MINNESOTA
FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2012 2013 2014 2015
General Fund:
Nonspendable $57,137 $16,741 $58,333 $72,114
Unassigned 5,434,641 5,274,584 5,550,732 5,258,232
Total general fund $5,491,778 $5,291,325 $5,609,065 $5,330,346
All other governmental funds:
Nonspendable $1,373,146 $1,327,068 $1,289,575 $1,253,705
Restricted 6,359,422 9,181,230 5,724,419 5,824,354
Assigned 6,731,400 6,366,292 5,951,507 5,586,353
Unassigned (646,856) (559,515) (475,352) (372,509)
Total all other governmental funds $13,817,112 $16,315,075 $12,490,149 $12,291,903
144
Table 3
2016 2017 2018 2019 2020 2021
$25,832 $81,032 $87,067 $82,265 $63,775 $69,953
5,286,880 5,307,088 5,667,626 5,255,804 6,684,991 7,919,562
$5,312,712 $5,388,120 $5,754,693 $5,338,069 $6,748,766 $7,989,515
$ - $990,723 $9,326 $8,781 $49,690 $690
8,673,981 8,458,576 2,618,680 2,944,091 1,669,927 1,056,768
7,806,958 6,602,135 6,414,882 6,657,125 6,809,934 7,819,511
(264,772) (154,506) (24,491) (570) - (22,425)
$16,216,167 $15,896,928 $9,018,397 $9,609,427 $8,529,551 $8,854,544
145
CITY OF CHANHASSEN, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2012 2013 2014 2015
Revenues:
General property taxes $10,143,011 $10,176,483 $10,489,350 $10,529,994
Tax increment collections 533,011 545,906 307,940 200,338
Licenses and permits 1,595,358 2,113,770 1,691,634 1,565,900
Intergovernmental 2,151,785 7,971,339 2,553,062 4,897,139
Franchise fees - - - -
Special assessments 1,667,881 3,193,078 854,966 1,664,424
Charges for services 880,920 907,414 798,578 799,543
Fines and forfeits 119,997 99,984 100,516 117,189
Investment income 173,523 (14,764) 183,602 176,731
Contributions and donations 36,893 33,159 66,918 78,175
Refunds and reimbursements 253,030 235,363 77,871 85,955
Other 264,038 259,703 265,119 267,622
Total revenues 17,819,447 25,521,435 17,389,556 20,383,010
Expenditures:
Current:
General government 2,326,490 2,274,640 2,350,437 2,391,195
Public safety 3,013,980 3,179,446 3,258,363 3,431,541
Public works 3,726,158 10,628,140 5,352,221 7,537,376
Parks and recreation 2,154,714 2,002,604 2,164,703 2,068,532
Community development 621,295 522,538 1,034,047 515,382
Capital outlay:
General government 75,226 87,707 34,080 -
Public safety 39,314 74,144 23,980 122,143
Public works 3,502,371 2,482,728 2,894,237 2,566,867
Parks and recreation 1,310,366 627,214 485,107 476,323
Debt service:
Principal 5,100,000 1,590,000 4,190,000 1,810,000
Interest and paying agent fees 814,621 599,487 518,722 439,470
Bond issuance costs - - - -
Developer assistance 21,108 - - -
Total expenditures 22,705,643 24,068,648 22,305,897 21,358,829
Revenues over (under) expenditures (4,886,196) 1,452,787 (4,916,341)(975,819)
Other financing sources (uses):
Bonds issued - - - -
Project financing - - - -
Bond premium (discount) - - - -
Remption of refunding bonds - - - -
Transfers in 1,203,031 888,711 1,783,719 2,158,844
Transfers out (48,881)(43,988)(676,095) (1,701,005)
Sale of capital assets - - 301,531 41,015
Special item - sale of public works building 1,475,000 - - -
Total other financing sources (uses)2,629,150 844,723 1,409,155 498,854
Net change in fund balance ($2,257,046) $2,297,510 ($3,507,186) ($476,965)
Debt service as a percentage of noncapital expenditures 33.3%10.5%25.0%12.4%
Debt service as percentage of total expenditures 26.0%9.1%21.1%10.5%
146
Table 4
2016 2017 2018 2019 2020 2021
$10,640,315 $10,820,682 $10,856,842 $10,960,876 $11,800,538 $12,046,658
111,761 - - - 236,485 279,653
1,653,858 1,641,140 2,289,052 2,047,190 1,574,780 2,608,294
974,917 2,149,875 2,019,215 6,294,417 18,569,329 6,883,846
- - - - 1,826,255 2,019,812
820,026 842,523 600,056 727,026 464,373 987,431
846,540 838,498 820,745 808,010 546,809 535,608
114,367 128,394 95,351 89,989 73,800 78,673
156,202 164,393 258,456 491,345 368,168 (22,856)
60,802 73,734 70,339 70,202 56,101 84,736
150,093 174,853 156,920 73,468 88,945 84,915
276,067 264,114 225,522 209,507 263,202 275,432
15,804,948 17,098,206 17,392,498 21,772,030 35,868,785 25,862,202
2,479,271 2,871,267 2,835,108 2,644,661 3,361,771 3,452,273
3,713,146 3,602,897 3,593,877 3,802,544 3,786,905 3,858,508
3,961,016 4,617,523 3,847,782 6,041,417 20,127,051 3,207,828
2,256,314 2,395,554 2,326,272 2,418,229 1,854,471 2,247,485
659,276 940,000 610,368 567,461 803,234 886,104
62,713 30,838 22,133 110,044 833,034 -
314,004 2,950 1,169,952 701,818 387,528 -
459,142 2,595,012 2,315,068 4,959,997 4,938,481 9,195,898
1,153,763 376,992 1,316,908 797,124 1,121,223 1,183,802
1,795,000 670,000 5,985,000 720,000 1,585,000 360,000
483,533 433,925 295,294 157,312 143,970 92,680
- - - - - -
- - - - - -
17,337,178 18,536,958 24,317,762 22,920,607 38,942,668 24,484,578
(1,532,230)(1,438,752)(6,925,264)(1,148,577)(3,073,883)1,377,624
4,805,000 - - - - -
- - - - 546,108 288,929
239,773 - - - - -
- - - - - -
1,347,883 1,924,157 6,724,164 2,153,197 2,852,877 -
(1,044,114)(748,522)(6,369,316)(855,912)(40,724)(185,794)
90,318 19,286 58,458 25,698 46,443 84,983
- - - - - -
5,438,860 1,194,921 413,306 1,322,983 3,404,704 188,118
$3,906,630 ($243,831)($6,511,958)$174,406 $330,821 $1,565,742
14.8%7.1%32.2%5.4%5.5%3.2%
13.1%6.0%25.8%3.8%4.4%1.8%
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
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
2017 34,470,607 278,224 9,910,242 764,420 45,423,493
2018 36,545,419 296,153 10,317,456 869,646 48,028,674
2019 39,891,179 191,360 10,897,809 896,937 51,877,285
2020 42,947,538 135,300 11,666,538 886,150 55,635,526
2021 43,933,317 133,667 12,245,999 935,227 57,248,210
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
($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%
- (2,055,461) 43,368,032 23.85464 3,899,829,200 1.11%
- (2,009,509) 46,019,165 22.66614 4,112,577,100 1.12%
- (2,001,778) 49,875,507 21.10456 4,444,627,000 1.12%
(248,355) (2,077,771) 53,309,400 21.17559 4,749,987,200 1.12%
(294,955) (2,261,018) 54,692,237 21.11399 4,868,292,100 1.12%
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)
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
2017 21.536 2.317 23.853 37.005 38.851 6.565 106.274
2018 20.731 1.935 22.666 33.837 37.436 6.537 100.476
2019 19.314 1.791 21.105 33.631 36.488 6.368 97.592
2020 19.484 1.692 21.176 33.006 35.179 6.101 95.463
2021 21.235 0.879 22.114 32.327 34.634 5.981 95.056
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
LTF Real Estate Company Inc $923,106 1 1.7%
Istar Minnesota LLC 556,100 2 1.0% $357,098 2 1.0%
Northern States Power Co 479,296 3 0.9% 224,160 5 0.6%
SGO MN West Village LLC 449,990 4 0.8%
Lake Susan Apartment Homes LLC 344,700 5 0.6%
Rosemount Inc 336,442 6 0.6% 299,998 3 0.9%
Chanhassen Frontier LLC 305,574 7 0.6%
Mission Hills Sr Housing Owner LLC 266,430 8 0.5%
Centerpoint Energy Minnegasco 248,038 9 0.4%
PHM/Chanhassen Inc. 233,445 10 0.4% 197,894 8 0.6%
IRET Properties - 369,740 1 1.1%
LTF Real Estate VRDN I LLC - 239,202 4 0.7%
LTF Real Estate MP II LLC - 207,822 6 0.6%
Park Avenue Lofts LLC - 203,542 7 0.6%
DRF Chanhassen Medical Bldg - 193,250 9 0.5%
Target Corporation T-0862 - 193,250 9 0.5%
Total $4,143,121 7.5% $2,485,956 7.1%
Total All Property $55,251,729 $35,137,592
Source: Carver County Taxpayer Services
20122021
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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
2012 $10,153,690 $10,005,877 98.5%$51,796 $10,057,674 99.1%
2013 10,195,890 10,105,393 99.1%20,236 10,125,629 99.3%
2014 10,334,140 10,269,518 99.4%28,614 10,298,132 99.7%
2015 10,484,021 10,446,765 99.6%26,753 10,473,518 99.9%
2016 10,629,621 10,564,815 99.4%49,076 10,613,891 99.9%
2017 10,795,121 10,718,876 99.3%20,926 10,739,802 99.5%
2018 10,913,868 10,834,344 99.3%34,390 10,868,734 99.6%
2019 11,019,868 10,924,102 99.1%69,214 10,993,316 99.8%
2020 11,741,368 11,656,656 99.3%36,562 11,693,218 99.6%
2021 12,066,700 12,013,536 99.6% - 12,013,536 99.6%
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
2012 $11,475,000 $0 $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 - - -
2017 12,627,803 - - -
2018 6,626,818 - - -
2019 5,890,833 - - -
2020 4,289,848 - - -
2021 3,913,863 - - -
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)
- $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 0.4%
- 23,379,318 36,007,121 1,425 0.5%
- 25,671,988 32,298,806 1,238 0.4%
- 23,755,499 29,646,332 1,125 0.4%
- 28,535,933 32,825,781 1,208 0.4%
- 26,311,508 30,225,371 1,151 (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
2012 $11,475,000 $775,000 $5,420,000 $20,578,313 $38,248,313 $13,020,206 $25,228,107 71.80% $1,074
2013 10,155,000 705,000 5,220,000 16,324,287 32,404,287 10,266,366 22,137,921 63.62%924
2014 9,550,000 635,000 1,705,000 10,045,261 21,935,261 3,441,810 18,493,451 50.09%758
2015 8,925,000 - 1,155,000 9,256,235 19,336,235 3,455,171 15,881,063 38.60%644
2016 13,313,788 - - 13,926,719 27,240,507 6,418,913 20,821,594 48.72%834
2017 12,627,803 - - 23,379,318 36,007,121 6,413,214 29,593,907 67.23%1,171
2018 6,626,818 - - 25,671,988 32,298,806 1,189,446 31,109,360 66.81%1,192
2019 5,890,833 - - 23,755,499 29,646,332 1,283,606 28,362,727 56.31%1,076
2020 4,289,848 - - 28,535,933 32,825,781 564,713 32,261,067 60.00%1,187
2021 3,913,863 - - 26,311,508 30,225,371 594,203 29,631,168 53.63%1,128
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, 2021
Estimated
Estimated Share of
Debt Percentage Overlapping
Governmental Unit Outstanding Applicable*Debt
Direct debt:
City of Chanhassen(1)$3,913,863 100.00% $3,913,863
Overlapping debt:
Eastern Carver County School District 172,769,000 36.38% 62,853,362
Eden Prairie Independent School District 93,478,941 0.93% 869,354
Carver County 8,305,000 30.76% 2,554,618
Hennepin County 1,037,033,516 0.05% 518,517
Hennepin Suburban Park District 45,542,541 0.07%31,880
Hennepin Regional Railroad Authority 89,332,530 0.05%44,666
Metropolitan Council 73,049,600 0.02%14,610
Subtotal - overlapping debt 1,519,511,128 66,887,007
Total direct and overlapping debt $1,523,424,991 $70,800,870
(1)Excludes debt related to the City's business-type activities.
157
CITY OF CHANHASSEN, MINNESOTA
LEGAL DEBT MARGIN INFORMATION Table 12
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2021
Market value $4,868,292,100
Applicable percentage 3%
Debt limit 146,048,763
Debt applicable to limit:
Total bonded debt 30,225,371
Less:
Special assessment bonds -
Tax increment bonds -
Enterprise Fund debt (26,311,508)
Less:
Cash and investments in G.O. Bond Debt Service Fund (625,820)
3,288,043
Legal debt margin $142,760,720
Legal Debt Margin Calculation for Fiscal Years 2012 Through 2021
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
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
2017 25,273 116,994,876 6,048,333 110,946,543 5.17% 239
2018 26,088 123,377,313 5,377,482 117,999,832 4.36% 206
2019 26,335 133,338,810 4,555,132 128,783,678 3.42% 173
2020 27,170 142,499,616 3,686,297 138,813,319 2.59% 136
2021 26,271 146,048,763 3,288,043 142,760,720 2.25% 125
158
CITY OF CHANHASSEN, MINNESOTA
PLEDGED REVENUE COVERAGE Table 13
Last Ten Fiscal Years
Special
Fiscal Assessment
Year Collections Principal Interest Coverage
2012 $625,288 $195,000 $165,525 1.734
2013 2,174,645 200,000 159,600 6.047
2014 119,060 3,515,000 103,875 0.033
2015 751,995 550,000 42,900 1.268
2016 6,298 1,155,000 26,175 0.005
2017 - - - -
2018 - - - -
2019 - - - -
2020 - - - -
2021 - - - -
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Improvement bonds with a designated revenue source of special assessments were paid off in 2016.
Improvement Bonds
Debt Service
159
CITY OF CHANHASSEN, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS Table 14
Last Ten Fiscal Years
Chanhassen Carver County Carver County Carver County
Fiscal Chanhassen Unemployment Unemployment Personal Income Per Capita
Year Population(1)Rate(2)Rate(2)(thousands)(3)Personal Income(3)
2012 23,484 4.5%4.8%$5,566,332 $59,340
2013 23,954 4.1%4.3%5,702,419 59,672
2014 24,388 3.4%3.6%6,118,639 62,871
2015 24,655 2.9%3.2%6,420,982 65,115
2016 24,951 2.9%3.3%6,610,954 65,853
2017 25,273 2.8%2.9%7,037,917 68,918
2018 26,088 2.4%2.5%7,426,521 71,681
2019 26,355 2.5%2.8%7,676,796 73,023
2020 27,170 4.8%4.9%8,064,542 75,677
2021 26,271 2.6%2.9%(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 1,464 1 24.6% 899 2 17.0%
Rosemount Inc 1,067 2 17.9% 1,666 1 31.5%
Instant Web Companies 815 3 13.7% 887 3 16.8%
The Bernard Group 663 4 11.2% -
Eastern Carver County Schools 424 5 7.1% 350 5 6.6%
RR Donnelley 382 6 6.4% 352 4 6.7%
General Mills 350 7 5.9% 288 6 5.4%
Chanhassen Dinner Theatres 305 8 5.1% 250 7 4.7%
Minnesota Landscape Arboretum 275 9 4.6% 234 8 4.4%
Target 200 10 3.4% -
Exlar Corporation - 183 9 3.5%
Byerly's - 180 10 3.4%
Total 5,945 5,289
Source: Survey by City Administration and Finance Departments.
Note: This does not purport to be a comprehensive list and is based on available data obtained through a survey of individual
employers. Some employers do not respond to inquiries for employment data.
(1)The statistic for total City employment is not available, therefore the percentage represents the percentage of the top ten listed.
2021 2012
161
CITY OF CHANHASSEN, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program 2012 2013 2014 2015
General government 13 13 13 13
Public safety 3333
Public works 26 26 26 26
Parks & recreation 11 11 11 11
Community development 14 14 14 14
Total 67 67 67 67
Source: City Finance Department
Full-Time Equivalent Employees as of December 31,
162
Table 16
2016 2017 2018 2019 2020 2021
13 13 13 13 13 15
222224
27 29 29 29 30 30
12 13 13 13 14 14
16 16 16 15 15 15
70 73 73 72 74 78
Full-Time Equivalent Employees as of December 31,
163
CITY OF CHANHASSEN, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program 2012 2013 2014 2015
Building:
Total permits issued 3,285 3,201 3,076 3,266
Total estimated value $83,531,808 $89,370,069 $80,591,941 $82,145,483
Election:
Registered voters 16,916 16,916 16,344 16,344
Fire:
Average number of employees 45 45 45 45
General government:
Area of city - square miles 23.78 23.78 23.79 23.79
Average number of permanent full-time
employees (excluding fire department) 67 67 67 67
Police:
Average number of employees 15 15 15 15
Number of crimes - MNCJRS(1)777 748 838 870
Number of crimes - NIBRS(1) - - - -
Water:
Number of customers 7,741 7,953 8,075 8,195
Daily average consumption - gallons 2,570,349 2,876,383 2,542,413 2,495,868
Plant capacity - gallons 8,550,000 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
2016 2017 2018 2019 2020 2021
2,891 2,981 3,085 3,259 4,528 6,072
$73,881,121 $82,430,550 $136,016,287 $103,902,405 $87,160,588 $160,438,828
17,769 17,769 17,480 17,480 19,245 19,245
45 45 45 45 45 41
23.79 23.79 23.79 23.79 23.79 23.79
70 73 73 72 74 78
15 15 15 15 15 15
313 - - - - -
472 737 698 692 796 758
8,254 8,312 8,407 8,481 8,539 8,608
2,565,905 2,624,486 2,888,586 2,247,455 2,677,163 3,040,992
8,550,000 8,550,000 17,100,000 17,100,000 17,100,000 17,100,000
Fiscal Year
165
CITY OF CHANHASSEN, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program 2012 2013 2014 2015
Fire:
Number of stations 2222
Parks and recreation:
Acres of parks 401 401 405 405
Acres of open space 503 503 503 503
Number of shelter buildings 4444
Number of picnic shelters 5 6 7 13
Number of playgrounds 26 27 27 27
Number of swimming beaches 5555
Number of tennis courts 15 15 15 15
Number of outdoor pickleball courts 2366
Police:
Number of stations 1111
Public works:
Miles of streets 112.6 113.5 113.7 113.9
Miles of sidewalks 31.9 31.9 32.0 32.0
Miles of trails 56.4 58.6 59.2 59.9
Sewer:
Miles of storm sewers 75.3 76.5 77.0 78.8
Miles of sanitary sewers 123.9 124.3 124.5 125.3
Number of lift stations 31 31 31 31
Water:
Miles of watermains 138.0 139.1 139.3 140.6
Number of wells 12 12 12 12
Source: Various City Departments
Fiscal Year
166
Table 18
2016 2017 2018 2019 2020 2021
222222
405 466 466 466 466 466
503 528 528 628 628 628
444444
15 18 21 21 21 21
27 27 27 28 28 28
555555
15 16 16 16 16 16
61010101010
111111
116.5 116.5 117.0 117.1 117.3 117.3
34.0 34.0 34.0 34.0 34.0 34.0
62.4 62.4 65.0 66.4 68.7 69.1
84.3 84.5 86.8 86.9 87.7 88.7
128.2 128.2 128.6 128.8 129.0 129.7
31 31 31 31 31 31
145.5 145.5 148.8 148.9 149.7 150.1
13 13 13 13 13 13
Fiscal Year
167
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168
IV. OTHER INFORMATION (UNAUDITED)
169
CITY OF CHANHASSEN, MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS
December 31, 2021
Final
Interest Issue Maturity
Bonded indebtedness: Rates Date Date
General obligation bonds:
G.O. Bonds, Series 2016A 2.00%-3.00% 03/03/16 02/01/30
Total general obligation bonds
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
G.O. Water Revenue Bonds, Series 2017A 2.00%-4.00% 02/01/17 02/01/38
G.O. Water Revenue Bonds, Series 2018A 3.00%-4.00% 03/15/18 02/01/30
G.O. Water, Sewer, and Surface Water Revenue Bonds, Series 2020A 2.00% - 3.00% 4/2/2020 2/1/2031
Total Enterprise Fund debt
Total City bonded indebtedness
170
Exhibit 1
Payable Payable Principal
Original January 1, December 31, Due in
Issue Payments 2020 Issued Payments 2021 2022
$4,805,000 $675,000 $4,130,000 $ - $360,000 $3,770,000 $370,000
4,805,000 675,000 4,130,000 0 360,000 3,770,000 370,000
5,920,000 4,920,000 1,000,000 - 725,000 275,000 275,000
3,720,000 1,040,000 2,680,000 - 500,000 2,180,000 515,000
1,245,000 850,000 395,000 - 130,000 265,000 130,000
1,565,000 575,000 990,000 - 155,000 835,000 160,000
3,630,000 - 3,630,000 - - 3,630,000 -
10,000,000 700,000 9,300,000 155,000 9,145,000 155,000
3,595,000 - 3,070,000 - 265,000 2,805,000 275,000
- - 6,220,000 - 175,000 6,045,000 550,000
29,675,000 8,085,000 27,285,000 0 2,105,000 25,180,000 2,060,000
$34,480,000 $8,760,000 $31,415,000 $ - $2,465,000 $28,950,000 $2,430,000
Prior Years 2021
171
CITY OF CHANHASSEN, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY Exhibit 2
GENERAL OBLIGATION BONDS - GOVERNMENTAL ACTIVITIES
December 31, 2021
G.O.
Bonds,
Series 2016A Total
Bonds payable $3,770,000 $3,770,000
Future interest payable 370,800 370,800
$4,140,800 $4,140,800
Payments to maturity:
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
2031
$4,140,800 $4,140,800
172
CITY OF CHANHASSEN, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY Exhibit 3
GENERAL OBLIGATION REVENUE BONDS
December 31, 2021
G.O. Water,
G.O. Water G.O. Water G.O. Water & G.O. Water G.O. Water G.O. Water G.O. Water Sewer, & Surface
Revenue Revenue Sewer Revenue Revenue Revenue Revenue Revenue Water Revenue
Bonds, Series Bonds, Series Bonds, Series Bonds, Series Bonds, Series Bonds, Series Bonds, Series Bonds, Series
2011A 2011B 2012A 2016A 2016B 2017A 2018A 2020A Total
Bonds payable $275,000 $2,180,000 $265,000 $835,000 $3,630,000 $9,145,000 $2,805,000 $6,045,000 $25,180,000
Future interest payable 2,956 133,800 4,049 49,850 2,628,127 3,017,000 396,700 765,275 6,997,757
$277,956 $2,313,800 $269,049 $884,850 $6,258,127 $12,162,000 $3,201,700 $6,810,275 $32,177,757
Payments to maturity:
2022 $277,956 $572,675 $133,003 $179,200 $138,238 $440,250 $356,400 $704,700 $2,802,422
2023 - 576,925 136,046 179,325 138,238 440,500 356,625 702,975 2,530,634
2024 - 580,575 - 174,375 138,238 434,100 357,925 700,800 2,386,013
2025 - 583,625 - 175,200 138,238 432,600 354,000 703,100 2,386,763
2026 - - - 176,750 138,238 430,900 354,850 704,800 1,805,538
2027 - - - - 138,238 843,575 355,400 700,975 2,038,188
2028 - - - - 138,238 845,425 355,650 701,625 2,040,938
2029 - - - - 138,238 846,675 355,600 705,050 2,045,563
2030 - - - - 138,238 847,325 355,250 701,450 2,042,263
2031 - - - - 138,238 842,450 - 484,800 1,465,488
2032 - - - - 138,238 842,050 - - 980,288
2033 - - - - 138,238 845,975 - - 984,213
2034 - - - - 138,238 844,225 - - 982,463
2035 - - - - 138,238 841,875 - - 980,113
2036 - - - - 138,238 843,850 - - 982,088
2037 - - - - 138,238 838,150 - - 976,388
2038 - - - - 275,788 702,075 - - 977,863
2039 - - - - 943,900 - - - 943,900
2040 - - - - 943,431 - - - 943,431
2041 - - - - 939,700 - - - 939,700
2042 - - - - 943,500 - - - 943,500
2043
$277,956 $2,313,800 $269,049 $884,850 $6,258,127 $12,162,000 $3,201,700 6,810,275 $32,177,757
173
CITY OF CHANHASSEN, MINNESOTA
SCHEDULE OF DEFERRED TAX LEVIES Exhibit 4
December 31, 2021
G.O. Capital Total
Years of Improvement Deferred
Levy/Plan Bonds Tax
Collection of 2008A Levies
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
2029/2030
$3,913,718 $3,913,718
174