2019 Annual Financial ReportComprehensive Annual
Financial Report
For the Fiscal Year Ended December 31, 2019 City of Chanhassen, Minnesota
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE CITY OF CHANHASSEN, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2019
Finance Department
Greg Sticha, Finance Director
Member of Government Finance Officers
Association of United States and Canada
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CITY OF CHANHASSEN, MINNESOTA
TABLE OF CONTENTS
I. INTRODUCTORY SECTION
Letter of Transmittal
Certificate of Achievement
Organization Chart
Organization
H. FINANCIAL SECTION
Independent Auditor's Report
Management's Discussion and Analysis
Basic Financial Statements:
Government -Wide Financial Statements:
Statement of Net Position
Statement of Activities
Fund Financial Statements:
Balance Sheet - Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities
Statement of Net Position - Proprietary Funds
Statement of Revenues, Expenses and Changes in Fund Net Position -
Proprietary Funds
Statement of Cash Flows - Proprietary Funds
Statement of Net Position - Fiduciary Funds
Notes to Financial Statements
Required Supplementary Information:
Budgetary Comparison Schedule - General Fund
Schedule of Changes in the City's Total OPEB Liability and Related Ratios
Schedule of Proportionate Share of Net Pension Liability - General Employees
Retirement Fund
Schedule of Pension Contributions - General Employees Retirement Fund
Schedule of Proportionate Share of Net Pension Liability - Public Employees Police
and Fire Fund
Schedule of Pension Contributions - Public Employees Police and Fire Fund
Schedule of Changes in the Net Pension Liability and Related Ratios -
Chanhassen Fire Department Relief Association
Schedule of Contributions - Chanhassen Fire Department Relief Association
Notes to RSI
Page
Reference No.
3
7
8
9
13
17
Statement 1 33
Statement 2 34
Statement 3 36
Statement 4 37
Statement 5 38
Statement 6 39
Statement 7 40
Statement 8 41
Statement 9 42
43
Statement 10 88
Statement 11 94
Statement 12 95
Statement 13 96
Statement 14 97
Statement 15 98
Statement 16 99
Statement 17 100
101
CITY OF CHANHASSEN, MINNESOTA
TABLE OF CONTENTS
Page
Reference
No.
Combining and Individual Nonmajor Fund Financial Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds
Statement 18
110
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Governmental Funds
Statement 19
111
Subcombining Balance Sheet - Nonmajor Special Revenue Funds
Statement 20
114
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Special Revenue Funds
Statement 21
115
Subcombining Balance Sheet - Nonmajor Debt Service Funds
Statement 22
118
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Debt Service Funds
Statement 23
119
Subcombining Balance Sheet - Nonmajor Capital Project Funds
Statement 24
122
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Capital Project Funds
Statement 25
124
Special Revenue Funds:
Schedules of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual:
Contribution Fund Statement 26 127
Cemetery Fund Statement 27 128
CATV Statement 28 129
Combining Statement of Net Position - Agency Funds Statement 29 132
Combining Statement of Changes in Assets and Liabilities - Agency Funds Statement 30 133
III. STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Position by Component
Table 1
138
Changes in Net Position
Table 2
140
Fund Balances - Governmental Funds
Table 3
142
Changes in Fund Balances - Governmental Funds
Table 4
144
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
Page
Reference No.
Demographic and Economic:
Demographic and Economic Statistics Table 14 160
Principal Employers Table 15 161
Operating Information:
Full -Time Equivalent City Government Employees by Function/Program Table 16 162
Operating Indicators by Function/Program Table 17 164
Capital Asset Statistics by Function/Program Table 18 166
IV. OTHER INFORMATION (UNAUDITED)
Combined Schedule of Indebtedness
Exhibit 1
170
Debt Service Payments to Maturity:
General Obligation Bonds - Governmental Activities
Exhibit 2
172
General Obligation Revenue Bonds
Exhibit 3
173
Schedule of Deferred Tax Levies
Exhibit 4
174
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CITY OF C HANHASS E N
Chanhassen is a Community for Life- PrWdingforToday and Planning for Tomorrow
June 10, 2020
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, 2019 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.
PH 952.227.1100 • www.ci.chanhassennn.us • FX 952.227 - 1110
7700 MARKET BOULEVARD • PO BOX147 • CHANHASSEN • MINNESOTA 55317
Relevant Financial Policies
The City has a policy regarding General Fund reserve balances. The City has a designated fund balance in the
General Fund equivalent to 50% of the ensuing year's budgeted tax levy to provide working capital between serve -
owned property tax settlements.
The primary financial goal of the City's investment policy is to ensure the safety and principal invested by the
City. Cash temporarily idle during the year is invested in certificates of deposit and obligations of the U.S.
Treasury and government agencies. The City only invests in instruments authorized under Minnesota Statute
118A. Cash balances from all City funds are pooled into an investment fund and investment income is distributed
on a pro-rata basis at the end of the year, based on average monthly cash balances. At December 31, 2019, the
maturities of the investments range from 1 day to 7 years, with an average maturity of 1.2 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, 2019 was 2.01%. 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, 2019 was 26,335. Chanhassen's residential permits were lower in
2019 as compared to 2018. In 2018, there were 105 residential permits as compared to 58 in 2019. The total value
of all industrial/office and commercial permits in 2019 was $27,250,000. The total value of all building permits
and plan checks in 2019 was $103,902,405.
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. Office and industrial land use continues to be in
demand. The 118 acre Lifestyle Center, which includes over 500,000 square feet of office and retail space and
575 housing units (including detached townhouses, senior housing and apartments) was approved in 2017 and they
are currently working on site grading. Commercial and industrial remodeling and expansion continues the
reinvestment into the community.
In early 2020, the City issued $6,220,000 of bonds for utility system improvements..
Accounting System and Budgetary Control
The City's accounting records are maintained on the accrual, or modified accrual basis, as appropriate. Budgetary
control is maintained through the City's accounting and reporting system whereby monthly detail reports of budget
versus actual are provided to all departments with summaries being provided to the City Council. Approval
listings and documentation are provided for the City Council at each semi-monthly meeting for all checks issued
by the City.
In the City's accounting system, careful consideration is given to the adequacy of internal controls. These controls
are designed to provide reasonable, but not necessarily absolute, assurance regarding: (1) the safeguarding of
assets against loss from unauthorized use or disposition and (2) the reliability of financial records for preparing
financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes
that: (1) the cost of control should not exceed the benefits likely to be derived and (2) the evaluation of costs and
benefits requires estimates and judgments by management. All internal control evaluation occurs within the above
framework. We believe the City's internal controls adequately safeguard assets and provide reasonable assurance
of proper recording of financial transactions.
Capital financings for major municipal improvements are provided through (1) improvement bonds, (2) general
obligation bonds, (3) tax increment bonds, or (4) revenue bonds. Internal financing of improvement projects is
usually minimal and only for short periods of time.
4
Long Term Financial Planning
In 2002, the City undertook an extensive long term financial planning process called "Key Financial Strategies".
As a part of this process the City developed a long term (5 years) general fund budgeting model. In addition the
City developed annual strategies and measurement tools, both financial and non -financial, to compare our results
from year to year and with other like communities in our area.
These strategies and the long term general fund budget are updated on an annual basis as part of our goal setting
strategies at the beginning of each year. In addition, the City has a 5 year capital improvement plan in place for
infrastructure and equipment, as well as a pavement management plan in place for streets.
The City also undertakes an annual rate study of its Water, Sanitary Sewer, and Storm Water rates. As part of this
process the City projects fund balances and capital improvements to each of the systems for the next twenty years,
and the projected user and connection rates needed for each fund for that same time period.
Certificate of Achievement
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City of Chanhassen for its comprehensive annual
financial report (CAFR) for the fiscal year ended December 31, 2018. The Certificate of Achievement is a
prestigious national award recognizing conformance with the highest standards for preparation of state and local
government financial reports.
In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and
efficiently organized comprehensive annual financial report, whose contents conform to program standards. The
CAFR must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City of Chanhassen has received a
Certificate of Achievement for the last twenty seven consecutive years (fiscal years ended 1992 — 2018). We
believe our current report continues to conform to the Certificate of Achievement program requirements and we
are submitting it to GFOA to determine its eligibility for another certificate.
Independent Audit
State law provides that the City may arrange for examination of its books, records, accounts and affairs, or any
part thereof, by the State Auditor, or by Certified Public Accountants. It has been a long-standing policy of the
City to provide for a complete annual audit of City records by Certified Public Accountants. The auditor's opinion
has been included in this report.
Acknowledgments
We wish to express our appreciation to the members of the City Council for their support in improving the
financial condition of the City. We also want to thank the Finance Department staff and department directors for
their assistance in compiling the information necessary for this report. Finally, we wish to acknowledge Redpath
and Company, LTD for their assistance in preparing this report.
Respectfully submitted,
.f
Greg Sticha, Finance Director
5
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
I=,!PN.4
Presented to
City of Chanhassen
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2018
Executive Director/CEO
7
Environmental
Commission
Planning
Commission
Finance
City of Chanhassen, Minnesota
Organization Chart
Citizens
Mayor - Council
Administration
Law
Enforcement Public Community
& Fire Works Development
Administration
Senior
Commission
I & Recreat
Commission
Economic
Development
Authority
Parks and
Recreation
0
CITY OF CHANHASSEN, MINNESOTA
ORGANIZATION
December 31, 2019
Term Expires
Mayor:
Elise Ryan 12/31/2022
Council Members:
Bethany Tjornhom
12/31/2020
Jerry McDonald
12/31/2020
Julia Coleman
12/31/2022
Dan Campion
12/31/2022
City Manager:
Todd Gerhardt Appointed
Finance Director:
Greg Sticha Appointed
Community Development Director:
Kathryn Aanenson Appointed
Public Works Director/City Engineer:
Charles Howley Appointed
Parks and Recreation Director:
Todd Hoffman Appointed
9
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12
REdTN.H
A N O C❑ M P
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Chanhassen, Minnesota
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, each major fund and the aggregate remaining fund information of the City
of Chanhassen, Minnesota, as of and for the year ended December 31, 2019, and the related notes to
the financial statements, which collectively comprise the City of Chanhassen, Minnesota's basic
financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether due
to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the entity's preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express
no such opinion. An audit also includes evaluating the appropriateness of accounting policies used
and the reasonableness of significant accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
55 5t' Street East, Suite 1400, St. Paul, MN, 55101 www.redpathcpas.com
13
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major
fund and the aggregate remaining fund information of the City of Chanhassen, Minnesota, as of
December 31, 2019, and the respective changes in financial position, and, where applicable, cash
flows thereof for the year then ended in accordance with accounting principles generally accepted
in the United States of America.
Report on Summarized Comparative Information
We have previously audited the City of Chanhassen, Minnesota's 2018 financial statements, and we
expressed an unmodified audit opinion on the respective financial statements of the governmental
activities, the business -type activities, each major fund and the aggregate remaining fund
information in our report dated June 24, 2019. In our opinion, the summarized comparative
information presented herein as of and for the year ended December 31, 2018 is consistent, in all
material respects, with the audited financial statements from which it has been derived.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis, the budgetary comparison information, and the schedules of
OPEB and pension information, as listed in the table of contents, be presented to supplement the
basic financial statements. Such information, although not a part of the basic financial statements,
is required by the Governmental Accounting Standards Board, who considers it to be an essential
part of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to express an
opinion or provide any assurance.
14
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Chanhassen, Minnesota's basic financial statements. The
introductory section, combining and individual nonmajor fund financial statements and schedules,
statistical section and other information, are presented for purposes of additional analysis and are
not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and schedules are the
responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the basic financial statements. Such information has
been subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the
basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the combining and
individual nonmajor fund financial statements and schedules are fairly stated in all material respects
in relation to the basic financial statements as a whole.
The introductory section, statistical section and other information have not been subjected to the
auditing procedures applied in the audit of the basic financial statements and, accordingly, we do
not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 10,
2020, 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.
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REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
June 10, 2020
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16
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, 2019. We encourage readers to consider the information
presented here in conjunction with additional information that we have furnished in our letter of
transmittal, which can be found in the introductory section of this report.
Financial Highlights
The assets of the City exceeded its liabilities at the close of the most recent fiscal year by
$152,256,724 (net position). Of this amount, $21,917,194 (unrestricted net position) may be
used to meet the City's ongoing obligations to citizens and creditors in accordance with the
City's fund designations and fiscal policies.
The City's total net position increased by $1,335,064.
As of the close of the current fiscal year, governmental funds reported combined ending fund
balances of $14,947,496. Of this amount, $2,944,091 is restricted by external constraints
established by creditors, grantors, contributors, or by state statutory provisions.
At the end of the current fiscal year, the General Fund had a fund balance of $5,338,069. Of that
amount, $82,265 was in a nonspendable form and the remaining $5,255,804 was unassigned.
Total debt decreased by $2,652,474 during the current fiscal year, from $32,298,806 to
$29,646,332. Please refer to the Capital Asset and Debt Administration portion of this analysis
for an explanation of the decrease.
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.
17
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.
18
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.
Fiduciary funds. Fiduciary funds are used to account for resources held for benefit of parties
outside the government. Fiduciary funds are not reflected in the government -wide financial
statements because the resources of those funds are not available to support the City's own
programs. The accounting used for fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statement can be found on Statement 9 of this report.
19
Management's Discussion and Analysis
Notes to the financial statements. The notes provide additional information that is essential to
a full understanding of the data provided in the government -wide and fund financial statements.
The notes to the financial statements can be found following Statement 9 of this report.
Other information. The combining statements referred to earlier in connection with nonmajor
governmental funds are presented immediately following the required supplementary
information. Combining and individual fund financial statements and schedules can be found on
Statements 18 through 30 of this report.
Government -Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's
financial position. Assets plus deferred outflows of resources exceeded liabilities plus deferred
inflows of resources by $152,256,724 at the close of the most recent fiscal year.
The largest portion of the City's net position ($127,456,139, or 84%) reflects its net investment
in capital assets (e.g. land, buildings, machinery, and equipment) less any related debt used to
acquire those assets that is still outstanding. The City uses these capital assets to provide
services to citizens; consequently, these assets are not available for future spending. Although
the City's investment in its capital assets is reported net of related debt, it should be noted that
the resources needed to repay this debt must be provided from other sources, since the capital
assets themselves cannot be used to liquidate these liabilities.
City of Chanhassen, Minnesota's Net Position
Governmental Activities
Business -Type
Activities
Totals
2019
2018
2019
2018
2019
2018
Assets:
Current and other assets
$18,543,161
$21,860,984
$16,376,687
$17,403,788
$34,919,848
$39,264,772
Capital assets
78,971,450
77,954,500
77,183,921
78,926,004
156,155,371
156,880,504
Total assets
97,514,611
99,815,484
93,560,608
96,329,792
191,075,219
196,145,276
Total deferred outflows of resources
686,256
1,169,090
69,933
139,478
756,189
1,308,568
Liabilities:
Long-term liabilities outstanding
10,784,539
12,036,639
24,685,540
26,649,966
35,470,079
38,686,605
Other liabilities
1,807,748
5,253,996
746,825
1,079,166
2,554,573
6,333,162
Total liabilities
12,592,287
17,290,635
25,432,365
27,729,132
38,024,652
45,019,767
Total deferred inflows of resources
1,378,997
1,309,944
171,035
202,473
1,550,032
1,512,417
Net position:
Net investment in capital assets
72,986,179
71,053,355
54,469,960
56,195,385
127,456,139
127,248,740
Restricted
2,883,391
2,548,980
-
-
2,883,391
2,548,980
Unrestricted
8,360,013
8,781,660
13,557,181
12,342,280
21,917,194
21,123,940
Total net position
$84,229,583
$82,383,995
$68,027,141
$68,537,665
$152,256,724
$150,921,660
20
Management's Discussion and Analysis
$2,883,391 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 ($21,917,194) may
be used to meet ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in all three
categories of net position, both for the City as a whole, as well as for its separate governmental
and business -type activities.
Governmental Activities
Total net position of the governmental activities increased $1,845,588 or 2%. The most
significant components of change in net position are as follows:
• Net investment in capital assets increased $1,932,824. This increase was due to the
addition of easements relating to the Highway 101 construction project and a reduction in
bonds payable from making scheduled bond payments.
• Restricted net position increased $334,411. This increase occurred due to current year
park & trail development fees exceeding expenditures.
• Unrestricted net position decreased $421,647 resulting from a shift in net position out of
this category into net investments in capital assets and restricted net position.
Business -Type Activities
The total net position of the City's business -type activities decreased by $510,524 primarily due
to the increased maintenance expenses for painting one of the City's water towers. Unrestricted
net position increased $1,214,901 primarily due to depreciation expense exceeding debt principal
payments and acquisition of capital assets, which shifted net position from net investment in
capital assets to unrestricted net position.
21
Management's Discussion and Analysis
City of Chanhassen, Minnesota's Changes in Net Position
Revenues:
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues:
General property taxes
Grants and contributions not
restricted to specific programs
Unrestricted investment earnings
Gain on sale of capital assets
Total revenues
Expenses:
General government
Public safety
Public works
Parks and recreation
Community development
Interest and fees on long-term debt
Water
Sewer
Surface water management
Total expenses
Increase (decrease) in net position before transfers
Transfers
Change in net position
Net position - beginning
Net position - ending
Governmental Activities
Business -Type
Activities
Totals
2019
2018
2019
2018
2019
2018
$3,228,164
$3,587,590
$7,251,421
$6,920,429
$10,479,585
$10,508,019
2,770,655
948,912
460,905
44,604
3,231,560
993,516
4,716,702
1,669,995
3,108,377
3,965,466
7,825,079
5,635,461
10,996,831
10,877,849
-
-
10,996,831
10,877,849
20,009
19,755
-
-
20,009
19,755
491,345
258,456
548,747
263,802
1,040,092
522,258
103,976
45,244
43,498
10,568
147,474
55,812
22,327,682
17,407,801
11,412,948
11,204,869
33,740,630
28,612,670
2,968,604
3,291,465
-
-
2,968,604
3,291,465
4,045,361
3,819,890
4,045,361
3,819,890
9,808,088
7,225,531
9,808,088
7,225,531
3,275,021
3,158,725
3,275,021
3,158,725
535,700
589,570
535,700
589,570
132,327
173,323
-
-
132,327
173,323
-
-
5,842,506
4,567,874
5,842,506
4,567,874
3,879,581
4,122,804
3,879,581
4,122,804
1,918,3 78
1,634,475
1,918,378
1,634,475
20,765,101
18,258,504
11,640,465
10,325,153
32,405,566
28,583,657
1,562,581
(850,703)
(227,517)
879,716
1,335,064
29,013
283,007
(319,528)
(283,007)
319,528
1,845,588
(1,170,231)
(510,524)
1,199,244
1,335,064
29,013
82,383,995
83,554,226
68,537,665
67,338,421
150,921,660
150,892,647
$84,229,583
$82,383,995
$68,027,141
$68,537,665
$152,256,724
$150,921,660
22
Management's Discussion and Analysis
Governmental Activities
Revenues
Revenues for the governmental activities increased by $4,919,881. This increase is largely due to
reimbursements related to the Highway 101 construction project.
Expenses
Expenses for the governmental activities increased by $2,506,597, or 14%. This increase was
due to non -capitalized construction costs related to the Highway 101 and 2018 Street
Improvement (Lake Drive East) construction projects.
Below are specific graphs which provide comparisons of the governmental activities revenues
and expenses:
Governmental Activities - Revenues
Property taxes
50%
Capital grants and
contributions
2195
Operating grants and Other
contributions 3%
12%
Charges for services
14%
23
Management's Discussion and Analysis
Governmental Activities - Expenses Interest on long-term
debt
Community development 1%
3% General government
14%
Parks and recreation
16%
Public safety
20%
Public works
46%
Business -Type Activities
Revenues
Revenues for the business -type activities increased by $208,079, or 2%. The increase was
primarily due to higher surface water management charges for services as compared to the
previous year and increased investment income.
Expenses
Expenses for business -type activities increased by $1,315,312, or 13%. As noted earlier this
increase was primarily due to increased maintenance expense for painting one of the City's water
towers.
24
Management's Discussion and Analysis
Below are specific graphs showing the business -type activities revenue and expense
comparisons:
Unrestricted investment
Bus iness-7ypeActivities -Reveuue earnings
Charges for services
64%
Operating grants a
contributions
4%
Business-'I)W Activities - Expenses
Surface water
management
17%
water
50%
Sewer
339a
25
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 $14,947,496. Approximately 19% of this total amount ($2,944,091) constitutes
fund balance restricted by external constraints established by creditors, grantors, contributors, or
by state statutory provisions. $91,046 of fund balance is not in a spendable form, $6,657,125 has
been assigned, and $5,255,234 is unassigned.
The General Fund balance decreased by $416,624 in 2019. The decrease was primarily due to
the transfer out of prior year surplus to the Revolving Assessment Fund and Park Replacement
Fund.
The Revolving Assessment Fund balance increased by $394,334. The increase was due to a
combination of transfers in from utility funds for their portion of project costs, investment
income and assessment collections.
The TH101 Improvements — Pioneer to Flying Cloud Fund balance increased by $22,654. There
was no one material item that contributed to this increase.
The nonmajor special revenue funds decreased by $30,018. The decrease was due to cable TV
franchise expenditures exceeding revenue.
The nonmajor debt service funds increased by $64,833. The increase was primarily due to
investment earning.
The nonmajor capital project funds increased by $139,227. The increase was primarily due to
significant park and trail dedication fees collected in 2019.
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 $6,150,864 (Water),
$6,245,835 (Sewer) and $1,160,482 (Surface Water Management).
Net position in the Water Fund decreased by $884,103. The decrease is due to maintenance
expense related to painting one of the City's water towers.
Net position in the Sewer Fund increased by $134,945. The increase was due to combination of
receiving an Inflow and Infiltration grant from Metropolitan Council and investment earnings.
26
Management's Discussion and Analysis
Net position in the Surface Water Management Fund increased by $238,634. The increase was
due to contributions of capital assets and connection charges.
Budgetary Highlights
General Fund
There were no budget amendments to the General Fund in 2019.
Budgetary Variances — Revenues
The positive General Fund revenue variance of $376,109 was primarily due to building permit
revenue and investment income both exceeding budget.
Budgetary Variances — Expenses
Expenses for the General Fund had a positive variance of $53,726. There was no one significant
item that accounted for the budget variance.
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, 2019 amounts to $156,155,371 (net of accumulated depreciation).
This investment in capital assets includes land, easements, buildings, infrastructure, machinery,
and equipment.
27
Management's Discussion and Analysis
City of Chanhassen, Minnesota's Capital Assets
(Net of Depreciation)
Primary Government
Governmental activities:
Capital assets not being depreciated:
Land
Construction in progress
Permanent easements
Total capital assets not being depreciated
Capital assets being depreciated:
Buildings and structures
Machinery and equipment
Other improvements
Infrastructure
Temporary easements
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings and structures
Machinery and equipment
Other improvements
Infrastructure
Temporary easements
Total accumulated depreciation
Beginning
Ending
Balance
Increase
Decrease
Balance
$19,802,718
$109,600
$ -
$19,912,318
288,914
1,428,587
(226,148)
1,491,353
1,566,462
183,094
-
1,749,556
21,658,094
1,721,281
(226,148)
23,153,227
23,411,160
-
-
23,411,160
9,307,273
1,218,982
(535,537)
9,990,718
9,142,808
310,357
(60,769)
9,392,396
121,572,458
553,385
-
122,125,843
777,930
2,658,940
-
3,436,870
164,211,629 4,741,664 (596,306) 168,356,987
8,972,654
568,599
- 9,541,253
6,054,791
479,177
(433,918) 6,100,050
4,219,230
382,420
(60,769) 4,540,881
88,668,548
3,298,001
- 91,966,549
-
390,031
- 390,031
107,915,223 5,118,228 (494,687) 112,538,764
Governmental activities capital assets - net $77,954,500 $1,344,717 ($327,767) $78,971,450
28
Management's Discussion and Analysis
Primary Government
Business -type activities:
Capital assets not being depreciated:
Land
Construction in progress
Permanent easements
Total capital assets not being depreciated
Capital assets being depreciated:
Buildings and structures
Machinery and equipment
Other improvements
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings and structures
Machinery and equipment
Other improvements
Total accumulated depreciation
Business -type activities capital assets - net
Total capital assets - net
Beginning
Ending
Balance
Increase Decrease
Balance
$2,104,435
$100 $ -
$2,104,535
257,215
1,007,599 (26,440)
1,238,374
1,878,801
238,921 -
2,117,722
4,240,451
1,246,620 (26,440)
5,460,631
27,979,414 98,165
28,077,579
1,824,182
381,921
(174,442)
2,031,661
118,261,929
436,050
118,697,979
148,065,525
916,136
(174,442)
148,807,219
2,738,748
560,447
-
3,299,195
1,073,996
118,587
(121,942)
1,070,641
69,567,227
3,146,866
-
72,714,093
73,379,971
3,825,900
(121,942)
77,083,929
78,926,005 (1,663,144) (78,940) 77,183,921
$156,880,505 ($318,427) ($406,707) $156,155,371
Additional information on the City's capital assets can be found in Note 5.
Governmental Activities Capital Assets. There was an increase in capital assets due to an
increase in easements acquired as part of the Highway 101 construction project, offset by current
year depreciation.
Business -Type Activities Capital Assets. There was a decrease in capital assets due to the
reduction in depreciable assets (current year depreciation expense exceeded current additions).
Long-term debt. At the end of the current fiscal year, the City had total bonds payable
outstanding of $29,646,332 a decrease of $2,652,474 from 2018.
The balance of the bonds payable outstanding is comprised of $5,715,000 in general obligation
bonds, $22,935,000 of revenue bonds which financed capital investments for the water, sewer,
and surface water management operations, and unamortized bond premiums of $996,332.
Additional long-term debt in the amount of $875,027 for compensated absences was also
outstanding at the end of 2019.
29
Management's Discussion and Analysis
City of Chanhassen, Minnesota's Outstanding Debt
Governmental Activities
Business -Type
Activities
Totals
2019
2018
2019
2018
2019
2018
General obligation bonds
$5,715,000
$6,435,000
$ -
$ -
$5,715,000
$6,435,000
Revenue bonds
-
-
22,935,000
24,785,000
22,935,000
24,785,000
Bond premium
175,833
191,818
820,499
886,988
996,332
1,078,806
Compensated absences
682,952
676,840
192,075
203,890
875,027
880,730
Total
$6,573,785
$7,303,658
$23,947,574
$25,875,878
$30,521,359
$33,179,536
As the financial statements will indicate, the City maintained strong financial reserves and
continues its practice of utilizing multiple long term financial planning documents. The City's
bond rating was affirmed in February 2020 by Standard & Poor's. 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 $133,338,810. Of the
City's outstanding debt, $5,715,000 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.
30
31
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32
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF NET POSITION
December 31, 2019
With Comparative Totals For December 31, 2018
Assets:
Cash and investments
Restricted cash
Accrued interest receivable
Due from other governmental units
Accounts receivable - net
Property taxes receivable
Prepaid items
Inventories - at cost
Internal balances
Special assessments receivable
Capital assets (net of accumulated depreciation):
Nondepreciable
Depreciable
Total assets
Deferred outflows of resources:
Deferred outflows of resources related to other post employement benefits
Deferred outflows of resources related to pensions
Total deferred outflows of resources
Liabilities:
Accounts payable
Due to other governmental units
Salaries payable
Contracts payable
Accrued interest payable
Unearned revenue
Compensated absences payable:
Due within one year
Due in more than one year
Other post employment benefits payable:
Due in more than one year
Bonds payable:
Due within one year
Due in more than one year
Net pension liability:
Due in more than one year
Total liabilities
Deferred inflows of resources:
Deferred inflows of resources related to other post employement benefits
Deferred inflows of resources related to pensions
Total deferred inflows of resources
Net position:
Net investment in capital assets
Restricted for:
Debt service
Park improvements
Other purposes
Unrestricted
Total net position
Statement 1
Governmental
Activities
Business -Type
Activities
Totals
2019
2018
$13,837,328
$14,984,322
$28,821,650
$32,878,333
-
301
301
1,700,044
66,396
74,814
141,210
157,187
1,750,554
399,197
2,149,751
475,007
130,729
1,541,391
1,672,120
1,726,682
209,707
-
209,707
188,063
91,046
27,481
118,527
143,483
-
53,643
53,643
62,873
749,440
(749,440)
-
-
1,707,961
44,978
1,752,939
1,933,100
23,153,227 5,460,631 28,613,858 25,898,545
55,818,223 71,723,290 127,541,513 130,981,959
97,514,611 93,560,608 191,075,219 196,145,276
9,118 - 9,118 -
677,138 69,933 747,071 1,308,568
686,256 69,933 756,189 1,308,568
818,167
172,141
990,308
892,087
271,885
84,907
356,792
163,322
245,667
52,592
298,259
270,038
321,170
144,910
466,080
847,217
60,700
291,450
352,150
417,977
90,159
825
90,984
3,742,521
98,606
27,732
126,338
138,272
584,346
164,343
748,689
742,458
155,719
-
155,719
199,068
745,000
1,870,000
2,615,000
2,570,000
5,145,833
21,885,499
27,031,332
29,728,806
4,055,035 737,966 4,793,001 5,308,001
12,592,287 25,432,365 38,024,652 45,019,767
73,218 - 73,218 -
1,305,779 171,035 1,476, 814 1,512,417
1,3 78,997 171,035 1,550,032 1,512,417
72,986,179 54,469,960 127,456,139 127,248,740
1,283,606
1,283,606
1,189,447
1,537,790
1,537,790
1,224,509
61,995
- 61,995
135,024
8,360,013
13,557,181 21,917,194
21,123,940
$84,229,583
$68,027,141 $152,256,724
$150,921,660
The accompanying notes are an integral part of these financial statements.
33
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2019
With Comparative Totals For The Year Ended December 31, 2018
Functions/Programs
Primary government:
Governmental activities:
General government
Public safety
Public works
Parks and recreation
Community development
Interest and fees on long-term debt
Total governmental activities
Business -type activities:
Water
Sewer
Surface water management
Total business -type activities
Total primary government
Expenses
Program Revenues
Charges For
Services
$2,968,604
$505,862
4,045,361
1,474,555
9,808,088
140,753
3,275,021
1,078,128
535,700
28,866
132,327
-
20,765,101
3,228,164
5,842,506
3,108,307
3,879,581
3,144,282
1,918,378
998,832
11,640,465
7,251,421
$32,405,566
$10,479,585
The accompanying notes are an integral part of these financial statements.
34
Program Revenues
Operating
Capital
Grants and
Grants and
Contributions
Contributions
$15,615
$ -
461,223
-
2,268,380
4,716,702
25,437
-
2,770,655
4,716,702
335
1,598,707
206,353
598,124
254,217
911,546
460,905
3,108,377
$3,231,560 $7,825,079
General revenues:
General property taxes
Grants and contributions not
restricted to specific programs
Unrestricted investment earnings
Gain on sale of capital assets
Transfers
Total general revenues and transfers
Change in net position
Net position - January 1
Net position - December 31
Statement 2
Net (Expense) Revenue and
Changes in Net Position
Governmental
Business -Type
Totals
Activities
Activities
2019
2018
($2,447,127)
$ -
($2,447,127)
($2,698,397)
(2,109,583)
-
(2,109,583)
(1,612,519)
(2,682,253)
-
(2,682,253)
(4,975,767)
(2,171,456)
-
(2,171,456)
(2,034,659)
(506,834)
-
(506,834)
(557,342)
(132,327)
-
(132,327)
(173,323)
(10,049,580)
0
(10,049,580)
(12,052,007)
-
(1,135,157)
(1,135,157)
1,102,476
-
69,178
69,178
(112,717)
-
246,217
246,217
(384,413)
0
(819,762)
(819,762)
605,346
(10,049,580)
(819,762)
(10,869,342)
(11,446,661)
10,996,831
-
10,996,831
10,877,849
20,009
-
20,009
19,755
491,345
548,747
1,040,092
522,258
103,976
43,498
147,474
55,812
283,007
(283,007)
-
-
11,895,168
309,238
12,204,406
11,475,674
1,845,588
(510,524)
1,335,064
29,013
82,383,995
68,537,665
150,921,660
150,892,647
$84,229,583
$68,027,141
$152,256,724
$150,921,660
The accompanying notes are an integral part of these financial statements.
35
CITY OF CHANHASSEN, MINNESOTA
BALANCESHEET
GOVERNMENTALFUNDS
December 31, 2019
With Comparative Totals For December 31, 2018
Statement 3
605 TH101
Improvments -
Other
601 Revolving
Pioneer to
Governmental
General Fund
Assessment Fund
Flying Cloud
Funds
Total Governmental Funds
Assets:
2019
2018
Cash and investments
$5,088,739
$1,573,293
$ -
$7,175,296
$13,837,328
$18,189,001
Accrued interest receivable
22,834
6,937
5,821
30,804
66,396
80,703
Due from other governmental units
79,650
808,120
837,257
25,527
1,750,554
468,027
Due from other funds
508,701
-
-
-
508,701
-
Accounts receivable - net
44,311
-
86,418
130,729
138,556
Property taxes receivable
198,586
1,894
9,227
209,707
188,063
Prepaid items
82,265
-
8,781
91,046
96,393
Interfund loan receivable
-
35,840
713,600
749,440
925,517
Special assessments receivable
1,388,121
-
319,840
1,707,961
1,870,789
Total assets
$6,025,086
$3,814,205
$843,078
$8,369,493
$19,051,862
$21,957,049
Liabilities, Deferred Inflows of Resources,
and Fund Balances
Liabilities:
Accounts payable
$175,904
$70,102
$75,967
$496,194
$818,167
$729,939
Due to other governmental units
42,434
25,234
1,314
202,903
271,885
60,076
Due to other funds
-
-
508,131
570
508,701
-
Salaries payable
236,722
-
-
8,945
245,667
219,688
Contracts payable
-
133,731
182,000
5,439
321,170
432,897
Interfund loan payable
-
-
-
-
-
96,065
Unearned revenue
89,868
291
-
-
90,159
3,741,696
Total liabilities
544,928
229,358
767,412
714,051
2,255,749
5,280,361
Deferred inflows of resources:
Unavailable revenue
142,089
1,386,688
-
319,840
1,848,617
1,903,598
Fund balances:
Nonspendable
82,265
-
8,781
91,046
96,393
Restricted
-
-
-
2,944,091
2,944,091
2,618,680
Assigned
-
2,198,159
75,666
4,383,300
6,657,125
6,414,882
Unassigned
5,255,804
-
-
(570)
5,255,234
5,643,135
Total fund balances
5,338,069
2,198,159
75,666
7,335,602
14,947,496
14,773,090
Total liabilities, deferred inflows of resources,
and fund balances
$6,025,086
$3,814,205
$843,078
$8,369,493
$19,051,862
$21,957,049
Fund balance reported above
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and, therefore, are not
reported in the funds.
Other long-term assets are not available to pay for current period expenditures and, therefore, are
reported as unavailabe revenue in the funds.
Long-term liabilities, including pension related deferred outflows and inflows, are not due
and payable in the current period and, therefore, are not reported in the funds (see Note IU).
Net position of governmental activities
$14,947,496 $14,773,090
78,971,450 77,954,500
1,848,617 1,903,598
(11,537,980) (12,247,193)
$84,229,583 $82,383,995
The accompanying notes are an integral part of these financial statements.
36
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND Statement 4
CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
For The Year Ended December 31, 2019
With Comparative Totals For The Year Ended December 31, 2018
Revenues:
General property taxes
Licenses and permits
Intergovernmental
Special assessments
Charges for services
Fines and forfeits
Investment earnings
Contributions and donations
Refunds and reimbursements
Other
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Parks and recreation
Community development
Capital outlay:
General government
Public safety
Public works
Parks and recreation
Debt service:
Principal
Interest and paying agent fees
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Sale of capital assets
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance - January 1
Fund balance - December 31
General Fund
601 Revolving
Assessment Fund
605 TH101
Improvments -
Pioneer to
Flying Cloud
Other
Governmental
Funds
Total Governmental Funds
2019
2018
$8,751,341
$381,223
$
$1,828,312
$10,960,876
$10,856,842
1,432,604
-
614,586
2,047,190
2,289,052
443,910
1,045,247
4,503,721
301,539
6,294,417
2,019,215
-
595,324
-
131,702
727,026
600,056
613,879
-
194,131
808,010
820,745
89,989
-
-
-
89,989
95,351
162,553
54,461
41,440
232,891
491,345
258,456
25,437
-
-
44,765
70,202
70,339
47,449
3
-
26,016
73,468
156,920
204,307
2,400
2,800
209,507
225,522
11,771,469
2,076,258
4,547,561
3,376,742
21,772,030
17,392,498
2,190,982
453,679
2,644,661
2,835,108
3,692,218
- - 110,326
3,802,544
3,593,877
2,638,656
1,111,841 1,865,967 424,953
6,041,417
3,847,782
2,252,887
151,617 - 13,725
2,418,229
2,326,272
566,891
- 570
567,461
610,368
-
110,044
110,044
22,133
-
- - 701,818
701,818
1,169,952
-
2,221,663 2,658,940 79,394
4,959,997
2,315,068
-
- - 797,124
797,124
1,316,908
720,000 720,000 5,985,000
- - - 157,312 157,312 295,294
11,341,634 3,485,121 4,524,907 3,568,945 22,920,607 24,317,762
429,835 (1,408,863) 22,654 (192,203) (1,148,577) (6,925,264)
-
25,698
25,698
58,458
1,803,197
350,000
2,153,197
6,724,164
(846,459)
-
- (9,453)
(855,912)
(6,369,316)
(846,459)
1,803,197
0 366,245
1,322,983
413,306
(416,624)
394,334
22,654 174,042
174,406
(6,511,958)
5,754,693
1,803,825
53,012 7,161,560
14,773,090
21,285,048
$5,338,069 $2,198,159 $75,666 $7,335,602 $14,947,496 $14,773,090
The accompanying notes are an integral part of these financial statements.
37
CITY OF CHANHASSEN, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2019
With Comparative Totals For The Year Ended December 31, 2018
Statement 5
2019
2018
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)
$174,406
($6,511,958)
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
6,568,983
4,824,061
Depreciation expense
(5,118,228)
(4,721,100)
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
494,542
420,249
Transfer of capital assets to Enterprise Funds
(1,014,278)
(674,376)
Gain (loss) on disposal of capital assets
85,931
(13,214)
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
35,955
21,007
Change in deferred and delinquent special assessments
(90,936)
(505,188)
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.
Repayment of principal
720,000 5,985,000
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
(6,112) 28,362
Change in other post employment benefits payable
(20,751) (151,412)
Change in accrued interest payable
9,000 105,986
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.
(8,909) 6,367
Change in net position of governmental activities (Statement 2)
$1,845,588 ($1,170,231)
The accompanying notes are an integral part of these financial statements.
38
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2019
With Comparative Totals For December 31, 2018
Assets:
Current assets:
Cash and cash equivalents
Restricted cash
Accrued interest receivable
Due from other governmental units
Accounts receivable - net
Interfund loan receivable
Prepaid items
Water meter inventory
Special assessments receivable
Connection charges receivable
Total current assets
Noncurrent assets:
Capital assets:
Nondepreciable
Depreciable
Total capital assets
Less: Allowance for depreciation
Net capital assets
Total assets
Deferred outflows of resources related to pensions
Liabilities:
Current liabilities:
Accounts payable
Due to other governmental units
Salaries payable
Contracts payable
Accrued interest payable
Unearned revenue
Interfund loan payable - due within one year
Compensated absences payable - due within one year
Bonds payable - due within one year
Total current liabilities
Noncurrent liabilities:
Interfund loan payable
Compensated absences payable
Bonds payable
Net pension liability
Total noncurrent liabilities
Total liabilities
Deferred inflows of resources related to pensions
Net position:
Net investment in capital assets
Unrestricted
Total net position
Statement 6
Totals
Surface Water
Water Sewer Management 2019 2018
$7,823,228
$6,308,496
$852,598
$14,984,322
$14,689,332
301
-
-
301
1,700,044
37,238
30,729
6,847
74,814
76,484
174,491
427
224,279
399,197
6,980
564,027
600,897
376,467
1,541,391
1,588,126
-
-
-
-
96,065
9,510
9,189
8,782
27,481
47,090
53,643
-
-
53,643
62,873
42,153
1,218
43,371
50,023
1,204
403
-
1,607
12,288
8,705,795
6,951,359
1,468,973
17,126,127
18,329,305
2,813,407
963,107
1,684,117
5,460,631
4,240,451
81,393,538
36,508,533
30,905,148
148,807,219
148,065,525
84,206,945
37,471,640
32,589,265
154,267,850
152,305,976
(33,785,018)
(25,573,850)
(17,725,061)
(77,083,929)
(73,379,972)
50,421,927
11,897,790
14,864,204
77,183,921
78,926,004
59,127,722
18,849,149
16,333,177
94,310,048
97,255,309
29,977 24,567 15,389 69,933 139,478
107,051
47,844
17,246
172,141
162,148
17,399
7,500
60,008
84,907
103,246
27,151
16,822
8,619
52,592
50,350
142,340
2,570
-
144,910
414,320
289,983
1,467
-
291,450
348,277
-
-
825
825
825
193,225
-
-
193,225
192,867
11,603
10,764
5,365
27,732
32,010
1,807,500
62,500
-
1,870,000
1,850,000
2,596,252
149,467
92,063
2,837,782
3,154,043
556,215
-
-
556,215
732,650
68,761
63,785
31,797
164,343
171,880
21,687,999
197,500
-
21,885,499
23,821,988
316,328
259,253
162,385
737,966
774,088
22,629,303
520,538
194,182
23,344,023
25,500,606
25,225,555
670,005
286,245
26,181,805
28,654,649
73,314 60,086 37,635 171,035 202,473
27,707,966 11,897,790 14,864,204 54,469,960 56,195,385
6,150,864 6,245,835 1,160,482 13,557,181 12,342,280
$33,858,830 $18,143,625 $16,024,686 $68,027,141 $68,537,665
The accompanying notes are an integral part of these financial statements.
39
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND Statement 7
CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For The Year Ended December 31, 2019
With Comparative Totals For The Year Ended December 31, 2018
Totals
Surface Water
Water
Sewer
Management
2019
2018
Operating revenues:
Charges for services
$2,816,932
$3,067,469
$978,585
$6,862,986
$6,694,031
Penalties and other
114,732
76,489
20,185
211,406
213,066
Intergovernmental
131
206,353
221,924
428,408
44,604
Total operating revenues
2,931,795
3,350,311
1,220,694
7,502,800
6,951,701
Operating expenses:
Personal services
798,372
494,444
280,571
1,573,387
1,640,390
Materials and supplies
314,739
25,603
27,612
367,954
462,311
Contractual services:
MCES
-
1,904,789
-
1,904,789
1,830,942
Other
1,747,925
397,901
691,110
2,836,936
1,634,071
Repairs and maintenance
369,890
101,492
614
471,996
387,410
Depreciation
1,955,887
951,542
918,471
3,825,900
3,459,732
Total operating expenses
5,186,813
3,875,771
1,918,378
10,980,962
9,414,856
Operating income (loss)
(2,255,018)
(525,460)
(697,684)
(3,478,162)
(2,463,155)
Nonoperating revenues (expenses):
Investment earnings
281,251
218,757
48,739
548,747
263,802
Refunds and reimbursements
3,747
324
2,355
6,426
13,332
Interest and fiscal charges
(655,693)
(3,810)
-
(659,503)
(756,526)
Gain (loss) on disposal of capital assets
3,499
3,499
36,500
43,498
(143,203)
Total nonoperating revenues (expenses)
(367,196)
218,770
87,594
(60,832) (622,595)
Income before contributions and transfers
(2,622,214)
(306,690)
(610,090)
(3,538,994)
(3,085,750)
Transfers in
9,453
-
-
9,453
124,135
Transfers out
(578,477)
(258,810)
(469,451)
(1,306,738)
(478,983)
Capital contributions:
Intergovernmental revenue
173,100
-
30,000
203,100
-
Contributions of capital assets
679,114
261,894
529,353
1,470,361
1,324,842
Special assessments
3,996
134
-
4,130
11,891
Connection charges
1,450,925
438,417
758,822
2,648,164
3,303,109
Total contributions and transfers
1,738,111
441,635
848,724
3,028,470
4,284,994
Change in net position
(884,103)
134,945
238,634
(510,524)
1,199,244
Net position - January 1 34,742,933 18,008,680 15,786,052 68,537,665 67,338,421
Net position - December 31 $33,858,830 $18,143,625 $16,024,686 $68,027,141 $68,537,665
Capital Transfers -
Contributions Net
Amounts reported above $4,122,655 ($1,297,285)
Amounts reported for business -type activities in the
statement of activities are different because:
Transfer in of capital assets from governmental activities (1,014,278) 1,014,278
Amounts reported on the statement of activities
$3,108,377 ($283,007)
The accompanying notes are an integral part of these financial statements.
40
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2019
With Comparative Totals For The Year Ended December 31, 2018
Cash flows from operating activities
Statement 8
Totals
Surface Water
Water Sewer Management 2019 2018
Receipts from customers and users
$3,098,955
$3,414,522
$816,941
$7,330,418
$6,599,883
Payment to suppliers
(2,473,329)
(2,423,343)
(735,086)
(5,631,758)
(4,056,276)
Payment to employees
(804,190)
(492,880)
(283,905)
(1,580,975)
(1,635,582)
Miscellaneous revenue
3,747
324
2,355
6,426
13,332
Net cash flows provided by (used by) operating activities
(174,817)
498,623
(199,695)
124,111
921,357
Cash flows from noncapital financing activities:
Transfers in
9,453
-
-
9,453
124,135
Interfund loan receivable - collections
96,065
-
96,065
58,441
Interfund loan payable - (payments)
(192,867)
-
(192,867)
(192,517)
Net cash flows used by
noncapital financing activities
(87,349)
0
0
(87,349)
(9,941)
Cash flows from capital and related financing activities:
Acquisition of capital assets
Connection charges
Intergovernmental revenue
Special assessment collections
Transfers out
Proceeds from issuance of bonds
Principal paid on bonds
Interest and fiscal charges
Net cash flows used by capital
and related financing activities
Cash flows from investing activities:
Investment earnings
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - January 1
Cash and cash equivalents - December 31
Reconciliation of operating loss to net cash
provided (used) by operating activities:
Operating loss
Adjustments to reconcile operating loss
to net cash flows from operating activities:
Miscellaneous revenue
Depreciation
Changes in assets and liabilities, deferred outflows and inflows:
Decrease (increase) in receivables
Decrease (increase) in prepaid items
Decrease (increase) in inventory
Decrease (increase) in deferred outflows of resources
Increase (decrease)in payables
Increase (decrease) in net pension liability
Increase (decrease) in deferred inflows of resources
Total adjustments
Net cash flows provided by (used in) operating activities
(113,171)
(210,611)
(445,010)
(768,792)
(7,753,123)
1,461,203
438,820
758,822
2,658,845
3,302,516
-
-
30,000
30,000
-
9,642
1,140
-
10,782
19,460
(578,477)
(258,810)
(469,451)
(1,306,738)
(478,983)
-
-
3,734,159
(1,787,500)
(62,500)
-
(1,850,000)
(1,375,000)
(761,959)
(4,070)
-
(766,029)
(724,495)
(1,770,262)
(96,031) (125,639)
(1,991,932)
(3,275,466)
282,055
218,915
49,447
550,417
244,344
(1,750,373)
621,507
(275,887)
(1,404,753)
(2,119,706)
9,573,902
5,686,989
1,128,485
16,389,376
18,509,082
$7,823,529
$6,308,496
$852,598
$14,984,623
$16,389,376
($2,255,018) ($525,460) ($697,684) ($3,478,162) ($2,463,155)
3,747
324
2,355
6,426
13,332
1,955,887
951,542
918,471
3,825,900
3,459,732
167,160
64,211
(403,753)
(172,382)
(351,918)
8,773
6,413
4,423
19,609
(26,338)
9,230
-
-
9,230
16,654
29,810
24,432
15,303
69,545
75,978
(65,446)
895
(23,944)
(88,495)
283,784
(15,484)
(12,690)
(7,948)
(36,122)
(106,152)
(13,476)
(11,044)
(6,918)
(31,438)
19,440
2,080,201
1,024,083
497,989
3,602,273
3,384,512
($174,817)
$498,623
($199,695)
$124,111
$921,357
Noncash investing, capital and financing activities:
Capital assets in the amount of $679,114 and $310,743 were contributed to the Water Fund in 2019 and 2018, respectively.
Capital assets in the amount of $261,894 and $269,507 were contributed to the Sewer Fund in 2019 and 2018, respectively.
Capital assets in the amount of $529,353 and $744,592 were contributed to the Surface Water Fund in 2019 and 2018, respectively.
The accompanying notes are an integral part of these financial statements.
41
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF NET POSITION
FIDUCIARY FUNDS
December 31, 2019
With Comparative Totals For December 31, 2018
Statement 9
Agency Funds
2019 2018
Assets:
Cash and investments $2,291,592 $2,161,036
Liabilities:
Accounts payable $69,802 $27,975
Escrow deposits payable 2,221,790 2,133,061
Total liabilities $2,291,592 $2,161,036
The accompanying notes are an integral part of these financial statements.
42
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Chanhassen, Minnesota (the City) was incorporated in 1967 and operates under the State of Minnesota
Statutory Plan B form of government. The governing body consists of a five member City council elected by voters
of the City.
The financial statements of the City have been prepared in conformity with accounting principles generally accepted
in the United States of America as applied to governmental units by the Governmental Accounting Standards Board
(GASB). The following is a summary of the significant accounting policies.
A. FINANCIAL REPORTING ENTITY
In accordance with GASB pronouncements and accounting principles generally accepted in the United
States of America, the financial statements of the reporting entity should include those of the City (the
primary government) and its component units. The component unit discussed below is included in the
City's reporting entity because of the significance of its operational or financial relationships with the City.
COMPONENT UNITS
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.
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.
43
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
The statement of activities demonstrates the degree to which the direct expenses of a given function or
business -type activity, are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or business -type activity. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided
by a given function or business -type activity and 2) grants and contributions that are restricted to meeting
the operational or capital requirements of a particular function or business -type activity. Taxes and other
items not included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds,
even though the latter are excluded from the government -wide financial statements. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
The government -wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund financial statements and the fiduciary fund
financial statements. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the
year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met. The City's only fiduciary funds are agency funds.
Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of
operations.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
considers all revenues, except reimbursement grants, to be available if they are collected within 60 days of
the end of the current fiscal period. Reimbursement grants are considered available if they are collected
within one year of the end of the current fiscal period. Expenditures generally are recorded when a liability
is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures
related to compensated absences and claims and judgments, are recorded only when payment is due.
Property taxes, special assessments, intergovernmental revenues, charges for services and interest
associated with the current fiscal period are all considered to be susceptible to accrual and so have been
recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due
within the current fiscal period is considered to be susceptible to accrual as revenue of the current period.
All other revenue items are considered to be measurable and available only when cash is received by the
City.
The City reports the following major governmental funds:
General Fund is the City's primary operating fund. It accounts for all financial resources of the
general government, except those required to be accounted for in another fund.
44
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
Revolving Assessment Fund (601) accounts for the City's annual street re -construction program. The
individual property owner pays a portion of the cost of the annual project with assessments and the
City funds its portion with the reserves created in this fund and an annual tax levy.
TH101 Improvements — 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.
Additionally, the City reports the following fund type:
Fiduciary funds — Agency funds account for the assets of various escrow deposits and the Moon Valley
Restoration Funds held by the City in a trustee capacity or as an agent.
As a general rule the effect of interfund activity has been eliminated from the government -wide financial
statements. Exceptions to this general rule are transactions that would be treated as revenues, expenditures
or expenses if they involved external organizations, such as buying goods and services or payments in lieu
of taxes, are similarly treated when they involve other funds of the City. Elimination of these charges
would distort the direct costs and program revenues reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions,
including special assessments. Internally dedicated resources are reported as general revenues rather than
as program revenues. Likewise, general revenues include all taxes.
Proprietary Funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the
water, sewer, and surface water management enterprise funds are charges to customers for sales and
services. Operating expenses for enterprise funds include the cost of sales and services, administrative
expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are
reported as nonoperating revenues and expenses.
45
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
D. BUDGETS
Budgets are adopted on a basis consistent with accounting principles generally accepted in the United
States of America. Annual appropriated budgets are adopted for the General Fund and for the
Contribution, Cemetery, and CATV Special Revenue Funds.
Budgeted amounts are reported as originally adopted, or as amended by the City Council. There were no
budget amendments during 2019. 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
Contribution Fund $51,500 $54,615 $3,115
CATV Fund 168,500 230,339 61,839
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.
46
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
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.
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
47
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
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.
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.
48
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
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.
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.
49
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
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 OUTFLOWSANFLOWS OF RESOURCES
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element represents a consumption of net
position that applies to future periods and so will not be recognized as an outflow of resources
(expense/expenditure) until then. The government has one item that qualifies for reporting in the category.
It is the pension related deferred outflows of resources reported in the government -wide Statement of Net
Position and the proprietary funds Statement of Net Position.
In addition to liabilities, the statement of financial position reports a separate section for deferred inflows
of resources. This separate financial statement element represents an acquisition of net position that
applies to future periods, and therefore, will not be recognized as an inflow of resources (revenue) until
that time. The government has pension related deferred inflows of resources reported in the government -
wide Statement of Net Pension and the proprietary funds Statements of Net Position. The government also
has 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.
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.
50
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
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, 2018, from which the summarized information was derived.
T. PENSION PLANS
COST SHARING MULTIPLE — EMPLOYER PLANS
For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension
expense, information about the fiduciary net position of the Public Employees Retirement Association
(PERA) and additions to/deductions from PERA's fiduciary net position have been determined on the same
basis as they are reported by PERA except 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.
51
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
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
Reliefs 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 ($11,544,967) difference are as follows:
Bonds payable
($5,715,000)
Unamortized bond premium
(175,833)
Accrued interest payable
(60,700)
Compensated absences payable
(682,952)
Other post employment benefits payable
(155,719)
Net pension liability
(4,385,812)
Deferred outflows of resources related to pensions
814,882
Deferred inflows of resources related to pensions
(1,119,733)
Deferred outflows of resources related to OPEB
9,118
Deferred inflows of resources related to OPEB
(73,218)
Net adjustment to decrease fund balances - total governmental
funds to arrive at net position - governmental activities ($11,544,967)
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, 2019, the bank balance of the City's deposits was insured by the FDIC or covered by
pledged collateral held in the City's name.
52
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City Treasurer
or in a financial institution other than that furnishing the collateral. Authorized collateral includes the
following:
a) United States government treasury bills, treasury notes, treasury bonds;
b) Issues of United States government agencies and instrumentalities as quoted by a recognized industry
quotation service available to the government entity;
c) General obligation securities of any state or local government with taxing powers which is rated "A"
or better by a national bond rating service, or revenue obligation securities of any state or local
government with taxing powers which is rated "AA" or better by a national bond rating service;
d) General obligation securities of a local government with taxing powers may be pledged as collateral
against funds deposited by that same local government entity;
e) Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality
accompanied by written evidence that the bank's public debt is rated "AA" or better by Moody's
Investors Service, Inc. or Standard & Poor's Corporation; and
f) Time deposits that are fully insured by any federal agency.
At December 31, 2019, the carrying amount of the City's deposits with financial institutions was
$3,743,455.
B. INVESTMENTS
Minnesota Statutes authorize the City to invest in the following:
a) Direct obligations or obligations guaranteed by the United States or its agencies, its instrumentalities,
or organizations created by an act of congress, excluding mortgage -backed securities defined as high
risk.
b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and
whose only investments are in securities described in (a) above, general obligation tax-exempt
securities, or repurchase or reverse repurchase agreements.
c) State and local securities as follows:
1) any security which is a general obligation of any state or local government with taxing powers
which is rated "A" or better by a national bond rating service;
2) any security which is a revenue obligation of any state or local government with taxing powers
which is rated "AA" or better by a national bond rating service; and
3) a general obligation of the Minnesota Housing Finance Agency which is a moral obligation of the
State of Minnesota and is rated "A" or better by a national bond rating agency.
d) Bankers' acceptance of United States banks.
e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest
quality, and maturing in 270 days or less.
53
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve
System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government
securities to the Federal Reserve Bank of New York; certain Minnesota securities broker -dealers; or, a
bank qualified as a depositor.
g) General obligation temporary bonds of the same governmental entity issued under section 429.091,
subdivision 7; 469.178, subdivision 5; or 475.61, subdivision 6.
As of December 31, 2019, the City had the following investments and maturities:
Investment Maturities (in Years)
Fair
Less
Investment Type
Rating
Value
Than 1
1-5
6-10
Money Market
NR
$3,934,605
$3,934,605
$ -
$
Brokered Certificates of Deposit
NR
4,478,157
1,741,065
2,737,092
Municipal Bonds
(1)
8,964,584
1,711,662
6,188,156
1,064,766
Federal National Mortgage Assn. Notes
Aaa
1,500,315
999,060
501,255
-
Federal Home Loan Mortgage Corp. Notes
Aaa
1,501,706
1,501,706
-
Federal Home Loan Bank Notes
Aaa
3,124,362
1,897,466
1,226,896
-
Federal Farm Credit Bank
Aaa
2,566,140
499,987
1,524,298
541,855
US Treasury Notes
Aaa
1,299,584
1,299,584
-
-
Total
$27,369,453
$13,585,135
$12,177,697
$1,606,621
(1) $1,608,977 are rated Ann, $2,728,855 are rated Aal,
Total investments
$27,369,453
$517,750 are rated Aa2, $3,123,748 are rated AAA,
Deposits
3,743,455
and $985,254 are rated AA
Petty cash
635
Total cash and investments
$ 31,1 13,543
NR - Not Rated
Classifications above are by maturity date. Some investments listed above have call dates that occur in less than one year
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.
54
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
The City has the following recurring fair value measurements as of December 31, 2019:
Investment Type
Investments at fair value:
Brokered Certificates of Deposit
Municipal Bonds
Federal National Mortgage Assn. Notes
Federal Home Loan Mortgage Corp. Notes
Federal Home Loan Bank Notes
Federal Farm Credit Bank
US Treasury Notes
Total/subtotal
Investments not categorized:
Money Market
Total
Fair Value Measurement Using
12/31/2019 Level Level Level
$4,478,157
$ $4,478,157 $
8,964,584
8,964,584
1,500,315
1,500,315
1,501,706
1,501,706
3,124,362
3,124,362
2,566,140
2,566,140
1,299,584
1,299,584
23,434,848
$0 $23,434,848 $0
3,934,605
$27,369,453
Cash and investments are presented in the financial statements as follows:
Cash and investments:
Governmental and business -type (Statement 1)
Fiduciary (Statement 9)
Restricted cash (Statement 1)
Total
C. INVESTMENT RISKS
$28,821,650
2,291,592
301
$31,113,543
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
55
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
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 National Mortgage Association Notes 6%
Federal Home Loan Mortgage Corporation Notes 6%
Federal Home Loan Bank Notes 11%
Federal Farm Credit Bank 9%
Note 3 RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2019 are as follows:
Interfund
Delinquent
Special
Loan
Property
Assessments
Receivable
Taxes
Receivable
Total
Major Funds:
General
$ -
$60,173
$ -
$60,173
Revolving Assessment Fund
-
-
1,105,088
1,105,088
Water
-
-
40,436
40,436
Sewer
-
-
627
627
Nonmajor Funds
556,215
-
319,534
875,749
$556,215
$60,173
$1,465,685
$2,082,073
56
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
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, 2019, the various
components of unavailable revenue were as follows:
Major Funds
Revolving
General Assessment
Nonmajor
Fund Fund
Funds
Total
Delinquent property taxes receivable $142,089 $ -
$ -
$142,089
Special assessments not yet due - 1,386,688
319,840
1,706,528
Total unavailable revenue $142,089 $1,386,688
$319,840
$1,848,617
57
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
Note 5 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2019 was as follows:
Beginning
Ending
Primary Government
Balance
Increase
Decrease
Balance
Governmental activities:
Capital assets not being depreciated:
Land
$19,802,718
$109,600
$ -
$19,912,318
Construction in progress
288,914
1,428,587
(226,148)
1,491,353
Permanent easements
1,566,462
183,094
-
1,749,556
Total capital assets not being depreciated
21,658,094
1,721,281
(226,148)
23,153,227
Capital assets being depreciated:
Buildings and structures
23,411,160
-
-
23,411,160
Machinery and equipment
9,307,273
1,218,982
(535,537)
9,990,718
Other improvements
9,142,808
310,357
(60,769)
9,392,396
Infrastructure
121,572,458
553,385
-
122,125,843
Temporary easements
777,930
2,658,940
-
3,436,870
Total capital assets being depreciated
164,211,629
4,741,664
(596,306)
168,356,987
Less accumulated depreciation for:
Buildings and structures
8,972,654
568,599
-
9,541,253
Machinery and equipment
6,054,791
479,177
(433,918)
6,100,050
Other improvements
4,219,230
382,420
(60,769)
4,540,881
Infrastructure
88,668,548
3,298,001
-
91,966,549
Temporary easements
390,031
-
390,031
Total accumulated depreciation
107,915,223
5,118,228
(494,687)
112,538,764
Governmental activities capital assets - net
$77,954,500
$1,344,717
($327,767)
$78,971,450
Beginning
Ending
Primary Government
Balance
Increase
Decrease
Balance
Business -type activities:
Capital assets not being depreciated:
Land
$2,104,435
$100
$ -
$2,104,535
Construction in progress
257,215
1,007,599
(26,440)
1,238,374
Permanent easements
1,878,801
238,921
2,117,722
Total capital assets not being depreciated
4,240,451
1,246,620
(26,440)
5,460,631
Capital assets being depreciated:
Buildings and structures
27,979,414
98,165
28,077,579
Machinery and equipment
1,824,182
381,921
(174,442)
2,031,661
Other improvements
118,261,929
436,050
118,697,979
Total capital assets being depreciated
148,065,525
916,136
(174,442)
148,807,219
Less accumulated depreciation for:
Buildings and structures
2,738,748
560,447
3,299,195
Machinery and equipment
1,073,996
118,587
(121,942)
1,070,641
Other improvements
69,567,227
3,146,866
72,714,093
Total accumulated depreciation
73,379,971
3,825,900
(121,942)
77,083,929
Business -type activities capital assets - net
78,926,005
(1,663,144)
(78,940)
77,183,921
Total capital assets - net
$156,880,505
($318,427)
($406,707)
$156,155,371
58
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities:
General government
$310,285
Public safety
178,280
Public works
3,778,583
Parks and recreation
851,080
Total depreciation expense - governmental activities $5,118,228
Business -type activities:
Water $1,955,887
Sewer 951,542
Surface water management 918,471
Total depreciation expense - business -type activities $3,825,900
Note 6 CITY INDEBTEDNESS
The City issues general obligation bonds to provide funds for the acquisition and construction of major capital
facilities. The City's long-term debt is segregated between the amounts to be repaid from governmental activities
and amounts to be repaid from business -type activities.
GOVERNMENTAL ACTIVITIES
As of December 31, 2019, the governmental activities long-term debt of the City consisted of the following:
Final Authorized
Issue Maturity Interest And Outstanding
Date Date Rate Issued 12/31/19
General Long -Term Debt:
General Obligation Bonds:
G.O. Library Refunding Bonds, Series 2010A 1/27/10 2/1/2022 2.00% - 3.10% $3,660,000 $1,240,000
G.O. Bonds, Series 2016A 3/3/2016 2/1/2030 2.00% - 3.00% 4,805,000 4,475,000
Bond premium 239,773 175,833
Total general obligation bonds 8,704,773 5,890,833
Compensated absences payable
Total City indebtedness - governmental activities
N/A 682,952
$8,704,773 $6,573,785
59
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
BUSINESS -TYPE ACTIVITIES
As of December 31, 2019, 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
12/31/19
G.O. Revenue Bonds:
Water Revenue Bonds, Series 2011A
10/6/2011
2/l/2022
0.30% - 2.15%
$5,920,000
$1,705,000
Water Revenue Bonds, Series 2011B
10/6/2011
2/l/2025
2.00%- 3.00%
3,720,000
3,160,000
Water and Sewer Revenue Bonds, Series 2012A
11/15/2012
2/l/2023
1.00% - 1.55%
1,245,000
520,000
Water Revenue Bonds, Series 2016A
3/3/2016
2/l/2026
2.00% - 3.00%
1,565,000
1,140,000
Water Revenue Bonds, Series 2016B
12/29/2016
2/l/2042
3.50%- 4.00%
3,630,000
3,630,000
Water Revenue Bonds, Series 2017A
2/1/2017
2/l/2038
2.00% - 4.00%
10,000,000
9,450,000
Water Revenue Bonds, Series 2018A
3/15/2018
2/l/2030
3.00% - 4.00%
3,595,000
3,330,000
Bond premium
1,078,498
820,499
Total G.O. revenue bonds
30,753,498
23,755,499
Compensated absences payable N/A 192,075
Total City indebtedness - business -type activities $30,753,498 $23,947,574
GOVERNMENTAL ACTIVITIES
Annual debt service requirements to maturity for the governmental activities long-term debt are as follows:
Year Ending
General Obligation Bonds
December 31,
Principal
Interest
2020
745,000
134,505
2021
770,000
111,780
2022
800,000
88,015
2023
385,000
70,025
2024
395,000
58,325
2025
410,000
48,300
2026
420,000
40,000
2027
430,000
31,500
2028
440,000
22,800
2029
455,000
13,850
2030
465,000
4,650
Total
$5,715,000
$623,750
It is not practicable to determine the specific year for payment of long-term accrued compensated absences.
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
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
2020
1,870,000
677,567
2021
1,930,000
632,209
2022
1,510,000
587,722
2023
1,280,000
547,659
2024
1,175,000
510,213
2025
1,210,000
473,663
2026
655,000
445,738
2027
915,000
422,213
2028
945,000
394,313
2029
975,000
365,513
2030
1,005,000
335,813
2031
670,000
310,688
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
$22,935,000
$7,542,258
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, 2019
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2019 was as follows:
Governmental activities:
General obligation bonds
Bond premium
Compensated absences
Total governmental activity
long-term liabilities
Business -type activities:
G.O. revenue bonds
Bond premium
Compensated absences
Total business -type activity
long-term liabilities
Beginning
Ending
Due Within
Balance
Additions
Deletions
Balance
One Year
$6,435,000
$ -
($720,000)
$5,715,000
$745,000
191,818
-
(15,985)
175,833
-
676,840
601,624
(595,512)
682,952
98,606
$7,303,658
$601,624
($1,331,497)
$6,573,785
$843,606
$24,785,000
$ -
($1,850,000)
$22,935,000
$1,870,000
886,988
-
(66,489)
820,499
-
203,890
157,687
(169,502)
192,075
27,732
$25,875,878
$157,687
($2,085,991)
$23,947,574
$1,897,732
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, 2019 is backed by the full faith and credit of the
City. General Obligation Revenue Bonds are serviced by the Sewer and Water Enterprise Funds and are carried as
debt of those funds. Other bonds are supported by various Debt Service Funds.
NONEXCHANGE FINANCIAL GUARANTEE OF DEBT
On August 1, 2014 the Carver County Community Development Agency, a legally separate entity from the City,
issued $2,110,000 of Housing Development Refunding Bonds, Series 2014 and $2,370,000 of Taxable Housing
Development and Refunding Bonds, Series 2014T. The proceeds were used to refund a portion of prior bonds and
to fund certain capital improvements of the Centennial Hill Apartments, which are located within the City.
In accordance with Minnesota Statutes, Section 469.034, Subd. 2, the City has pledged its full faith and credit and
taxing powers to the payment of debt service on the Series 2014 and Series 2014T bonds. In the event that the
Carver County Community Development Agency is unable to pay the debt service on the bonds due to insufficient
housing revenues and cash reserves, the City is obligated to pay the debt service. The City's guarantee extends until
the bonds have fully matured, which is scheduled to occur in 2034. The total amount of outstanding guaranteed
debt, including interest, at December 31, 2019 is $4,711,518.
The City's management does not expect the City will be required to make any debt service payments towards these
bonds. Accordingly, the bonds are not reflected in the financial statements of the City.
62
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
REVENUE PLEDGED
Future revenue pledged for the payment of long-term debt is as follows:
Bond Issue
Use of
Proceeds
Revenue Pledged
Current
Year
Type
Percent of
Total
Debt Service
Debt service
ass%of
net revenues
Term of
Pledge
Remaining
Principal
andhrterest
Principal
and Interest
Paid
Pledged
Revenue
Received
2016A Refunding bonds
Refunding of2008A bonds
Propertytaxes
100%
n/a
2019-2030
$5,040,975
$443,000
$475,800
2010A Library Refunding bonds
Library construction
- refunded the 2002A Library bonds
Propertyt—s
100%
n/a
2012-2021
$1,297,775
$433,480
$459,512
2011 A Water Revenue bonds
Water infrastructure improvements
- refunded the 2005B bonds
Water charges
100%
16.7%
2012-2021
$1,747,876
$733,663
$4,382,589
2011 B Water Revenue bonds
Water infrastructure improvements
- refunded the 2005B bonds
Water charges
100%
13.0%
2012-2024
$3,454,300
$569,500
$4,382,589
2012A Water&Sewer Revenue
bonds
Purchase ofineter reading equipment
Water and
sewer charges
100%
1.8%
2013-2022
$535,128
$132,665
$7,526,547
2016A Water Revenue bonds
Water infrastructure improvements
Water charges
100%
6.1%
2016-2025
$1,242,275
$177,925
$2,931,664
2016B Water Revenue bonds
West Water Treatment Plant
Water charges
100%
3.2%
2017-2041
$6,534,603
$138,238
$4,382,589
2017A Water Revenue bonds
West Water Treatment Plant
Water charges
100%
10.1%
2018-2038
$13,046,750
$444,400
$4,382,589
2018A Water Revenue bonds
West Water Treatment Plant
Water charges
100%
n/a
2019-2030
$3,916,325
$413,407
$4,382,589
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,
2019.
Future scheduled tax levies for all bonds outstanding at December 31, 2019 totaled $5,796,957.
63
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
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.
2. Public Employees Police and Fire Fund (PEPFF)
The PEPFF, originally established for police officers and firefighters not covered by a local relief
association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the
PEPFF also covers police officers and firefighters belonging to a local relief association that elected to
merge with and transfer assets and administration to PERA.
B. BENEFITS PROVIDED
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and
can only be modified by the state legislature. Vested terminated employees who are entitled to benefits, but are
not receiving them yet, are bound by the provisions in effect at the time they last terminated their public
service.
1. GERF Benefits
Benefits are based on a member's highest average salary for any five successive years of allowable service,
age, and years of credit at termination of service. Two methods are used to compute benefits for PERA's
Coordinated and Basic Plan 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 a Coordinated Plan member is 1.2% of average salary for each of the first ten years and
1.7% for each additional year. Under Method 2, the accrual rate 1.7% for Coordinated Plan members for
all years of service. The accrual for Minneapolis Employees Retirement Fund (MERF) is 2% for each of
the first 10 years of service and 2.5% for each additional year. 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.
Annuities, disability benefits, and survivor benefits are increased effective every January 1. Beginning
January 1, 2019, the postretirement increase will be equal to 50 percent of the cost -of -living adjustment
(COLA) announced by the SSA, with a minimum increase of at least 1 percent and a maximum of 1.5
percent. 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. For 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
64
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
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 the PEPFF members first hired after June 30, 2010, but before July 1, 2014, vest on a prorated
basis from 50% after five years up to 100% after ten years of credited service. Benefits for PEPFF
members first hired after June 30, 2014, vest on a prorated basis from 50% after ten years up to 100% after
twenty years of credited service. The annuity accrual rate is 3% of average salary for each year of service.
For PEPFF members who were first hired prior to July 1, 1989, a full annuity is available when age plus
years of service equal at least 90.
Annuities, disability benefits, and survivor benefits are increased effective every January 1. Beginning
January 1, 2019, the postretirement increase will be fixed at 1 percent. 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. For 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.
C. CONTRIBUTIONS
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can
only be modified by the state legislature.
1. GERF Contributions
Coordinated Plan members were required to contribute 6.50%, of their annual covered salary in fiscal year
2019. The City was required to contribute 7.50% for Coordinated Plan members. The City's contributions
to the GERF for the year ended December 31, 2019, were $390,082. The City's contributions were equal
to the required contributions as set by state statute.
2. PEPFF Contributions
Police and Fire members contribution rates increased from 10.80 percent of pay to 11.30 percent and
employer rates increase from 16.20 percent to 16.95 percent on January 1, 2019. The City's contributions
to the PEPFF for the year ended December 31, 2019 were $37,761. The City's contributions were equal to
the required contributions as set by state statute.
65
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
D. PENSION COSTS
1. GERF Pension Costs
At December 31, 2019, the City reported a liability of $4,019,420 for its proportionate share of the GERF's
net pension liability. The City's net pension liability reflected a reduction due to the State of Minnesota's
contribution of $16 million to the fund in 2019. 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
$124,828. The net pension liability was measured as of June 30, 2019, and the total pension liability used
to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's
proportion of the net pension liability was based on the City's contributions received by PERA during the
measurement period for employer payroll paid dates from July 1, 2018, through June 30, 2019, relative to
the total employer contributions received from all of PERA's participating employers. At June 30, 2019
the City's proportion was .0727% which was an increase of .0033% from its proportion measured as of
June 30, 2018.
City's proportionate share of the net pension liability $4,019,420
State of Minnesota's proportionate share of the net pension
liability associated with the City 124,828
Total $4,144,248
For the year ended December 31, 2019, the City recognized pension expense of $410,235 for its
proportionate share of the GERF's pension expense. In addition, the City recognized an additional $9,348
as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's contribution
of $16 million to the General Employees Fund.
At December 31, 2019, the City reported its proportionate share of the GERF's deferred outflows of
resources and deferred inflows of resources related to pensions from the following sources:
Differences between expected and
actual economic experience
Changes in actuarial assumptions
Difference between projected and
actual investment earnings
Changes in proportion
Contributions paid to PERA
subsequent to the measurement date
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
$113,851 $3,616
- 312,409
- 410,252
73,119 205,284
193,927 -
$380,897 $931,561
$193,927 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
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
year ended December 31, 2020. Other amounts reported as deferred outflows and inflows of resources
related to pensions will be recognized in pension expense as follows:
Year Ended Pension
December 31, Expense
2020
(248,853)
2021
(370,544)
2022
(131,622)
2023
6,478
2024
-
Thereafter
-
2. PEPFF Pension Costs
At December 31, 2019, the City reported a liability of $218,243 for its proportionate share of the PEPFF's
net pension liability. The net pension liability was measured as of June 30, 2019, and the total pension
liability used to calculate the net pension liability was determined by an actuarial valuation as of that date.
The City's proportion of the net pension liability was based on the City's contributions received by PERA
during the measurement period for employer payroll paid dates from July 1, 2018, through June 30, 2019,
relative to the total employer contributions received from all of PERA's participating employers. At June
30, 2019, the City's proportion was .0205% which was an increase of .0012% from its proportion
measured as of June 30, 2018. The City also recognized $2,767 for the year ended December 31, 2019, as
revenue and an offsetting reduction of net pension liability for its proportionate share of the State of
Minnesota's on -behalf contributions to the PEPFF. Legislation passed in 2013 required the State of
Minnesota to begin contributing $9 million to the PEPFF each year, until the plan is 90 percent funded or
until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90 percent funded,
whichever occurs later. In addition, the state will pay $4.5 million on October 1, 2018 and October 1, 2019
in direct state aid. Thereafter, by October 1 of each year, the state will pay $9 million until full funding is
reached or July 1, 2048, whichever is earlier.
For the year ended December 31, 2019, the City recognized pension expense of $47,604 for its
proportionate share of the PEPFF's pension expense.
67
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
At December 31, 2019, the City reported its proportionate share of the PEPFF's deferred outflows of
resources and deferred inflows of resources related to pensions from the following sources:
Differences between expected and
actual economic experience
Changes in actuarial assumptions
Difference between projected and
actual investment earnings
Changes in proportion
Contributions paid to PERA
subsequent to the measurement date
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
$9,322
$35,055
188,836
248,469
-
44,802
54,357
28,878
18,946
-
$271,461
$357,204
$18,946 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, 2020. Other amounts reported as deferred outflows and inflows of resources
related to pensions will be recognized in pension expense as follows:
Year Ended Pension
December 31, Expense
2020
(1,425)
2021
(30,894)
2022
(75,169)
2023
2,982
2024
(183)
Thereafter
-
The net pension liability is liquidated by the General Fund and enterprise funds.
E. ACTUARIAL ASSUMPTIONS
The total pension liability in the June 30, 2019, actuarial valuation was determined using the following
actuarial assumptions:
Inflation 2.50% per year
Salary Growth 3.25% per year
Investment Rate of Return 7.50%
Salary increases were based on a service -related table. Mortality rates for active members, retirees,
survivors, and disabilitants for all plans were based on RP 2014 tables for males or females, as appropriate,
with slight adjustments to fit PERA's experience. Cost of living benefit increases after retirement for
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
retirees are assumed to be 1.25 percent per year for the General Employees Plan, 1.0 percent per year for
the Police and Fire Plan.
Actuarial assumptions used in the June 30, 2019 valuation were based on the results of actuarial experience
studies. The most recent four-year experience study in the General Employees Plan was completed in
2019. The most recent four-year experience study for Police and Fire Plan was completed in 2016.
The following changes in actuarial assumptions and plan provisions occurred in 2019:
General Employees Fund
Changes in Actuarial Assumptions:
• The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in 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.
Police and Fire Fund
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.
The long-term expected rate of return on pension plan investments is 7.5%. The State Board of
Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a
regular basis of the long-term expected rate of return using a building-block method in which best -estimate
ranges of expected future rates of return are developed for each major asset class. These ranges are
combined to produce an expected long-term rate of return by weighting the expected future rates of return
by the target asset allocation percentages. The target allocation and best estimates of geometric real rates
of return for each major asset class are summarized in the following table:
Target Long -Term Expected
Asset Class Allocation Real Rate of Return
Domestic Equity
International Equity
Fixed Income
Private Markets
Cash Equivalents
Total
F. DISCOUNT RATE
35.5%
5.10%
17.5%
5.90%
20%
0.75%
25%
5.90%
2%
0.00%
100%
The discount rate used to measure the total pension liability in 2019 was 7.50%. 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 General Employees Fund and the Police and Fire Fund was projected to be available to make all
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
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 for all plans it participates
in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City's
proportionate share of the net pension liability would be if it were calculated using a discount rate 1
percentage point lower or 1 percentage point higher than the current discount rate:
1 % Decrease in 1 % Increase in
Discount Rate (6.5%) Discount Rate (7.5%) Discount Rate (8.5%)
City's proportionate share of the
GERF net pension liability $6,607,710 $4,019,420 $1,882,272
City's proportionate share of the
PEPFF net pension liability $477,039 $218,243 $4
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 on the Internet at www.nmpera.org.
I. PENSION EXPENSE
Pension expense recognized by the City for the fiscal year ended December 31, 2019 is as follows:
GERF $410,235
PEPFF 47,064
Fire Relief (note 9) 230,457
Total $687,756
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.
70
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
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. The maximum service pension shall not exceed the maximum service pension amount
permitted under the flexible service pension maximums pursuant to Minnesota Section 424A.02,
Subdivision 3. Members who choose the lump sum receive no additional interest accrual.
Ten Year Service But Less Than Twenty Year Service
Each member who is at least 50 years of age; who has retired from the Fire Department; who has served at
least five years of active service with such department before retirement but has not served at least 20 years
of active service; and, who has been a member of the Relief Association in good standing at least ten years
prior to such retirement, shall be entitled to either a pro -rated monthly service pension or a pro -rated lump
sum service pension based on the percentages in the following table:
For Duty of -
more than but less than
5 years
6 years
40%
6
7
44
7
8
48
8
9
52
9
10
56
10
11
60
11
12
64
12
13
68
13
14
72
14
15
76
15
16
80
16
17
84
17
18
88
18
19
92
19
20
96
20
100
71
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
The payment amount will be calculated by using the amount payable per year of service in effect at the
time of such early retirement, multiplied by the number of accumulated years of service, multiplied by the
appropriate percentage as defined above.
During the time a member is on early -vested pension, he or she will not be eligible for disability benefits.
Survivors Benefit
Prior to April 1997, if any active vested or deferred member dies leaving an eligible surviving spouse, they
shall receive a monthly pension for a guaranteed fifteen year period. After April 1997, an eligible surviving
spouse shall receive a lump sum payment calculated in accordance with the by-laws. If there is no
surviving spouse, then the deceased member's designated beneficiary or their estate would receive the
payment.
A surviving spouse of a member receiving a monthly pension shall receive 50% of the member's monthly
benefit, based on the date of death.
Permanent Disability
Any member of the Relief Association contracting sickness or injury, incapacitating the member from
attending to their business, from causes outside or within their line of duty, and a physician's report shows
that that member is unable to perform their duties, they are entitled to their full accrued lump sum benefit,
payable immediately.
Temporary Disability
Any member of the Relief Association who becomes temporarily incapacitated from attending to their
business due to illness of injury, sustained in the performance of such business, and is unable to work for a
period of one week or longer, shall be paid a benefit of $5 per day for a period of no longer than 120 days
in any one fiscal year, providing the member is under the care of a physician or doctor during this period.
Death Benefit
Upon the death of any active or deferred member, the beneficiaries of the deceased member shall be paid a
death benefit in an amount equivalent to the accrued service pension.
72
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
D. EMPLOYEES COVERED BY BENEFIT TERMS
At December 31, 2019, the following employees were covered by the benefit terms:
Retirees and beneficiaries
currently receiving benefits 5
Retired members entitled to
benefits but have not received them 27
Active members:
Fully vested (20 years or more) 3
Partially vested (5 years to 19 years) 19
Non -vested (less than 5 years) 18
Total
E. CONTRIBUTIONS
72
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 $237,444 ($190,045 from the State of Minnesota and $47,399 from the City) were
made to the Relief Association in accordance with state statute requirements for the year ended December
31, 2019.
73
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
F. ACTUARIAL METHOD AND SIGNIFICANT ASSUMPTIONS
The total pension liability was determined by an actuarial valuation as of December 31, 2019 using the
following actuarial assumptions, applied to all periods in the measurement:
Valuation date
Measurement date (assets and funded status)
Actuarial cost method
Amortization method
Asset valuation method
Actuarial assumptions:
Investment rate of return
Projected salary increases
Includes inflation at
Cost -of -living adjustments
Age of service retirement
Post -retirement benefit increases
12/31/2019
12/31/2019
Entry Age Normal
Level dollar
Closed 20-year period
Market Value
5%
N/A
3%
3%
The later of the age 50 and 20
years of service
None
Mortality assumptions were determined using the Pub5-2010 Mortality with Generational improvemnets
proected beginging in 2010 based on SOA scale MP-2019.
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, 2019, 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
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.
74
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
H. CHANGES IN THE NET PENSION LIABILITY
Balance at December 31, 2018
Changes for the year:
Service cost
Interest
Changes in benefit terms
Differences between expected
and actual experience
Changes of assumptions
Contributions - employer
On behalf contributions - State of MN
Contributions - employee
Net investment income
Benefit payments, including refunds of employee
contributions
Administrative expense
Other changes
Net changes
Balance at December 31, 2019
I. PENSION LIABILITY SENSITIVITY
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
$3,007,285 $2,121,170 $886,115
143,922 - 143,922
154,784 - 154,784
(79,049) - (79,049)
(902) - (902)
- 47,399 (47,399)
190,045 (190,045)
328,474 (328,474)
(170,835) (170,835) -
- (16,386) 16,386
47,920 378,697 (330,777)
$3,055,205 $2,499,867 $555,338
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 $726,494 $555,338 $398,856
75
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
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, 2019, the City recognized pension expense of $230,457, including
$190,045 and $47,399 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,
2019, 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
$2,058 $63,240
Changes in actuarial assumptions
92,655 1,404
Difference between projected and
actual investment earnings
- 123,405
Total
$94,713 $188,049
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized as pension expense as follows:
Year Ended Pension
December 31, Expense
2020
($17,401)
2021
(4,853)
2022
(11,159)
2023
(59,923)
2024
-
Thereafter
-
Note 10 DEFINED CONTRIBUTION PLAN
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.
76
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
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 2019 were:
Contribution Amount Percentage of Covered Payroll Required
Employer
Employee (Pension Expense) Employee Employer Rate
$1,748 $1,748 5% 5% 5%
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.
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
77
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
receiving an implicit rate subsidy (benefit). The coverage levels are the same as those afforded to active
employees. Upon a retiree reaching age 65, Medicare becomes the primary insurer and the City's plan
becomes secondary.
C. PARTICIPANTS
As of the January 1, 2019 actuarial valuation, participants consisted of:
Active employees receiving benefits 70
Inactive employees currently receiving
or entitled to receive benefits -
Total 70
D. TOTAL OPEB LIABILITY AND CHANGES IN TOTAL OPEB LIABILITY
The City's total OPEB liability of $155,719 was measured as of December 31, 2019, and was determined
by an actuarial valuation as of December 31, 2019. Changes in the total OPEB liability during 2019 were:
Balance - beginning of year
$199,068
Changes for the year:
Service cost
13,547
Interest
8,738
Changes of benefit terms
-
Differences between expected and actual experience
(82,370)
Changes in assumptions
16,736
Benefit payments
-
Net changes
(43,349)
Balance - end of year
$155,719
The OPEB liability is liquidated by the General fund.
E. ACTUARIAL ASSUMPTIONS AND OTHER INPUTS
The total OPEB liability in the December 31, 2019 actuarial valuation was determined using the following
actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise
specified:
78
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
Inflation 2.50%
Salary increases Based on the most recent disclosed assumptions for the pension plan in
which the employee participates.
Discount rate 3.26%
Investment rate of return 3.26%
Healthcare cost trend rates 8.0% for 2019 gradually decreasing to an ultimate rate of 4.5% in 2026
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, 2019, 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-2019 for active and retirees and SOA Pub-2010 Continuing Survivor
Headcount Weighted Mortality Table fully generational using Scale MP-2019 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 (2.26%) or 1% higher (4.26%) than the
current discount rate:
1 % Decrease Discount Rate 1 % Increase
(2.26%) (3.26%) (4.26%)
Total OPEB liability $163,831 $155,719 $147,817
79
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
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 $143,674 $155,719 $169,299
H. OPEB EXPENSE AND DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED
TO OPEB
For the year ended December 31, 2019, the City recognized $14,171 of OPEB expense. At December 31,
2019, the City reported deferred outflows and inflows of resources related to OPEB from the following
sources:
Differences between expected and actual experience
Changes in actuarial assumptions
Total
Deferred Outflows
of Resources
Deferred Inflows
of Resources
$73,218
9,118 -
$9,118 $73,218
Amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in
OPEB expense as follows:
Year Ended OPEB
December 31, Expense
2020
(8,114)
2021
(8,114)
2022
(8,114)
2023
(8,114)
2024
(8,114)
Thereafater
(23,530)
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
99
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
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, 2019 actuarial valuation, the projected unit credit actuarial pay cost method was used.
The actuarial assumptions included a 3.26% investment rate of return (net of administrative expenses) and
an annual health care cost trend rate of 8.0% for 2019, decreasing by 0.5% annually to an ultimate rate of
4.5%. These rates include a 2.5% 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, 2019 was 30
years.
Note 12 INTERFUND LOANS AND TRANSFERS
Amounts reported as interfund loan receivable/payable at December 31, 2019 are as follows:
Interfund
Loan Receivable
Major Funds:
Revolving Assessment Fund
$35,840
Water Fund
-
Nonmajor Funds
713,600
Total
$749,440
Interfund
Loan Payable
749,440
$749,440
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 $192,867 of repayments in 2019 and $193,225 is expected to
be repaid in 2020.
81
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
Interf ind transfers made during 2019 are summarized as follows:
Major Funds:
General Fund
Revolving Assessment Fund
Water Fund
Sewer Fund
Surface Water Management Fund
Nonmajor Funds
Total
Transfers In Transfers Out
$846,459
1,803,197 -
9,453 578,477
- 258,810
469,451
350,000 9,453
$2,162,650 $2,162,650
$2,153,197 of interf nid transfers were made to finance capital expenditures, primarily in the Revolving Assessment
Fund. These transfers are considered routine and consistent with previous practices.
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, 2019, the outstanding conduit debt is as follows:
Bonds
Project Name
Issued
St. Hubert Catholic Community, Series 2007
10/07
Presbyterian Homes, Series 2014B
06/14
Note 14 DEFICIT FUND BALANCES
Original
12/31/19
Maturity
Principal
Principal
Date
$5,942,140
$2,165,162
2027
9,300,000
7,255,512
2034
The City has a deficit fund balance of $570 in the Frontier Development #2 TIF #11 Fund at December 31, 2019.
The deficit will be eliminated through tax increment financing collections.
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
82
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
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 2018, 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 2020. 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.
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, 2019.
E. TAX ABATEMENTS — PAY-AS-YOU-GO TAX INCREMENT
The City occasionally provides tax abatements pursuant to Minnesota Statutes 469.174 to 469.1794 (Tax
Increment Financing) through a pay-as-you-go note program. Tax increment financing (TIF) can be used
to encourage private development, redevelopment, renovation and renewal, growth in low -to -moderate -
income housing, and economic development within the City. TIF captures the increase in tax capacity and
property taxes from development or redevelopment to provide funding for the related project.
As of December 31, 2019, there were no outstanding pay-as-you-go notes.
83
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
F. COMMITTED CONTRACTS
At December 31, 2019, the City had commitments of $932,674 for uncompleted construction contracts. In
addition, the City entered into construction contracts during 2020 totaling $23,717,866.
Note 16 FUND BALANCE
A. CLASSIFICATIONS
Definitions of fund balance classifications are included in Note 1P. At December 31, 2019, 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 $82,265 $ - $
$8,781
$91,046
Restricted for:
Debt service - -
1,344,306
1,344,306
Park improvements -
1,537,790
1,537,790
CATV - public education -
43,837
43,837
Public safety- fire -
18,158
18,158
Total restricted 0 0 0
2,944,091
2,944,091
Assigned for
Capital improvements
2,198,159 75,666 2,607,578
4,881,403
Cable communications
- - 497,207
497,207
Cemetery operations
- 58,708
58,708
Debt service reserve
- - - 1,219,807
1,219,807
Total assigned
0 2,198,159 75,666 4,383,300
6,657,125
Unassigned
5,255,804 - - (570)
5,255,234
Total
$5,338,069 $2,198,159 $75,666 $7,335,602
$14,947,496
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, 2019, the fund
balance of the General Fund exceeded this level.
84
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
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, 2019 totaled $196,019. Terms of each lease outstanding at year-end areas follows:
Lessee
Sprint
Sprint
Verizon
Nextel West Corp.
T-Mobile
T-Mobile
StoneBridge/Nextera
Cingular/AT&T
Veriwn-Arboretum
Veriwn-Minnetonka Middle School
Terms
$25,082 per year with 3% annual increases
$23,486 per year with 3% annual increases
$2,342 per month
$22,926 per year with 3% annual increases
$2,153 per month with 3% annual increases
$22,258 per year with 3% annual increases
5% of gross revenues associated with equipment used on property
$2,029 per month with 3% annual increases
$2,300 per month, with 2% annual increases
$2,300 per month, with 2% annual increases
Current Term
8/l/06 - 7/31/21
12/1/05 - 11/30/20
5/1/17 - 4/30/22
12/1/14 - 11/30/24
1111105 - 10/31/20
1/1/14 - 12/31/19
4/1/06 - 12/31/19
8/1/12 - 7/31/22
l/1/20 - 12/31/24
l/1/20 - 12/31/24
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. 83 Certain Asset Retirement Obligations. The provisions of this Statement are effective for reporting
periods beginning after June 15, 2019.
Statement No. 84 Fiduciary Activities. The provisions of this Statement are effective for reporting periods
beginning after December 15, 2019.
Statement No. 87 Leases. The provisions of this Statement are effective for reporting periods beginning after June
15, 2021.
Statement No. 88 Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements. The
provisions of this Statement are effective for reporting periods beginning after June 15, 2019.
Statement No. 90 Majority Equity Interests — an amendment of GASB Statements No. 14 and No. 61. The
provisions of this Statement are effective for reporting periods beginning after December 15, 2019.
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.
85
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2019
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
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.
Note 19 SUBSEOUENT EVENTS AND UNCERTAINTIES
The COVID-19 pandemic continues to cause rapidly changing disruptions world-wide. Management has evaluated
these conditions and believes that it is not possible to reasonably estimate the financial impact, if any, of COVID-19
on the City's financial statements at December 31, 2019.
0
REQUIRED SUPPLEMENTARY INFORMATION
87
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2019
With Comparative Actual Amounts For The Year Ended December 31, 2018
Revenues:
General property taxes
Licenses and permits:
Licenses - general government
Licenses - public safety
Permits - public safety
Permits - public works
Permits - community development
Total licenses and permits
Intergovernmental:
State aid - police - public safety
State aid - fire - public safety
PERA - public safety
Other
Total intergovernmental
Charges for services:
General government
Public safety
Public works
Parks and recreation
Community development
Total charges for services
Fines and forfeits:
Public safety
Investment earnings
Contributions and donations:
Parks and recreation
Total contributions and donations
Refunds and reimbursements:
General government
Public safety
Public works
Parks and recreation
Community development
Total refunds and reimbursements
Other:
General government
Public safety
Total other
Total revenues
2019
Budgeted Amounts
Original Final
Actual Variance with
Amounts Final Budget
Statement 10
Page 1 of 6
2018
Actual
Amounts
$8,755,333
$8,755,333
$8,751,341
($3,992)
$8,647,307
4,000
4,000
3,000
(1,000)
1,250
93,500
93,500
94,481
981
77,229
997,000
997,000
1,275,996
278,996
1,559,119
32,500
32,500
49,102
16,602
56,869
5,500
5,500
10,025
4,525
10,030
1,132,500
1,132,500
1,432,604
300,104
1,704,497
160,000
160,000
161,678
1,678
163,282
175,000
175,000
206,677
31,677
195,261
20,000
20,000
19,467
(533)
19,467
45,000
45,000
56,088
11,088
58,537
400,000
400,000
443,910
43,910
436,547
76,700
76,700
77,005
305
76,481
4,000
4,000
2,903
(1,097)
3,334
59,300
59,300
53,122
(6,178)
18,278
452,400
452,400
462,032
9,632
456,924
28,500
28,500
18,817
(9,683)
22,198
620,900
620,900
613,879
(7,021)
577,215
116,500
116,500
89,989
(26,511)
95,351
30,000
30,000
162,553
132,553
73,165
24,127
24,127
25,437
1,310
25,387
24,127
24,127
25,437
1,310
25,387
5,000
5,000
5,087
87
5,749
12,500
12,500
5,740
(6,760)
8,257
37,500
37,500
36,088
(1,412)
44,221
-
-
510
510
2,200
24
24
-
55,000
55,000
47,449
(7,551)
60,427
256,300
256,300
198,861
(57,439)
199,569
4,700
4,700
5,446
746
9,353
261,000
261,000
204,307
(56,693)
208,922
11,395,360
11,395,360
11,771,469
376,109
11,828,818
See accompanying notes to the required supplementary information.
::
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 6
For The Year Ended December 31, 2019
With Comparative Actual Amounts For The Year Ended December 31, 2018
2019
2018
Budgeted Amounts
Actual
Variance with
Actual
Original
Final
Amounts
Final Budget
Amounts
Expenditures:
General government:
Legislative:
Current:
Personal services
$46,700
$46,700
$45,800
$900
$44,404
Contractual services
81,600
81,600
84,572
(2,972)
83,282
Total legislative
128,300
128,300
130,372
(2,072)
127,686
Administrative office:
Current:
Personal services
504,800
504,800
488,078
16,722
478,591
Contractual services
59,500
59,500
47,471
12,029
48,743
Total administrative office
564,300
564,300
535,549
28,751
527,334
Finance:
Current:
Personal services
329,000
329,000
319,457
9,543
305,800
Materials and supplies
200
200
-
200
64
Contractual services
42,300
42,300
36,352
5,948
42,971
Total finance
371,500
371,500
355,809
15,691
348,835
Election:
Current:
Personal services
26,000
26,000
-
26,000
27,088
Materials and supplies
4,000
4,000
-
4,000
1,353
Contractual services
18,000
18,000
14,189
3,811
10,388
Total election
48,000
48,000
14,189
33,811
38,829
Legal:
Current:
Contractual services
200,000
200,000
201,661
(1,661)
191,253
Property assessment:
Current:
Contractual services
156,000
156,000
158,707
(2,707)
152,430
M.I.S.:
Current:
Personal services
167,100
167,100
168,999
(1,899)
158,880
Materials and supplies
44,700
44,700
50,330
(5,630)
25,093
Contractual services
46,000
46,000
45,342
658
45,837
Total M.I.S.
257,800
257,800
264,671
(6,871)
229,810
See accompanying notes to the required supplementary information.
:•
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 3 of 6
For The Year Ended December 31, 2019
With Comparative Actual Amounts For The Year Ended December 31, 2018
2019
2018
Budgeted Amounts
Actual
Variance with
Actual
Original
Final
Amounts
Final Budget
Amounts
Expenditures: (continued)
General government: (continued)
City hall:
Current:
Personal services
$93,500
$93,500
$91,734
$1,766
$91,086
Materials and supplies
40,300
40,300
38,997
1,303
41,646
Contractual services
262,000
262,000
276,542
(14,542)
272,972
Total City hall
395,800
395,800
407,273
(11,473)
405,704
Library:
Current:
Materials and supplies
2,500
2,500
1,645
855
50
Contractual services
109,100
109,100
121,106
(12,006)
105,454
Total library
111,600
111,600
122,751
(11,151)
105,504
Total general government
2,233,300
2,233,300
2,190,982
42,318
2,127,385
Public safety:
Police:
Current:
Materials and supplies
1,000
1,000
-
11000
342
Contractual services
1,884,800
1,884,800
1,872,646
12,154
1,780,304
Total police
1,885,800
1,885,800
1,872,646
13,154
1,780,646
Fire department:
Current:
Personal services
824,500
824,500
865,124
(40,624)
829,461
Materials and supplies
45,100
45,100
39,469
5,631
39,197
Contractual services
150,400
150,400
160,661
(10,261)
140,122
Total fire department
1,020,000
1,020,000
1,065,254
(45,254)
1,008,780
Code enforcement:
Current:
Personal services
722,900
722,900
684,513
38,387
638,261
Materials and supplies
6,400
6,400
5,959
441
3,227
Contractual services
13,200
13,200
10,393
2,807
9,519
Total code enforcement
742,500
742,500
700,865
41,635
651,007
Community Service:
Current:
Personal services
53,700
53,700
48,070
5,630
51,401
Materials and supplies
1,700
1,700
917
783
471
Contractual services
5,800
5,800
4,466
1,334
4,002
Total animal control
61,200
61,200
53,453
7,747
55,874
Total public safety
3,709,500
3,709,500
3,692,218
17,282
3,496,307
See accompanying notes to the required supplementary information.
all
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2019
With Comparative Actual Amounts For The Year Ended December 31, 2018
Expenditures: (continued)
Public works:
Engineering:
Current:
Personal services
Materials and supplies
Contractual services
Total engineering
Street maintenance:
Current:
Personal services
Materials and supplies
Contractual services
Total street maintenance
Street lighting:
Current:
Materials and supplies
Contractual services
Total street lighting
Fleet department:
Current:
Personal services
Materials and supplies
Contractual services
Total fleet department
Total public works
Parks and recreation:
Parks and recreation commission:
Current:
Materials and supplies
Contractual services
Total parks and recreation commission
Parks and recreation administration:
Current:
Personal services
Materials and supplies
Contractual services
Total parks and recreation
administration
Recreation center:
Current:
Personal services
Materials and supplies
Contractual services
Total recreation center
Statement 10
Page 4 of 6
2019 2018
Budgeted Amounts Actual Variance with Actual
Original Final Amounts Final Budget Amounts
$642,200
$642,200
$612,469
$29,731
$577,406
800
800
2,329
(1,529)
815
26,900
26,900
68,097
(41,197)
31,573
669,900
669,900
682,895
(12,995)
609,794
866,400
866,400
864,237
2,163
853,116
113,300
113,300
126,915
(13,615)
104,544
35,400
35,400
36,287
(887)
46,316
1,015,100
1,015,100
1,027,439
(12,339)
1,003,976
3,000
3,000
5,838
(2,838)
5,233
354,500
354,500
357,465
(2,965)
370,086
357,500
357,500
363,303
(5,803)
375,319
319,400
319,400
334,146
(14,746)
318,572
172,000
172,000
164,243
7,757
148,553
67,300
67,300
66,630
670
83,462
558,700
558,700
565,019
(6,319)
550,587
2,601,200
2,601,200
2,638,656
(37,456)
2,539,676
100
100
-
100
25
1,100
1,100
185
915
-
1,200
1,200
185
1,015
25
250,600
250,600
249,602
998
229,809
200
200
510
(310)
324
6,000
6,000
4,107
1,893
5,743
256,800
256,800
254,219
2,581
235,876
233,200
233,200
222,938
10,262
216,320
17,700
17,700
12,896
4,804
17,128
95,900
95,900
79,336
16,564
93,678
346,800
346,800
315,170
31,630
327,126
See accompanying notes to the required supplementary information.
91
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2019
With Comparative Actual Amounts For The Year Ended December 31, 2018
Expenditures: (continued)
Parks and recreation: (continued)
Senior citizen center:
Current:
Personal services
Materials and supplies
Contractual services
Total senior citizen center
Recreation programs:
Current:
Personal services
Materials and supplies
Contractual services
Total recreation programs
Self-supporting programs:
Current:
Personal services
Materials and supplies
Contractual services
Total self-supporting programs
Lake Ann Park operations:
Current:
Personal services
Materials and supplies
Contractual services
Total Lake Ann Park operations
Park maintenance:
Current:
Personal services
Materials and supplies
Contractual services
Total park maintenance
Recreation sports:
Current:
Personal services
Materials and supplies
Contractual services
Total recreation sports
Total parks and recreation
2019
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Statement 10
Page 5 of 6
2018
Actual
Amounts
$84,700
$84,700
$84,106
$594
$98,133
4,300
4,300
2,228
2,072
3,804
32,700
32,700
45,991
(13,291)
28,275
121,700
121,700
132,325
(10,625)
130,212
250,860
250,860
239,030
11,830
218,115
22,200
22,200
23,954
(1,754)
23,610
120,500
120,500
126,724
(6,224)
120,673
393,560
393,560
389,708
3,852
362,398
21,400
21,400
17,274
4,126
34,647
4,500
4,500
4,564
(64)
4,422
12,500
12,500
11,127
1,373
11,927
38,400
38,400
32,965
5,435
50,996
12,000
12,000
10,934
1,066
10,350
9,200
9,200
7,857
1,343
8,343
47,600
47,600
45,126
2,474
45,413
68,800
68,800
63,917
4,883
64,106
821,100
821,100
830,324
(9,224)
875,603
80,800
80,800
93,032
(12,232)
85,684
100,800
100,800
114,953
(14,153)
107,607
1,002,700
1,002,700
1,038,309
(35,609)
1,068,894
30,400
30,400
20,064
10,336
25,164
7,900
7,900
5,876
2,024
6,487
300
300
149
151
-
38,600
38,600
26,089
12,511
31,651
2,268,560
2,268,560
2,252,887
15,673
2,271,284
See accompanying notes to the required supplementary information.
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2019
With Comparative Actual Amounts For The Year Ended December 31, 2018
Expenditures: (continued)
Community development:
Planning commission:
Current:
Materials and supplies
Contractual services
Total planning commission
Planning administration:
Current:
Personal services
Materials and supplies
Contractual services
Total planning administration
Senior facility commission:
Current:
Personal services
Contractual services
Total senior facility commission
Total community development
Total expenditures
Revenues over expenditures
Other financing sources (uses):
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance - January 1
Fund balance - December 31
Statement 10
Page 6 of 6
2019 2018
Budgeted Amounts Actual Variance with Actual
Original Final Amounts Final Budget Amounts
$200
$200
$ -
$200
$ -
1,500
1,500
1,090
410
828
1,700
1,700
1,090
610
828
529,200
529,200
520,708
8,492
489,020
400
400
179
221
350
11,300
11,300
6,270
5,030
12,633
540,900
540,900
527,157
13,743
502,003
29,200
29,200
29,810
(610)
28,824
11,000
11,000
8,834
2,166
16,052
40,200
40,200
38,644
1,556
44,876
582,800
582,800
566,891
15,909
547,707
11,395,360
11,395,360
11,341,634
53,726
10,982,359
0
0
429,835
429,835
846,459
-
-
(846,459)
(846,459)
(479,886)
0
0
(846,459)
(846,459)
(479,886)
$0
$0
(416,624)
($416,624)
366,573
5,754,693
$5,338,069
5,388,120
$5,754,693
See accompanying notes to the required supplementary information.
93
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE CITY'S TOTAL OPEB LIABILITY AND RELATED RATIOS
Last Ten Fiscal Years
Total OPEB liability:
Service cost
Interest
Changes of benefit terms
Differences between expected and actual experience
Changes in assumptions
Benefit payments
Net change in total OPEB liability
Total OPEB liability - beginning
Total OPEB liability - ending
Covered -employee payroll
Statement 11
2019 2018
$13,547 $14,388
8,738 7,032
(82,370)
-
16,736
(7,402)
-
(9,869)
(43,349)
4,149
199,068
194,919
$155,719
$199,068
$5,270,695 $5,151,178
Total OPEB liability as a percentage of covered -employee payroll 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.
94
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY -
GENERAL EMPLOYEES RETIREMENT FUND
Last Ten Fiscal Years
Measurement Fiscal Year
Date Ending
June 30 December 31
State's
Proportionate
City's
City's
Share
Proportionate
Proportionate
(Amount)
Share
Share
of the Net
(Percentage)
(Amount)
Pension
of the
of the Net
Liability
Net Pension
Pension
Associated
Liability
Liability (a)
with City (b)
Statement 12
City's
Plan
Proportionate
Fiduciary
Share of the Net
Net
Pension Liability
City's
Position
and the State's
Proportionate
as a
Proportionate
Share of the Net
Percentage
Share of the Net
Pension Liability
of the
Pension Liability
as a Percentage
Total
Associated with Covered
of its Covered
Pension
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%
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.
95
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 13
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%
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.
0.
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY -
PUBLIC EMPLOYEES POLICE AND FIRE FUND
Last Ten Fiscal Years
Measurement
Date
June 30, 2015
June 30, 2016
June 30, 2017
June 30, 2018
June 30, 2019
Fiscal Year
Ending
December 31, 2015
December 31, 2016
December 31, 2017
December 31, 2018
December 31, 2019
Proportionate Proportionate
Share
Share (Amount)
(Percentage) of
of the Net
the Net Pension
Pension
Liability
Liability (a)
Proportionate Share
of the Net Pension
Liability as a
Percentage of its
Covered Covered
Payroll (b) Payroll (a/b)
Statement 14
Plan Fiduciary
Net Position as
a Percentage
of the Total
Pension Liability
0.0200%
$227,247
$180,370
126.0%
86.6%
0.0190%
762,503
186,408
409.1%
63.9%
0.0190%
256,523
194,526
131.9%
85.4%
0.0193%
205,718
203,653
101.0%
88.8%
0.0205%
218,243
216,056
101.0%
89.3%
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 15
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%
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.
.;
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS -
CHANHASSEN FIRE DEPARTMENT RELIEF ASSOCIATION
LAST TEN FISCAL YEARS
Fiscal year ending and measurement date
Total pension liability:
Service cost
Interest
Changes of benefit terms
Differences between expected and actual experience
Changes of assumptions
Benefit payments, including refunds of employee contributions
Net change in total pension liability
Total pension liability - beginning
Total pension liability - ending (a)
Plan fiduciary net position:
Contributions - employer
Contributions - State of Minnesota
Contributions - employee
Net investment income
Benefit payments, including refunds of employee contributions
Administrative expense
Other changes
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending (b)
Net pension liability - ending (a) - (b)
Plan fiduciary net position as a percentage of the total pension liability
Covered payroll*
Net pension liability as a percentage of covered payroll*
Statement 16
December 31,
2019 2018 2017 2016 2015
$143,922
$143,922
$88,924
$88,924
$86,369
154,784
149,836
127,729
128,235
118,909
-
-
212,120
-
279,202
(79,049)
5,145
-
(5,328)
(902)
(1,074)
231,636
(203)
(170,835)
(216,595)
(370,143)
(113,883)
(470,743)
47,920
76,089
295,411
103,073
8,409
3,007,285
2,931,196
2,635,785
2,532,712
2,524,303
$3,055,205
$3,007,285
$2,931,196
$2,635,785
$2,532,712
$47,399
$54,749
$ -
$ -
$37,571
190,045
184,695
181,554
177,831
177,784
328,474
(130,928)
306,593
158,581
(105,958)
(170,835)
(216,595)
(340,243)
(113,883)
(470,743)
(16,386)
(17,350)
(14,875)
(16,972)
(7,225)
-
-
500
378,697
(125,429)
133,029
206,057
(368,571)
2,121,170
2,246,599
2,113,570
1,907,513
2,276,084
$2,499,867
$2,121,170
$2,246,599
$2,113,570
$1,907,513
$555,338
$886,115
$684,597
$522,215
$625,199
81.8%
70.5%
76.6%
80.2%
75.3%
NA
NA
NA
NA
NA
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.
GASB 68 was implemented in 2015. Information prior to 2015 is not available.
See accompanying notes to the required supplementary information.
we
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 17
SCHEDULE OF CONTRIBUTIONS - CHANHASSEN FIRE DEPARTMENT RELIEF ASSOCIATION
Last Ten Fiscal Years
Actuarially
Contributions in Relation to the
Contribution
Contributions
Determined
Actuarially Determined Contribution
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
-
*The Chanhassen Fire Department Relief Association is comprised of volunteers, therefore, there are no payroll expenditures.
(i.e., there are no covered payroll amounts or percentage calculations.)
GASB 68 was implemented in 2015. Information prior to 2015 is not available.
See accompanying notes to the required supplementary information.
100
CITY OF CHANHASSEN, MINNESOTA
NOTES TO RSI
December 31, 2019
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
2019 Changes in Actuarial Assumptions:
• The mortality projection scale was changed from MP-2017 to MP-2018.
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.
101
CITY OF CHANHASSEN, MINNESOTA
NOTES TO RSI
December 31, 2019
PERA — Public Employees Police and Fire Fund
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%.
• 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.
102
CITY OF CHANHASSEN, MINNESOTA
NOTES TO RSI
December 31, 2019
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.
Sinale 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.
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.
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).
103
CITY OF CHANHASSEN, MINNESOTA
NOTES TO RSI
December 31, 2019
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.
104
meiLTA 1 :11 k, I I k, [eirm k,IomI►IolwI0111_10ki110] 01►yi/_11101:aall 01oil a1►/_1►[a]/_1I
STATEMENTS AND SCHEDULES
105
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106
107
- This page intentionally left blank -
108
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).
109
CITY OF CHANHASSEN, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2019
With Comparative Totals For December 31, 2018
Statement 18
Total Nonmajor
Special
Debt
Capital
Governmental Funds
Revenue
Service
Project
2019 2018
Assets:
Cash and investments
$582,916
$2,927,684
$3,664,696
$7,175,296 $6,988,330
Accrued interest receivable
2,912
12,134
15,758
30,804 36,107
Due from other governmental units
-
-
25,527
25,527 37,788
Accounts receivable - net
50,923
-
35,495
86,418 97,517
Property taxes receivable
-
4,790
4,437
9,227 11,693
Prepaid items
-
-
8,781
8,781 9,326
Interfund loan receivable
-
-
713,600
713,600 700,000
Special assessments receivable
-
319,840
-
319,840 515,620
Total assets $636,751 $3,264,448 $4,468,294 $8,369,493 $8,396,381
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable
$9,896 $380,495 $105,803
$496,194
$450,240
Due to other governmental units
- - 202,903
202,903
5,292
Due to other funds
- - 570
570
-
Salaries payable
8,945 - -
8,945
7,698
Contracts payable
- - 5,439
5,439
231,479
Interfund loan payable
- - -
-
96,065
Total liabilities
18,841 380,495 314,715
714,051
790,774
Deferred inflows of resources:
Unavailable revenue
- 319,840 -
319,840
444,047
Fund balance:
Nonspendable
-
-
8,781
8,781
9,326
Restricted
61,995
1,344,306
1,537,790
2,944,091
2,618,680
Assigned
555,915
1,219,807
2,607,578
4,383,300
4,558,045
Unassigned
-
-
(570)
(570)
(24,491)
Total fund balance
617,910
2,564,113
4,153,579
7,335,602
7,161,560
Total liabilities, deferred inflows
of resources, and fund balance
$636,751
$3,264,448
$4,468,294
$8,369,493
$8,396,381
110
CITY OF CHANHASSEN, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 19
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2019
With Comparative Totals For The Year Ended December 31, 2018
Total Nonmajor
Special
Debt
Capital
Governmental Funds
Revenue
Service
Project
2019
2018
Revenues:
General property taxes
$ -
$935,312
$893,000
$1,828,312
$1,824,697
Licenses and permits
-
-
614,586
614,586
584,555
Intergovernmental
-
-
301,539
301,539
361,740
Special assessments
-
373
131,329
131,702
137,631
Charges for services
194,131
-
-
194,131
243,530
Investment earnings
20,730
86,381
125,780
232,891
114,851
Contributions and donations
42,265
-
2,500
44,765
44,952
Refunds and reimbursements
-
-
26,016
26,016
96,493
Other
-
-
2,800
2,800
2,200
Total revenues
257,126
1,022,066
2,097,550
3,376,742
3,410,649
Expenditures:
Current:
General government
172,455
79,921
201,303
453,679
702,138
Public safety
54,615
-
55,711
110,326
97,570
Public works
-
-
424,953
424,953
738,899
Parks and recreation
-
-
13,725
13,725
54,988
Community development
-
-
570
570
62,661
Capital outlay:
General government
60,074
-
49,970
110,044
22,133
Public safety
-
-
701,818
701,818
1,169,952
Public works
-
-
79,394
79,394
16,478
Parks and recreation
-
-
797,124
797,124
1,316,908
Debt service:
Principal
-
720,000
-
720,000
370,000
Interest and paying agent fees
-
157,312
-
157,312
173,660
Total expenditures
287,144
957,233
2,324,568
3,568,945
4,725,387
Revenues over (under) expenditures
(30,018)
64,833
(227,018)
(192,203)
(1,314,738)
Other financing sources (uses):
Sale of capital assets
-
-
25,698
25,698
58,458
Transfers in
-
-
350,000
350,000
1,081,021
Transfers out
-
-
(9,453)
(9,453)
(5,782,282)
Total other financing sources (uses)
0
0
366,245
366,245
(4,642,803)
Net change in fund balance
(30,018)
64,833
139,227
174,042
(5,957,541)
Fund balance - January 1
647,928
2,499,280
4,014,352
7,161,560
13,119,101
Fund balance - December 31
$617,910
$2,564,113
$4,153,579
$7,335,602
$7,161,560
111
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112
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.
Cemete y 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.
113
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2019
With Comparative Totals For December 31, 2018
Statement 20
201
Contribution
202 Cemetery
210 CATV
Total Nonmajor Special
Fund
Fund
Fund
Revenue
Funds
2019
2018
Assets:
Cash and investments
$16,204
$58,440
$508,272
$582,916
$595,422
Accrued interest receivable
99
268
2,545
2,912
3,262
Accounts receivable - net
6,440
-
44,483
50,923
55,991
Prepaid items
-
-
-
-
951
Total assets
$22,743
$58,708
$555,300
$636,751
$655,626
Liabilities and Fund Balance
Liabilities:
Accounts payable
$ -
$ -
$9,896
$9,896
$ -
Salaries payable
4,585
-
4,360
8,945
7,698
Total liabilities
4,585
0
14,256
18,841
7,698
Fund balance:
Nonspendable
-
-
-
-
951
Restricted
18,158
-
43,837
61,995
135,024
Assigned
-
58,708
497,207
555,915
511,953
Total fund balance
18,158
58,708
541,044
617,910
647,928
Total liabilities and fund balance
$22,743
$58,708
$555,300
$636,751
$655,626
114
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES Statement 21
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2019
With Comparative Totals For The Year Ended December 31, 2018
201
Contribution
202 Cemetery
210 CATV
Total Nonmajor Special
Fund
Fund
Fund
Revenue Funds
2019
2018
Revenues:
Charges for services
$ -
$8,950
$185,181
$194,131
$243,530
Investment earnings
704
1,905
18,121
20,730
8,825
Contributions and donations
41,265
1,000
-
42,265
44,952
Refunds and reimbursements
-
-
-
-
-
Total revenues
41,969
11,855
203,302
257,126
297,307
Expenditures:
Current:
General government
-
2,190
170,265
172,455
153,495
Public safety
54,615
-
-
54,615
56,134
Capital outlay:
General government
-
-
60,074
60,074
7,941
Total expenditures
54,615
2,190
230,339
287,144
217,570
Net change in fund balance
(12,646)
9,665
(27,037)
(30,018)
79,737
Fund balance - January 1
30,804
49,043
568,081
647,928
568,191
Fund balance - December 31
$18,158
$58,708
$541,044
$617,910
$647,928
115
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116
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.
117
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING BALANCE SHEET Statement 22
NONMAJOR DEBT SERVICE FUNDS
December 31, 2019
With Comparative Totals For December 31, 2018
368 2009A
369 2010A
370 2016A
G.O.
G.O. Library
G.O.
300 Permanent
Refunding
Refunding
Refunding
Total Nonmajor
Debt
Revolving Debt
Bonds
Bonds
Bonds
Service Funds
2019
2018
Assets:
Cash and investments
$774,832
$817,151
$775,126
$560,575
$2,927,684
$2,860,503
Cash with escrow agent
-
-
-
-
-
-
Accrued interest receivable
4,237
4,082
2,428
1,387
12,134
13,259
Property taxes receivable
-
-
2,418
2,372
4,790
5,769
Special assessments receivable
8,718
311,122
-
-
319,840
320,151
Total assets
$787,787
$1,132,355
$779,972
$564,334
$3,264,448
$3,199,682
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable
$245
$380,250
$ -
$ -
$380,495
$380,250
Deferred inflows of resources:
Unavailable revenue
8,718
311,122
-
-
319,840
320,152
Fund balance:
Restricted
-
-
779,972
564,334
1,344,306
1,259,147
Assigned
778,824
440,983
-
-
1,219,807
1,240,133
Total fund balance
778,824
440,983
779,972
564,334
2,564,113
2,499,280
Total liabilities, deferred inflows
of resources, and fund balance
$787,787
$1,132,355
$779,972
$564,334
$3,264,448
$3,199,682
118
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 23
CHANGES IN FUND BALANCES
NONMAJOR DEBT SERVICE FUNDS
For The Year Ended December 31, 2019
With Comparative Totals For The Year Ended December 31, 2018
368 2009A
369 2010A
370 2016A
300 Permanent
G.O.
G.O. Library
G.O.
Revolving
Refunding
Refunding
Refunding
Total Nonmajor Debt
Debt
Bonds
Bonds
Bonds
Service Funds
2019
2018
Revenues:
General property taxes
$ -
$ -
$459,512
$475,800
$935,312
$931,697
Special assessments
373
-
-
-
373
393
Investment earnings
30,161
29,061
17,285
9,874
86,381
53,046
Total revenues
30,534
29,061
476,797
485,674
1,022,066
985,136
Expenditures:
Current:
General government
79,921
-
-
-
79,921
392,846
Debt service:
Principal
-
-
390,000
330,000
720,000
370,000
Interest and paying agent fees
-
-
43,955
113,357
157,312
173,660
Total expenditures
79,921
0
433,955
443,357
957,233
936,506
Revenues over (under) expenditures
(49,387)
29,061
42,842
42,317
64,833
48,630
Other financing sources (uses):
Transfers in
-
-
-
-
-
107,148
Transfers out
-
-
-
-
-
(5,290,000)
Total other financing sources (uses)
0
0
0
0
0
(5,182,852)
Net change in fund balance
(49,387)
29,061
42,842
42,317
64,833
(5,134,222)
Fund balance - January 1
828,211
411,922
737,130
522,017
2,499,280
7,633,502
Fund balance - December 31
$778,824
$440,983
$779,972
$564,334
$2,564,113
$2,499,280
119
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120
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 Mana eg ment — Accounts for sealcoating costs on local streets.
480 TIF #11 — Accounts for tax increment financing for the downtown district, TIF #11 —
Frontier Development #2.
603 Lyman Blvd Improvements — Accounts for the street and utility improvement of Lyman Blvd.
121
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2019
With Comparative Totals For December 31, 2018
Assets:
Cash and investments
Accrued interest receivable
Due from other governmental units
Accounts receivable - net
Property taxes receivable
Prepaid items
Interfimd loan receivable
Special assessments receivable
Total assets
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable
Due to other governmental units
Due to other funds
Contracts payable
Interfund loan payable
Total liabilities
Deferred inflows of resources:
Unavailable revenue
Fund balance:
Nonspendable
Restricted
Assigned
Unassigned
Total fund balance
Total liabilities, deferred inflows
of resources, and fund balance
400 Capital 401 Park
Replacement Fund Replacement Fund
$773,868
$553,204
2,591
1,796
259
-
35,495
3,975
8,781
713,600
$1,538,569
$555,000
$61,489
$44,314
61,489
44,314
8,781
1,468,299
510,686
510,686
1,477,080
$1,538,569
$555,000
122
Statement 24
410 Park
420 Street
480 Frontier
603 Lyman
Acquisition and
413 Transit Station
Pavement
Development #2
Boulevard
Total Nonmajor
Development
Assessment Fund
Management
TIF#11
Improvements
Capital Project Funds
2019
2018
$1,732,796
$100,343
$369,191
$
$135,294
$3,664,696
$3,532,405
7,897
484
2,264
726
15,758
19,586
-
-
38
25,230
25,527
37,788
-
-
-
-
-
35,495
41,526
-
-
462
-
4,437
5,924
-
-
-
-
8,781
8,375
-
-
713,600
700,000
-
-
-
-
-
195,469
$1,740,693
$100,827
$371,955
$0
$161,250
$4,468,294
$4,541,073
$ -
$ -
$ -
$ -
$ -
$105,803
$69,990
202,903
-
-
-
202,903
5,292
-
-
570
570
-
5,439
-
5,439
231,479
-
-
-
-
96,065
202,903
0
5,439
570
0
314,715
402,826
-
-
-
-
123,895
-
-
-
8,781
8,375
1,537,790
-
-
-
-
1,537,790
1,224,509
-
100,827
366,516
-
161,250
2,607,578
2,805,959
-
-
-
(570)
-
(570)
(24,491)
1,537,790
100,827
366,516
(570)
161,250
4,153,579
4,014,352
$1,740,693 $100,827 $371,955 $0 $161,250 $4,468,294 $4,541,073
123
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 25
CHANGES IN FUND BALANCES Page 1 of 2
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2019
With Comparative Totals For The Year Ended December 31, 2018
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
$
$ -
$
$93,000
Licenses and permits
-
614,586
-
Intergovernmental
-
301,539
Special assessments
-
-
131,329
-
Investment earnings
32,045
12,782
56,222
3,442
16,118
Contributions and donations
2,500
-
-
-
-
Refunds and reimbursements
24,978
1,000
38
Other
2,800
-
-
-
-
Total revenues
862,323
12,782
671,808
134,771
410,695
Expenditures:
Current:
General government
201,303
Public safety
55,711
-
Public works
13,597
- 385,755
Parks and recreation
4,114
9,611 -
Community development
-
-
Capital outlay:
General government
49,970
Public safety
701,818
Public works
79,394 -
-
Parks and recreation
197,926 250,282
348,916 -
Total expenditures
1,303,833 250,282
358,527 0 385,755
Revenues over (under) expenditures
(441,510) (237,500)
313,281 134,771 24,940
Other financing sources (uses):
Sale of capital assets
25,698
-
Transfers in
-
350,000
Transfers out
-
-
(9,453)
-
Total other financing sources (uses)
25,698
350,000 -
(9,453)
0
Net change in fund balance
(415,812)
112,500 313,281
125,318
24,940
Fund balance - January 1
1,892,892
398,186 1,224,509
(24,491)
341,576
Fund balance - December 31
$1,477,080
$510,686 $1,537,790
$100,827
$366,516
124
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 25
CHANGES IN FUND BALANCES Page 2 of 2
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2019
With Comparative Totals For The Year Ended December 31, 2018
480 Frontier
603 Lyman
Development #2
Boulevard
Total Nonmajor
TIF#11
Improvements
Capital Project Funds
2019
2018
Revenues:
General property taxes
$
$
$893,000
$893,000
Licenses and permits
614,586
584,555
Intergovernmental
0
301,539
361,740
Special assessments
131,329
137,238
Investment earnings
5,171
125,780
52,980
Contributions and donations
-
2,500
-
Refunds and reimbursements
26,016
96,493
Other
-
2,800
2,200
Total revenues
0
5,171
2,097,550
2,128,206
Expenditures:
Current:
General government
-
201,303
155,797
Public safety
-
55,711
41,436
Public works
25,601
424,953
738,899
Parks and recreation
-
13,725
54,988
Community development
570
570
62,661
Capital outlay:
General government
49,970
14,192
Public safety
701,818
1,169,952
Public works
79,394
16,478
Parks and recreation
-
-
797,124
1,316,908
Total expenditures
570
25,601
2,324,568
3,571,311
Revenues over (under) expenditures
(570)
(20,430)
(227,018)
(1,443,105)
Other financing sources (uses):
Sale of capital assets
25,698
58,458
Transfers in
350,000
973,873
Transfers out
-
(9,453)
(492,282)
Total other financing sources (uses)
0 0
366,245
540,049
Net change in fund balance
(570) (20,430)
139,227
(903,056)
Fund balance - January 1
- 181,680
4,014,352
4,917,408
Fund balance - December 31
($570) $161,250
$4,153,579
$4,014,352
125
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126
CITY OF CHANHASSEN, MINNESOTA
SPECIAL REVENUE FUND - CONTRIBUTION FUND Statement 26
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2019
With Comparative Actual Amounts For The Year Ended December 31, 2018
Revenues:
Investment earnings
Contributions and donations
Total revenues
Expenditures:
Current:
Public safety:
Contractual services
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Transfers in
Net change in fund balance
Fund balance - January 1
Fund balance - December 31
2019
2018
Budgeted Amounts
Actual
Variance with
Actual
Original Final
Amounts
Final Budget
Amounts
$ - $ -
$704
$704
$514
38,000 38,000
41,265
3,265
44,952
38,000 38,000
41,969
3,969
45,466
51,500
51,500
54,615
(3,115)
56,134
51,500
51,500
54,615
(3,115)
56,134
(13,500)
(13,500)
(12,646)
854
(10,668)
($13,500) ($13,500)
0 831
(12,646) $1,685
30,804
$18,158
0
(10,668)
41,472
$30,804
127
CITY OF CHANHASSEN, MINNESOTA
SPECIAL REVENUE FUND - CEMETERY FUND Statement 27
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2019
With Comparative Actual Amounts For The Year Ended December 31, 2018
Revenues:
Charges for services
Investment earnings
Contributions and donations
Total revenues
Expenditures:
Current:
General government:
Contractual services
Total expenditures
Revenues over (under) expenditures
Fund balance - January 1
Fund balance - December 31
2019
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
2018
Actual
Ammints
$3,700 $3,700 $8,950
$5,250 $12,550
200 200 1,905
1,705 664
- - 1,000
1,000 -
3,900 3,900 11,855
7,955 13,214
2,700
2,700
2,190
510
1,397
2,700
2,700
2,190
510
1,397
$1,200
$1,200
9,665
$8,465
11,817
49,043
$58,708
37,226
$49,043
128
CITY OF CHANHASSEN, MINNESOTA
SPECIAL REVENUE FUND - CATV Statement 28
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2019
With Comparative Actual Amounts For The Year Ended December 31, 2018
Revenues:
Franchise fees
Investment earnings
Total revenues
Expenditures:
Current:
General government:
Personal services
Materials and supplies
Contractual services
Capital outlay
Total expenditures
Revenues over expenditures
Fund balance - January 1
Fund balance - December 31
2019
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
2018
Actual
Amnimtc
$190,000
$190,000
$185,181
($4,819)
$230,980
2,000
2,000
18,121
16,121
7,647
192,000
192,000
203,302
11,302
238,627
116,200
116,200
114,761
1,439
112,598
5,000
5,000
309
4,691
-
32,300
32,300
55,195
(22,895)
39,500
15,000
15,000
60,074
(45,074)
7,941
168,500
168,500
230,339
(61,839)
160,039
$23,500 $23,500
(27,037) ($50,537)
568,081
$541,044
78,588
489,493
$568,081
129
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130
FIDUCIARY FUNDS
Fiduciary Funds have been established to account for cash or other assets held by the City as a
trustee or agent for others. Revenues are recognized in the accounting period in which they
become available and measurable. Expenditures are recognized in the accounting period in
which the related liability is incurred.
Fiduciary Funds are custodial in nature (assets equal liabilities) and do not involve measurement
of the results of operations.
Escrow Fund — This fund is used to account for various deposits required by the City.
Moon Valley Restoration Fund— This is an escrow fund which will be used to finance restoration
to a gravel pit when it ceases operation.
131
CITY OF CHANHASSEN, MINNESOTA
COMBINING STATEMENT OF NET POSITION
AGENCY FUNDS
December 31, 2019
With Comparative Totals For December 31, 2018
Statement 29
Totals
913 Moon
815 Escrow
Valley
Fund
Restoration Fund
2019
2018
Assets:
Cash and investments
$2,204,242
$87,350
$2,291,592
$2,161,036
Liabilities:
Accounts payable
$69,802
$ -
$69,802
$27,975
Escrow deposits payable
2,134,440
87,350
2,221,790
2,133,061
Total liabilities
$2,204,242
$87,350
$2,291,592
$2,161,036
132
CITY OF CHANHASSEN, MINNESOTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
For The Year Ended December 31, 2019
Statement 30
Balance
Balance
01/01/19
Additions
Deletions
12/31/19
Escrow Fund
Assets:
Cash and investments
$2,073,817
$1,520,330
$1,389,905
$2,204,242
Liabilities:
Accounts payable
$27,975
$41,827
$ -
$69,802
Escrow deposits payable
2,045,842
1,478,503
1,389,905
2,134,440
Total liabilities
$2,073,817
$1,520,330
$1,389,905
$2,204,242
Moon Valley Restoration Fund
Assets:
Cash and investments
$87,219
$131
$
$87,350
Liabilities:
Escrow deposits payable
$87,219
$131
$
$87,350
Totals - All Agency Funds
Assets:
Cash and investments
$2,161,036
$1,520,461
$1,389,905
$2,291,592
Liabilities:
Accounts payable
$27,975
$41,827
$ -
$69,802
Escrow deposits payable
2,133,061
1,478,634
1,389,905
2,221,790
Total liabilities
$2,161,036
$1,520,461
$1,389,905
$2,291,592
133
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134
III. STATISTICAL SECTION (UNAUDITED)
135
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136
III. STATISTICAL SECTION (UNAUDITED)
This part of the City of Chanhassen, Minnesota's Comprehensive Annual Financial Report
presents detailed information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information says about the City of
Chanhassen, Minnesota's overall financial health.
Contents
Table
Number
Financial Trends
These tables contain trend information to help the reader understand how the Tables 1-4
City's financial performance and well-being have changed over time.
Revenue Capacity
These tables contain information to help the reader assess the City's most Tables 5-8
significant local revenue source, the property tax.
Debt Capacity
These tables present information to help the reader assess the affordability of the Tables 9-13
City's current levels of outstanding debt and the City's ability to issue additional
debt in the future.
Demographic and Economic
These tables offer demographic and economic indicators to help the reader Tables 14-15
understand the environment within which the City's financial activities take
place.
Operating Information
These tables contain service and infrastructure data to help the reader Tables 16-18
understand how the information in the City's financial report relates to the
services the City provides and the activities it performs.
Sources: Unless otherwise noted, the information in these tables is derived from the
comprehensive financial reports for the relevant year.
137
CITY OF CHANHASSEN, MINNESOTA
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2010
2011
2012
2013
Governmental activities:
Net investment in capital assets
$73,272,450
$70,866,708
$69,987,563
$71,260,946
Restricted:
Debt service
9,655,951
9,774,727
5,905,553
6,595,927
Park Improvements
2,088,246
2,516,027
1,650,118
1,714,972
Tax increment purposes
693,309
812,096
1,022,785
1,347,593
Other purposes
121,137
168,147
142,747
165,838
Unrestricted
8,348,968
8,823,980
14,544,111
13,724,705
Total governmental activities net position
$94,180,061
$92,961,685
$93,252,877
$94,809,981
Business -type activities:
Net investment in capital assets
$57,028,340
$55,430,138
$54,475,353
$52,541,451
Unrestricted
10,259,836
9,484,947
10,631,342
11,391,338
Total business -type activities net position
$67,288,176
$64,915,085
$65,106,695
$63,932,789
Primary government:
Net investment in capital assets
Restricted:
Debt service
Park Improvements
Tax increment purposes
Other purposes
Unrestricted
Total primary government net position
$130,300,790
9,655,951
2,088,246
693,309
121,137
19-609-904
$126,296,846
9,774,727
2,516,027
812,096
168,147
19309-927
$124,462,916
5,905,553
1,650,118
1,022,785
142,747
25.175.453
$123,802,397
6,595,927
1,714,972
1,347,593
165,838
25,116,043
$161,468,237 $157,876,770 $158,359,572 $158,742,770
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
2014
2015
2016
2017
2018
2019
$71,867,072
$71,225,523
$72,588,940
$70,255,784
$71,053,355
$72,986,179
3,441,810
3,455,172
1,390,127
1,400,411
1,189,447
1,283,606
1,751,739
1,896,923
1,505,784
1,716,043
1,224,509
1,537,790
965,809
475,357
399,178
-
-
-
176,089
154,810
164,751
153,633
135,024
61,995
13,877,772
9,510,105
10,221,704
10,028,355
8,781,660
8,360,013
$92,080,291
$86,717,890
$86,270,484
$83,554,226
$82,383,995
$84,229,583
$54,111,608
$55,704,478
$57,478,975
$57,212,106
$56,195,385
$54,469,960
10,467,201
10,032,731
10,516,316
10,126,315
12,342,280
13,557,181
$64,578,809
$65,737,209
$67,995,291
$67,338,421
$68,537,665
$68,027,141
$125,978,680
$126,930,001
$130,067,915
$127,467,890
$127,248,740
$127,456,139
3,441,810
3,455,172
1,390,127
1,400,411
1,189,447
1,283,606
1,751,739
1,896,923
1,505,784
1,716,043
1,224,509
1,537,790
965,809
475,357
399,178
-
-
-
176,089
154,810
164,751
153,633
135,024
61,995
24,344,973
19,542,836
20,738,020
20,154,670
21,123,940
21,917,194
$156,659,100
$152,455,099
$154,265,775
$150,892,647
$150,921,660
$152,256,724
139
CITY OF CHANHASSEN, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Expenses
Governmental activities:
General government
Public safety
Public works
Parks and recreation
Community development
Interest on long-term debt
Total governmental activities expenses
Business -type activities:
Water
Sewer
Surface water management
Total business -type activities expenses
Total primary government expenses
Program revenues
Governmental activities:
Charges for services:
Licenses and permits
Charges for services
Fines and forfeits
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business -type activities:
Charges for services:
Water
Sewer
Surface water management
Operating grants and contributions
Capital grants and contributions
Total business -type activities program revenues
Total primary government program revenues
$2,898,608
$2,565,486
$2,690,853
$2,630,405
3,227,396
3,061,122
3,176,441
3,313,694
6,308,023
8,607,534
7,743,147
14,224,453
3,046,718
2,921,593
3,114,340
2,919,183
879,048
799,379
646,262
523,651
880,384
838,421
725,881
588,352
17,240,177
18,793,535
18,096,924
24,199,738
3,443,583
3,581,955
3,646,787
4,702,686
3,252,510
3,317,329
3,235,324
3,548,200
1,202,556
1,173,115
1,347,345
1,334,173
7,898,649
8,072,399
8,229,456
9,585,059
$25,138,826
$26,865,934
$26,326,380
$33,784,797
$1,331,374
$1,381,326
$1,595,358
$2,113,770
1,189,560
1,047,726
1,394,356
1,396,068
123,609
126,571
119,997
99,984
414,654
692,428
404,663
472,298
4,175,655
7 74A QC'
1,646,573
A OnA K7A
2,953,496
G A47 Q' n
10,718,999
1 A OM 11 n
2,424,634
2,611,327
3,146,886
2,829,226
2,365,358
2,297,677
2,434,370
2,358,854
538,688
534,473
590,323
615,896
2,984
12,589
121,925
63,112
1,593,289
1,086,655
1,861,689
2,852,437
6,924,953
6,542,721
8,155,193
8,719,525
$14,159,805
$11,437,345
$14,623,063
$23,520,644
140
Table 2
Page 1 of 2
2014
2015
2016
2017
2018
2019
$3,099,004
$2,775,663
$2,887,111
$3,230,517
$3,291,465
$2,968,604
3,416,088
3,826,376
3,973,031
3,969,540
3,819,890
4,045,361
9,604,525
11,153,322
7,591,530
8,161,048
7,225,531
9,808,088
3,062,592
2,952,985
3,278,139
3,227,236
3,158,725
3,275,021
1,043,848
527,268
689,448
918,962
589,570
535,700
465,935
409,676
493,746
408,273
173,323
132,327
20,691,992
21,645,290
18,913,005
19,915,576
18,258,504
20,765,101
3,347,965
3,290,265
4,422,789
3,866,810
4,567,874
5,842,506
3,171,696
3,297,128
3,254,619
3,746,880
4,122,804
3,879,581
1,491,763
1,328,144
1,388,979
1,538,468
1,634,475
1,918,378
8,011,424
7,915,537
9,066,387
9,152,158
10,325,153
11,640,465
$28,703,416
$29,560,827
$27,979,392
$29,067,734
$28,583,657
$32,405,566
$1,691,634
$1,565,900
$1,653,858
$1,641,140
$2,289,052
$2,047,190
1,149,372
1,153,779
1,209,882
1,257,486
1,203,187
1,090,985
100,516
117,189
114,367
128,394
95,351
89,989
532,337
823,943
735,840
902,871
948,912
2,770,655
3,296,748
5,812,825
3,705,857
2,425,333
1,669,995
4,716,702
6,770,607
9,473,636
7,419,804
6,355,224
6,206,497
10,715,521
2,573,027
2,611,895
2,717,285
2,921,936
3,121,292
3,108,307
2,472,536
2,525,731
2,619,882
2,764,674
3,034,207
3,144,282
639,087
668,971
684,199
709,508
764,930
998,832
210,857
45,130
72,007
45,109
44,604
460,905
2,633,793
3,140,823
5,199,139
1,678,595
3,965,466
3,108,377
8,529,300
8,992,550
11,292,512
8,119,822
10,930,499
10,820,703
$15,299,907
$18,466,186
$18,712,316
$14,475,046
$17,136,996
$21,536,224
141
CITY OF CHANHASSEN, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Net (expense) revenue:
Governmental activities
Business -type activities
Total primary government
net(expense)revenue
General revenues and other changes in net position
Governmental activities:
Property taxes
Tax increment collections
Grants and contributions not restricted to specific programs
Unrestricted investment earnings
Gain on sale of capital assets
Special item - sale of public works building
Transfers
Total governmental activities
Business -type activities:
Unrestricted investment earnings
Miscellaneous
Gain on sale of capital assets
Transfers
Total business -type activities
Total primary government
Change in net assets:
Governmental activities
Business -type activities
Total primary government
2010
2011
2012
2013
($10,005,325)
($13,898,911)
($11,629,054)
($9,398,619)
(973,696)
(1,529,678)
(74,263)
(865,534)
(10,979,021)
(15,428,589)
(11,703,317)
(10,264,153)
10,014,684
9,849,882
10,064,176
10,059,324
539,523
566,045
533,011
545,906
45,767
28,304
20,071
19,941
222,719
505,541
173,523
(14,764)
20,727
44,000
56,610
37,720
-
-
1,246,275
-
(487,911)
1,061,763
(173,420)
307,596
10,355,509
12,055,535
11,920,246
10,955,723
114,349
211,707
92,453
(776)
33,644
6,643
-
-
487,911
(1,061,763)
173,420
(307,596)
635,904
(843,413)
265,873
(308,372)
$10,991,413
$11,212,122
$12,186,119
$10,647,351
$350,184
($1,843,376)
$291,192
$1,557,104
(337,792)
(2,373,091)
191,610
(1,173,906)
$12,392
($4,216,467)
$482,802
$383,198
142
Table 2
Page 2 of 2
2014
2015
2016
2017
2018
2019
($13,921,385)
($12,171,654)
($11,493,201)
($13,560,352)
($12,052,007)
($10,049,580)
517,876
1,077,013
2,226,125
(1,032,336)
605,346
(819,762)
(13,403,509)
(11,094,641)
(9,267,076)
(14,592,688)
(11,446,661)
(10,869,342)
10,482,273
10,536,216
10,643,917
10,826,116
10,877,849
10,996,831
307,940
200,338
111,761
-
-
-
19,736
21,679
19,754
19,753
19,755
20,009
183,602
176,731
156,202
164,393
258,456
491,345
191,755
66,248
41,129
38,254
45,244
103,976
6,389
(612,078)
73,032
(204,422)
(319,528)
283,007
11,191,695
10,389,134
11,045,795
10,844,094
10,881,776
11,895,168
134,533
132,406
79,765
171,044
263,802
548,747
57,510
25,224
-
10,568
43,498
(6,389)
612,078
(73,032)
204,422
319,528
(283,007)
128,144
801,994
31,957
375,466
593,898
309,238
$11,319,839
$11,191,128
$11,077,752
$11,219,560
$11,475,674
$12,204,406
($2,729,690)
($1,782,520)
($447,406)
($2,716,258)
($1,170,231)
$1,845,588
646,020
1,879,007
2,258,082
(656,870)
1,199,244
(510,524)
($2,083,670)
$96,487
$1,810,676
($3,373,128)
$29,013
$1,335,064
143
CITY OF CHANHASSEN, MINNESOTA
FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
General Fund:
Reserved
Unreserved:
Designated
Undesignated
Nonspendable
Unassigned
Total general fund
All other governmental funds:
Reserved
Unreserved:
Designated
Special revenue funds
Capital project funds
Undesignated
Debt service funds
Capital project funds
Nonspendable
Restricted
Assigned
Unassigned
Total all other governmental funds
2010
2011
2012
2013
$55,826
$ -
$ -
$ -
3,754,000
-
-
-
1,459,792
-
-
-
-
17,280
57,137
16,741
-
5,278,118
5,434,641
5,274,584
$5,269,618
$5,295,398
$5,491,778
$5,291,325
$5,642,029
$ -
$ -
$ -
2,082,929
-
-
-
7,487,198
-
-
-
356,724
-
-
-
(786,209)
-
-
-
-
12,662
1,373,146
1,327,068
-
10,426,585
6,359,422
9,181,230
-
6,561,411
6,731,400
6,366,292
-
(730,120)
(646,856)
(559,515)
$14,782,671
$16,270,538
$13,817,112
$16,315,075
The City implemented GASB Statement No. 54 for the fiscal year ended December 31, 2011.
Information for years prior to 2011 is presented in accordance with fund balance classifications in effect at that time.
144
Table 3
2014
2015
2016
2017
2018
2019
58,333
72,114
25,832
81,032
87,067
82,265
5,550,732
5,258,232
5,286,880
5,307,088
5,667,626
5,255,804
$5,609,065
$5,330,346
$5,312,712
$5,388,120
$5,754,693
$5,338,069
1,289,575
1,253,705
-
990,723
9,326
8,781
5,724,419
5,824,354
8,673,981
8,458,576
2,618,680
2,944,091
5,951,507
5,586,353
7,806,958
6,602,135
6,414,882
6,657,125
(475,352)
(372,509)
(264,772)
(154,506)
(24,491)
(570)
$12,490,149
$12,291,903
$16,216,167
$15,896,928
$9,018,397
$9,609,427
145
CITY OF CHANHASSEN, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Revenues:
General property taxes
Tax increment collections
Licenses and permits
Intergovernmental
Special assessments
Charges for services
Fines and forfeits
Investment income
Contributions and donations
Refunds and reimbursements
Other
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Parks and recreation
Community development
Capital outlay:
General government
Public safety
Public works
Parks and recreation
Debt service:
Principal
Interest and paying agent fees
Bond issuance costs
Developer assistance
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Bonds issued
Loans issued
Bond premium (discount)
Remption of refunding bonds
Transfers in
Transfers out
Sale of capital assets
Special item - sale of public works building
Total other financing sources (uses)
Net change in fund balance
Debt service as a percentage of noncapital expenditures
Debt service as percentage of total expenditures
Inin
$10,141,168
539,523
1,331,374
401,550
790,426
923,550
123,609
222,719
58,016
132,616
213,272
14,877,823
7M 1
$9,760,052
566,045
1,381,326
1,425,525
1,242,040
795,616
126,571
505,541
50,685
117,441
846,523
16,817,365
In 11)
$10,143,011
533,011
1,595,358
2,151,785
1,667,881
880,920
119,997
173,523
36,893
253,030
264,038
17,819,447
Iniz
$10,176,483
545,906
2,113,770
7,971,339
3,193,078
907,414
99,984
(14,764)
33,159
235,363
259,703
25,521,435
2,525,326
2,162,479
2,326,490
2,274,640
3,077,038
2,896,644
3,013,980
3,179,446
2,739,704
4,779,067
3,726,158
10,628,140
1,901,564
1,906,489
2,154,714
2,002,604
698,818
502,916
621,295
522,538
473,753
129,535
75,226
87,707
65,667
52,645
39,314
74,144
3,995,444
2,122,641
3,502,371
2,482,728
490,737
309,524
1,310,366
627,214
2,370,000
1,025,000
5,100,000
1,590,000
888,843
853,152
814,621
599,487
46,505
-
-
-
176,643
298,216
21,108
-
19,450,042
17,038,308
22,705,643
24,068,648
(4,572,219)
(220,943)
(4,886,196)
1,452,787
5,200,000
35,964
1,105,000
30,675
$1,799,420
23.2%
17.0%
1,734,590
1,734,590
$1,513,647
13.3%
11.0%
1,203,031
(48,881)
1,475,000
2,629,150
($2,257,046)
33.3%
26.0%
888,711
(43,988)
25,KF, l LJ
$2,297,510
10.5%
9.1%
146
Table 4
$10,489,350
$10,529,994
$10,640,315
$10,820,682
$10,856,842
$10,960,876
307,940
200,338
111,761
-
-
-
1,691,634
1,565,900
1,653,858
1,641,140
2,289,052
2,047,190
2,553,062
4,897,139
974,917
2,149,875
2,019,215
6,294,417
854,966
1,664,424
820,026
842,523
600,056
727,026
798,578
799,543
846,540
838,498
820,745
808,010
100,516
117,189
114,367
128,394
95,351
89,989
183,602
176,731
156,202
164,393
258,456
491,345
66,918
78,175
60,802
73,734
70,339
70,202
77,871
85,955
150,093
174,853
156,920
73,468
265,119
267,622
276,067
264,114
225,522
209,507
17,389,556
20,383,010
15,804,948
17,098,206
17,392,498
21,772,030
2,350,437
2,391,195
2,479,271
2,871,267
2,835,108
2,644,661
3,258,363
3,431,541
3,713,146
3,602,897
3,593,877
3,802,544
5,352,221
7,537,376
3,961,016
4,617,523
3,847,782
6,041,417
2,164,703
2,068,532
2,256,314
2,395,554
2,326,272
2,418,229
1,034,047
515,382
659,276
940,000
610,368
567,461
34,080
-
62,713
30,838
22,133
110,044
23,980
122,143
314,004
2,950
1,169,952
701,818
2,894,237
2,566,867
459,142
2,595,012
2,315,068
4,959,997
485,107
476,323
1,153,763
376,992
1,316,908
797,124
4,190,000
1,810,000
1,795,000
670,000
5,985,000
720,000
518,722
439,470
483,533
433,925
295,294
157,312
22,305,897
21,358,829
17,337,178
18,536,958
24,317,762
22,920,607
(4,916,341)
(975,819)
(1,532,230)
(1,438,752)
(6,925,264)
(1,148,577)
-
-
4,805,000
-
-
-
-
-
239,773
-
-
-
1,783,719
2,158,844
1,347,883
1,924,157
6,724,164
2,153,197
(676,095)
(1,701,005)
(1,044,114)
(748,522)
(6,369,316)
(855,912)
301,531
41,015
90,318
19,286
58,458
25,698
1,409,155
498,854
5,438,860
1,194,921
413,306
1,322,983
($3,507,186)
($476,965)
$3,906,630
($243,831)
($6,511,958)
$174,406
25.0%
12.4%
14.8%
7.1%
32.2%
5.4%
21.1%
10.5%
13.1%
6.0%
25.8%
3.8%
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
2010
$30,301,115
$170,857
$10,229,329
$477,663
$41,178,964
2011
28,951,885
131,751
9,778,491
511,185
39,373,312
2012
27,198,238
137,012
9,149,904
520,743
37,005,897
2013
26,970,557
105,160
8,927,095
541,612
36,544,424
2014
28,725,937
132,728
8,984,174
613,105
38,455,944
2015
32,778,287
153,500
9,205,053
620,620
42,757,460
2016
33,790,483
222,144
9,508,063
669,890
44,190,580
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
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
($532,007)
($1,861,362)
$38,785,595
25.18300
$3,491,841,800
1.11%
(509,863)
(1,998,912)
36,864,537
26.60256
3,350,141,800
1.10%
(469,759)
(2,038,437)
34,497,701
28.53211
3,153,275,000
1.09%
(435,999)
(1,804,630)
34,303,795
28.42838
3,118,066,700
1.10%
(252,884)
(1,971,928)
36,231,132
27.23862
3,294,605,000
1.10%
(267,337)
(1,896,611)
40,593,512
24.63317
3,686,777,200
1.10%
(103,638)
(2,119,400)
41,967,542
24.25249
3,802,904,100
1.10%
-
(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%
149
CITY OF CHANHASSEN, MINNESOTA
DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES
Last Ten Fiscal Years
City Direct Rate(l)
Overlapping Rates
Fiscal
Operational
Debt
City
School
Carver
Year
and Capital
Service
Total
District #112
County
Other
Tax capacity rates (per $100 of adjusted tax capacity value)
2010
20.722
4.461
25.183
35.840
39.509
5.639
2011
21.915
4.688
26.603
40.236
41.752
6.021
2012
23.701
4.831
28.532
44.382
43.562
6.681
2013
23.635
4.793
28.428
45.319
46.115
6.603
2014
22.708
4.531
27.239
44.917
45.211
6.873
2015
21.532
3.101
24.633
39.120
40.488
6.270
2016
21.314
2.938
24.252
39.245
38.880
6.417
2017
21.536
2.317
23.853
37.005
38.851
6.565
2018
20.731
1.935
22.666
33.837
37.436
6.537
2019
19.314
1.791
21.105
33.631
36.488
6.368
Source: Carver County Taxpayer Services
(')The City Direct Rate is the Urban Based Rate, not including market value levies.
Table 6
Total
106.171
114.610
123.158
126.467
124.239
110.512
108.795
106.274
100.476
97.592
150
CITY OF CHANHASSEN, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
Taxable
C nnacity
2019 2010
Taxpayer
Value
Rank
Istar Minnesota LLC
$481,450
1
Northern States Power Co
446,710
2
SGO MN West Village LLC
430,912
3
LTF Real Estate MP II LLC
326,224
4
Rosemount Inc
298,278
5
Prince R Nelson
292,952
6
Lake Susan Apartment Homes LLC
286,873
7
LTF Real Estate Company Inc
281,314
8
Centerpoint Energy Minnegasco
257,738
9
PHM/Chanhassen Inc.
234,896
10
IRET Properties
LTF Real Estate VRDN I LLC
DRF Chanhassen Medical Bldg
Park Avenue Lofts LLC
Market Square Assoc Ltd Partnership
Target Corporation T-0862
Total
$3,337,347
Total All Property
$50,367,723
Source: Carver County Taxpayer Services
Percentage
of Total City Taxable
cAnArity C nnarity
ie
Value
Rank
1.0%
$377,698
4
0.9%
533,587
1
0.9%
0.6%
206,508
8
0.6%
440,562
2
0.6%
0.6%
0.6%
0.5%
0.5%
-
413,364
3
-
235,980
5
-
235,662
6
-
214,704
7
-
204,622
9
-
204,062
10
$39,198,935
Table 7
Percentage
of Total City
C nnnoity
1.1%
0.6%
0.6%
0.5%
0.5%
0.5%
151
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152
CITY OF CHANHASSEN, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Fiscal
Taxes
Year
Levied
Ended
For The
December 31,
Fiscal Year
2010
$10,213,190
2011
10,267,390
2012
10,153,690
2013
10,195,890
2014
10,334,140
2015
10,484,021
2016
10,629,621
2017
10,795,121
2018
10,913,868
2019
11,019,868
Source: City Finance Department
Collected Within The
Fiscal Year of the Levy
Percentage
Amount
of Levy
$9,918,528
97.1%
9,739,125
94.9%
10,005,877
98.5%
10,105,393
99.1%
10,269,518
99.4%
10,446,765
99.6%
10,564,815
99.4%
10,718,876
99.3%
10,834,344
99.3%
10,924,102
99.1 %
Collections
in
Subsequent
Years
($17,763)
186,353
51,796
20,236
28,614
26,410
23,721
(3,912)
32,201
Table 8
Total Collections to Date
Amount
$9,900,765
9,925,478
10,057,674
10,125,629
10,298,132
10,473,175
10,588,536
10,714,964
10,866,545
10,924,102
Percentage
of Levy
96.9%
96.7%
99.1 %
99.3%
99.7%
99.9%
99.6%
99.3%
99.6%
99.1 %
153
CITY OF CHANHASSEN, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Governmental Activities
General
General
Fiscal
Obligation
Revenue Tax Increment
Improvement
Year
Bonds
Bonds Bonds
Bonds
2010
$16,860,000
$230,000 $900,000
$5,805,000
2011
16,195,000
120,000 840,000
5,615,000
2012
11,475,000
- 775,000
5,420,000
2013
10,155,000
- 705,000
5,220,000
2014
9,550,000
- 635,000
1,705,000
2015
8,925,000
- -
1,155,000
2016
13,313,788
- -
-
2017
12,627,803
- -
-
2018
6,626,818
- -
-
2019
5,890,833
- -
-
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(')Information pertaining to Chanhassen Personal Income is not available, information for Carver County was
included instead.
(a) Information not available
154
Business -Type
Activities
Other G.O. Revenue
Debt Bonds Total Debt
$10,955,000
20,077,339
20,578,313
16,324,287
10,045,261
9,256,235
13,926,719
23,379,318
25,671,988
23,755,499
$34,750,000
42,847,339
38,248,313
32,404,287
21,935,261
19,336,235
27,240,507
36,007,121
32,298,806
29,646,332
Debt
Per Capita
$1,514
1,849
1,629
1,353
899
784
1,092
1,425
1,238
1,125
Table 9
Bonded Debt
Per Total
Carver County
Personal
Income(i)
0.7%
0.8%
0.7%
0.6%
0.4%
0.3 %
0.4%
0.5%
0.4%
(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
2010
$16,860,000
$900,000
$5,805,000
$10,955,000
$34,520,000
$9,217,254
$25,302,746
64.55%
$1,102
2011
16,195,000
840,000
5,615,000
20,077,339
42,727,339
16,998,401
25,728,938
68.61%
1,110
2012
11,475,000
775,000
5,420,000
20,578,313
38,248,313
13,020,206
25,228,107
71.80%
1,074
2013
10,155,000
705,000
5,220,000
16,324,287
32,404,287
10,266,366
22,137,921
63.62%
924
2014
9,550,000
635,000
1,705,000
10,045,261
21,935,261
3,441,810
18,493,451
50.09%
758
2015
8,925,000
-
1,155,000
9,256,235
19,336,235
3,455,171
15,881,063
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
Note: Details regarding the CiWs outstanding debt can be found in the notes to the financial statements.
156
CITY OF CHANHASSEN, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
December 31, 2019
Table 11
Estimated
Estimated Share of
Debt Percentage Overlapping
Governmental Unit Outstanding Applicable* Debt
Direct debt:
City of Chanhassen(') $5,890,833 100.00% $5,890,833
Overlapping debt:
Eastern Carver County School District
147,130,000
37.61%
55,334,718
Eden Prairie Independent School District
92,448,017
0.92%
850,522
Carver County
13,360,000
31.81%
4,250,377
Hennepin County
983,232,996
0.05%
491,616
Hennepin Suburban Park District
39,123,902
0.07%
27,387
Hennepin Regional Railroad Authority
91,599,372
0.05%
45,800
Metropolitan Council
142,583,705
0.03%
42,775
Subtotal - overlapping debt
1,509,477,992
61,043,195
Total direct and overlapping debt
$1,515,368,825
$66,934,028
(')Excludes debt related to the City's business -type activities.
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents
and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term
debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not
imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
*For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed
property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable
assessed value that is within the City's boundaries and dividing it by each unit's total taxable assessed value.
157
CITY OF CHANHASSEN, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2019
Market value $4,444,627,000
Applicable percentage 3%
Debt limit 133,338,810
Debt applicable to limit:
Total bonded debt 29,646,332
Less:
Special assessment bonds -
Tax increment bonds -
Enterprise Fund debt (23,755,499)
Less:
Cash and investments in G.O. Bond Debt Service Fund (1,335,701)
4,555,132
Legal debt margin $128,783,678
Legal Debt Margin Calculation for Fiscal Years 2009 Through 2018
Table 12
Net Debt
Net Debt Legal Amount of Debt Applicable
Fiscal Debt Applicable to Debt Applicable to to Limit
Year Population Limit Limit Margin Debt Limit Per Capita
2010
22,952
$104,755,254
$15,831,831
$88,923,423
15.11%
$690
2011
23,179
100,504,254
14,755,258
85,748,996
14.68%
637
2012
23,484
94,598,250
10,117,347
84,480,903
10.70%
431
2013
23,954
93,542,001
8,705,958
84,836,043
9.31%
363
2014
24,388
98,838,150
8,030,953
90,807,197
8.13%
329
2015
24,655
110,603,316
7,346,583
103,256,733
6.64%
298
2016
24,951
114,087,123
6,721,445
107,365,678
5.89%
269
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
158
CITY OF CHANHASSEN, MINNESOTA
PLEDGED REVENUE COVERAGE Table 13
Last Ten Fiscal Years
Improvement Bonds
Special
Fiscal
Assessment
Debt Service
Year
Collections
Principal Interest
Coverage
2010
$313,131
$820,000
$223,667
0.300
2011
456,912
190,000
171,300
1.265
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
-
-
-
-
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.
159
CITY OF CHANHASSEN, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
Fiscal
Year
Chanhassen
Population(l)
2010
22,952
2011
23,179
2012
23,484
2013
23,954
2014
24,388
2015
24,655
2016
24,951
2017
25,273
2018
26,088
2019
26,355
Chanhassen
Unemployment
Rate(2)
6.1%
4.8%
4.5%
4.1%
3.4%
2.9%
2.9%
2.8%
2.4%
2.5%
Carver County
Unemployment
Rate(2)
6.8%
5.5%
4.8%
4.3%
3.6%
3.2%
3.3%
2.9%
2.5%
2.8%
Table 14
Carver County Carver County
Personal Income
Per Capita
(thousands)(3)
Personal Income (3)
$4,704,331
$51,468
5,126,799
55,239
5,520,198
58,811
5,635,711
58,944
6,074,716
62,392
6,402,984
64,916
6,630,989
66,059
7,012,049
68,645
7,388,388
71,350
(a)
(a)
Sources: (I )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
Current Year and Nine Years Ago
Employer
Employees
Lifetime Fitness
1,911
Instant Web Companies
1,123
Rosemount Inc
863
The Bernard Group
665
Eastern Carver County Schools
470
General Mills
334
RR Donnelley
321
Chanhassen Dinner Theatres
290
Minnesota Landscape Arboretum
266
Target
210
Super Value Headquarters
Checkpoint Systems Inc
Total 6,453
Source: Survey by City Administration and Finance Departments
2019
Percentage
of Total City
Rank
Employment I
Employees
1
29.6%
815
2
17.4%
847
3
13.4%
1,475
4
10.3%
5
7.3%
350
6
5.2%
288
7
5.0%
347
8
4.5%
275
9
4.1%
230
10
3.3%
-
675
_
'Ann
5,602
(')The statistic for total City employment is not available, therefore the percentage represents the percentage of
the top ten listed.
Table 15
2010
Percentage
of Total City
Rank
Employment 1)
3
14.5%
2
15.1%
1
26.3%
5
6.2%
8
5.1%
6
6.2%
9
4.9%
10
4.1%
4
12.0%
7
5.4%
161
CITY OF CHANHASSEN, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Full -Time Equivalent Employees as of December 31,
Function/Program 2010 2011 2012 2013
General government 13 13 13 13
Public safety 3 3 3 3
Public works 26 26 26 26
Parks & recreation 11 11 11 11
Community development 15 15 14 14
Total 68 68 67 67
Source: City Finance Department
162
Table 16
Full -Time Equivalent Employees as of December 31,
2014 2015 2016 2017 2018 2019
13
13
13
13
13
13
3
3
2
2
2
2
26
26
27
29
29
29
11
11
12
13
13
13
14
14
16
16
16
15
67
67
70
73
73
72
163
CITY OF CHANHASSEN, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program
Building:
Total permits issued
Total estimated value
Election:
Registered voters
Fire:
Average number of employees
General government:
Area of city - square miles
Average number of permanent full-time
employees (excluding fire department)
Police:
Average number of employees
Number of crimes - MNCJRS(')
Number of crimes - NIBRS(')
Water:
Number of customers
Daily average consumption - gallons
Plant capacity - gallons
Source: Various City Departments
Fiscal Year
2010 2011 2012 2013
2,910
3,397
3,285
3,201
$65,046,933
$82,991,029
$83,531,808
$89,370,069
15,326
15,326
16,916
16,916
45
45
45
45
23.78
23.78
23.78
23.78
68
68
67
67
15
15
15
15
647
757
777
748
7,620
7,655
7,741
7,953
2,698,559
2,257,542
2,570,349
2,876,383
8,550,000
8,550,000
8,550,000
8,550,000
(')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 Sheriffs Office transitioned to
NIBRS June 1, 2016.
164
Table 17
Fiscal Ycar
2014 2015 2016 2017 2018 2019
3,076
3,266
2,891
2,981
3,085
3,259
$80,591,941
$82,145,483
$73,881,121
$82,430,550
$136,016,287
$103,902,405
16,344
16,344
17,769
17,769
17,480
17,480
45
45
45
45
45
45
23.79
23.79
23.79
23.79
23.79
23.79
67
67
70
73
73
72
15
15
15
15
15
15
838
870
313
-
-
-
-
-
472
737
698
692
8,075
8,195
8,254
8,312
8,407
8,481
2,542,413
2,495,868
2,565,905
2,624,486
2,888,586
2,247,455
8,550,000
8,550,000
8,550,000
8,550,000
17,100,000
17,100,000
165
CITY OF CHANHASSEN, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTIONTROGRAM
Last Ten Fiscal Years
Fiscal Year
Function/Program
2010
2011
2012
2013
Fire:
Number of stations
2
2
2
2
Parks and recreation:
Acres of parks
396
396
401
401
Acres of open space
434
489
503
503
Number of shelter buildings
4
4
4
4
Number of picnic shelters
5
5
5
6
Number of playgrounds
26
26
26
27
Number of swimming beaches
5
5
5
5
Number of tennis courts
17
17
15
15
Number of outdoor pickleball courts
-
-
2
3
Police:
Number of stations
1
1
1
1
Public works:
Miles of streets
111.9
112.0
112.6
113.5
Miles of sidewalks
31.9
31.9
31.9
31.9
Miles of trails
53.6
56.1
56.4
58.6
Sewer:
Miles of storm sewers
71.0
74.5
75.3
76.5
Miles of sanitary sewers
123.6
123.7
123.9
124.3
Number of lift stations
31
31
31
31
Water:
Miles of watermains
136.8
137.8
138.0
139.1
Number of wells
12
12
12
12
Source: Various City Departments
166
Table 18
Fiscal Year
2014 2015 2016 2017 2018 2019
2
2
2
2
2
2
405
405
405
466
466
466
503
503
503
528
528
628
4
4
4
4
4
4
7
13
15
18
21
21
27
27
27
27
27
28
5
5
5
5
5
5
15
15
15
16
16
16
6
6
6
10
10
10
1
1
1
1
1
1
113.7
113.9
116.5
116.5
117.0
117.1
32.0
32.0
34.0
34.0
34.0
34.0
59.2
59.9
62.4
62.4
65.0
66.4
77.0
78.8
84.3
84.5
86.8
86.9
124.5
125.3
128.2
128.2
128.6
128.8
31
31
31
31
31
31
139.3
140.6
145.5
145.5
148.8
148.9
12
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168
IV. OTHER INFORMATION (UNAUDITED)
169
CITY OF CHANHASSEN, MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS
December 31, 2019
Final
Interest
Issue
Maturity
Bonded indebtedness:
Rates
Date
Date
General obligation bonds:
G.O. Library Refunding Bonds, Series 2010A
2.00%-3.10%
01/27/10
02/01/22
G.O. Bonds, Series 2016A
2.00%-3.00%
03/03/16
02/01/30
Total general obligation bonds
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
Total Enterprise Fund debt
Total City bonded indebtedness
170
Prior Years
Original
Issue Payments
Payable
January 1,
$3,660,000
$2,030,000
$1,630,000
4,805,000
-
4,805,000
8,465,000
2,030,000
6,435,000
5,920,000
3,520,000
2,400,000
3,720,000
90,000
3,630,000
1,245,000
600,000
645,000
1,565,000
280,000
1,285,000
3,630,000
-
3,630,000
10,000,000
400,000
9,600,000
3,595,000
-
3,595,000
2019
Exhibit 1
Payable Principal
December 31,
Due in
Issued Payments
2019
2020
$ - $390,000
$1,240,000
$400,000
- 330,000
4,475,000
345,000
0 720,000
5,715,000
745,000
- 695,000
1,705,000
705,000
- 470,000
3,160,000
480,000
- 125,000
520,000
125,000
- 145,000
1,140,000
150,000
- -
3,630,000
-
150,000
9,450,000
150,000
- 265,000
3,330,000
260,000
$38,140,000 $6,920,000 $31,220,000 $ -
$2,570,000 $28,650,000 $2,615,000
171
CITY OF CHANHASSEN, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY
GENERAL OBLIGATION BONDS - GOVERNMENTAL ACTIVITIES
December 31, 2019
Bonds payable
Future interest payable
Payments to maturity:
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
G.O. Library
Refunding
Bonds,
Series 2010A
$1,240,000
57,775
$1,297,775
$431,630
429,480
436,665
$1,297,775
G.O.
Bonds,
Series 2016A
$4,475,000
565,975
$5,040,975
$447,875
452,300
451,350
455,025
453,325
458,300
460,000
461,500
462,800
468,850
469,650
$5,040,975
Exhibit 2
Total
$5,715,000
623,750
$6,338,750
$879,505
881,780
888,015
455,025
453,325
458,300
460,000
461,500
462,800
468,850
469,650
$6,338,750
172
CITY OF CHANHASSEN, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY Exhibit 3
GENERAL OBLIGATION REVENUE BONDS
December 31, 2019
G.O. Water
G.O. Water
G.O. Water &
G.O. Water
G.O. Water
G.O. Water
G.O. Water
Revenue
Revenue
Sewer Revenue
Revenue
Revenue
Revenue
Revenue
Bonds, Series
Bonds, Series
Bonds, Series
Bonds, Series
Bonds, Series
Bonds, Series
Bonds, Series
2011A
2011B
2012A
2016A
2016B
2017A
2018A Total
Bonds payable
Future interest payable
$1,705,000
42,877
$1,747,877
$3,160,000
294,300
$3,454,300
$520,000
15,128
$535,128
$1,140,000
102,275
$1,242,275
$3,630,000
2,904,603
$6,534,603
$9,450,000
3,596,750
$13,046,750
$3,330,000
586,325
$3,916,325
$22,935,000
7,542,258
$30,477,258
Payments to maturity:
2020
$731,758
$567,600
$131,321
$178,500
$138,238
$441,400
$358,750
2,547,567
2021
738,163
572,900
134,758
178,925
138,238
443,350
355,875
2,562,209
2022
277,956
572,675
133,003
179,200
138,238
440,250
356,400
2,097,722
2023
-
576,925
136,046
179,325
138,238
440,500
356,625
1,827,659
2024
580,575
-
174,375
138,238
434,100
357,925
1,685,213
2025
583,625
175,200
138,238
432,600
354,000
1,683,663
2026
-
176,750
138,238
430,900
354,850
1,100,738
2027
-
138,238
843,575
355,400
1,337,213
2028
138,238
845,425
355,650
1,339,313
2029
138,238
846,675
355,600
1,340,513
2030
138,238
847,325
355,250
1,340,813
2031
138,238
842,450
980,688
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
$1,747,877
$3,454,300
$535,128
$1,242,275
$6,534,603
$13,046,750
$3,916,325
$30,477,258
173
CITY OF CHANHASSEN, MINNESOTA
SCHEDULE OF DEFERRED TAX LEVIES
December 31, 2019
Years of
Levy/
Collection
2019/2020
2020/2021
2021 /2022
2022/2023
2023/2024
2024/2025
2025/2026
2026/2027
2027/2028
2028/2029
Library
Bonds
of 2002A/
2010A
$457,412
465,497
$922,909
Exhibit 4
G.O. Capital
Total
Improvement
Deferred
Plan Bonds
Tax
of 2008A
Levies
$480,585
479,745
483,840
482,213
485,520
487,410
489,090
490,560
497,070
498,015
$4,874,048
$937,997
945,242
483,840
482,213
485,520
487,410
489,090
490,560
497,070
498,015
$5,796,957
174