2017 Annual Financial ReportFor the Fiscal Year Ended December 31, 2017.
CITY OF CHANHASSEN, MINNESOTA
Comprehensive Annual
FINANCIALREP RT
2017
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE CITY OF CHANHASSEN, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2017
Finance Department
Greg Sticha, Finance Director
Member of Government Finance Officers
Association of United States and Canada
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CITY OF CHANHASSEN, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
I. INTRODUCTORY SECTION
Letter of Transmittal 3
Certificate of Achievement 7
Organization Chart 8
Organization 9
II. FINANCIAL SECTION
Independent Auditor's Report 13
Management's Discussion and Analysis 17
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position Statement 1 33
Statement of Activities Statement 2 34
Fund Financial Statements:
Balance Sheet - Governmental Funds Statement 3 36
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds Statement 4 37
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities Statement 5 38
Statement of Net Position - Proprietary Funds Statement 6 39
Statement of Revenues, Expenses and Changes in Fund Net Position -
Proprietary Funds Statement 7 40
Statement of Cash Flows - Proprietary Funds Statement 8 41
Statement of Net Position - Fiduciary Funds Statement 9 42
Notes to Financial Statements 43
Required Supplementary Information:
Budgetary Comparison Schedule - General Fund Statement 10 86
Schedule of Funding Progress - Retiree Health Plan Statement 11 92
Schedule of Proportionate Share of Net Pension Liability - General Employees
Retirement Fund Statement 12 93
Schedule of Pension Contributions - General Employees Retirement Fund Statement 13 94
Schedule of Proportionate Share of Net Pension Liability - Public Employees Police
and Fire Fund Statement 14 95
Schedule of Pension Contributions - Public Employees Police and Fire Fund Statement 15 96
Schedule of Changes in the Net Pension Liability and Related Ratios -
Chanhassen Fire Department Relief Association Statement 16 97
Schedule of Contributions - Chanhassen Fire Department Relief Association Statement 17 98
Notes to RSI 99
CITY OF CHANHASSEN, MINNESOTA
TABLE OF CONTENTS
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Reference No.
Combining and Individual Nonmajor Fund Financial Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds Statement 18 106
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Governmental Funds Statement 19 107
Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 20 110
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Special Revenue Funds Statement 21 111
Subcombining Balance Sheet - Nonmajor Debt Service Funds Statement 22 114
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Debt Service Funds Statement 23 115
Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 24 118
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Capital Project Funds Statement 25 121
Special Revenue Funds:
Schedules of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual:
Contribution Fund Statement 26 124
Cemetery Fund Statement 27 125
CATV Statement 28 126
Combining Statement of Net Position - Agency Funds Statement 29 128
Combining Statement of Changes in Assets and Liabilities - Agency Funds Statement 30 129
III. STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Position by Component Table 1 134
Changes in Net Position Table 2 136
Fund Balances - Governmental Funds Table 3 140
Changes in Fund Balances - Governmental Funds Table 4 142
Revenue Capacity:
Tax Capacity Value and Estimated Market Value of Taxable Property Table 5 144
Direct and Overlapping Property Tax Capacity Rates Table 6 146
Principal Property Taxpayers Table 7 147
Property Tax Levies and Collections Table 8 149
Debt Capacity:
Ratios of Outstanding Debt by Type Table 9 150
Ratios of General Bonded Debt Outstanding Table 10 152
Direct and Overlapping Governmental Activities Debt Table 11 153
Legal Debt Margin Information Table 12 154
Pledged Revenue Coverage Table 13 155
CITY OF CHANHASSEN, MINNESOTA
TABLE OF CONTENTS
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Reference No.
Demographic and Economic:
Demographic and Economic Statistics Table 14 156
Principal Employers Table 15 157
Operating Information:
Full-Time Equivalent City Government Employees by Function/Program Table 16 158
Operating Indicators by Function/Program Table 17 160
Capital Asset Statistics by Function/Program Table 18 162
Combined Schedule of Indebtedness Exhibit 1 166
Debt Service Payments to Maturity:
General Obligation Bonds - Governmental Activities Exhibit 2 168
General Obligation Revenue Bonds Exhibit 3 169
Schedule of Deferred Tax Levies Exhibit 4 170
IV. OTHER INFORMATION (UNAUDITED)
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I. INTRODUCTORY SECTION
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June 22, 2018
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, 2017 is hereby submitted. This report was prepared by the Chanhassen Finance Department
and responsibility for both the accuracy of the presented data and the completeness and fairness of the
presentation, including all disclosures, supporting schedules and statistical tables rests with the City. We believe
the data, as presented, is accurate in all material respects; that it is presented in a manner designed to fairly set
forth the financial position and results of operations of the City as measured by the financial activity of its various
funds; and that all disclosures necessary to enable the reader to gain the maximum understanding of the City's
financial affairs have been included.
The organization, form and contents of this report were prepared in accordance with the standards prescribed by
the Governmental Accounting Standards Board, the Government Finance Officers Association of the United States
and Canada (GFOA), the American Institute of Certified Public Accountants, Minnesota’s Office of the State
Auditor and City policies.
This transmittal letter is designed to complement the Management’s Discussion and Analysis (MD&A) and should
be read in conjunction with it. The MD&A can be found immediately following the report of the independent
auditors.
Reporting Entity and Its Services
This report includes all funds and departments of the City (the primary government) and its component unit. The
City provides a full range of services to its residents and businesses including general government, public safety
(police and fire protection), public works (engineering, streets, and equipment maintenance), parks and
recreational activities, and community development. In addition to general municipal services, the City provides
water and sanitary sewer service and oversight (through licensing) of the refuse and recycling services. In
accordance with the reporting entity definition of the Governmental Accounting Standards Board, the City has
included the Chanhassen Economic Development Authority (EDA) in these financial statements as a blended
component unit. The EDA is governed by five commissioners appointed by the City Council with the City
Manager as executive director. The Chanhassen Fire Relief Association has been excluded from this report
because it is governed by a board elected by its members and it is not fiscally dependent upon the City. The
Western Area Fire Training Association (WAFTA) is governed by an eleven-person board comprised of one
member appointed by each jurisdiction who is a party to the joint powers agreement. Although the City is jointly
responsible for the maintenance and cleanup costs of the training site in rural Carver County, we do not exercise
substantial control of the association. The school districts that serve residents of the City, like all school districts in
Minnesota, are governed independently by their own elected board members. They levy their own taxes and
prepare their own financial reports. Accordingly, they are excluded from this report.
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Relevant Financial Policies
The City has a policy regarding General Fund reserve balances. The City has a designated fund balance in the
General Fund equivalent to 50% of the ensuing year’s budgeted tax levy to provide working capital between 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, 2017, the
maturities of the investments range from 1 day to 7 years, with an average maturity of 1.51 years. Maturities are
not to exceed 7 years unless for a dedicated purpose such as a future bond payment. The average yield to maturity
on the portfolio at December 31, 2017 was 1.36%. 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, 2017 was 25,273. Chanhassen’s residential permits were higher in
2017 as compared to 2016. In 2016, there were 48 residential permits as compared to 67 in 2017. The total value
of all building permits and plan checks in 2017 was $82,430,550.
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 115 acre Lifestyle Center, which includes 1,000,000 square feet of office, retail and housing, was
approved in 2017 and is currently working on site grading. Commercial and industrial remodeling and expansion
continues the reinvestment into the community.
During 2017, the City issued $10,000,000 of General Obligation Water Revenue Bonds, being used for
improvements to the water utility system, including construction of a new water treatment plant. In early 2018, the
final $3,595,000 of bonds were issued for the construction of the new water treatment plant.
Accounting System and Budgetary Control
The City's accounting records are maintained on the accrual, or modified accrual basis, as appropriate. Budgetary
control is maintained through the City's accounting and reporting system whereby monthly detail reports of budget
versus actual are provided to all departments with summaries being provided to the City Council. Approval
listings and documentation are provided for the City Council at each semi-monthly meeting for all checks issued
by the City.
In the City's accounting system, careful consideration is given to the adequacy of internal controls. These controls
are designed to provide reasonable, but not necessarily absolute, assurance regarding: (1) the safeguarding of
assets against loss from unauthorized use or disposition and (2) the reliability of financial records for preparing
financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes
that: (1) the cost of control should not exceed the benefits likely to be derived and (2) the evaluation of costs and
benefits requires estimates and judgments by management. All internal control evaluation occurs within the above
framework. We believe the City's internal controls adequately safeguard assets and provide reasonable assurance
of proper recording of financial transactions.
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.
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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, 2016. 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 five consecutive years (fiscal years ended 1992 – 2016). We believe
our current report continues to conform to the Certificate of Achievement program requirements and we are
submitting it to GFOA to determine its eligibility for another certificate.
Independent Audit
State law provides that the City may arrange for examination of its books, records, accounts and affairs, or any
part thereof, by the State Auditor, or by Certified Public Accountants. It has been a long-standing policy of the
City to provide for a complete annual audit of City records by Certified Public Accountants. The auditor’s opinion
has been included in this report.
Acknowledgments
We wish to express our appreciation to the members of the City Council for their support in improving the
financial condition of the City. We also want to thank the Finance Department staff and department directors for
their assistance in compiling the information necessary for this report. Finally, we wish to acknowledge Redpath
and Company, LTD for their assistance in preparing this report.
Respectfully submitted,
Greg Sticha, Finance Director
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City of Chanhassen, Minnesota
Organization Chart
Citizens
Administration
Mayor - Council
Environmental
Commission
Planning
Commission
Senior
Commission
Park & RecreationPark & Recreation
Commission
Economic
Development
Authority
Finance
Law
Enforcement
& Fire
Administration
Public
Works
Community
Development
Parks and
Recreation
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CITY OF CHANHASSEN, MINNESOTA
ORGANIZATION
December 31, 2017
Term Expires
Mayor:
Denny Laufenburger 12/31/18
Council Members:
Bethany Tjornhom 12/31/20
Jerry McDonald 12/31/20
Elise Ryan 12/31/18
Dan Campion 12/31/18
City Manager:
Todd Gerhardt Appointed
Finance Director:
Greg Sticha Appointed
Community Development Director:
Kathryn Aanenson Appointed
Public Works Director/City Engineer:
Paul Oehme Appointed
Parks and Recreation Director:
Todd Hoffman Appointed
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II. FINANCIAL SECTION
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4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Chanhassen, Minnesota
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund and the aggregate remaining fund information of the City
of Chanhassen, Minnesota, as of and for the year ended December 31, 2017, and the related notes to
the financial statements, which collectively comprise the City of Chanhassen, Minnesota’s basic
financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether due
to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the entity’s preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express
no such opinion. An audit also includes evaluating the appropriateness of accounting policies used
and the reasonableness of significant accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major
fund and the aggregate remaining fund information of the City of Chanhassen, Minnesota, as of
December 31, 2017, 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 2016 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 16, 2017. In our opinion, the summarized comparative
information presented herein as of and for the year ended December 31, 2016 is consistent, in all
material respects, with the audited financial statements from which it has been derived.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, the budgetary comparison information, the schedule of
funding progress, and the schedules of pension liabilities and contributions, as listed in the table of
contents, be presented to supplement the basic financial statements. Such information, although not
a part of the basic financial statements, is required by the Governmental Accounting Standards
Board, who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied certain
limited procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or
provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
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.
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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 22, 2018, on our consideration of the City of Chanhassen, Minnesota’s internal control over
financial reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe the
scope of our testing of internal control over financial reporting and compliance and the results of
that testing, and not to provide an opinion on internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the City of Chanhassen, Minnesota’s internal control over
financial reporting and compliance.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
June 22, 2018
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MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Chanhassen, Minnesota (the City), we offer readers of the City’s
financial statements this narrative overview and analysis of the financial activities of the City for
the fiscal year ended December 31, 2017. 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
$150,892,647 (net position). Of this amount, $20,154,670 (unrestricted net position) may be
used to meet the City’s ongoing obligations to citizens and creditors in accordance with the
City's fund designations and fiscal policies.
The City’s total net position decreased by $3,373,128.
As of the close of the current fiscal year, governmental funds reported combined ending fund
balances of $21,285,048. Of this amount, $8,458,576 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 $5,388,120. Of that
amount, $81,032 was in a nonspendable form and the remaining $5,307,088 was unassigned.
Total debt increased by $8,766,614 during the current fiscal year, from $27,240,507 to
$36,007,121. Please refer to the Capital Asset and Debt Administration portion of this analysis
for an explanation of the increase.
Overview of the Financial Statements
The management’s discussion and analysis is intended to serve as an introduction to the City’s
basic financial statements, which are comprised of three components: 1) government-wide
financial statements, 2) fund financial statements, and 3) notes to the financial statements. This
report also contains other supplementary information in addition to the basic financial statements
themselves.
Government-wide financial statements. The government-wide financial statements are
designed to provide readers with a broad overview of the City’s finances, in a manner similar to
a private-sector business.
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Management’s Discussion and Analysis
The statement of net position presents information on all of the City’s assets, deferred outflows
of resources, liabilities, and deferred inflows of resources, with the difference reported as net
position. Over time, increases or decreases in net position may serve as a useful indicator of
whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues
and expenses are reported in this statement for some items that will only result in cash flows in
future fiscal periods (e.g. uncollected taxes, and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business-type activities). The governmental activities of the City include
general government, public safety, public works, parks and recreation, and community
development. The business-type activities include water, sewer, and surface water management.
The government-wide financial statements can be found on Statements 1 and 2 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The City,
like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements. All of the funds can be divided into three
categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements focus on near-term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may be
useful in evaluating a government’s near-term financial requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements.
By doing so, readers may better understand the long-term impact of the City's near-term financial
decisions. Both the governmental fund balance sheet and governmental fund statement of
revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
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Management’s Discussion and Analysis
The City maintains two 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
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.
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.
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Management’s Discussion and Analysis
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 $150,892,647 at the close of the most recent fiscal year.
The largest portion of the City’s net position ($127,467,890, 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
2017 2016 2017 2016 2017 2016
Assets:
Current and other assets $25,717,270 $25,828,754 $19,036,069 $17,610,363 $44,753,339 $43,439,117
Capital assets 78,118,880 81,182,242 74,879,632 65,998,971 152,998,512 147,181,213
Total assets 103,836,150 107,010,996 93,915,701 83,609,334 197,751,851 190,620,330
Total deferred outflows of resources 1,546,919 2,766,838 215,456 469,375 1,762,375 3,236,213
Liabilities:
Long-term liabilities outstanding 18,235,875 20,427,351 24,453,599 15,238,791 42,689,474 35,666,142
Other liabilities 2,220,129 2,318,730 2,156,104 695,956 4,376,233 3,014,686
Total liabilities 20,456,004 22,746,081 26,609,703 15,934,747 47,065,707 38,680,828
Total deferred inflows of resources 1,372,839 761,269 183,033 148,671 1,555,872 909,940
Net position:
Net investment in capital assets 70,255,784 72,588,940 57,212,106 57,478,975 127,467,890 130,067,915
Restricted 3,270,087 3,459,840 - - 3,270,087 3,459,840
Unrestricted 10,028,355 10,221,704 10,126,315 10,516,316 20,154,670 20,738,020
Total net position $83,554,226 $86,270,484 $67,338,421 $67,995,291 $150,892,647 $154,265,775
Governmental Activities Business-Type Activities Totals
$3,270,087 of the City’s net position represents resources that are subject to external restrictions
on how they may be used. The remaining balance of unrestricted net position ($20,154,670) may
be used to meet ongoing obligations to citizens and creditors.
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Management’s Discussion and Analysis
At the end of the current fiscal year, the City is able to report positive balances in all three
categories of net position, both for the City as a whole, as well as for its separate governmental
and business-type activities.
Governmental Activities
Total net position of the governmental activities decreased $2,716,258, or 3%. The most
significant components of change in net position are as follows:
Net investment in capital assets decreased $2,333,156 due to depreciation expense
exceeding capital asset additions.
Restricted net position decreased $189,753. This decrease occurred due to the
decertification of four TIF districts in 2017 (TIF #4, #5, #9 and #10).
Unrestricted net position decreased $193,349. A $370,753 reduction occurred as a result
of recording pension expense in accordance with GASB Statement No. 68. A variety of
other positive factors helped to offset pension expense.
Business-Type Activities
The total net position of the City’s business-type activities decreased by $656,870, or less than
1%, primarily because contributions of capital assets and operating revenues were less than
depreciation expense and transfers out for construction projects. Unrestricted net position
decreased $390,001, primarily due to the transfer out of construction costs to the appropriate
governmental funds.
21
Management’s Discussion and Analysis
City of Chanhassen, Minnesota's Changes in Net Position
2017 2016 2017 2016 2017 2016
Revenues:
Program revenues:
Charges for services $3,027,020 $2,978,107 $6,396,118 $6,021,366 $9,423,138 $8,999,473
Operating grants and contributions 902,871 735,840 45,109 72,007 947,980 807,847
Capital grants and contributions 2,425,333 3,705,857 1,678,595 5,199,139 4,103,928 8,904,996
General revenues:
General property taxes 10,826,116 10,643,917 - - 10,826,116 10,643,917
Tax increment collections - 111,761 - - - 111,761
Grants and contributions not
restricted to specific programs 19,753 19,754 - - 19,753 19,754
Unrestricted investment earnings 164,393 156,202 171,044 79,765 335,437 235,967
Gain on sale of capital assets 38,254 41,129 - 25,224 38,254 66,353
Total revenues 17,403,740 18,392,567 8,290,866 11,397,501 25,694,606 29,790,068
Expenses:
General government 3,230,517 2,887,111 - - 3,230,517 2,887,111
Public safety 3,969,540 3,973,031 - - 3,969,540 3,973,031
Public works 8,161,048 7,591,530 - - 8,161,048 7,591,530
Parks and recreation 3,227,236 3,278,139 - - 3,227,236 3,278,139
Community development 918,962 689,448 - - 918,962 689,448
Interest and fees on long-term debt 408,273 493,746 - - 408,273 493,746
Water - - 3,866,810 4,422,789 3,866,810 4,422,789
Sewer - - 3,746,880 3,254,619 3,746,880 3,254,619
Surface water management - - 1,538,468 1,388,979 1,538,468 1,388,979
Total expenses 19,915,576 18,913,005 9,152,158 9,066,387 29,067,734 27,979,392
Increase (decrease) in net position before transfers (2,511,836) (520,438) (861,292) 2,331,114 (3,373,128) 1,810,676
Transfers (204,422) 73,032 204,422 (73,032) - -
Change in net position (2,716,258) (447,406) (656,870) 2,258,082 (3,373,128) 1,810,676
Net position - beginning 86,270,484 86,717,890 67,995,291 65,737,209 154,265,775 152,455,099
Net position - ending $83,554,226 $86,270,484 $67,338,421 $67,995,291 $150,892,647 $154,265,775
Governmental Activities Business-Type Activities Totals
22
Management’s Discussion and Analysis
Governmental Activities
Revenues
Revenues for the governmental activities decreased by $988,827, or 5%. The primary reason for
the change was due to a decrease in capital asset contributions which were slightly offset by
increased special assessment and other intergovernmental revenues.
Expenses
Expenses for the governmental activities increased by $1,002,571, or 5%. This increase was due
to non-capitalized construction costs, including street construction projects and city hall exterior
improvements.
Below are specific graphs which provide comparisons of the governmental activities revenues
and expenses:
23
Management’s Discussion and Analysis
Business-Type Activities
Revenues
Revenues for the business-type activities decreased by $3,106,635, or 27%. More specifically,
capital grants and contributions decreased $3,520,544 from the previous year. The decrease was
primarily due to fewer developer contributed assets in all funds as compared to the previous year.
Expenses
Expenses for business-type activities increased by $85,771, or 1%. There was no significant
item that accounted for this increase.
24
Management’s Discussion and Analysis
Below are specific graphs showing the business-type activities revenue and expense
comparisons:
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 $21,285,048. Approximately 40% of this total amount ($8,458,576) constitutes
fund balance restricted by external constraints established by creditors, grantors, contributors, or
by state statutory provisions. $1,071,755 of fund balance is not in a spendable form, $6,602,135
has been assigned, and $5,152,582 is unassigned.
The General Fund balance increased by $75,408 in 2017. There were no significant items that
contributed to this change in fund balance.
The Revolving Assessment Fund balance decreased by $232,419. The decrease was due to
expenses for construction projects.
The nonmajor special revenue funds increased by $44,465. There were no significant items that
contributed to this change in fund balance.
The nonmajor debt service funds decreased by $4,914. There were no significant items that
contributed to this change in fund balance.
The nonmajor capital project funds decreased by $126,371. The decrease was due to the
decertification of TIF #10 (returning the increment to Carver County) which was partly offset by
governmental revenues in two funds exceeding spending within those funds.
Proprietary funds. The City’s proprietary funds provide the same type of information found in
the government-wide financial statements, but in more detail.
The unrestricted net position in the respective proprietary funds is $4,298,965 (Water),
$4,727,849 (Sewer) and $1,099,501 (Surface Water Management).
Net position in the Water Fund increased by $25,082. There was nothing significant that
contributed to this increase.
Net position in the Sewer Fund decreased by $502,789. The decrease was due to fewer
developer contributed assets as compared to previous year.
Net position in the Surface Water Management Fund decreased by $179,163. The decrease was
due to fewer developer contributed assets as compared to the previous year.
26
Management’s Discussion and Analysis
Budgetary Highlights
General Fund
There were no budget amendments to the General Fund in 2017.
Budgetary Variances – Revenues
The positive General Fund revenue variance of $246,564 was primarily due to building permit
revenue exceeding budget.
Budgetary Variances – Expenses
Expenses for the General Fund had a positive variance of $233,322. The variance was due to a
number of insignificant line items below budget, primarily vacant positions and fuel costs being
less than anticipated.
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, 2017 amounts to $152,998,512 (net of accumulated depreciation).
This investment in capital assets includes land, easements, buildings, infrastructure, machinery,
and equipment.
City of Chanhassen, Minnesota’s Capital Assets
(Net of Depreciation)
Beginning Ending
Primary Government Balance Increase Decrease Balance
Governmental activities:
Capital assets not being depreciated:
Land $19,801,717 $1,001 $ - $19,802,718
Construction in progress 1,618,180 1,274,915 (1,043,815) 1,849,280
Permanent easements 1,498,994 67,468 - 1,566,462
Total capital assets not being depreciated 22,918,891 1,343,384 (1,043,815) 23,218,460
Capital assets being depreciated:
Buildings and structures 23,188,737 121,646 - 23,310,383
Machinery and equipment 8,748,196 175,090 (184,755) 8,738,531
Other improvements 7,501,186 1,133,761 (7,431) 8,627,516
Infrastructure 118,353,094 52,317 (41,520) 118,363,891
Total capital assets being depreciated 157,791,213 1,482,814 (233,706) 159,040,321
Less accumulated depreciation for:
Buildings and structures 7,834,495 567,566 - 8,402,061
Machinery and equipment 5,912,938 477,489 (92,297) 6,298,130
Other improvements 3,564,572 296,596 (4,757) 3,856,411
Infrastructure 82,215,857 3,408,962 (41,520) 85,583,299
Total accumulated depreciation 99,527,862 4,750,613 (138,574) 104,139,901
Governmental activities capital assets - net $81,182,242 ($1,924,415) ($1,138,947) $78,118,880
27
Management’s Discussion and Analysis
Beginning Ending
Primary Government Balance Increase Decrease Balance
Business-type activities:
Capital assets not being depreciated:
Land $2,085,435 $9,000 $ - $2,094,435
Construction in progress 1,257,057 11,785,659 (153,330) 12,889,386
Permanent easements 1,312,248 568,557 - 1,880,805
Total capital assets not being depreciated 4,654,740 12,363,216 (153,330) 16,864,626
Capital assets being depreciated:
Buildings and structures 12,445,429 - - 12,445,429
Machinery and equipment 1,804,519 50,074 (22,365) 1,832,228
Other improvements 113,533,018 207,421 (15,591) 113,724,848
Total capital assets being depreciated 127,782,966 257,495 (37,956) 128,002,505
Less accumulated depreciation for:
Buildings and structures 2,240,914 248,917 - 2,489,831
Machinery and equipment 883,315 120,071 (22,364) 981,022
Other improvements 63,314,506 3,217,731 (15,591) 66,516,646
Total accumulated depreciation 66,438,735 3,586,719 (37,955) 69,987,499
Business-type activities capital assets - net 65,998,971 9,033,992 (153,331) 74,879,632
Total capital assets - net $147,181,213 $7,109,577 ($1,292,278) $152,998,512
Additional information on the City’s capital assets can be found in Note 5.
Governmental Activities Capital Assets. There was a decrease in capital assets due to the
reduction in depreciable assets (current year depreciation expense exceeded current year
additions).
Business-Type Activities Capital Assets. There was an increase in capital assets due to the
construction of a new water treatment plant.
Long-term debt. At the end of the current fiscal year, the City had total bonds payable
outstanding of $36,007,121, an increase of $8,766,614 from 2016. The increase was due to the
issuance of $10,000,000 General Obligation Revenue Bonds for the new water treatment plant.
The balance of the bonds payable outstanding is comprised of $12,420,000 in general obligation
bonds, $22,565,000 of revenue bonds which financed capital investments for the water, sewer,
and surface water management operations, and unamortized bond premiums of $1,022,121.
Additional long-term debt in the amount of $899,243 for compensated absences was also
outstanding at the end of 2017.
28
Management’s Discussion and Analysis
City of Chanhassen, Minnesota’s Outstanding Debt
2017 2016 2017 2016 2017 2016
General obligation bonds $12,420,000 $13,090,000 $ - $ - $12,420,000 $13,090,000
Revenue bonds - - 22,565,000 13,520,000 22,565,000 13,520,000
Bond premium 207,803 223,788 814,318 406,719 1,022,121 630,507
Compensated absences 705,202 763,563 194,041 180,600 899,243 944,163
Total $13,333,005 $14,077,351 $23,573,359 $14,107,319 $36,906,364 $28,184,670
TotalsBusiness-Type ActivitiesGovernmental Activities
As the financial statements will indicate, the City maintained strong financial reserves and
continues its practice of utilizing multiple long term financial planning documents. The City’s
bond rating was reaffirmed in February 2017 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 either Standard & Poor’s or Moody’s.
State statutes limit the amount of general obligation debt a Minnesota city may issue to 3% of the
total estimated market value. The current debt limitation for the City is $116,994,876. Of the
City's outstanding debt, $7,130,000 is applicable to the statutory limitation.
Additional information on the City’s long-term debt can be found in Note 6.
Requests for Information. This financial report is designed to provide a general overview of
the City of Chanhassen, Minnesota’s finances for all those with an interest in the government’s
finances. Questions concerning any of the information provided in this report or requests for
additional financial information should be addressed to the Director of Finance, 7700 Market
Boulevard, P.O. Box 147, Chanhassen, Minnesota 55317.
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30
BASIC FINANCIAL STATEMENTS
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32
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF NET POSITION Statement 1
December 31, 2017
With Comparative Totals For December 31, 2016
Governmental Business-Type
Activities Activities 2017 2016
Assets:
Cash and investments $15,438,795 $12,822,106 $28,260,901 $28,786,085
Cash with escrow agent 5,331,655 - 5,331,655 5,414,798
Restricted cash - 5,686,976 5,686,976 3,724,395
Accrued interest receivable 59,075 57,026 116,101 95,218
Due from other governmental units 79,911 2,872 82,783 280,169
Accounts receivable - net 239,632 1,240,316 1,479,948 1,409,998
Property taxes receivable 249,327 - 249,327 217,259
Prepaid items 1,071,755 20,752 1,092,507 28,023
Inventories - at cost - 79,527 79,527 51,113
Internal balances 942,793 (942,793) - -
Contract for deed receivable - - - 1,252,869
Special assessments receivable 2,304,327 69,287 2,373,614 2,179,190
Capital assets (net of accumulated depreciation):
Nondepreciable 23,218,460 16,864,626 40,083,086 27,573,631
Depreciable 54,900,420 58,015,006 112,915,426 119,607,582
Total assets 103,836,150 93,915,701 197,751,851 190,620,330
Deferred outflows of resources related to pensions 1,546,919 215,456 1,762,375 3,236,213
Liabilities:
Accounts payable 552,149 220,266 772,415 523,050
Due to other governmental units 22,611 106,511 129,122 247,634
Salaries payable 195,990 44,657 240,647 236,912
Contracts payable 601,219 1,513,453 2,114,672 627,009
Accrued interest payable 175,686 270,492 446,178 277,926
Unearned revenue 672,474 725 673,199 1,102,155
Compensated absences payable:
Due within one year 72,769 20,022 92,791 155,772
Due in more than one year 632,433 174,019 806,452 788,391
Other post employment benefits payable:
Due in more than one year 47,656 - 47,656 34,050
Bonds payable:
Due within one year 5,985,000 1,375,000 7,360,000 1,625,000
Due in more than one year 6,642,803 22,004,318 28,647,121 25,615,507
Net pension liability:
Due in more than one year 4,855,214 880,240 5,735,454 7,447,422
Total liabilities 20,456,004 26,609,703 47,065,707 38,680,828
Deferred inflows of resources related to pensions 1,372,839 183,033 1,555,872 909,940
Net position:
Net investment in capital assets 70,255,784 57,212,106 127,467,890 130,067,915
Restricted for:
Debt service 1,400,411 - 1,400,411 1,390,127
Park improvements 1,716,043 - 1,716,043 1,505,784
Tax increment purposes - - - 399,178
Other purposes 153,633 - 153,633 164,751
Unrestricted 10,028,355 10,126,315 20,154,670 20,738,020
Total net position $83,554,226 $67,338,421 $150,892,647 $154,265,775
Primary Government
Totals
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, 2017
With Comparative Totals For The Year Ended December 31, 2016
Program Revenues
Charges For
Functions/Programs Expenses Services
Primary government:
Governmental activities:
General government $3,230,517 $481,125
Public safety 3,969,540 1,289,794
Public works 8,161,048 329,129
Parks and recreation 3,227,236 891,390
Community development 918,962 35,582
Interest and fees on long-term debt 408,273 -
Total governmental activities 19,915,576 3,027,020
Business-type activities:
Water 3,866,810 2,921,936
Sewer 3,746,880 2,764,674
Surface water management 1,538,468 709,508
Total business-type activities 9,152,158 6,396,118
Total primary government $29,067,734 $9,423,138
The accompanying notes are an integral part of these financial statements.
34
Statement 2
Operating Capital
Grants and Grants and Governmental Business-Type
Contributions Contributions Activities Activities 2017 2016
$13,470 $ - ($2,735,922) $ - ($2,735,922) ($2,354,442)
435,476 - (2,244,270) - (2,244,270) (2,259,745)
425,316 2,425,333 (4,981,270) - (4,981,270) (3,437,685)
28,609 - (2,307,237) - (2,307,237) (2,286,642)
- - (883,380) - (883,380) (660,941)
- - (408,273) - (408,273) (493,746)
902,871 2,425,333 (13,560,352) 0 (13,560,352) (11,493,201)
8,778 880,395 - (55,701) (55,701) 449,685
- 491,485 - (490,721) (490,721) 1,070,394
36,331 306,715 - (485,914) (485,914) 706,046
45,109 1,678,595 0 (1,032,336) (1,032,336) 2,226,125
$947,980 $4,103,928 (13,560,352) (1,032,336) (14,592,688) (9,267,076)
General revenues:
General property taxes 10,826,116 - 10,826,116 10,643,917
Tax increment collections - - - 111,761
Grants and contributions not
restricted to specific programs 19,753 - 19,753 19,754
Unrestricted investment earnings 164,393 171,044 335,437 235,967
Gain on sale of capital assets 38,254 - 38,254 66,353
Transfers (204,422) 204,422 - -
Total general revenues and transfers 10,844,094 375,466 11,219,560 11,077,752
Change in net position (2,716,258) (656,870) (3,373,128) 1,810,676
Net position - January 1 86,270,484 67,995,291 154,265,775 152,455,099
Net position - December 31 $83,554,226 $67,338,421 $150,892,647 $154,265,775
Program Revenues
Net (Expense) Revenue and
Changes in Net Position
Primary Government
Totals
The accompanying notes are an integral part of these financial statements.
35
CITY OF CHANHASSEN, MINNESOTA
BALANCE SHEET Statement 3
GOVERNMENTAL FUNDS
December 31, 2017
With Comparative Totals For December 31, 2016
Other
601 Revolving Governmental
General Fund Assessment Fund Funds
Assets:2017 2016
Cash and investments $5,537,205 $2,294,494 $7,607,096 $15,438,795 $15,294,797
Cash with escrow agent - - 5,331,655 5,331,655 5,414,798
Accrued interest receivable 20,862 7,525 30,688 59,075 48,322
Due from other governmental units 41,893 - 38,018 79,911 245,027
Accounts receivable - net 64,786 43,136 131,710 239,632 256,296
Property taxes receivable 234,710 2,424 12,193 249,327 217,259
Prepaid items 81,032 - 990,723 1,071,755 25,832
Interfund loan receivable - 397,299 700,000 1,097,299 1,264,892
Contract for deed receivable - - - - 1,252,869
Special assessments receivable - 1,743,087 561,240 2,304,327 2,073,434
Total assets $5,980,488 $4,487,965 $15,403,323 $25,871,776 $26,093,526
Liabilities, Deferred Inflows of Resources,
and Fund Balances
Liabilities:
Accounts payable $210,045 $136,439 $205,665 $552,149 $338,127
Due to other governmental units 21,736 875 - 22,611 68,329
Salaries payable 189,417 - 6,573 195,990 196,988
Contracts payable - 399,137 202,082 601,219 428,628
Interfund loan payable - - 154,506 154,506 264,772
Unearned revenue 86,043 19,563 566,868 672,474 1,101,305
Total liabilities 507,241 556,014 1,135,694 2,198,949 2,398,149
Deferred inflows of resources:
Unavailable revenue 85,127 1,741,411 561,241 2,387,779 2,166,498
Fund balances:
Nonspendable 81,032 - 990,723 1,071,755 25,832
Restricted - - 8,458,576 8,458,576 8,673,981
Assigned - 2,190,540 4,411,595 6,602,135 7,806,958
Unassigned 5,307,088 - (154,506) 5,152,582 5,022,108
Total fund balances 5,388,120 2,190,540 13,706,388 21,285,048 21,528,879
Total liabilities, deferred inflows of resources,
and fund balances $5,980,488 $4,487,965 $15,403,323 $25,871,776 $26,093,526
Fund balance reported above $21,285,048 $21,528,879
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.78,118,880 81,182,242
Other long-term assets are not available to pay for current period expenditures and, therefore, are
reported as unavailabe revenue in the funds.2,387,779 2,166,498
Long-term liabilities, including pension related deferred outflows and inflows, are not due
and payable in the current period and, therefore, are not reported in the funds (see Note 1U).(18,237,481) (18,607,135)
Net position of governmental activities $83,554,226 $86,270,484
Total Governmental Funds
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
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2017
With Comparative Totals For The Year Ended December 31, 2016
General Fund
601 Revolving
Assessment
Fund
Other Govt'l
Funds
Revenues:2017 2016
General property taxes $8,494,192 $384,838 $1,941,652 $10,820,682 $10,640,315
Tax increment collections - - - - 111,761
Licenses and permits 1,215,051 - 426,089 1,641,140 1,653,858
Intergovernmental 415,918 1,050,665 683,292 2,149,875 974,917
Special assessments - 703,113 139,410 842,523 820,026
Charges for services 638,565 - 199,933 838,498 846,540
Fines and forfeits 128,394 - - 128,394 114,367
Investment earnings 36,120 40,187 88,086 164,393 156,202
Contributions and donations 28,609 - 45,125 73,734 60,802
Refunds and reimbursements 74,345 85,860 14,648 174,853 150,093
Other 206,770 - 57,344 264,114 276,067
Total revenues 11,237,964 2,264,663 3,595,579 17,098,206 15,804,948
Expenditures:
Current:
General government 2,052,473 - 818,794 2,871,267 2,479,271
Public safety 3,484,769 - 118,128 3,602,897 3,713,146
Public works 2,467,809 1,679,658 470,056 4,617,523 3,961,016
Parks and recreation 2,212,205 - 183,349 2,395,554 2,256,314
Community development 540,822 - 37,055 577,877 519,682
Capital outlay:
General government - - 30,838 30,838 62,713
Public safety - - 2,950 2,950 314,004
Public works - 2,567,810 27,202 2,595,012 459,142
Parks and recreation - - 376,992 376,992 1,153,763
Decertification of TIF district - - 362,123 362,123 139,594
Debt service:
Principal - - 670,000 670,000 1,795,000
Interest and paying agent fees - - 433,925 433,925 483,533
Total expenditures 10,758,078 4,247,468 3,531,412 18,536,958 17,337,178
Revenues over (under) expenditures 479,886 (1,982,805) 64,167 (1,438,752) (1,532,230)
Other financing sources (uses):
Sale of capital assets - - 19,286 19,286 90,318
Issuance of debt - - - - 4,805,000
Bonds premium - - - - 239,773
Transfers in - 1,750,386 173,771 1,924,157 1,347,883
Transfers out (404,478) - (344,044) (748,522) (1,044,114)
Total other financing sources (uses) (404,478) 1,750,386 (150,987) 1,194,921 5,438,860
Net change in fund balance 75,408 (232,419) (86,820) (243,831) 3,906,630
Fund balance - January 1 5,312,712 2,422,959 13,793,208 21,528,879 17,622,249
Fund balance - December 31 $5,388,120 $2,190,540 $13,706,388 $21,285,048 $21,528,879
Total Governmental Funds
The accompanying notes are an integral part of these financial statements.
37
CITY OF CHANHASSEN, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES,Statement 5
EXPENDITURES AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2017
With Comparative Totals For The Year Ended December 31, 2016
2017 2016
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)($243,831) $3,906,630
Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense:
Capital outlay 3,005,792 1,989,622
Depreciation expense (4,750,613) (4,911,126)
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 42,548 2,979,064
Transfer of capital assets to Enterprise Funds (1,380,057) (230,737)
Gain (loss) on disposal of capital assets 18,968 (49,189)
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 5,434 3,602
Change in deferred and delinquent special assessments 235,826 (467,814)
Change in other unavailable revenue (19,979)5,926
The issuance of long-term debt provides current financial resources to
governmental funds, while the repayment of the principal of long-term debt
consumes the current financial resources of governmental funds. Neither
transaction, however, has any effect on net position. Also, governmental funds
report the effects of bond premiums when the debt is first issued, whereas amounts
are deferred and amortized over the life of the debt in the statement of activities.
Issuance of bonds, including bond premium - (5,044,773)
Repayment of principal 670,000 1,795,000
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 58,361 5,701
Change in other post employment benefits payable (13,606)(3,447)
Change in accrued interest payable 9,667 (26,198)
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.(370,753) (415,652)
Change in net position of governmental activities (Statement 2)($2,716,258) ($447,406)
The accompanying notes are an integral part of these financial statements.
38
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF NET POSITION Statement 6
PROPRIETARY FUNDS
December 31, 2017
With Comparative Totals For December 31, 2016
Water Sewer
Surface Water
Management 2017 2016
Assets:
Current assets:
Cash and cash equivalents $6,591,398 $4,971,583 $1,259,125 $12,822,106 $13,491,288
Restricted cash 5,686,976 - - 5,686,976 3,724,395
Accrued interest receivable 27,688 22,651 6,687 57,026 46,896
Due from other governmental units 468 192 2,212 2,872 35,142
Accounts receivable - net 514,733 553,928 171,655 1,240,316 1,153,702
Interfund loan receivable 154,506 - - 154,506 264,772
Prepaid items 9,842 6,920 3,990 20,752 2,191
Water meter inventory 79,527 - - 79,527 51,113
Special assessments receivable 55,157 2,435 - 57,592 76,363
Connection charges receivable 9,546 2,149 - 11,695 29,393
Total current assets 13,129,841 5,559,858 1,443,669 20,133,368 18,875,255
Noncurrent assets:
Capital assets:
Nondepreciable 13,709,048 958,111 2,197,467 16,864,626 4,654,740
Depreciable 63,482,633 36,054,338 28,465,534 128,002,505 127,782,966
Total capital assets 77,191,681 37,012,449 30,663,001 144,867,131 132,437,706
Less: Allowance for depreciation (30,294,797) (23,759,646) (15,933,056) (69,987,499) (66,438,735)
Net capital assets 46,896,884 13,252,803 14,729,945 74,879,632 65,998,971
Total assets 60,026,725 18,812,661 16,173,614 95,013,000 84,874,226
Deferred outflows of resources related to pensions 92,355 75,691 47,410 215,456 469,375
Liabilities:
Current liabilities:
Accounts payable 143,835 18,816 57,615 220,266 184,923
Due to other governmental units 20,091 30,018 56,402 106,511 179,305
Salaries payable 21,897 13,327 9,433 44,657 39,924
Contracts payable 1,501,821 11,632 - 1,513,453 198,381
Accrued interest payable 268,504 1,988 - 270,492 92,573
Unearned revenue - - 725 725 850
Interfund loan payable - due within one year 192,517 - - 192,517 192,175
Compensated absences payable - due within one year 9,000 7,572 3,450 20,022 29,797
Bonds payable - due within one year 1,312,500 62,500 - 1,375,000 955,000
Total current liabilities 3,470,165 145,853 127,625 3,743,643 1,872,928
Noncurrent liabilities:
Interfund loan payable 904,782 - - 904,782 1,072,717
Compensated absences payable 78,221 65,811 29,987 174,019 150,803
Bonds payable 21,681,818 322,500 - 22,004,318 12,971,719
Net pension liability 377,314 309,235 193,691 880,240 1,131,472
Total noncurrent liabilities 23,042,135 697,546 223,678 23,963,359 15,326,711
Total liabilities 26,512,300 843,399 351,303 27,707,002 17,199,639
Deferred inflows of resources related to pensions 78,457 64,301 40,275 183,033 148,671
Net position:
Net investment in capital assets 29,229,358 13,252,803 14,729,945 57,212,106 57,478,975
Unrestricted 4,298,965 4,727,849 1,099,501 10,126,315 10,516,316
Total net position $33,528,323 $17,980,652 $15,829,446 $67,338,421 $67,995,291
Totals
The accompanying notes are an integral part of these financial statements.
39
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND Statement 7
CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For The Year Ended December 31, 2017
With Comparative Totals For The Year Ended December 31, 2016
Water Sewer
Surface Water
Management 2017 2016
Operating revenues:
Charges for services $2,824,929 $2,699,906 $693,552 $6,218,387 $5,844,688
Penalties and other 91,710 64,576 15,906 172,192 169,692
Total operating revenues 2,916,639 2,764,482 709,458 6,390,579 6,014,380
Operating expenses:
Personal services 778,844 467,003 272,452 1,518,299 1,362,844
Materials and supplies 298,098 39,730 18,586 356,414 317,182
Contractual services:
MCES - 1,564,754 - 1,564,754 1,445,540
Other 442,319 516,408 344,814 1,303,541 1,698,344
Repairs and maintenance 374,056 137,187 2,407 513,650 485,356
Depreciation 1,669,757 1,016,753 900,209 3,586,719 3,432,685
Total operating expenses 3,563,074 3,741,835 1,538,468 8,843,377 8,741,951
Operating income (loss)(646,435) (977,353) (829,010) (2,452,798) (2,727,571)
Nonoperating revenues (expenses):
Investment earnings 120,248 39,219 11,577 171,044 79,765
Intergovernmental 8,778 - 36,331 45,109 72,007
Refunds and reimbursements 5,297 192 50 5,539 6,986
Interest and fiscal charges (303,736)(5,045) - (308,781) (324,436)
Gain on disposal of capital assets - - - - 25,224
Total nonoperating revenues (expenses) (169,413)34,366 47,958 (87,089) (140,454)
Income before contributions and transfers (815,848) (942,987) (781,052) (2,539,887) (2,868,025)
Transfers in 21,063 - - 21,063 72,286
Transfers out (580,671) (223,074) (392,953) (1,196,698) (376,055)
Capital contributions:
Contributions of capital assets 709,699 361,286 890,577 1,961,562 3,886,130
Special assessments 2,582 - - 2,582 7,823
Connection charges 688,257 301,986 104,265 1,094,508 1,535,923
Total contributions and transfers 840,930 440,198 601,889 1,883,017 5,126,107
Change in net position 25,082 (502,789) (179,163) (656,870) 2,258,082
Net position - January 1 33,503,241 18,483,441 16,008,609 67,995,291 65,737,209
Net position - December 31 $33,528,323 $17,980,652 $15,829,446 $67,338,421 $67,995,291
Capital Transfers -
Contributions Net
Amounts reported above $3,058,652 ($1,175,635)
Amounts reported for business-type activities in the
statement of activities are different because:
Transfer in of capital assets from governmental activities (1,380,057) 1,380,057
Amounts reported on the statement of activities $1,678,595 $204,422
Totals
The accompanying notes are an integral part of these financial statements.
40
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF CASH FLOWS Statement 8
PROPRIETARY FUNDS
For The Year Ended December 31, 2017
With Comparative Totals For The Year Ended December 31, 2016
Water Sewer
Surface Water
Management 2017 2016
Cash flows from operating activities:
Receipts from customers and users $2,873,609 $2,735,844 $726,657 $6,336,110 $6,101,745
Payment to suppliers (1,164,412) (2,377,977) (280,396) (3,822,785) (3,754,032)
Payment to employees (749,324) (444,679) (269,073) (1,463,076) (1,266,249)
Miscellaneous revenue 14,075 192 36,381 50,648 78,993
Net cash flows provided by (used in) operating activities 973,948 (86,620) 213,569 1,100,897 1,160,457
Cash flows from noncapital financing activities:
Transfers in 21,063 - - 21,063 34,203
Interfund loan receivable - collections 110,266 - - 110,266 104,025
Interfund loan payable - (payments)(192,176) - - (192,176) (163,446)
Net cash flows provided by (used in)
noncapital financing activities (60,847)0 0 (60,847) (363,190)
Cash flows from capital and related financing activities:
Acquisition of capital assets (8,663,639) (24,082) (55,648) (8,743,369) (1,435,967)
Connection charges 702,984 304,957 104,265 1,112,206 1,545,274
Special assessment collections 20,744 609 - 21,353 29,605
Transfers out (580,671) (223,074) (392,953) (1,196,698) (337,972)
Proceeds from issuance of bonds 10,462,491 - - 10,462,491 5,500,545
Principal paid on bonds (895,000) (60,000) - (955,000) (805,000)
Interest and fiscal charges (603,253) (5,295) - (608,548) (353,137)
Net cash flows provided by (used in) capital
and related financing activities 443,656 (6,885) (344,336) 92,435 4,143,348
Cash flows from investing activities:
Investment earnings 117,350 33,960 9,604 160,914 108,457
Net increase (decrease) in cash and cash equivalents 1,474,107 (59,545) (121,163) 1,293,399 5,387,044
Cash and cash equivalents - January 1 10,804,267 5,031,128 1,380,288 17,215,683 11,828,639
Cash and cash equivalents - December 31 $12,278,374 $4,971,583 $1,259,125 $18,509,082 $17,215,683
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) ($646,435) ($977,353) ($829,010) ($2,452,798) ($2,727,571)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Miscellaneous revenue (expense)14,075 192 36,381 50,648 78,993
Depreciation 1,669,757 1,016,753 900,209 3,586,719 3,432,685
Changes in assets and liabilities, deferred outflows and inflows:
Decrease (increase) in receivables (43,030) (28,638) 17,324 (54,344) 86,515
Decrease (increase) in prepaid items (8,819) (6,092) (3,650) (18,561) 11,918
Decrease (increase) in inventory (28,414) - - (28,414) (15,903)
Decrease (increase) in deferred outflows of resources 108,842 89,204 55,873 253,919 (366,072)
Increase (decrease) in payables 933 (104,498) 84,163 (19,402) 222,610
Increase (decrease) in net pension liability (107,691) (88,259) (55,282) (251,232) 378,938
Increase (decrease) in deferred inflows of resources 14,730 12,071 7,561 34,362 58,344
Total adjustments 1,620,383 890,733 1,042,579 3,553,695 3,888,028
Net cash provided by operating activities $973,948 ($86,620) $213,569 $1,100,897 $1,160,457
Noncash investing, capital and financing activities:
Capital assets in the amount of $709,699 and $1,268,976 were contributed to the Water Fund in 2017 and 2016, respectively.
Capital assets in the amount of $361,286 and $1,362,245 were contributed to the Sewer Fund in 2017 and 2016, respectively.
Capital assets in the amount of $890,577 and $1,254,909 were contributed to the Surface Water Fund in 2017 and 2016, respectively.
Capital assets with a net book value of $38,083 were transferred from the Sewer Fund to the Water fund in 2016.
Totals
The accompanying notes are an integral part of these financial statements.
41
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF NET POSITION Statement 9
FIDUCIARY FUNDS
December 31, 2017
With Comparative Totals For December 31, 2016
2017 2016
Assets:
Cash and investments $2,603,979 $1,639,041
Accounts receivable - 10,905
Total assets $2,603,979 $1,649,946
Liabilities:
Accounts payable $ - $10,905
Escrow deposits payable 2,603,979 1,639,041
Total liabilities $2,603,979 $1,649,946
Agency Funds
The accompanying notes are an integral part of these financial statements.
42
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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 the 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, 2017
The statement of activities demonstrates the degree to which the direct expenses of a given function or
business-type activity, are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or business-type activity. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided
by a given function or business-type activity and 2) grants and contributions that are restricted to meeting
the operational or capital requirements of a particular function or business-type activity. Taxes and other
items not included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds,
even though the latter are excluded from the government-wide financial statements. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are
recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants
and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider
have been met. The City’s only fiduciary funds are agency funds. Agency funds are custodial in nature
(assets equal liabilities) and do not involve measurement of results of operations.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
considers all revenues, except reimbursement grants, to be available if they are collected within 60 days of
the end of the current fiscal period. Reimbursement grants are considered available if they are collected
within one year of the end of the current fiscal period. Expenditures generally are recorded when a liability
is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures
related to compensated absences and claims and judgments, are recorded only when payment is due.
Property taxes, special assessments, intergovernmental revenues, charges for services and interest
associated with the current fiscal period are all considered to be susceptible to accrual and so have been
recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due
within the current fiscal period is considered to be susceptible to accrual as revenue of the current period.
All other revenue items are considered to be measurable and available only when cash is received by the
City.
The City reports the following major governmental funds:
General Fund is the City’s primary operating fund. It accounts for all financial resources of the
general government, except those required to be accounted for in another fund.
Revolving Assessment Fund (601) accounts for the City’s annual street re-construction program. The
individual property owner pays a portion of the cost of the annual project with assessments and the
City funds its portion with the reserves created in this fund and an annual tax levy.
44
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
The City reports the following major proprietary funds:
The Water Fund accounts for the water service charges which are used to finance the water system
operating expenses.
The Sewer Fund accounts for the sewer service charges which are used to finance the sanitary sewer
system operating expenses.
The Surface Water Management Fund accounts for the surface water charges which are used to
finance the surface water system operating expenses.
Additionally, the City reports the following fund type:
Agency funds account for the assets of various escrow deposits and the Moon Valley Restoration
Funds held by the City in a trustee capacity or as an agent.
As a general rule the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are transactions that would be treated as revenues, expenditures
or expenses if they involved external organizations, such as buying goods and services or payments in lieu
of taxes, are similarly treated when they involve other funds of the City. Elimination of these charges
would distort the direct costs and program revenues reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions,
including special assessments. Internally dedicated resources are reported as general revenues rather than
as program revenues. Likewise, general revenues include all taxes.
Proprietary Funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the
water, sewer, and surface water management enterprise funds are charges to customers for sales and
services. Operating expenses for enterprise funds include the cost of sales and services, administrative
expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are
reported as nonoperating revenues and expenses.
D. BUDGETS
Budgets are adopted on a basis consistent with accounting principles generally accepted in the United
States of America. Annual appropriated budgets are adopted for the General Fund and for the
Contribution, Cemetery, and CATV Special Revenue Funds.
Budgeted amounts are reported as originally adopted, or as amended by the City Council. There were no
budget amendments during 2017. 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.
45
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
E. LEGAL COMPLIANCE - BUDGETS
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1. The City Manager submits to the City Council a proposed operating budget for the fiscal year
commencing the following January 1. The operating budget includes proposed expenditures and
the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution.
4. Management may authorize transfer of budgeted amounts between departments within any fund.
All budget amendments between funds must be approved by the City Council. The legal level of
budgetary control is at the fund level. Budgetary monitoring, by departments or divisions and by
category, is required by City policy.
5. Formal budgetary integration is employed as a management control device during the year for the
General Fund and for the Contribution, Cemetery and CATV Special Revenue Funds. Formal
budgetary integration is not employed for Debt Service Funds because effective budgetary control
is alternatively achieved through general obligation bond indenture provisions. Budgetary control
for Capital Projects Funds is accomplished through the use of project controls.
During 2017, the Contribution Special Revenue Fund had expenditures of $53,981, which exceeded
budgeted expenditures of $43,500 by $10,481.
F. CASH AND INVESTMENTS
Cash and investment balances from all funds are pooled and invested to the extent available in authorized
investments. Investments are stated at fair value. Investment income is accrued at the balance sheet date
and allocated to individual funds on the basis of the fund's equity in the cash and investment pool.
For purposes of the statement of cash flows, the Proprietary Funds consider all highly liquid investments
with a maturity of three months or less when purchased to be cash equivalents. All of the cash and
investments allocated to the Proprietary Fund types have original maturities of 90 days or less. Therefore,
the entire balance in such fund types is considered cash equivalents.
G. RECEIVABLES
Property taxes and special assessment receivables have been reported net of estimated uncollectible
accounts (See Note 1 H and I). Because utility bills are considered liens on property, no estimated
uncollectible amounts are established. Uncollectible amounts are not material for other receivables and
have not been reported.
H. PROPERTY TAX REVENUE RECOGNITION
The City Council annually adopts a tax levy and certifies it to the County in December (levy/assessment
date) of each year for collection in the following year. The County is responsible for billing and collecting
all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes
46
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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
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.
47
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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.
Capital assets are defined by the City as assets with an initial, individual cost of more than $10,000 and an
estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated
historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the
date of donation.
In the case of the initial capitalization of general infrastructure assets, the City chose to include all such
items regardless of their acquisition date amount. These assets are reported at historical or estimated
historical cost, using the 1987 base highway construction price trend, when historical costs were
unavailable.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business-type activities is included as part of the
capitalized value of the assets constructed. For the year ended December 31, 2017, $434,000 of interest
was capitalized in connection with construction in progress.
48
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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.
In the fund financial statements, governmental fund types recognize bond premiums and discounts during
the current period. The face amount of debt issued is reported as other financing sources. Premiums
received on debt issuances are reported as other financing sources while discounts on debt issuances are
reported as other financing uses.
O. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element represents a consumption of net
position that applies to future periods and so will not be recognized as an outflow of resources
(expense/expenditure) until then. The government has one item that qualifies for reporting in the category.
It is the pension related deferred outflows of resources reported in the government-wide Statement of Net
Position and the proprietary funds Statement of Net Position.
In addition to liabilities, the statement of financial position reports a separate section for deferred inflows
of resources. This separate financial statement element represents an acquisition of net position that
applies to future periods, and therefore, will not be recognized as an inflow of resources (revenue) until
49
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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.
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
50
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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, 2016, 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.
SINGLE EMPLOYER PLAN
Pensions. For purposes of measuring the net pension liability (asset), deferred outflows of resources and
deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net
position of the Chanhassen Fire Department Relief Association (Relief) and additions to/deductions from
the Relief’s fiduciary net position have been determined on the same basis as they were reported by the
Relief. For this purpose, benefit payments are recognized when due and payable in accordance with the
benefit terms. Investments are reported at fair value.
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CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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 ($18,071,295) difference are as follows:
Bonds payable ($12,420,000)
Unamortized bond premium (207,803)
Accrued interest payable (175,686)
Compensated absences payable (705,202)
Other post employment benefits payable (47,656)
Net pension liability (4,855,214)
Deferred outflows of resources related to pensions 1,546,919
Deferred inflows of resources related to pensions (1,372,839)
Net adjustment to decrease fund balances - total governmental
funds to arrive at net position - governmental activities ($18,237,481)
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, 2017, the bank balance of the City’s deposits was insured by the FDIC or covered by
pledged collateral held in the City’s name.
Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City Treasurer
or in a financial institution other than that furnishing the collateral. Authorized collateral includes the
following:
a) United States government treasury bills, treasury notes, treasury bonds;
b) Issues of United States government agencies and instrumentalities as quoted by a recognized industry
quotation service available to the government entity;
c) General obligation securities of any state or local government with taxing powers which is rated “A”
or better by a national bond rating service, or revenue obligation securities of any state or local
government with taxing powers which is rated “AA” or better by a national bond rating service;
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CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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, 2017, the carrying amount of the City’s deposits with financial institutions was
$3,534,333.
B. INVESTMENTS
Minnesota Statutes authorize the City to invest in the following:
a) Direct obligations or obligations guaranteed by the United States or its agencies, its instrumentalities,
or organizations created by an act of congress, excluding mortgage-backed securities defined as high
risk.
b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and
whose only investments are in securities described in (a) above, general obligation tax-exempt
securities, or repurchase or reverse repurchase agreements.
c) State and local securities as follows:
1) any security which is a general obligation of any state or local government with taxing powers
which is rated “A” or better by a national bond rating service;
2) any security which is a revenue obligation of any state or local government with taxing powers
which is rated “AA” or better by a national bond rating service; and
3) a general obligation of the Minnesota Housing Finance Agency which is a moral obligation of the
State of Minnesota and is rated “A” or better by a national bond rating agency.
d) Bankers’ acceptance of United States banks.
e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest
quality, and maturing in 270 days or less.
f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve
System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government
securities to the Federal Reserve Bank of New York; certain Minnesota securities broker-dealers; or, a
bank qualified as a depositor.
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.
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CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
As of December 31, 2017, the City had the following investments and maturities:
Fair Less
Investment Type Rating Value Than 1 1-5 6-10
Money Market NR $3,286,590 $3,286,590 $ - $ -
Brokered Certificates of Deposit NR 8,148,720 4,688,972 3,459,748 -
Municipal Bonds (1)8,800,476 2,141,616 5,086,759 1,572,101
Federal National Mortgage Assn. Notes Aaa 3,145,022 529,746 2,615,276 -
Federal Home Loan Mortgage Corp. Notes Aaa 2,830,246 1,796,798 536,329 497,119
Federal Home Loan Bank Notes Aaa 1,325,024 - 983,322 341,702
Federal Farm Credit Bank Aaa 994,476 994,476 - -
Resolution Funding Corp. Strip Bonds NR 1,346,625 - 1,346,625 -
Private Export Funding Corp. Bonds Aaa 645,954 - 645,954 -
US Treasury Notes Aaa 2,493,525 2,493,525 - -
Total $33,016,658 $15,931,723 $14,674,013 $2,410,922
(1) $3,113,949 are rated Aaa, $1,965,696 are rated Aa1,Total investments $33,016,658
$2,898,196 are rated Aa2, and $822,635 are rated Aa3.Deposits 3,534,533
Cash with escrow agent 5,331,655
NR - Not Rated Petty cash 665
Total cash and investments $41,883,511
Classifications above are by maturity date. Some investments listed above have call dates that occur in less than one year.
Investment Maturities (in Years)
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair
value of the asset. The hierarchy has three levels. Level 1 investments are valued using inputs that are
based on quoted prices in active markets for identical assets. Level 2 investments are valued using inputs
that are based on quoted prices for similar assets or inputs that are observable, either directly or indirectly.
Level 3 investments are valued using inputs that are unobservable.
The City has the following recurring fair value measurements as of December 31, 2017:
Investment Type 12/31/2017 Level 1 Level 2 Level 3
Investments at fair value:
Brokered Certificates of Deposit $8,148,720 $ - $8,148,720 $ -
Municipal Bonds 8,800,476 - 8,800,476 -
Federal National Mortgage Assn. Notes 3,145,022 - 3,145,022 -
Federal Home Loan Mortgage Corp. Notes 2,830,246 - 2,830,246 -
Federal Home Loan Bank Notes 1,325,024 - 1,325,024 -
Federal Farm Credit Bank 994,476 - 994,476 -
US Treasury Notes 2,493,525 - 2,493,525 -
Resolution Funding Corp. Strip Bonds 1,346,625 - 1,346,625 -
Private Export Funding Corp. Bonds 645,954 - 645,954 -
Total/subtotal 29,730,068 $0 $29,730,068 $0
Investments not categorized:
Money Market 3,286,590
Total $33,016,658
Fair Value Measurement Using
54
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
Cash and investments are presented in the financial statements as follows:
Cash and investments:
Governmental and business-type (Statement 1)$28,260,901
Fiduciary (Statement 9)2,603,979
Cash with escrow agent (Statement 1)5,331,655
Restricted cash (Statement 1)5,686,976
Total $41,883,511
C. INVESTMENT RISKS
Custodial credit risk – investments – For investments in securities, custodial credit risk is the risk that in
the event of failure of the counterparty to a transaction, the City will not be able to recover the value of its
investment securities that are in the possession of an outside party. Investments in investment pools and
money markets are not evidenced by securities that exist in physical or book entry form, and therefore are
not subject to custodial credit risk disclosures. The City’s investment policy requires the City’s security
broker/dealers to provide its audited financial statements, proof of NASD certification, proof of state
registration, and certification of having read, understood and agreed to comply with the City’s investment
policy. Investments in securities are held by the City’s broker-dealer of which $500,000 per broker is
insured through SIPC. Each broker-dealer has provided additional protection by providing additional
insurance. This insurance is subject to aggregate limits applied to all of the broker-dealer’s accounts.
Interest rate risk – Interest rate risk is the risk that changes in interest rates of debt investments could
adversely affect the fair value of an investment. The City’s investment policy requires the City to diversify
its investment portfolio to eliminate the risk of loss resulting from over concentration of assets in a specific
maturity. The policy also states the City’s investment portfolio will remain sufficiently liquid to enable the
City to meet all operating requirements which might be reasonable, i.e., not investing in maturities longer
than seven years.
Credit risk – Credit risk is the risk that an issuer or other counterparty to an investment will be unable to
fulfill its obligation to the holder of the investment. State law limits investments to commercial paper to
those rated in the highest quality category by at least two nationally recognized rating agencies; in any
security of the State of Minnesota or any of its municipalities which is rated “A” or better by a national
bond rating service for general obligation and rated “AA” or better for a revenue obligation; a general
obligation of the Minnesota Housing Finance Agency to those rated “A” or better by a national bond rating
agency; mutual funds or money market funds whose investments are restricted to securities described in
MS 118A.04. The City’s investment policy does not place further restrictions on investment options.
Concentration of credit risk – Concentration of credit risk is the risk of loss that may be attributed to the
magnitude of a government’s investment in a single issuer. The City’s investment policy states
investments shall be diversified by limiting investments to avoid over concentration in securities from a
specific issuer or business sector (excluding U.S. Treasury securities). Investments in a single issuer
exceeding 5% of the City’s overall investment portfolio are in various holdings as follows:
Federal National Mortgage Association notes 10%
Federal Home Loan Mortgage Corporation notes 9%
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CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
Note 3 RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2017 are as follows:
Interfund Delinquent Special
Loan Property Assessments
Receivable Taxes Receivable Total
Major Funds:
General $ - $31,750 $ - $31,750
Revolving Assessment Fund 204,782 - 1,460,795 1,665,577
Water 37,624 - 51,695 89,319
Sewer - - 2,663 2,663
Nonmajor Funds 700,000 - 445,932 1,145,932
$942,406 $31,750 $1,961,085 $2,935,241
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, 2017, the various
components of unavailable revenue were as follows:
Revolving
General Assessment Nonmajor
Fund Fund Funds Total
Delinquent property taxes receivable $85,127 $ - $ - $85,127
Special assessments not yet due - 1,741,411 561,241 2,302,652
Total unavailable revenue $85,127 $1,741,411 $561,241 $2,387,779
Major Funds
56
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
Note 5 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2017 was as follows:
Beginning Ending
Primary Government Balance Increase Decrease Balance
Governmental activities:
Capital assets not being depreciated:
Land $19,801,717 $1,001 $ - $19,802,718
Construction in progress 1,618,180 1,274,915 (1,043,815) 1,849,280
Permanent easements 1,498,994 67,468 - 1,566,462
Total capital assets not being depreciated 22,918,891 1,343,384 (1,043,815) 23,218,460
Capital assets being depreciated:
Buildings and structures 23,188,737 121,646 - 23,310,383
Machinery and equipment 8,748,196 175,090 (184,755) 8,738,531
Other improvements 7,501,186 1,133,761 (7,431) 8,627,516
Infrastructure 118,353,094 52,317 (41,520) 118,363,891
Total capital assets being depreciated 157,791,213 1,482,814 (233,706) 159,040,321
Less accumulated depreciation for:
Buildings and structures 7,834,495 567,566 - 8,402,061
Machinery and equipment 5,912,938 477,489 (92,297) 6,298,130
Other improvements 3,564,572 296,596 (4,757) 3,856,411
Infrastructure 82,215,857 3,408,962 (41,520) 85,583,299
Total accumulated depreciation 99,527,862 4,750,613 (138,574) 104,139,901
Governmental activities capital assets - net $81,182,242 ($1,924,415) ($1,138,947) $78,118,880
Beginning Ending
Primary Government Balance Increase Decrease Balance
Business-type activities:
Capital assets not being depreciated:
Land $2,085,435 $9,000 $ - $2,094,435
Construction in progress 1,257,057 11,785,659 (153,330) 12,889,386
Permanent easements 1,312,248 568,557 - 1,880,805
Total capital assets not being depreciated 4,654,740 12,363,216 (153,330) 16,864,626
Capital assets being depreciated:
Buildings and structures 12,445,429 - - 12,445,429
Machinery and equipment 1,804,519 50,074 (22,365) 1,832,228
Other improvements 113,533,018 207,421 (15,591) 113,724,848
Total capital assets being depreciated 127,782,966 257,495 (37,956) 128,002,505
Less accumulated depreciation for:
Buildings and structures 2,240,914 248,917 - 2,489,831
Machinery and equipment 883,315 120,071 (22,364) 981,022
Other improvements 63,314,506 3,217,731 (15,591) 66,516,646
Total accumulated depreciation 66,438,735 3,586,719 (37,955) 69,987,499
Business-type activities capital assets - net 65,998,971 9,033,992 (153,331) 74,879,632
Total capital assets - net $147,181,213 $7,109,577 ($1,292,278) $152,998,512
57
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities:
General government $308,660
Public safety 133,975
Public works 3,492,241
Parks and recreation 815,737
Total depreciation expense - governmental activities $4,750,613
Business-type activities:
Water $1,669,757
Sewer 1,016,753
Surface water management 900,209
Total depreciation expense - business-type activities $3,586,719
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, 2017, the governmental activities long-term debt of the City consisted of the following:
Final Authorized
Issue Maturity Interest And Outstanding
Date Date Rate Issued 12/31/17
General Long-Term Debt:
General Obligation Bonds:
G.O. Capital Improvement Plan Bonds, Series 2008A 11/18/08 2/1/2018 4.00% - 4.60% $7,550,000 $5,615,000
G.O. Library Refunding Bonds, Series 2010A 1/27/10 2/1/2022 2.00% - 3.10% 3,660,000 2,000,000
G.O. Bonds, Series 2016A 3/3/2016 2/1/2030 2.00% - 3.00% 4,805,000 4,805,000
Bond premium 239,773 207,803
Total general obligation bonds 16,254,773 12,627,803
Compensated absences payable N/A 705,202
Total City indebtedness - governmental activities $16,254,773 $13,333,005
58
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
BUSINESS-TYPE ACTIVITIES
As of December 31, 2017, 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 12/31/17
G.O. Revenue Bonds:
Water Revenue Bonds, Series 2011A 10/6/2011 2/1/2022 0.30% - 2.15% $5,920,000 $3,080,000
Water Revenue Bonds, Series 2011B 10/6/2011 2/1/2025 2.00% - 3.00% 3,720,000 3,660,000
Water and Sewer Revenue Bonds, Series 2012A 11/15/2012 2/1/2023 1.00% - 1.55% 1,245,000 770,000
Water Revenue Bonds, Series 2016A 3/3/2016 2/1/2026 2.00% - 3.00% 1,565,000 1,425,000
Water Revenue Bonds, Series 2016B 12/29/2016 2/1/2042 3.50% - 4.00% 3,630,000 3,630,000
Water Revenue Bonds, Series 2017A 2/1/2017 2/1/2038 2.00% - 4.00% 10,000,000 10,000,000
Bond premium 939,339 814,318
Total G.O. revenue bonds 27,019,339 23,379,318
Compensated absences payable N/A 194,041
Total City indebtedness - business-type activities $27,019,339 $23,573,359
GOVERNMENTAL ACTIVITIES
Annual debt service requirements to maturity for the governmental activities long-term debt are as follows:
Year Ending Governmental Activities
December 31, Principal Interest
2018 $5,985,000 $294,464
2019 720,000 156,480
2020 745,000 134,505
2021 770,000 111,780
2022 800,000 88,015
2023 385,000 70,025
2024 395,000 58,325
2025 410,000 48,300
2026 420,000 40,000
2027 430,000 31,500
2028 440,000 22,800
2029 455,000 13,850
2030 465,000 4,650
Total $12,420,000 $1,074,694
General Obligation Bonds
It is not practicable to determine the specific year for payment of long-term accrued compensated absences.
59
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
BUSINESS-TYPE ACTIVITIES
Annual debt service requirements to maturity for the business-type long-term debt are as follows:
G.O. Revenue Bonds
Year Ending Business-Type Activities
December 31, Principal Interest
2018 $1,375,000 $637,566
2019 1,585,000 611,391
2020 1,610,000 578,817
2021 1,665,000 541,334
2022 1,235,000 506,322
2023 995,000 476,034
2024 880,000 447,288
2025 910,000 419,663
2026 345,000 400,888
2027 595,000 386,813
2028 615,000 368,663
2029 635,000 349,913
2030 655,000 330,563
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 $22,565,000 $8,204,890
It is not practicable to determine the specific year for payment of long-term accrued compensated absences.
60
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2017 was as follows:
Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Governmental activities:
General obligation bonds $13,090,000 $ - ($670,000) $12,420,000 $5,985,000
Bond premium 223,788 - (15,985) 207,803 -
Compensated absences 763,563 553,222 (611,583) 705,202 72,769
Total governmental activity
long-term liabilities $14,077,351 $553,222 ($1,297,568) $13,333,005 $6,057,769
Business-type activities:
G.O. revenue bonds $13,520,000 $10,000,000 ($955,000) $22,565,000 $1,375,000
Bond premium 406,719 462,491 (54,892)814,318 -
Compensated absences 180,600 141,890 (128,449) 194,041 20,022
Total business-type activity
long-term liabilities $14,107,319 $10,604,381 ($1,138,341) $23,573,359 $1,395,022
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, 2017 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, 2017 is $5,349,214.
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.
61
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
CROSSOVER REFUNDING
Series 2016A Bonds
On March 3, 2016, the City issued $6,370,000 in General Obligation Bonds, Series 2016A with an average interest
rate of 2.35%. Bonds in the amount of $1,565,000 were issued to provide funding for water system improvements.
The remaining $4,805,000 of bonds, along with $475,000 of cash on hand, will be used to advance refund
$5,290,000 of outstanding 2008A Series Bonds with an average interest rate of 4.42%. The net proceeds were used
to purchase U.S. government securities in the amount of $5,448,832. Those securities were deposited in an
irrevocable trust with an escrow agent to provide for the interest on the refunding bonds through the crossover date
of February 1, 2018 and called principal on the refunded bonds (2019 through 2030 maturities) on February 1,
2018.
The City advance refunded the 2019 through 2030 maturities of the 2008A Series Bonds to reduce its total debt
service payments during the years 2017 through 2030 by $928,572 and to obtain an economic gain (difference
between the present value of the debt service payments on the old and new debt) of $757,654.
The City is responsible for the debt service of the refunded bonds through February 1, 2018 and the debt service of
the refunding bonds beginning August 1, 2018. The debt service of the refunding bonds due prior to August 1,
2018 is payable from the escrow account. Assets held with the escrow agent total $5,331,655 at December 31,
2017.
The financial statements present each bond issue and the escrow account assets pursuant to GASB Statement No. 7.
The effect on the financial statements is to report greater debt than, in substance, the City will be responsible for
paying.
The refunding portion of the 2016A bonds are crossover refunding bonds whereby the City and the escrow agent
are responsible for debt service payments as follows:
Year Ending Refunded Refunding Escrow
December 31, Bonds Total Bonds Total Account City
2018 $5,736,634 $117,950 $5,348,975 $505,609
2019 - 443,000 - 443,000
2020 - 447,875 - 447,875
2021 - 452,300 - 452,300
2022 - 451,350 - 451,350
2023 - 455,025 - 455,025
2024 - 453,325 - 453,325
2025 - 458,300 - 458,300
2026 - 460,000 - 460,000
2027 - 461,500 - 461,500
2028 - 462,800 - 462,800
2029 - 468,850 - 468,850
2030 - 469,650 - 469,650
Total $5,736,634 $5,601,925 $5,348,975 $5,989,584
Debt Service Commitment
62
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
REVENUE PLEDGED
Future revenue pledged for the payment of long-term debt is as follows:
Percent of Debt service Remaining Principal Pledged
Use of Total as a % of Term of Principal and Interest Revenue
Bond Issue Proceeds Type Debt Service net revenues Pledge and Interest Paid Received
2008A CIP bonds Public Works Facility construction Property taxes 100% n/a 2009 - 2029 $5,989,584 $559,468 $596,700
2010A Library Refunding bonds Library construction Property taxes 100% n/a 2012 - 2021 $2,156,135 $425,830 $451,592
- refunded the 2002A Library bonds
2011A Water Revenue bonds Water infrastructure improvements Water usage charges 100% 24.8% 2012 - 2021 $3,210,351 $722,060 $2,916,639
- refunded the 2005B bonds
2011B Water Revenue bonds Water infrastructure improvements Water usage charges 100% 4.6% 2012 - 2024 $4,158,300 $135,100 $2,916,639
- refunded the 2005B bonds
2012A Water & Sewer Revenue Purchase of meter reading equipment Water and sewer 100% 2.3% 2013 - 2022 $801,708 $130,140 $5,681,121
bonds usage charges
2016A Water Revenue bonds Water infrastructure improvements Water usage charges 100% 6.2% 2016 - 2025 $1,597,400 $181,400 $2,916,639
2016B Water Revenue bonds West Water Treatment Plant Water usage charges 100% n/a 2017 - 2041 $6,811,079 $81,407 $2,916,639
2017A Water Revenue bonds West Water Treatment Plant Water usage charges 100% n/a 2018 - 2038 $14,191,050 $151,950 $2,916,639
Revenue Pledged Current Year
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,
2017.
Future scheduled tax levies for all bonds outstanding at December 31, 2017 totaled $7,663,816.
63
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
Note 8 DEFINED BENEFIT PENSION PLANS
A. PLAN DESCRIPTION
The City participates in the following cost-sharing multiple-employer defined benefit pension plans
administered by PERA. PERA’s defined benefit pension plans are established and administered in accordance
with Minnesota Statutes, Chapters 353 and 356. PERA’s defined benefit pension plans are tax qualified plans
under Section 401(a) of the Internal Revenue Code.
1. General Employees Retirement Fund (GERF)
All full-time (with the exception of employees covered by PEPFF) and certain part-time employees of the
City are covered by the GERF. GERF members belong to either the Coordinated Plan or the Basic Plan.
Coordinated Plan members are covered by Social Security and Basic Plan members are not. The Basic
Plan was closed to new members in 1967. The City no longer has any employees who are members of the
Basic Plan. All new members must participate in the Coordinated Plan.
2. Public Employees Police and Fire Fund (PEPFF)
The PEPFF, originally established for police officers and firefighters not covered by a local relief
association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the
PEPFF also covers police officers and firefighters belonging to a local relief association that elected to
merge with and transfer assets and administration to PERA.
B. BENEFITS PROVIDED
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and
can only be modified by the state legislature.
Benefit increases are provided to benefit recipients each January. Increases are related to the funding ratio of
the plan. Members in plans that are at least 90% funded for two consecutive years are given 2.5% increases.
Members in plans that have not exceeded 90% funded, or have fallen below 80%, are given 1% increases.
The benefit provisions stated in the following paragraphs of this section are current provisions and apply to
active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them
yet are bound by the provisions in effect at the time they last terminated their public service.
1. GERF Benefits
Benefits are based on a member’s highest average salary for any five successive years of allowable service,
age, and years of credit at termination of service. Two methods are used to compute benefits for PERA's
members. The retiring member receives the higher of a step-rate benefit accrual formula (Method 1) or a
level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a member is 1.2% of
average salary for each of the first ten years and 1.7% for each remaining year. Under Method 2, the
annuity accrual rate is 1.7% of average salary for each year of service. For members hired prior to July 1,
1989, a full annuity is available when age plus years of service equal 90 and normal retirement age is 65.
For members hired on or after July 1, 1989, normal retirement age is the age for unreduced Social Security
benefits capped at 66.
64
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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.
C. CONTRIBUTIONS
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can
only be modified by the state legislature.
1. GERF Contributions
Coordinated Plan members were required to contribute 6.5% of their annual covered salary in calendar
year 2017. The City was required to contribute 7.5% for Coordinated Plan members in calendar year
2017. The City’s contributions to the GERF for the year ended December 31, 2017 were $371,824. The
City’s contributions were equal to the required contributions as set by state statute.
2. PEPFF Contributions
Plan members were required to contribute 10.8% of their annual covered salary in calendar year 2017. The
City was required to contribute 16.2% of pay for PEPFF members in calendar year 2017. The City’s
contributions to the PEPFF for the year ended December 31, 2017 were $32,612. The City’s contributions
were equal to the required contributions as set by state statute.
D. PENSION COSTS
1. GERF Pension Costs
At December 31, 2017, the City reported a liability of $4,794,334 for its proportionate share of the GERF’s
net pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s
contribution of $6 million to the fund in 2017. 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
$60,265. The net pension liability was measured as of June 30, 2017, 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, 2016 through June 30, 2017, relative to
the total employer contributions received from all of PERA’s participating employers. At June 30, 2017,
the City’s proportion was 0.0751%, which was a decrease of 0.0008% from its proportion measured as of
June 30, 2016.
For the year ended December 31, 2017, the City recognized pension expense of $573,623 for its
proportionate share of the GERF’s pension expense. In addition, the City recognized an additional $1,741
65
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution
of $6 million to the GERF.
At December 31, 2017, the City reported its proportionate share of the GERF’s deferred outflows of
resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual economic experience $158,007 $308,082
Changes in actuarial assumptions 795,963 480,632
Difference between projected and
actual investment earnings 30,311 -
Changes in proportion - 208,203
Contributions paid to PERA
subsequent to the measurement date 189,228 -
Total $1,173,509 $996,917
$189,228 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, 2018. 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
2018 $66,581
2019 226,767
2020 (102,473)
2021 (203,511)
2022 -
Thereafter -
2. PEPFF Pension Costs
At December 31, 2017, the City reported a liability of $256,523 for its proportionate share of the PEPFF’s
net pension liability. The net pension liability was measured as of June 30, 2017, 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, 2016 through June 30, 2017,
relative to the total employer contributions received from all of PERA’s participating employers. At June
30, 2017, the City’s proportion was 0.0190%, which was equal to its proportion measured as of June 30,
2016. For the year ended December 31, 2017, the City also recognized $1,710 as revenue (and an
offsetting reduction of net pension liability) for its proportionate share of the State of Minnesota’s
contributions to the PEPFF. Legislation passed in 2013 required the State of Minnesota to begin
contributing $9 million to the PEPFF each year, starting in fiscal year 2014.
66
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
For the year ended December 31, 2017, the City recognized pension expense of $74,139 for its
proportionate share of the PEPFF’s pension expense.
At December 31, 2017, the City reported its proportionate share of the PEPFF’s deferred outflows of
resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual economic experience $5,905 $68,580
Changes in actuarial assumptions 335,711 364,198
Difference between projected and
actual investment earnings 3,523 -
Changes in proportion 37,802 7,484
Contributions paid to PERA
subsequent to the measurement date 16,500 -
Total $399,441 $440,262
$16,500 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, 2018. 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
2018 $15,196
2019 15,194
2020 5,791
2021 (21,845)
2022 (71,657)
Thereafter -
E. ACTUARIAL ASSUMPTIONS
The total pension liability in the June 30, 2017 actuarial valuation was determined using the following
actuarial assumptions:
Inflation 2.50% per year
Active Member Payroll Growth 3.25% per year
Investment Rate of Return 7.50%
Salary increases were based on a service-related table. Mortality rates for active members, retirees,
survivors and disabilitants were based on RP-2014 tables for both plans for males or females, as
appropriate, with slight adjustments to fit PERA’s experience. Cost of living benefit increases for retirees
67
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
are assumed to be 1% per year for the GERF through 2044 and PEPFF through 2064 and then 2.5%
thereafter.
Actuarial assumptions used in the June 30, 2017 valuation were based on the results of actuarial experience
studies. The most recent four-year experience study in the General Employees Plan was completed in
2015. The most recent five-year experience study for the Police and Fire Plan was completed in 2016.
The following changes in actuarial assumptions occurred in 2017:
General Employees Fund
The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members
and 60 percent for vested and non-vested deferred members. The revised CSA loads are now 0.0
percent for active member liability, 15.0 percent for vested deferred member liability and 3.0
percent for non-vested deferred member liability.
The assumed post-retirement benefit increase rate was changed from 1.0 percent per year for all
years to 1.0 percent per year through 2044 and 2.5 percent per year thereafter.
Police and Fire Fund
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 percent lower than the previous rates.
Assumed rates of retirement were changed, resulting in fewer retirements.
The Combined Service Annuity (CSA) load was 30 percent for vested and non-vested deferred
members. The CSA has been changed to 33 percent for vested members and 2 percent 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 percent 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 percent to 60 percent.
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 percent for all years to
1.00 percent per year through 2064 and 2.50 percent thereafter.
68
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
The long-term expected rate of return on pension plan investments is 7.5%. The State Board of
Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a
regular basis of the long-term expected rate of return using a building-block method in which best-estimate
ranges of expected future rates of return are developed for each major asset class. These ranges are
combined to produce an expected long-term rate of return by weighting the expected future rates of return
by the target asset allocation percentages. The target allocation and best estimates of geometric real rates
of return for each major asset class are summarized in the following table:
Target Long-Term Expected
Asset Class Allocation Real Rate of Return
Domestic Stocks 39%5.10%
International Stocks 19%5.30%
Bonds 20%0.75%
Alternative Assets 20%5.90%
Cash 2%0.00%
Total 100%
F. DISCOUNT RATE
The discount rate used to measure the total pension liability in 2017 was 7.5%. The projection of cash
flows used to determine the discount rate assumed that contributions from plan members and employers
will be made at rates set in Minnesota statute. Based on those assumptions, the fiduciary net position of the
GERF and PEPFF was projected to be available to make all projected future benefit payments of current
plan members. Therefore, the long-term expected rate of return on pension plan investments was applied
to all periods of projected benefit payments to determine the total pension liability. At June 30, 2016, the
Police and Fire Fund projected benefit payments to exceed the funds projected fiduciary net position after
June 30, 2056 and therefore used a single discount rate of 5.6%, which as stated above, increased to 7.5%
at June 30, 2017.
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 $7,436,369 $4,794,334 $2,631,349
City's proportionate share of the
PEPFF net pension liability $483,107 $256,523 $69,465
69
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
H. PENSION PLAN FIDUCIARY NET POSITION
Detailed information about each pension plan’s fiduciary net position is available in a separately-issued
PERA financial report that includes financial statements and required supplementary information. That
report may be obtained at www.mnpera.org.
Note 9 SINGLE EMPLOYER PENSION PLAN
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to
pensions, and pension expense, information about the fiduciary net position of the Chanhassen Fire
Department Relief Association (the Relief Association) and additions to/deductions from the Relief
Association’s fiduciary net position have been determined on the same basis as they were reported by the
Relief Association. For this purpose, benefit payments are recognized when due and payable in
accordance with the benefit terms. Investments are reported at fair value.
B. PLAN DESCRIPTION
All members of the Chanhassen Fire Department are covered by a defined benefit pension plan
administered by the Relief Association. The Plan is a single employer retirement plan and is established
and administered in accordance with Minnesota Statute, Chapter 69.
C. BENEFITS PROVIDED
Twenty Year Service Pension
Prior to April 1997, each member who is at least 50 years of age, has retired from the Fire Department, has
served at least twenty years of active service with such department before retirement, and has been a
member of the Relief Association in good standing at least ten years prior to such retirement shall be
entitled to receive either a monthly lifetime service pension or a defined benefit lump sum pension. After
April 1997, each member shall be entitled to receive a defined benefit lump sum pension.
Monthly service pensions shall be $410 per month. Defined benefit service pension per year of service
shall be $6,000. Effective January 1, 2018, the benefit level per year of service will increase to $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.
70
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
Ten Year Service But Less Than Twenty Year Service
Each member who is at least 50 years of age; who has retired from the Fire Department; who has served at
least five years of active service with such department before retirement but has not served at least 20 years
of active service; and, who has been a member of the Relief Association in good standing at least ten years
prior to such retirement, shall be entitled to either a pro-rated monthly service pension or a pro-rated lump
sum service pension based on the percentages in the following table:
For Duty of:
more than but less than
5 years 6 years 40%
6744
7848
8952
91056
10 11 60
11 12 64
12 13 68
13 14 72
14 15 76
15 16 80
16 17 84
17 18 88
18 19 92
19 20 96
20 100
The payment amount will be calculated by using the amount payable per year of service in effect at the
time of such early retirement, multiplied by the number of accumulated years of service, multiplied by the
appropriate percentage as defined above.
During the time a member is on early-vested pension, he or she will not be eligible for disability benefits.
Survivors Benefit
Prior to April 1997, if any active vested or deferred member dies leaving an eligible surviving spouse, they
shall receive a monthly pension for a guaranteed fifteen year period. After April 1997, an eligible surviving
spouse shall receive a lump sum payment calculated in accordance with the by-laws. If there is no
surviving spouse, then the deceased member’s designated beneficiary or their estate would receive the
payment.
A surviving spouse of a member receiving a monthly pension shall receive 50% of the member’s monthly
benefit, based on the date of death.
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
71
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
that that member is unable to perform their duties, they are entitled to their full accrued lump sum benefit,
payable immediately.
Temporary Disability
Any member of the Relief Association who becomes temporarily incapacitated from attending to their
business due to illness of injury, sustained in the performance of such business, and is unable to work for a
period of one week or longer, shall be paid a benefit of $5 per day for a period of no longer than 120 days
in any one fiscal year, providing the member is under the care of a physician or doctor during this period.
Death Benefit
Upon the death of any active or deferred member, the beneficiaries of the deceased member shall be paid a
death benefit in an amount equivalent to the accrued service pension.
D. EMPLOYEES COVERED BY BENEFIT TERMS
At December 31, 2017, the following employees were covered by the benefit terms:
Retirees and beneficiaries
currently receiving benefits 7
Retired members entitled to
benefits but have not received them 27
Active members:
Fully vested (20 years or more) 4
Partially vested (5 years to 19 years) 16
Non-vested (less than 5 years)19
Total 73
E. CONTRIBUTIONS
Minnesota Statutes Chapter 424A.092 specifies minimum support rates required on an annual basis. The
minimum support rates from the municipality and from State Aid are determined as the amount required to
meet the normal cost plus amortizing any existing prior service costs over a ten-year period. The
significant actuarial assumptions used to compute the municipal support are not the same as those used to
compute the accrued pension liability. The Relief Association is comprised of volunteers; therefore, there
are no payroll expenditures (i.e., there are no covered payroll percentage calculations).
Contributions totaling $181,554 from the State of Minnesota were made to the Relief Association in
accordance with state statute requirements for the year ended December 31, 2017.
72
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
F. ACTUARIAL METHOD AND SIGNIFICANT ASSUMPTIONS
The total pension liability was determined by an actuarial valuation as of December 31, 2017 using the
following actuarial assumptions, applied to all periods in the measurement:
Valuation date 12/31/2017
Measurement date (assets and funded status)12/31/2017
Actuarial cost method Entry Age Normal
Amortization method Level dollar
Closed 20-year period
Asset valuation method Market Value
Actuarial assumptions:
Investment rate of return 5%
Projected salary increases N/A
Includes inflation at 3%
Cost-of-living adjustments 3%
Age of service retirement
The later of the age 50 and
20 years of service
Post-retirement benefit increases None
Mortality assumptions were determined using the RP-2014 Blue Collar Mortality with fully generational
improvements from 2006 based on assumptions from the Social Security Administration’s 2017 trustees
report.
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which best-estimates of expected future real rates of return (expected returns, net of pension
plan investment expense and inflation) are developed for each major asset class. These real rates of return
are combined to produce the long-term expected rate of return by weighting the expected future real rates
of return by the target asset allocation percentage and by adding expected inflation. For each major asset
class that is included in the pension plan’s target asset allocation as of December 31, 2017, 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%5.1%
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 liability discount rate was
developed using the alternative method described in paragraph 43 of GASB 67, which states that “if the
evaluations required by paragraph 41 can be made with sufficient reliability without a separate projection
of cash flows into and out of the pension plan, alternative methods may be applied in making the
evaluations.” The determination of the discount rate assumed that the plan’s current underfunded status,
combined with Minnesota statutory funding requirements, provide sufficient reliability that projected
73
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
plan assets will be adequate to pay future retiree benefits. Therefore, the plan’s long-term expected
return on plan investments was applied to all periods of projected benefit payments to determine the total
pension liability.
H. CHANGES IN THE NET PENSION LIABILITY
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
Balance at December 31, 2016 $2,635,785 $2,113,570 $522,215
Changes for the year:
Service cost 88,924 - 88,924
Interest 127,729 - 127,729
Changes in benefit terms 212,120 - 212,120
Differences between expected
and actual experience 5,145 - 5,145
Changes of assumptions 231,636 - 231,636
Contributions - employer - - -
On behalf contributions - State of MN - 181,554 (181,554)
Contributions - employee - - -
Net investment income - 306,593 (306,593)
Benefit payments, including refunds of employee
contributions (340,243) (340,243) -
Administrative expense - (14,875)14,875
Other changes - 29,900 (29,900)
Net changes 325,311 162,929 162,382
Balance at December 31, 2017 $2,961,096 $2,276,499 $684,597
Increase (Decrease)
I. PENSION LIABILITY SENSITIVITY
The following presents the net pension liability of the Relief Association, calculated using the discount
rate of 5.0%, as well as what the net pension liability would be if it were calculated using a discount rate
that is 1-percentage-point lower (4.0%) or 1-percentage-point higher (6.0%) than the current rate:
Current
1% Decrease Discount Rate 1% Increase
(4.0%)(5.0%)(6.0%)
Net pension liability $839,061 $684,597 $537,791
74
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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, 2017, the City recognized pension expense of $377,640, including
$181,554 as pension expense (and grant revenue) for the State of Minnesota’s on-behalf contribution to
the plan. At December 31, 2017, 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 $4,116 $2,130
Changes in actuarial assumptions 185,309 121
Difference between projected and
actual investment earnings - 116,442
Total $189,425 $118,693
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
2018 $35,331
2019 35,335
2020 (6,241)
2021 6,307
2022 -
Thereafter -
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CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
L. TOTAL PENSION EXPENSE
Pension expense recognized by the City for all pension plans for the fiscal year ended December 31,
2016 is as follows:
GERF (Note 8)$575,364
PEPFF (Note 8)74,139
Fire Relief 377,640
Total $1,027,143
Note 10 OTHER POST-EMPLOYMENT BENEFITS (OPEB)
A. PLAN DESCRIPTION
In addition to providing the pension benefits described in Note 8 and 9, the City provides post-employment
health care benefits (as defined in paragraph B) for retired employees through a single-employer defined
benefit plan. The City’s OPEB plan is administered by the City. The authority to provide these benefits is
established in Minnesota Statutes Sections 471.61 Subd. 2a, and 299A.465. The benefits, benefit levels,
employee contributions and employer contributions are governed by the City and can be amended by the
City through its personnel manual and collective bargaining agreements with employee groups. The Plan
is not accounted for as a trust fund, as an irrevocable trust has not been established to account for the plan.
The Plan does not issue a separate report.
B. BENEFITS PROVIDED
Retirees
The City is required by State Statute to allow retirees to continue participation in the City’s group health
insurance plan if the individual terminates service with the City through service retirement or disability
retirement. Employees who satisfy the rule of 80 or attain age 55 and have completed 10 years of service
at termination can immediately commence medical benefits. Retirees may obtain dependent coverage
while the participating retiree is under age 65. Covered spouses may continue coverage after the retiree’s
death. The surviving spouse of an active employee may continue coverage in the group health insurance
plan after the employee’s death.
All health care coverage is provided through the City’s group health insurance plans. The retiree is
required to pay 100% of their premium cost for the City-sponsored group health insurance plan in which
they participate. The premium is a blended rate determined on the entire active and retiree population.
Since the projected claims costs for retirees exceed the blended premium paid by retirees, the retirees are
receiving an implicit rate subsidy (benefit). The coverage levels are the same as those afforded to active
employees. Upon a retiree reaching age 65, Medicare becomes the primary insurer and the City’s plan
becomes secondary.
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CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
C. PARTICIPANTS
As of the January 1, 2017 actuarial valuation, participants consisted of:
Retirees and beneficiaries currently
purchasing health insurance through the City 1
Active employees 66
Total 67
Participating employers 1
D. FUNDING POLICY
The additional cost of using a blended rate for actives and retirees is currently funded on a pay-as-you-go
basis. The City Council may change the funding policy at any time.
E. ANNUAL OPEB COSTS AND NET OPEB OBLIGATION
The City’s annual OPEB cost is calculated based on the annual required contribution (ARC) of the
employer, an amount actuarially determined in accordance with the parameters of GASB Statement No. 45.
The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost
each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30
years. The net OPEB obligation as of December 31, 2017, was calculated as follows:
Annual required contribution (ARC)$23,350
Interest on net OPEB obligation 1,362
Adjustment to ARC (1,969)
Annual OPEB cost 22,743
Contributions made during the year (9,137)
Increase (decrease) in net OPEB obligation 13,606
Net OPEB obligation - beginning of year 34,050
Net OPEB obligation - end of year $47,656
For governmental activities, the net OPEB obligation is generally liquidated by the General Fund.
77
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net
OPEB obligation for the previous three years was as follows:
Percentage of
Fiscal Year Annual OPEB Employer Annual OPEB Cost Net OPEB
Ended Cost Contributions Contributed Obligation
December 31, 2015 $12,719 $7,647 60.1% $30,603
December 31, 2016 12,629 9,182 72.7% 34,050
December 31, 2017 22,743 9,137 40.2% 47,656
F. FUNDED STATUS AND FUNDING PROGRESS
The City currently has no assets that have been irrevocably deposited in a trust for future health benefits,
therefore, the actuarial value of assets is zero. The funded status of the plan was as follows:
Unfunded
Actuarial Actuarial UAAL as a
Actuarial Actuarial Accrued Accrued Funded Covered Percentage of
Valuation Value of Assets Liability (AAL)* Liability (UAAL) Ratio Payroll Covered Payroll
Date (a) (b) (b-a) (a/b) (c) ( (b-a) / c)
January 1, 2017 $0 $176,208 $176,208 0.0% $4,989,034 3.5%
*Using the projected unit credit actuarial pay cost method.
G. ACTUARIAL METHODS AND ASSUMPTIONS
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality and the health care cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions (ARC) of the employer are
subject to continual revision as actual results are compared with past expectations and new estimates are
made about the future. The schedule of funding progress, presented as required supplementary information
following the notes to financial statements, presents multi-year trend information that shows whether the
actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued
liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the time of
each valuation and the historical pattern of sharing of benefit costs between the employer and plan
members to that point. The actuarial methods and assumptions used include techniques that are designed
to reduce the effect of short-term volatility in actuarial accrued liabilities and the actuarial value of assets,
consistent with the long-term perspective of the calculations.
In the January 1, 2017 actuarial valuation, the projected unit credit actuarial pay cost method was used.
The actuarial assumptions included a 4.0% investment rate of return (net of administrative expenses) and
an annual health care cost trend rate of 8.0% for 2018, decreasing by 0.5% annually to an ultimate rate of
78
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
4.0%. These rates include a 3% inflation rate. The actuarial value of assets was $0. The plan’s unfunded
actuarial accrued liability is being amortized using the level percentage of projected payroll method over
30 years on an open basis. The remaining amortization period at December 31, 2017 was 30 years.
Note 11 INTERFUND LOANS AND TRANSFERS
Amounts reported as interfund loan receivable/payable at December 31, 2017 are as follows:
Interfund Interfund
Loan Receivable Loan Payable
Major Funds:
Revolving Assessment Fund $397,299 $ -
Water Fund 154,506 1,097,299
Nonmajor Funds 700,000 154,506
Total $1,251,805 $1,251,805
During 2010, the City adopted resolution 2010-16A authorizing an interfund loan for advance of certain costs in
connection with the Transit Station Public Improvement Project. The Transit Station Assessment Fund borrowed
$729,253 from the Water Fund. Repayments, including interest, will be made as funds become available. There
were $110,266 of repayments in 2017 and $116,882 is expected to be repaid in 2018.
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 are being made to the Revolving Assessment Fund and payments during years 2020-2023
will be made to the Capital Replacement Fund. There were $192,176 of repayments in 2017 and $192,517 is
expected to be repaid in 2018.
Interfund transfers made during 2017 are summarized as follows:
Transfers In Transfers Out
Major Funds:
General Fund $ - $404,478
Revolving Assessment Fund 1,750,386 -
Water Fund 21,063 580,671
Sewer Fund - 223,074
Surface Water Management Fund - 392,953
Nonmajor Funds 173,771 344,044
Total $1,945,220 $1,945,220
$1,942,422 of interfund transfers were made to finance capital expenditures, primarily in the Revolving Assessment
Fund. A $2,798 transfer was also made to close a nonmajor capital project fund. These transfers are considered
routine and consistent with previous practices.
79
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
Note 12 CONDUIT DEBT
From time to time, the City has issued conduit debt to provide financial assistance to private-sector entities for the
acquisition and construction of facilities deemed to be in the public interest. The bonds are secured by the property
financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the
bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance.
Neither the City, the State, nor any political subdivision thereof is obligated in any manner for the repayment of the
bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements.
As of December 31, 2017, the outstanding conduit debt is as follows:
Bonds Original 12/31/17 Maturity
Project Name Issued Principal Principal Date
St. Hubert Catholic Community, Series 2007 10/07 $5,942,140 $2,785,620 2027
Presbyterian Homes, Series 2014B 06/14 9,300,000 8,037,903 2034
Note 13 DEFICIT FUND BALANCES
The City has a deficit fund balance of $154,506 in the Transit Station Assessment Capital Project Fund at December
31, 2017. The deficit will be eliminated through special assessment collections.
Note 14 COMMITMENTS AND CONTINGENCIES
A. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors
and omissions; injuries to employees; and natural disasters. The City continues to carry commercial insurance for
risks of loss, including workers compensation, property and general liability and employee health and accident
insurance. There were no significant reductions in insurance from the previous year or settlements in excess of
insurance coverage for any of the past three fiscal years.
B. LITIGATION
Any existing and pending lawsuits, claims and other actions in which the City is a defendant are either
covered by insurance; of an immaterial amount; or, in the judgment of the City’s management, are
remotely recoverable by plaintiffs.
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
80
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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, 2017.
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, 2017, there were no outstanding pay-as-you-go notes.
F. COMMITTED CONTRACTS
At December 31, 2017, the City had commitments of $7,237,455 for uncompleted construction contracts.
In addition, the City entered into construction contracts during 2018 totaling $1,238,779.
81
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
Note 15 FUND BALANCE
A. CLASSIFICATIONS
Definitions of fund balance classifications are included in Note 1P. At December 31, 2017, a summary of
the governmental fund balance classifications are as follows:
Revolving Other
General Assessment Governmental
Fund Fund Funds Total
Nonspendable:
Prepaid items $81,032 $ - $990,723 $1,071,755
Restricted for:
Debt service - - 6,588,900 6,588,900
Park improvements - - 1,716,043 1,716,043
CATV - public education - - 112,161 112,161
Public safety - fire - - 41,472 41,472
Total restricted 0 0 8,458,576 8,458,576
Assigned for:
Capital improvements - 2,190,540 2,393,837 4,584,377
Cable communications - - 376,563 376,563
Cemetery operations - - 37,226 37,226
Debt service reserve - - 1,603,969 1,603,969
Total assigned 0 2,190,540 4,411,595 6,602,135
Unassigned 5,307,088 - (154,506) 5,152,582
Total $5,388,120 $2,190,540 $13,706,388 $21,285,048
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, 2017, the fund
balance of the General Fund exceeded this level.
82
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
Note 16 LEASE REVENUE
The City receives revenue from agreements for the lease of space above its water towers and on City property to
communication companies. The space is used for antennas and other equipment necessary to provide radio
communications. For accounting purposes, the leases are considered operating leases. Lease revenue for the year
ended December 31, 2017 totaled $186,978. Terms of each lease outstanding at year end are as follows:
Lessee Terms Current Term
Sprint $25,082 per year with 3% annual increases 8/1/06 - 7/31/21
Sprint $23,486 per year with 3% annual increases 12/1/05 - 11/30/20
Verizon $2,342 per month 5/1/17 - 4/30/21
Nextel West Corp. $22,926 per year with 3% annual increases 12/1/14 - 11/30/19
T-Mobile $2,153 per month with 3% annual increases 11/1/05 - 10/31/20
T-Mobile $22,258 per year with 3% annual increases 1/1/14 - 12/31/19
StoneBridge/Nextera 5% of gross revenues associated with equipment used on property 4/1/06 - 12/31/19
Cingular/AT&T $2,029 per month with 3% annual increases 8/1/12 - 7/31/22
Note 17 RECENTLY ISSUED ACCOUNTING STANDARDS
The Governmental Accounting Standards Boards (GASB) recently approved the following statements which were
not implemented for these financial statements:
Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. The
provisions in Statement 75 are effective for fiscal years beginning after June 15, 2017.
Statement No. 83 Certain Asset Retirement Obligations. The provisions of this Statement are effective for
reporting periods beginning after June 15, 2018.
Statement No. 84 Fiduciary Activities. The provisions of this Statement are effective for reporting periods
beginning after December 15, 2018.
Statement No. 85 Omnibus 2017. The provisions of this Statement are effective for reporting periods
beginning after June 15, 2017.
Statement No. 86 Certain Debt Extinguishment Issues. The provisions of this Statement are effective for
reporting periods beginning after June 15, 2017.
Statement No. 87 Leases. The provisions of this Statement are effective for reporting periods beginning after
December 15, 2019.
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, 2018.
The effect these standards may have on future financial statements is not determinable at this time, but it is expected
that Statements No. 75 and No. 87 may have a material impact.
83
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
Note 18 SUBSEQUENT EVENT
On March 1, 2018, the City issued $3,595,000 of General Obligation Water Revenue Bonds, Series 2018A, with an
average coupon rate of 2.23%. The bonds were issued to provide funding for construction of the West Water
Treatment Plant and related utility system improvements.
84
REQUIRED SUPPLEMENTARY INFORMATION
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REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 1 of 6
For The Year Ended December 31, 2017
With Comparative Actual Amounts For The Year Ended December 31, 2016
2016
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues:
General property taxes $8,503,631 $8,503,631 $8,407,559 ($96,072) $7,995,056
Excess tax increment received - - 86,633 86,633 33,069
Total general property taxes 8,503,631 8,503,631 8,494,192 (9,439) 8,028,125
Licenses and permits:
Licenses - general government 5,300 5,300 3,150 (2,150) 3,000
Licenses - public safety 95,500 95,500 92,268 (3,232) 92,721
Permits - public safety 895,500 895,500 1,055,127 159,627 994,456
Permits - public works 33,000 33,000 58,941 25,941 43,676
Permits - community development 6,500 6,500 5,565 (935) 8,925
Total licenses and permits 1,035,800 1,035,800 1,215,051 179,251 1,142,778
Intergovernmental:
State aid - police - public safety 146,000 146,000 155,816 9,816 149,504
State aid - fire - public safety 180,000 180,000 184,650 4,650 189,502
PERA - public safety 20,000 20,000 19,467 (533) 19,467
Other 45,000 45,000 55,985 10,985 48,034
Total intergovernmental 391,000 391,000 415,918 24,918 406,507
Charges for services:
General government 76,850 76,850 76,367 (483) 76,205
Public safety 5,000 5,000 4,771 (229) 6,282
Public works 58,900 58,900 62,359 3,459 65,917
Parks and recreation 441,500 441,500 465,051 23,551 454,583
Community development 29,950 29,950 30,017 67 19,582
Total charges for services 612,200 612,200 638,565 26,365 622,569
Fines and forfeits:
Public safety 116,000 116,000 128,394 12,394 114,367
Investment earnings 50,000 50,000 36,120 (13,880) 27,080
Contributions and donations:
General government 500 500 - (500) 600
Public safety 200 200 - (200) 300
Parks and recreation 24,269 24,269 28,609 4,340 23,375
Total contributions and donations 24,969 24,969 28,609 3,640 24,275
Refunds and reimbursements:
General government 10,300 10,300 15,945 5,645 10,268
Public safety 13,200 13,200 4,107 (9,093) 8,050
Public works 45,000 45,000 54,043 9,043 40,030
Parks and recreation 1,500 1,500 250 (1,250) 2,456
Total refunds and reimbursements 70,000 70,000 74,345 4,345 60,804
Other:
General government 181,800 181,800 201,643 19,843 189,487
Public safety 6,000 6,000 5,127 (873) 4,067
Public works - - - - 1,646
Total other 187,800 187,800 206,770 18,970 195,200
Total revenues 10,991,400 10,991,400 11,237,964 246,564 10,621,705
2017
Budgeted Amounts
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REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 6
For The Year Ended December 31, 2017
With Comparative Actual Amounts For The Year Ended December 31, 2016
2016
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Expenditures:
General government:
Legislative:
Current:
Personal services $44,900 $44,900 $44,894 $6 $30,821
Contractual services 71,600 71,600 77,723 (6,123) 80,208
Total legislative 116,500 116,500 122,617 (6,117) 111,029
Administrative office:
Current:
Personal services 473,600 473,600 473,518 82 487,834
Contractual services 55,900 55,900 49,354 6,546 61,290
Total administrative office 529,500 529,500 522,872 6,628 549,124
Finance:
Current:
Personal services 296,000 296,000 300,279 (4,279) 281,815
Materials and supplies 200 200 - 200 -
Contractual services 68,300 68,300 38,822 29,478 41,269
Total finance 364,500 364,500 339,101 25,399 323,084
Election:
Current:
Personal services 24,600 24,600 - 24,600 29,581
Materials and supplies 4,000 4,000 - 4,000 731
Contractual services 14,000 14,000 - 14,000 14,559
Total election 42,600 42,600 0 42,600 44,871
Legal:
Current:
Contractual services 180,500 180,500 198,417 (17,917) 187,471
Property assessment:
Current:
Contractual services 140,000 140,000 146,422 (6,422) 146,371
M.I.S.:
Current:
Personal services 156,300 156,300 149,389 6,911 161,476
Materials and supplies 33,200 33,200 29,061 4,139 21,843
Contractual services 49,600 49,600 45,163 4,437 54,777
Total M.I.S. 239,100 239,100 223,613 15,487 238,096
2017
Budgeted Amounts
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REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 3 of 6
For The Year Ended December 31, 2017
With Comparative Actual Amounts For The Year Ended December 31, 2016
2016
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Expenditures: (continued)
General government: (continued)
City hall:
Current:
Personal services $81,600 $81,600 $84,870 ($3,270) $79,795
Materials and supplies 42,600 42,600 37,610 4,990 39,896
Contractual services 280,000 280,000 267,786 12,214 255,629
Total City hall 404,200 404,200 390,266 13,934 375,320
Library:
Current:
Materials and supplies 4,500 4,500 2,333 2,167 2,105
Contractual services 107,100 107,100 106,832 268 109,849
Total library 111,600 111,600 109,165 2,435 111,954
Total general government 2,128,500 2,128,500 2,052,473 76,027 2,087,320
Public safety:
Police:
Current:
Personal services 10,400 10,400 7,462 2,938 30,597
Materials and supplies 3,000 3,000 313 2,687 475
Contractual services 1,796,500 1,796,500 1,796,460 40 1,685,775
Total police 1,809,900 1,809,900 1,804,235 5,665 1,716,847
Fire department:
Current:
Personal services 735,900 735,900 725,762 10,138 687,197
Materials and supplies 45,100 45,100 34,621 10,479 34,527
Contractual services 157,100 157,100 134,702 22,398 113,488
Total fire department 938,100 938,100 895,085 43,015 835,212
Code enforcement:
Current:
Personal services 735,700 735,700 727,619 8,081 687,628
Materials and supplies 6,600 6,600 2,533 4,067 5,742
Contractual services 13,000 13,000 6,632 6,368 8,921
Total code enforcement 755,300 755,300 736,784 18,516 702,291
Animal control:
Current:
Personal services 56,600 56,600 42,301 14,299 51,495
Materials and supplies 2,300 2,300 993 1,307 1,797
Contractual services 8,200 8,200 5,371 2,829 5,062
Total animal control 67,100 67,100 48,665 18,435 58,354
Total public safety 3,570,400 3,570,400 3,484,769 85,631 3,312,704
2017
Budgeted Amounts
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REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 4 of 6
For The Year Ended December 31, 2017
With Comparative Actual Amounts For The Year Ended December 31, 2016
2016
Actual Variance with Actual
Expenditures: (continued) Original Final Amounts Final Budget Amounts
Public works:
Engineering:
Current:
Personal services $657,700 $657,700 $638,145 $19,555 $629,262
Materials and supplies 1,300 1,300 31 1,269 843
Contractual services 29,700 29,700 20,532 9,168 24,389
Total engineering 688,700 688,700 658,708 29,992 654,494
Street maintenance:
Current:
Personal services 806,200 806,200 781,788 24,412 730,609
Materials and supplies 116,900 116,900 102,711 14,189 95,257
Contractual services 32,900 32,900 46,597 (13,697) 27,713
Total street maintenance 956,000 956,000 931,096 24,904 853,579
Street lighting:
Current:
Materials and supplies 2,000 2,000 4,679 (2,679) 2,785
Contractual services 347,500 347,500 354,518 (7,018) 356,777
Total street lighting 349,500 349,500 359,197 (9,697) 359,562
Fleet department:
Current:
Personal services 298,400 298,400 295,499 2,901 279,669
Materials and supplies 202,200 202,200 149,653 52,547 116,830
Contractual services 68,300 68,300 73,656 (5,356) 60,701
Total fleet department 568,900 568,900 518,808 50,092 457,200
Total public works 2,563,100 2,563,100 2,467,809 95,291 2,324,835
Parks and recreation:
Parks and recreation commission:
Current:
Materials and supplies 100 100 - 100 -
Contractual services 1,100 1,100 175 925 325
Total parks and recreation commission 1,200 1,200 175 1,025 325
Parks and recreation administration:
Current:
Personal services 221,900 221,900 226,421 (4,521) 209,634
Materials and supplies 200 200 16 184 -
Contractual services 5,900 5,900 6,714 (814) 4,849
Total parks and recreation
administration 228,000 228,000 233,151 (5,151) 214,483
Recreation center:
Current:
Personal services 225,000 225,000 205,080 19,920 203,502
Materials and supplies 31,000 31,000 15,505 15,495 16,056
Contractual services 85,500 85,500 91,836 (6,336) 100,314
Total recreation center 341,500 341,500 312,421 29,079 319,872
2017
Budgeted Amounts
89
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 5 of 6
For The Year Ended December 31, 2017
With Comparative Actual Amounts For The Year Ended December 31, 2016
2016
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Expenditures: (continued)
Parks and recreation: (continued)
Senior citizen center:
Current:
Personal services $89,900 $89,900 $78,268 $11,632 $51,889
Materials and supplies 4,300 4,300 4,472 (172) 2,539
Contractual services 27,700 27,700 35,200 (7,500) 31,157
Total senior citizen center 121,900 121,900 117,940 3,960 85,585
Recreation programs:
Current:
Personal services 208,600 208,600 203,941 4,659 188,269
Materials and supplies 21,100 21,100 26,115 (5,015) 19,230
Contractual services 116,100 116,100 123,322 (7,222) 108,630
Total recreation programs 345,800 345,800 353,378 (7,578) 316,129
Self-supporting programs:
Current:
Personal services 34,700 34,700 34,758 (58) 33,164
Materials and supplies 5,400 5,400 4,284 1,116 4,142
Contractual services 25,000 25,000 11,575 13,425 11,766
Total self-supporting programs 65,100 65,100 50,617 14,483 49,072
Lake Ann Park operations:
Current:
Personal services 11,900 11,900 9,289 2,611 10,096
Materials and supplies 10,200 10,200 10,677 (477) 8,633
Contractual services 48,100 48,100 47,608 492 46,869
Total Lake Ann Park operations 70,200 70,200 67,574 2,626 65,598
Park maintenance:
Current:
Personal services 840,700 840,700 837,263 3,437 821,629
Materials and supplies 83,000 83,000 86,356 (3,356) 76,369
Contractual services 93,700 93,700 118,072 (24,372) 74,880
Total park maintenance 1,017,400 1,017,400 1,041,691 (24,291) 972,878
Downtown maintenance:
Current:
Contractual services - - - - 41
Recreation sports:
Current:
Personal services 28,400 28,400 27,312 1,088 24,571
Materials and supplies 8,000 8,000 7,946 54 8,162
Contractual services 300 300 - 300 -
Total recreation sports 36,700 36,700 35,258 1,442 32,733
Total parks and recreation 2,227,800 2,227,800 2,212,205 15,595 2,056,716
2017
Budgeted Amounts
90
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 6 of 6
For The Year Ended December 31, 2017
With Comparative Actual Amounts For The Year Ended December 31, 2016
2016
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Expenditures: (continued)
Community development:
Planning commission:
Current:
Materials and supplies $200 $200 $ - $200 $ -
Contractual services 1,100 1,100 1,339 (239) 1,160
Total planning commission 1,300 1,300 1,339 (39) 1,160
Planning administration:
Current:
Personal services 451,600 451,600 453,703 (2,103) 427,035
Materials and supplies 400 400 503 (103) 119
Contractual services 11,500 11,500 42,023 (30,523) 7,761
Total planning administration 463,500 463,500 496,229 (32,729) 434,915
Senior facility commission:
Current:
Personal services 27,100 27,100 27,735 (635) 26,403
Contractual services 9,700 9,700 15,519 (5,819) 9,329
Total senior facility commission 36,800 36,800 43,254 (6,454) 35,732
Total community development 501,600 501,600 540,822 (39,222) 471,807
Total expenditures 10,991,400 10,991,400 10,758,078 233,322 10,253,382
Revenues over expenditures 0 0 479,886 479,886 368,323
Other financing sources (uses):
Sale of capital assets - - - - 35,324
Transfers out - - (404,478) (404,478) (421,281)
Total other financing sources (uses) 0 0 (404,478) (404,478) (385,957)
Net change in fund balance $0 $0 75,408 $75,408 (17,634)
Fund balance - January 1 5,312,712 5,330,346
Fund balance - December 31 $5,388,120 $5,312,712
Budgeted Amounts
2017
91
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 11
SCHEDULE OF FUNDING PROGRESS - RETIREE HEALTH PLAN
For The Year Ended December 31, 2017
Unfunded
Actuarial Actuarial Actuarial UAAL as a
Actuarial Value of Accrued Accrued Funded Covered Percentage of
Valuation Assets Liability (AAL)* Liability (UAAL) Ratio Payroll Covered Payroll
Date (a)(b)(b-a)(a/b)(c) ( (b-a) / c)
January 1, 2011 $0 $89,875 $89,875 0.0% $4,299,466 2.1%
January 1, 2014 $0 $116,025 $116,025 0.0% $4,568,337 2.5%
January 1, 2017 $0 $176,208 $176,208 0.0% $4,989,034 3.5%
*Using the projected unit credit actuarial pay cost method.
92
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 12
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY -
GENERAL EMPLOYEES RETIREMENT FUND
For The Year Ended December 31, 2017
City's Plan
State's Proportionate Fiduciary
Proportionate Share of the Net Net
City's City's Share Pension Liability City's Position
Proportionate Proportionate (Amount) and the State's Proportionate as a
Share Share of the Net Proportionate Share of the Net Percentage
(Percentage) (Amount) Pension Share of the Net Pension Liability of the
Measurement Fiscal Year of the of the Net Liability Pension Liability as a Percentage Total
Date Ending Net Pension Pension Associated Associated with Covered of its Covered Pension
June 30 December 31 Liability Liability (a) with City (b) City (a+b) Payroll (c) Payroll ((a+b)/c) Liability
2015 2015 0.0791% $4,099,373 $0 $4,099,373 $4,651,703 88.1% 78.2%
2016 2016 0.0759% 6,162,704 80,496 6,243,200 4,708,444 132.6% 68.9%
2017 2017 0.0751% 4,794,334 60,265 4,854,599 4,836,519 100.4% 75.9%
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.
93
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 13
SCHEDULE OF PENSION CONTRIBUTIONS - GENERAL EMPLOYEES RETIREMENT FUND
For The Year Ended December 31, 2017
Statutorily Contributions in Contribution Contributions as a
Required Relation to the Deficiency Covered Percentage of
Fiscal Year Contribution Statutorily Required (Excess) Payroll Covered-Employee
Ending (a) Contribution (b) (a-b) (c) Payroll (b/c)
December 31, 2015 $346,881 $346,881 $0 $4,625,080 7.5%
December 31, 2016 358,611 358,611 - 4,781,489 7.5%
December 31, 2017 371,824 371,824 - 4,957,652 7.5%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
94
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 14
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY -
PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Year Ended December 31, 2017
Proportionate Share
Proportionate Proportionate of the Net Pension Plan Fiduciary
Share Share (Amount) Liability as a Net Position as
(Percentage) of of the Net Percentage of its a Percentage
Measurement Fiscal Year the Net Pension Pension Covered Covered of the Total
Date Ending Liability Liability (a) Payroll (b) Payroll (a/b) Pension Liability
June 30, 2015 December 31, 2015 0.0200% $227,247 $180,370 126.0%86.6%
June 30, 2016 December 31, 2016 0.0190% 762,503 186,408 409.1%63.9%
June 30, 2017 December 31, 2017 0.0190% 256,523 194,526 131.9%85.4%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
95
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 15
SCHEDULE OF PENSION CONTRIBUTIONS - PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Year Ended December 31, 2017
Statutorily Contributions in Contribution Contributions as a
Required Relation to the Deficiency Covered Percentage of
Fiscal Year Contribution Statutorily Required (Excess) Payroll Covered
Ending (a) Contribution (b) (a-b) (c) Payroll (b/c)
December 31, 2015 $29,647 $29,647 $0 $183,006 16.2%
December 31, 2016 30,790 30,790 - 190,064 16.2%
December 31, 2017 32,612 32,612 - 201,307 16.2%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
96
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 16
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS -
CHANHASSEN FIRE DEPARTMENT RELIEF ASSOCIATION
For The Year Ended December 31, 2017
Fiscal year ending and measurement date December 31, 2017 December 31, 2016 December 31, 2015
Total pension liability:
Service cost $88,924 $88,924 $86,369
Interest 127,729 128,235 118,909
Changes of benefit terms 212,120 - 279,202
Differences between expected and actual experience 5,145 - (5,328)
Changes of assumptions 231,636 (203) -
Benefit payments, including refunds of employee contributions (340,243)(113,883)(470,743)
Net change in total pension liability 325,311 103,073 8,409
Total pension liability - beginning 2,635,785 2,532,712 2,524,303
Total pension liability - ending (a)$2,961,096 $2,635,785 $2,532,712
Plan fiduciary net position:
Contributions - employer $ - $ - $37,571
Contributions - State of Minnesota 181,554 177,831 177,784
Contributions - employee - - -
Net investment income 306,593 158,581 (105,958)
Benefit payments, including refunds of employee contributions (340,243)(113,883)(470,743)
Administrative expense (14,875)(16,972)(7,225)
Other changes 29,900 500 -
Net change in plan fiduciary net position 162,929 206,057 (368,571)
Plan fiduciary net position - beginning 2,113,570 1,907,513 2,276,084
Plan fiduciary net position - ending (b)$2,276,499 $2,113,570 $1,907,513
Net pension liability - ending (a) - (b)$684,597 $522,215 $625,199
Plan fiduciary net position as a percentage of the total pension liability 76.9%80.2%75.3%
Covered payroll*$0 $0 $0
Net pension liability as a percentage of covered payroll*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.
97
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 17
SCHEDULE OF CONTRIBUTIONS - CHANHASSEN FIRE DEPARTMENT RELIEF ASSOCIATION
For The Year Ended December 31, 2017
Actuarially Contribution Contributions
Determined Deficiency as a Percentage
Fiscal Year Contribution Employer State of MN (Excess) Covered of Covered
Ending (a) Contributions (b) Contributions (c) (a-b-c) Payroll Payroll
December 31, 2015 $142,501 $37,571 $177,784 ($72,854) **
December 31, 2016 171,760 - 177,831 (6,071) **
December 31, 2017 236,444 - 181,554 54,890 **
*The Chanhassen Fire Department Relief Association is comprised of volunteers, therefore, there are no payroll expenditures.
(i.e., there are no covered payroll amounts or percentage calculations.)
GASB 68 was implemented in 2015. Information prior to 2015 is not available.
Contributions in Relation to the
Actuarially Determined Contribution
98
CITY OF CHANHASSEN, MINNESOTA
NOTES TO RSI
December 31, 2017
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
2017 Changes in Actuarial Assumptions:
The Combined Service Annuity (CSA) loads were changed from 0.8% for active members and 60%
for vested and non-vested deferred members. The revised CSA loads are now 0.0% for active member
liability, 15.0% for vested deferred member liability and 3.0% for non-vested deferred member
liability.
The assumed post-retirement benefit increase rate was changed from 1.0% per year for all years to
1.0% per year through 2044 and 2.5% per year thereafter.
2016 Changes in Actuarial Assumptions:
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035 and
2.5% per year thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was changed
from 7.9% to 7.5%.
Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed
future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll
growth and 2.50% for inflation.
PERA – Public Employees Police and Fire Fund
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.
99
CITY OF CHANHASSEN, MINNESOTA
NOTES TO RSI
December 31, 2017
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.
2016 Changes in Actuarial Assumptions:
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037 and
2.5% per year thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate changed
from 7.9% to 5.6%.
The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25%
for payroll growth and 2.50% for inflation.
Single Employer – Fire Relief Association
Valuation date – actuarially determined contribution rates are calculated as of January 1 every other year, which
is the same date as the beginning of the fiscal year beginning in which contributions are reported.
2017 Changes in Actuarial Assumptions:
The mortality improvement scale has been changed from an improvement scale based on assumptions
developed from the 2016 Social Security Trustees Report to an improvement scale based on
assumptions developed from the 2017 Social Security Trustees Report.
Disability rates have changed from 0.03% at age 20, grading to 0.33% at age 50 to Class 1 1985
Disability Rates.
The lump sum benefit accrual amount has been projected to increase by 9.27% every three years (3%
compounded each year).
2016 Changes in Actuarial Assumptions:
As of December 31, 2016, the mortality assumption was changed to the RP-2014 Blue Collar Mortality
with fully generational improvements from 2006 based on assumptions from the Social Security
Administration’s 2016 trustees report.
Details can be obtained from the financial reports of the Fire Relief Association.
100
COMBINING AND INDIVIDUAL NONMAJOR FUND FINANCIAL
STATEMENTS AND SCHEDULES
101
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102
NONMAJOR GOVERNMENTAL FUNDS
103
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104
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).
105
CITY OF CHANHASSEN, MINNESOTA
COMBINING BALANCE SHEET Statement 18
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2017
With Comparative Totals For December 31, 2016
Special Debt Capital
Revenue Service Project 2017 2016
Assets:
Cash and investments $519,079 $2,844,741 $4,243,276 $7,607,096 $6,993,505
Cash with escrow agent - 5,331,655 - 5,331,655 5,414,798
Accrued interest receivable 2,269 9,907 18,512 30,688 26,113
Due from other governmental units 104 - 37,914 38,018 38,269
Accounts receivable - net 52,843 - 78,867 131,710 196,568
Property taxes receivable - 6,567 5,626 12,193 19,467
Prepaid items 769 - 989,954 990,723 -
Interfund loan receivable - - 700,000 700,000 700,000
Contract for deed receivable - - - - 1,252,869
Special assessments receivable - 320,463 240,777 561,240 679,507
Total assets $575,064 $8,513,333 $6,314,926 $15,403,323 $15,321,096
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $300 $ - $205,365 $205,665 $119,781
Due to other governmental units - - - - 25,408
Salaries payable 6,573 - - 6,573 3,350
Contracts payable - - 202,082 202,082 351,203
Interfund loan payable - - 154,506 154,506 264,772
Unearned revenue - - 566,868 566,868 81,629
Total liabilities 6,873 0 1,128,821 1,135,694 846,143
Deferred inflows of resources:
Unavailable revenue - 320,464 240,777 561,241 684,543
Fund balance:
Nonspendable 769 - 989,954 990,723 -
Restricted 153,633 6,588,900 1,716,043 8,458,576 8,673,981
Assigned 413,789 1,603,969 2,393,837 4,411,595 5,381,201
Unassigned - - (154,506) (154,506) (264,772)
Total fund balance 568,191 8,192,869 4,945,328 13,706,388 13,790,410
Total liabilities, deferred inflows
of resources, and fund balance $575,064 $8,513,333 $6,314,926 $15,403,323 $15,321,096
Total Nonmajor
Governmental Funds
106
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, 2017
With Comparative Totals For The Year Ended December 31, 2016
Special Debt Capital
Revenue Service Project 2017 2016
Revenues:
General property taxes $ - $1,048,652 $893,000 $1,941,652 $2,180,492
Tax increment collections - - - - 111,761
Licenses and permits - - 426,089 426,089 511,080
Intergovernmental - - 683,292 683,292 426,474
Special assessments - 8,081 131,329 139,410 190,865
Charges for services 191,952 7,981 - 199,933 223,971
Investment earnings 3,930 52,103 32,053 88,086 58,824
Contributions and donations 41,952 - 3,173 45,125 36,527
Refunds and reimbursements 104 - 14,544 14,648 76,458
Other - - 57,344 57,344 80,867
Total revenues 237,938 1,116,817 2,240,824 3,595,579 3,897,319
Expenditures:
Current:
General government 140,323 17,806 660,665 818,794 391,951
Public safety 51,031 - 67,097 118,128 400,442
Public works - - 470,056 470,056 761,167
Parks and recreation - - 183,349 183,349 199,598
Community development - - 37,055 37,055 47,875
Capital outlay:
General government - - 30,838 30,838 62,713
Public safety 2,950 - - 2,950 314,004
Public works - - 27,202 27,202 95,757
Parks and recreation - - 376,992 376,992 1,153,763
Decertification of TIF district - - 362,123 362,123 139,594
Debt service:
Principal - 670,000 - 670,000 1,795,000
Interest and paying agent fees - 433,925 - 433,925 483,533
Total expenditures 194,304 1,121,731 2,215,377 3,531,412 5,845,397
Revenues over (under) expenditures 43,634 (4,914)25,447 64,167 (1,948,078)
Other financing sources (uses):
Sale of capital assets - - 19,286 19,286 54,994
Issuance of debt - - - - 4,805,000
Bonds premium - - - - 239,773
Transfers in 831 - 172,940 173,771 627,546
Transfers out - - (344,044) (344,044) (593,999)
Total other financing sources (uses)831 0 (151,818) (150,987) 5,133,314
Net change in fund balance 44,465 (4,914) (126,371) (86,820) 3,185,236
Fund balance - January 1 523,726 8,197,783 5,071,699 13,793,208 10,605,174
Fund balance - December 31 $568,191 $8,192,869 $4,945,328 $13,706,388 $13,790,410
Reconciliation of beginning fund balance to prior year ending fund balance:
Prior year ending fund balance reported above $13,790,410
Reclassification of TH 101 Improvements - Lyman to Pioneer fund balance, now presented as a nonmajor fund 2,798
Fund balance - January 1, 2017 as reported on this statement $13,793,208
Total Nonmajor
Governmental Funds
107
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108
NONMAJOR SPECIAL REVENUE FUNDS
Special Revenue Funds are established to account for taxes and other revenues set aside for a
particular purpose. Revenues are recognized in the accounting period in which they become
available and measurable. Expenditures are recognized in the accounting period in which the
related liability is incurred.
Contribution Fund – This fund accounts for the proceeds that the City receives from
charitable gambling. The City collects 10% of the net proceeds from a pull-tab operation
in the City. By state statute, the fund may only be used for equipment and training for the
City’s fire department.
Cemetery Fund – The City owns and operates a municipal cemetery. In 2014,
improvements were made to add approximately 300 additional plots. This fund accounts
for all plot fees and maintenance going forward. Cemetery operations had previously been
accounted for within the City’s General Fund.
CATV Fund – Under the terms of the franchise agreement with Triax Cablevision, the City
is to receive 5% of the revenues derived from cable television sales within the City. These
monies are dedicated solely to improving public broadcasting capabilities, studio
improvements, and other capital expenditures improving the overall cable system.
109
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING BALANCE SHEET Statement 20
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2017
With Comparative Totals For December 31, 2016
201
Contribution
Fund
202 Cemetery
Fund
210 CATV
Fund
2017 2016
Assets:
Cash and investments $37,252 $37,065 $444,762 $519,079 $471,946
Accrued interest receivable 187 161 1,921 2,269 1,649
Due from other governmental units 104 - - 104 249
Accounts receivable - net 7,033 - 45,810 52,843 53,232
Prepaid items - - 769 769 -
Total assets $44,576 $37,226 $493,262 $575,064 $527,076
Liabilities and Fund Balance
Liabilities:
Accounts payable $ - $ - $300 $300 $ -
Salaries payable 3,104 - 3,469 6,573 3,350
Total liabilities 3,104 0 3,769 6,873 3,350
Fund balance:
Nonspendable - - 769 769 -
Restricted 41,472 - 112,161 153,633 164,751
Assigned - 37,226 376,563 413,789 358,975
Total fund balance 41,472 37,226 489,493 568,191 523,726
Total liabilities and fund balance $44,576 $37,226 $493,262 $575,064 $527,076
Total Nonmajor Special
Revenue Funds
110
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, 2017
With Comparative Totals For The Year Ended December 31, 2016
201
Contribution
Fund
202 Cemetery
Fund
210 CATV
Fund
2017 2016
Revenues:
Charges for services $ - $4,150 $187,802 $191,952 $219,932
Investment earnings 325 279 3,326 3,930 2,803
Contributions and donations 41,603 349 - 41,952 36,527
Refunds and reimbursements 104 - - 104 249
Total revenues 42,032 4,778 191,128 237,938 259,511
Expenditures:
Current:
General government - 1,963 138,360 140,323 172,777
Public safety 51,031 - - 51,031 16,670
Capital outlay:
Public safety 2,950 - - 2,950 5,900
Total expenditures 53,981 1,963 138,360 194,304 195,347
Revenues over (under) expenditures (11,949) 2,815 52,768 43,634 64,164
Other financing sources:
Transfers in 831 - - 831 -
Net change in fund balance (11,118) 2,815 52,768 44,465 64,164
Fund balance - January 1 52,590 34,411 436,725 523,726 459,562
Fund balance - December 31 $41,472 $37,226 $489,493 $568,191 $523,726
Total Nonmajor Special
Revenue Funds
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112
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 Bofunds – 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.
113
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING BALANCE SHEET Statement 22
NONMAJOR DEBT SERVICE FUNDS
December 31, 2017
With Comparative Totals For December 31, 2016
300 Permanent
Revolving
Debt
367 2008A
G.O. Public
Works Facility
Bonds
368 2009A
G.O.
Refunding
Bonds
369 2010A
G.O. Library
Refunding
Bonds
370 2016A
G.O.
Refunding
Bonds
2017 2016
Assets:
Cash and investments $820,319 $554,583 $776,607 $693,232 $ - $2,844,741 $2,761,824
Cash with escrow agent - - - - 5,331,655 5,331,655 5,414,798
Accrued interest receivable 3,633 1,029 3,411 1,834 - 9,907 9,182
Property taxes receivable - 3,755 - 2,812 - 6,567 11,490
Special assessments receivable 9,341 - 311,122 - - 320,463 328,464
Total assets $833,293 $559,367 $1,091,140 $697,878 $5,331,655 $8,513,333 $8,525,758
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities: $ - $ - $ - $ - $ - $ - $ -
Deferred inflows of resources:
Unavailable revenue 9,342 - 311,122 - - 320,464 327,975
Fund balance:
Restricted - 559,367 - 697,878 5,331,655 6,588,900 6,604,268
Assigned 823,951 - 780,018 - - 1,603,969 1,593,515
Total fund balance 823,951 559,367 780,018 697,878 5,331,655 8,192,869 8,197,783
Total liabilities, deferred inflows
of resources, and fund balance $833,293 $559,367 $1,091,140 $697,878 $5,331,655 $8,513,333 $8,525,758
Total Nonmajor Debt
Service Funds
114
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, 2017
With Comparative Totals For The Year Ended December 31, 2016
300 Permanent
Revolving
Debt
367 2008A
G.O. Public
Works Facility
Bonds
368 2009A
G.O.
Refunding
Bonds
369 2010A
G.O. Library
Refunding
Bonds
370 2016A
G.O.
Refunding
Bonds
2017 2016
Revenues:
General property taxes $ - $596,700 $ - $451,952 $ - $1,048,652 $1,287,492
Special assessments 8,081 - - - - 8,081 44,360
Charges for services 7,981 - - - - 7,981 4,039
Investment earnings 6,291 1,782 5,907 3,175 34,948 52,103 30,058
Total revenues 22,353 598,482 5,907 455,127 34,948 1,116,817 1,365,949
Expenditures:
Current:
General government 17,806 - - - - 17,806 3,891
Debt service:
Principal - 310,000 - 360,000 - 670,000 1,795,000
Interest and paying agent fees - 249,468 - 66,280 118,177 433,925 483,533
Total expenditures 17,806 559,468 0 426,280 118,177 1,121,731 2,282,424
Revenues over (under) expenditures 4,547 39,014 5,907 28,847 (83,229) (4,914) (916,475)
Other financing sources (uses):
Issuance of debt - - - - - - 4,805,000
Bond premium - - - - - - 239,773
Transfers in - - - - - - 475,000
Transfers out - - - - - - (475,000)
Total other financing sources (uses)0000005,044,773
Net change in fund balance 4,547 39,014 5,907 28,847 (83,229) (4,914) 4,128,298
Fund balance - January 1 819,404 520,353 774,111 669,031 5,414,884 8,197,783 4,069,485
Fund balance - December 31 $823,951 $559,367 $780,018 $697,878 $5,331,655 $8,192,869 $8,197,783
Total Nonmajor Debt
Service Funds
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116
NONMAJOR CAPITAL PROJECT FUNDS
Capital Project Funds are used to account for the construction and financing of large capital
projects. Revenues and expenditures are recognized on the modified accrual basis. Revenues
are recognized in the accounting period in which they become available and measurable.
Expenditures are recognized in the accounting period in which they are incurred.
Most capital projects are singular in purpose and their revenues/expenditures cannot be used
for subsidizing any other operating fund. In each of these cases, bonds or other revenues
received can only be used for these specific activities.
The following Capital Project Funds differ in that several of the expenditure categories
represent recurring types of costs, i.e., personal services, repair and maintenance of utilities,
and/or recurring land improvements.
400 Capital Replacement Fund – Accounts for monies collected from developers for inspection
and administrative services for projects.
410 Park Acquisition and Development – Accounts for park dedication fees as required by the
City ordinance. These funds are then utilized to finance park and trail improvements identified
in the park and recreation section of the City’s comprehensive plan.
413 Transit Station Assessment Fund – Accounts for the interfund loan from the Water Fund to
fund costs associated with the redevelopment of the Dinner Theater Transit Station in TIF #10,
and for the repayment of the special assessment to repay those costs.
420 Street Pavement Management – Accounts for sealcoating costs on local streets.
422 Old Public Works Building – Accounts for the sale of the old public works building and the
related contract for deed receivable.
461 Gateway Place TIF #9, 462 Downtown Transit Station TIF #10, 491 Entertainment TIF
#4, and 494 North Bay TIF #5 – Accounts for financing improvements in tax increment
financing districts.
603 Lyman Blvd Improvements – Accounts for the street and utility improvement of Lyman
Blvd.
604 TH101 Improvements – Lyman to Pioneer – Accounts for the funding sources and costs of
the Trunk Highway 101 improvement project, which includes widening of the highway between
Lyman Boulevard and Pioneer Trail, pedestrian/bicycle trails and a trail underpass.
605 TH101 Improvements – Pioneer to Flying Cloud – Accounts for the funding sources and
costs of the Trunk Highway 101 improvement project, which includes widening of the highway
between Pioneer Trail and Flying Cloud Drive, sanitary sewer and water extension, storm sewer
improvements, pedestrian/bicycle trails and a pedestrian bridge.
117
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2017
With Comparative Totals For December 31, 2016
410 Park
400 Capital Acquisition and 413 Transit Station
Replacement Fund Development Assessment Fund
Assets:
Cash and investments $587,192 $1,816,355 $ -
Accrued interest receivable 1,791 7,045 -
Due from other governmental units 213 - -
Accounts receivable - net 78,867 - -
Property taxes receivable 5,040 - -
Prepaid items - - -
Interfund loan receivable 700,000 - -
Contract for deed receivable - - -
Special assessments receivable - - 240,777
Total assets $1,373,103 $1,823,400 $240,777
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $117,096 $85,201 $ -
Due to other governmental units - - -
Contracts payable 179,926 22,156 -
Interfund loan payable - - 154,506
Unearned revenue - - -
Total liabilities 297,022 107,357 154,506
Deferred inflows of resources:
Unavailable revenue - - 240,777
Fund balance:
Nonspendable - - -
Restricted - 1,716,043 -
Assigned 1,076,081 - -
Unassigned - - (154,506)
Total fund balance 1,076,081 1,716,043 (154,506)
Total liabilities, deferred inflows
of resources, and fund balance $1,373,103 $1,823,400 $240,777
118
Statement 24
605 TH101
420 Street 603 Lyman Improvments -
Pavement 422 Old Public Boulevard Pioneer to Total Nonmajor
Management Works Building Improvements Flying Cloud
2017 2016
$287,780 $495,079 $465,152 $591,718 $4,243,276 $3,759,735
1,734 2,846 2,026 3,070 18,512 15,282
12,471 - 25,230 - 37,914 38,020
- - - - 78,867 143,336
586 - - - 5,626 7,977
- 989,954 - - 989,954 -
- - - - 700,000 700,000
- - - - - 1,252,869
- - - - 240,777 351,043
$302,571 $1,487,879 $492,408 $594,788 $6,314,926 $6,268,262
$3,068 $ - $ - $ - $205,365 $119,781
- - - - - 25,408
- - - - 202,082 351,203
- - - - 154,506 264,772
- - - 566,868 566,868 81,629
3,068 0 0 566,868 1,128,821 842,793
- - - - 240,777 356,568
- 989,954 - - 989,954 -
- - - - 1,716,043 1,904,962
299,503 497,925 492,408 27,920 2,393,837 3,428,711
- - - - (154,506) (264,772)
299,503 1,487,879 492,408 27,920 4,945,328 5,068,901
$302,571 $1,487,879 $492,408 $594,788 $6,314,926 $6,268,262
Capital Project Funds
119
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120
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, 2017
With Comparative Totals For The Year Ended December 31, 2016
410 Park 413 Transit Station 420 Street
400 Capital Acquisition and Assessment Pavement
Replacement Fund Development Fund Management
Revenues:
General property taxes $800,000 $ - $ - $93,000
Tax increment collections - - - -
Licenses and permits - 426,089 - -
Intergovernmental 4,000 - - 341,509
Special assessments - - 131,329 -
Investment earnings 3,101 12,198 - 3,003
Contributions and donations 3,173 - - -
Refunds and reimbursements 7,143 - - 57
Other 4,800 - - -
Total revenues 822,217 438,287 131,329 437,569
Expenditures:
Current:
General government 660,665 - - -
Public safety 67,097 - - -
Public works 22,381 - - 399,450
Parks and recreation 160,525 22,824 - -
Community development - - - -
Capital outlay:
General government 30,838 - - -
Public safety - - - -
Public works 27,202 - - -
Parks and recreation 121,646 255,346 - -
Decertification of TIF district - - - -
Total expenditures 1,090,354 278,170 0 399,450
Revenues over (under) expenditures (268,137) 160,117 131,329 38,119
Other financing sources (uses):
Sale of capital assets 19,286 - - -
Transfers in 120,000 50,142 - -
Transfers out - - (21,063) -
Total other financing sources (uses) 139,286 50,142 (21,063) 0
Net change in fund balance (128,851) 210,259 110,266 38,119
Fund balance - January 1 1,204,932 1,505,784 (264,772) 261,384
Fund balance - December 31 $1,076,081 $1,716,043 ($154,506) $299,503
121
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2017
With Comparative Totals For The Year Ended December 31, 2016
462 Downtown
422 Old Public 461 Gateway Transit Station
Works Building Place TIF #9 TIF # 10
Revenues:
General property taxes $ - $ - $ -
Tax increment collections - - -
Licenses and permits - - -
Intergovernmental - - -
Special assessments - - -
Investment earnings 4,927 - -
Contributions and donations - - -
Refunds and reimbursements - - -
Other 38,144 - -
Total revenues 43,071 0 0
Expenditures:
Current:
General government - - -
Public safety - - -
Public works 23,925 - -
Parks and recreation - - -
Community development - 10,650 -
Capital outlay:
General government - - -
Public safety - - -
Public works - - -
Parks and recreation - - -
Decertification of TIF district - 29,496 66
Total expenditures 23,925 40,146 66
Revenues over (under) expenditures 19,146 (40,146) (66)
Other financing sources (uses):
Sale of capital assets - - -
Transfers in - - -
Transfers out - - -
Total other financing sources (uses) 0 0 0
Net change in fund balance 19,146 (40,146) (66)
Fund balance - January 1 1,468,733 40,146 66
Fund balance - December 31 $1,487,879 $0 $0
122
Statement 25
Page 2 of 2
605 TH101
491 494 603 Lyman 604 TH101 Improvments -
Entertainment North Bay Boulevard Improvements - Pioneer to
TIF # 4 TIF # 5 Improvements Lyman to Pioneer Flying Cloud
2017 2016
$ - $ - $ - $ - $ - $893,000 $893,000
- - - - - - 111,761
- - - - - 426,089 511,080
- - - - 337,783 683,292 426,474
- - - - - 131,329 146,505
- - 3,508 - 5,316 32,053 25,963
- - - - - 3,173 -
- - 7,344 - - 14,544 76,209
- - - - 14,400 57,344 80,867
0 0 10,852 0 357,499 2,240,824 2,271,859
- - - - - 660,665 215,283
- - - - - 67,097 383,772
- - - - 24,300 470,056 761,167
- - - - - 183,349 199,598
375 26,030 - - - 37,055 47,875
- - - - - 30,838 62,713
- - - - - - 308,104
- - - - - 27,202 95,757
- - - - - 376,992 1,153,763
- 332,561 - - - 362,123 139,594
375 358,591 0 0 24,300 2,215,377 3,367,626
(375) (358,591)10,852 0 333,199 25,447 (1,095,767)
- - - - - 19,286 54,994
- - - - 2,798 172,940 152,546
- - - (2,798) (320,183) (344,044) (118,999)
0 0 0 (2,798) (317,385) (151,818)88,541
(375) (358,591)10,852 (2,798)15,814 (126,371) (1,007,226)
375 358,591 481,556 2,798 12,106 5,071,699 6,076,127
$0 $0 $492,408 $0 $27,920 $4,945,328 $5,068,901
Reconciliation of beginning fund balance to prior year ending fund balance:
Prior year ending fund balance reported above $5,068,901
Reclassification of TH 101 Improvements - Lyman to Pioneer fund balance, now presented as a nonmajor fund 2,798
Fund balance - January 1, 2017 as reported on this statement $5,071,699
Total Nonmajor
Capital Project Funds
123
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, 2017
With Comparative Actual Amounts For The Year Ended December 31, 2016
2016
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues:
Investment earnings $ - $ - $325 $325 $265
Contributions and donations 40,000 40,000 41,603 1,603 36,527
Refunds and reimbursements - - 104 104 -
Total revenues 40,000 40,000 42,032 2,032 36,792
Expenditures:
Current:
Public safety:
Contractual services 43,500 43,500 51,031 (7,531) 16,670
Capital outlay - - 2,950 (2,950) 5,900
Total expenditures 43,500 43,500 53,981 (10,481) 22,570
Revenues over (under) expenditures (3,500) (3,500) (11,949) (8,449) 14,222
Other financing sources (uses):
Transfers in - - 831 831 -
Net change in fund balance ($3,500) ($3,500) (11,118) ($7,618) 14,222
Fund balance - January 1 52,590 38,368
Fund balance - December 31 $41,472 $52,590
2017
Budgeted Amounts
124
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, 2017
With Comparative Actual Amounts For The Year Ended December 31, 2016
2016
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues:
Charges for services $8,900 $8,900 $4,150 ($4,750) $25,850
Investment earnings 100 100 279 179 167
Contributions and donations - - 349 349 -
Total revenues 9,000 9,000 4,778 (4,222) 26,017
Expenditures:
Current:
General government:
Contractual services 6,500 6,500 1,963 4,537 1,105
Total expenditures 6,500 6,500 1,963 4,537 1,105
Revenues over (under) expenditures $2,500 $2,500 2,815 $315 24,912
Fund balance - January 1 34,411 9,499
Fund balance - December 31 $37,226 $34,411
2017
Budgeted Amounts
125
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, 2017
With Comparative Actual Amounts For The Year Ended December 31, 2016
2016
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues:
Franchise and PEG fees $200,000 $200,000 $187,802 ($12,198) $194,082
Refunds and reimbursements - - - - 249
Investment earnings 2,000 2,000 3,326 1,326 2,371
Total revenues 202,000 202,000 191,128 (10,872) 196,702
Expenditures:
Current:
General government:
Personal services 104,700 104,700 107,267 (2,567) 102,350
Materials and supplies 5,000 5,000 - 5,000 4,557
Contractual services 26,700 26,700 31,093 (4,393) 64,765
Capital outlay 15,000 15,000 - 15,000 -
Total expenditures 151,400 151,400 138,360 13,040 171,672
Revenues over expenditures $50,600 $50,600 52,768 $2,168 25,030
Fund balance - January 1 436,725 411,695
Fund balance - December 31 $489,493 $436,725
2017
Budgeted Amounts
126
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.
127
CITY OF CHANHASSEN, MINNESOTA
COMBINING STATEMENT OF NET POSITION Statement 29
AGENCY FUNDS
December 31, 2017
With Comparative Totals For December 31, 2016
815 Escrow
Fund
913 Moon
Valley
Restoration
Fund
2017 2016
Assets:
Cash and investments $2,516,891 $87,088 $2,603,979 $1,639,041
Accounts receivable - - - 10,905
Total assets $2,516,891 $87,088 $2,603,979 $1,649,946
Liabilities:
Accounts payable $ - $ - $ - $10,905
Escrow deposits payable 2,516,891 87,088 2,603,979 1,639,041
Total liabilities $2,516,891 $87,088 $2,603,979 $1,649,946
Totals
128
CITY OF CHANHASSEN, MINNESOTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Statement 30
AGENCY FUNDS
For The Year Ended December 31, 2017
Balance Balance
01/01/17 Additions Deletions 12/31/17
Escrow Fund
Assets:
Cash and investments $1,552,083 $1,448,658 $483,850 $2,516,891
Accounts receivable 10,905 - 10,905 -
Total assets $1,562,988 $1,448,658 $494,755 $2,516,891
Liabilities:
Accounts payable $10,905 $ - $10,905 $ -
Escrow deposits payable 1,552,083 1,448,658 483,850 2,516,891
Total liabilities $1,562,988 $1,448,658 $494,755 $2,516,891
Moon Valley Restoration Fund
Assets:
Cash and investments $86,958 $130 $ - $87,088
Liabilities:
Escrow deposits payable $86,958 $130 $ - $87,088
Totals - All Agency Funds
Assets:
Cash and investments $1,639,041 $1,448,788 $483,850 $2,603,979
Accounts receivable 10,905 - 10,905 -
Total assets $1,649,946 $1,448,788 $494,755 $2,603,979
Liabilities:
Accounts payable $10,905 $ - $10,905 $ -
Escrow deposits payable 1,639,041 1,448,788 483,850 2,603,979
Total liabilities $1,649,946 $1,448,788 $494,755 $2,603,979
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130
III. STATISTICAL SECTION (UNAUDITED)
131
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132
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
City’s financial performance and well-being have changed over time.
Tables 1-4
Revenue Capacity
These tables contain information to help the reader assess the City’s most
significant local revenue source, the property tax.
Tables 5-8
Debt Capacity
These tables present information to help the reader assess the affordability of the
City’s current levels of outstanding debt and the City’s ability to issue additional
debt in the future.
Tables 9-13
Demographic and Economic
These tables offer demographic and economic indicators to help the reader
understand the environment within which the City’s financial activities take
place.
Tables 14-15
Operating Information
These tables contain service and infrastructure data to help the reader
understand how the information in the City’s financial report relates to the
services the City provides and the activities it performs.
Tables 16-18
Sources: Unless otherwise noted, the information in these tables is derived from the
comprehensive financial reports for the relevant year.
133
CITY OF CHANHASSEN, MINNESOTA
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2008 2009 2010 2011
Governmental activities:
Net investment in capital assets $70,611,368 $72,106,198 $73,272,450 $70,866,708
Restricted:
Debt service 12,165,653 6,461,780 9,655,951 5,709,727
Park improvements - - 2,088,246 2,516,027
Tax increment purposes 129,033 195,265 319,864 338,029
Other purposes - - 121,137 168,147
Unrestricted 15,664,273 15,066,634 8,722,413 13,363,047
Total governmental activities net position $98,570,327 $93,829,877 $94,180,061 $92,961,685
Business-type activities:
Net investment in capital assets $55,541,752 $55,496,919 $57,028,340 $55,430,138
Unrestricted 13,117,323 12,129,049 10,259,836 9,484,947
Total business-type activities net position $68,659,075 $67,625,968 $67,288,176 $64,915,085
Primary government:
Net investment in capital assets $126,153,120 $127,603,117 $130,300,790 $126,296,846
Restricted:
Debt service 12,165,653 6,461,780 9,655,951 5,709,727
Park improvements - - 2,088,246 2,516,027
Tax increment purposes 129,033 195,265 319,864 338,029
Other purposes - - 121,137 168,147
Unrestricted 28,781,596 27,195,683 18,982,249 22,847,994
Total primary government net position $167,229,402 $161,455,845 $161,468,237 $157,876,770
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.
134
Table 1
2012 2013 2014 2015 2016 2017
$69,987,563 $71,260,946 $71,867,072 $71,225,523 $72,588,940 $70,255,784
5,905,553 6,595,927 3,441,810 3,455,172 1,390,127 1,400,411
1,650,118 1,714,972 1,751,739 1,896,923 1,505,784 1,716,043
471,930 711,287 330,809 475,357 399,178 -
142,747 165,838 176,089 154,810 164,751 153,633
15,094,966 14,361,011 14,512,772 9,510,105 10,221,704 10,028,355
$93,252,877 $94,809,981 $92,080,291 $86,717,890 $86,270,484 $83,554,226
$54,475,353 $52,541,451 $54,111,608 $55,704,478 $57,478,975 $57,212,106
10,631,342 11,391,338 10,467,201 10,032,731 10,516,316 10,126,315
$65,106,695 $63,932,789 $64,578,809 $65,737,209 $67,995,291 $67,338,421
$124,462,916 $123,802,397 $125,978,680 $126,930,001 $130,067,915 $127,467,890
5,905,553 6,595,927 3,441,810 3,455,172 1,390,127 1,400,411
1,650,118 1,714,972 1,751,739 1,896,923 1,505,784 1,716,043
471,930 711,287 330,809 475,357 399,178 -
142,747 165,838 176,089 154,810 164,751 153,633
25,726,308 25,752,349 24,979,973 19,542,836 20,738,020 20,154,670
$158,359,572 $158,742,770 $156,659,100 $152,455,099 $154,265,775 $150,892,647
135
CITY OF CHANHASSEN, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2008 2009 2010 2011
Expenses
Governmental activities:
General government $2,469,055 $2,597,147 $2,898,608 $2,565,486
Public safety 3,062,941 3,158,465 3,227,396 3,061,122
Public works 6,220,816 9,123,165 6,308,023 8,607,534
Parks and recreation 3,025,987 3,663,124 3,046,718 2,921,593
Community development 704,979 628,339 879,048 799,379
Interest and fees on long-term debt 652,015 1,031,567 880,384 838,421
Total governmental activities expenses 16,135,793 20,201,807 17,240,177 18,793,535
Business-type activities:
Water 3,234,139 3,311,129 3,443,583 3,581,955
Sewer 3,072,588 3,276,042 3,252,510 3,317,329
Surface water management 1,121,197 1,093,165 1,202,556 1,173,115
Total business-type activities expenses 7,427,924 7,680,336 7,898,649 8,072,399
Total primary government expenses $23,563,717 $27,882,143 $25,138,826 $26,865,934
Program revenues
Governmental activities:
Charges for services:
Licenses and permits $1,810,545 $1,085,754 $1,331,374 $1,381,326
Charges for services 1,115,903 1,064,173 1,189,560 1,047,726
Fines and forfeits 124,633 122,496 123,609 126,571
Operating grants and contributions 346,023 363,540 414,654 692,428
Capital grants and contributions 3,221,636 1,265,287 4,175,655 1,646,573
Total governmental activities program revenues 6,618,740 3,901,250 7,234,852 4,894,624
Business-type activities:
Charges for services:
Water 2,408,379 2,689,170 2,424,634 2,611,327
Sewer 2,187,209 2,378,111 2,365,358 2,297,677
Surface water management 479,318 512,761 538,688 534,473
Operating grants and contributions 36,350 5,332 2,984 12,589
Capital grants and contributions 1,527,624 1,684,982 1,593,289 1,086,655
Total business-type activities program revenues 6,638,880 7,270,356 6,924,953 6,542,721
Total primary government program revenues $13,257,620 $11,171,606 $14,159,805 $11,437,345
136
Table 2
Page 1 of 2
2012 2013 2014 2015 2016 2017
$2,690,853 $2,630,405 $3,099,004 $2,775,663 $2,887,111 $3,230,517
3,176,441 3,313,694 3,416,088 3,826,376 3,973,031 3,969,540
7,743,147 14,224,453 9,604,525 11,153,322 7,591,530 8,161,048
3,114,340 2,919,183 3,062,592 2,952,985 3,278,139 3,227,236
646,262 523,651 1,043,848 527,268 689,448 918,962
725,881 588,352 465,935 409,676 493,746 408,273
18,096,924 24,199,738 20,691,992 21,645,290 18,913,005 19,915,576
3,646,787 4,702,686 3,347,965 3,290,265 4,422,789 3,866,810
3,235,324 3,548,200 3,171,696 3,297,128 3,254,619 3,746,880
1,347,345 1,334,173 1,491,763 1,328,144 1,388,979 1,538,468
8,229,456 9,585,059 8,011,424 7,915,537 9,066,387 9,152,158
$26,326,380 $33,784,797 $28,703,416 $29,560,827 $27,979,392 $29,067,734
$1,595,358 $2,113,770 $1,691,634 $1,565,900 $1,653,858 $1,641,140
1,394,356 1,396,068 1,149,372 1,153,779 1,209,882 1,257,486
119,997 99,984 100,516 117,189 114,367 128,394
404,663 472,298 532,337 823,943 735,840 902,871
2,953,496 10,718,999 3,296,748 5,812,825 3,705,857 2,425,333
6,467,870 14,801,119 6,770,607 9,473,636 7,419,804 6,355,224
3,146,886 2,829,226 2,573,027 2,611,895 2,717,285 2,921,936
2,434,370 2,358,854 2,472,536 2,525,731 2,619,882 2,764,674
590,323 615,896 639,087 668,971 684,199 709,508
121,925 63,112 210,857 45,130 72,007 45,109
1,861,689 2,852,437 2,633,793 3,140,823 5,199,139 1,678,595
8,155,193 8,719,525 8,529,300 8,992,550 11,292,512 8,119,822
$14,623,063 $23,520,644 $15,299,907 $18,466,186 $18,712,316 $14,475,046
137
CITY OF CHANHASSEN, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2008 2009 2010 2011
Net (expense) revenue:
Governmental activities ($9,517,053) ($16,300,557) ($10,005,325) ($13,898,911)
Business-type activities (789,044) (409,980) (973,696) (1,529,678)
Total primary government net (expense) revenue (10,306,097) (16,710,537) (10,979,021) (15,428,589)
General revenues and other changes in net position
Governmental activities:
Property taxes 9,651,758 9,921,598 10,014,684 9,849,882
Tax increment collections 574,101 473,674 539,523 566,045
Grants and contributions not restricted to specific programs 108,039 27,612 45,767 28,304
Unrestricted investment earnings 1,150,993 357,953 222,719 505,541
Gain on sale of capital assets 32,195 4,524 20,727 44,000
Special item - sale of public works building - - - -
Transfers 1,112,623 774,746 (487,911) 1,061,763
Total governmental activities 12,629,709 11,560,107 10,355,509 12,055,535
Business-type activities:
Unrestricted investment earnings 797,079 141,070 114,349 211,707
Miscellaneous 22,464 10,549 33,644 6,643
Gain on sale of capital assets - - - -
Transfers (1,112,623) (774,746) 487,911 (1,061,763)
Total business-type activities (293,080) (623,127) 635,904 (843,413)
Total primary government $12,336,629 $10,936,980 $10,991,413 $11,212,122
Change in net position:
Governmental activities $3,112,656 ($4,740,450) $350,184 ($1,843,376)
Business-type activities (1,082,124) (1,033,107) (337,792) (2,373,091)
Total primary government $2,030,532 ($5,773,557) $12,392 ($4,216,467)
Note: GASB 65 was implemented in 2013. Bond issuance costs are now expensed in the year of issuance. Expenses
for years prior to 2013 were not restated.
Note: GASB 68 was implemented in 2015. Pension expense for years prior to 2015 were not restated.
138
Table 2
Page 2 of 2
2012 2013 2014 2015 2016 2017
($11,629,054) ($9,398,619) ($13,921,385) ($12,171,654) ($11,493,201) ($13,560,352)
(74,263) (865,534) 517,876 1,077,013 2,226,125 (1,032,336)
(11,703,317) (10,264,153) (13,403,509) (11,094,641) (9,267,076) (14,592,688)
10,064,176 10,059,324 10,482,273 10,536,216 10,643,917 10,826,116
533,011 545,906 307,940 200,338 111,761 -
20,071 19,941 19,736 21,679 19,754 19,753
173,523 (14,764)183,602 176,731 156,202 164,393
56,610 37,720 191,755 66,248 41,129 38,254
1,246,275 - - - - -
(173,420)307,596 6,389 (612,078)73,032 (204,422)
11,920,246 10,955,723 11,191,695 10,389,134 11,045,795 10,844,094
92,453 (776)134,533 132,406 79,765 171,044
- - - - - -
- - - 57,510 25,224 -
173,420 (307,596)(6,389)612,078 (73,032)204,422
265,873 (308,372)128,144 801,994 31,957 375,466
$12,186,119 $10,647,351 $11,319,839 $11,191,128 $11,077,752 $11,219,560
$291,192 $1,557,104 ($2,729,690) ($1,782,520) ($447,406) ($2,716,258)
191,610 (1,173,906)646,020 1,879,007 2,258,082 (656,870)
$482,802 $383,198 ($2,083,670)$96,487 $1,810,676 ($3,373,128)
139
CITY OF CHANHASSEN, MINNESOTA
FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2008 2009 2010 2011
General Fund:
Reserved $21,173 $46,750 $55,826 $ -
Unreserved:
Designated 3,586,750 3,690,000 3,754,000 -
Undesignated 1,273,796 1,137,109 1,459,792 -
Nonspendable - - - 17,280
Unassigned - - - 5,278,118
Total general fund $4,881,719 $4,873,859 $5,269,618 $5,295,398
All other governmental funds:
Reserved $6,671,271 $2,950,284 $5,642,029 $ -
Unreserved:
Designated:
Special revenue funds 525,692 668,992 2,082,929 -
Capital project funds 18,732,625 11,418,006 7,487,198 -
Undesignated:
Debt service funds 237,721 342,877 356,724 -
Capital project funds (11,584) (2,001,149) (786,209) -
Nonspendable - - - 12,662
Restricted - - - 10,426,585
Assigned - - - 6,561,411
Unassigned - - - (730,120)
Total all other governmental funds $26,155,725 $13,379,010 $14,782,671 $16,270,538
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.
140
Table 3
2012 2013 2014 2015 2016 2017
$ - $ - $ - $ - $ - $ -
- - - - - -
- - - - - -
57,137 16,741 58,333 72,114 25,832 81,032
5,434,641 5,274,584 5,550,732 5,258,232 5,286,880 5,307,088
$5,491,778 $5,291,325 $5,609,065 $5,330,346 $5,312,712 $5,388,120
$ - $ - $ - $ - $ - $ -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
1,373,146 1,327,068 1,289,575 1,253,705 - 990,723
6,359,422 9,181,230 5,724,419 5,824,354 8,673,981 8,458,576
6,731,400 6,366,292 5,951,507 5,586,353 7,806,958 6,602,135
(646,856)(559,515)(475,352)(372,509)(264,772)(154,506)
$13,817,112 $16,315,075 $12,490,149 $12,291,903 $16,216,167 $15,896,928
141
CITY OF CHANHASSEN, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Revenues: 2008 2009 2010 2011
General property taxes $9,582,333 $9,834,389 $10,141,168 $9,760,052
Tax increment collections $574,101 473,674 539,523 566,045
Licenses and permits 1,810,545 1,085,754 1,331,374 1,381,326
Intergovernmental 2,147,970 397,438 401,550 1,425,525
Special assessments 623,893 540,151 790,426 1,242,040
Charges for services 841,209 950,760 923,550 795,616
Fines and forfeits 124,633 122,496 123,609 126,571
Investment earnings 1,150,993 357,953 222,719 505,541
Contributions and donations 43,410 47,206 58,016 50,685
Refunds and reimbursements 51,247 61,707 132,616 117,441
Other 238,030 170,688 213,272 846,523
Total revenues 17,188,364 14,042,216 14,877,823 16,817,365
Expenditures:
Current:
General government 2,102,512 2,070,698 2,525,326 2,162,479
Public safety 2,885,296 2,979,044 3,077,038 2,896,644
Public works 2,786,397 5,710,804 2,739,704 4,779,067
Parks and recreation 1,933,353 2,487,985 1,901,564 1,906,489
Community development 468,819 527,919 698,818 502,916
Capital outlay:
General government 233,600 143,663 473,753 129,535
Public safety 54,284 55,152 65,667 52,645
Public works 4,677,179 8,179,324 3,995,444 2,122,641
Parks and recreation 642,508 235,292 490,737 309,524
Debt service:
Principal 2,689,552 2,553,002 2,370,000 1,025,000
Interest and paying agent fees 874,848 920,529 888,843 853,152
Bond issuance costs 93,811 73,182 46,505 -
Developer assistance 226,055 90,354 176,643 298,216
Total expenditures 19,668,214 26,026,948 19,450,042 17,038,308
Revenues over (under) expenditures (2,479,850) (11,984,732) (4,572,219) (220,943)
Other financing sources (uses):
Bonds issued 7,550,000 6,020,000 5,200,000 -
Loans issued 24,839 - - -
Bond premium - 226,991 35,964 -
Redemption of refunding bonds - (8,387,123) - -
Transfers in 2,646,011 1,324,015 1,105,000 1,734,590
Transfers out - - - -
Sale of capital assets 10,695 16,274 30,675 -
Special item - sale of old public works building - - - -
Total other financing sources (uses)10,231,545 (799,843) 6,371,639 1,734,590
Net change in fund balance $7,751,695 ($12,784,575) $1,799,420 $1,513,647
Debt service as a percentage of
noncapital expenditures 26.4%20.5%23.2%13.3%
Debt service as percentage of
total expenditures 18.6%13.6%17.0%11.0%
142
Table 4
2012 2013 2014 2015 2016 2017
$10,143,011 $10,176,483 $10,489,350 $10,529,994 $10,640,315 $10,820,682
533,011 545,906 307,940 200,338 111,761 -
1,595,358 2,113,770 1,691,634 1,565,900 1,653,858 1,641,140
2,151,785 7,971,339 2,553,062 4,897,139 974,917 2,149,875
1,667,881 3,193,078 854,966 1,664,424 820,026 842,523
880,920 907,414 798,578 799,543 846,540 838,498
119,997 99,984 100,516 117,189 114,367 128,394
173,523 (14,764) 183,602 176,731 156,202 164,393
36,893 33,159 66,918 78,175 60,802 73,734
253,030 235,363 77,871 85,955 150,093 174,853
264,038 259,703 265,119 267,622 276,067 264,114
17,819,447 25,521,435 17,389,556 20,383,010 15,804,948 17,098,206
2,326,490 2,274,640 2,350,437 2,391,195 2,479,271 2,871,267
3,013,980 3,179,446 3,258,363 3,431,541 3,713,146 3,602,897
3,726,158 10,628,140 5,352,221 7,537,376 3,961,016 4,617,523
2,154,714 2,002,604 2,164,703 2,068,532 2,256,314 2,395,554
621,295 522,538 1,034,047 515,382 659,276 940,000
75,226 87,707 34,080 - 62,713 30,838
39,314 74,144 23,980 122,143 314,004 2,950
3,502,371 2,482,728 2,894,237 2,566,867 459,142 2,595,012
1,310,366 627,214 485,107 476,323 1,153,763 376,992
5,100,000 1,590,000 4,190,000 1,810,000 1,795,000 670,000
814,621 599,487 518,722 439,470 483,533 433,925
- - - - - -
21,108 - - - - -
22,705,643 24,068,648 22,305,897 21,358,829 17,337,178 18,536,958
(4,886,196)1,452,787 (4,916,341)(975,819) (1,532,230) (1,438,752)
- - - - 4,805,000 -
- - - - - -
- - - - 239,773 -
- - - - - -
1,203,031 888,711 1,783,719 2,158,844 1,347,883 1,924,157
(48,881)(43,988)(676,095) (1,701,005) (1,044,114)(748,522)
- - 301,531 41,015 90,318 19,286
1,475,000 - - - - -
2,629,150 844,723 1,409,155 498,854 5,438,860 1,194,921
($2,257,046) $2,297,510 ($3,507,186)($476,965) $3,906,630 ($243,831)
33.3%10.5%25.0%12.4%14.8%7.1%
26.0%9.1%21.1%10.5%13.1%6.0%
143
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
2008 $29,821,326 $208,789 $9,135,911 $435,603 $39,601,629
2009 30,741,292 190,844 9,665,269 471,749 41,069,154
2010 30,301,115 170,857 10,229,329 477,663 41,178,964
2011 28,951,885 131,751 9,778,491 511,185 39,373,312
2012 27,198,238 137,012 9,149,904 520,743 37,005,897
2013 26,970,557 105,160 8,927,095 541,612 36,544,424
2014 28,725,937 132,728 8,984,174 613,105 38,455,944
2015 32,778,287 153,500 9,205,053 620,620 42,757,460
2016 33,790,483 222,144 9,508,063 669,890 44,190,580
2017 34,470,607 278,224 9,910,242 764,420 45,423,493
Sources: Carver County Taxpayer Services and Hennepin County
144
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
($479,494) ($1,498,894) $37,623,241 23.71300 $3,394,928,100 1.11%
(473,702) (1,627,749) 38,967,703 22.99300 3,501,886,800 1.11%
(532,007) (1,861,362) 38,785,595 25.18300 3,491,841,800 1.11%
(509,863) (1,998,912) 36,864,537 26.60256 3,350,141,800 1.10%
(469,759) (2,038,437) 34,497,701 28.53211 3,153,275,000 1.09%
(435,999) (1,804,630) 34,303,795 28.42838 3,118,066,700 1.10%
(252,884) (1,971,928) 36,231,132 27.23862 3,294,605,000 1.10%
(267,337) (1,896,611) 40,593,512 24.63317 3,686,777,200 1.10%
(103,638) (2,119,400) 41,967,542 24.25249 3,802,904,100 1.10%
- (2,055,461) 43,368,032 23.85464 3,899,829,200 1.11%
145
CITY OF CHANHASSEN, MINNESOTA
DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES Table 6
Last Ten Fiscal Years
Fiscal Operational Debt City School Carver
Year and Capital Service Total District #112 County Other Total
Tax capacity rates (per $100 of adjusted tax capacity value)
2008 19.110 4.603 23.713 35.970 37.563 5.547 102.793
2009 18.864 4.129 22.993 35.505 38.033 5.458 101.989
2010 20.722 4.461 25.183 35.840 39.509 5.639 106.171
2011 21.915 4.688 26.603 40.236 41.752 6.021 114.610
2012 23.701 4.831 28.532 44.382 43.562 6.681 123.158
2013 23.635 4.793 28.428 45.319 46.115 6.603 126.467
2014 22.708 4.531 27.239 44.917 45.211 6.873 124.239
2015 21.532 3.101 24.633 39.120 40.488 6.270 110.512
2016 21.314 2.938 24.252 39.245 38.880 6.417 108.795
2017 21.536 2.317 23.853 37.005 38.851 6.565 106.274
Source: Carver County Taxpayer Services
(1)The City Direct Rate is the Urban Based Rate, not including market value levies.
City Direct Rate(1)Overlapping Rates
146
CITY OF CHANHASSEN, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS Table 7
Current Year and Nine Years Ago
Percentage Percentage
Taxable of Total City Taxable of Total City
Capacity Capacity Capacity Capacity
Taxpayer Value Rank Value Value Rank Value
Istar Minnesota LLC $430,910 1 1.0% $326,308 3 0.9%
SGO MN West Village LLC 424,776 2 1.0% - -
Northern States Power Co 363,530 3 0.8% 213,890 6 0.6%
Rosemount Inc 323,340 4 0.7% 396,692 1 1.1%
LTF Real Estate Company Inc 313,164 5 0.7% 227,232 4 0.6%
Prince R Nelson 248,188 6 0.6% - -
Lake Susan Apartment Homes 222,368 7 0.5% - -
Centerpoint Energy Minnegasco 212,848 8 0.5% - -
James Campbell Company LLC 209,138 9 0.5% - -
Target Corporation T-0862 208,488 10 0.5% 203,224 7 0.5%
IRET Properties - - 351,170 2 0.9%
DRF Chanhassen Medical Bldg - - 220,360 5 0.6%
Park Avenue Lofts LLC - - 193,654 8 0.5%
Market Square Assoc Ltd Partnership - - 175,392 9 0.5%
McGlynn Bakeries Inc #366 - - 167,250 10 0.4%
Total $2,956,750 6.7% $2,475,172 6.6%
Total All Property $44,017,949 $37,484,401
Source: Carver County Taxpayer Services
20082017
147
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148
CITY OF CHANHASSEN, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS Table 8
Last Ten Fiscal Years
Fiscal Taxes Collections
Year Levied in
Ended For The Percentage Subsequent Percentage
December 31, Fiscal Year Amount of Levy Years Amount of Levy
2008 $9,834,965 $9,555,489 97.2%$146,761 $9,702,249 98.7%
2009 10,074,565 9,668,713 96.0%158,526 9,827,239 97.5%
2010 10,213,190 9,918,528 97.1%(18,413) 9,900,115 96.9%
2011 10,267,390 9,739,125 94.9%185,801 9,924,926 96.7%
2012 10,153,690 10,005,877 98.5%51,236 10,057,113 99.0%
2013 10,195,890 10,105,393 99.1%19,741 10,125,135 99.3%
2014 10,334,140 10,269,518 99.4%25,851 10,295,369 99.6%
2015 10,484,021 10,446,765 99.6%21,548 10,468,313 99.9%
2016 10,629,621 10,564,815 99.4%19,223 10,584,038 99.6%
2017 10,795,121 10,718,876 99.3% - 10,718,876 99.3%
Source: City Finance Department
Fiscal Year of the Levy
Collected Within The
Total Collections to Date
149
CITY OF CHANHASSEN, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
General General
Fiscal Obligation Revenue Tax Increment Improvement
Year Bonds Bonds Bonds Bonds
2008 $13,905,000 $435,000 $1,015,000 $7,155,000
2009 13,045,000 335,000 960,000 6,625,000
2010 16,860,000 230,000 900,000 5,805,000
2011 16,195,000 120,000 840,000 5,615,000
2012 11,475,000 - 775,000 5,420,000
2013 10,155,000 - 705,000 5,220,000
2014 9,550,000 - 635,000 1,705,000
2015 8,925,000 - - 1,155,000
2016 13,313,788 - - -
2017 12,627,803 - - -
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1)Information pertaining to Chanhassen Personal Income is not available, information for Carver County was
included instead.
(a) Information not available
Governmental Activities
150
Table 9
Business-Type Bonded Debt
Activities Per Total
Carver County
Other G.O. Revenue Debt Personal
Debt Bonds Total Debt Per Capita Income(1)
$3,375,125 $12,415,000 $38,300,125 $1,564 0.8%
- 11,695,000 32,660,000 1,322 0.7%
- 10,955,000 34,750,000 1,514 0.7%
- 20,077,339 42,847,339 1,849 0.9%
- 20,578,313 38,248,313 1,629 0.7%
- 16,324,287 32,404,287 1,353 0.6%
- 10,045,261 21,935,261 899 0.4%
- 9,256,235 19,336,235 784 0.3%
- 13,926,719 27,240,507 1,092 0.4%
- 23,379,318 36,007,121 1,425 (a)
151
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
2008 $13,905,000 $1,015,000 $7,155,000 $12,415,000 $34,490,000 $12,165,653 $22,324,347 59.56%912
2009 13,045,000 960,000 6,625,000 11,695,000 32,325,000 6,461,780 25,863,220 66.29% 1,047
2010 16,860,000 900,000 5,805,000 10,955,000 34,520,000 9,217,254 25,302,746 64.55% 1,102
2011 16,195,000 840,000 5,615,000 20,077,339 42,727,339 16,998,401 25,728,938 68.61% 1,110
2012 11,475,000 775,000 5,420,000 20,578,313 38,248,313 13,020,206 25,228,107 71.80% 1,074
2013 10,155,000 705,000 5,220,000 16,324,287 32,404,287 10,266,366 22,137,921 63.62%924
2014 9,550,000 635,000 1,705,000 10,045,261 21,935,261 3,441,810 18,493,451 50.09%758
2015 8,925,000 - 1,155,000 9,256,235 19,336,235 3,455,172 15,881,063 38.60%644
2016 13,313,788 - - 13,926,719 27,240,507 6,418,913 20,821,594 48.72%834
2017 12,627,803 - - 23,379,318 36,007,121 6,413,214 29,593,907 67.23% 1,171
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
152
CITY OF CHANHASSEN, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Table 11
December 31, 2017
Estimated
Estimated Share of
Debt Percentage Overlapping
Governmental Unit Outstanding Applicable*Debt
Direct debt:
City of Chanhassen(1)$12,627,803 100.00% $12,627,803
Overlapping debt:
Eastern Carver County School District 170,605,000 37.74% 64,386,327
Eden Prairie Independent School District 53,008,080 0.94% 498,276
Carver County 20,990,000 31.98% 6,712,602
Hennepin County 911,083,511 0.05% 455,542
Hennepin Suburban Park District 45,784,829 0.07%32,049
Hennepin Regulatory Railroad Authority 26,942,546 0.07%18,860
Metropolitan Council 12,606,580 0.03%3,782
Subtotal - overlapping debt 1,241,020,546 72,107,438
Total direct and overlapping debt $1,253,648,349 $84,735,241
(1)Excludes debt related to the City's business-type activities.
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents
and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term
debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not
imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
*For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed
property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable
assessed value that is within the City's boundaries and dividing it by each unit's total taxable assessed value.
153
CITY OF CHANHASSEN, MINNESOTA
LEGAL DEBT MARGIN INFORMATION Table 12
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2017
Market value $3,899,829,200
Applicable percentage 3%
Debt limit 116,994,876
Debt applicable to limit:
Total bonded debt 36,007,121
Less:
Enterprise Fund debt (23,379,318)
Less:
Cash and investments in G.O. Bond Debt Service Fund (6,579,470)
6,048,333
Legal debt margin $110,946,543
Legal Debt Margin Calculation for Fiscal Years 2008 Through 2017
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
2008 24,481 $101,847,843 $11,924,438 $89,923,405 11.71% $487
2009 24,699 105,056,604 11,175,086 93,881,518 10.64% 452
2010 22,952 104,755,254 15,831,831 88,923,423 15.11% 690
2011 23,179 100,504,254 14,755,258 85,748,996 14.68% 637
2012 23,484 94,598,250 10,117,347 84,480,903 10.70% 431
2013 23,954 93,542,001 8,705,958 84,836,043 9.31% 363
2014 24,388 98,838,150 8,030,953 90,807,197 8.13% 329
2015 24,655 110,603,316 7,346,583 103,256,733 6.64% 298
2016 24,951 114,087,123 6,721,445 107,365,678 5.89% 269
2017 25,273 116,994,876 6,048,333 110,946,543 5.17% 239
154
CITY OF CHANHASSEN, MINNESOTA
PLEDGED REVENUE COVERAGE Table 13
Last Ten Fiscal Years
Special
Fiscal Assessment
Year Collections Principal Interest Coverage
2008 $84,814 $1,300,000 $287,727 0.053
2009 74,575 1,220,000 142,963 0.055
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 - - - 0.000
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Improvement bonds with a designated revenue source of special assessments were paid off in 2016.
Improvement Bonds
Debt Service
155
CITY OF CHANHASSEN, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS Table 14
Last Ten Fiscal Years
Carver County Carver County
Chanhassen Carver County Personal Per Capita
Fiscal Chanhassen Unemployment Unemployment Income Personal
Year Population(1)Rate(2)Rate(2)(Thousands)(3)Income(3)
2008 24,481 3.6%4.9%$4,700,313 $52,924
2009 24,699 5.8%7.2%4,443,704 49,242
2010 22,952 6.1%6.8%4,642,812 50,796
2011 23,179 4.9%5.5%5,034,748 54,233
2012 23,484 4.5%4.8%5,433,676 57,869
2013 23,954 4.1%4.3%5,548,893 58,028
2014 24,388 3.4%3.6%5,944,605 61,081
2015 24,655 3.0%3.2%6,238,692 63,266
2016 24,951 3.1%3.3%6,464,183 64,473
2017 25,273 2.9%3.1%(a)(a)
Sources:(1)Federal Census Data and Chanhassen Planning Department
(2)State of Minnesota, Department of Employment and Economic Development
(3)U.S. Department of Commerce, Bureau of Economic Analysis
(a) Information not available
Note: Information pertaining to Chanhassen Personal Income and Per Capita Personal Income is not available, information
for Carver County was included instead.
156
CITY OF CHANHASSEN, MINNESOTA
PRINCIPAL EMPLOYERS Table 15
Current Year and Nine Years Ago
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment(1)Employees Rank Employment(1)
Lifetime Fitness 1,934 1 28.8%919 2 16.5%
Instant Web Companies 1,152 2 17.2%847 3 15.2%
Rosemount Inc 1,050 3 15.7% 1,475 1 26.5%
The Bernard Group 640 4 9.5% - -
Eastern Carver County Schools 450 5 6.7%165 10 3.0%
RR Donnelley 382 6 5.7%383 6 6.9%
General Mills 347 7 5.2%475 5 8.5%
Chanhassen Dinner Theatres 290 8 4.3%300 7 5.4%
Minnesota Landscape Arboretum 274 9 4.1%230 9 4.1%
Control Products 188 10 2.8% - -
Super Value Headquarters - - 500 4 9.0%
Byerly's - - 280 8 5.0%
Total 6,707 5,574
Source: Survey by City Administration and Finance Departments
(1)The statistic for total City employment is not available, therefore the percentage represents the percentage of
the top ten listed.
2017 2008
157
CITY OF CHANHASSEN, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program 2008 2009 2010
General government 13 13 13
Public safety 3 3 3
Public works 26 26 26
Parks & recreation 11 11 11
Community development 16 16 15
Total 69 69 68
Source: City Finance Department
Full-Time Equivalent Employees as of December 31,
158
Table 16
2011 2012 2013 2014 2015 2016 2017
13 13 13 13 13 13 13
3333322
26 26 26 26 26 27 29
11 11 11 11 11 12 13
15 14 14 14 14 16 16
68 67 67 67 67 70 73
Full-Time Equivalent Employees as of December 31,
159
CITY OF CHANHASSEN, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program 2008 2009 2010
Building:
Total permits issued 2,838 2,608 2,910
Total estimated value $124,885,965 $67,811,817 $65,046,933
Election:
Registered voters 16,544 16,544 15,326
Fire:
Average number of employees 45 45 45
General government:
Area of city - square miles 23.78 23.78 23.78
Average number of permanent full-time
employees (excluding fire department)69 69 68
Police:
Average number of employees 14 15 15
Number of crimes - MNCJRS(1)1,013 702 647
Number of crimes - NIBRS(1) - - -
Water:
Number of customers 7,039 7,427 7,620
Daily average consumption - gallons 3,200,000 3,642,410 2,698,559
Plant capacity - gallons 8,550,000 8,550,000 8,550,000
Source: Various City Departments
(1)Crime statistics in Minnesota had been reported for the last forty years utilizing Minnesota's Criminal Justice
Reporting System (MNCJRS). The Federal Bureau of Investigations has mandated that all states become National
Incident Based Reporting System (NIBRS) compliant by 2019. The Carver County Sheriff's Office transitioned to
NIBRS June 1, 2016.
Fiscal Year
160
Table 17
2011 2012 2013 2014 2015 2016 2017
3,397 3,285 3,201 3,076 3,266 2,891 2,981
$82,991,029 $83,531,808 $89,370,069 $80,591,941 $82,145,483 $73,881,121 $82,430,550
15,326 16,916 16,916 16,344 16,344 17,769 17,769
45 45 45 45 45 45 45
23.78 23.78 23.78 23.79 23.79 23.79 23.79
68 67 67 67 67 70 73
15 15 15 15 15 15 15
757 777 748 838 870 313 -
- - - - - 472 737
7,655 7,741 7,953 8,075 8,195 8,254 8,312
2,257,542 2,570,349 2,876,383 2,542,413 2,495,868 2,565,905 2,624,486
8,550,000 8,550,000 8,550,000 8,550,000 8,550,000 8,550,000 8,550,000
Fiscal Year
161
CITY OF CHANHASSEN, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program 2008 2009 2010
Fire:
Number of stations 2 2 2
Parks and recreation:
Acres of parks 383 383 396
Acres of open space 434 434 434
Number of shelter buildings 3 4 4
Number of picnic shelters 5 5 5
Number of playgrounds 26 26 26
Number of swimming beaches 6 6 5
Number of tennis courts 17 17 17
Number of outdoor pickleball courts - - -
Police:
Number of stations 1 1 1
Public works:
Miles of streets 107.0 110.9 111.9
Miles of sidewalks 28.4 31.1 31.9
Miles of trails 53.0 53.6 53.6
Sewer:
Miles of storm sewers 67.1 69.5 71.0
Miles of sanitary sewers 120.8 123.0 123.6
Number of lift stations 31 31 31
Water:
Miles of watermains 129.6 135.1 136.8
Number of wells 12 12 12
Source: Various City Departments
Fiscal Year
162
Table 18
2011 2012 2013 2014 2015 2016 2017
2222222
396 401 401 405 405 405 466
489 503 503 503 503 503 528
4444444
5567131518
26 26 27 27 27 27 27
5555555
17 15 15 15 15 15 16
- 2366610
1111111
112.0 112.6 113.5 113.7 113.9 116.5 116.5
31.9 31.9 31.9 32.0 32.0 34.0 34.0
56.1 56.4 58.6 59.2 59.9 62.4 62.4
74.5 75.3 76.5 77.0 78.8 84.3 84.5
123.7 123.9 124.3 124.5 125.3 128.2 128.2
31 31 31 31 31 31 31
137.8 138.0 139.1 139.3 140.6 145.5 145.5
12 12 12 12 12 13 13
Fiscal Year
163
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164
IV. OTHER INFORMATION (UNAUDITED)
165
CITY OF CHANHASSEN, MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS
December 31, 2017
Final
Interest Issue Maturity
Bonded indebtedness: Rates Date Date
General obligation bonds:
G.O. Capital Improvement Plan Bonds, Series 2008A 4.00%-4.60% 11/18/08 02/01/30
G.O. Library Refunding Bonds, Series 2010A 2.00%-3.10% 01/27/10 02/01/22
G.O. Bonds, Series 2016A 2.00%-3.00% 03/03/16 02/01/30
Total general obligation bonds
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
Total Enterprise Fund debt
Total City bonded indebtedness
166
Exhibit 1
Payable Payable Principal
Original January 1, December 31, Due in
Issue Payments 2017 Issued Payments 2017 2018
$7,550,000 $1,625,000 $5,925,000 $ - $310,000 $5,615,000 $5,615,000
3,660,000 1,300,000 2,360,000 - 360,000 2,000,000 370,000
4,805,000 - 4,805,000 - - 4,805,000 -
16,015,000 2,925,000 13,090,000 0 670,000 12,420,000 5,985,000
5,920,000 2,175,000 3,745,000 - 665,000 3,080,000 680,000
3,720,000 30,000 3,690,000 - 30,000 3,660,000 30,000
1,245,000 355,000 890,000 - 120,000 770,000 125,000
1,565,000 - 1,565,000 - 140,000 1,425,000 140,000
3,630,000 - 3,630,000 - - 3,630,000 -
10,000,000 - - 10,000,000 - 10,000,000 400,000
26,080,000 2,560,000 13,520,000 10,000,000 955,000 22,565,000 1,375,000
$42,095,000 $5,485,000 $26,610,000 $10,000,000 $1,625,000 $34,985,000 $7,360,000
Prior Years 2017
167
CITY OF CHANHASSEN, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY Exhibit 2
GENERAL OBLIGATION BONDS - GOVERNMENTAL ACTIVITIES
December 31, 2017
G.O. Capital G.O. Library
Improvement Refunding G.O.
Plan Bonds,Bonds,Bonds,
Series 2008A Series 2010A Series 2016A Total
Bonds payable $5,615,000 $2,000,000 $4,805,000 $12,420,000
Future interest payable 121,634 156,135 796,925 1,074,694
$5,736,634 $2,156,135 $5,601,925 $13,494,694
Payments to maturity:
2018 $5,736,634 $424,880 $117,950 $6,279,464
2019 - 433,480 443,000 876,480
2020 - 431,630 447,875 879,505
2021 - 429,480 452,300 881,780
2022 - 436,665 451,350 888,015
2023 - - 455,025 455,025
2024 - - 453,325 453,325
2025 - - 458,300 458,300
2026 - - 460,000 460,000
2027 - - 461,500 461,500
2028 - - 462,800 462,800
2029 - - 468,850 468,850
2030 - - 469,650 469,650
$5,736,634 $2,156,135 $5,601,925 $13,494,694
168
CITY OF CHANHASSEN, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY Exhibit 3
GENERAL OBLIGATION REVENUE BONDS
December 31, 2017
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
Bonds, Series Bonds, Series Bonds, Series Bonds, Series Bonds, Series Bonds, Series
2011A 2011B 2012A 2016A 2016B 2017A Total
Bonds payable $3,080,000 $3,660,000 $770,000 $1,425,000 $3,630,000 $10,000,000 $22,565,000
Future interest payable 130,353 498,300 31,708 172,400 3,181,079 4,191,050 8,204,890
$3,210,353 $4,158,300 $801,708 $1,597,400 $6,811,079 $14,191,050 $30,769,890
Payments to maturity:
2018 $728,813 $134,500 $133,915 $177,200 $138,238 $699,900 $2,012,566
2019 733,663 569,500 132,665 177,925 138,238 444,400 2,196,391
2020 731,758 567,600 131,321 178,500 138,238 441,400 2,188,817
2021 738,163 572,900 134,758 178,925 138,238 443,350 2,206,334
2022 277,956 572,675 133,003 179,200 138,238 440,250 1,741,322
2023 - 576,925 136,046 179,325 138,238 440,500 1,471,034
2024 - 580,575 - 174,375 138,238 434,100 1,327,288
2025 - 583,625 - 175,200 138,238 432,600 1,329,663
2026 - - - 176,750 138,238 430,900 745,888
2027 - - - - 138,238 843,575 981,813
2028 - - - - 138,238 845,425 983,663
2029 - - - - 138,238 846,675 984,913
2030 - - - - 138,238 847,325 985,563
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
$3,210,353 $4,158,300 $801,708 $1,597,400 $6,811,079 $14,191,050 $30,769,890
169
CITY OF CHANHASSEN, MINNESOTA
SCHEDULE OF DEFERRED TAX LEVIES Exhibit 4
December 31, 2017
Library G.O. Capital Total
Years of Bonds Improvement Deferred
Levy/ of 2002A/ Plan Bonds Tax
Collection 2010A of 2008A Levies
2017/2018 $461,297 $470,348 $931,645
2018/2019 459,512 475,702 935,214
2019/2020 457,412 480,585 937,997
2020/2021 465,497 479,745 945,242
2021/2022 - 483,840 483,840
2022/2023 - 482,213 482,213
2023/2024 - 485,520 485,520
2024/2025 - 487,410 487,410
2025/2026 - 489,090 489,090
2026/2027 - 490,560 490,560
2027/2028 - 497,070 497,070
2028/2029 - 498,015 498,015
$1,843,718 $5,820,098 $7,663,816
170