2020 Annual Financial ReportThe City of Chanhassen, Minnesota
For the Fiscal Year Ended December 31, 2020
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE CITY OF CHANHASSEN, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2020
Finance Department
Kelly Strey, Finance Director
Member of Government Finance Officers
Association of United States and Canada
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CITY OF CHANHASSEN, MINNESOTA
TABLE OF CONTENTS
I. INTRODUCTORY SECTION
Letter of Transmittal
Certificate of Achievement
Organization Chart
Organization
II. FINANCIAL SECTION
Independent Auditor's Report
Management's Discussion and Analysis
Basic Financial Statements:
Government -Wide Financial Statements:
Statement of Net Position
Statement of Activities
Fund Financial Statements:
Balance Sheet - Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities
Statement of Net Position - Proprietary Funds
Statement of Revenues, Expenses and Changes in Fund Net Position -
Proprietary Funds
Statement of Cash Flows - Proprietary Funds
Notes to Financial Statements
Required Supplementary Information:
Budgetary Comparison Schedule - General Fund
Schedule of Changes in the City's Total OPEB Liability and Related Ratios
Schedule of Proportionate Share of Net Pension Liability - General Employees
Retirement Fund
Schedule of Pension Contributions - General Employees Retirement Fund
Schedule of Proportionate Share of Net Pension Liability - Public Employees Police
and Fire Fund
Schedule of Pension Contributions - Public Employees Police and Fire Fund
Schedule of Changes in the Net Pension Liability and Related Ratios -
Chanhassen Fire Department Relief Association
Schedule of Contributions - Chanhassen Fire Department Relief Association
Notes to RSI
Page
Reference No.
3
7
8
9
13
17
Statement 1 33
Statement 2 34
Statement 3 36
Statement 4 37
Statement 5 38
Statement 6 39
Statement 7 40
Statement 8 41
43
Statement 9 90
Statement 10 96
Statement 11 97
Statement 12 98
Statement 13 99
Statement 14 100
Statement 15 101
Statement 16 102
103
CITY OF CHANHASSEN, MINNESOTA
TABLE OF CONTENTS
Page
Reference
No.
Combining and Individual Nonmajor Fund Financial Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds
Statement 17
112
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Governmental Funds
Statement 18
113
Subcombining Balance Sheet - Nonmajor Special Revenue Funds
Statement 19
116
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Special Revenue Funds
Statement 20
117
Subcombining Balance Sheet - Nonmajor Debt Service Funds
Statement 21
120
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Debt Service Funds
Statement 22
121
Subcombining Balance Sheet - Nonmajor Capital Project Funds
Statement 23
124
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Capital Project Funds
Statement 24
126
Special Revenue Funds:
Schedules of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual:
Contribution Fund Statement 25 129
Cemetery Fund Statement 26 130
CATV Statement 27 131
III. STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Position by Component
Table 1
136
Changes in Net Position
Table 2
138
Fund Balances - Governmental Funds
Table 3
142
Changes in Fund Balances - Governmental Funds
Table 4
144
Revenue Capacity:
Tax Capacity Value and Estimated Market Value of Taxable Property
Table 5
146
Direct and Overlapping Property Tax Capacity Rates
Table 6
148
Principal Property Taxpayers
Table 7
149
Property Tax Levies and Collections
Table 8
151
Debt Capacity:
Ratios of Outstanding Debt by Type
Table 9
152
Ratios of General Bonded Debt Outstanding
Table 10
154
Direct and Overlapping Governmental Activities Debt
Table 11
155
Legal Debt Margin Information
Table 12
156
Pledged Revenue Coverage
Table 13
157
CITY OF CHANHASSEN, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
Demographic and Economic:
Demographic and Economic Statistics Table 14 158
Principal Employers Table 15 159
Operating Information:
Full -Time Equivalent City Government Employees by Function/Program Table 16 160
Operating Indicators by Function/Program Table 17 162
Capital Asset Statistics by Function/Program Table 18 164
IV. OTHER INFORMATION (UNAUDITED)
Combined Schedule of Indebtedness
Exhibit 1
168
Debt Service Payments to Maturity:
General Obligation Bonds - Governmental Activities
Exhibit 2
170
General Obligation Revenue Bonds
Exhibit 3
171
Schedule of Deferred Tax Levies
Exhibit 4
172
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I. INTRODUCTORY SECTION
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CITY OF C HANHASSE N
Chanhassen is a Community for Life - Providing for Today and Planning forTomorrow
June 9, 2021
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, 2020 is hereby submitted. This report was prepared by the Chanhassen Finance Department
and responsibility for both the accuracy of the presented data and the completeness and fairness of the
presentation, including all disclosures, supporting schedules and statistical tables rests with the City. We believe
the data, as presented, is accurate in all material respects; that it is presented in a manner designed to fairly set
forth the financial position and results of operations of the City as measured by the financial activity of its various
funds; and that all disclosures necessary to enable the reader to gain the maximum understanding of the City's
financial affairs have been included.
The organization, form and contents of this report were prepared in accordance with the standards prescribed by
the Governmental Accounting Standards Board, the Government Finance Officers Association of the United States
and Canada (GFOA), the American Institute of Certified Public Accountants, Minnesota's Office of the State
Auditor and City policies.
This transmittal letter is designed to complement the Management's Discussion and Analysis (MD&A) and should
be read in conjunction with it. The MD&A can be found immediately following the report of the independent
auditors.
Reporting Entity and Its Services
This report includes all funds and departments of the City (the primary government) and its component unit. The
City provides a full range of services to its residents and businesses including general government, public safety
(police and fire protection), public works (engineering, streets, and equipment maintenance), parks and
recreational activities, and community development. In addition to general municipal services, the City provides
water and sanitary sewer service and oversight (through licensing) of the refuse and recycling services. In
accordance with the reporting entity definition of the Governmental Accounting Standards Board, the City has
included the Chanhassen Economic Development Authority (EDA) in these financial statements as a blended
component unit. The EDA is governed by five commissioners appointed by the City Council with the City
Manager as executive director. The Chanhassen Fire Relief Association has been excluded from this report
because it is governed by a board elected by its members and it is not fiscally dependent upon the City. The
Western Area Fire Training Association (WAFTA) is governed by an eleven -person board comprised of one
member appointed by each jurisdiction who is a party to the joint powers agreement. Although the City is jointly
responsible for the maintenance and cleanup costs of the training site in rural Carver County, we do not exercise
substantial control of the association. The school districts that serve residents of the City, like all school districts in
Minnesota, are governed independently by their own elected board members. They levy their own taxes and
prepare their own financial reports. Accordingly, they are excluded from this report.
PH 952.227.1100 • wWW achanhaSsen.mn.us • FX952.227.1110
7700 MARKET BOULEVARD • PO BOX 147 • CHANHASSEN • MINNESOTA 55317
Relevant Financial Policies
The City has a policy regarding General Fund reserve balances. The City has a designated fund balance in the
General Fund equivalent to 50% of the ensuing year's budgeted tax levy to provide working capital between semi-
annual property tax settlements.
The primary financial goal of the City's investment policy is to ensure the safety and principal invested by the
City. Cash temporarily idle during the year is invested in certificates of deposit and obligations of the U.S.
Treasury and government agencies. The City only invests in instruments authorized under Minnesota Statute
118A. Cash balances from all City funds are pooled into an investment fund and investment income is distributed
on a pro-rata basis at the end of the year, based on average monthly cash balances. At December 31, 2020, the
maturities of the investments range from 1 day to 7 years, with an average maturity of 1.6 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, 2020 was 1.35%. 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, 2020 was 27,170. Chanhassen's residential permits were higher in
2020 as compared to 2019. In 2019, there were 58 residential permits as compared to 68 in 2020. The total value
of all permits and plan checks in 2020 was $87,160,588.
The City anticipates a continuous uptick in residential permits in the coming years and more diversity in housing
types, including apartments, townhouses and senior housing. Retail/commercial services and restaurants continue
to be in demand. The 118 acre Lifestyle Center, which includes over 500,000 square feet of office and retail space
and 575 housing units (including detached townhouses, senior housing and apartments) was approved in 2017 and
they are currently working on site grading. Commercial and industrial remodeling and expansion continues the
reinvestment into the community.
Accounting System and Budgetary Control
The City's accounting records are maintained on the accrual, or modified accrual basis, as appropriate. Budgetary
control is maintained through the City's accounting and reporting system whereby monthly detail reports of budget
versus actual are provided to all departments with summaries being provided to the City Council. Approval
listings and documentation are provided for the City Council at each semi-monthly meeting for all checks issued
by the City.
In the City's accounting system, careful consideration is given to the adequacy of internal controls. These controls
are designed to provide reasonable, but not necessarily absolute, assurance regarding: (1) the safeguarding of
assets against loss from unauthorized use or disposition and (2) the reliability of financial records for preparing
financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes
that: (1) the cost of control should not exceed the benefits likely to be derived and (2) the evaluation of costs and
benefits requires estimates and judgments by management. All internal control evaluation occurs within the above
framework. We believe the City's internal controls adequately safeguard assets and provide reasonable assurance
of proper recording of financial transactions.
Capital financings for major municipal improvements are provided through (1) improvement bonds, (2) general
obligation bonds, (3) tax increment bonds, or (4) revenue bonds. Internal financing of improvement projects is
usually minimal and only for short periods of time.
Long 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 for the fiscal year ended December 31, 2019. The Certificate of Achievement is a prestigious
national award recognizing conformance with the highest standards for preparation of state and local government
financial reports.
In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and
efficiently organized comprehensive annual financial report, whose contents conform to program standards. The
comprehensive annual financial report must satisfy both generally accepted accounting principles and applicable
legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City of Chanhassen has received a
Certificate of Achievement for the last twenty eight consecutive years (fiscal years ended 1992 — 2019). 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,
Kelly Strey, Finance Director
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Chanhassen
Minnesota
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
December 31, 2019
Executive Director/CEO
7
Environmental
Commission
Planning
Commission
Finance
City of Chanhassen, Minnesota
Organization Chart
Citizens
Mayor - Council
Administration
Law
Enforcement Public Community
& Fire Works Development
Administration
Senior
Commission
I & Recreat
Commission
Economic
Development
Authority
Parks and
Recreation
E3
CITY OF CHANHASSEN, MINNESOTA
ORGANIZATION
December 31, 2020
Term Expires
Mayor:
Elise Ryan 12/31/2022
Council Members:
Bethany Tjornhom
12/31/2020
Jerry McDonald
12/31/2020
Julia Coleman
12/31/2022
Dan Campion
12/31/2022
City Manager:
Laurie Hokkanen Appointed
Finance Director:
Kelly Strey Appointed
Community Development Director:
Kathryn Aanenson Appointed
Public Works Director/City Engineer:
Charles Howley Appointed
Parks and Recreation Director:
Jerry Reugemer Appointed
W
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10
II. FINANCIAL SECTION
11
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12
REdTH
A N 0 C MAP iV Y
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 31,2020, and the related notes to
the financial statements, which collectively comprise the City of Chanhassen, Minnesota's basic
financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether due
to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the entity's preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express
no such opinion. An audit also includes evaluating the appropriateness of accounting policies used
and the reasonableness of significant accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
55 511 Street East, Suite 1400, St. Paul, MN, 55101 www.redpathcpas.com
13
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major
fund and the aggregate remaining fund information of the City of Chanhassen, Minnesota as of
December 31, 2020, 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 2019 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 10, 2020. In our opinion, the summarized comparative
information presented herein as of and for the year ended December 31, 2019 is consistent, in all
material respects, with the audited financial statements from which it has been derived.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis, the budgetary comparison information, and the schedules of
OPEB and pension information, as listed in the table of contents, be presented to supplement the
basic financial statements. Such information, although not a part of the basic financial statements,
is required by the Governmental Accounting Standards Board, who considers it to be an essential
part of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to express an
opinion or provide any assurance.
14
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Chanhassen, Minnesota's basic financial statements. The
introductory section, combining and individual nonmajor fund financial statements and schedules,
statistical section and other information, are presented for purposes of additional analysis and are
not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and schedules are the
responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the basic financial statements. Such information has
been subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the
basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the combining and
individual nonmajor fund financial statements and schedules are fairly stated in all material respects
in relation to the basic financial statements as a whole.
The introductory section, statistical section and other information have not been subjected to the
auditing procedures applied in the audit of the basic financial statements and, accordingly, we do
not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 9,
2021, on our consideration of the City of Chanhassen, Minnesota's internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts,
and grant agreements and other matters. The purpose of that report is solely to describe the scope
of our testing of internal control over financial reporting and compliance and the results of that
testing, and not to provide an opinion on the effectiveness of the City of Chanhassen, Minnesota's
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the City of
Chanhassen, Minnesota's internal control over financial reporting and compliance.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
June 9, 2021
15
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III
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, 2020. We encourage readers to consider the information
presented here in conjunction with additional information that we have furnished in our letter of
transmittal, which can be found in the introductory section of this report.
Financial Highlights
The assets and deferred outflows of the City exceeded its liabilities and deferred inflows at the
close of the most recent fiscal year by $151,329,536 (net position). Of this amount, $21,109,724
(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 $927,188.
As of the close of the current fiscal year, governmental funds reported combined ending fund
balances of $15,278,317. Of this amount, $1,669,927 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 $6,748,766. Of that
amount, $63,775 was in a nonspendable form and the remaining $6,684,991 was unassigned.
Total debt increased by $3,725,556 during the current fiscal year, from $29,646,332 to
$33,371,888. Please refer to the Capital Asset and Debt Administration portion of this analysis
for detailed information regarding the City's debt.
Overview of the Financial Statements
The management's discussion and analysis is intended to serve as an introduction to the City's
basic financial statements, which are comprised of three components: 1) government -wide
financial statements, 2) fund financial statements, and 3) notes to the financial statements. This
report also contains other supplementary information in addition to the basic financial statements
themselves.
Government -wide financial statements. The government -wide financial statements are
designed to provide readers with a broad overview of the City's finances, in a manner similar to
a private -sector business.
17
Management's Discussion and Analysis
The statement of net position presents information on all of the City's assets, deferred outflows
of resources, liabilities, and deferred inflows of resources, with the difference reported as net
position. Over time, increases or decreases in net position may serve as a useful indicator of
whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues
and expenses are reported in this statement for some items that will only result in cash flows in
future fiscal periods (e.g. uncollected taxes, and earned but unused vacation leave).
Both of the government -wide financial statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business -type activities). The governmental activities of the City include
general government, public safety, public works, parks and recreation, and community
development. The business -type activities include water, sewer, and surface water management.
The government -wide financial statements can be found on Statements 1 and 2 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The City,
like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance -related legal requirements. All of the funds can be divided into three
categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government -wide financial statements.
However, unlike the government -wide financial statements, governmental fund financial
statements focus on near -term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may be
useful in evaluating a government's near -term financial requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements.
By doing so, readers may better understand the long-term impact of the City's near -term financial
decisions. Both the governmental fund balance sheet and governmental fund statement of
revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
18
Management's Discussion and Analysis
The City maintains three individual major governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of
revenues, expenditures and changes in fund balances for the following major funds:
• General Fund
• Revolving Assessment Fund
• TH101 Improvements — Pioneer to Flying Cloud
Data from the other governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these nonmajor governmental funds is provided in the form of
combining statements elsewhere in this report.
The City adopts an annual appropriated budget for the General Fund and for the Contribution,
Cemetery and CATV special revenue funds. Budgetary comparison statements have been
provided for those funds to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on Statements 3 through 5 of this
report.
Proprietary funds. The City maintains three enterprise funds as a part of its proprietary fund
type. Enterprise funds are used to report the same functions presented as business -type activities
in the government -wide financial statements.
Proprietary funds provide the same type of information as the government -wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for the following funds:
• Water
• Sewer
• Surface Water Management
The basic proprietary fund financial statements can be found on Statements 6 through 8 of this
report.
Notes to the financial statements. The notes provide additional information that is essential to
a full understanding of the data provided in the government -wide and fund financial statements.
The notes to the financial statements can be found following Statement 8 of this report.
Other information. The combining statements referred to earlier in connection with nonmajor
governmental funds are presented immediately following the required supplementary
information. Combining and individual fund financial statements and schedules can be found on
Statements 17 through 27 of this report.
19
Management's Discussion and Analysis
Government -Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's
financial position. Assets plus deferred outflows of resources exceeded liabilities plus deferred
inflows of resources by $151,329,536 at the close of the most recent fiscal year.
The largest portion of the City's net position ($128,590,593, or 85%) reflects its net investment
in capital assets (e.g. land, buildings, machinery, and equipment) less any related debt used to
acquire those assets that is still outstanding. The City uses these capital assets to provide
services to citizens; consequently, these assets are not available for future spending. Although
the City's investment in its capital assets is reported net of related debt, it should be noted that
the resources needed to repay this debt must be provided from other sources, since the capital
assets themselves cannot be used to liquidate these liabilities.
Assets:
Current and other assets
Other noncurrent assets
Capital assets
Total assets
Total deferred outflows of resources
Liabilities:
Long-term liabilities outstanding
Other liabilities
Total liabilities
Total deferred inflows of resources
Net position:
Net investment in capital assets
Restricted
Unrestricted
Total net position
City of Chanhassen, Minnesota's Net Position
Governmental Activities
2020
2019
Business -Type Activities
2020 2019
Totals
2020 2019
$23,095,175
$18,543,161
$19,873,878
$16,376,687
$42,969,053
$34,919,848
-
-
179,893
179,893
-
77,468,634
78,971,450
77,515,811
77,183,921
154,984,445
156,155,371
100,563,809
97,514,611
97,569,582
93,560,608
198,133,391
191,075,219
638,859
686,256
76,590
69,933
715,449
756,189
10,056,602
10,784,539
29,616,581
24,685,540
39,673,183
35,470,079
6,367,384
1,807,748
719,555
746,825
7,086,939
2,554,573
16,423,986
12,592,287
30,336,136
25,432,365
46,760,122
38,024,652
716,333
1,378,997
42,849
171,035
759,182
1,550,032
73,063,927
72,986,179
55,526,666
54,469,960
128,590,593
127,456,139
1,629,219
2,883,391
-
-
1,629,219
2,883,391
9,369,203
8,360,013
11,740,521
13,557,181
21,109,724
21,917,194
$84,062,349
$84,229,583
$67,267,187
$68,027,141
$151,329,536
$152,256,724
$1,629,219 of the City's net position represents resources that are subject to external restrictions
on how they may be used. The remaining balance of unrestricted net position ($21,109,724) may
be used to meet ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in all three
categories of net position, both for the City as a whole, as well as for its separate governmental
and business -type activities.
all
Management's Discussion and Analysis
Governmental Activities
Total net position of the governmental activities decreased $167,234 or 0.20%. The most
significant components of change in net position are as follows:
• Net investment in capital assets increased $77,748. This increase was due to scheduled
bond payments, offset by current year depreciation exceeding capital asset additions.
• Restricted net position decreased $1,254,172. This decrease occurred due to pay off of
the 2010A GO Library Refunding Bonds and use of capital fund reserve funds for park
improvements.
• Unrestricted net position increased $1,009,190 resulting from a shift in net position into
this category from restricted net position.
Business -Type Activities
The total net position of the City's business -type activities decreased by $759,954 primarily due
to an increase in bonds payable for newly issued debt. Unrestricted net position decreased
$1,816,660 primarily due to transfers out to fund utility infrastructure construction costs to the
capital funds.
21
Management's Discussion and Analysis
City of Chanhassen, Minnesota's Changes in Net Position
Revenues:
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues:
General property taxes
Tax increment collections
Grants and contributions not
restricted to specific programs
Unrestricted investment earnings
Gain on sale of capital assets
Total revenues
Expenses:
General government
Public safety
Public works
Parks and recreation
Community development
Interest and fees on long-term debt
Water
Sewer
Surface water management
Total expenses
Increase (decrease) in net position before transfers
Transfers
Change in net position
Net position - beginning
Net position - ending
Governmental Activities
Business -Type
Activities
Totals
2020
2019
2020
2019
2020
2019
$4,392,983
$3,228,164
$7,877,852
$7,251,421
$12,270,835
$10,479,585
14,970,473
2,770,655
39,552
460,905
15,010,025
3,231,560
4,066,959
4,716,702
2,084,681
3,108,377
6,151,640
7,825,079
11,745,709
10,996,831
-
-
11,745,709
10,996,831
236,485
-
236,485
-
-
20,009
-
-
-
20,009
368,168
491,345
390,604
548,747
758,772
1,040,092
-
103,976
1,795
43,498
1,795
147,474
35,780,777
22,327,682
10,394,484
11,412,948
46,175,261
33,740,630
3,503,418
2,968,604
-
-
3,503,418
2,968,604
3,975,838
4,045,361
3,975,838
4,045,361
25,142,224
9,808,088
25,142,224
9,808,088
2,704,009
3,275,021
2,704,009
3,275,021
754,205
535,700
754,205
535,700
107,993
132,327
-
-
107,993
132,327
-
-
4,908,477
5,842,506
4,908,477
5,842,506
4,312,195
3,879,581
4,312,195
3,879,581
-
-
1,694,090
1,918,378
1,694,090
1,918,378
36,187,687
20,765,101
10,914,762
11,640,465
47,102,449
32,405,566
(406,910)
1,562,581
(520,278)
(227,517)
(927,188)
1,335,064
239,676
283,007
(239,676)
(283,007)
-
(167,234)
1,845,588
(759,954)
(510,524)
(927,188)
1,335,064
84,229,583
82,383,995
68,027,141
68,537,665
152,256,724
150,921,660
$84,062,349
$84,229,583
$67,267,187
$68,027,141
$151,329,536
$152,256,724
22
Management's Discussion and Analysis
Governmental Activities
Revenues
Revenues for the governmental activities increased by $13,453,095. This increase is largely due
to reimbursements related to the Highway 101 construction project.
Expenses
Expenses for the governmental activities increased by $15,422,586, or 74%. This increase was
largely due to non -capitalized construction costs related to the Highway 101 construction project.
Below are specific graphs which provide comparisons of the governmental activities revenues
and expenses:
23
Management's Discussion and Analysis
[:uvernincntai Activities - Expenses
Comma nity development
2% General government
Parks and recreation 1py5
7%
Puh[ic safety
11?6
Pudl is works —
7D%
Business -Type Activities
Revenues
Revenues for the business -type activities decreased by $1,018,464, or 9%. The decrease was
primarily due to lower charges for services revenue compared to the previous year because of a
decrease in connection charges.
Expenses
Expenses for business -type activities decreased by $725,703, or 6%. The decrease was primarily
due to increased maintenance expense in the previous year for painting one of the City's water
towers.
24
Management's Discussion and Analysis
Below are specific graphs showing the business -type activities revenue and expense
comparisons:
Bu sinessT}pe Activities - Revenue unrestricted investment
earnings
%
Capital grants and
wntri6utian5
20%
Charges fm servxes
76%
Business-T[ W Activities - Expenses
surface water management
16%
Water
45%
S—C
39ti
SJ
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 $15,278,317. Approximately 11 % of this total amount ($1,669,927) constitutes
fund balance restricted by external constraints established by creditors, grantors, contributors, or
by state statutory provisions. $113,465 of fund balance is not in a spendable form, $6,809,934
has been assigned, and $6,684,991 is unassigned.
The General Fund balance increased by $1,410,697 in 2020. The increase was primarily due to
high permit revenues, receipt of federal grant funds and lower staffing costs as a result of
COVID 19 restrictions.
The Revolving Assessment Fund balance increased by $470,316. The increase was due to newly
created franchise fee revenue, offset by construction project expenditures.
The TH101 Improvements — Pioneer to Flying Cloud Fund balance did not change in 2020.
The nonmajor special revenue funds increased by $44,747. The increase was largely due to
Cable TV franchise revenues exceeding expenditures.
The nonmajor debt service funds decreased by $557,777. The decrease was primarily due to the
payoff of the 2010A GO Library Refunding Bonds.
The nonmajor capital project funds decreased by $1,037,162. The decrease was primarily due to
the use of reserve funds for capital outlay expenditures.
Proprietary funds. The City's proprietary funds provide the same type of information found in
the government -wide financial statements, but in more detail.
The unrestricted net position in the respective proprietary funds is $4,842,419 (Water),
$5,444,619 (Sewer) and $1,453,483 (Surface Water Management).
Net position in the Water Fund decreased by $267,641. The decrease is due to lower connection
charges than the previous year.
Net position in the Sewer Fund decreased by $550,599. The decrease was mainly due to lower
connection charges than the previous year.
Net position in the Surface Water Management Fund increased by $58,286. There was nothing
significant that contributed to this increase.
oil
Management's Discussion and Analysis
Budgetary Highlights
General Fund
There were no budget amendments to the General Fund in 2020.
Budgetary Variances — Revenues
The positive General Fund revenue variance of $586,568 was primarily due to building permit
revenue exceeding budget and the receipt of federal grant funds related to COVID 19.
Budgetary Variances — Expenditures
Expenditures for the General Fund had a positive variance of $824,129. This was primarily due
to personal services being below budget because of altered staffing levels due to COVID 19.
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, 2020 amounts to $154,984,445 (net of accumulated depreciation).
This investment in capital assets includes land, easements, buildings, infrastructure, machinery,
and equipment.
27
Management's Discussion and Analysis
City of Chanhassen, Minnesota's Capital Assets
(Net of Depreciation)
Primary Government
Governmental activities:
Capital assets not being depreciated:
Land
Construction in progress
Permanent easements
Total capital assets not being depreciated
Capital assets being depreciated:
Buildings and structures
Machinery and equipment
Other improvements
Infrastructure
Temporary easements
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings and structures
Machinery and equipment
Other improvements
Infrastructure
Temporary easements
Total accumulated depreciation
Governmental activities capital assets - net
Primary Government
Business -type activities:
Capital assets not being depreciated:
Land
Construction in progress
Permanent easements
Total capital assets not being depreciated
Capital assets being depreciated:
Buildings and structures
Machinery and equipment
Other improvements
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings and structures
Machinery and equipment
Other improvements
Total accumulated depreciation
Business -type activities capital assets - net
Total capital assets - net
Balance
Increase
Decrease
Balance
$19,912,318
$ -
$ -
$19,912,318
1,491,353
729,738
(1,403,788)
817,303
1,749,556
272,300
-
2,021,856
23,153,227
1,002,038
(1,403,788)
22,751,477
23,411,160
1,468,155
(66,500)
24,812,815
9,990,718
609,862
(575,167)
10,025,413
9,392,396
174,141
(111,123)
9,455,414
122,125,843
1,899,993
(234,627)
123,791,209
3,436,870
1,325,383
-
4,762,253
168,356,987 5,477,534 (987,417) 172,847,104
9,541,253
568,502
(26,600)
10,083,155
6,100,050
523,917
(460,173)
6,163,794
4,540,881
398,074
(93,311)
4,845,644
91,966,549
3,194,389
(234,627)
94,926,311
390,031
1,721,012
-
2,111,043
112,538,764 6,405,894 (814,711) 118,129,947
$78,971,450 $73,678 ($1,576,494) $77,468,634
Balance
Increase
Decrease
Balance
$2,104,535
$4,200
$ -
$2,108,735
1,238,374
2,475,298
(904,493)
2,809,179
2,117,722
672,850
-
2,790,572
5,460,631
3,152,348
(904,493)
7,708,486
28,077,579
-
-
28,077,579
2,031,661
163,302
(189,529)
2,005,434
118,697,979
1,835,779
(80,557)
120,453,201
148,807,219
1,999,081
(270,086)
150,536,214
3,299,195
561,611
-
3,860,806
1,070,641
151,470
(109,813)
1,112,298
72,714,093
3,121,292
(79,600)
75,755,785
77,083,929
3,834,373
(189,413)
80,728,889
77,183,921
1,317,056
(985,166)
77,515,811
$156,155,371 $1,390,734 ($2,561,660) $154,984,445
Additional information on the City's capital assets can be found in Note 5.
43
Management's Discussion and Analysis
Governmental Activities Capital Assets. There was a decrease in capital assets due to the
reduction in depreciable assets (current year depreciation expense exceeded current year
additions).
Business -Type Activities Capital Assets. There was an increase in capital assets due to
improvements related to the Highway 101 construction project.
Long-term debt. At the end of the current fiscal year, the City had total bonds payable
outstanding of $32,825,780 an increase of $3,179,448 from 2019.
The balance of the bonds payable outstanding is comprised of $4,130,000 in general obligation
bonds, $27,285,000 of revenue bonds which financed capital investments for the water, sewer,
and surface water management operations, and unamortized bond premiums of $1,410,780.
In 2020, the City entered into a long-term financing arrangement with Carver County for the
Lyman Boulevard project. The long-term portion of the arrangement is $546,108.
Additional long-term debt in the amount of $887,314 for compensated absences was also
outstanding at the end of 2020.
ce
Management's Discussion and Analysis
City of Chanhassen, Minnesota's Outstanding Debt
Governmental Activities
2020 2019
Business -Type Activities
2020 2019
Totals
2020 2019
General obligation bonds
$4,130,000
$5,715,000
$ -
$ -
$4,130,000
$5,715,000
Revenue bonds
-
-
27,285,000
22,935,000
27,285,000
22,935,000
Bond premium
159,848
175,833
1,250,932
820,499
1,410,780
996,332
Project financing
546,108
-
-
-
546,108
-
Compensated absences
682,281
682,952
205,033
192,075
887,314
875,027
Total
$5,518,237
$6,573,785
$28,740,965
$23,947,574
$34,259,202
$30,521,359
As the financial statements will indicate, the City maintained strong financial reserves and
continues its practice of utilizing multiple long term financial planning documents. The City's
bond rating was affirmed in February 2020 by Standard & Poor's. The City of Chanhassen is
one of approximately 25 communities in the State of Minnesota to have an AAA bond rating
from Standard & Poor's.
State statutes limit the amount of general obligation debt a Minnesota city may issue to 3% of the
total estimated market value. The current debt limitation for the City is $142,499,616. Of the
City's outstanding debt, $4,130,000 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.
CIS]
BASIC FINANCIAL STATEMENTS
a
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32
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF NET POSITION
December 31, 2020
With Comparative Totals For December 31, 2019
Assets:
Cash and investments
Restricted cash
Accrued interest receivable
Due from other governmental units
Accounts receivable - net
Property taxes receivable
Prepaid items
Inventories - at cost
Internal balances
Special assessments receivable
Receivable not expected to be collected within one year
Capital assets (net of accumulated depreciation):
Nondepreciable
Depreciable
Total assets
Deferred outflows of resources:
Deferred outflows of resources related to other post employement benefits
Deferred outflows of resources related to pensions
Total deferred outflows of resources
Liabilities:
Accounts payable
Due to other governmental units
Salaries payable
Contracts payable
Escrow deposits payable
Accrued interest payable
Unearned revenue
Compensated absences payable:
Due within one year
Due in more than one year
Other post employment benefits payable:
Due in more than one year
Bonds payable:
Due within one year
Due in more than one year
Project financing
Due in more than one year
Net pension liability:
Due in more than one year
Total liabilities
Deferred inflows of resources:
Deferred inflows of resources related to other post employement benefits
Deferred inflows of resources related to pensions
Total deferred inflows of resources
Net position:
Net investment in capital assets
Restricted for:
Debt service
Park improvements
Tax increment
Other purposes
Unrestricted
Total net position
Statement 1
Governmental Business -Type Totals
Activities Activities 2020 2019
$18,103,575
$13,028,986
$31,132,561
$28,821,650
-
5,657,940
5,657,940
301
75,748
82,880
158,628
141,210
2,095,437
14,504
2,109,941
2,149,751
645,807
1,479,074
2,124,881
1,492,227
87,260
-
87,260
209,707
113,465
55,647
169,112
118,527
-
94,449
94,449
53,643
568,962
(568,962)
-
-
1,404,921
29,360
1,434,281
1,752,939
-
179,893
179,893
179,893
22,751,477 7,708,486 30,459,963 28,613,858
54,717,157 69,807,325 124,524,482 127,541,513
100,563,809 97,569,582 198,133,391 191,075,219
12,038 4,063 16,101 9,118
626,821 72,527 699,348 747,071
638,859 76,590 715,449 756,189
909,171
130,146
1,039,317
990,308
1,702,402
53,978
1,756,380
356,792
173,765
40,184
213,949
298,259
1,166,302
95,841
1,262,143
466,080
2,294,023
-
2,294,023
40,708
398,231
438,939
352,150
81,013
1,175
82,188
90,984
106,820
32,101
138,921
126,338
575,461
172,932
748,393
748,689
125,320
42,302
167,622
155,719
360,000
2,105,000
2,465,000
2,615,000
3,929,848
26,430,932
30,360,780
27,031,332
546,108 546,108
4,413,045 833,314 5,246,359 4,793,001
16,423,986 30,336,136 46,760,122 38,024,652
56,329 19,014 75,343 73,218
660,004 23,835 683,839 1,476,814
716,333 42,849 759,182 1,550,032
73,063,927 55,526,666 128,590,593 127,456,139
564,714
564,714
1,283,606
991,872
991,872
1,537,790
6,668
6,668
-
65,965
- 65,965
61,995
9,369,203
11,740,521 21,109,724
21,917,194
$84,062,349
$67,267,187 $151,329,536
$152,256,724
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, 2020
With Comparative Totals For The Year Ended December 31, 2019
Functions/Programs
Primary government:
Governmental activities:
General government
Public safety
Public works
Parks and recreation
Community development
Interest and fees on long-term debt
Total governmental activities
Business -type activities:
Water
Sewer
Surface water management
Total business -type activities
Total primary government
Expenses
Program Revenues
Charges For
Services
$3,503,418
$2,252,594
3,975,838
1,550,768
25,142,224
396,649
2,704,009
162,546
754,205
30,426
107,993
-
36,187,687
4,392,983
4,908,477
3,533,939
4,312,195
3,260,080
1,694,090
1,083,833
10,914,762
7,877,852
$47,102,449
$12,270,835
The accompanying notes are an integral part of these financial statements.
34
Program Revenues
Operating
Capital
Grants and
Grants and
Contributions
Contributions
$529,246
$749,084
817,841
101,635
13,613,084
3,118,454
10,302
97,786
14,970,473
4,066,959
486
896,361
486
480,089
38,580
708,231
39,552
2,084,681
$15,010,025 $6,151,640
General revenues:
General property taxes
Tax increment collections
Grants and contributions not
restricted to specific programs
Unrestricted investment earnings
Gain on sale of capital assets
Transfers
Total general revenues and transfers
Change in net position
Net position - January 1
Net position - December 31
Statement 2
Net (Expense) Revenue and
Changes in Net Position
Governmental
Business -Type
Totals
Activities
Activities
2020
2019
$27,506
$ -
$27,506
($2,447,127)
(1,505,594)
-
(1,505,594)
(2,109,583)
(8,014,037)
-
(8,014,037)
(2,682,253)
(2,433,375)
-
(2,433,375)
(2,171,456)
(723,779)
-
(723,779)
(506,834)
(107,993)
-
(107,993)
(132,327)
(12,757,272)
0
(12,757,272)
(10,049,580)
-
(477,691)
(477,691)
(1,135,157)
-
(571,540)
(571,540)
69,178
-
136,554
136,554
246,217
0
(912,677)
(912,677)
(819,762)
(12,757,272)
(912,677)
(13,669,949)
(10,869,342)
11,745,709
-
11,745,709
10,996,831
236,485
-
236,485
-
-
-
-
20,009
368,168
390,604
758,772
1,040,092
-
1,795
1,795
147,474
239,676
(239,676)
-
-
12,590,03 8
152,723
12,742,761
12,204,406
(167,234)
(759,954)
(927,188)
1,335,064
84,229,583
68,027,141
152,256,724
150,921,660
$84,062,349
$67,267,187
$151,329,536
$152,256,724
The accompanying notes are an integral part of these financial statements.
35
CITY OF CHANHASSEN, MINNESOTA
BALANCESHEET
GOVERNMENTALFUNDS
December 31, 2020
With Comparative Totals For December 31, 2019
Assets:
Cash and investments
Accrued interest receivable
Due from other governmental units
Due from other funds
Accounts receivable - net
Property taxes receivable
Prepaid items
Interfund loan receivable
Special assessments receivable
Total assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances
Liabilities:
Accounts payable
Due to other governmental units
Escrow deposits payable
Due to other funds
Salaries payable
Contracts payable
hiterfund loan payable
Unearned revenue
Total liabilities
Deferred inflows of resources:
Unavailable revenue
Fund balances:
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances
Statement 3
605 TH101
Improvements -
Other
601 Revolving
Pioneer to
Governmental
General Fund
Assessment Fund
Flying Cloud
Funds
Total Governmental Funds
2020
2019
$9,273,089
$3,042,986
$128,607
$5,658,893
$18,103,575
$16,128,920
27,343
12,253
-
36,152
75,748
66,396
86,440
1,485,623
522,403
971
2,095,437
1,750,554
-
-
-
-
-
508,701
93,130
465,603
87,074
645,807
130,729
87,260
-
-
87,260
209,707
63,775
49,690
113,465
91,046
-
-
568,962
568,962
749,440
1,085,393
-
319,528
1,404,921
1,707,961
$9,631,037
$6,091,858
$651,010
$6,721,270
$23,095,175
$21,343,454
$203,497
$95,762 $17,509 $592,403
$909,171
$887,969
46,723
1,645,000 - 10,679
1,702,402
271,885
2,294,023
- -
2,294,023
2,221,790
-
-
-
508,701
170,404
- - 3,361
173,765
245,667
-
598,578 557,835 9,889
1,166,302
321,170
80,364 649 - - 81,013 90,159
2,795,011 2,339,989 575,344 616,332 6,326,676 4,547,341
87,260 1,083,394 319,528 1,490,182 1,848,617
63,775 49,690
113,465
91,046
- - - 1,669,927
1,669,927
2,944,091
- 2,668,475 75,666 4,065,793
6,809,934
6,657,125
6,684,991 - - -
6,684,991
5,255,234
6,748,766 2,668,475 75,666 5,785,410
15,278,317
14,947,496
Total liabilities, deferred inflows of resources,
and fund balances $9,631,037 $6,091,858 $651,010 $6,721,270 $23,095,175 $21,343,454
Fund balance reported above
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and, therefore, are not
reported in the funds.
Other long-term assets are not available to pay for current period expenditures and, therefore, are
reported as unavailabe revenue in the funds.
Long-term liabilities, including pension related deferred outflows and inflows, are not due
and payable in the current period and, therefore, are not reported in the funds (see Note IU).
Net position of governmental activities
$15,278,317
$14,947,496
77,468,634
78,971,450
1,490,182
1,848,617
(10,174,784)
(11,537,980)
$84,062,349
$84,229,583
The accompanying notes are an integral part of these financial statements.
a
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND Statement 4
CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
For The Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
Revenues:
General property taxes
Tax increment collections
Licenses and permits
Intergovernmental
Franchise fees
Special assessments
Charges for services
Fines and forfeits
Investment earnings
Contributions and donations
Refunds and reimbursements
Other
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Parks and recreation
Community development
Capital outlay:
General government
Public safety
Public works
Parks and recreation
Debt service:
Principal
Interest and paying agent fees
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Sale of capital assets
Project financing issued
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance - January 1
Fund balance - December 31
General Fund
601 Revolving
Assessment Fund
605 TH101
Improvements -
Pioneer to
Flying Cloud
Other
Governmental
Funds
Total Governmental Funds
2020
2019
$9,241,003
$728,523
$
$1,831,012
$11,800,538
$10,960,876
-
-
236,485
236,485
-
1,546,669
-
28,111
1,574,780
2,047,190
804,688
1,392,456
14,483,520
1,888,665
18,569,329
6,294,417
-
1,648,893
-
177,362
1,826,255
185,181
-
464,021
352
464,373
727,026
347,115
-
199,694
546,809
622,829
73,800
-
-
73,800
89,989
127,746
57,536
182,886
368,168
491,345
31,231
-
24,870
56,101
70,202
55,214
33,731
88,945
73,468
258,802
-
4,400
263,202
209,507
12,486,268
4,291,429
14,483,520
4,607,568
35,868,785
21,772,030
2,272,604
1,089,167
3,361,771
2,644,661
3,765,520
- - 21,385
3,786,905
3,802,544
2,621,483
4,104,652 13,019,108 381,808
20,127,051
6,041,417
1,842,466
- - 12,005
1,854,471
2,418,229
573,498
229,736
803,234
567,461
-
833,034
833,034
110,044
-
- - 387,528
387,528
701,818
-
1,825,842 2,656,163 456,476
4,938,481
4,959,997
-
- 57,129 1,064,094
1,121,223
797,124
1,585,000 1,585,000 720,000
- - - 143,970 143,970 157,312
11,075,571 5,930,494 15,732,400 6,204,203 38,942,668 22,920,607
1,410,697 (1,639,065) (1,248,880) (1,596,635) (3,073,883) (1,148,577)
- 46,443
46,443
25,698
546,108 - -
546,108
-
- 1,563,273 1,248,880 40,724
2,852,877
2,153,197
- - - (40,724)
(40,724)
(855,912)
0 2,109,381 1,248,880 46,443
3,404,704
1,322,983
1,410,697 470,316 0 (1,550,192) 330,821 174,406
5,338,069 2,198,159 75,666 7,335,602 14,947,496 14,773,090
$6,748,766 $2,668,475 $75,666 $5,785,410 $15,278,317 $14,947,496
The accompanying notes are an integral part of these financial statements.
37
CITY OF CHANHASSEN, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
Statement 5
2020
2019
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)
$330,821
$174,406
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
7,280,266
6,568,983
Depreciation expense
(6,405,894)
(5,118,228)
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
235,596
494,542
Transfer of capital assets to Enterprise Funds
(2,572,477)
(1,014,278)
Gain (loss) on disposal/trade-ins of capital assets
(40,307)
85,931
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
(54,829)
35,955
Change in deferred and delinquent special assessments
(303,606)
(90,936)
The issuance of long-term debt provides current financial resources to
governmental funds, while the repayment of the principal of long-term debt
consumes the current financial resources of governmental funds. Neither
transaction, however, has any effect on net position. Also, governmental funds
report the effects of bond premiums when the debt is first issued, whereas amounts
are deferred and amortized over the life of the debt in the statement of activities.
Project financing
(546,108)
-
Repayment of principal
1,585,000
720,000
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
671
(6,112)
Change in other post employment benefits payable
50,208
(20,751)
Change in accrued interest payable
19,992
9,000
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.
237,448
(8,909)
Change in net position of governmental activities (Statement 2)
($167,234)
$1,845,588
The accompanying notes are an integral part of these financial statements.
C13
CITY OF CHANHASSEN,IVHNNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2020
With Comparative Totals For December 31, 2019
Assets:
Current assets:
Cash and cash equivalents
Restricted cash
Accrued interest receivable
Due from other governmental units
Accounts receivable - net
Prepaid items
Water meter inventory
Special assessments receivable
Connection charges receivable
Total current assets
Noncurrent assets:
Receivables not expected to be collected within one year
Capital assets:
Nondepreciable
Depreciable
Total capital assets
Less: Allowance for depreciation
Net capital assets
Total noncurrent assets
Total assets
Deferred outflows of resources:
Related to other post employment benefits
Related to pensions
Total deferred outflows of resources
Liabilities:
Current liabilities:
Accounts payable
Due to other governmental units
Salaries payable
Contracts payable
Accrued interest payable
Unearned revenue
Interfund loan payable - due within one year
Compensated absences payable - due within one year
Bonds payable - due within one year
Total current liabilities
Noncurrent liabilities:
Other post employment benefits
Interfund loan payable
Compensated absences payable
Bonds payable
Net pension liability
Total noncurrent liabilities
Total liabilities
Deferred inflows of resources:
Related to other post employment benefits
Related to pensions
Net position:
Net investment in capital assets
Unrestricted
Total net position
Statement 6
Totals
Surface Water
Water Sewer Management 2020 2019
$6,253,960
$5,468,733
$1,306,293
$13,028,986
$14,984,322
3,605,720
700,357
1,351,863
5,657,940
301
38,273
37,101
7,506
82,880
74,814
1,062
318
13,124
14,504
399,197
600,714
631,268
247,092
1,479,074
1,361,498
20,844
19,037
15,766
55,647
27,481
94,449
-
-
94,449
53,643
28,751
609
29,360
43,371
-
-
-
-
1,607
10,643,773
6,857,423
2,941,644
20,442,840
16,946,234
179,893 179,893 179,893
4,142,201
1,852,872
1,713,413
7,708,486
5,460,631
82,195,844
36,735,924
31,604,446
150,536,214
148,807,219
86,338,045
38,588,796
33,317,859
158,244,700
154,267,850
(35,620,380)
(26,434,798)
(18,673,711)
(80,728,889)
(77,083,929)
50,717,665
12,153,998
14,644,148
77,515,811
77,183,921
50,717,665
12,153,998
14,824,041
77,695,704
77,363,814
61,361,438
19,011,421
17,765,685
98,138,544
94,310,048
1,774 1,469 820 4,063 -
31,145 25,462 15,920 72,527 69,933
32,919 26,931 16,740 76,590 69,933
60,098
51,356
18,692
130,146
172,141
6,198
17,817
29,963
53,978
84,907
18,081
12,798
9,305
40,184
52,592
44717
48,030
3,094
95,841
144,910
357:403
14,697
26,131
398,231
291,450
-
-
1,175
1,175
825
193,593
-
-
193,593
193,225
13,399
11,519
7,183
32,101
27,732
1,865,000
125,000
115,000
2,105,000
1,870,000
2,558,489
281,217
210,543
3,050,249
2,837,782
18,470
15,292
8,540
42,302
-
375,369
-
-
375,369
556,215
72,180
62,054
38,698
172,932
164,343
24,404,056
778,448
1,248,428
26,430,932
21,885,499
359,247
292,161
181,906
833,314
737,966
25,229,322
1,147,955
1,477,572
27,854,849
23,344,023
27,787,811
1,429,172
1,688,115
30,905,098
26,181,805
8,302 6,873 3,839 19,014 -
7,055 9,281 7,499 23,835 171,035
15,357 16,154 11,338 42,849 171,035
28,748,770 12,148,407 14,629,489 55,526,666 54,469,960
4,842,419 5,444,619 1,453,483 11,740,521 13,557,181
$33,591,189 $17,593,026 $16,082,972 $67,267,187 $68,027,141
The accompanying notes are an integral part of these financial statements.
k1s]
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND Statement 7
CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For The Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
Totals
Surface Water
Water
Sewer
Management
2020
2019
Operating revenues:
Charges for services
$3,418,138
$3,160,226
$1,063,616
$7,641,980
$6,862,986
Penalties and other
111,772
51,885
16,982
180,639
211,406
Intergovernmental
486
486
38,580
39,552
428,408
Total operating revenues
3,530,396
3,212,597
1,119,178
7,862,171
7,502,800
Operating expenses:
Personal services
882,002
506,832
363,057
1,751,891
1,573,387
Materials and supplies
307,496
40,497
15,198
363,191
367,954
Contractual services:
MCES
-
2,120,208
-
2,120,208
1,904,789
Other
650,247
534,877
318,135
1,503,259
2,836,936
Repairs and maintenance
395,947
121,819
2,851
520,617
471,996
Depreciation
1,935,991
942,382
956,000
3,834,373
3,825,900
Total operating expenses
4,171,683
4,266,615
1,655,241
10,093,539
10,980,962
Operating income (loss)
(641,287)
(1,054,018)
(536,063)
(2,231,368)
(3,478,162)
Nonoperating revenues (expenses):
Investment earnings
181,155
173,691
35,758
390,604
548,747
Refunds and reimbursements
4,029
47,969
3,235
55,233
6,426
Interest and fiscal charges
(736,794)
(22,577)
(38,385)
(797,756)
(659,503)
Gain (loss) on disposal of capital assets
1,795
(23,004)
(464)
(21,673)
43,498
Total nonoperating revenues (expenses)
(549,815)
176,079
144
(373,592)
(60,832)
Income before contributions and transfers
(1,191,102)
(877,939)
(535,919)
(2,604,960)
(3,538,994)
Transfers in
-
-
-
-
9,453
Transfers out
(1,555,846)
(983,663)
(272,644)
(2,812,153)
(1,306,738)
Capital contributions:
Intergovernmental revenue
-
-
-
-
203,100
Contributions of capital assets
1,908,677
1,149,307
604,290
3,662,274
1,470,361
Special assessments
3,797
82
-
3,879
4,130
Connection charges
566,833
161,614
262,559
991,006
2,648,164
Total contributions and transfers
923,461
327,340
594,205
1,845,006
3,028,470
Change in net position
(267,641)
(550,599)
58,286
(759,954)
(510,524)
Net position - January 1 33,858,830 18,143,625 16,024,686 68,027,141 68,537,665
Net position - December 31 $33,591,189 $17,593,026 $16,082,972 $67,267,187 $68,027,141
Capital Transfers -
Contributions Net
Amounts reported above $4,657,158 ($2,812,153)
Amounts reported for business -type activities in the
statement of activities are different because:
Transfer in of capital assets from governmental activities (2,572,477) 2,572,477
Amounts reported on the statement of activities
$2,084,681 ($239,676)
The accompanying notes are an integral part of these financial statements.
40
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
Cash flows from operating activities:
Receipts from customers and users
Payment to suppliers
Payment to employees
Miscellaneous revenue
Net cash flows provided by (used by) operating activities
Cash flows from noncapital financing activities:
Transfers in
Interfund loan receivable - collections
Interfund loan payable - (payments)
Net cash flows used by
noncapital financing activities
Cash flows from capital and related financing activities:
Acquisition of capital assets
Connection charges
Intergovernmental revenue
Special assessment collections
Transfers out
Proceeds from issuance of bonds
Principal paid on bonds
Interest and fiscal charges
Net cash flows used by capital
and related financing activities
Cash flows from investing activities:
Investment earnings
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - January 1
Cash and cash equivalents - December 31
Reconciliation of operating loss to net cash
provided (used) by operating activities:
Operating loss
Adjustments to reconcile operating loss
to net cash flows from operating activities:
Miscellaneous revenue
Depreciation
Changes in assets and liabilities, deferred outflows and inflows:
Decrease (increase) in receivables
Decrease (increase) in prepaid items
Decrease (increase) in inventory
Decrease (increase) in deferred outflows of resources
Increase (decrease)in payables
Increase (decrease) in other post employment benefits
Increase (decrease) in net pension liability
Increase (decrease) in deferred inflows of resources
Total adjustments
Net cash flows provided by (used in) operating activities
Statement 8
Totals
Surface Water
Water Sewer Management 2020 2019
$3,667,138
$3,182,335
$1,280,165
$8,129,638
$7,330,418
(1,505,685)
(2,767,960)
(371,767)
(4,645,412)
(5,631,758)
(885,367)
(509,928)
(353,239)
(1,748,534)
(1,580,975)
4,029
47,969
3,235
55,233
6,426
1,280,115
(47,584)
558,394
1,790,925
124,111
-
-
-
9,453
-
-
-
96,065
(193,225)
-
(193,225)
(192,867)
(193,225)
0
0
(193,225)
(87,349)
(377,180)
(72,287)
(129,024)
(578,491)
(768,792)
568,037
162,017
262,559
992,613
2,658,845
-
-
-
-
30,000
17,199
691
-
17,890
10,782
(1,555,846)
(983,663)
(272,644)
(2,812,153)
(1,306,738)
4,682,300
711,609
1,374,365
6,768,274
-
(1,807,500)
(62,500)
-
(1,870,000)
(1,850,000)
(757,869)
(15,008)
(23,191)
(796,068)
(766,029)
769,141
(259,141)
1,212,065
1,722,065
(1,991,932)
180,120
167,319
35,099
382,538
550,417
2,036,151
(139,406)
1,805,558
3,702,303
(1,404,753)
7,823,529
6,308,496
852,598
14,984,623
16,389,376
$9,859,680
$6,169,090
$2,658,156
$18,686,926
$14,984,623
($641,287) ($1,054,018) ($536,063) ($2,231,368) ($3,478,162)
4,029
47,969
3,235
55,233
6,426
1,935,991
942,382
956,000
3,834,373
3,825,900
136,742
(30,262)
160,637
267,117
(172,382)
(11,334)
(9,848)
(6,984)
(28,166)
19,609
(40,806)
-
(40,806)
9,230
(2,942)
(2,364)
(1,351)
(6,657)
69,545
(103,710)
54,289
(18,844)
(68,265)
(88,495)
18,470
15,292
8,540
42,302
-
42,919
32,908
19,521
95,348
(36,122)
(57,957)
(43,932)
(26,297)
(128,186)
(31,438)
1,921,402
1,006,434
1,094,457
4,022,293
3,602,273
$1,280,115
($47,584)
$558,394
$1,790,925
$124,111
Noncash investing, capital and financing activities:
Capital assets in the amount of $1,908,677 and $679,114 were contributed to the Water Fund in 2020 and 2019, respectively.
Capital assets in the amount of $1,149,307 and $261,894 were contributed to the Sewer Fund in 2020 and 2019, respectively.
Capital assets in the amount of $604,290 and $529,353 were contributed to the Surface Water Fund in 2020 and 2019, respectively.
The accompanying notes are an integral part of these financial statements.
41
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42
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Chanhassen (the City) was incorporated in 1967 and operates under the State of Minnesota Statutory
Plan B form of government. The governing body consists of a five member City council elected by voters of the
City.
The financial statements of the City have been prepared in conformity with accounting principles generally accepted
in the United States of America as applied to governmental units by the Governmental Accounting Standards Board
(GASB). The following is a summary of the significant accounting policies.
A. FINANCIAL REPORTING ENTITY
In accordance with GASB pronouncements and accounting principles generally accepted in the United
States of America, the financial statements of the reporting entity should include those of the City (the
primary government) and its component units. The component unit discussed below is included in the
City's reporting entity because of the significance of its operational or financial relationships with the City.
COMPONENT UNITS
The City has one component unit, the Economic Development Authority (EDA). The financial
statements of the EDA are included as a blended component unit because its governing body is
substantively the same as the City Council, the City is in a relationship of financial burden with the
EDA, and because management of the City have operational responsibilities for the EDA. Separate
financial statements for the EDA are not prepared.
JOINTLY GOVERNED ORGANIZATIONS
Southwest Area Transit Commission. The City, in conjunction with the Cities of Eden Prairie and
Chaska, has agreed to establish the Southwest Area Transit Commission (the Commission). The
purpose of the Commission is to provide alternative methods of public transit service to the three
cities. The Commission's board is composed of two commissioners from each of the cities.
Western Area Fire Training Association (WAFTA). The City is a member of a joint powers group
along with ten other communities. WAFTA operates a fire training facility in western Carver County.
JOINT POWERS AGREEMENT
The Chanhassen Recreation Center is owned by Independent School District No. 112 and operates
under a joint powers agreement between the City and the School District. The ninety-nine year
agreement expires in 2093. According to the terms of the agreement, the City reimburses the School
District 24% of the cost to operate and maintain the facility.
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
43
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
revenues, are reported separately from business -type activities, which rely to a significant extent on fees
and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
business -type activity, are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or business -type activity. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided
by a given function or business -type activity and 2) grants and contributions that are restricted to meeting
the operational or capital requirements of a particular function or business -type activity. Taxes and other
items not included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
The government -wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded
when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash
flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar
items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been
met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
considers all revenues, except reimbursement grants, to be available if they are collected within 60 days of
the end of the current fiscal period. Reimbursement grants are considered available if they are collected
within one year of the end of the current fiscal period. Expenditures generally are recorded when a liability
is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures
related to compensated absences and claims and judgments, are recorded only when payment is due.
Property taxes, special assessments, intergovernmental revenues, charges for services and interest
associated with the current fiscal period are all considered to be susceptible to accrual and so have been
recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due
within the current fiscal period is considered to be susceptible to accrual as revenue of the current period.
All other revenue items are considered to be measurable and available only when cash is received by the
City.
44
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
The City reports the following major governmental funds:
General Fund is the City's primary operating fund. It accounts for all financial resources of the
general government, except those required to be accounted for in another fund.
Revolving Assessment Fund (601) accounts for the City's annual street re -construction program. The
individual property owner pays a portion of the cost of the annual project with assessments and the
City funds its portion with the reserves created in this fund, an annual tax levy and franchise fees.
TH101 Improvements —Pioneer to Flying Cloud (605) accounts for the funding sources and costs of
the Trunk Highway 101 improvement project, which includes widening of the highway between
Pioneer Trail and Flying Cloud Drive, sanitary sewer and water extension, storm sewer improvements,
pedestrian/bicycle trails, and a pedestrian bridge.
The City reports the following major proprietary funds:
The Water Fund accounts for the water service charges which are used to finance the water system
operating expenses.
The Sewer Fund accounts for the sewer service charges which are used to finance the sanitary sewer
system operating expenses.
The Surface Water Management Fund accounts for the surface water charges which are used to
finance the surface water system operating expenses.
As a general rule the effect of interfund activity has been eliminated from the government -wide financial
statements. Exceptions to this general rule are transactions that would be treated as revenues, expenditures
or expenses if they involved external organizations, such as buying goods and services or payments in lieu
of taxes, are similarly treated when they involve other funds of the City. Elimination of these charges
would distort the direct costs and program revenues reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions,
including special assessments. Internally dedicated resources are reported as general revenues rather than
as program revenues. Likewise, general revenues include all taxes.
Proprietary Funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the
water, sewer, and surface water management enterprise funds are charges to customers for sales and
services. Operating expenses for enterprise funds include the cost of sales and services, administrative
expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are
reported as nonoperating revenues and expenses.
45
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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 2020. Budgeted expenditure appropriations lapse at year end.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the appropriation, is not employed by
the City because it is at present not considered necessary to assure effective budgetary control or to
facilitate effective cash management.
E. LEGAL COMPLIANCE - BUDGETS
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1. The City Manager submits to the City Council a proposed operating budget for the fiscal year
commencing the following January 1. The operating budget includes proposed expenditures and
the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution.
4. Management may authorize transfer of budgeted amounts between departments within any fund.
All budget amendments between funds must be approved by the City Council. The legal level of
budgetary control is at the fund level. Budgetary monitoring, by departments or divisions and by
category, is required by City policy.
5. Formal budgetary integration is employed as a management control device during the year for the
General Fund and for the Contribution, Cemetery and CATV Special Revenue Funds. Formal
budgetary integration is not employed for Debt Service Funds because effective budgetary control
is alternatively achieved through general obligation bond indenture provisions. Budgetary control
for Capital Projects Funds is accomplished through the use of project controls.
The following is a listing of funds whose expenditures exceeded budgeted appropriations:
Expenditures Over
Budgeted Expenditures Actual Expenditures Budget
Cemetery Fund $2,000 $3,563 $1,563
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.
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
For purposes of the statement of cash flows, the Proprietary Funds consider all highly liquid investments
with a maturity of three months or less when purchased to be cash equivalents. All of the cash and
investments allocated to the Proprietary Fund types have original maturities of 90 days or less. Therefore,
the entire balance in such fund types is considered cash equivalents.
G. RECEIVABLES
Property taxes and special assessment receivables have been reported net of estimated uncollectible
accounts (See Note 1 H and I). Because utility bills are considered liens on property, no estimated
uncollectible amounts are established. Uncollectible amounts are not material for other receivables and
have not been reported.
H. PROPERTY TAX REVENUE RECOGNITION
The City Council annually adopts a tax levy and certifies it to the County in December (levy/assessment
date) of each year for collection in the following year. The County is responsible for billing and collecting
all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes
become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are
payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are
payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the County
and remitted to the City on or before July 15 and December 15 of the same year. Delinquent collections for
November and December are received the following January. The City has no ability to enforce payment
of property taxes by property owners. The County possesses this authority.
GOVERNMENT -WIDE FINANCIAL STATEMENTS
The City recognizes property tax revenue in the period for which taxes were levied. Uncollectible property
taxes are not material and have not been reported.
GOVERNMENT FUND FINANCIAL STATEMENTS
The City recognizes property tax revenue when it becomes both measurable and available to finance
expenditures of the current period. In practice, current and delinquent taxes and State credits received by
the City in July, December and January are recognized as revenue for the current year. Taxes collected by
the County by December 31 (remitted to the City the following January) and taxes and credits not received
at year end are classified as delinquent and due from County taxes receivable. The portion of delinquent
taxes not collected by the City in January are fully offset by deferred inflows of resources because they are
not available to finance current expenditures.
The City's property tax revenue includes payments from the Metropolitan Revenue Distribution (Fiscal
Disparities Formula) per State Statute 473F. This statute provides a means of spreading a portion of the
taxable valuation of commercial/industrial real property to various taxing authorities within the defined
metropolitan area. The valuation "shared" is a portion of commercial/industrial property valuation growth
since 1971.
47
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
I. SPECIAL ASSESSMENT REVENUE RECOGNITION
Special assessments are levied against benefited properties for the cost or a portion of the cost of special
assessment improvement projects in accordance with State Statutes. These assessments are collectible by
the City over a term of years usually consistent with the term of the related bond issue. Collection of
annual installments (including interest) is handled by the County Auditor in the same manner as property
taxes. Property owners are allowed to (and often do) prepay future installments without interest or
prepayment penalties.
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property
until full payment is made or the amount is determined to be excessive by the City Council or court action.
If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale and the first
proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the City in payment of
delinquent special assessments. Generally, the City will collect the full amount of its special assessments
not adjusted by City Council or court action. Pursuant to State Statutes, a property shall be subject to a tax
forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which
event the property is subject to such sale after five years.
GOVERNMENT -WIDE FINANCIAL STATEMENTS
The City recognizes special assessment revenue in the period that the assessment roll was adopted by the
City Council. Uncollectible special assessments are not material and have not been reported.
GOVERNMENT FUND FINANCIAL STATEMENTS
Revenue from special assessments is recognized by the City when it becomes measurable and available to
finance expenditures of the current fiscal period. In practice, current and delinquent special assessments
received by the City are recognized as revenue for the current year. Special assessments are collected by
the County and remitted by December 31 (remitted to the City the following January) and are also
recognized as revenue for the current year. All remaining delinquent, deferred and special deferred
assessments receivable in governmental funds are completely offset by deferred inflows of resources.
J. INVENTORIES
GOVERNMENTAL FUNDS
The original cost of materials and supplies are recorded as expenditures at the time of purchase. These
funds do not maintain material amounts of inventories.
PROPRIETARY FUNDS
Inventories of the Proprietary Funds are stated at cost, which approximates market, using the first -in, first -
out (FIFO) method.
48
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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. In accordance
with GASB 89, which the City early implemented for the year ended December 31, 2018, interest incurred
during the construction phase of capital assets of business -type activities is recognized as an expense in the
period in which the cost is incurred.
Capital assets of the City are depreciated/amortized using the straight-line method over the following
estimated useful lives:
Buildings and structures
20 — 50 years
Machinery and equipment (including software)
3 — 30 years
Drainage systems
30 years
Water and sewer lines
30 years
Streets
25 — 50 years
Trails
15 years
Sidewalks
25 years
Other improvements
7 — 40 years
Temporary easements
2 years
M. COMPENSATED ABSENCES
The City compensates all employees upon termination for unused vacation and unused sick time up to a
maximum based upon length of service. The City compensates nonexempt employees for unused comp
time. All vacation pay and comp time is accrued when incurred in the government -wide and proprietary
49
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
fund financial statements. A liability for these amounts is reported in governmental funds only if they have
matured, for example, as a result of employee resignations and retirements. In accordance with the
provisions of GASB Statement No. 16, Accounting for Compensated Absences, no liability is recorded for
nonvesting accumulating rights to receive sick pay benefits. However, a liability is recognized for that
portion of accumulating sick leave benefits that is vested as severance pay.
N. LONG-TERM OBLIGATIONS
In the government -wide financial statements and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business -type activities, or proprietary fund type statement of net position. Bond premiums and
discounts, if material, are amortized over the life of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums and discounts during
the current period. The face amount of debt issued is reported as other financing sources. Premiums
received on debt issuances are reported as other financing sources while discounts on debt issuances are
reported as other financing uses.
O. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element represents a consumption of net
position that applies to future periods and so will not be recognized as an outflow of resources
(expense/expenditure) until then. The government has one item that qualifies for reporting in the category.
It is the pension related deferred outflows of resources reported in the government -wide Statement of Net
Position and the proprietary funds Statement of Net Position.
In addition to liabilities, the statement of financial position reports a separate section for deferred inflows of
resources. This separate financial statement element represents an acquisition of net position that applies to
future periods, and therefore, will not be recognized as an inflow of resources (revenue) until that time.
The government has pension related deferred inflows of resources reported in the government -wide
Statement of Net Pension and the proprietary funds Statements of Net Position. The government also has
an item, which arises only under a modified accrual basis of accounting, that qualifies for reporting in this
category. Accordingly, the item, unavailable revenue, is reported only in the governmental fund balance
sheet. The governmental funds report unavailable revenues from the following sources: property taxes,
special assessments and other revenue not collected within 60 days from year-end.
P. FUND BALANCE CLASSIFICATIONS
In the fund financial statements, governmental funds report fund balance in classifications that disclose
constraints for which amounts in those funds can be spent. These classifications are as follows:
Nonspendable - consists of amounts that are not in spendable form, such as prepaid items.
Restricted - consists of amounts related to externally imposed constraints established by creditors,
grantors or contributors; or constraints imposed by state statutory provisions.
'611i
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Committed - consists of internally imposed constraints. These constraints are established by
Resolution of City Council, and committed amounts cannot be used for any other purpose unless the
City Council removes or changes the specified use by resolution.
Assigned - consists of internally imposed constraints for the specific purpose of the City's intended
use. Pursuant to the City's Fund Balance Policy, the City Manager or Finance Director are authorized
to assign fund balance that reflects the City's intended use of those funds.
Unassigned - is the residual classification for the General Fund and also reflects negative residual
amounts in other funds.
When both restricted and unrestricted resources are available for use, it is the City's policy to first use
restricted resources, and then use unrestricted resources as they are needed.
When committed, assigned or unassigned resources are available for use, it is the City's policy to use
resources in the following order: 1) committed 2) assigned and 3) unassigned. The exception to this is the
Park Acquisition and Development Fund (410), where it is the City's policy to use resources in the
following order: 1) assigned, 2) committed, and 3) restricted.
Q. INTERFUND TRANSACTIONS
During the course of operations, numerous transactions occur between individual funds for goods provided
or services rendered. Interfund services provided and used are accounted for as revenues, expenditures or
expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made
from it that are properly applicable to another fund, are recorded as expenditures/expenses in the
reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
The City provides temporary advances to funds that have insufficient cash balances by means of an
advance from another fund. Short-term interfund loans are classified as "due to/from other funds." Long-
term interfund loans are classified as "interfund loan receivable/payable." Any residual balances
outstanding between the governmental activities and business -type activities are reported in the
government -wide financial statements as "internal balances." All other interfund transactions are reported
as transfers.
R. USE OF ESTIMATES
The preparation of financial statements in accordance with generally accepted accounting principles
(GAAP) requires management to make estimates that affect amounts reported in the financial statements
during the reporting period. Actual results could differ from such estimates.
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
51
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
principles. Accordingly, such information should be read in conjunction with the government's financial
statements for the year ended December 31, 2019, 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 and inflows of resources, and
pension expense, information about the fiduciary net position of the Public Employees Retirement
Association (PERA) and additions to and deductions from PERA's fiduciary net position have been
determined on the same basis as they are reported by PERA, except that PERA's fiscal year end is June 30.
For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments
and refunds are recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value.
SINGLE EMPLOYER PLAN
For purposes of measuring the net pension liability (asset), deferred outflows of resources and deferred
inflows of resources related to pensions, and pension expense, information about the fiduciary net position
of the Chanhassen Fire Department Relief Association (Relief) and additions to/deductions from the
Relief's fiduciary net position have been determined on the same basis as they were reported by the Relief.
For this purpose, benefit payments are recognized when due and payable in accordance with the benefit
terms. Investments are reported at fair value.
52
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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 ($10,174,784) difference are as follows:
Bonds payable
($4,130,000)
Unamortized bond premium
(159,848)
Project financing
(546,108)
Accrued interest payable
(40,708)
Compensated absences payable
(682,281)
Other post employment benefits payable
(125,320)
Net pension liability
(4,413,045)
Deferred outflows of resources related to pensions
626,821
Deferred inflows of resources related to pensions
(660,004)
Deferred outflows of resources related to OPEB
12,038
Deferred inflows of resources related to OPEB
(56,329)
Net adjustment to decrease fund balances - total governmental
funds to arrive at net position - governmental activities ($10,174,784)
V. RECLASSIFICATIONS
Certain amounts presented in the prior year data have been reclassified in order to be consistent with
current year's presentation.
Note 2 DEPOSITS AND INVESTMENTS
A. DEPOSITS
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by
the City Council, all of which are members of the Federal Reserve System.
Custodial Credit Risk — Custodial credit risk is the risk that in the event of a bank failure, the City's
deposits may not be returned to it. Minnesota Statutes require that insurance, surety bonds or collateral
protect all City deposits. The market value of collateral pledged must equal 110% of deposits not covered
by insurance or bonds. The City has no additional deposit policies addressing custodial credit risk. As of
December 31, 2020, the bank balance of the City's deposits was insured by the FDIC or covered by
pledged collateral held in the City's name.
Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City Treasurer
or in a financial institution other than that furnishing the collateral. Minnesota Statute 118.A.03 identifies
allowable forms of collateral.
53
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
At December 31, 2020, the carrying amount of the City's deposits with financial institutions was $991,139.
B. INVESTMENTS
Minnesota Subject to rating, yield, maturity and issuer requirements as prescribed by statue, Minnesota
Statutes 118A.04 and 118A.05 authorized the City to invest in United States securities, state and local
securities, commercial paper, time deposits, high -risk mortgage -backed securities, temporary general
obligation bonds, repurchase agreements, Minnesota joint powers investment trust and guaranteed
investment contracts.
As of December 31, 2020, the City had the following investments and maturities:
Investment Maturities (in Years)
Fair
Less
Investment Type
Rating
Value
Thant
1-5
6-10
Money Market
NR
$11,693,192
$11,693,192
$ -
$
Brokered Certificates of Deposit
NR
4,521,748
2,746,256
1,775,492
Municipal Bonds
(1)
12,199,657
4,264,968
7,547,741
386,948
Federal National Mortgage Assn. Notes
Aaa
502,685
502,685
-
-
Federal Home Loan Mortgage Corp. Notes
Aaa
999,187
-
999,187
Federal Home Loan Bank Notes
Aaa
2,298,208
1,264,503
1,033,705
-
Federal Farm Credit Bank
Aaa
3,584,050
1,004,123
2,003,642
576,285
Total
S35.798.727
$21,475,727
$13,359,767
$963.233
(1) $1,021,170 are rated Asa, $7,246,705 are rated AAA,
Total investments
$35,798,727
$2,408,548 are rated AA+, and $1,523,234 are rated AA.
Deposits
991,139
Petty cash
635
Total cash and investments
$36,790,501
NR - Not Rated
Classifications above are by maturity date. Some investments listed above have call dates that occur in less than one year.
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair
value of the asset. The hierarchy has three levels. Level 1 investments are valued using inputs that are
based on quoted prices in active markets for identical assets. Level 2 investments are valued using inputs
that are based on quoted prices for similar assets or inputs that are observable, either directly or indirectly.
Level 3 investments are valued using inputs that are unobservable.
54
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
The City has the following recurring fair value measurements as of December 31, 2020:
Investment Type
Investments at fair value:
Brokered Certificates of Deposit
Municipal Bonds
Federal National Mortgage Assn. Notes
Federal Home Loan Mortgage Corp. Notes
Federal Home Loan Bank Notes
Federal Farm Credit Bank
Total/subtotal
Investments not categorized:
Money Market
Total
Fair Value Measurement Using
12/31/2020
Level Level Level
$4,521,748
$ $4,521,748 $ -
12,199,657
12,199,657
502,685
502,685
999,187
999,187
2,298,208
2,298,208
3,584,050
3,584,050
24,105,535
$0 $24,105,535 $0
11,693,192
$35,798,727
Cash and investments are presented in the financial statements as follows:
Cash and investments:
Governmental and business -type (Statement 1) $31,132,561
Restricted cash (Statement 1) 5,657,940
Total $36,790,501
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
417
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
agency; mutual funds or money market funds whose investments are restricted to securities described in
MS I I8A.04. The City's investment policy does not place further restrictions on investment options.
Concentration of credit risk — Concentration of credit risk is the risk of loss that may be attributed to the
magnitude of a government's investment in a single issuer. The City's investment policy states
investments shall be diversified by limiting investments to avoid over concentration in securities from a
specific issuer or business sector (excluding U.S. Treasury securities). Investments in a single issuer
exceeding 5% of the City's overall investment portfolio are in various holdings as follows:
Federal Home Loan Bank Notes 6%
Federal Farm Credit Bank 10%
Note 3 RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2020 are as follows:
Interfund
Delinquent
Special
Loan
Property
Assessments
Receivable
Taxes
Receivable
Total
Major Funds:
General
$ -
$35,652
$ -
$35,652
Revolving Assessment Fund
-
-
861,081
861,081
Water
-
-
30,143
30,143
Sewer
-
-
11
11
Nonmajor Funds
375,369
-
319,222
694,591
$375,369
$35,652
$1,210,457
$1,621,478
a
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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 312020, the various
components of unavailable revenue were as follows:
Major Funds
Revolving
General Assessment Nonmajor
Fund Fund Funds Total
Delinquent property taxes receivable $87,260 $ - $ - $87,260
Special assessments not yet due - 1,083,394 319,528 1,402,922
Total unavailable revenue $87,260 $1,083,394 $319,528 $1,490,182
57
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Note 5 CAPITAL ASSETS
Capital asset activity for the year ended December
31, 2020 was as follows:
Beginning
Ending
Primary Government
Balance
Increase
Decrease
Balance
Governmental activities:
Capital assets not being depreciated:
Land
$19,912,318
$ -
$ -
$19,912,318
Construction in progress
1,491,353
729,738
(1,403,788)
817,303
Permanent easements
1,749,556
272,300
2,021,856
Total capital assets not being depreciated
23,153,227
1,002,038
(1,403,788)
22,751,477
Capital assets being depreciated:
Buildings and structures
23,411,160
1,468,155
(66,500)
24,812,815
Machinery and equipment
9,990,718
609,862
(575,167)
10,025,413
Other improvements
9,392,396
174,141
(111,123)
9,455,414
Infrastructure
122,125,843
1,899,993
(234,627)
123,791,209
Temporary easements
3,436,870
1,325,383
4,762,253
Total capital assets being depreciated
168,356,987
5,477,534
(987,417)
172,847,104
Less accumulated depreciation for:
Buildings and structures
9,541,253
568,502
(26,600)
10,083,155
Machinery and equipment
6,100,050
523,917
(460,173)
6,163,794
Other improvements
4,540,881
398,074
(93,311)
4,845,644
Infrastructure
91,966,549
3,194,389
(234,627)
94,926,311
Temporary easements
390,031
1,721,012
2,111,043
Total accumulated depreciation
112,538,764
6,405,894
(814,711)
118,129,947
Governmental activities capital assets - net
$78,971,450
$73,678
($1,576,494)
$77,468,634
Beginning
Ending
Primary Government
Balance
Increase
Decrease
Balance
Business -type activities:
Capital assets not being depreciated:
Land
$2,104,535
$4,200
$ -
$2,108,735
Construction in progress
1,238,374
2,475,298
(904,493)
2,809,179
Permanent easements
2,117,722
672,850
2,790,572
Total capital assets not being depreciated
5,460,631
3,152,348
(904,493)
7,708,486
Capital assets being depreciated:
Buildings and structures
28,077,579
-
28,077,579
Machinery and equipment
2,031,661
163,302
(189,529)
2,005,434
Other improvements
118,697,979
1,835,779
(80,557)
120,453,201
Total capital assets being depreciated
148,807,219
1,999,081
(270,086)
150,536,214
Less accumulated depreciation for:
Buildings and structures
3,299,195
561,611
3,860,806
Machinery and equipment
1,070,641
151,470
(109,813)
1,112,298
Other improvements
72,714,093
3,121,292
(79,600)
75,755,785
Total accumulated depreciation
77,083,929
3,834,373
(189,413)
80,728,889
Business -type activities capital assets - net
77,183,921
1,317,056
(985,166)
77,515,811
Total capital assets - net
$156,155,371
$1,390,734
($2,561,660)
$154,984,445
611
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities:
General government
$272,751
Public safety
216,514
Public works
5,033,821
Parks and recreation
882,808
Total depreciation expense - governmental activities $6,405,894
Business -type activities:
Water $1,935,991
Sewer 942,382
Surface water management 956,000
Total depreciation expense - business -type activities $3,834,373
Note 6 CITY INDEBTEDNESS
The City issues long-term debt to provide funds for the acquisition and construction of major capital facilities. The
City's long-term debt is segregated between the amounts to be repaid from governmental activities and amounts to
be repaid from business -type activities.
GOVERNMENTAL ACTIVITIES
As of December 31, 2020, the governmental activities long-term debt of the City consisted of the following:
General Long -Tenn Debt:
General Obligation Bonds:
G.O. Bonds, Series 2016A
Bond premium
Total general obligation bonds
Project financing
Compensated absences payable
Total City indebtedness - governmental activities
Final Authorized
Issue Maturity Interest And Outstanding
Date Date Rate Issued 12/31/2020
3/3/2016 2/l/2030 2.00%-3.00% 4,805,000 4,130,000
239,773 159,848
5,044,773 4,289,848
N/A 546,108
N/A 682,281
$5,044,773 $5,518,237
i
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
BUSINESS -TYPE ACTIVITIES
As of December 31, 2020, the business -type activities long-term debt of the City consisted of the following:
G.O. Revenue Bonds:
Water Revenue Bonds, Series 2011A
Water Revenue Bonds, Series 2011B
Water and Sewer Revenue Bonds, Series 2012A
Water Revenue Bonds, Series 2016A
Water Revenue Bonds, Series 2016B
Water Revenue Bonds, Series 2017A
Water Revenue Bonds, Series 2018A
Water, Sewer, and Surface Water Revenue Bonds, Series 2020A
Bond premium
Total G.O. revenue bonds
Compensated absences payable
Total City indebtedness - business -type activities
GOVERNMENTAL ACTIVITIES
Final Authorized
Issue Maturity Interest And Outstanding
Date Date Rate Issued 12/31/2020
10/6/2011
2/1/2022
0.30%-2.15%
$5,920,000
$1,000,000
10/6/2011
2/1/2025
2.00%-3.00%
3,720,000
2,680,000
11/15/2012
2/l/2023
1.00%- 1.55%
1,245,000
395,000
3/3/2016
2/l/2026
2.00%-3.00%
1,565,000
990,000
12/29/2016
2/l/2042
3.50%-4.00%
3,630,000
3,630,000
2/1/2017
2/1/2038
2.00%-4.00%
10,000,000
9,300,000
3/15/2018
2/1/2030
3.00%-4.00%
3,595,000
3,070,000
4/2/2020
2/1/2031
2.00%-3.00%
6,220,000
6,220,000
1,626,772
1,250,932
37,521,772
28,535,932
N/A 205,033
$37,521,772 $28,740,965
Annual debt service requirements to maturity for the governmental activities long-term debt are as follows:
Year Ending
General Obligation
Bonds
December 31,
Principal
Interest
2021
$360,000
$92,300
2022
370,000
81,350
2023
385,000
70,025
2024
395,000
58,325
2025
410,000
48,300
2026
420,000
40,000
2027
430,000
31,500
2028
440,000
22,800
2029
455,000
13,850
2030
465,000
4,650
Total
$4,130,000
$463,100
It is not practicable to determine the specific year for payment of long-term accrued compensated absences.
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
BUSINESS -TYPE ACTIVITIES
Annual debt service requirements to maturity for the business -type long-term debt are as follows:
Year Ending G.O. Revenue Bonds
December 31, Principal
Interest
2021
$2,105,000
$853,383
2022
2,060,000
742,422
2023
1,845,000
685,634
2024
1,755,000
631,013
2025
1,810,000
576,763
2026
1,275,000
530,538
2027
1,550,000
488,188
2028
1,600,000
440,938
2029
1,650,000
395,563
2030
1,690,000
352,263
2031
1,150,000
315,488
2032
690,000
290,288
2033
715,000
269,213
2034
735,000
247,463
2035
755,000
225,113
2036
780,000
202,088
2037
800,000
176,388
2038
830,000
147,863
2039
825,000
118,900
2040
855,000
88,431
2041
885,000
54,700
2042
925,000
18,500
Total
$27,285,000
$7,851,140
It is not practicable to determine the specific year for payment of long-term accrued compensated absences.
61
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2020 was as follows:
Governmental activities:
General obligation bonds
Bond premium
Project financing
Compensated absences
Total governmental activity
long-term liabilities
Business -type activities:
G.O. revenue bonds
Bond premium
Compensated absences
Total business -type activity
long-term liabilities
Beginning Ending Due Within
Balance Additions Deletions Balance One Year
$5,715,000 $ -
175,833 -
546,108
($1,585,000) $4,130,000 $360,000
(15,985) 159,848 -
546,108
682,952
581,552
(582,223)
682,281
106,820
$6,573,785
$1,127,660
($2,183,208)
$5,518,237
$466,820
$22,935,000
$6,220,000
($1,870,000)
$27,285,000
$2,105,000
820,499
548,274
(117,841)
1,250,932
-
192,075
178,054
(165,096)
205,033
32,101
$23,947,574
$6,946,328
($2,152,937)
$28,740,965
$2,137,101
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, 2020 is backed by the full faith and credit of the
City. General Obligation Revenue Bonds are serviced by the Sewer, Water and Surface Water Management
Enterprise Funds and are carried as debt of those funds. Other bonds are supported by various Debt Service Funds.
NONEXCHANGE FINANCIAL GUARANTEE OF DEBT
On August 1, 2014 the Carver County Community Development Agency, a legally separate entity from the City,
issued $2,110,000 of Housing Development Refunding Bonds, Series 2014 and $2,370,000 of Taxable Housing
Development and Refunding Bonds, Series 2014T. The proceeds were used to refund a portion of prior bonds and
to fund certain capital improvements of the Centennial Hill Apartments, which are located within the City.
In accordance with Minnesota Statutes, Section 469.034, Subd. 2, the City has pledged its full faith and credit and
taxing powers to the payment of debt service on the Series 2014 and Series 2014T bonds. In the event that the
Carver County Community Development Agency is unable to pay the debt service on the bonds due to insufficient
housing revenues and cash reserves, the City is obligated to pay the debt service. The City's guarantee extends until
the bonds have fully matured, which is scheduled to occur in 2034. The total amount of outstanding guaranteed
debt, including interest, at December 31, 2020 is $4,396,145.
The City's management does not expect the City will be required to make any debt service payments towards these
bonds. Accordingly, the bonds are not reflected in the financial statements of the City.
62
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
PROJECT FINANCING
The City has a Joint Powers Agreement with Carver County for the Lyman Boulevard- Phase 3 project. The County
is administering the project. The City's expected share of project costs is $2,191,108. The City is paying their share
over the next five years at 0% interest. The payment due in 2021 is presented as due to other governments in the
Revolving Assessment Fund. Payments due in greater than one year are presented as long-term debt. The payment
schedule is as follows:
Year Ending
December 31, Payment
2021
$1,645,000
2022
145,000
2023
145,000
2024
145,000
2025
111,108
Total
$2,191,108
63
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
REVENUE PLEDGED
Future revenue pledged for the payment of long-term debt is as follows:
Revenue Pledged
Current
Year
Percent of
Debt service
Remaining
Principal
Pledged
Use of
Total
asa%of
Term of
Principal
and Interest
Revenue
Bond Issue
Proceeds
T
Debt Service
net revenues
Pledge
and Interest
Paid
Received
2016A Refunding bonds
Refunding of 2008A bonds
Property taxes
100%
n/a
2019-2030
$4,593,100
$447,875
$480,600
2011A Water Revenue bonds
Water infrastructure improvements
Water charges
100%
17.9%
2012-2021
$1,016,119
$731,758
$4,096,743
- rof-ded the 2005B bonds
201113 Water Revenue bonds
Water infrastructure improvements
Water charges
100%
13.9%
2012 - 2024
$2,886,700
$567,600
$4,096,743
- refunded the 2005B bonds
2012A Water &Sewer Revenue
Purchase ofineter reading equipment
Water and
100%
1.8%
2013-2022
$403,806
$131,321
$7,308,854
bonds
sewer charges
2016A Water Revenue bonds
Water infrastructure improvements
Water charges
l00%
5.1%
2016-2025
$1,063,775
$178,500
$3,529,910
2016B Water Revenue bonds
West Water Treatment Plant
Water charges
100%
3.4%
2017 - 2041
$6,396,365
$138,238
$4,096,743
2017A Water Revenue bonds
West Water Treatment Plant
Water charges
100%
10.8%
2018-2038
$12,605,350
$441,400
$4,096,743
2018A Water Revenue bonds
West Water Treatment Plant
Water charges
100%
8.8 %
2019 - 2030
$3,557,575
$358,750
$4,096,743
2020A Water, Sewer, & Surface
Water, Sewer, and Surface Water
Water, sewer, and
100%
n/a
2021 - 2031
$7,206,449
$ -
$8,389,452
Water Revenue bonds
Infrastructure improvements
surface water charges
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,
2020.
Future scheduled tax levies for all bonds outstanding at December 31, 2020 totaled $4,393,463.
64
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Note 8 DEFINED BENEFIT PENSION PLANS
A. PLAN DESCRIPTION
The City participates in the following cost -sharing multiple -employer defined benefit pension plans
administered by the Public Employees Retirement Association of Minnesota (PERA). PERA's defined benefit
pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356.
PERA's defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue
Code.
1. General Employees Retirement Fund (GERF)
All full-time (with the exception of employees covered by PEPFF) and certain part-time employees of the
City are covered by the General Employees Retirement Fund (GERF). GERF members belong to the
Coordinated Plan. Coordinated Plan members are covered by Social Security.
2. Public Employees Police and Fire Fund (PEPFF)
The PEPFF, originally established for police officers and firefighters not covered by a local relief
association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the
PEPFF also covers police officers and firefighters belonging to local relief associations that elected to
merge with and transfer assets and administration to PERA.
B. BENEFITS PROVIDED
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and
can only be modified by the state Legislature. Vested, terminated employees who are entitled to benefits but are
not receiving them yet are bound by the provisions in effect at the time they last terminated their public service.
1. GERF Benefits
Benefits are based on a member's highest average salary for any five successive years of allowable service,
age, and years of credit at termination of service. Two methods are used to compute benefits for PERA's
Coordinated members. Members hired prior to July 1, 1989 receive the higher of Method 1 or Method 2
formulas. Only Method 2 is used for members hired after June 30, 1989. Under Method 1, the accrual rate
for Coordinated members is 1.2% of average salary for each of the first ten years of service and 1.7% of
average salary for each additional year. Under Method 2, the accrual rate for Coordinated Plan members is
1.7% of average salary for all years of service. For members hired prior to July 1, 1989 a full annuity is
available when age plus years of service equal 90 and normal retirement age is 65. For members hired on
or after July 1, 1989, normal retirement age is the age for unreduced Social Security benefits capped at 66.
Benefit increases are provided to benefit recipients each January. Beginning in 2019, the postretirement
increase is equal to 50% of the cost -of -living adjustment (COLA) announced by the SSA, with a minimum
increase of at least 1% and a maximum of 1.5%. Recipients that have been receiving the annuity or benefit
for at least a full year as of the June 30 before the effective date of the increase will receive the full
increase. For recipients receiving the annuity or benefit for at least one month but less than a full year as of
the June 30 before the effective date of the increase will receive a reduced prorated increase. For members
retiring on January 1, 2024 or later, the increase will be delayed until normal retirement age (age 65 if hired
�1
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
prior to July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring under Rule
of 90 are exempt from the delay to normal retirement.
2. PEPFF Benefits
Benefits for the PEPFF members first hired after June 30, 2010 but before July 1, 2014 vest on a prorated
basis from 50% after five years up to 100% after ten years of credited service. Benefits for PEPFF
members first hired after June 30, 2014 vest on a prorated basis from 50% after ten years up to 100% after
twenty years of credited service. The annuity accrual rate is 3% of average salary for each year of service.
For PEPFF members who were first hired prior to July 1, 1989, a full annuity is available when age plus
years of service equal at least 90.
Benefit increases are provided to benefit recipients each January. Beginning in 2019, the postretirement
increase will be fixed at 1%. Recipients that have been receiving the annuity or benefit for at least 36
months as of the June 30 before the effective date of the increase will receive the full increase. For
recipients receiving the annuity or benefit for at least 25 months but less than 36 months as of the June 30
before the effective date of the increase will receive a reduced prorated increase.
C. CONTRIBUTIONS
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can
only be modified by the state legislature.
1. GERF Contributions
Coordinated Plan members were required to contribute 6.5% of their annual covered salary in fiscal year
2020 and the City was required to contribute 7.5% for Coordinated Plan members. The City's
contributions to the GERF for the year ended December 31, 2020 were $409,847. The City's contributions
were equal to the required contributions as set by state statute.
2. PEPFF Contributions
Police and Fire member's contribution rates increased from 11.3% of pay to 11.8% and employer rates
increased from 16.95% to 17.70% on January 1, 2020. The City's contributions to the PEPFF for the year
ended December 31, 2020 were $40,530. The City's contributions were equal to the required contributions
as set by state statute.
All
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
D. PENSION COSTS
1. GERF Pension Costs
At December 31, 2020, the City reported a liability of $4,442,634 for its proportionate share of GERF's net
pension liability. The City's net pension liability reflected a reduction due to the State of Minnesota's
contribution of $16 million. The State of Minnesota is considered a non -employer contributing entity and
the state's contribution meets the definition of a special funding situation. The State of Minnesota's
proportionate share of the net pension liability associated with the City totaled $137,022. The net pension
liability was measured as of June 30, 2020, 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, 2019 through June 30, 2020, relative to the total employer
contributions received from all of PERA's participating employers. The City's proportionate share was
0.0741 % at the end of the measurement period and 0.0727% for the beginning of the period.
City's proportionate share of the net pension liability $4,442,634
State of Minnesota's proportionate share of the net pension
liability associated with the City 137,022
Total $4,579,656
For the year ended December 31, 2020, the City recognized pension expense of $168,716 for its
proportionate share of the GERF's pension expense. In addition, the City recognized an additional $11,925
as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's contribution
of $16 million to the GERF.
At December 31, 2020, the City reported its proportionate share of the GERF's deferred outflows of
resources and deferred inflows of resources related to pensions from the following sources:
Differences between expected and
actual economic experience
Changes in actuarial assumptions
Difference between projected and
actual investment earnings
Changes in proportion
Contributions paid to PERA
subsequent to the measurement date
Total
Deferred Outflows
of Resources
$40,521
74,856
69,513
Deferred Inflows
of Resources
$16,809
165,164
96,217
207,521 -
$392,411 $278,190
67
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
The $207,521 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 ending December 31, 2021. 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
2021
(270,831)
2022
(33,535)
2023
103,731
2024
107,335
Thereafter
-
(93,300)
2. PEPFF Pension Costs
At December 31, 2020, the City reported a liability of $263,621 for its proportionate share of the
PEPFF's net pension liability. The net pension liability was measured as of June 30, 2020 and the total
pension liability used to calculate the net pension liability was determined by an actuarial valuation as
of that date. The City's proportionate share of the net pension liability was based on the City's
contributions received by PERA during the measurement period for employer payroll paid dates from
July 1, 2019 through June 30, 2020, relative to the total employer contributions received from all of
PERA's participating employers. The City's proportionate share was 0.0200% at the end of the
measurement period and 0.0205% for the beginning of the period.
The State of Minnesota also contributed $13.5 million to PEPFF during the plan fiscal year ended June
30, 2020. The contribution consisted of $4.5 million in direct state aid that does meet the definition of
a special funding situation and $9.0 million in fire state aid that does not meet the definition of a
special funding situation. The $4.5 million direct state was paid on October 1, 2019. Thereafter, by
October 1 of each year, the state will pay $9 million to the Police and Fire Fund until full funding is
reached or July 1, 2048, whichever is earlier. The $9 million in fire state aid will continue until the
fund is 90 percent funded, or until the State Patrol Plan (administered by the Minnesota State
Retirement System) is 90 percent funded, whichever occurs later.
As a result, the State of Minnesota is included as a non -employer contributing entity in the PEPFF
Schedule of Employer Allocations and Schedule of Pension Amounts by Employer, Current Reporting
Period Only (pension allocation schedules) for the $4.5 million in direct state aid. PEPFF employers
need to recognize their proportionate share of the State of Minnesota's pension expense (and grant
revenue) under GASB 68 special funding situation accounting and financial reporting requirements.
For the year ended December 31, 2020, the City recognized pension expense of $43,707 for its
proportionate share of the Police and Fire Plan's pension expense. In addition, the City recognized an
additional $1,913 as pension expense (and grant revenue) for its proportionate share of the State of
Minnesota's contribution of $4.5 million to the PEPFF.
The State of Minnesota is not included as a non -employer contributing entity in the Police and Fire
Pension Plan pension allocation schedules for the $9 million in fire state aid. The City also recognized
A3
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
$1,913 for the year ended December 31, 2020 as revenue and an offsetting reduction of net pension
liability for its proportionate share of the State of Minnesota's on -behalf contributions to the Police and
Fire Fund.
At December 31, 2020, the City reported its proportionate share of the PEPFF's deferred outflows of
resources and deferred inflows of resources related to pensions from the following sources:
Differences between expected and
actual economic experience
Changes in actuarial assumptions
Net collective between projected and
actual investment earnings
Changes in proportion
Contributions paid to PERA
subsequent to the measurement date
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
$11,631
$12,597
88,897
164,129
8,267
-
22,811
17,001
20,378
-
$151,984
$193,727
The $20,378 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 ending December 31, 2021. Other amounts reported as deferred outflows and inflows
of resources related to pensions will be recognized in pension expense as outflows:
Year Ended Pension
December 31, Expense
2021
(19,257)
2022
(72,416)
2023
17,372
2024
12,874
2025
(694)
Thereafter
-
(62,120)
The net pension liability will be liquidated by the general, water, sewer, and surface water management
funds.
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
E. ACTUARIAL ASSUMPTIONS
The total pension liability in the June 30, 2020 actuarial valuation was determined using an individual
entry -age normal actuarial cost method and the following actuarial assumptions:
Inflation 2.50% per year
Salary Growth 3.25% per year
Investment Rate of Return 7.50%
Salary increases were based on a service -related table. Mortality rates for active members, retirees,
survivors, and disabilitants for all plans were based on RP 2014 tables for males or females, as appropriate,
with slight adjustments to fit PERA's experience. Cost of living benefit increases after retirement for
retirees are assumed to be 1.25% per year for GERF and 1.0% per year for PEPFF.
Actuarial assumptions used in the June 30, 2020 valuation were based on the results of actuarial experience
studies. The most recent four-year experience study for GERF was completed in 2019. The assumption
changes were adopted by the Board and become effective with the July 1, 2020 actuarial valuation. The
most recent four-year experience study for PEPFF was completed in 2020.
The following changes in actuarial assumptions and plan provisions occurred in 2020:
General Employees Fund
Changes in Actuarial Assumptions:
• The price inflation assumption was decreased from 2.50% to 2.25%.
• The payroll growth assumption was decreased from 3.25% to 3.00%.
• As recommended in the June 30, 2019 experience study, assumed salary increase rates were
decreased 0.25% and assumed rates of retirement were changed resulting in more unreduced
(normal) retirements and slightly fewer Rule of 90 and early retirements. Assumed rates of
termination and disability were also changed.
• The base mortality tables were changed from RP-2014 tables to Pub-2010 tables, with
adjustments.
• The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.
• The assumed spouse age difference was changed from two years older for females to one year
older.
• The assumed number of married male new retirees electing the 100% Joint & Survivor option
changed from 35% to 45%. The assumed number of married female new retirees electing the
100% Joint & Survivor option changed from 15% to 30%. The corresponding number of married
new retirees electing the Life annuity option was adjusted accordingly.
Changes in Plan Provisions:
• Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020
through December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations
occurring after June 30, 2020.
70
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Police and Fire Fund
Changes in Actuarial Assumptions
• The mortality projection scale was changed from MP-2018 to MP-2019.
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:
Asset Class
Domestic Stock
International Stock
Bonds (Fixed Income)
Alternative Assets (Private Markets)
Cash
Total
F. DISCOUNT RATE
Target
Allocation
35.5%
17.5%
20%
25%
2%
100%
Long -Term Expected
Real Rate of Return
5.10%
5.30%
0.75%
5.90%
0.00%
The discount rate used to measure the total pension liability in 2020 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 the rate set in Minnesota statutes. Based on that assumption, the fiduciary net position of
the GERF and the PEPFF was projected to be available to make all projected future benefit payments of
current plan members. Therefore, the long-term expected rate of return on pension plan investments was
applied to all periods of projected benefit payments to determine the total pension liability.
G. PENSION LIABILITY SENSITIVITY
The following presents the City's proportionate share of the net pension liability 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 $7,120,001 $4,442,634 $2,234,021
City's Proportionate share of the
PEPFF net pension liability $525,435 $263,621 $47,016
71
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
H. PENSION PLAN FIDUCIARY NET POSITION
Detailed information about each pension plan's fiduciary net position is available in a separately -issued
PERA financial report that includes financial statements and required supplementary information. That
report may be obtained at www.mnpera.org.
I. PENSION EXPENSE
Pension expense recognized by the City for the fiscal year ended December 31, 2020 is as follows:
GERF $168,176
PEPFF 43,707
Fire Relief (note 9) 183,852
Total $395,735
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.
72
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Monthly service pensions shall be $410 per month. Defined benefit service pension per year of service shall
be $6,800. The maximum service pension shall not exceed the maximum service pension amount
permitted under the flexible service pension maximums pursuant to Minnesota Section 424A.02,
Subdivision 3. Members who choose the lump sum receive no additional interest accrual.
Ten Year Service But Less Than Twenty Year Service
Each member who is at least 50 years of age; who has retired from the Fire Department; who has served at
least five years of active service with such department before retirement but has not served at least 20 years
of active service; and, who has been a member of the Relief Association in good standing at least ten years
prior to such retirement, shall be entitled to either a pro -rated monthly service pension or a pro -rated lump
sum service pension based on the percentages in the following table:
For Duty of:
more than but less than
5 years
6 years
40%
6
7
44
7
8
48
8
9
52
9
10
56
10
11
60
11
12
64
12
13
68
13
14
72
14
15
76
15
16
80
16
17
84
17
18
88
18
19
92
19
20
96
20
100
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.
73
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Permanent Disability
Any member of the Relief Association contracting sickness or injury, incapacitating the member from
attending to their business, from causes outside or within their line of duty, and a physician's report shows
that that member is unable to perform their duties, they are entitled to their full accrued lump sum benefit,
payable immediately.
Temporary Disability
Any member of the Relief Association who becomes temporarily incapacitated from attending to their
business due to illness of injury, sustained in the performance of such business, and is unable to work for a
period of one week or longer, shall be paid a benefit of $5 per day for a period of no longer than 120 days
in any one fiscal year, providing the member is under the care of a physician or doctor during this period.
Death Benefit
Upon the death of any active or deferred member, the beneficiaries of the deceased member shall be paid a
death benefit in an amount equivalent to the accrued service pension.
D. EMPLOYEES COVERED BY BENEFIT TERMS
At December 31, 2020, the following employees were covered by the benefit terms:
Retirees and beneficiaries
currently receiving benefits
Retired members entitled to
benefits but have not received them
25
Active members:
Fully vested (20 years or more) 3
Partially vested (5 years to 19 years) 18
Non -vested (less than 5 years) 20
Total
E. CONTRIBUTIONS
70
Minnesota Statutes Chapter 424A.092 specifies minimum support rates required on an annual basis. The
minimum support rates from the municipality and from State Aid are determined as the amount required to
meet the normal cost plus amortizing any existing prior service costs over a ten-year period. The
significant actuarial assumptions used to compute the municipal support are not the same as those used to
compute the accrued pension liability. The Relief Association is comprised of volunteers; therefore, there
are no payroll expenditures (i.e., there are no covered payroll percentage calculations).
Contributions totaling $235,495 ($203,495 from the State of Minnesota and $31,957 from the City) were
made to the Relief Association in accordance with state statute requirements for the year ended December
31, 2020.
74
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
F. ACTUARIAL METHOD AND SIGNIFICANT ASSUMPTIONS
The total pension liability was determined by an actuarial valuation as of December 31, 2020 using the
following actuarial assumptions, applied to all periods in the measurement:
Valuation date
Measurement date (assets and funded status)
Actuarial cost method
Amortization method
Asset valuation method
Actuarial assumptions:
Investment rate of return
Projected salary increases
Includes inflation at
Cost -of -living adjustments
Age of service retirement
Post -retirement benefit increases
12/31 /2020
12/31 /2020
Entry Age Normal
Level dollar
Closed 20-year period
Market Value
5%
N/A
3%
3%
The later of the age 50 and 20
years of service
None
Mortality assumptions were determined using the Pubs-2010 Mortality table projected generationally from
2010 with MP-2010 Mortality improvement scale.
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which expected future real rates of return (expected returns, net of pension plan investment
expense and inflation) are developed for each major asset class. These expected real rates of return are
combined to produce the long-term expected rate of return by weighting the expected future real rates of
return by the target asset allocation percentage and by adding expected inflation. For each major asset class
that is included in the pension plan's target asset allocation as of December 31, 2020, these best estimates
are summarized in the following table:
Target Long -Term Expected
Asset Class Allocation Real Rate of Return
Stock and mutual funds 60% 5.2%
Fixed income 30% 0.6%
Other 5% 0.6%
Cash 5% 0.0%
100%
G. DISCOUNT RATES
The discount rate used to measure the total pension liability was 5%. The projection of cash flows used to
determine the discount rate assumed that plan member contributions will be made at the current
contribution rate and that contributions will be made at rates equal to the difference between actuarially
determined contribution rates and the member rate. Based on those assumptions, the pensions plans
fiduciary net position was projected to be available to make all projected future benefit payments to
75
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
current plan members. Therefore, the plan's long-term expected return on plan investments was applied
to all periods of projected benefit payments to determine the total pension liability.
H. CHANGES IN THE NET PENSION LIABILITY
Balance at December 31, 2019
Changes for the year:
Service cost
Interest
Changes in benefit terms
Differences between expected
and actual experience
Changes of assumptions
Contributions - employer
On behalf contributions - State of MN
Contributions - employee
Net investment income
Benefit payments, including refunds of employee
contributions
Administrative expense
Other changes
Net changes
Balance at December 31, 2020
I. PENSION LIABILITY SENSITIVITY
Increase (Decrease)
Total Pension
Plan Fiduciary
Net Pension
Liability
Net Position
Liability
(a)
(b)
(a) - (b)
$3,055,205
$2,499,867
$555,338
150,695
-
150,695
156,622
-
156,622
76,350
76,350
58,144
-
58,144
-
31,957
(31,957)
-
203,495
(203,495)
-
237,593
(237,593)
(206,737)
(206,737)
-
-
(16,000)
16,000
235,074
250,308
(15,234)
$3,290,279
$2,750,175
$540,104
The following presents the net pension liability of the Relief Association, calculated using the discount
rate of 5.0%, as well as what the net pension liability would be if it were calculated using a discount rate
that is 1-percentage-point lower (4.0%) or 1-percentage-point higher (6.0%) than the current rate:
Current
1% Decrease Discount Rate 1% Increase
(4.0%) (5.0%) (6.0%)
Net pension liability $716,901 $540,104 $379,048
76
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
J. PENSION PLAN FIDUCIARY NET POSITION
Detailed information about the pension plan's fiduciary net position is available in the separately issued
Relief Association financial report. That report may be obtained by writing to Chanhassen Fire
Department Relief Association, P.O. Box 147, Chanhassen, Minnesota, 55317.
K. PENSION EXPENSE AND DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED
INFLOWS OF RESOURCES RLEATED TO PENSIONS
For the year ended December 31, 2020, the City recognized pension expense of $183,852, including
$203,495 and $31,957 as pension expense (and grant revenue) for the State of Minnesota's on -behalf
contribution to the plan and the City's on -behalf contribution to the plan, respectively. At December 31,
2020, the City reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Differences between expected and
actual economic experience
Changes in actuarial assumptions
Difference between projected and
actual investment earnings
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
$62,109 $47,430
92,843 969
163,523
$154,952 $211,922
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized as pension expense as follows:
Year Ended Pension
December 31, Expense
2021
($111)
2022
(6,417)
2023
(55,181)
2024
4,739
2025
-
Thereafter
-
77
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Note 10 DEFINED CONTRIBUTION PLAN
Four Council members of the City of Chanhassen are covered by the Public Employees Defined
Contribution Plan (PEDCP), a multiple -employer deferred compensation plan administered by PERA. The
PEDCP is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by
or on behalf of employees are tax deferred until time of withdrawal.
Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less
administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the
employee and employer contribution rates for those qualified personnel who elect to participate. An eligible
elected official who decides to participate contributes 5% of salary which is matched by the elected
official's employer. For ambulance service personnel, employer contributions are determined by the
employer, and for salaried employees must be a fixed percentage of salary. Employer contributions for
volunteer personnel may be a unit value for each call or period of alert duty. Employees who are paid for
their services may elect to make member contributions in an amount not to exceed the employer share.
Employer and employee contributions are combined and used to purchase shares in one or more of the
seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA
receives 2% of employer contributions and twenty-five hundredths of 1 % (.0025) of the assets in each
member's account annually.
Total contributions made by the City during fiscal year 2020 were:
Contribution Amount Percentage of Covered Payroll Required
Employer
Employee (Pension Expense) Employee Employer
$1,766 $1,766 5% 5%
Note 11 OTHER POST -EMPLOYMENT BENEFITS (OPEB)
A. PLAN DESCRIPTION
Rate
5%
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.
78
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
The surviving spouse of an active employee may continue coverage in the group health insurance plan after
the employee's death.
All health care coverage is provided through the City's group health insurance plans. The retiree is
required to pay 100% of their premium cost for the City -sponsored group health insurance plan in which
they participate. The premium is a blended rate determined on the entire active and retiree population.
Since the projected claims costs for retirees exceed the blended premium paid by retirees, the retirees are
receiving an implicit rate subsidy (benefit). The coverage levels are the same as those afforded to active
employees. Upon a retiree reaching age 65, Medicare becomes the primary insurer and the City's plan
becomes secondary.
C. PARTICIPANTS
As of the January 1, 2020 actuarial valuation, participants consisted of
Active employees receiving benefits 70
Inactive employees currently receiving
or entitled to receive benefits -
Total 70
D. TOTAL OPEB LIABILITY AND CHANGES IN TOTAL OPEB LIABILITY
The City's total OPEB liability of $167,623 was measured as of December 31, 2020, and was determined
by an actuarial valuation as of December 31, 2020. Changes in the total OPEB liability during 2020 were:
Balance - beginning of year
$155,719
Changes for the year:
Service cost
13,504
Interest
5,463
Changes of benefit terms
-
Differences between expected and actual experience
(12,888)
Changes in assumptions
9,168
Benefit payments
(3,343)
Net changes
11,904
Balance - end of year
$167,623
The OPEB liability is liquidated by the General fund, water fund, sewer fund, and surface water management fund.
79
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
E. ACTUARIAL ASSUMPTIONS AND OTHER INPUTS
The total OPEB liability in the December 31, 2020 actuarial valuation was determined using the following
actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise
specified:
Inflation 2.50%
Salary increases Based on the most recent disclosed assumptions for the pension plan in which
the employee participates.
Discount rate 2.12%
Investment rate of return 2.12%
Healthcare cost trend rates 7.5% for 2020 gradually decreasing to an ultimate rate of 4.5% in 2027 and
beyond.
Retirees' share of benefit -related costs 100%
Since the plan is funded on a pay-as-you-go basis, both the discount rate and the investment rate of return
was based on the 20 year AA rated municipal bond rate as of December 31, 2020, obtained from the Bond
Buyer G.O. 20 year Bond Muncipal Bond Index.
Mortality rates were based on the SOA Pub-2010 General Headcount Weighted Mortality Table fully
generational using Scale MP-2019 for active and retirees and SOA Pub-2010 Continuing Survivor
Headcount Weighted Mortality Table fully generational using Scale MP-2019 for surviving spouses.
20% of employees are assumed to elect spousal coverage at retirement. Husbands are assumed to be three
years older than wives. Actual spousal coverage and age is used for retirees.
F. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE DISCOUNT RATE
The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability
would be if it were calculated using a discount rate that is 1% lower (1.12%) or 1% higher (3.12%) than the
current discount rate:
1 % Decrease Discount Rate 1 % Increase
(1.12%) (2.12%) (3.12%)
Total OPEB liability $175,870 $167,623 $159,564
1I1
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
G. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE HEALTHCARE COST
TREND RATES
The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability
would be if it were calculated using healthcare cost trend rates that are 1% lower (6.5% decreasing to 3.5%)
or 1% higher (8.5% decreasing to 5.50%) than the current healthcare cost trend rates:
Healthcare Cost
1 % Decrease Trend Rates 1% Increase
(6.5% decreasing to 3.5%) (7.5% decreasing to 4.5%) (8.5% decreasing to 5.50%)
Total OPEB liability $153,206 $167,623 $184,093
H. OPEB EXPENSE AND DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED
TO OPEB
For the year ended December 31, 2020, the City recognized $10,392 of OPEB expense. At December 31,
2020, the City reported deferred outflows and inflows of resources related to OPEB from the following
sources:
Differences between expected and actual experience
Changes in actuarial assumptions
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
$ - $75,343
16,102 -
$16,102 $75,343
Amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in
OPEB expense as follows:
Year Ended OPEB
December 31, Expense
2021
($8,579)
2022
(8,579)
2023
(8,579)
2024
(8,579)
2024
(8,579)
Thereafter
(16,346)
I. ACTUARIAL METHODS AND ASSUMPTIONS
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality and the health care cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions (ARC) of the employer are
subject to continual revision as actual results are compared with past expectations and new estimates are
made about the future. The schedule of funding progress, presented as required supplementary information
following the notes to financial statements, presents multi -year trend information that shows whether the
81
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued
liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the time of
each valuation and the historical pattern of sharing of benefit costs between the employer and plan
members to that point. The actuarial methods and assumptions used include techniques that are designed to
reduce the effect of short-term volatility in actuarial accrued liabilities and the actuarial value of assets,
consistent with the long-term perspective of the calculations.
In the December 31, 2020 actuarial valuation, the projected unit credit actuarial pay cost method was used.
The actuarial assumptions included a 2.12% investment rate of return (net of administrative expenses) and
an annual health care cost trend rate of 7.5% for 2020, decreasing by 0.5% annually to an ultimate rate of
4.5%. These rates include a 2.5% inflation rate. The actuarial value of assets was $0. The plan's unfunded
actuarial accrued liability is being amortized using the level percentage of projected payroll method over 30
years on an open basis. The remaining amortization period at December 31, 2020 was 30 years.
Note 12 INTERFUND LOANS AND TRANSFERS
Amounts reported as interfund loan receivable/payable at December 31, 2020 are as follows:
Major Funds:
Water Fund
Nonmajor Funds
Total
Interfund
Interfund
Loan Receivable
Loan Payable
$ -
$568,962
568,962
-
$568,962
$568,962
82
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
During 2015, the City adopted resolution 2015-15 authorizing an interfund loan to finance construction of Well #15.
The Water Fund borrowed $700,000 from the Revolving Assessment Fund and $700,000 from the Capital
Equipment Replacement Fund. The loan is being repaid at an interest rate of 2.5% over eight years. Payments
during years 2016-2019 were made to the Revolving Assessment Fund and payments during years 2020-2023 will
be made to the Capital Replacement Fund. There were $193,225 of repayments in 2020 and $193,593 is expected to
be repaid in 2021.
Interfund transfers made during 2020 are summarized as follows:
Major Funds:
General Fund
Revolving Assessment Fund
TH101 Improvements - Pioneer to Flying Cloud
Water Fund
Sewer Fund
Surface Water Management Fund
Nonmajor Funds
Total
Transfers In Transfers Out
1,563,273
1,248,880
- 1,555,846
983,663
- 272,644
40,724 40,724
$2,852,877 $2,852,877
$2,812,153 of interfund transfers were made to finance capital expenditures, primarily in the Revolving Assessment
Fund and TH101 Improvements Fund. These transfers are considered routine and consistent with previous
practices.
Note 13 CONDUIT DEBT
From time to time, the City has issued conduit debt to provide financial assistance to private -sector entities for the
acquisition and construction of facilities deemed to be in the public interest. The bonds are secured by the property
financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the
bonds, ownership of the acquired facilities transfers to the private -sector entity served by the bond issuance. Neither
the City, the State, nor any political subdivision thereof is obligated in any manner for the repayment of the bonds.
Accordingly, the bonds are not reported as liabilities in the accompanying financial statements.
As of December 31, 2020, the outstanding conduit debt is as follows:
Bonds
Original
12/31/2020
Project Name Issued
Principal
Principal
St. Hubert Catholic Community, Series 2007 10/07
$5,942,140
$2,032,032
Presbyterian Homes, Series 2014B 06/14
9,300,000
6,848,105
Note 14 DEFICIT FUND BALANCES
The City does not have any funds with a deficit fund balance at December 31, 2020.
Maturity
Date
2027
2034
83
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Note 15 COMMITMENTS AND CONTINGENCIES
A. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors
and omissions; injuries to employees; and natural disasters. The City continues to carry commercial insurance for
risks of loss, including workers compensation, property and general liability and employee health and accident
insurance. There were no significant reductions in insurance from the previous year or settlements in excess of
insurance coverage for any of the past three fiscal years.
B. LITIGATION
The City is in the process of acquiring land for the Lyman Boulevard Phase 2 Project. During 2019, the
City and Carver County agreed on an amount for condemnation of two properties. The property owners
declined the offer and are suing the City and County for damages. The total amount of damages sought by
the property owners is $5,028,510. The total estimated damages per the County appraiser was $432,500.
The total amounts awarded by the County Commissioners was $760,500. The property owners appealed
that award to a Jury Trial that is scheduled to take place in the future. The degree of probability of an
unfavorable outcome, above and beyond the settlement amount awarded by the County Commissioners, in
the Jury Trials is unknown. The City is unable to make a reasonable estimate of the amount of loss, above
and beyond the settlement amount awarded by the County Commissioners.
C. WESTERN AREA FIRE TRAINING ACADEMY
A potential claim may be asserted against the City arising out of its membership in the Western Area Fire
Training Academy (WAFTA). WAFTA is a joint powers entity consisting of 11 member cities that was
formed in 1974 to purchase property to be used and operated as a fire training facility. In the late 1980's,
WAFTA became aware that the site was contaminated. Since that time, WAFTA has been working with the
Minnesota Pollution Control Agency (MPCA) and other responsible parties to address the contamination
issues on the site. At this time, the City's share of the potential cost to remediate the site cannot be
determined, nor has a claim been asserted against WAFTA or the City. Based on recent studies of the site,
it is Management's belief that the amount of any potential claim is not material to the financial statements.
D. FEDERAL AND STATE FUNDS
The City receives financial assistance from federal and state governmental agencies in the form of grants.
The disbursement of funds received under these programs generally requires compliance with the terms and
conditions specified in the grant agreements and is subject to audit by the grantor agencies. Any
disallowed claims resulting from such audits could become a liability of the applicable fund. However, in
the opinion of management, any such disallowed claims will not have a material effect on any of the
financial statements of the individual fund types included herein or on the overall financial position of the
City at December 31, 2020.
84
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
E. TAX ABATEMENTS — PAY-AS-YOU-GO TAX INCREMENT
The City occasionally provides tax abatements pursuant to Minnesota Statutes 469.174 to 469.1794 (Tax
Increment Financing) through a pay-as-you-go note program. Tax increment financing (TIF) can be used
to encourage private development, redevelopment, renovation and renewal, growth in low -to -moderate -
income housing, and economic development within the City. TIF captures the increase in tax capacity and
property taxes from development or redevelopment to provide funding for the related project.
The City has one tax increment district, which has an outstanding pay-as-you-go revenue note. The note is
not a general obligation of the City and is payable solely from available tax increments. Accordingly, the
note is not reflected in the financial statements of the City. Details of the pay-as-you-go revenue note is as
follows:
Tax Increment Revenue Note (Frontier Redevelopment) — issued in 2020 in the principal sum of
$1,300,000 with an interest rate of 5.0% per annum. Principal and interest payments shall be paid
commencing August 1, 2020 and each February 1 and August 1 thereafter to and including February 1,
2045. Payments are payable solely from tax increments, which shall mean 95% of the tax increments
derived from the tax increment property and received by the City. The payment reimburses the developer
for street, utilities, right-of-way, land acquisition, and other public improvements. The City shall have no
obligation to pay unpaid balance of principal or accrued interest that may remain after the final payment on
February 1, 2045. Current year abatement (TIF note payments) amounted to $224,660. At December 31,
2020 the principal amount outstanding on the note was $1,137,528.
F. COMMITTED CONTRACTS
At December 31, 2020, the City had commitments of $8,600,846 for uncompleted construction contracts.
In addition, the City entered into construction contracts during 2021 totaling $4,991,136.
&
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Note 16 FUND BALANCE
A. CLASSIFICATIONS
Definitions of fund balance classifications are included in Note 1P. At December 31, 2020, a summary of
the governmental fund balance classifications are as follows:
TH101
Revolving Improvements - Other
General Assessment Pioneer to Governmental
Fund Fund Flying Cloud Funds Total
Nonspendable:
Prepaid items $63,775 $ - $ - $49,690 $113,465
Restricted for:
Debt service - - 605,422 605,422
Park improvements - 998,540 998,540
CATV - public education - 43,837 43,837
Public safety - fire - - - 22,128 22,128
Total restricted 0 0 0 1,669,927 1,669,927
Assigned for:
Capital improvements
- 2,668,475 75,666 2,069,256
4,813,397
Cable communications
- - - 524,768
524,768
Cemetery operations
- 70,855
70,855
Debt service reserve
- - - 1,400,914
1,400,914
Total assigned
0 2,668,475 75,666 4,065,793
6,809,934
Unassigned
6,684,991 - - -
6,684,991
Total
$6,748,766 $2,668,475 $75,666 $5,785,410
$15,278,317
i
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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, 2020, the fund
balance of the General Fund exceeded this level.
Note 17 LEASE REVENUE
The City receives revenue from agreements for the lease of space above its water towers and on City property to
communication companies. The space is used for antennas and other equipment necessary to provide radio
communications. For accounting purposes, the leases are considered operating leases. Lease revenue for the year
ended December 31, 2020 totaled $254,926. Terms of each lease outstanding at year-end are as follows:
Lessee
Sprint
Sprint
Verizon
Nextel West Corp.
T-Mobile
T-Mobile
StoneBridge/Nextera
Cingular/AT&T
Verizon-Arboretum
Verizon-Minnetonka Middle School
Terms
$25,082 per year with 3% annual increases
$23,486 per year with 3% annual increases
$2,342 per month
$22,926 per year with 3% annual increases
$2,153 per month with 3% annual increases
$22,258 per year with 3% annual increases
5% of gross revenues associated with equipment used on property
$2,029 per month with 3% annual increases
$2,300 per month, with 2% annual increases
$2,300 per month, with 2% annual increases
Note 18 RECENTLY ISSUED ACCOUNTING STANDARDS
Current Term
8/l/06 - 7/31/21
12/1/05 - 11/30/25
5/1/17 - 4/30/22
12/1/14 - 11/30/24
1111105 - 10/31/25
1/1/14 - 12/31/24
4/l/06 - 12/31/24
8/1/12 - 7/31/22
l/l/20 - 12/31/24
1 /l /20 - 12/31/24
The Governmental Accounting Standards Board (GASB) recently approved the following statements which were
not implemented for these financial statements:
Statement No. 87 Leases. The provisions of this Statement are effective for reporting periods beginning after
June 15, 2021.
Statement No. 89 Accounting for Interest Cost Incurred before the End of a Construction Period. The
provisions of this Statement are effective for reporting periods beginning after December 15, 2020.
Statement No. 91 Conduit Debt Obligations. The provisions of this Statement are effective for reporting
periods beginning after December 15, 2021.
Statement No. 92 Omnibus 2020. The provisions of this Statement are effective for reporting periods beginning
after June 15, 2021.
87
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Statement No. 93 Replacement oflnterbank Offered Rates. The provisions of this Statement contain multiple
effective dates, the first being for reporting periods beginning after June 15, 2020.
Statement No. 94 Public -Private and Public -Public Partnerships and Availability Payment Arrangements. The
provisions of this Statement are effective for reporting periods beginning after June 15, 2022.
Statement No. 96 Subscription — Based Information Technology Arrangements. The provisions of this
Statement are effective for reporting periods beginning after June 15, 2022.
The effect these standards may have on future financial statements is not determinable at this time, but it is expected
that Statement No. 87 may have a material impact.
Note 19 PRESENTATION OF AGENCY FUNDS
For the year ended December 31, 2020, the City implemented GASB Statement No. 84, Fiduciary Activities. Based
on the guidance provided by GASB 84, the City's Agency Funds no longer meet the definition of a fiduciary
activity. Therefore, the amounts and activity previously reported in fiduciary funds are now reported in the general
fund.
I3
REQUIRED SUPPLEMENTARY INFORMATION
:•
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2020
With Comparative Actual Amounts For The Year Ended December 31, 2019
Revenues:
General property taxes
Licenses and permits:
Licenses - general government
Licenses - public safety
Permits - public safety
Permits - public works
Permits - community development
Total licenses and permits
Intergovernmental:
Federal - police - public safety
Federal - fire - public safety
Federal - parks and recreation
State aid - police - public safety
State aid - fire - public safety
PERA - public safety
Other
Total intergovernmental
Charges for services:
General government
Public safety
Public works
Parks and recreation
Community development
Total charges for services
Fines and forfeits:
Public safety
Investment earnings
Contributions and donations:
Parks and recreation
Total contributions and donations
Refunds and reimbursements:
General government
Public safety
Public works
Parks and recreation
Community development
Total refunds and reimbursements
Other:
2020
Budgeted Amounts
Original Final
Actual Variance with
Amounts Final Budget
Statement 9
Page 1 of 6
2019
Actual
Amounts
$9,161,833
$9,161,833
$9,241,003
$79,170
$8,751,341
3,100
3,100
3,000
(100)
3,000
90,500
90,500
95,967
5,467
94,481
997,000
997,000
1,374,007
377,007
1,275,996
31,500
31,500
68,185
36,685
49,102
6,500
6,500
5,510
(990)
10,025
1,128,600
1,128,600
1,546,669
418,069
1,432,604
-
-
62,614
62,614
-
-
-
356,236
356,236
-
-
-
5,152
5,152
-
170,000
170,000
168,658
(1,342)
161,678
190,000
190,000
216,211
26,211
206,677
20,000
20,000
-
(20,000)
19,467
62,000
62,000
(4,183)
(66,183)
56,088
442,000
442,000
804,688
362,688
443,910
77,400
77,400
78,850
1,450
77,005
3,000
3,000
3,339
339
2,903
60,800
60,800
105,575
44,775
53,122
463,700
463,700
134,435
(329,265)
462,032
32,000
32,000
24,916
(7,084)
18,817
636,900
636,900
347,115
(289,785)
613,879
116,500
116,500
73,800
(42,700)
89,989
40,000
40,000
127,746
87,746
162,553
25,867
25,867
31,231
5,364
25,437
25,867
25,867
31,231
5,364
25,437
60,000
60,000
55,214 (4,786)
General government
281,300
281,300
256,453
(24,847)
198,861
Public safety
6,700
6,700
2,349
(4,351)
5,446
Total other
288,000
288,000
258,802
(29,198)
204,307
Total revenues
11,899,700
11,899,700
12,486,268
586,568
11,771,469
See accompanying notes to the required supplementary information.
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 9
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 6
For The Year Ended December 31, 2020
With Comparative Actual Amounts For The Year Ended December 31, 2019
2020
2019
Budgeted Amounts
Actual
Variance with
Actual
Original
Final
Amounts
Final Budget
Amounts
Expenditures:
General government:
Legislative:
Current:
Personal services
$46,700
$46,700
$46,357
$343
$45,800
Contractual services
81,600
81,600
90,454
(8,854)
84,572
Total legislative
128,300
128,300
136,811
(8,511)
130,372
Administrative office:
Current:
Personal services
492,900
492,900
531,529
(38,629)
488,078
Contractual services
61,400
61,400
41,002
20,398
47,471
Total administrative office
554,300
554,300
572,531
(18,231)
535,549
Finance:
Current:
Personal services
323,500
323,500
342,711
(19,211)
319,457
Materials and supplies
200
200
-
200
-
Contractual services
48,300
48,300
52,970
(4,670)
36,352
Total finance
372,000
372,000
395,681
(23,681)
355,809
Election:
Current:
Personal services
26,000
26,000
28,035
(2,035)
-
Materials and supplies
4,000
4,000
1,449
2,551
-
Contractual services
18,000
18,000
16,957
1,043
14,189
Total election
48,000
48,000
46,441
1,559
14,189
Legal:
Current:
Contractual services
200,000
200,000
201,523
(1,523)
201,661
Property assessment:
Current:
Contractual services
161,000
161,000
150,115
10,885
158,707
M.I.S.:
Current:
Personal services
168,800
168,800
178,403
(9,603)
168,999
Materials and supplies
41,400
41,400
46,634
(5,234)
50,330
Contractual services
48,000
48,000
38,784
9,216
45,342
Total M.I.S.
258,200
258,200
263,821
(5,621)
264,671
See accompanying notes to the required supplementary information.
I
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 9
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 3 of 6
For The Year Ended December 31, 2020
With Comparative Actual Amounts For The Year Ended December 31, 2019
2020
2019
Budgeted Amounts
Actual
Variance with
Actual
Original
Final
Amounts
Final Budget
Amounts
Expenditures: (continued)
General government: (continued)
City hall:
Current:
Personal services
$92,400
$92,400
$92,191
$209
$91,734
Materials and supplies
41,400
41,400
39,113
2,287
38,997
Contractual services
277,500
277,500
278,637
(1,137)
276,542
Total City hall
411,300
411,300
409,941
1,359
407,273
Library:
Current:
Materials and supplies
2,500
2,500
442
2,058
1,645
Contractual services
109,100
109,100
95,298
13,802
121,106
Total library
111,600
111,600
95,740
15,860
122,751
Total general government
2,244,700
2,244,700
2,272,604
(27,904)
2,190,982
Public safety:
Police:
Current:
Materials and supplies
1,000
1,000
-
1,000
-
Contractual services
1,977,800
1,977,800
1,889,914
87,886
1,872,646
Total police
1,978,800
1,978,800
1,889,914
88,886
1,872,646
Fire department:
Current:
Personal services
1,012,200
1,012,200
931,819
80,381
865,124
Materials and supplies
45,100
45,100
43,068
2,032
39,469
Contractual services
152,000
152,000
123,911
28,089
160,661
Total fire department
1,209,300
1,209,300
1,098,798
110,502
1,065,254
Code enforcement:
Current:
Personal services
696,500
696,500
706,206
(9,706)
684,513
Materials and supplies
6,800
6,800
4,148
2,652
5,959
Contractual services
11,700
11,700
10,552
1,148
10,393
Total code enforcement
715,000
715,000
720,906
(5,906)
700,865
Community Service:
Current:
Personal services
57,200
57,200
48,400
8,800
48,070
Materials and supplies
1,200
1,200
2,017
(817)
917
Contractual services
5,400
5,400
5,485
(85)
4,466
Total animal control
63,800
63,800
55,902
7,898
53,453
Total public safety
3,966,900
3,966,900
3,765,520
201,380
3,692,218
See accompanying notes to the required supplementary information.
92
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2020
With Comparative Actual Amounts For The Year Ended December 31, 2019
Expenditures: (continued)
Public works:
Engineering:
Current:
Personal services
Materials and supplies
Contractual services
Total engineering
Street maintenance:
Current:
Personal services
Materials and supplies
Contractual services
Total street maintenance
Street lighting:
Current:
Materials and supplies
Contractual services
Total street lighting
Fleet department:
Current:
Personal services
Materials and supplies
Contractual services
Total fleet department
Total public works
Parks and recreation:
Parks and recreation commission:
Current:
Materials and supplies
Contractual services
Total parks and recreation commission
Parks and recreation administration:
Current:
Personal services
Materials and supplies
Contractual services
Total parks and recreation
administration
Recreation center:
Current:
Personal services
Materials and supplies
Contractual services
Total recreation center
Statement 9
Page 4 of 6
2020 2019
Budgeted Amounts Actual Variance with Actual
Original Final Amounts Final Budget Amounts
$677,600
$677,600
$655,565
$22,035
$612,469
800
800
3,707
(2,907)
2,329
29,300
29,300
32,939
(3,639)
68,097
707,700
707,700
692,211
15,489
682,895
942,700
942,700
872,618
70,082
864,237
115,300
115,300
124,936
(9,636)
126,915
43,400
43,400
49,831
(6,431)
36,287
1,101,400
1,101,400
1,047,385
54,015
1,027,439
4,000
4,000
1,299
2,701
5,838
366,500
366,500
386,494
(19,994)
357,465
370,500
370,500
387,793
(17,293)
363,303
323,400
323,400
334,139
(10,739)
334,146
171,700
171,700
103,260
68,440
164,243
70,300
70,300
56,695
13,605
66,630
565,400
565,400
494,094
71,306
565,019
2,745,000
2,745,000
2,621,483
123,517
2,638,656
100
100
-
100
-
1,100
1,100
-
1,100
185
1,200
1,200
0
1,200
185
250,300
250,300
248,104
2,196
249,602
200
200
107
93
510
5,700
5,700
2,289
3,411
4,107
256,200
256,200
250,500
5,700
254,219
234,500
234,500
181,753
52,747
222,938
17,700
17,700
3,904
13,796
12,896
94,400
94,400
67,798
26,602
79,336
346,600
346,600
253,455
93,145
315,170
See accompanying notes to the required supplementary information.
93
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2020
With Comparative Actual Amounts For The Year Ended December 31, 2019
Expenditures: (continued)
Parks and recreation: (continued)
Senior citizen center:
Current:
Personal services
Materials and supplies
Contractual services
Total senior citizen center
Recreation programs:
Current:
Personal services
Materials and supplies
Contractual services
Total recreation programs
Self-supporting programs:
Current:
Personal services
Materials and supplies
Contractual services
Total self-supporting programs
Lake Ann Park operations:
Current:
Personal services
Materials and supplies
Contractual services
Total Lake Ann Park operations
Park maintenance:
Current:
Personal services
Materials and supplies
Contractual services
Total park maintenance
Recreation sports:
Current:
Personal services
Materials and supplies
Contractual services
Total recreation sports
Total parks and recreation
2020
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Statement 9
Page 5 of 6
2019
Actual
Amounts
$84,500
$84,500
$84,813
($313)
$84,106
4,300
4,300
1,145
3,155
2,228
30,700
30,700
14,741
15,959
45,991
119,500
119,500
100,699
18,801
132,325
246,600
246,600
138,669
107,931
239,030
22,300
22,300
5,844
16,456
23,954
128,800
128,800
53,032
75,768
126,724
397,700
397,700
197,545
200,155
389,708
19,900
19,900
13,709
6,191
17,274
3,300
3,300
2,672
628
4,564
12,500
12,500
4,542
7,958
11,127
35,700
35,700
20,923
14,777
32,965
12,300
12,300
-
12,300
10,934
10,200
10,200
469
9,731
7,857
48,600
48,600
44,697
3,903
45,126
71,100
71,100
45,166
25,934
63,917
910,200
910,200
773,869
136,331
830,324
84,200
84,200
64,851
19,349
93,032
104,300
104,300
127,675
(23,375)
114,953
1,098,700
1,098,700
966,395
132,305
1,038,309
30,400
30,400
7,176
23,224
20,064
7,900
7,900
607
7,293
5,876
300
300
-
300
149
38,600
38,600
7,783
30,817
26,089
2,365,300
2,365,300
1,842,466
522,834
2,252,887
See accompanying notes to the required supplementary information.
94
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2020
With Comparative Actual Amounts For The Year Ended December 31, 2019
Expenditures: (continued)
Community development:
Planning commission:
Current:
Materials and supplies
Contractual services
Total planning commission
Planning administration:
Current:
Personal services
Materials and supplies
Contractual services
Total planning administration
Senior facility commission:
Current:
Personal services
Contractual services
Total senior facility commission
Total community development
Total expenditures
Revenues over expenditures
Other financing sources (uses):
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance - January 1
Fund balance - December 31
Statement 9
Page 6 of 6
2020 2019
Budgeted Amounts Actual Variance with Actual
Original Final Amounts Final Budget Amounts
$200
$200
$ -
$200
$ -
1,500
1,500
1,750
(250)
1,090
1,700
1,700
1,750
(50)
1,090
519,600
519,600
536,848
(17,248)
520,708
400
400
68
332
179
11,500
11,500
4,290
7,210
6,270
531,500
531,500
541,206
(9,706)
527,157
29,600
29,600
30,542
(942)
29,810
15,000
15,000
-
15,000
8,834
44,600
44,600
30,542
14,058
38,644
577,800
577,800
573,498
4,302
566,891
11,899,700
11,899,700
11,075,571
824,129
11,341,634
0
0
1,410,697
1,410,697
429,835
-
-
-
-
(846,459)
0
0
-
-
(846,459)
$0
$0
1,410,697
$1,410,697
($416,624)
5,338,069
$6,748,766
5,754,693
$5,338,069
See accompanying notes to the required supplementary information.
95
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE CITY'S TOTAL OPEB LIABILITY AND RELATED RATIOS
Last Ten Fiscal Years
Total OPEB liability:
Service cost
Interest
Changes of benefit terms
Differences between expected and actual experience
Changes in assumptions
Benefit payments
Net change in total OPEB liability
Total OPEB liability - beginning
Total OPEB liability - ending
Covered -employee payroll
Statement 10
2020
2019
2018
$13,504
$13,547
$14,388
5,463
8,738
7,032
(12,888)
(82,370)
-
9,168
16,736
(7,402)
(3,343)
-
(9,869)
11,904
(43,349)
4,149
155,719
199,068
194,919
$167,623
$155,719
$199,068
$5,270,695 $5,270,695 $5,151,178
Total OPEB liability as a percentage of covered -employee payroll 3.2% 3.0%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2018 and is intended to
show a ten year trend. Additional years will be added as they become available.
3.9%
See accompanying notes to the required supplementary information.
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY -
GENERAL EMPLOYEES RETIREMENT FUND
Last Ten Fiscal Years
Measurement Fiscal Year
Date Ending
June 30 December 31
State's
Proportionate
City's
City's
Share
Proportionate
Proportionate
(Amount)
Share
Share
of the Net
(Percentage)
(Amount)
Pension
of the
of the Net
Liability
Net Pension
Pension
Associated
Liability
Liability (a)
with City (b)
Statement 11
City's
Plan
Proportionate
Fiduciary
Share of the Net
Net
Pension Liability
City's
Position
and the State's
Proportionate
as a
Proportionate
Share of the Net
Percentage
Share of the Net
Pension Liability
of the
Pension Liability
as a Percentage
Total
Associated with Covered
of its Covered
Pension
City (a+b) Payroll (c)
Payroll ((a+b)/c)
Liability
2015
2015
0.0791%
$4,099,373
$0
$4,099,373
$4,651,703
88.1%
78 2%
2016
2016
0.0759%
6,162,704
80,496
6,243,200
4,708,444
132.6%
68.9%
2017
2017
0.0751%
4,794,334
60,265
4,854,599
4,836,519
100.4%
75.9%
2018
2018
0.0760%
4,216,168
138,310
4,354,478
5,110,253
85.2%
79.5%
2019
2019
0.0727%
4,019,420
124,828
4,144,248
5,143,989
80.6%
80.2%
2020
2020
0.0741%
4,442,634
137,022
4,579,656
5,283,373
86.7%
79.1%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
See accompanying notes to the required supplementary information.
97
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 12
SCHEDULE OF PENSION CONTRIBUTIONS - GENERAL EMPLOYEES RETIREMENT FUND
Last Ten Fiscal Years
Statutorily
Contributions in
Contribution
Contributions as a
Required
Relation to the
Deficiency
Covered
Percentage of
Fiscal Year
Contribution
Statutorily Required
(Excess)
Payroll
Covered -Employee
Ending
(a)
Contribution (b)
(a-b)
(c)
Payroll (b/c)
December 31, 2015
$346,881
$346,881
$0
$4,625,080
7.50%
December 31, 2016
358,611
358,611
-
4,781,489
7.50%
December 31, 2017
371,824
371,824
-
4,957,652
7.50%
December 31, 2018
383,686
383,686
-
5,115,814
7.50%
December 31, 2019
390,082
390,082
-
5,201,071
7.50%
December 31, 2020
409,847
409,847
-
5,464,626
7.50%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
See accompanying notes to the required supplementary information.
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY -
PUBLIC EMPLOYEES POLICE AND FIRE FUND
Last Ten Fiscal Years
Measurement
Date
June 30, 2015
June 30, 2016
June 30, 2017
June 30, 2018
June 30, 2019
June 30, 2020
Fiscal Year
Ending
December 31, 2015
December 31, 2016
December 31, 2017
December 31, 2018
December 31, 2019
December 31, 2020
Proportionate Proportionate
Share
Share (Amount)
(Percentage) of
of the Net
the Net Pension
Pension
Liability
Liability (a)
Proportionate Share
of the Net Pension
Liability as a
Percentage of its
Covered Covered
Payroll (b) Payroll (a/b)
Statement 13
Plan Fiduciary
Net Position as
a Percentage
of the Total
Pension Liability
0.0200%
$227,247
$180,370
126.0%
86.6%
0.0190%
762,503
186,408
409.1%
63.9%
0.0190%
256,523
194,526
131.9%
85.4%
0.0193%
205,718
203,653
101.0%
88.8%
0.0205%
218,243
216,056
101.0%
89.3%
0.0200%
263,621
225,631
116.8%
87.2%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
See accompanying notes to the required supplementary information.
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 14
SCHEDULE OF PENSION CONTRIBUTIONS - PUBLIC EMPLOYEES POLICE AND FIRE FUND
Last Ten Fiscal Years
Statutorily
Contributions in
Contribution
Contributions as a
Required
Relation to the
Deficiency
Covered
Percentage of
Fiscal Year
Contribution
Statutorily Required
(Excess)
Payroll
Covered
Ending
(a)
Contribution (b)
(a-b)
(c)
Payroll (b/c)
December 31, 2015
$29,647
$29,647
$0
$183,006
16.20%
December 31, 2016
30,790
30,790
-
190,064
16.20%
December 31, 2017
32,612
32,612
-
201,307
16.20%
December 31, 2018
33,511
33,511
-
206,857
16.20%
December 31, 2019
37,761
37,761
-
222,780
16.95%
December 31, 2020
40,530
40,530
-
228,980
17.70%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
See accompanying notes to the required supplementary information.
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS -
CHANHASSEN FIRE DEPARTMENT RELIEF ASSOCIATION
LAST TEN FISCAL YEARS
Fiscal year ending and measurement date
Total pension liability:
Service cost
Interest
Changes of benefit terms
Differences between expected and actual experience
Changes of assumptions
Benefit payments, including refunds of employee contributions
Net change in total pension liability
Total pension liability - beginning
Total pension liability - ending (a:
Plan fiduciary net position:
Contributions - employer
Contributions - State of Minnesota
Contributions - employee
Net investment income
Benefit payments, including refunds of employee contributions
Administrative expense
Other changes
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending (b:
Net pension liability - ending (a) - (b;
Plan fiduciary net position as a percentage of the total pension liability
Covered payroll*
Net pension liability as a percentage of covered payroll*
Statement 15
December 31,
$150,695
$143,922
$143,922
$88,924
$88,924
$86,369
156,622
154,784
149,836
127,729
128,235
118,909
-
-
-
212,120
-
279,202
76,350
(79,049)
5,145
-
(5,328)
58,144
(902)
(1,074)
231,636
(203)
(206,737)
(170,835)
(216,595)
(370,143)
(113,883)
(470,743)
235,074
47,920
76,089
295,411
103,073
8,409
3,055,205
3,007,285
2,931,196
2,635,785
2,532,712
2,524,303
$3,290,279
$3,055,205
$3,007,285
$2,931,196
$2,635,785
$2,532,712
$31,957
$47,399
$54,749
$ -
$ -
$37,571
203,495
190,045
184,695
181,554
177,831
177,784
237,593
328,474
(130,928)
306,593
158,581
(105,958)
(206,737)
(170,835)
(216,595)
(340,243)
(113,883)
(470,743)
(16,000)
(16,386)
(17,350)
(14,875)
(16,972)
(7,225)
500
250,308
378,697
(125,429)
133,029
206,057
(368,571)
2,499,867
2,121,170
2,246,599
2,113,570
1,907,513
2,276,084
$2,750,175
$2,499,867
$2,121,170
$2,246,599
$2,113,570
$1,907,513
$540,104
$555,338
$886,115
$684,597
$522,215
$625,199
83.6%
81.8%
70.5%
76.6%
80.2%
75.3%
NA
NA
NA
NA
NA
NA
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
*The Chanhassen Fire Department Relief Association is comprised of volunteers, therefore there are no payroll expenditures.
GASB 68 was implemented in 2015. Information prior to 2015 is not available.
See accompanying notes to the required supplementary information.
101
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 16
SCHEDULE OF CONTRIBUTIONS - CHANHASSEN FIRE DEPARTMENT RELIEF ASSOCIATION
Last Ten Fiscal Years
Actuarially
Contributions in Relation to the
Contribution
Contributions
Determined
Actuarially Determined Contribution
Deficiency
as a Percentage
Fiscal Year
Contribution
Employer
State of MN
(Excess)
Covered
of Covered
Ending
(a)
Contributions (b)
Contributions (c)
(a-b-c)
Payroll
Payroll
December 31, 2015
$142,501
$37,571
$174,784
($69,854)
December 31, 2016
171,760
-
176,831
(5,071)
December 31, 2017
171,760
-
176,554
(4,794)
December 31, 2018
236,444
54,749
181,695
-
December 31, 2019
237,444
47,399
190,045
-
December 31, 2020
235,452
31,957
203,495
-
*The Chanhassen Fire Department Relief Association is comprised of volunteers, therefore, there are no payroll expenditures.
(i.e., there are no covered payroll amounts or percentage calculations.)
GASB 68 was implemented in 2015. Information prior to 2015 is not available.
See accompanying notes to the required supplementary information.
102
CITY OF CHANHASSEN, MINNESOTA
NOTES TO RSI
December 31, 2020
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
2020 Changes in Actuarial Assumptions:
• The price inflation assumption was decreased from 2.50% to 2.25%.
• The payroll growth assumption was decreased from 3.25% to 3.00%.
• As recommended in the June 30, 2019 experience study, assumed salary increase rates were decreased
0.25% and assumed rates of retirement were changed resulting in more unreduced (normal) retirements
and slightly fewer Rule of 90 and early retirements. Assumed rates of termination and disability were
also changed.
• The base mortality tables were changed from RP-2014 tables to Pub-2010 tables, with adjustments.
• The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.
• The assumed spouse age difference was changed from two years older for females to one year older.
• The assumed number of married male new retirees electing the 100% Joint & Survivor option changed
from 35% to 45%. The assumed number of married female new retirees electing the 100% Joint &
Survivor option changed from 15% to 30%. The corresponding number of married new retirees
electing the Life annuity option was adjusted accordingly.
Changes in Plan Provisions:
• Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through
December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations occurring after
June 30, 2020.
2019 Changes in Actuarial Assumptions:
• The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in the Plan Provisions
• The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to
$21.0 million per year. The State's special funding contribution was changed prospectively, requiring
$16.0 million due per year through 2031.
2018 Changes in Actuarial Assumptions:
• The mortality projection scale was changed from MP-2015 to MP-2017.
• The assumed benefit increase was changed from 1.0 percent per year through 2044 and 2.50 percent
per year thereafter to 1.25 percent per year.
W191
CITY OF CHANHASSEN, MINNESOTA
NOTES TO RSI
December 31, 2020
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
2020 Changes in Actuarial Assumptions:
• The mortality projection scale was changed from MP-2018 to MP-2019.
2019 Changes in Actuarial Assumptions:
• The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in the Plan Provisions
• There have been no changes since the prior valuation.
2018 Changes in Actuarial Assumptions:
• The mortality projection scale was changed from MP-2016 to MP-2017.
2017 Changes in Actuarial Assumptions:
• The single discount rate was changed from 5.6% to 7.5%.
• Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The
net effect is proposed rates that average 0.34% lower than the previous rates.
• Assumed rates of retirement were changed, resulting in fewer retirements.
104
CITY OF CHANHASSEN, MINNESOTA
NOTES TO RSI
December 31, 2020
• The Combined Service Annuity (CSA) load was 30% for vested and non -vested deferred members.
The CSA has been changed to 33% for vested members and 2% for non -vested members.
• The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table
to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor
of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base
mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the
mortality tables assumed for healthy retirees.
• Assumed termination rates were decreased to 3.0% for the first three years of service. Rates beyond
the select period of three years were adjusted, resulting in more expected terminations overall.
• Assumed percentage of married female members was decreased from 65% to 60%.
• Assumed age difference was changed from separate assumptions for male members (wives assumed to
be three years younger) and female members (husbands assumed to be four years older) to the
assumption that males are two years older than females.
• The assumed percentage of female members electing Joint and Survivor annuities was increased.
• The assumed post -retirement benefit increase rate was changed from 1.00% for all years to 1.00% per
year through 2064 and 2.50% thereafter.
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.
Sinele Employer — Fire Relief Association
Valuation date — actuarially determined contribution rates are calculated as of January 1 every other year, which
is the same date as the beginning of the fiscal year beginning in which contributions are reported.
2020 Changes in Actuarial Assumptions:
• The mortality assumption was updated from the PubS-2010 Mortality Table Projected Generationally
from 2010 with the MP-2019 Mortality Improvement Scale to the PubS-2010 Mortality Table
Projected Generationally from 2010 with the MP-2020 Mortality Improvement Scale.
2019 Changes in Actuarial Assumptions:
• The mortality table used to measure funding liability has been changed from RP -2014 Sex Distinct
Blue Collar Mortality with generational improvements beginning in 2006 (based on assumptions
i"01
CITY OF CHANHASSEN, MINNESOTA
NOTES TO RSI
December 31, 2020
developed from the 2017 Social Security Trustees Report) to PubS-2010 Mortality with generational
improvements projected beginning in 2010 based on SOA Scale MP-2019.
2018 Changes in Actuarial Assumptions:
• Mortality assumptions were determined using the RP-2014 Blue Collar Mortality with fully
generational improvements from 2006 based on assumptions from the Social Security Administration's
2018 trustees report.
• The mortality improvement scale used to measure liability has been changed from an improvement
scale based on assumptions developed from the 2017 Social Security Trustees Report to an
improvement scaled based on assumptions developed from the 2018 Social Security trustees Report.
The base table (RP-2014 Blue Collar) and year in which improvements began (2006) remained
unchanged. This results in a decrease in liability and service cost.
2017 Changes in Actuarial Assumptions:
• The mortality improvement scale has been changed from an improvement scale based on assumptions
developed from the 2016 Social Security Trustees Report to an improvement scale based on
assumptions developed from the 2017 Social Security Trustees Report.
• Disability rates have changed from 0.03% at age 20, grading to 0.33% at age 50 to Class 1 1985
Disability Rates.
• The lump sum benefit accrual amount has been projected to increase by 9.27% every three years (3%
compounded each year).
2016 Changes in Actuarial Assumptions:
• As of December 31, 2016, the mortality assumption was changed to the RP-2014 Blue Collar Mortality
with fully generational improvements from 2006 based on assumptions from the Social Security
Administration's 2016 trustees report.
Details can be obtained from the financial reports of the Fire Relief Association.
C. OPEB INFORMATION
No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75 to pay
related benefits.
COMBINING AND INDIVIDUAL NONMAJOR FUND FINANCIAL
STATEMENTS AND SCHEDULES
107
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WIN
NONMAJOR GOVERNMENTAL FUNDS
"1•
- This page intentionally left blank -
110
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).
111
CITY OF CHANHASSEN, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2020
With Comparative Totals For December 31, 2019
Statement 17
Total Nonmajor
Special
Debt
Capital
Governmental Funds
Revenue
Service
Project
2020 2019
Assets:
Cash and investments
$616,317
$2,372,396
$2,670,180
$5,658,893 $7,175,296
Accrued interest receivable
3,276
14,190
18,686
36,152 30,804
Due from other governmental units
-
-
971
971 25,527
Accounts receivable - net
51,406
-
35,668
87,074 86,418
Property taxes receivable
-
-
-
- 9,227
Prepaid items
1,069
-
48,621
49,690 8,781
Interfund loan receivable
-
-
568,962
568,962 713,600
Special assessments receivable
-
319,528
-
319,528 319,840
Total assets $672,068 $2,706,114 $3,343,088 $6,721,270 $8,369,493
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable
Due to other governmental units
Due to other funds
Salaries payable
Contracts payable
Interfund loan payable
Total liabilities
Deferred inflows of resources:
Unavailable revenue
Fund balance:
Nonspendable
Restricted
Assigned
Unassigned
Total fund balance
Total liabilities, deferred inflows
of resources, and fund balance
$6,050 $380,250 $206,103 $592,403
$496,194
- - 10,679 10,679
202,903
- - - -
570
3,361 - - 3,361
8,945
- - 9,889 9,889
5,439
-
319,528
-
319,528
319,840
1,069
-
48,621
49,690
8,781
65,965
605,422
998,540
1,669,927
2,944,091
595,623
1,400,914
2,069,256
4,065,793
4,383,300
-
-
-
-
(570)
662,657
2,006,336
3,116,417
5,785,410
7,335,602
$672,068
$2,706,114
$3,343,088
$6,721,270
$8,369,493
112
CITY OF CHANHASSEN, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 18
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
Revenues:
General property taxes
Tax increment collections
Licenses and permits
Intergovernmental
Franchise Fees
Special assessments
Charges for services
Investment earnings
Contributions and donations
Refunds and reimbursements
Other
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Parks and recreation
Community development
Capital outlay:
General government
Public safety
Public works
Parks and recreation
Debt service:
Principal
Interest and paying agent fees
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Sale of capital assets
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance - January 1
Fund balance - December 31
Special Debt Capital
Revenue Service Project
Total Nonmajor
Governmental Funds
2020 2019
$ -
$938,012
$893,000
$1,831,012
$1,828,312
-
236,485
236,485
-
-
-
28,111
28,111
614,586
1,560,038
-
328,627
1,888,665
301,539
177,362
-
-
177,362
185,181
-
352
-
352
131,702
13,900
185,794
-
199,694
8,950
15,303
66,297
101,286
182,886
232,891
24,870
-
-
24,870
44,765
-
-
33,731
33,731
26,016
-
-
4,400
4,400
2,800
1,791,473
1,190,455
1,625,640
4,607,568
3,376,742
652,523
19,262
417,382
1,089,167
453,679
21,385
-
-
21,385
110,326
-
-
381,808
381,808
424,953
-
-
12,005
12,005
13,725
-
-
229,736
229,736
570
747,757
-
85,277
833,034
110,044
101,635
-
285,893
387,528
701,818
125,640
-
330,836
456,476
79,394
97,786
-
966,308
1,064,094
797,124
-
1,585,000
-
1,585,000
720,000
-
143,970
-
143,970
157,312
1,746,726
1,748,232
2,709,245
6,204,203
3,568,945
44,747 (557,777) (1,083,605) (1,596,635) (192,203)
- 46,443 46,443 25,698
- 40,724 - 40,724 350,000
(40,724) - (40,724) (9,453)
0 0 46,443 46,443 366,245
44,747 (557,777) (1,037,162) (1,550,192) 174,042
617,910 2,564,113 4,153,579 7,335,602 7,161,560
$662,657 $2,006,336 $3,116,417 $5,785,410 $7,335,602
113
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114
NONMAJOR SPECIAL REVENUE FUNDS
Special Revenue Funds are established to account for taxes and other revenues set aside for a
particular purpose. Revenues are recognized in the accounting period in which they become
available and measurable. Expenditures are recognized in the accounting period in which the
related liability is incurred.
Contribution Fund — This fund accounts for the proceeds that the City receives from
charitable gambling. The City collects 10% of the net proceeds from a pull -tab operation in
the City. By state statute, the fund may only be used for equipment and training for the City's
fire department.
Cemete y Fund — The City owns and operates a municipal cemetery. In 2014, improvements
were made to add approximately 300 additional plots. This fund accounts for all plot fees
and maintenance going forward. Cemetery operations had previously been accounted for
within the City's General Fund.
CATV Fund — Under the terms of the franchise agreement with Mediacom, the City is to
receive 5% of the revenues derived from cable television sales within the City. These monies
are dedicated solely to improving public broadcasting capabilities, studio improvements, and
other capital expenditures improving the overall cable system.
Grant Fund- This fund accounts for the revenues and expenditures related to federal and state
financial assistance programs.
115
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2020
With Comparative Totals For December 31, 2019
Statement 19
201
Contribution
202 Cemetery
210 CATV
Total Nonmajor Special
Fund
Fund
Fund
Revenue Funds
2020 2019
Assets:
Cash and investments
$20,660
$70,467
$525,190
$616,317 $582,916
Accrued interest receivable
104
388
2,784
3,276 2,912
Accounts receivable - net
1,923
-
49,483
51,406 50,923
Prepaid items
-
-
1,069
1,069 -
Total assets
$22,687
$70,855
$578,526
$672,068 $636,751
Liabilities and Fund Balance
Liabilities:
Accounts payable $ - $ - $6,050 $6,050 $9,896
Salaries payable 559 - 2,802 3,361 8,945
Total liabilities 559 0 8,852 9,411 18,841
Fund balance:
Nonspendable
- - 1,069
1,069
-
Restricted
22,128 - 43,837
65,965
61,995
Assigned
- 70,855 524,768
595,623
555,915
Total fund balance
22,128 70,855 569,674
662,657
617,910
Total liabilities and fund balance
$22,687 $70,855 $578,526
$672,068
$636,751
116
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES Statement 20
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
201
Contribution
202 Cemetery
210 CATV
212 Grant
Total Nonmajor
Special
Fund
Fund
Fund
Fund
Revenue Funds
2020
2019
Revenues:
Intergovernmental
$ -
$ -
$ -
$1,560,038
$1,560,038
$ -
Franchise fees
-
-
177,362
-
177,362
185,181
Charges for services
-
13,900
-
-
13,900
8,950
Investment earnings
485
1,810
13,008
-
15,303
20,730
Contributions and donations
24,870
-
-
-
24,870
42,265
Refunds and reimbursements
-
-
-
-
-
-
Total revenues
25,355
15,710
190,370
1,560,038
1,791,473
257,126
Expenditures:
Current:
General government
-
3,563
161,740
487,220
652,523
172,455
Public safety
21,385
-
-
-
21,385
54,615
Capital outlay:
General government
-
-
-
747,757
747,757
60,074
Public safety
-
-
101,635
101,635
-
Public works
-
-
125,640
125,640
-
Parks and recreation
-
-
97,786
97,786
-
Total expenditures
21,385
3,563
161,740
1,560,038
1,746,726
287,144
Net change in fund balance
3,970
12,147
28,630
0
44,747
(30,018)
Fund balance - January 1
18,158
58,708
541,044
0
617,910
647,928
Fund balance - December 31
$22,128
$70,855
$569,674
$0
$662,657
$617,910
117
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118
NONMAJOR DEBT SERVICE FUNDS
Debt Service Funds are maintained on the modified accrual basis of accounting for revenues
from taxes and other sources set aside for the payment of the debt obligations of the City.
Principal and interest on the general long-term debt is recognized when due.
Permanent Revolving Debt — This fund is used to account for excess resources from matured
bond issues.
General Obligation Bond Funds — These funds are used to account for the accumulation of
resources for payment of general obligation bonds or other general indebtedness and the interest
thereon.
119
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2020
With Comparative Totals For December 31, 2019
300 Permanent
Revolving Debt
368 2009A
G.O.
Refunding
Bonds
370 2016A
G.O.
Refunding
Bonds
Statement 21
Total Nonmajor Debt
Service Funds
2020 2019
Assets:
Cash and investments
$930,176
$838,668
$603,552 $2,372,396
$2,927,684
Cash with escrow agent
-
-
- -
-
Accrued interest receivable
7,572
4,748
1,870 14,190
12,134
Property taxes receivable
-
-
- -
4,790
Special assessments receivable
8,406
311,122
- 319,528
319,840
Total assets
$946,154
$1,154,538
$605,422 $2,706,114
$3,264,448
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable
Deferred inflows of resources:
Unavailable revenue
Fund balance:
Restricted
Assigned
Total fund balance
Total liabilities, deferred inflows
of resources, and fund balance
$ - $380,250 $ - $380,250 $380,495
8,406
311,122
- 319,528
319,840
-
-
605,422 605,422
1,344,306
937,748
463,166
- 1,400,914
1,219,807
937,748
463,166
605,422 2,006,336
2,564,113
$946,154
$1,154,538
$605,422 $2,706,114
$3,264,448
120
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 22
CHANGES IN FUND BALANCES
NONMAJOR DEBT SERVICE FUNDS
For The Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
368 2009A
369 2010A
370 2016A
300 Permanent
G.O.
G.O. Library
G.O.
Revolving
Refunding
Refunding
Refunding
Total Nonmajor Debt
Debt
Bonds
Bonds
Bonds
Service Funds
2020
2019
Revenues:
General property taxes
$ -
$ -
$457,412
$480,600
$938,012
$935,312
Special assessments
352
-
-
-
352
373
Investment earnings
32,764
22,183
2,612
8,738
66,297
86,381
Charges for services
185,794
-
-
-
185,794
-
Total revenues
218,910
22,183
460,024
489,338
1,190,455
1,022,066
Expenditures:
Current:
General government
19,262
-
-
-
19,262
79,921
Debt service:
Principal
-
-
1,240,000
345,000
1,585,000
720,000
Interest and paying agent fees
-
-
40,720
103,250
143,970
157,312
Total expenditures
19,262
0
1,280,720
448,250
1,748,232
957,233
Revenues over (under) expenditures
199,648
22,183
(820,696)
41,088
(557,777)
64,833
Other financing sources (uses)
Transfers in -
-
40,724
-
40,724
-
Transfers out (40,724)
-
-
-
(40,724)
-
Total other financing sources (uses) (40,724)
0
40,724
0
0
0
Net change in fund balance 158,924
22,183
(779,972)
41,088
(557,777)
64,833
Fund balance - January 1 778,824
440,983
779,972
564,334
2,564,113
2,499,280
Fund balance - December 31 $937,748
$463,166
$0
$605,422
$2,006,336
$2,564,113
121
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122
NONMAJOR CAPITAL PROJECT FUNDS
Capital Project Funds are used to account for the construction and financing of large capital
projects. Revenues and expenditures are recognized on the modified accrual basis. Revenues
are recognized in the accounting period in which they become available and measurable.
Expenditures are recognized in the accounting period in which they are incurred.
Most capital projects are singular in purpose and their revenues/expenditures cannot be used for
subsidizing any other operating fund. In each of these cases, bonds or other revenues received
can only be used for these specific activities.
The following Capital Project Funds differ in that several of the expenditure categories represent
recurring types of costs, i.e., personal services, repair and maintenance of utilities, and/or
recurring land improvements.
400 Capital Replacement Fund — Accounts for the City's annual equipment purchases not related
to the City's enterprise funds. The fund currently does include a property tax levy to support the
annual purchases.
401 Park Replacement Fund — Accounts for replacement or repair of major park
equipment/infrastructure, including playgrounds, picnic shelters, hockey rinks, bridges, fences,
walls, etc. The maintenance and replacement schedule is an ongoing endeavor that will be
updated as new investments are made or aging structures are removed.
410 Park Acquisition and Development — Accounts for park dedication fees as required by the
City ordinance. These funds are then utilized to finance park and trail improvements identified
in the park and recreation section of the City's comprehensive plan.
413 Transit Station Assessment Fund — Accounts for the interfund loan from the Water Fund to
fund costs associated with the redevelopment of the Dinner Theater Transit Station in TIF #10,
and for the repayment of the special assessment to repay those costs.
420 Street Pavement Management — Accounts for sealcoating costs on local streets.
480 TIF #11 — Accounts for tax increment financing for the downtown district, TIF #11 —
Frontier Development #2.
603 Lyman Blvd Improvements — Accounts for the street and utility improvement of Lyman Blvd.
123
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2020
With Comparative Totals For December 31, 2019
400 Capital
401 Park
Replacement Fund
Replacement Fund
Assets:
Cash and investments
$500,389
$357,054
Accrued interest receivable
2,978
2,575
Due from other governmental units
963
-
Accounts receivable - net
35,668
Property taxes receivable
-
Prepaid items
48,621
Interfimd loan receivable
568,962
Special assessments receivable
-
-
Total assets
$1,157,581
$359,629
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable
$89,228
$ -
Due to other governmental units
-
Due to other funds
-
Contracts payable
-
Interfund loan payable
-
Total liabilities
89,228
0
Deferred inflows of resources:
Unavailable revenue
-
Fund balance:
Nonspendable 48,621
Restricted - -
Assigned 1,019,732 359,629
Unassigned - -
Total fund balance 1,068,353 359,629
Total liabilities, deferred inflows
of resources, and fund balance $1,157,581 $359,629
124
Statement 23
410 Park
420 Street
480 Frontier
603 Lyman
Acquisition and
413 Transit Station
Pavement
Development #2
Boulevard
Total Nonmajor
Development
Assessment Fund
Management
TIF#11
Improvements
Capital Project Funds
2020
2019
$1,000,528
$102,968
$454,459
$115,875
$138,907
$2,670,180
$3,664,696
8,923
583
2,736
105
786
18,686
15,758
-
-
8
-
-
971
25,527
-
-
-
35,668
35,495
-
-
-
-
-
4,437
-
-
-
-
48,621
8,781
-
-
-
-
568,962
713,600
$1,009,451
$103,551
$457,203
$115,980
$139,693
$3,343,088
$4,468,294
$6,900
$ -
$663
109,312
$ -
$206,103
$105,803
10,679
-
-
10,679
202,903
-
-
-
-
570
9,889
-
-
9,889
5,439
17,579
0
10,552
109,312
0
226,671
314,715
-
-
-
-
48,621
8,781
991,872
-
-
6,668
-
998,540
1,537,790
-
103,551
446,651
-
139,693
2,069,256
2,607,578
-
-
-
-
-
-
(570)
991,872
103,551
446,651
6,668
139,693
3,116,417
4,153,579
$1,009,451 $103,551 $457,203 $115,980 $139,693 $3,343,088 $4,468,294
125
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 24
CHANGES IN FUND BALANCES Page 1 of 2
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
Revenues:
General property taxes
Tax increment collections
Licenses and permits
Intergovernmental
Special assessments
Investment earnings
Contributions and donations
Refunds and reimbursements
Other
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Parks and recreation
Community development
Capital outlay:
General government
Public safety
Public works
Parks and recreation
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Sale of capital assets
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance - January 1
Fund balance - December 31
410 Park 413 Transit Station 420 Street
400 Capital 401 Park Acquisition and Assessment Pavement
Replacement Fund Replacement Fund Development Fund Management
$800,000 $ $ $ $93,000
28,111 -
- 328,627
27,898 12,030 41,690 2,724 12,782
33,723 8
4,400 - - - -
866,021 12,030 69,801 2,724 434,417
417,382
2,296 - 354,282
- 12,005 -
85,277
285,893
330,836 - -
199,507 163,087 603,714 - -
1,321,191 163,087 615,719 0 354,282
(455,170) (151,057) (545,918) 2,724 80,135
46,443
46,443
0
0
0
(408,727)
(151,057)
(545,918) 2,724
80,135
1,477,080
510,686
1,537,790 100,827
366,516
$1,068,353
$359,629
$991,872 $103,551
$446,651
126
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 24
CHANGES IN FUND BALANCES Page 2 of 2
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
480 Frontier
603 Lyman
Development #2
Boulevard
Total Nonmajor
TIF#11
Improvements
Capital Project Funds
2020
2019
Revenues:
General property taxes
$
$
$893,000
$893,000
Tax increment collections
236,485
236,485
$ -
Licenses and permits
-
28,111
614,586
Intergovernmental
328,627
301,539
Special assessments
-
131,329
Investment earnings
489
3,673
101,286
125,780
Contributions and donations
-
-
2,500
Refunds and reimbursements
33,731
26,016
Other
-
-
4,400
2,800
Total revenues
236,974
3,673
1,625,640
2,097,550
Expenditures:
Current:
General government
417,382
201,303
Public safety
-
-
55,711
Public works
25,230
381,808
424,953
Parks and recreation
-
-
12,005
13,725
Community development
229,736
229,736
570
Capital outlay:
General government
-
85,277
49,970
Public safety
285,893
701,818
Public works
330,836
79,394
Parks and recreation
-
-
966,308
797,124
Total expenditures
229,736
25,230
2,709,245
2,324,568
Revenues over(under)expenditures
7,238
(21,557)
(1,083,605)
(227,018)
Other financing sources (uses):
Sale of capital assets
-
46,443
25,698
Transfers in
-
350,000
Transfers out
-
-
(9,453)
Total other financing sources (uses)
0
0
46,443
366,245
Net change in fund balance
7,238
(21,557)
(1,037,162)
139,227
Fund balance - January 1
(570)
161,250
4,153,579
4,014,352
Fund balance - December 31
$6,668
$139,693
$3,116,417
$4,153,579
127
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128
CITY OF CHANHASSEN, MINNESOTA
SPECIAL REVENUE FUND - CONTRIBUTION FUND Statement 25
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2020
With Comparative Actual Amounts For The Year Ended December 31, 2019
Revenues:
Investment earnings
Contributions and donations
Total revenues
Expenditures:
Current:
Public safety:
Contractual services
Total expenditures
Net change in fund balance
Fund balance - January 1
Fund balance - December 31
2020
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
2019
Actual
Amounts
$ - $ - $485 $485 $704
40,000 40,000 24,870 (15,130) 41,265
40,000 40,000 25,355 (14,645) 41,969
53,600 53,600 21,385 32,215 54,615
53,600 53,600 21,385 32,215 54,615
($13,600) ($13,600)
3,970 ($46,860)
18,158
$22,128
(12,646)
30,804
$18,158
129
CITY OF CHANHASSEN, MINNESOTA
SPECIAL REVENUE FUND - CEMETERY FUND Statement 26
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2020
With Comparative Actual Amounts For The Year Ended December 31, 2019
Revenues:
Charges for services
Investment earnings
Contributions and donations
Total revenues
Expenditures:
Current:
General government:
Contractual services
Total expenditures
Revenues over (under) expenditures
Fund balance - January 1
Fund balance - December 31
2020
Budgeted Amounts
Original Final
Actual Variance with
Amounts Final Budget
2019
Actual
Ammints
$3,700 $3,700 $13,900 $10,200 $8,950
200 200 1,810 1,610 1,905
- - - - 1,000
3,900 3,900 15,710 11,810 11,855
2,000 2,000 3,563 (1,563) 2,190
2,000 2,000 3,563 (1,563) 2,190
$1,900 $1,900
12,147 $10,247 9,665
58,708 49,043
$70,855 $58,708
130
CITY OF CHANHASSEN, MINNESOTA
SPECIAL REVENUE FUND - CATV Statement 27
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2020
With Comparative Actual Amounts For The Year Ended December 31, 2019
Revenues:
Franchise fees
Investment earnings
Total revenues
Expenditures:
Current:
General government:
Personal services
Materials and supplies
Contractual services
Capital outlay
Total expenditures
Revenues over expenditures
Fund balance - January 1
Fund balance - December 31
2020
Budgeted Amounts
Original Final
Actual Variance with
Amounts Final Budget
2019
Actual
Amnimtc
$188,000
$188,000
$177,362
($10,638)
$185,181
3,000
3,000
13,008
10,008
18,121
191,000
191,000
190,370
(630)
203,302
116,400
116,400
116,105
295
114,761
5,000
5,000
-
5,000
309
32,300
32,300
45,635
(13,335)
55,195
15,000
15,000
-
15,000
60,074
168,700
168,700
161,740
6,960
230,339
$22,300
$22,300
28,630
$6,330
(27,037)
541,044
$569,674
568,081
$541,044
131
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132
III. STATISTICAL SECTION (UNAUDITED)
133
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134
III. STATISTICAL SECTION (UNAUDITED)
This part of the City of Chanhassen'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's overall
financial health.
Contents
Table
Number
Financial Trends
These tables contain trend information to help the reader understand how the Tables 1-4
City's financial performance and well-being have changed over time.
Revenue Capacity
These tables contain information to help the reader assess the City's most Tables 5-8
significant local revenue source, the property tax.
Debt Capacity
These tables present information to help the reader assess the affordability of the Tables 9-13
City's current levels of outstanding debt and the City's ability to issue additional
debt in the future.
Demographic and Economic
These tables offer demographic and economic indicators to help the reader Tables 14-15
understand the environment within which the City's financial activities take
place.
Operating Information
These tables contain service and infrastructure data to help the reader Tables 16-18
understand how the information in the City's financial report relates to the
services the City provides and the activities it performs.
Sources: Unless otherwise noted, the information in these tables is derived from the
comprehensive financial reports for the relevant year.
135
CITY OF CHANHASSEN, MINNESOTA
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2011
2012
Governmental activities:
Net investment in capital assets
$70,866,708
$69,987,563
Restricted:
Debt service
9,774,727
5,905,553
Park Improvements
2,516,027
1,650,118
Tax increment purposes
812,096
1,022,785
Other purposes
168,147
142,747
Unrestricted
8,823,980
14,544,111
Total governmental activities net position
$92,961,685
$93,252,877
Business -type activities:
Net investment in capital assets
$55,430,138
$54,475,353
Unrestricted
9,484,947
10,631,342
Total business -type activities net position
$64,915,085
$65,106,695
Primary government:
Net investment in capital assets
Restricted:
Debt service
Park Improvements
Tax increment purposes
Other purposes
Unrestricted
Total primary government net position
$126,296,846
9,774,727
2,516,027
812,096
168,147
19-309-927
$124,462,916
5,905,553
1,650,118
1,022,785
142,747
25.175.453
2013
$71,260,946
6,595,927
1,714,972
1,347,593
165,838
13,724,705
$94,809,981
$52,541,451
11,391,338
$63,932,789
$123,802,397
6,595,927
1,714,972
1,347,593
165,838
25,116,043
2014
$71,867,072
3,441,810
1,751,739
965,809
176,089
13,877,772
$92,080,291
$54,111,608
10,467,201
$64,578,809
$125,978,680
3,441,810
1,751,739
965,809
176,089
24,344,973
$157,876,770 $158,359,572 $158,742,770 $156,659,100
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.
136
Table 1
2015
2016
2017
2018
2019
2020
$71,225,523
$72,588,940
$70,255,784
$71,053,355
$72,986,179
$73,063,927
3,455,172
1,390,127
1,400,411
1,189,447
1,283,606
564,714
1,896,923
1,505,784
1,716,043
1,224,509
1,537,790
991,872
475,357
399,178
-
-
-
6,668
154,810
164,751
153,633
135,024
61,995
65,965
9,510,105
10,221,704
10,028,355
8,781,660
8,360,013
9,369,203
$86,717,890
$86,270,484
$83,554,226
$82,383,995
$84,229,583
$84,062,349
$55,704,478
$57,478,975
$57,212,106
$56,195,385
$54,469,960
$55,526,666
10,032,731
10,516,316
10,126,315
12,342,280
13,557,181
11,740,521
$65,737,209
$67,995,291
$67,338,421
$68,537,665
$68,027,141
$67,267,187
$126,930,001
$130,067,915
$127,467,890
$127,248,740
$127,456,139
$128,590,593
3,455,172
1,390,127
1,400,411
1,189,447
1,283,606
564,714
1,896,923
1,505,784
1,716,043
1,224,509
1,537,790
991,872
475,357
399,178
-
-
-
6,668
154,810
164,751
153,633
135,024
61,995
65,965
19,542,836
20,738,020
20,154,670
21,123,940
21,917,194
21,109,724
$152,455,099
$154,265,775
$150,892,647
$150,921,660
$152,256,724
$151,329,536
137
CITY OF CHANHASSEN, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Expenses
Governmental activities:
General government
Public safety
Public works
Parks and recreation
Community development
Interest on long-term debt
Total governmental activities expenses
Business -type activities:
Water
Sewer
Surface water management
Total business -type activities expenses
Total primary government expenses
Program revenues
Governmental activities:
Charges for services:
Licenses and permits
Charges for services
Franchise fees
Fines and forfeits
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business -type activities:
Charges for services:
Water
Sewer
Surface water management
Operating grants and contributions
Capital grants and contributions
Total business -type activities program revenues
Total primary government program revenues
$2,565,486
$2,690,853
$2,630,405
$3,099,004
3,061,122
3,176,441
3,313,694
3,416,088
8,607,534
7,743,147
14,224,453
9,604,525
2,921,593
3,114,340
2,919,183
3,062,592
799,379
646,262
523,651
1,043,848
838,421
725,881
588,352
465,935
18,793,535
18,096,924
24,199,738
20,691,992
3,581,955
3,646,787
4,702,686
3,347,965
3,317,329
3,235,324
3,548,200
3,171,696
1,173,115
1,347,345
1,334,173
1,491,763
8,072,399
8,229,456
9,585,059
8,011,424
$26,865,934
$26,326,380
$33,784,797
$28,703,416
$1,381,326 $1,595,358 $2,113,770 $1,691,634
1,047,726 1,394,356 1,396,068 1,149,372
126,571 119,997 99,984 100,516
692,428 404,663 472,298 532,337
1 GAG C71 7 nG4 An4 in ^ i Q nnn 4 1nK ' AO
2,611,327
3,146,886
2,829,226
2,573,027
2,297,677
2,434,370
2,358,854
2,472,536
534,473
590,323
615,896
639,087
12,589
121,925
63,112
210,857
1,086,655
1,861,689
2,852,437
2,633,793
6,542,721
8,155,193
8,719,525
8,529,300
$11,437,345
$14,623,063
$23,520,644
$15,299,907
138
Table 2
Page 1 of 2
2015
2016
2017
2018
2019
2020
$2,775,663
$2,887,111
$3,230,517
$3,291,465
$2,968,604
$3,503,418
3,826,376
3,973,031
3,969,540
3,819,890
4,045,361
3,975,838
11,153,322
7,591,530
8,161,048
7,225,531
9,808,088
25,142,224
2,952,985
3,278,139
3,227,236
3,158,725
3,275,021
2,704,009
527,268
689,448
918,962
589,570
535,700
754,205
409,676
493,746
408,273
173,323
132,327
107,993
21,645,290
18,913,005
19,915,576
18,258,504
20,765,101
36,187,687
3,290,265
4,422,789
3,866,810
4,567,874
5,842,506
4,908,477
3,297,128
3,254,619
3,746,880
4,122,804
3,879,581
4,312,195
1,328,144
1,388,979
1,538,468
1,634,475
1,918,378
1,694,090
7,915,537
9,066,387
9,152,158
10,325,153
11,640,465
10,914,762
$29,560,827
$27,979,392
$29,067,734
$28,583,657
$32,405,566
$47,102,449
$1,565,900
$1,653,858
$1,641,140
$2,289,052
$2,047,190
$1,574,780
1,153,779
1,209,882
1,257,486
1,203,187
1,090,985
918,148
-
-
-
-
-
1,826,255
117,189
114,367
128,394
95,351
89,989
73,800
823,943
735,840
902,871
948,912
2,770,655
14,970,473
5,812,825
3,705,857
2,425,333
1,669,995
4,716,702
4,066,959
9,473,636
7,419,804
6,355,224
6,206,497
10,715,521
23,430,415
2,611,895
2,717,285
2,921,936
3,121,292
3,108,307
3,533,939
2,525,731
2,619,882
2,764,674
3,034,207
3,144,282
3,260,080
668,971
684,199
709,508
764,930
998,832
1,083,833
45,130
72,007
45,109
44,604
460,905
39,552
3,140,823
5,199,139
1,678,595
3,965,466
3,108,377
2,084,681
8,992,550
11,292,512
8,119,822
10,930,499
10,820,703
10,002,085
$18,466,186
$18,712,316
$14,475,046
$17,136,996
$21,536,224
$33,432,500
139
CITY OF CHANHASSEN, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Net (expense) revenue:
Governmental activities
Business -type activities
Total primary government
net(expense)revenue
General revenues and other changes in net position:
Governmental activities:
Property taxes
Tax increment collections
Grants and contributions not restricted to specific programs
Unrestricted investment earnings
Gain on sale of capital assets
Special item - sale of public works building
Transfers
Total governmental activities
Business -type activities:
Unrestricted investment earnings
Miscellaneous
Gain on sale of capital assets
Transfers
Total business -type activities
Total primary government
Change in net assets:
Governmental activities
Business -type activities
Total primary government
2011
2012
2013
2014
($13,898,911)
($11,629,054)
($9,398,619)
($13,921,385)
(1,529,678)
(74,263)
(865,534)
517,876
(15,428,589)
(11,703,317)
(10,264,153)
(13,403,509)
9,849,882
10,064,176
10,059,324
10,482,273
566,045
533,011
545,906
307,940
28,304
20,071
19,941
19,736
505,541
173,523
(14,764)
183,602
44,000
56,610
37,720
191,755
-
1,246,275
-
-
1,061,763
(173,420)
307,596
6,389
12,055,535
11,920,246
10,955,723
11,191,695
211,707
92,453
(776)
134,533
6,643
-
-
-
(1,061,763)
173,420
(307,596)
(6,389)
(843,413)
265,873
(308,372)
128,144
$11,212,122
$12,186,119
$10,647,351
$11,319,839
($1,843,376)
$291,192
$1,557,104
($2,729,690)
(2,373,091)
191,610
(1,173,906)
646,020
($4,216,467)
$482,802
$383,198
($2,083,670)
140
Table 2
Page 2 of 2
2015
2016
2017
2018
2019
2020
($12,171,654)
($11,493,201)
($13,560,352)
($12,052,007)
($10,049,580)
($12,757,272)
1,077,013
2,226,125
(1,032,336)
605,346
(819,762)
(912,677)
(11,094,641)
(9,267,076)
(14,592,688)
(11,446,661)
(10,869,342)
(13,669,949)
10,536,216
10,643,917
10,826,116
10,877,849
10,996,831
11,745,709
200,338
111,761
-
-
-
236,485
21,679
19,754
19,753
19,755
20,009
-
176,731
156,202
164,393
258,456
491,345
368,168
66,248
41,129
38,254
45,244
103,976
-
(612,078)
73,032
(204,422)
(319,528)
283,007
239,676
10,389,134
11,045,795
10,844,094
10,881,776
11,895,168
12,590,038
132,406
79,765
171,044
263,802
548,747
390,604
57,510
25,224
-
10,568
43,498
1,795
612,078
(73,032)
204,422
319,528
(283,007)
(239,676)
801,994
31,957
375,466
593,898
309,238
152,723
$11,191,128
$11,077,752
$11,219,560
$11,475,674
$12,204,406
$12,742,761
($1,782,520)
($447,406)
($2,716,258)
($1,170,231)
$1,845,588
($167,234)
1,879,007
2,258,082
(656,870)
1,199,244
(510,524)
(759,954)
$96,487
$1,810,676
($3,373,128)
$29,013
$1,335,064
($927,188)
141
CITY OF CHANHASSEN, MINNESOTA
FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2011
2012
2013
2014
General Fund:
Nonspendable
$17,280
$57,137
$16,741
$58,333
Unassigned
5,278,118
5,434,641
5,274,584
5,550,732
Total general fund
$5,295,398
$5,491,778
$5,291,325
$5,609,065
All other governmental funds:
Nonspendable
$12,662
$1,373,146
$1,327,068
$1,289,575
Restricted
10,426,585
6,359,422
9,181,230
5,724,419
Assigned
6,561,411
6,731,400
6,366,292
5,951,507
Unassigned
(730,120)
(646,856)
(559,515)
(475,352)
Total all other governmental funds
$16,270,538
$13,817,112
$16,315,075
$12,490,149
142
Table 3
2015
2016
2017
2018
2019
2020
$72,114
$25,832
$81,032
$87,067
$82,265
$63,775
5,258,232
5,286,880
5,307,088
5,667,626
5,255,804
6,684,991
$5,330,346
$5,312,712
$5,388,120
$5,754,693
$5,338,069
$6,748,766
$1,253,705
$ -
$990,723
$9,326
$8,781
$49,690
5,824,354
8,673,981
8,458,576
2,618,680
2,944,091
1,669,927
5,586,353
7,806,958
6,602,135
6,414,882
6,657,125
6,809,934
(372,509)
(264,772)
(154,506)
(24,491)
(570)
-
$12,291,903
$16,216,167
$15,896,928
$9,018,397
$9,609,427
$8,529,551
143
CITY OF CHANHASSEN, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Revenues:
General property taxes
Tax increment collections
Licenses and permits
Intergovernmental
Franchise fees
Special assessments
Charges for services
Fines and forfeits
Investment income
Contributions and donations
Refunds and reimbursements
Other
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Parks and recreation
Community development
Capital outlay:
General government
Public safety
Public works
Parks and recreation
Debt service:
Principal
Interest and paying agent fees
Bond issuance costs
Developer assistance
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Bonds issued
Project financing
Bond premium (discount)
Remption of refunding bonds
Transfers in
Transfers out
Sale of capital assets
Special item - sale of public works building
Total other financing sources (uses)
Net change in fund balance
Debt service as a percentage of noncapital expenditures
Debt service as percentage of total expenditures
$9,760,052
566,045
1,381,326
1,425,525
1,242,040
795,616
126,571
505,541
50,685
117,441
846,523
1 G Q1'7 141Z
$10,143,011
533,011
1,595,358
2,151,785
1,667,881
880,920
119,997
173,523
36,893
253,030
264,038
17 Q10 AA'7
$10,176,483
545,906
2,113,770
7,971,339
3,193,078
907,414
99,984
(14,764)
33,159
235,363
259,703
7Q Q71 A1Q
$10,489,350
307,940
1,691,634
2,553,062
854,966
798,578
100,516
183,602
66,918
77,871
265,119
1'7 1Qn [GG
2,162,479
2,326,490
2,274,640
2,350,437
2,896,644
3,013,980
3,179,446
3,258,363
4,779,067
3,726,158
10,628,140
5,352,221
1,906,489
2,154,714
2,002,604
2,164,703
502,916
621,295
522,538
1,034,047
129,535
75,226
87,707
34,080
52,645
39,314
74,144
23,980
2,122,641
3,502,371
2,482,728
2,894,237
309,524
1,310,366
627,214
485,107
1,025,000
5,100,000
1,590,000
4,190,000
853,152
814,621
599,487
518,722
298,216
21,108
-
-
17,038,308
22,705,643
24,068,648
22,305,897
(220,943)
(4,886,196)
1,452,787
(4,916,341)
1,734,590
1,734,590
$1,513,647
13.3%
11.0%
1,203,031
(48,881)
1,475,000
2,629,150
($2,257,046)
33.3%
26.0%
888,711
(43,988)
844,723
$2,297,510
10.5%
9.1%
1,783,719
(676,095)
301,531
1,409,155
($3,507,186)
25.0%
21.1%
144
Table 4
$10,529,994
$10,640,315
$10,820,682
$10,856,842
$10,960,876
$11,800,538
200,338
111,761
-
-
-
236,485
1,565,900
1,653,858
1,641,140
2,289,052
2,047,190
1,574,780
4,897,139
974,917
2,149,875
2,019,215
6,294,417
18,569,329
-
-
-
-
-
1,826,255
1,664,424
820,026
842,523
600,056
727,026
464,373
799,543
846,540
838,498
820,745
808,010
546,809
117,189
114,367
128,394
95,351
89,989
73,800
176,731
156,202
164,393
258,456
491,345
368,168
78,175
60,802
73,734
70,339
70,202
56,101
85,955
150,093
174,853
156,920
73,468
88,945
267,622
276,067
264,114
225,522
209,507
263,202
20,383,010
15,804,948
17,098,206
17,392,498
21,772,030
35,868,785
2,391,195
2,479,271
2,871,267
2,835,108
2,644,661
3,361,771
3,431,541
3,713,146
3,602,897
3,593,877
3,802,544
3,786,905
7,537,376
3,961,016
4,617,523
3,847,782
6,041,417
20,127,051
2,068,532
2,256,314
2,395,554
2,326,272
2,418,229
1,854,471
515,382
659,276
940,000
610,368
567,461
803,234
-
62,713
30,838
22,133
110,044
833,034
122,143
314,004
2,950
1,169,952
701,818
387,528
2,566,867
459,142
2,595,012
2,315,068
4,959,997
4,938,481
476,323
1,153,763
376,992
1,316,908
797,124
1,121,223
1,810,000
1,795,000
670,000
5,985,000
720,000
1,585,000
439,470
483,533
433,925
295,294
157,312
143,970
21,358,829
17,337,178
18,536,958
24,317,762
22,920,607
38,942,668
(975,819)
(1,532,230)
(1,438,752)
(6,925,264)
(1,148,577)
(3,073,883)
-
4,805,000
-
-
-
-
-
-
-
-
-
546,108
-
239,773
-
-
-
-
2,158,844
1,347,883
1,924,157
6,724,164
2,153,197
2,852,877
(1,701,005)
(1,044,114)
(748,522)
(6,369,316)
(855,912)
(40,724)
41,015
90,318
19,286
58,458
25,698
46,443
498,854
5,438,860
1,194,921
413,306
1,322,983
3,404,704
($476,965)
$3,906,630
($243,831)
($6,511,958)
$174,406
$330,821
12.4%
14.8%
7.1%
32.2%
5.4%
5.5%
10.5%
13.1%
6.0%
25.8%
3.8%
4.4%
145
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
2011
$28,951,885
$131,751
$9,778,491
$511,185
$39,373,312
2012
27,198,238
137,012
9,149,904
520,743
37,005,897
2013
26,970,557
105,160
8,927,095
541,612
36,544,424
2014
28,725,937
132,728
8,984,174
613,105
38,455,944
2015
32,778,287
153,500
9,205,053
620,620
42,757,460
2016
33,790,483
222,144
9,508,063
669,890
44,190,580
2017
34,470,607
278,224
9,910,242
764,420
45,423,493
2018
36,545,419
296,153
10,317,456
869,646
48,028,674
2019
39,891,179
191,360
10,897,809
896,937
51,877,285
2020
42,947,538
135,300
11,666,538
886,150
55,635,526
Sources: Carver County Taxpayer Services and Hennepin County
146
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
($509,863)
($1,998,912)
$36,864,537
26.60256
$3,350,141,800
1.10%
(469,759)
(2,038,437)
34,497,701
28.53211
3,153,275,000
1.09%
(435,999)
(1,804,630)
34,303,795
28.42838
3,118,066,700
1.10%
(252,884)
(1,971,928)
36,231,132
27.23862
3,294,605,000
1.10%
(267,337)
(1,896,611)
40,593,512
24.63317
3,686,777,200
1.10%
(103,638)
(2,119,400)
41,967,542
24.25249
3,802,904,100
1.10%
-
(2,055,461)
43,368,032
23.85464
3,899,829,200
1.11%
-
(2,009,509)
46,019,165
22.66614
4,112,577,100
1.12%
-
(2,001,778)
49,875,507
21.10456
4,444,627,000
1.12%
(248,355)
(2,077,771)
53,309,400
21.17559
4,749,987,200
1.12%
147
CITY OF CHANHASSEN, MINNESOTA
DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES
Last Ten Fiscal Years
City Direct Rate(l)
Overlapping Rates
Fiscal
Operational
Debt
City
School
Carver
Year
and Capital
Service
Total
District #112
County
Other
Tax capacity rates (per $100 of adjusted tax capacity value)
2011
21.915
4.688
26.603
40.236
41.752
6.021
2012
23.701
4.831
28.532
44.382
43.562
6.681
2013
23.635
4.793
28.428
45.319
46.115
6.603
2014
22.708
4.531
27.239
44.917
45.211
6.873
2015
21.532
3.101
24.633
39.120
40.488
6.270
2016
21.314
2.938
24.252
39.245
38.880
6.417
2017
21.536
2.317
23.853
37.005
38.851
6.565
2018
20.731
1.935
22.666
33.837
37.436
6.537
2019
19.314
1.791
21.105
33.631
36.488
6.368
2020
19.484
1.692
21.176
33.006
35.179
6.101
Source: Carver County Taxpayer Services
(')The City Direct Rate is the Urban Based Rate, not including market value levies.
Table 6
Total
114.610
123.158
126.467
124.239
110.512
108.795
106.274
100.476
97.592
95.463
148
CITY OF CHANHASSEN, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
Table 7
2020
2011
Percentage
Percentage
Taxable
of Total City
Taxable
of Total City
Capacity
Capacity
Capacity
Capacity
Taxpayer
Value
Rank
Value
Value
Rank
Value
Istar Minnesota LLC
$514,524
1
1.0%
$369,750
3
1.0%
SGO MN West Village LLC
459,988
2
0.9%
-
Northern States Power Co
449,308
3
0.8%
216,792
6
0.6%
LTF Real Estate MP II LLC
379,612
4
0.7%
207,822
7
0.6%
Rosemount Inc
316,160
5
0.6%
433,552
1
1.2%
Lake Susan Apartment Homes LLC
310,230
6
0.6%
-
Chanhassen Frontier LLC
288,572
7
0.5%
-
LTF Real Estate Company Inc
263,590
8
0.5%
-
Centerpoint Energy Minnegasco
242,840
9
0.5%
-
PHM/Chanhassen Inc.
234,379
10
0.4%
-
IRET Properties
-
372,872
2
1.0%
LTF Real Estate VRDN I LLC
-
239,202
4
0.6%
DRF Chanhassen Medical Bldg
-
231,502
5
0.6%
Park Avenue Lofts LLC
-
205,656
8
0.5%
Target Corporation T-0862
-
193,250
9
0.5%
Kraus -Anderson, Inc
-
183,900
10
0.5%
Total
$3,459,203
6.4%
$2,654,298
7.1%
Total All Property
$53,768,289
$37,501,865
Source: Carver County Taxpayer Services
149
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W11
CITY OF CHANHASSEN, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Fiscal
Taxes
Year
Levied
Ended
For The
December 31,
Fiscal Year
2011
$10,267,390
2012
10,153,690
2013
10,195,890
2014
10,334,140
2015
10,484,021
2016
10,629,621
2017
10,795,121
2018
10,913,868
2019
11,019,868
2020
11,741,368
Source: City Finance Department
Collected Within The
Fiscal Year of the Levy
Percentage
Amount
of Levy
$9,739,125
94.9%
10,005,877
98.5%
10,105,393
99.1%
10,269,518
99.4%
10,446,765
99.6%
10,564,815
99.4%
10,718,876
99.3%
10,834,344
99.3%
10,924,102
99.1%
11,656,656
99.3%
Collections
in
Subsequent
Years
$186,353
51,796
20,236
28,614
26,410
48,775
20,151
48,755
69,228
Table 8
Total Collections to Date
Amount
$9,925,478
10,057,674
10,125,629
10,298,132
10,473,175
10,613,591
10,739,027
10,883,099
10,993,329
11,656,656
Percentage
of Levy
96.7%
99.1%
99.3%
99.7%
99.9%
99.8%
99.5%
99.7%
99.8%
99.3%
151
CITY OF CHANHASSEN, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Governmental Activities
General
General
Fiscal
Obligation
Revenue Tax Increment
Improvement
Year
Bonds
Bonds Bonds
Bonds
2011
$16,195,000
$120,000 $840,000
$5,615,000
2012
11,475,000
- 775,000
5,420,000
2013
10,155,000
- 705,000
5,220,000
2014
9,550,000
- 635,000
1,705,000
2015
8,925,000
- -
1,155,000
2016
13,313,788
- -
-
2017
12,627,803
- -
-
2018
6,626,818
- -
-
2019
5,890,833
- -
-
2020
4,289,848
- -
-
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(')Information pertaining to Chanhassen Personal Income is not available, information for Carver County was
included instead.
(a) Information not available
152
Business -Type
Activities
Other G.O. Revenue
Debt Bonds
$20,077,339
20,578,313
16,324,287
10,045,261
9,256,235
13,926,719
23,379,318
25,671,988
23,755,499
28,535,933
Total Debt
$42,847,339
38,248,313
32,404,287
21,935,261
19,336,235
27,240,507
36,007,121
32,298,806
29,646,332
32,825,781
Debt
Per Capita
$1,849
1,629
1,353
899
784
1,092
1,425
1,238
1,125
1,208
Table 9
Bonded Debt
Per Total
Carver County
Personal
Income(i)
0.8%
0.7%
0.6%
0.4%
0.3 %
0.4%
0.5%
0.4%
0.4%
(a)
153
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
2011
$16,195,000
$840,000
$5,615,000
$20,077,339
$42,727,339
$16,998,401
$25,728,938
68.61%
$1,110
2012
11,475,000
775,000
5,420,000
20,578,313
38,248,313
13,020,206
25,228,107
71.80%
1,074
2013
10,155,000
705,000
5,220,000
16,324,287
32,404,287
10,266,366
22,137,921
63.62%
924
2014
9,550,000
635,000
1,705,000
10,045,261
21,935,261
3,441,810
18,493,451
50.09%
758
2015
8,925,000
-
1,155,000
9,256,235
19,336,235
3,455,171
15,881,063
38.60%
644
2016
13,313,788
-
13,926,719
27,240,507
6,418,913
20,821,594
48.72%
834
2017
12,627,803
23,379,318
36,007,121
6,413,214
29,593,907
67.23%
1,171
2018
6,626,818
25,671,988
32,298,806
1,189,446
31,109,360
66.81%
1,192
2019
5,890,833
23,755,499
29,646,332
1,283,606
28,362,727
56.31%
1,076
2020
4,289,848
28,535,933
32,825,781
564,713
32,261,067
60.00%
1,187
Note: Details regarding the CiWs outstanding debt can be found in the notes to the financial statements.
154
CITY OF CHANHASSEN, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
December 31, 2020
Table 11
Estimated
Estimated Share of
Debt Percentage Overlapping
Governmental Unit Outstanding Applicable* Debt
Direct debt:
City of Chanhassen(') $4,289,848 100.00% $4,289,848
Overlapping debt:
Eastern Carver County School District
178,825,000
36.94%
66,057,955
Eden Prairie Independent School District
95,033,468
0.93%
883,811
Carver County
10,650,000
31.24%
3,327,060
Hennepin County
998,790,298
0.05%
499,395
Hennepin Suburban Park District
42,954,642
0.07%
30,068
Hennepin Regional Railroad Authority
93,859,422
0.05%
46,930
Metropolitan Council
103,225,628
0.03%
30,968
Subtotal - overlapping debt
1,523,338,458
70,876,187
Total direct and overlapping debt
(')Excludes debt related to the City's business -type activities.
$1,527,628,306
$75,166,035
155
CITY OF CHANHASSEN, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2020
Market value $4,749,987,200
Applicable percentage 3%
Debt limit 142,499,616
Debt applicable to limit:
Total bonded debt 32,825,781
Less:
Special assessment bonds -
Tax increment bonds -
Enterprise Fund debt (28,535,933)
Less:
Cash and investments in G.O. Bond Debt Service Fund (603,551)
3,686,297
Legal debt margin $138,813,319
Legal Debt Margin Calculation for Fiscal Years 2011 Through 2020
Table 12
Net Debt
Net Debt Legal Amount of Debt Applicable
Fiscal Debt Applicable to Debt Applicable to to Limit
Year Population Limit Limit Margin Debt Limit Per Capita
2011
23,179
$100,504,254
$14,755,258
$85,748,996
14.68%
$637
2012
23,484
94,598,250
10,117,347
84,480,903
10.70%
431
2013
23,954
93,542,001
8,705,958
84,836,043
9.31%
363
2014
24,388
98,838,150
8,030,953
90,807,197
8.13%
329
2015
24,655
110,603,316
7,346,583
103,256,733
6.64%
298
2016
24,951
114,087,123
6,721,445
107,365,678
5.89%
269
2017
25,273
116,994,876
6,048,333
110,946,543
5.17%
239
2018
26,088
123,377,313
5,377,482
117,999,832
4.36%
206
2019
26,335
133,338,810
4,555,132
128,783,678
3.42%
173
2020
27,170
142,499,616
3,686,297
138,813,319
2.59%
136
156
CITY OF CHANHASSEN, MINNESOTA
PLEDGED REVENUE COVERAGE Table 13
Last Ten Fiscal Years
Improvement Bonds
Special
Fiscal
Assessment
Debt Service
Year
Collections
Principal Interest
Coverage
2011
$456,912
$190,000 $171,300
1.265
2012
625,288
195,000 165,525
1.734
2013
2,174,645
200,000 159,600
6.047
2014
119,060
3,515,000 103,875
0.033
2015
751,995
550,000 42,900
1.268
2016
6,298
1,155,000 26,175
0.005
2017
-
- -
-
2018
-
- -
-
2019
-
- -
-
2020
-
- -
-
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.
157
CITY OF CHANHASSEN, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
Fiscal
Year
Chanhassen
Population(l)
2011
23,179
2012
23,484
2013
23,954
2014
24,388
2015
24,655
2016
24,951
2017
25,273
2018
26,088
2019
26,355
2020
27,170
Chanhassen
Unemployment
Rate(2)
4.8%
4.5%
4.1%
3.4%
2.9%
2.9%
2.8%
2.4%
2.5%
4.8%
Carver County
Unemployment
Rate(2)
5.5%
4.8%
4.3%
3.6%
3.2%
3.3%
2.9%
2.5%
2.8%
4.9%
Table 14
Carver County Carver County
Personal Income
Per Capita
(thousands)(3)
Personal Income (3)
$5,126,799
$55,236
5,520,198
58,811
5,641,039
59,001
6,074,179
62,391
6,377,854
64,664
6,581,420
65,569
6,984,354
68,395
7,378,582
71,268
7,655,911
72,852
(a)
(a)
Sources: (I )Federal Census Data and Chanhassen Planning Department
(2)State of Minnesota, Department of Employment and Economic Development
(3)U.S. Department of Commerce, Bureau of Economic Analysis
(a) Information not available
Note: Information pertaining to Chanhassen Personal Income and Per Capita Personal Income is not available, information
for Carver County was included instead.
158
CITY OF CHANHASSEN, MINNESOTA
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
Employer
Employees
Lifetime Fitness
1,464
Instant Web Companies
1,157
Rosemount Inc
1,067
The Bernard Group
646
Eastern Carver County Schools
465
RR Donnelley
382
General Mills
350
Minnesota Landscape Arboretum
266
Chanhassen Dinner Theatres
261
Control Products
181
Super Value Headquarters
Checkpoint Systems Inc
Total 6,239
2020
Percentage
of Total City
Rank
Employment I
Employees
1
23.5%
899
2
18.5%
843
3
17.1%
1,594
4
10.4%
5
7.5%
350
6
6.1%
364
7
5.6%
288
8
4.3%
243
9
4.2%
250
10
2.9%
-
650
5,746
Table 15
2011
Percentage
of Total City
Rank
Employment 1)
2
15.6%
3
14.7%
1
27.7%
6
6.1%
5
6.3%
7
5.0%
10
4.2%
9
4.4%
4
11.3%
8
4.6%
Source: ReferenceUSA, written and telephone survey, and the Minnesota Department of Employment and Economic Development.
Note: This does not purport to be a comprehensive list and is based on available data obtained through a survey of individual
employers, as well as the sources identified above. Some employers do not respond to inquiries for employment data.
(')The statistic for total City employment is not available, therefore the percentage represents the percentage of the top ten listed.
159
CITY OF CHANHASSEN, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Full -Time Equivalent Employees as of December 31,
Function/Program 2011 2012 2013 2014
General government 13 13 13 13
Public safety 3 3 3 3
Public works 26 26 26 26
Parks & recreation 11 11 11 11
Community development 15 14 14 14
Total 68 67 67 67
Source: City Finance Department
160
Table 16
Full -Time Equivalent Employees as of December 31,
2015 2016 2017 2018 2019 2020
13
13
13
13
13
13
3
2
2
2
2
2
26
27
29
29
29
30
11
12
13
13
13
14
14
16
16
16
15
15
67
70
73
73
72
74
161
CITY OF CHANHASSEN, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program
Building:
Total permits issued
Total estimated value
Election:
Registered voters
Fire:
Average number of employees
General government:
Area of city - square miles
Average number of permanent full-time
employees (excluding fire department)
Police:
Average number of employees
Number of crimes - MNCJRS(')
Number of crimes - NIBRS(')
Water:
Number of customers
Daily average consumption - gallons
Plant capacity - gallons
Source: Various City Departments
Fiscal Year
2011 2012 2013 2014
3,397
3,285
3,201
3,076
$82,991,029
$83,531,808
$89,370,069
$80,591,941
15,326
16,916
16,916
16,344
45
45
45
45
23.78
23.78
23.78
23.79
68
67
67
67
15
15
15
15
757
777
748
838
7,655
7,741
7,953
8,075
2,257,542
2,570,349
2,876,383
2,542,413
8,550,000
8,550,000
8,550,000
8,550,000
(')Crime statistics in Minnesota had been reported for the last forty years utilizing Minnesota's Criminal Justice
Reporting System (MNCJRS). The Federal Bureau of Investigations has mandated that all states become National
Incident Based Reporting System (NIBRS) compliant by 2019. The Carver County Sheriff s Office transitioned to
NIBRS June 1, 2016.
162
Table 17
Fiscal Year
2015 2016 2017 2018 2019 2020
3,266
2,891
2,981
3,085
3,259
4,528
$82,145,483
$73,881,121
$82,430,550
$136,016,287
$103,902,405
$87,160,588
16,344
17,769
17,769
17,480
17,480
19,245
45
45
45
45
45
45
23.79
23.79
23.79
23.79
23.79
23.79
67
70
73
73
72
74
15
15
15
15
15
15
870
313
-
-
-
-
-
472
737
698
692
796
8,195
8,254
8,312
8,407
8,481
8,539
2,495,868
2,565,905
2,624,486
2,888,586
2,247,455
2,677,163
8,550,000
8,550,000
8,550,000
17,100,000
17,100,000
17,100,000
163
CITY OF CHANHASSEN, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program
Fire:
Number of stations
Parks and recreation:
Acres of parks
Acres of open space
Number of shelter buildings
Number of picnic shelters
Number of playgrounds
Number of swimming beaches
Number of tennis courts
Number of outdoor pickleball courts
Police:
Number of stations
Public works:
Miles of streets
Miles of sidewalks
Miles of trails
Sewer:
Miles of storm sewers
Miles of sanitary sewers
Number of lift stations
Water:
Miles of watermains
Number of wells
Source: Various City Departments
Fiscal Year
2011 2012 2013 2014
2
2
2
2
396
401
401
405
489
503
503
503
4
4
4
4
5
5
6
7
26
26
27
27
5
5
5
5
17
15
15
15
-
2
3
6
1
1
1
1
112.0
112.6
113.5
113.7
31.9
31.9
31.9
32.0
56.1
56.4
58.6
59.2
74.5
75.3
76.5
77.0
123.7
123.9
124.3
124.5
31
31
31
31
137.8
138.0
139.1
139.3
12
12
12
12
164
2015 2016
2
405
503
4
13
27
5
15
6
1
113.9
32.0
59.9
78.8
125.3
31
140.6
12
2
405
503
4
15
27
5
15
6
1
116.5
34.0
62.4
84.3
128.2
31
145.5
13
Fiscal Year
2017
2
466
528
4
18
27
5
16
10
1
116.5
34.0
62.4
84.5
128.2
31
145.5
13
2018
2
466
528
4
21
27
5
16
10
1
117.0
34.0
65.0
86.8
128.6
31
148.8
13
2019
2
466
628
4
21
28
5
16
10
1
117.1
34.0
66.4
86.9
128.8
31
148.9
13
Table 18
2020
2
466
628
4
21
28
5
16
10
1
117.3
34.0
68.7
87.7
129.0
31
149.7
13
165
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W-11.
IV. OTHER INFORMATION (UNAUDITED)
167
CITY OF CHANHASSEN, MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS
December 31, 2020
Final
Interest
Issue
Maturity
Bonded indebtedness:
Rates
Date
Date
General obligation bonds:
G.O. Library Refunding Bonds, Series 2010A
2.00%-3.10%
01/27/10
02/01/22
G.O. Bonds, Series 2016A
2.00%-3.00%
03/03/16
02/01/30
Total general obligation bonds
Enterprise Fund debt:
G.O. Water Revenue Bonds, Series 2011A
0.30%-2.15%
10/06/11
02/01/22
G.O. Water Revenue Refunding Bonds, Series 2011B
2.00%-3.00%
10/06/11
02/01/25
G.O. Water and Sewer Revenue Bonds, Series 2012A
1.00%-1.55%
11/15/12
02/01/23
G.O. Water Revenue Bonds, Series 2016A
2.00%-3.00%
03/03/16
02/01/26
G.O. Water Revenue Bonds, Series 2016B
3.50%-4.00%
12/29/16
02/01/42
G.O. Water Revenue Bonds, Series 2017A
2.00%-4.00%
02/01/17
02/01/38
G.O. Water Revenue Bonds, Series 2018A
3.00%-4.00%
03/15/18
02/01/30
G.O. Water, Sewer, and Surface Water Revenue Bonds, Series 2020A
2.00% - 3.00%
4/2/2020
2/1/2031
Total Enterprise Fund debt
Total City bonded indebtedness
168
Prior Years
Payable
2020
Exhibit 1
Payable Principal
Original
January 1,
December 31,
Due in
Issue
Payments
2020
Issued
Payments
2020
2021
$3,660,000
$2,420,000
$1,240,000
$ -
$1,240,000
$ -
$ -
4,805,000
330,000
4,475,000
-
345,000
4,130,000
360,000
8,465,000
2,750,000
5,715,000
0
1,585,000
4,130,000
360,000
5,920,000
4,215,000
1,705,000
-
705,000
1,000,000
725,000
3,720,000
560,000
3,160,000
-
480,000
2,680,000
500,000
1,245,000
725,000
520,000
-
125,000
395,000
130,000
1,565,000
425,000
1,140,000
-
150,000
990,000
155,000
3,630,000
-
3,630,000
-
-
3,630,000
-
10,000,000
550,000
9,450,000
150,000
9,300,000
155,000
3,595,000
-
3,330,000
-
260,000
3,070,000
265,000
-
-
-
6,220,000
-
6,220,000
175,000
29,675,000
6,475,000
22,935,000
6,220,000
1,870,000
27,285,000
2,105,000
$38,140,000
$9,225,000
$28,650,000
$6,220,000
$3,455,000
$31,415,000
$2,465,000
169
CITY OF CHANHASSEN, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY Exhibit 2
GENERAL OBLIGATION BONDS - GOVERNMENTAL ACTIVITIES
December 31, 2020
G.O.
Bonds,
Series 2016A Total
Bonds payable $4,130,000 $4,130,000
Future interest payable
463,100
463,100
$4,593,100
$4,593,100
Payments to maturity:
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
$4,593,100
$4,593,100
170
CITY OF CHANHASSEN, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY
GENERAL OBLIGATION REVENUE BONDS
December 31, 2020
Exhibit 3
G.O. Water,
G.O. Water
G.O. Water
G.O. Water &
G.O. Water
G.O. Water
G.O. Water
G.O. Water
Sewer, & Surface
Revenue
Revenue
Sewer Revenue
Revenue
Revenue
Revenue
Revenue
Water Revenue
Bonds, Series
Bonds, Series
Bonds, Series
Bonds, Series
Bonds, Series
Bonds, Series
Bonds, Series
Bonds, Series
2011A
2011B
2012A
2016A
2016B
2017A
2018A
2020A
Total
Bonds payable
$1,000,000
$2,680,000
$395,000
$990,000
$3,630,000
$9,300,000
$3,070,000
$6,220,000
$27,285,000
Future interest payable
16,119
206,700
8,807
73,775
2,766,365
3,305,350
487,575
986,449
7,851,140
$1,016,119
$2,886,700
$403,807
$1,063,775
$6,396,365
$12,605,350
$3,557,575
$7,206,449
$35,136,140
Payments to maturity:
2021
$738,163
$572,900
$134,758
$178,925
$138,238
$443,350
$355,875
$396,174
$2,958,383
2022
277,956
572,675
133,003
179,200
138,238
440,250
356,400
704,700
2,802,422
2023
-
576,925
136,046
179,325
138,238
440,500
356,625
702,975
2,530,634
2024
580,575
-
174,375
138,238
434,100
357,925
700,800
2,386,013
2025
583,625
175,200
138,238
432,600
354,000
703,100
2,386,763
2026
-
176,750
138,238
430,900
354,850
704,800
1,805,538
2027
-
138,238
843,575
355,400
700,975
2,038,188
2028
138,238
845,425
355,650
701,625
2,040,938
2029
138,238
846,675
355,600
705,050
2,045,563
2030
138,238
847,325
355,250
701,450
2,042,263
2031
138,238
842,450
-
484,800
1,465,488
2032
138,238
842,050
-
980,288
2033
138,238
845,975
984,213
2034
138,238
844,225
982,463
2035
138,238
841,875
980,113
2036
138,238
843,850
982,088
2037
138,238
838,150
976,388
2038
275,788
702,075
977,863
2039
943,900
-
943,900
2040
943,431
943,431
2041
939,700
939,700
2042
-
943,500
-
943,500
$1,016,119
$2,886,700
$403,807
$1,063,775
$6,396,365
$12,605,350
$3,557,575
7,206,449
$35,136,140
171
CITY OF CHANHASSEN, MINNESOTA
SCHEDULE OF DEFERRED TAX LEVIES
December 31, 2020
Exhibit 4
G.O. Capital
Total
Years of Improvement
Deferred
Levy/ Plan Bonds
Tax
Collection of 2008A
Levies
2020/2021
$479,745
2021/2022
483,840
2022/2023
482,213
2023/2024
485,520
2024/2025
487,410
2025/2026
489,090
2026/2027
490,560
2027/2028
497,070
2028/2029
498,015
$4,393,463
$479,745
483,840
482,213
485,520
487,410
489,090
490,560
497,070
498,015
$4,393,463
172