2022 Annual Comprehensive Financial ReportAnnual Comprehensive
Financial Report
For the Fiscal Year Ended December 31, 2022 • Golden Valley, Minnesota
photo by Nyla West, 2023 Views Of The Valleyphoto by Nyla West, 2023 Views Of The Valley
CITY OF GOLDEN VALLEY
HENNEPIN COUNTY, MINNESOTA
Annual Comprehensive Financial Report
for Year Ended
December 31, 2022
Prepared by
Finance Department
Sue Virnig – Finance Director
Aaron Gilbert – Accounting Supervisor
Analeigh Moser – Accountant
Jennifer Hoffman – Payroll Accountant
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INTRODUCTORY SECTION
CITY COUNCIL AND OTHER OFFICIALS i
ORGANIZATION CHART ii
FINANCE DIRECTOR’S LETTER OF TRANSMITTAL iii–vii
GFOA CERTIFICATE OF ACHIEVEMENT viii
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT 1–3
MANAGEMENT’S DISCUSSION AND ANALYSIS 4–15
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Position 16Statement of Activities 17–18Fund Financial Statements
Governmental Funds
Balance Sheet 19–20Reconciliation of the Balance Sheet to the Statement of Net Position 21Statement of Revenue, Expenditures, and Changes in Fund Balances 22–23Reconciliation of the Statement of Revenue, Expenditures, and
Changes in Fund Balances to the Statement of Activities 24Statement of Revenue, Expenditures, and Changes in Fund Balances –
General Fund – Budget and Actual 25
Proprietary Funds
Statement of Net Position 26–29Statement of Revenue, Expenses, and Changes in Net Position 30–31
Statement of Cash Flows 32–35
Notes to Basic Financial Statements 36–74
REQUIRED SUPPLEMENTARY INFORMATION
PERA – General Employees Retirement Fund
Schedule of City’s and Nonemployer Proportionate Share of Net Pension Liability 75
Schedule of City Contributions 75
PERA – Public Employees Police and Fire Fund
Schedule of City’s and Nonemployer Proportionate Share of Net Pension Liability 76
Schedule of City Contributions 76
Golden Valley Fire Department Relief Association
Schedule of Changes in Net Pension Asset and Related Ratios 77
Schedule of City Contributions and Nonemployer Contributing Entities 78
Other Post-Employment Benefits Plan
Schedule of Changes in the City’s Total OPEB Liability and Related Ratios 79
Notes to Required Supplementary Information 80–88
CITY OF GOLDEN VALLEY
HENNEPIN COUNTY, MINNESOTA
Table of Contents
Page
SUPPLEMENTARY INFORMATION
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Nonmajor Governmental Funds 89–90
Combining Balance Sheet 91
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances 92
Nonmajor Special Revenue Funds
Combining Balance Sheet 93–94
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances 95–96
Nonmajor Debt Service Funds
Combining Balance Sheet 97
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances 98
Nonmajor Capital Project Funds
Combining Balance Sheet 99–100
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances 101–102
General Fund
Schedule of Revenue – Budget and Actual 103
Schedule of Expenditures – Budget and Actual 104–105
Internal Service Funds 106
Combining Statement of Net Position 107
Combining Statement of Revenue, Expenses, and Changes in Net Position 108
Combining Statement of Cash Flows 109
OTHER CITY INFORMATION
Schedules of Sources and Uses of Public Funds for Tax Increment Financing Districts
North Wirth Parkway No. 1505 110
Highway 55 West No. 1506 111
Cornerstone Creek No. 1507 112
Winnetka/Medicine Lake (Liberty Crossing) No. 1508 113
STATISTICAL SECTION (UNAUDITED)114
Net Position by Component 115–116
Changes in Net Position 117–120
Governmental Activities Tax Revenues by Source 121
Fund Balances of Governmental Funds 122–123
Changes in Fund Balances of Governmental Funds 124–125
General Governmental Tax Revenues by Source 126
Assessed Value and Estimated Actual Value of Taxable Property 127–128
Property Tax Rates 129
Principal Property Taxpayers 130
Property Tax Levies and Collections 131
Ratios of Outstanding Debt by Type 132–133
Ratios of General Bonded Debt Outstanding 134
Direct and Overlapping Governmental Activities Debt 135
Legal Debt Margin Information 136–137
Pledged Revenue Coverage 138–139
Demographic and Economic Statistics 140
Principal Employers 141
Full-Time Equivalent City Government Employees by Function 142–143
Operating Indicators by Function 144–145
Capital Asset Statistics by Function 146–147
CITY OF GOLDEN VALLEY
HENNEPIN COUNTY, MINNESOTA
Table of Contents (continued)
INTRODUCTORY SECTION
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Term Expires
Shep Harris Mayor 12/31/2023
Maurice Harris Councilmember 12/31/2023
Denise La Mare-Anderson Councilmember 12/31/2025
Gillian Rosenquist Councilmember 12/31/2025
Kimberly Sanberg Councilmember 12/31/2023
Timothy Cruikshank City Manager Appointed
Sue Virnig Finance Director Appointed
Maria Cisneros City Attorney Appointed
Baker Tilly Bond Consultants Appointed
CITY COUNCIL
CITY OFFICIALS
CITY CONSULTANTS
CITY OF GOLDEN VALLEY
HENNEPIN COUNTY, MINNESOTA
City Council and Other Officials
Year Ended December 31, 2022
Community Development Public Works
Police
City Clerk
Organization Chart
Boards and Commissions
Board of Zoning Appeals
Civil Service Commission
Community Services Commission
Diversity, Equity, and Inclusion Commission
Environmental Commission
Open Space & Recreation Commission
Planning Commission
Police Employment, Accountability, &
Community Engagement Commission
City Council/
HRA
Citizens ofGolden Valley
City Manager
Fire
Human Resources Parks & RecreationAdministrativeServices
LegalCommunications
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August 3, 2023
Dear Honorable Mayor, City Council, City Manager, and Residents of Golden Valley:
I am pleased to present the Annual Comprehensive Financial Report (ACFR) of the City of Golden
Valley, Minnesota (the City) for the fiscal year ended December 31, 2022. Responsibility for both the
accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests
with the City. To the best of our knowledge and belief, the enclosed data is accurate, in all material
respects, and is reported in a manner designed to present fairly the financial position and results of
operations of the various funds of the City. All disclosures necessary to enable the reader to gain an
understanding of the City’s financial activities have been included.
The City’s financial statements have been audited by Malloy, Montague, Karnowski, Radosevich & Co.,
P.A., a firm of licensed certified public accountants. The goal of the independent audit was to provide
reasonable assurance that the basic financial statements of the City for the fiscal year ended December 31,
2022, are free of material misstatement. The independent audit involved examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and evaluating the overall financial
statement presentation. The independent auditor concluded, based upon the audit, that there was a
reasonable basis for rendering an unmodified opinion that the City’s basic financial statements for the
fiscal year ended December 31, 2022, are fairly presented in conformity with accounting principles
generally accepted in the United States of America. The independent auditor’s report is presented as the
first component of the financial section of this report.
The preparation of this ACFR is a requirement of state law. Also, the ACFR is required by the bond
rating agencies before they will rate the City’s bonds. The report can be used by the City Council and the
citizens of the City to gain a better understanding of the financial condition of the City.
Accounting principles generally accepted in the United States of America require that management
provide a narrative introduction, overview, and analysis to accompany the basic financial statements in
the form of management’s discussion and analysis (MD&A). This letter of transmittal is designed to
complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found
immediately following the report of the auditors.
The ACFR includes all agencies and entities for which the City is financially accountable, including the
Golden Valley Housing and Redevelopment Authority (HRA), which is reported as a blended component
unit of the City.
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PROFILE OF THE CITY
The City, incorporated in 1886, is an almost fully developed community in Hennepin County. It
encompasses about 10.73 square miles and has an estimated population of 22,034. The City is a Statutory
Plan B form of government, governed by a City Council composed of the mayor and
four councilmembers. The City Council is responsible for setting policies and ordinances that govern the
City and for appointing the city manager and city attorney. The city manager is responsible for carrying
out the policies and hiring the employees that oversee the day-to-day operations of the City.
Police services are provided by a budgeted police force of 31 sworn officers, which includes the police
chief, 2 assistant chiefs, and 7 sergeants. The actual number of sworn officers was less than budgeted in
2022, and hiring efforts continue as the City strives to build the force to the desired level. Fire services are
provided by approximately 50 paid on-call firefighters, fire chief, 2 assistant fire chiefs, and 3 firefighters
that are code enforcement officers. The City has an ISO Class 2 insurance rating.
The 2022–2023 biennial budget was created to help serve as the foundation for the City’s financial
planning and control. Departments submit budget requests to the finance department in May. The
city manager presents the proposed budget to the City Council for review starting in July, to be approved
by September 30 each year, for a proposed tax rate for its property owners. All budget workshops are
open to the public. The final adoption of the budget and levy are approved in December. Each year of the
biennial budget, the first year is adopted and the second year is approved in concept only.
ECONOMIC CONDITION AND OUTLOOK
The City’s top priorities have been maintaining the City’s infrastructure—streets, water and sewer, pipes,
parks, public buildings—representing a significant community investment. After all, the value of private
property relates directly to what surrounds it. The City made significant efforts, with many public
meetings, to plan the Infrastructure Renewal Program that will start in 2026 after the Pavement
Management Program (PMP) ends in 2024. The City’s PMP program was resumed in 2021, after being
delayed in 2020 due to the unrest of COVID-19. The City approved a 10-year Capital Improvement
Program (CIP) in 2022 for the years 2023–2032.
Each year the City reviews potential refundings, if possible, for any debt issuances. The City also tries to
find alternative grants and programs to receive additional monies to lower the General Fund and debt
levies. Cost containment efforts helped keep total overall expenditures under budget in 2022.
The City will once again take a conservative approach for the 2023 budget year.
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The following table shows the City’s building activity for the last 10 years:
Total Permits
Year Number Value
2013 984 $ 65,531,059
2014 1,055 $ 78,090,465
2015 1,118 $ 109,928,275
2016 998 $ 104,651,963
2017 1,144 $ 239,041,991
2018 951 $ 79,654,541
2019 1,024 $ 71,658,716
2020 1,008 $ 39,335,260
2021 1,059 $ 65,111,223
2022 1,042 $ 69,444,953
The following major projects were started or completed throughout the City in 2022:
Residential
• 10 new single-family homes were constructed with a value of $6,292,281.
• 1,024 residential remodels and additions were completed with a total value of $20,623,241.
Commercial
• 88 commercial remodel/addition projects with a total valuation of $42,529,431.
Commercial (Over $1 Million in Value)
2445 Nevada Ave N. Remodel $2,500,000
Vet Hospital New Construction $2,000,000
MN Eye and Retina New Construction $1,950,000
General Mills Remodel $8,170,711
SEA School Remodel $14,218,494
SPIRE Bank New Construction $3,000,000
North Memorial Remodel $1,255,000
Meadowbrook Remodel $1,700,000
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LONG-TERM FINANCIAL PLANNING
An unassigned fund balance goal in the General Fund of 60 percent of current year budgeted General
Fund expenditures was approved in the fund balance policy adopted by the City Council for budgetary
and planning purposes. The City strongly believes maintaining this higher level of fund balance is
prudent, due to its debt load and the increased uncertainty of its revenue sources. This practice is also
supported by the City’s bond rating agency.
In 1995, through its PMP, the City began reconstructing its streets that did not meet standards. At the end
of 2022, the City has completed 116.66 of 120.00 miles. The City is looking forward to finishing the PMP
and beginning the next phase of the Infrastructure Renewal Plan.
The Brookview Facility, completed in December 2017, provided a site for many new programs and
activities, along with the new restaurant and golf area, and has brought many to the City for a delightful
outing. In 2022, Brookview Golf Course revenues were increased due to adding additional lawn bowling
lanes, and a new irrigation system was completed to improve the consistency of golf course conditions.
The City Council assigned 2022 year-end fund balance in the General Fund in the amount of $612,910 for
dedicated construction funds for a remote fire station.
MAJOR INITIATIVES
The City is a member of the Joint Water Commission (JWC), a joint powers organization that also
includes the cities of New Hope and Crystal. The JWC purchases water from the City of Minneapolis for
resale to the customers of the three cities. The JWC was set up in the early 1960s and has functioned
effectively. The JWC has an emergency well backup system and is now working on financing future
capital needs, such as replacing the three water towers, two reservoirs, and a distribution system. A CIP
was approved to plan for the replacements until 2050, along with yearly financing to build reserves for
those expenses.
The City is working with Hennepin County, the cities of Crystal and New Hope, the Bassett Creek
Watershed Management Commission, the Metropolitan Council Environmental Services, and the state of
Minnesota to implement a plan to minimize flood damage in various parts of the City. This project
includes multiple flood storage projects over a long timeframe and may also include structural flood
proofing of a number of homes. The improvements through the last four years, with funding provided by
the City and many outside agencies, has helped further the improvements to reduce the flooding. The
2022–2031 CIP outlines those projects.
The City has a Pyramid of Success. In 2023, Organizational Priorities were: Strategic Development and
Redevelopment, Effective Governance, Infrastructure Maintenance and Enhancement, Financial
Wellness, and Community Affairs. From these priorities come action steps. All make up the core services,
mission, and vision for the City. Financial Wellness includes making progress on Legislative Priorities,
Bonding for Remote Fire Station, and Local Government Aid Reform. In 2022, the City Council
prioritized projects, issues, and ideas in relationship to needs and wants and the financial cost to the City
and community. Each year, the City Council reviews the Pyramid of Success.
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INTERNAL CONTROL
Management assumes full responsibility for the completeness and reliability of the information contained
in this report, based upon the comprehensive framework of internal control that it has established for this
purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to
provide reasonable, rather than absolute, assurance that the financial statements are free of any material
misstatements.
AWARDS AND ACKNOWLEDGEMENTS
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the City for its ACFR for the fiscal year ended December 31, 2021.
The City has received this award since 1987. In order to be awarded a Certificate of Achievement, the
government had to publish an easily readable and efficiently organized ACFR that satisfied both
accounting principles generally accepted in the United States of America and applicable legal
requirements. The Certificate of Achievement is valid for one year only. We believe our current ACFR
continues to meet the Certificate of Achievement program requirements. We are submitting it to the
GFOA to determine its eligibility for another certificate.
The 2022 ACFR meets the highest professional standards and was prepared in a timely and cost-effective
manner. This could never have been accomplished without the excellent work of our finance department.
Jennifer Hoffman, Analeigh Moser, and Aaron Gilbert have helped with the work needed to finish this
report. Credit also must be given to the Mayor and City Council for their support, and for maintaining the
highest standards of professionalism in the management of the City’s finances.
Yours truly,
Susan M. Virnig
Finance Director
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Golden Valley
Minnesota
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
December 31, 2021
Executive Director/CEO
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FINANCIAL SECTION
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INDEPENDENT AUDITOR’S REPORT
To the City Council and Management
City of Golden Valley, Minnesota
OPINIONS
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 Golden Valley,
Minnesota (the City) as of and for the year ended December 31, 2022, and the related notes to the
financial statements, which collectively comprise the City’s basic financial statements as listed in the
table of contents.
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 as of December 31, 2022, and the respective
changes in financial position and, where applicable, cash flows thereof, and the budgetary comparison for
the General Fund for the year then ended, in accordance with accounting principles generally accepted in
the United States of America.
BASIS FOR OPINIONS
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are required to be independent of the City and to meet our other ethical responsibilities in
accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
RESPONSIBILITIES OF MANAGEMENT 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; and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a
going concern for 12 months beyond the financial statements date, including any currently known
information that may raise substantial doubt shortly thereafter.
(continued)
C E R T I F I E D
A C C O U N T A N T S
P UBLIC
PRINCIPALS
Thomas A. Karnowski, CPA
Paul A. Radosevich, CPA
William J. Lauer, CPA
James H. Eichten, CPA
Aaron J. Nielsen, CPA
Victoria L. Holinka, CPA/CMA
Jaclyn M. Huegel, CPA
Kalen T. Karnowski, CPA
Malloy, Montague, Karnowski, Radosevich & Co., P.A.
5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com
Standard Letterhead-r2.qxp_167639 Letterhead-RV1 9/7/18 6:34 PM Page 1
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AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinions. Reasonable assurance is a high level of assurance, but is not absolute assurance
and, therefore, is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgement made by a reasonable user based on
the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is
expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable
period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control related
matters that we identified during the audit.
REQUIRED SUPPLEMENTARY INFORMATION
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis and the required supplementary information (RSI), as listed in the table of
contents, be presented to supplement the basic financial statements. Such information is the responsibility
of management and, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the RSI 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.
(continued)
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SUPPLEMENTARY INFORMATION
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The accompanying supplementary information, as listed in
the table of contents, is presented for purpose of additional analysis and is not a required part of the basic
financial statements. Such information is the responsibility of management and was derived from, and
relates directly to, the underlying accounting and other records used to prepare the basic financial
statements. The information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance
with auditing standards generally accepted in the United States of America. In our opinion, the
supplementary information is fairly stated, in all material respects, in relation to the basic financial
statements as a whole.
OTHER INFORMATION
Management is responsible for the other information included in the annual report. The other information
comprises the introductory and statistical sections, but does not include the basic financial statements and
our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other
information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If, based
on the work performed, we conclude that an uncorrected material misstatement of the other information
exists, we are required to describe it in our report.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated August 3, 2023
on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, 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’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’s internal
control over financial reporting and compliance.
Minneapolis, Minnesota
August 3, 2023
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CITY OF GOLDEN VALLEY
Management’s Discussion and Analysis
Year Ended December 31, 2022
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As management of the City of Golden Valley, Minnesota (the City), we have provided readers of the
City’s financial statements with this narrative overview and analysis of the financial activities of the City
for the fiscal year ended December 31, 2022. We encourage readers to consider the information presented
here in conjunction with additional information that we have furnished in our letter of transmittal, located
earlier in this report.
FINANCIAL HIGHLIGHTS
• The assets and deferred outflows of resources of the City exceeded its liabilities and deferred
inflows of resources at the close of fiscal 2022 by $161,538,250 (net position). The City’s
government-wide net position increased $7,469,211 in 2022, including increases of $4,284,667
and $3,184,544, attributable to its governmental and business-type activities, respectively. At
year-end, the City reported positive balances in total net position and all net position categories
for both the governmental and business-type activities, as was the case at the prior year-end.
• At the end of the 2022 fiscal year, the City’s governmental funds reported combined ending fund
balances of $54,182,470, an increase of $3,026,340 compared to the prior year-end.
• The unassigned fund balance for the City’s General Fund was $14,711,433 at year-end, which
represents 62.4 percent of 2022 General Fund expenditures and transfers out.
• The City’s long-term bonded debt decreased $1,295,000 in 2022, excluding unamortized
premiums, as the City issued $3,895,000 of general obligation (G.O.) special assessment bonds in
2022, while making scheduled principal payments of $5,190,000.
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 basic financial statements. This report also contains other
supplementary information, in addition to the basic financial statements.
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 private sector
businesses.
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 the City’s 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
(delinquent taxes and special assessments).
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Both of the government-wide financial statements distinguish functions of the City that are principally
supported by property 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 include general government, public safety,
community development, public works, and parks and recreation. The business-type activities of the City
include enterprises for water and sewer, storm sewer, golf course, motor vehicle licensing, and recycling.
The government-wide financial statements include not only the City itself (known as the primary
government), but also the Golden Valley Housing and Redevelopment Authority (HRA). The HRA is a
legally separate entity, which functions, in essence, as a department of the City, to provide housing and
redevelopment assistance through the administration of various programs. Therefore, the HRA has been
included as a blended component unit within the City’s financial statements.
Fund Financial Statements – A fund is a grouping of related accounts that is used to maintain control
over resources segregated for specific activities or objectives. The City, like other local governments, uses
fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the
funds of the City can be divided into two categories: governmental funds and proprietary funds.
Governmental Funds – Governmental funds account for essentially the same functions reported as
governmental activities in the government-wide financial statements. Unlike the government-wide
financial statements, however, governmental fund financial statements focus on near-term inflows and
outflows of spendable resources, and the balances of spendable resources available at the fiscal year-end.
Such information may be useful in evaluating a government’s near-term financing 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 government’s near-term financing
decisions. Both the governmental funds Balance Sheet and Statement of Revenue, Expenditures, and
Changes in Fund Balances provide a reconciliation to facilitate the comparison between governmental
funds and governmental activities.
The City reports a number of individual governmental funds. Information is presented separately in the
basic financial statements for the General, American Recovery Plan Act Special Revenue, Street
Reconstruction Debt Service, State Aid Construction Capital Project, Street Reconstruction Capital
Project, and Winnetka/Medicine Lake Tax Increment Capital Project funds, which are considered major
funds. Data from the other nonmajor governmental funds is combined into a single, aggregated
presentation. Individual fund data for each of the 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. A budget-to-actual comparison is provided in this financial report for this fund.
Proprietary Funds – The City maintains two different types of proprietary funds. Enterprise funds are
used to report the same functions presented as business-type activities in the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate information
for the City’s water and sewer, storm sewer, golf course, motor vehicle licensing, and recycling enterprise
operations, all of which are reported as major funds of the City.
Internal service funds are used to accumulate and allocate costs internally among the City’s various
functions. The City uses internal service funds to account for workers’ compensation, payroll benefits,
and vehicle maintenance activities. Because these internal service fund activities predominantly benefit
governmental rather than business-type functions, they have been included within governmental activities
in the government-wide financial statements. The internal service funds are combined into a single,
aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal
service funds is provided in the form of combining statements elsewhere in this report.
-6-
Notes to Basic Financial Statements – The notes to basic financial statements provide additional
information that is essential to a full understanding of the data provided in the government-wide and fund
financial statements.
Other Information – Required supplementary information (RSI) on the City’s other post-employment
benefits (OPEB) and pension plans is presented following the notes to basic financial statements.
Combining and individual fund statements and schedules for nonmajor funds, along with other city
information, are presented as supplementary information immediately following the RSI. Statistical tables
are presented as the last section in this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, changes in net position may serve over time as a useful indicator of the City’s financial
condition. The City’s assets and deferred outflows of resources exceeded its liabilities and deferred
inflows of resources by $161,538,250 at the end of the 2022 fiscal year, which represents an increase in
overall net position of $7,469,211 from current year operations.
Net Position – The City has 49.1 percent of its total net position invested in capital assets (land, land
improvements, buildings and improvements, machinery and equipment, infrastructure, and construction in
progress) less any related debt used to acquire those assets that is still outstanding. The City uses these
capital assets to provide services to citizens; consequently, these assets are not available for future
spending. Although the City’s investment in its capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources, since the capital
assets themselves cannot liquidate these liabilities. An additional 19.2 percent of the City’s net position
represents resources that are subject to external restrictions on how they may be used. The remaining
31.7 percent of net position is unrestricted and may be used to meet the City’s ongoing obligations.
The following is a summary of the City’s net position at the end of the last two fiscal years:
2022 2021 2022 2021 2022 2021
Current and other assets 73,453,137$ 68,566,611$ 32,759,835$ 33,241,908$ 106,212,972$ 101,808,519$
Capital assets 92,125,501 91,646,625 47,920,083 43,121,197 140,045,584 134,767,822
Total assets 165,578,638 160,213,236 80,679,918 76,363,105 246,258,556 236,576,341
Deferred outflows of resources 13,633,387 8,769,034 – – 13,633,387 8,769,034
Long-term liabilities
(including current portion)84,375,230 70,552,188 2,244,403 2,371,460 86,619,633 72,923,648
Other liabilities 6,096,019 4,914,729 2,172,572 913,246 8,268,591 5,827,975
Total liabilities 90,471,249 75,466,917 4,416,975 3,284,706 94,888,224 78,751,623
Deferred inflows of resources 3,465,469 12,524,713 – – 3,465,469 12,524,713
Net position
Net investment in capital assets 33,605,654 32,036,524 45,675,680 40,749,737 79,281,334 72,786,261
Restricted 31,050,961 29,277,763 – – 31,050,961 29,277,763
Unrestricted 20,618,692 19,676,353 30,587,263 32,328,662 51,205,955 52,005,015
Total net position 85,275,307$ 80,990,640$ 76,262,943$ 73,078,399$ 161,538,250$ 154,069,039$
Governmental Activities Business-Type Activities Total
The increase in current and other assets was mainly in cash and temporary investments, primarily due to
positive operating results for the current year. Changes in the City’s proportionate share of two state-wide
pension plans and the City’s OPEB Plan contributed to the changes in deferred outflows/inflows of
resources and long-term liabilities.
-7-
The following is a summary of the City’s changes in net position for the last two fiscal years:
2022 2021 2022 2021 2022 2021
Revenues
Program revenues
Charges for services 3,338,096$ 2,676,798$ 20,412,518$ 18,541,697$ 23,750,614$ 21,218,495$
Operating grants and contributions 871,950 888,261 388,508 34,261 1,260,458 922,522
Capital grants and contributions 3,698,737 3,478,561 215,747 – 3,914,484 3,478,561
General revenues
Property taxes 29,565,166 27,352,013 – – 29,565,166 27,352,013
Franchise taxes 796,783 772,266 1,500,000 1,500,000 2,296,783 2,272,266
Unrestricted grants and contributions 239,785 16,398 – – 239,785 16,398
Other general revenues 114,781 80,706 – – 114,781 80,706
Investment earnings (charges)(1,789,925) (204,549) (1,079,414) (50,826) (2,869,339) (255,375)
Gain on sale of capital assets 89,687 121,369 – – 89,687 121,369
Total revenues 36,925,060 35,181,823 21,437,359 20,025,132 58,362,419 55,206,955
Expenses
General government 5,359,991 3,788,382 – – 5,359,991 3,788,382
Public safety 8,919,678 8,089,691 – – 8,919,678 8,089,691
Community development 3,014,245 1,903,327 – – 3,014,245 1,903,327
Public works 11,003,765 10,477,892 – – 11,003,765 10,477,892
Parks and recreation 2,764,425 2,067,373 – – 2,764,425 2,067,373
Interest and fiscal charges 1,608,289 1,587,120 – – 1,608,289 1,587,120
Water and sewer – – 10,222,237 9,643,763 10,222,237 9,643,763
Storm sewer – – 2,270,408 1,968,509 2,270,408 1,968,509
Golf course – – 4,096,568 3,185,361 4,096,568 3,185,361
Motor vehicle licensing – – 573,795 443,418 573,795 443,418
Recycling – – 1,059,807 526,822 1,059,807 526,822
Total expenses 32,670,393 27,913,785 18,222,815 15,767,873 50,893,208 43,681,658
Change in net position
before transfers 4,254,667 7,268,038 3,214,544 4,257,259 7,469,211 11,525,297
Transfers 30,000 (202,185) (30,000) 202,185 – –
Change in net position 4,284,667 7,065,853 3,184,544 4,459,444 7,469,211 11,525,297
Net position
Beginning 80,990,640 73,924,787 73,078,399 68,618,955 154,069,039 142,543,742
Ending 85,275,307$ 80,990,640$ 76,262,943$ 73,078,399$ 161,538,250$ 154,069,039$
TotalGovernmental Activities Business-Type Activities
Governmental Activities – Governmental activities net position increased by $4,284,667. Key elements
of this net increase include:
• Charges for services increased $661,298 from the prior year, mainly due to increased activity at
the Brookview Community Center and the City’s park and recreation programs.
• Property taxes increased $2,213,153 from the prior year, due to an increase in the adopted levy.
• Investment earnings (charges) were $1,585,376 lower than last year, due to declines in the
fair value of the City’s investment portfolio.
• Governmental activities expenses increased $4,756,608 (17.0 percent) overall, with the increase
spread across all functions. Increases in pension and OPEB costs, HRA and other community
development activity, park and recreation program participation, and normal inflationary
increases contributed to this overall increase.
-8-
The following graphs provide additional information related to governmental activity revenues and
expenses for the current year:
Expenses and Program Revenues – Governmental Activities
$–
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
$11,000,000
$12,000,000
General
Government
Public Safety Community
Development
Public Works Parks and
Recreation
Interest and
Fiscal Charges
Expenses Program Revenues
Revenue by Source – Governmental Activities
-9-
Business-Type Activities – Business-type activities net position increased by $3,184,544. Key elements
of this net increase include:
• Charges for services increased $1,870,821, with increases in all functional areas.
o Water and sewer charges increased, due to higher rates and continued high water
consumption for irrigation.
o Storm sewer charges were also higher than last year, due to a rate increase.
o Charges for recycling services increased by $539,081 from last year, due to a new
organics recycling program started in 2022.
o Both the Brookview golf course and grill facility and the motor vehicle licensing
operation generated increased revenues as these operations continued to rebound from the
impact of COVID-19-related restrictions.
• Operating grants were $354,247 higher than last year, mainly due to the utilization of an available
state flood damage grant and a small portion of the City’s American Rescue Plan Act funding in
2022.
• Capital grants were $215,747 higher than last year, due to capital contributions received from
developers.
• Investment earnings (charges) were $1,028,588 lower than the prior year, due to declines in the
fair value of the City’s pooled investment portfolio.
• Business-type activities expenses were $2,454,942 (15.6 percent) higher than the previous year in
total, including the following changes:
o An increase of $578,474 in water and sewer utility costs, primarily from increased water
purchases for irrigation, due to a drier year.
o An increase of $911,207 in golf course expenses, mainly due to increased operating costs
at the grill facility.
o An increase of $532,985 in recycling program costs, mainly related to the new organics
recycling program.
-10-
The following graphs provide additional information related to business-type activity revenues and
expenses for the current year:
Expenses and Program Revenues – Business-Type Activities
$–
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
$11,000,000
$12,000,000
$13,000,000
Water and Sewer Storm Sewer Brookview Golf
Course
Motor Vehicle
Licensing
Recycling
Expenses Program Revenues
Revenue by Source – Business-Type Activities
-11-
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
Governmental Funds – At the end of the fiscal year, the City’s governmental funds reported combined
ending fund balances of $54,182,470, an increase of $3,026,340 in comparison with the prior year. The
unassigned portion of fund balance is $14,682,455, which may be used for any approved public purpose.
The remainder of the fund balance is either: 1) not in spendable form ($67,927), 2) restricted by various
externally imposed constraints ($24,286,876), 3) internally committed for particular purposes ($169,113),
or 4) internally assigned for particular purposes ($14,976,099).
General Fund – The fund balance of the General Fund increased by $1,778,411 to $17,333,319 at
December 31, 2022. The main reason for this increase was actual expenditures coming in $1,871,386
under budget, mainly due to unfilled positions in the City’s police department. General Fund operating
results can be summarized as follows:
2022 2021
Fund balance – beginning of year 15,554,908$ 17,677,049$
Additions
Revenue 25,324,615 23,511,687
Other sources 30,000 30,000
Total additions 25,354,615 23,541,687
Deductions
Expenditures 20,826,204 19,496,248
Other uses 2,750,000 6,167,580
Total deductions 23,576,204 25,663,828
Fund balance – end of year 17,333,319$ 15,554,908$
Of the total fund balance, $8,976 is nonspendable for prepaids. The City has assigned fund balances of
$2,000,000 for self-insurance to finance the potential risk related to insurance deductibles or settlements
in excess of commercial insurance limits, and $612,910 to finance future land acquisition and other costs
for a new remote fire station.
The unassigned fund balance at December 31, 2022 of $14,711,433 is equal to 62.4 percent of total
2022 expenditures and other financing uses in the General Fund, which puts the fund in an excellent
financial position. These reserves are needed for working capital to help pay for expenditures during the
first half of the year, since the City does not receive any significant money from its main revenue
source—property taxes—until July of each year.
General Fund revenue was $25,324,615 in 2022, an increase of $1,812,928 from the previous year. The
increase was primarily attributable to a $1,914,853 increase in property tax revenue, along with smaller
increases in revenues from building permits, intergovernmental grants, and recreation program charges.
These increases were partially offset by a $449,165 decrease in investment income (charges) caused by
the investment fair value declines as previously discussed.
General Fund 2022 expenditures of $20,826,204 represented an increase of $1,326,956 from the prior
year. The largest expenditure increases were in the general government, public works, and parks and
recreation program areas. Higher costs for legal services, fire department personnel and supplies, building
inspections, street and park maintenance, and recreation program personnel and supplies contributed to
the overall increase.
-12-
The General Fund budget for the 2022 fiscal year was not amended.
The following is an analysis of 2022 General Fund revenue compared to budget:
Original Final Over (Under)
Revenue Budget Budget Actual Final Budget
Ad valorem taxes 22,116,855$ 22,116,855$ 22,207,999$ 91,144$ 0.4 %
Licenses 244,165 244,165 250,102 5,937 2.4
Permits 963,650 963,650 1,592,132 628,482 65.2
Intergovernmental 171,800 171,800 154,084 (17,716) (10.3)
Charges for services 1,471,500 1,471,500 1,343,314 (128,186) (8.7)
Fines and forfeits 125,000 125,000 81,852 (43,148) (34.5)
Investment income 150,000 150,000 (512,471) (662,471) (441.6)
Other revenue 174,620 174,620 207,603 32,983 18.9
Totals 25,417,590$ 25,417,590$ 25,324,615$ (92,975)$ (0.4)
(Under) Budget
Percent Over
Permits were over budget, due to increased development-related activity in the City. Charges for services
were under budget, mainly in the parks and recreation area, as participation in recreation programs have
rebounded post-COVID, but have not yet returned to typical levels. Investment income (charges) were
under budget, due to less favorable market conditions than anticipated.
The following is an analysis of 2022 General Fund expenditures compared to budget:
Original Final Over (Under)
Expenditure Budget Budget Actual Final Budget
General government 2,172,080$ 2,172,080$ 2,159,937$ (12,143)$ (0.6) %
Administrative services 2,573,030 2,573,030 2,424,296 (148,734) (5.8)
Casualty insurance 355,000 355,000 277,610 (77,390) (21.8)
Public safety 9,021,740 9,021,740 7,602,986 (1,418,754) (15.7)
Community development 2,475,330 2,475,330 2,169,560 (305,770) (12.4)
Public works 4,743,415 4,743,415 4,946,265 202,850 4.3
Parks and recreation 1,356,995 1,356,995 1,245,550 (111,445) (8.2)
Totals 22,697,590$ 22,697,590$ 20,826,204$ (1,871,386)$ (8.2)
(Under) Budget
Percent Over
Public safety expenditures were significantly under budget, due to personal service cost savings from
unfilled positions. Community development expenditures were under budget, due primarily to more
engineering personnel costs being charged out to capital projects than anticipated. Public works
expenditures exceeded budget as building, street, and park maintenance costs all increased more than
anticipated. Parks and recreation expenditures were under budget, despite increasing substantially from
last year, due to some unfilled seasonal positions and recreation program participation still not fully
recovering to pre-COVID levels.
-13-
Other Major Governmental Funds – The City reported five other major governmental funds for 2022.
The American Rescue Plan Act (ARPA) Special Revenue Fund is used to account for federal funds
allocated to the City under the ARPA. Fund balance in this fund increased $29,388 in 2022, due to
interest earned on ARPA funds held by the City. At year-end, the City has $1,706,233 of unspent ARPA
funds and accumulated interest earnings available for planned future projects.
The Street Reconstruction Debt Service Fund is used to account for the debt service on the G.O.
improvement bonds issued to finance street improvements. At year-end, this fund had a fund balance of
$9,987,005 accumulated for future debt service. Fund balance increased by $256,862 in 2022, as revenue
from property taxes and special assessments exceeded current year debt service expenditures.
The State Aid Construction Capital Project Fund is used to account for street construction projects that
qualify for municipal state aid. Fund balance increased $571,883 in 2022, ending the year at $4,358,667,
as current year project expenditures were minor with larger projects planned for the near future.
The Street Reconstruction Capital Project Fund is used to account for the City’s ongoing Pavement
Management Program (PMP). The City financing planned 2022 PMP construction with a $3.9 million
bond issue and a transfer of $700,000 from the General Fund. Fund balance increased $416,440 during
the year, leaving a fund balance of $6,662,843 at year-end.
The Winnetka/Medicine Lake Tax Increment Capital Project Fund ended the year with a fund balance
deficit of $28,978. Fund balance improved by $717,940 in 2022, as tax increment revenue exceeded the
interest paid on interfund loans. The deficit is expected to be eliminated through future tax increment
collections.
The City’s remaining nonmajor governmental funds ended the year with cumulative fund balances of
$15,840,181, a decrease of $744,584 from the previous year-end, mainly due to capital improvement
project expenditures financed with resources accumulated in previous years.
Proprietary Funds – The City’s proprietary funds provide the same information for the business-type
activities found in the government-wide financial statements, but in more detail.
The City’s enterprise funds had a total net position of $78,416,692 at year-end, of which $32,741,012 was
unrestricted. The total net position of these funds improved by $3,423,040 during 2022.
Utility Fund net position increased $2,737,968, due to operating income of $1,616,370 and the allocation
of $1,500,000 of franchise taxes to this fund in 2022.
Storm Sewer Utility Fund net position increased $306,131, due to operating income of $573,548 during
the year.
The Brookview Operating (Golf Course) Fund had an increase in net position of $357,712, due to
operating income of $420,757 for 2022. Golf course operating revenue for 2022 increased $448,919 from
the previous year, as the clubhouse grill facility and other amenities continue to see increased usage
post-COVID.
The Motor Vehicle Operating Fund had a decrease in net position of $13,601, as operations continue to
slowly recover from COVID-19-related closures and limitations, and the budgeted transfer to the General
Fund was not reduced.
The Recycling Fund had an increase in net position of $34,830 for the year. Operating revenue and
expenses both increased substantially, due to the new organics recycling program added in 2022.
-14-
CAPITAL ASSETS AND LONG-TERM LIABILITIES
Capital Assets – The City’s investment in capital assets (net of accumulated depreciation) for its
governmental and business-type activities as of December 31, 2022 was $140,045,584, an increase of
$5,277,762 from the prior year. The City’s capital assets for the last two years are as follows:
2022 2021 2022 2021 2022 2021
Land 3,527,685$ 3,527,685$ 993,912$ 903,043$ 4,521,597$ 4,430,728$
Land improvements 8,203,678 8,001,061 3,370,258 3,356,022 11,573,936 11,357,083
Buildings and improvements 29,316,336 29,267,959 808,625 808,625 30,124,961 30,076,584
Machinery and equipment 17,706,469 17,058,832 5,336,285 5,078,164 23,042,754 22,136,996
Infrastructure 146,403,581 133,120,578 61,490,776 57,604,886 207,894,357 190,725,464
Construction in progress 8,208,470 14,737,620 7,874,495 5,516,547 16,082,965 20,254,167
Less accumulated
depreciation (121,240,718) (114,067,110) (31,954,268) (30,146,090) (153,194,986) (144,213,200)
Net total 92,125,501$ 91,646,625$ 47,920,083$ 43,121,197$ 140,045,584$ 134,767,822$
Governmental Activities Business-Type Activities Total
The City’s capital assets before depreciation increased by $14,259,548 during 2022, mainly in
construction in progress on street, utility, and storm sewer infrastructure projects, and construction on an
irrigation system improvement project at the golf course. This increase was partially offset by an
$8,981,786 increase in accumulated depreciation. Additional details of the City’s capital asset activity for
the year can be found in Note 4 of the notes to basic financial statements.
Long-Term Liabilities – The debt service funds account for the accumulation of resources to finance all
of the City’s governmental activity G.O. debt. The revenue sources for these funds include annual tax
levies, tax increments, franchise taxes, and special assessments. At year-end, there was $11,735,049 of
fund balance restricted for debt service in the governmental funds. The revenue bonds will be paid from
the designated business activity of the Storm Sewer Utility Fund. The following table presents the City’s
long-term liabilities as of the last two year-ends:
2022 2021 2022 2021 2022 2021
G.O. special assessment bonds 36,355,000$ 36,300,000$ –$ –$ 36,355,000$ 36,300,000$
G.O. street reconstruction bonds 4,475,000 4,715,000 – – 4,475,000 4,715,000
HRA lease revenue bonds 14,215,000 14,925,000 – – 14,215,000 14,925,000
G.O. tax increment bonds 790,000 915,000 – – 790,000 915,000
G.O. state aid street bonds 835,000 985,000 – – 835,000 985,000
Revenue bonds – – 2,215,000 2,340,000 2,215,000 2,340,000
Unamortized premiums 1,849,847 1,800,991 29,403 31,460 1,879,250 1,832,451
Compensated absences 1,609,482 1,636,179 – – 1,609,482 1,636,179
Net pension liability – PERA 21,200,462 7,401,796 – – 21,200,462 7,401,796
Total OPEB liability 3,045,439 1,873,222 – – 3,045,439 1,873,222
Total 84,375,230$ 70,552,188$ 2,244,403$ 2,371,460$ 86,619,633$ 72,923,648$
TotalGovernmental Activities Business-Type Activities
The City issued $3,895,000 of new G.O. special assessment debt in 2022 and made scheduled debt
principal payments of $5,190,000 during the year. Additional details of long-term liabilities activity for
the year can be found in Note 5 of the notes to basic financial statements.
-15-
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
Economic factors affect the preparation of annual budgets. The following factors were considered in
preparing the 2023 budget:
• The City’s 2023 budgeted tax levy went up by 11.3 percent from 2022. The City strives for a
balanced budget with revenues equal to expenditures.
• The City will maintain fund balance for working capital in the General Fund at 60.0 percent of
the current year’s adopted expenditures, including year-end unassigned fund balance and the
$2,000,000 assigned for self-insurance to meet that goal.
• The City assigned fund balance of $612,910 for expenditures to help fund the construction of a
new remote fire station.
• The City’s 2023 housing and redevelopment budget increased its housing levy by $31,000 to fund
some housing and economic development initiatives for affordable housing.
REQUESTS FOR INFORMATION
Questions concerning any of the information provided in this report or requests for additional information
should be addressed by writing to the City of Golden Valley, Attention: Finance Director, 7800 Golden
Valley Road, Golden Valley, Minnesota 55427 or by calling (763) 593-8010.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
THIS PAGE INTENTIONALLY LEFT BLANK
Governmental Business-Type
Activities Activities Total
Assets
Cash and temporary investments 61,965,841$ 30,741,203$ 92,707,044$
Delinquent taxes receivable 182,865 – 182,865
Special assessments receivable (net of allowance)2,957,291 326,230 3,283,521
Accounts and interest receivable 1,047,733 2,493,161 3,540,894
Due from other governmental units 2,693,367 87,202 2,780,569
Internal balances 1,296,855 (1,296,855) –
Inventory 113,228 29,976 143,204
Prepaids 67,927 378,918 446,845
Net pension asset – fire relief 3,128,030 – 3,128,030
Capital assets
Not depreciated 11,736,155 8,868,407 20,604,562
Depreciated, net of accumulated depreciation 80,389,346 39,051,676 119,441,022
Total assets 165,578,638 80,679,918 246,258,556
Deferred outflows of resources
Pension plan deferments – PERA 11,477,064 – 11,477,064
Pension plan deferments – fire relief 357,857 – 357,857
OPEB plan deferments 1,798,466 – 1,798,466
Total deferred outflows of resources 13,633,387 – 13,633,387
Total assets and deferred outflows of resources 179,212,025$ 80,679,918$ 259,891,943$
Liabilities
Accounts and contracts payable 652,715$ 941,770$ 1,594,485$
Accrued interest payable 691,126 23,418 714,544
Accrued salaries and employee benefits 915,231 – 915,231
Due to other governmental units 77,762 340,167 417,929
Deposits 2,082,385 867,217 2,949,602
Unearned revenue 1,676,800 – 1,676,800
Long-term liabilities
Due within one year 6,667,391 125,000 6,792,391
Due in more than one year 77,707,839 2,119,403 79,827,242
Total liabilities 90,471,249 4,416,975 94,888,224
Deferred inflows of resources
Pension plan deferments – PERA 1,119,451 – 1,119,451
Pension plan deferments – fire relief 1,500,586 – 1,500,586
OPEB plan deferments 845,432 – 845,432
Total deferred inflows of resources 3,465,469 – 3,465,469
Net position
Net investment in capital assets 33,605,654 45,675,680 79,281,334
Restricted for
Debt service 13,671,255 – 13,671,255
Redevelopment 1,059,483 – 1,059,483
Capital improvements 13,988,159 – 13,988,159
Fire relief pensions 1,985,301 – 1,985,301
Other purposes 346,763 – 346,763
Unrestricted 20,618,692 30,587,263 51,205,955
Total net position 85,275,307 76,262,943 161,538,250
Total liabilities, deferred inflows of resources, and net position 179,212,025$ 80,679,918$ 259,891,943$
CITY OF GOLDEN VALLEY
Statement of Net Position
December 31, 2022
See notes to basic financial statements -16-
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Governmental activities
General government 5,359,991$ 208,323$ 79,651$ –$
Public safety 8,919,678 253,437 643,209 –
Community development 3,014,245 1,734,969 – –
Public works 11,003,765 366,854 – 3,022,408
Parks and recreation 2,764,425 774,513 149,090 676,329
Interest and fiscal charges 1,608,289 – – –
Total governmental activities 32,670,393 3,338,096 871,950 3,698,737
Business-type activities
Water and sewer 10,222,237 11,802,888 – 173,728
Storm sewer 2,270,408 2,775,129 143,577 42,019
Golf course 4,096,568 4,376,050 980 –
Motor vehicle licensing 573,795 418,035 142,935 –
Recycling 1,059,807 1,040,416 101,016 –
Total business-type activities 18,222,815 20,412,518 388,508 215,747
Total governmental and
business-type activities 50,893,208$ 23,750,614$ 1,260,458$ 3,914,484$
General revenues
Property taxes
Franchise taxes
Unrestricted grants and contributions
Other general revenues
Investment earnings (charges)
Gain on sale of capital assets
Transfers – internal activities
Total general revenues and transfers
Change in net position
Net position – beginning
Net position – ending
Program Revenues
CITY OF GOLDEN VALLEY
Statement of Activities
Year Ended December 31, 2022
See notes to basic financial statements -17-
Governmental Business-Type
Activities Activities Total
(5,072,017)$ –$ (5,072,017)$
(8,023,032) – (8,023,032)
(1,279,276) – (1,279,276)
(7,614,503) – (7,614,503)
(1,164,493) – (1,164,493)
(1,608,289) – (1,608,289)
(24,761,610) – (24,761,610)
– 1,754,379 1,754,379
– 690,317 690,317
– 280,462 280,462
– (12,825) (12,825)
– 81,625 81,625
– 2,793,958 2,793,958
(24,761,610) 2,793,958 (21,967,652)
29,565,166 – 29,565,166
796,783 1,500,000 2,296,783
239,785 – 239,785
114,781 – 114,781
(1,789,925) (1,079,414) (2,869,339)
89,687 – 89,687
30,000 (30,000) –
29,046,277 390,586 29,436,863
4,284,667 3,184,544 7,469,211
80,990,640 73,078,399 154,069,039
85,275,307$ 76,262,943$ 161,538,250$
Revenue and Changes in Net Position
Net (Expenses)
-18-
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FUND FINANCIAL STATEMENTS
American
Rescue Street
Plan Act Reconstruction
General Special Revenue Debt Service
Assets
Cash and temporary investments 19,401,536$ 1,706,233$ 9,988,105$
Receivables
Delinquent taxes 182,865 – –
Special assessments 2,973 – 2,477,447
Accounts 61,652 – –
Accrued interest 268,687 – –
Due from other funds – – –
Advances to other funds – – –
Due from other governmental units 176,595 – –
Prepaids 8,976 – –
Total assets 20,103,284$ 1,706,233$ 12,465,552$
Liabilities
Accounts payable 292,841$ –$ –$
Contracts payable – – –
Accrued salaries payable 915,231 – –
Due to other governmental units 46,585 – –
Deposits 1,329,470 – 1,100
Unearned revenue – 1,676,800 –
Due to other funds – – –
Advances from other funds – – –
Total liabilities 2,584,127 1,676,800 1,100
Deferred inflows of resources
Unavailable revenue – property taxes 182,865 – –
Unavailable revenue – special assessments 2,973 – 2,477,447
Unavailable revenue – long-term receivables – – –
Total deferred inflows of resources 185,838 – 2,477,447
Fund balances (deficits)
Nonspendable 8,976 – –
Restricted – 29,433 9,987,005
Committed – – –
Assigned 2,612,910 – –
Unassigned 14,711,433 – –
Total fund balances (deficits)17,333,319 29,433 9,987,005
Total liabilities, deferred inflows of
resources, and fund balances 20,103,284$ 1,706,233$ 12,465,552$
CITY OF GOLDEN VALLEY
Balance Sheet
Governmental Funds
December 31, 2022
See notes to basic financial statements -19-
Winnetka/
State Aid Street Medicine Lake
Construction Reconstruction Tax Increment
Capital Project Capital Project Capital Project Nonmajor Totals
4,359,126$ 6,291,130$ 1,370,256$ 16,006,946$ 59,123,332$
– – – – 182,865
248,611 10,815 – 217,445 2,957,291
– 580,419 – 130,501 772,572
– – – – 268,687
– – – 182,340 182,340
– – – 360,000 360,000
2,515,592 – – 1,180 2,693,367
– 57,870 – 1,081 67,927
7,123,329$ 6,940,234$ 1,370,256$ 16,899,493$ 66,608,381$
459$ 67,040$ –$ 77,652$ 437,992$
– 169,411 – 33,355 202,766
– – – – 915,231
– – – 31,048 77,633
– 30,125 – 699,812 2,060,507
– – – – 1,676,800
– – 251,570 – 251,570
– – 1,147,664 – 1,147,664
459 266,576 1,399,234 841,867 6,770,163
– – – – 182,865
248,611 10,815 – 217,445 2,957,291
2,515,592 – – – 2,515,592
2,764,203 10,815 – 217,445 5,655,748
– 57,870 – 1,081 67,927
3,995,039 5,622,279 – 4,653,120 24,286,876
– – – 169,113 169,113
363,628 982,694 – 11,016,867 14,976,099
– – (28,978) – 14,682,455
4,358,667 6,662,843 (28,978) 15,840,181 54,182,470
7,123,329$ 6,940,234$ 1,370,256$ 16,899,493$ 66,608,381$
-20-
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Total fund balances – governmental funds 54,182,470$
Capital assets used in governmental activities are not financial resources and,therefore,are not
reported as assets in governmental funds.
Cost of capital assets 213,102,248
Less accumulated depreciation (120,991,757)
Long-term liabilities,including bonds and certifications of indebtedness payable,are not due or
payable in the current period and,therefore,are not reported as liabilities in governmental funds.
Long-term liabilities at year-end consist of:
Bonds and certificates of indebtedness payable (56,670,000)
Certain receivables (including delinquent taxes,special assessments,and other receivables not
collected within 60 days of year-end)are included in net position,but are excluded from fund
balances until they are available to liquidate liabilities of the current period.5,655,748
Accrued interest payable is included in net position,but is excluded from fund balances until due
and payable.(691,126)
Internal service funds are used to charge the costs of employee benefits and vehicle maintenance to
individual funds.The assets,liabilities,and deferred outflows/inflows of the internal service funds
are included in governmental activities in the Statement of Net Position.
Internal service balances included in governmental activities (9,616,178)
Add internal service balances allocated to business-type activities 2,153,749
Governmental funds report debt premiums as other financing sources at the time of issuance.
Premiums are reported as liabilities in the Statement of Net Position.(1,849,847)
Total net position – governmental activities 85,275,307$
Amounts reported for governmental activities in the Statement of Net Position are different because:
December 31, 2022
CITY OF GOLDEN VALLEY
Reconciliation of the Balance Sheet to the
Statement of Net Position
Governmental Funds
See notes to basic financial statements -21-
American
Rescue Street
Plan Act Reconstruction
General Special Revenue Debt Service
Revenue
Ad valorem taxes 22,207,999$ –$ 4,417,288$
Tax increments – – –
Special assessments 8,857 – 781,804
Franchise taxes – – –
Licenses and permits 1,842,234 – –
Intergovernmental revenue 154,084 – –
Charges for services 1,343,314 – –
Fines and forfeits 81,852 – –
Investment income (charges)(512,471) 29,388 (246,531)
Other revenue 198,746 – –
Total revenue 25,324,615 29,388 4,952,561
Expenditures
Current
General government 2,159,937 – –
Administrative services 2,424,296 – –
Casualty insurance 277,610 – –
Public safety 7,602,986 – –
Community development 2,169,560 – –
Public works 4,946,265 – –
Parks and recreation 1,245,550 – –
Capital outlay – – –
Debt service
Principal – – 3,760,000
Interest and fiscal charges – – 935,699
Total expenditures 20,826,204 – 4,695,699
Excess (deficiency) of
revenue over expenditures 4,498,411 29,388 256,862
Other financing sources (uses)
Sale of capital assets – – –
Bonds issued – – –
Premiums on bonds issued – – –
Transfers in 30,000 – –
Transfers (out)(2,750,000) – –
Total other financing sources (uses)(2,720,000) – –
Net change in fund balances 1,778,411 29,388 256,862
Fund balances (deficits)
Beginning of year 15,554,908 45 9,730,143
End of year 17,333,319$ 29,433$ 9,987,005$
CITY OF GOLDEN VALLEY
Statement of Revenue, Expenditures, and Changes in Fund Balances
Governmental Funds
Year Ended December 31, 2022
See notes to basic financial statements -22-
Winnetka/
State Aid Street Medicine Lake
Construction Reconstruction Tax Increment
Capital Project Capital Project Capital Project Nonmajor Totals
–$ –$ –$ 1,431,541$ 28,056,828$
– – 814,894 699,071 1,513,965
53,554 1,753 – 55,086 901,054
– 226,783 – 570,000 796,783
– – – – 1,842,234
1,227,205 – – 285,132 1,666,421
– – – 548,211 1,891,525
– – – – 81,852
(149,598) (210,184) (38,195) (550,737) (1,678,328)
– 98,414 – 999,021 1,296,181
1,131,161 116,766 776,699 4,037,325 36,368,515
– – – 71,628 2,231,565
– – – – 2,424,296
– – – – 277,610
– – – 18,420 7,621,406
– – – – 2,169,560
– – – – 4,946,265
– – – 396,263 1,641,813
371,240 4,446,479 2,049 4,720,318 9,540,086
150,000 – – 1,155,000 5,065,000
38,038 88,256 56,710 662,610 1,781,313
559,278 4,534,735 58,759 7,024,239 37,698,914
571,883 (4,417,969) 717,940 (2,986,914) (1,330,399)
– – – 192,330 192,330
– 3,895,000 – – 3,895,000
– 239,409 – – 239,409
– 700,000 – 2,075,000 2,805,000
– – – (25,000) (2,775,000)
– 4,834,409 – 2,242,330 4,356,739
571,883 416,440 717,940 (744,584) 3,026,340
3,786,784 6,246,403 (746,918) 16,584,765 51,156,130
4,358,667$ 6,662,843$ (28,978)$ 15,840,181$ 54,182,470$
-23-
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Total net change in fund balances – governmental funds 3,026,340$
Capital outlays are reported in governmental funds as expenditures;however,in the Statement of
Activities,the cost of those assets is allocated over the estimated useful lives as depreciation
expense.
Capital outlays 8,134,653
Depreciation expense (7,535,689)
A gain or loss on the disposal or transfer of capital assets,including the difference between the
carrying value and any related sale proceeds,is included in the change in net position;however,
only the sale proceeds are included in the change in fund balances.
Net book value of capital asset disposals (102,643)
Issuance or repayment of long-term debt are an other financing source or expenditure,respectively,
in the governmental funds,but increases of reduces long-term liabilities in the Statement of Net
Position.
Debt issued (3,895,000)
Debt repaid 5,065,000
Interest on long-term debt in the Statement of Activities differs from the amount reported in the
governmental funds because interest is recognized as an expenditure in the funds when it is due,
and thus requires the use of current financial resources.In the Statement of Activities,however,
interest expense is recognized as the interest accrues, regardless of when it is due.(17,529)
Governmental funds report debt issuance premiums as other financing sources at the time of
issuance. Premiums are reported as liabilities in the Statement of Net Position.(48,856)
Certain receivables (including delinquent taxes,special assessments,and other receivables not
collected within 60 days of year-end)are included in the change in net position,but are excluded
from fund balances until they are available to liquidate liabilities of the current period.707,611
Internal service funds are used to charge the costs of employee benefits and vehicle maintenance to
individual funds.The net revenue/expense of certain activities of internal service funds is reported
with governmental activities in the Statement of Activities.
Internal service fund activity included in governmental activities (1,287,716)
Add back internal service fund activity allocated to business-type activities 238,496
Change in net position – governmental activities 4,284,667$
Amounts reported for governmental activities in the Statement of Activities are different because:
CITY OF GOLDEN VALLEY
Reconciliation of the Statement of
Revenue, Expenditures, and Changes in Fund Balances
to the Statement of Activities
Governmental Funds
Year Ended December 31, 2022
See notes to basic financial statements -24-
THIS PAGE INTENTIONALLY LEFT BLANK
Original
and Final Over (Under)
Budget Actual Final Budget
Revenue
Ad valorem taxes 22,116,855$ 22,207,999$ 91,144$
Special assessments 6,000 8,857 2,857
Licenses and permits 1,207,815 1,842,234 634,419
Intergovernmental revenue 171,800 154,084 (17,716)
Charges for services 1,471,500 1,343,314 (128,186)
Fines and forfeits 125,000 81,852 (43,148)
Investment income (charges)150,000 (512,471) (662,471)
Other revenue 168,620 198,746 30,126
Total revenue 25,417,590 25,324,615 (92,975)
Expenditures
Current
General government 2,172,080 2,159,937 (12,143)
Administrative services 2,573,030 2,424,296 (148,734)
Casualty insurance 355,000 277,610 (77,390)
Public safety 9,021,740 7,602,986 (1,418,754)
Community development 2,475,330 2,169,560 (305,770)
Public works 4,743,415 4,946,265 202,850
Parks and recreation 1,356,995 1,245,550 (111,445)
Total expenditures 22,697,590 20,826,204 (1,871,386)
Excess of revenue over expenditures 2,720,000 4,498,411 1,778,411
Other financing sources (uses)
Transfers in 30,000 30,000 –
Transfers (out)(2,750,000) (2,750,000) –
Total other financing sources (uses)(2,720,000) (2,720,000) –
Net change in fund balances –$ 1,778,411 1,778,411$
Fund balances
Beginning of year 15,554,908
End of year 17,333,319$
CITY OF GOLDEN VALLEY
Statement of Revenue, Expenditures, and Changes in Fund Balances
General Fund – Budget and Actual
Year Ended December 31, 2022
See notes to basic financial statements -25-
Storm Sewer Brookview Motor Vehicle
Utility Utility Operating Operating
Assets
Current assets
Cash and temporary investments 15,320,615$ 11,673,440$ 1,968,155$ 374,518$
Receivables
Special assessments 370,077 – – –
Accounts 2,379,690 – 20,224 93,247
Allowance for uncollectibles (43,847) – ––
Due from other governmental units 87,202 – ––
Due from other funds 30,086 455,147 – –
Inventory 10,356 – 19,620 –
Prepaids 214,785 162,068 1,625 440
Total current assets 18,368,964 12,290,655 2,009,624 468,205
Noncurrent assets
Advances to other funds 725,007 2,044,671 – –
Net pension asset – fire relief – – – –
Capital assets
Land – 136,868 857,044 –
Land improvements 30,054 – 3,340,204 –
Buildings and improvements 602,827 – 205,798 –
Machinery and equipment 2,810,609 1,095,618 1,403,124 26,934
Infrastructure – distribution and
collection systems 29,776,491 31,714,285 – –
Construction in progress 1,129,767 5,006,170 1,738,558 –
Total capital assets 34,349,748 37,952,941 7,544,728 26,934
Less accumulated depreciation (15,840,388) (11,810,280) (4,276,666) (26,934)
Capital assets, net 18,509,360 26,142,661 3,268,062 –
Total noncurrent assets 19,234,367 28,187,332 3,268,062 –
Total assets 37,603,331 40,477,987 5,277,686 468,205
Deferred outflows of resources
Pension plan deferments – PERA – – – –
Pension plan deferments – fire relief – – – –
OPEB plan deferments – – – –
Total deferred outflows of resources – – – –
Total assets and deferred
outflows of resources 37,603,331$ 40,477,987$ 5,277,686$ 468,205$
Business-Type Activities – Enterprise Funds
CITY OF GOLDEN VALLEY
Statement of Net Position
Proprietary Funds
December 31, 2022
See notes to basic financial statements -26-
Governmental
Activities
Recycling Totals Internal Service
1,404,475$ 30,741,203$ 2,842,509$
– 370,077 –
– 2,493,161 6,474
– (43,847) –
– 87,202 –
– 485,233 –
– 29,976 113,228
– 378,918 –
1,404,475 34,541,923 2,962,211
– 2,769,678 –
– – 3,128,030
– 993,912 –
– 3,370,258 –
– 808,625 –
– 5,336,285 263,971
– 61,490,776 –
– 7,874,495 –
– 79,874,351 263,971
– (31,954,268) (248,961)
– 47,920,083 15,010
– 50,689,761 3,143,040
1,404,475 85,231,684 6,105,251
– – 11,477,064
– – 357,857
– – 1,798,466
– – 13,633,387
1,404,475$ 85,231,684$ 19,738,638$
-27-(continued)
Storm Sewer Brookview Motor Vehicle
Utility Utility Operating Operating
Liabilities
Current liabilities
Accounts payable 499,815$ 1,808$ 242,536$ 165$
Contracts payable 58,843 46,061 – –
Accrued interest payable – 23,418 – –
Accrued compensated absences – current – –– –
Due to other governmental units 260,327 7,213 48,314 17,100
Due to other funds 355,831 – 60,172 –
Deposits 106,325 758,724 2,168 –
Bonds payable – current – 125,000 – –
Total current liabilities 1,281,141 962,224 353,190 17,265
Noncurrent liabilities
Advances from other funds 532,000 – 1,450,014 –
Accrued compensated absences – – – –
Net pension liability – PERA – – – –
Total OPEB liability – – – –
Bonds payable – long-term – 2,119,403 – –
Total noncurrent liabilities 532,000 2,119,403 1,450,014 –
Total liabilities 1,813,141 3,081,627 1,803,204 17,265
Deferred inflows of resources
Pension plan deferments – PERA – – – –
Pension plan deferments – fire relief – – – –
OPEB plan deferments – – – –
Total deferred inflows of resources – – – –
Net position
Net investment in capital assets 18,509,360 23,898,258 3,268,062 –
Restricted for fire relief pensions – – – –
Unrestricted 17,280,830 13,498,102 206,420 450,940
Total net position 35,790,190 37,396,360 3,474,482 450,940
Total liabilities, deferred inflows
of resources, and net position 37,603,331$ 40,477,987$ 5,277,686$ 468,205$
Total net position – enterprise funds
Adjustment to reflect the consolidation of internal service fund
activity related to enterprise funds
Net position – business-type activities
CITY OF GOLDEN VALLEY
Statement of Net Position (continued)
Proprietary Funds
December 31, 2022
Business-Type Activities – Enterprise Funds
See notes to basic financial statements -28-
Governmental
Activities
Recycling Totals Internal Service
92,542$ 836,866$ 11,957$
– 104,904 –
– 23,418 –
– – 1,327,391
7,213 340,167 129
– 416,003 –
– 867,217 21,878
– 125,000 –
99,755 2,713,575 1,361,355
– 1,982,014 –
– – 282,091
– – 21,200,462
– – 3,045,439
– 2,119,403 –
– 4,101,417 24,527,992
99,755 6,814,992 25,889,347
– – 1,119,451
– – 1,500,586
– – 845,432
– – 3,465,469
– 45,675,680 15,010
– –1,985,301
1,304,720 32,741,012 (11,616,489)
1,304,720 78,416,692 (9,616,178)
1,404,475$ 85,231,684$ 19,738,638$
78,416,692$
(2,153,749)
76,262,943$
-29-
Storm Sewer Brookview Motor Vehicle
Utility Utility Operating Operating
Operating revenue
Charges for services 11,794,773$ 2,775,129$ 1,609,122$ 418,035$
Sales and rentals 8,115 – 2,766,928 –
Total operating revenue 11,802,888 2,775,129 4,376,050 418,035
Operating expenses
Enterprise operations 9,213,084 1,078,884 3,833,383 535,308
Other services – – – –
Depreciation 973,434 1,122,697 121,910 2,317
Total operating expenses 10,186,518 2,201,581 3,955,293 537,625
Operating income (loss)1,616,370 573,548 420,757 (119,590)
Nonoperating revenue (expense)
Franchise taxes 1,500,000 – – –
Intergovernmental revenue – 143,127 – 142,906
Investment income (charges)(584,347) (399,512) (41,814) (6,946)
Other income – 450 980 29
Gain on sale of capital assets 62,828 5,000 – –
Loss on disposal of capital assets – – (12,025) –
Interest expense (30,611) (58,501) (10,186) –
Total nonoperating revenue (expense)947,870 (309,436) (63,045) 135,989
Income (loss) before capital
contributions and transfers 2,564,240 264,112 357,712 16,399
Capital contributions 173,728 42,019 – –
Transfers (out)– – – (30,000)
Change in net position 2,737,968 306,131 357,712 (13,601)
Net position
Beginning of year 33,052,222 37,090,229 3,116,770 464,541
End of year 35,790,190$ 37,396,360$ 3,474,482$ 450,940$
Change in net position – enterprise funds
Adjustment to reflect the consolidation of internal
service fund activities related to the enterprise funds
Change in net position – business-type activities
Business-Type Activities – Enterprise Funds
CITY OF GOLDEN VALLEY
Statement of Revenue, Expenses, and Changes in Net Position
Proprietary Funds
Year Ended December 31, 2022
See notes to basic financial statements -30-
Governmental
Activities
Recycling Totals Internal Service
1,040,416$ 17,637,475$ 10,295,903$
–2,775,043 –
1,040,416 20,412,518 10,295,903
1,059,807 15,720,466 –
– –12,093,634
–2,220,358 17,445
1,059,807 17,940,824 12,111,079
(19,391) 2,471,694 (1,815,176)
–1,500,000 –
87,726 373,759 638,910
(46,795) (1,079,414) (111,597)
13,290 14,749 147
–67,828 –
– (12,025) –
– (99,298) –
54,221 765,599 527,460
34,830 3,237,293 (1,287,716)
–215,747 –
– (30,000) –
34,830 3,423,040 (1,287,716)
1,269,890 74,993,652 (8,328,462)
1,304,720$ 78,416,692$ (9,616,178)$
3,423,040$
(238,496)
3,184,544$
-31-
Storm Sewer Brookview Motor Vehicle
Utility Utility Operating Operating
Cash flows from operating activities
Receipts from customers and users 11,422,757$ 2,870,102$ 4,356,905$ 396,494$
Receipts from interfund services provided – – – –
Paid to suppliers/service providers (7,022,200) (496,555) (1,539,567) (38,721)
Paid to employees (1,376,756) (422,754) (2,186,209) (449,646)
Payments for interfund services (275,000) (200,000) (85,000) (30,000)
Net cash flows from
operating activities 2,748,801 1,750,793 546,129 (121,873)
Cash flows from capital and related
financing activities
Acquisition of capital assets (3,807,446) (1,478,952) (1,785,308) –
Advances (to) from other funds (755,093) (755,093) 1,510,186 –
Repayment of advances (353,525) 383,576 – –
Interest (paid) received on advances (25,518) 74,473 (10,186) –
Capital contributions 202,203 646,449 – –
Proceeds from sale of capital assets 96,400 10,865 1,000 –
Principal paid on capital debt – (125,000) – –
Interest paid on capital debt – (61,600) – –
Net cash flows from capital and
related financing activities (4,642,979) (1,305,282) (284,308) –
Cash flows from investing activities
Interest received (charged) on investments (589,440) (473,985) (41,814) (6,946)
Cash flows from noncapital financing activities
Operating grants – 143,127 – 142,906
Franchise taxes 1,500,000 – – –
Transfers (out)– – – (30,000)
Net cash flows from noncapital
financing activities 1,500,000 143,127 – 112,906
Net increase (decrease) in cash and
temporary investments/cash equivalents (983,618) 114,653 220,007 (15,913)
Cash and temporary investments/cash equivalents
Beginning of year 16,304,233 11,558,787 1,748,148 390,431
End of year 15,320,615$ 11,673,440$ 1,968,155$ 374,518$
CITY OF GOLDEN VALLEY
Business-Type Activities – Enterprise Funds
Year Ended December 31, 2022
Proprietary Funds
Statement of Cash Flows
See notes to basic financial statements -32-
Governmental
Activities
Recycling Totals Internal Service
1,053,706$ 20,099,964$ 7,193,413$
– – 3,126,219
(931,195) (10,028,238) (7,889,074)
– (4,435,365) (3,189,386)
(75,000) (665,000) –
47,511 4,971,361 (758,828)
– (7,071,706) –
– – –
– 30,051 –
– 38,769 –
– 848,652 –
– 108,265 –
– (125,000) –
– (61,600) –
– (6,232,569) –
(46,795) (1,158,980) (111,597)
87,726 373,759 638,910
– 1,500,000 –
– (30,000) –
87,726 1,843,759 638,910
88,442 (576,429) (231,515)
1,316,033 31,317,632 3,074,024
1,404,475$ 30,741,203$ 2,842,509$
-33-(continued)
Storm Sewer Brookview Motor Vehicle
Utility Utility Operating Operating
Reconciliation of operating income (loss) to net
cash flows from operating activities
Operating income (loss)1,616,370$ 573,548$ 420,757$ (119,590)$
Adjustments to reconcile operating income
(loss) to net cash flows from operating activities
Depreciation 973,434 1,122,697 121,910 2,317
Other income – 450 980 29
Changes in assets, liabilities, and deferred
outflows/inflows
Special assessments receivable (6,840) – – –
Accounts receivable (286,089) 94,523 (20,125) (21,570)
Due from other governmental units (87,202) – – –
Inventory (10,356) – (19,620) –
Prepaids 9,592 (13,591) (1,625) –
Net pension asset – fire relief – – – –
Deferred outflows – pension and OPEB plans – – – –
Accounts payable 437,700 (41,482) 29,237 (159)
Contracts payable 42,947 14,249 – –
Due to other governmental units 59,245 399 14,915 17,100
Deposits – – (300) –
Accrued compensated absences – – – –
Net pension liability – PERA – – – –
Total OPEB liability – – – –
Deferred inflows – pension and OPEB plans – – – –
Net cash flows from operating activities 2,748,801$ 1,750,793$ 546,129$ (121,873)$
Schedule of noncash capital and related
financing activities
Amortization of debt premiums –$ 2,057$ –$ –$
Net book value of capital asset disposals 33,572$ 5,865$ 13,025$ –$
Business-Type Activities – Enterprise Funds
CITY OF GOLDEN VALLEY
Statement of Cash Flows (continued)
Proprietary Funds
Year Ended December 31, 2022
See notes to basic financial statements -34-
Governmental
Activities
Recycling Totals Internal Service
(19,391)$ 2,471,694$ (1,815,176)$
– 2,220,358 17,445
13,290 14,749 147
– (6,840) –
– (233,261) 5,518
– (87,202) 18,064
– (29,976) 10,805
– (5,624) –
– – (8,968)
– – (4,864,353)
53,213 478,509 4,736
– 57,196 –
399 92,058 129
– (300) (12,117)
– –(26,697)
– –13,798,666
– –1,172,217
– –(9,059,244)
47,511$ 4,971,361$ (758,828)$
–$ 2,057$ –$
–$ 52,462$ –$
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CITY OF GOLDEN VALLEY
Notes to Basic Financial Statements
December 31, 2022
-36-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES
A.Organization
The City of Golden Valley, Minnesota (the City) operates under “Optional Plan B” as defined in
Minnesota Statutes, Chapter 412. Under this plan, the government of the City is run by a council
composed of an elected mayor and four councilmembers. The City Council exercises legislative authority
and determines all matters of policy. The city manager, who is appointed by the City Council, is
responsible for the proper administration of all affairs relating to the City.
The accounting policies of the City conform to accounting principles generally accepted in the United
States of America as applicable to governmental units.
B.Reporting Entity
As required by accounting principles generally accepted in the United States of America, these financial
statements include the City (the primary government) and its component units. Component units are
legally separate entities for which the primary government is financially accountable, or for which the
exclusion of the component unit would render the financial statements of the primary government
misleading. The criteria used to determine if the primary government is financially accountable for a
component unit includes whether or not the primary government appoints the voting majority of the
potential component unit’s board, is able to impose its will on the potential component unit, is in a
relationship of financial benefit or burden with the potential component unit, or is fiscally depended upon
by the potential component unit.
As a result of applying these criteria, certain organizations have been included or disclosed in this report
as follows:
1.Blended Component Unit – The Golden Valley Housing and Redevelopment Authority (HRA)
is a legally separate organization created in accordance with Minnesota Statutes § 469. Its
purpose is to clear and redevelop blighted areas in the City and to provide adequate housing for
low and moderate-income residents. The HRA is fiscally dependent upon the City, its governing
board consists of the City’s mayor and councilmembers, and the City’s management has
operational responsibility for the HRA. Therefore, the HRA has been reported as a blended
component unit of the City, with its funds reported as funds of the City.
2.Joint Ventures – The City participates in two joint ventures: the Bassett Creek Water
Management Commission and the Joint Water Commission (JWC). Descriptions and condensed
financial information for these organizations are included later in these notes.
3.Jointly Governed Organization – The City is a member of Local Governmental Information
Systems (LOGIS), a consortium of Minnesota municipalities that provides data processing
services and support to its members. LOGIS is a legally separate entity that is financially
independent of the City. Further, the City does not appoint a voting majority of LOGIS’ Board of
Directors. Therefore, it has not been incorporated into the City’s reporting entity. During the 2022
fiscal year, the City paid LOGIS $765,659 for services provided.
-37-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C.Government-Wide Financial Statements
The government-wide financial statements (Statement of Net Position and Statement of Activities)
display information about the reporting government as a whole. These statements include all of the
financial activities of the City. Governmental activities, which are normally supported by taxes and
intergovernmental revenues, are reported separately from business-type activities, which significantly rely
upon sales, fees, and charges for support.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. 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
segment; 2) operating grants and contributions; and 3) capital grants and contributions, including special
assessments that are restricted to meeting the operational or capital requirements of a particular function
or segment. Taxes and other internally directed revenues are reported as general revenues.
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when
a liability is incurred, regardless of the timing of related cash flows. Property taxes and special
assessments are recognized as revenues in the fiscal year for which they are certified for levy. Grants and
similar items are recognized when all eligibility requirements imposed by the provider have been met.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
statements. However, charges between the City’s enterprise funds and other functions are not eliminated,
as that would distort the direct costs and program revenues reported in those functions. Depreciation
expense is included in the direct expenses of each function. Interest on long-term debt is considered an
indirect expense and is reported separately on the Statement of Activities.
D.Fund Financial Statement Presentation
Separate fund financial statements are provided for governmental and proprietary funds. Major individual
governmental and enterprise funds are reported as separate columns in the fund financial statements.
Aggregated information for the remaining nonmajor governmental funds is reported in a single column in
the fund financial statements.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Under this basis of accounting, transactions are
recorded in the following manner:
1.Revenue Recognition – Revenue is recognized when it becomes measurable and available.
“Measurable” means the amount of the transaction can be determined and “available” means
collectible within the current period or soon enough thereafter to be used to pay liabilities of the
current period. For this purpose, the City considers revenues to be available if they are collected
within 60 days after year-end. Only the portion of special assessments receivable due within the
current fiscal period is considered susceptible to accrual as revenue of the current period. Grants
and similar items are recognized when all eligibility requirements imposed by the provider have
been met. Proceeds of long-term debt and acquisitions under leases are reported as other
financing sources.
Major revenue that is susceptible to accrual includes property taxes, special assessments,
intergovernmental revenue, charges for services, and interest earned on investments. Major
revenue that is not susceptible to accrual includes licenses and permits, fees, and miscellaneous
revenue. Such revenue is recorded only when received because it is not measurable until
collected.
-38-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2. Recording of Expenditures – Expenditures are generally recorded when a liability is incurred,
except for principal and interest on long-term debt and other long-term liabilities, which are
recognized as expenditures to the extent they have matured. Capital asset acquisitions are
reported as capital outlay expenditures in the governmental funds.
Proprietary fund financial statements are reported using the economic resources measurement focus and
accrual basis of accounting, similar to the government-wide financial statements. 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 City’s enterprise
funds and internal service funds are charges to customers for sales and services. The operating expenses
for the enterprise funds and internal service funds include the cost of sales and services, administrative
expenses, and depreciation on capital assets. All revenues and expenses that do not meet this definition
are reported as nonoperating revenues and expenses.
Aggregated information for the internal service funds is reported in a single column in the proprietary
fund financial statements. Because the principal user of the internal services is the City’s governmental
activities, the financial statements of the internal service funds are consolidated into the governmental
column when presented in the government-wide financial statements. The cost of these services is
reported in the appropriate functional activity.
Description of Funds
The City reports the following major governmental funds:
General Fund – This is the general operating fund of the City. It is used to account for all financial
resources except those required to be accounted for in another fund.
American Rescue Plan Act Special Revenue Fund – This fund used to account for federal funds
allocated to the City under the American Rescue Plan Act.
Street Reconstruction Debt Service Fund – This fund is used to account for the accumulation of
resources for, and payment of, debt service on improvement bonds issued to finance the City’s Street
Reconstruction Program.
State Aid Construction Capital Project Fund – This fund is used to account for state construction
aid received to finance qualifying road projects.
Street Reconstruction Capital Project Fund – This fund is used to account for financial resources,
primarily improvement bond proceeds, to be used for the City’s Street Reconstruction Program.
Winnetka/Medicine Lake Tax Increment Capital Project Fund – This fund is used to account for
the activity of the City’s Winnetka/Medicine Lake Tax Increment District No. 1508.
The City reports the following major proprietary funds:
Utility Fund – This fund is used to account for the operation, maintenance, and improvement of the
City’s water and sanitary sewer utilities.
Storm Sewer Utility Fund – This fund is used to account for the operation, maintenance, and
improvement of the City’s storm water drainage system.
Brookview Operating Fund – This fund is used to account for the operation, maintenance, and
improvement of the City’s 18-hole regulation and 9-hole par 3 golf course facilities.
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NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Motor Vehicle Operating Fund – This fund is used to account for the operation and maintenance of
the City’s Deputy Registrar function.
Recycling Fund – This fund is used to account for the operation of the City’s recycling, spring brush
pickup, and fall leaf drop-off programs.
The City also reports the following fund type:
Internal Service Funds – These funds are used to account for the City’s vehicle maintenance
operation, workers’ compensation insurance, and payroll benefits. Internal service funds operate in a
manner similar to enterprise funds; however, they provide services primarily to other departments
within the City.
E. Budgets and Budgetary Accounting
Each fall, following a truth in taxation public hearing, the City Council adopts a General Fund budget for
the following fiscal year beginning January 1. The budget is prepared on a modified accrual basis of
accounting. The City has established budgetary control at the division level. City management may
transfer appropriations within divisions but needs City Council approval before exceeding the budget at
that level. Appropriations lapse at year-end; however, the City Council may approve the carryover of
specific amounts.
F. Cash, Cash Equivalents, and Investments
Cash balances from all funds are combined and invested to the extent available in short-term investments.
Earnings from the pooled investments are allocated to the individual funds based on the average monthly
cash and investment balances of the respective funds. Certain bond proceeds may be held separately for
capital projects. Earnings on these accounts are allocated directly to the respective funds.
For purposes of the Statement of Cash Flows, the City considers all highly liquid debt instruments with an
original maturity from the time of purchase of three months or less to be cash equivalents. The proprietary
funds’ portion of the government-wide cash and investment pool is considered to be cash equivalent.
The City generally reports investments at fair value other than for certain investment pools valued at
amortized cost.
The City categorizes its fair value measurements within the fair value hierarchy established by accounting
principles generally accepted in the United States of America. The hierarchy is based on the valuation
inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for
identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant
unobservable inputs. Debt securities classified in Level 2 of the fair value hierarchy are valued using a
matrix pricing technique. Matrix pricing is used to value securities based on the securities’ relationship to
benchmark quoted prices.
See Note 2 for the City’s recurring fair value measurements as of the current year-end.
G. Receivables
Utility and miscellaneous accounts receivable are reported at gross. Since the City is generally able to
certify delinquent amounts to the county for collection as special assessments, no allowance for
uncollectible accounts has been provided on current receivables. The City does record an allowance for
the amount of utility receivables that remain delinquent after having been certified to the county.
-40-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
H. Property Taxes
Property tax levies are set by the City Council in December of each year and are certified to Hennepin
County for collection in the following year. In Minnesota, counties act as collection agents for all
property taxes. The county spreads the levies over all taxable property. Such taxes become a lien on
January 1 and are recorded as receivables by the City on that date. Property taxes may be paid by
taxpayers in two equal installments on May 15 and October 15. The county provides tax settlements to
cities and other taxing districts three times a year; in July, December, and January.
Property taxes are recognized as revenue in the year levied in the government-wide financial statements
and proprietary fund financial statements. In the governmental fund financial statements, taxes are
recognized as revenue when received in cash or within 60 days after year-end. Taxes which remain
unpaid on December 31 are classified as delinquent taxes receivable and are offset by a deferred inflow of
resources in the governmental fund financial statements.
I. Special Assessments
Special assessments represent the financing for public improvements paid for by benefiting property
owners. Special assessments are recorded as receivables upon certification to the county. Special
assessments are recognized as revenue in the year levied in the government-wide financial statements and
proprietary fund financial statements. In the governmental fund financial statements, special assessments
are recognized as revenue when received in cash or within 60 days after year-end. Governmental fund
special assessments receivable which remain unpaid on December 31 are offset by a deferred inflow of
resources in the governmental fund financial statements.
Special assessments receivable at year-end consists of the following:
Allowance
for Net of
Delinquent Deferred Total Uncollectible Allowance
Governmental funds
General 1,190$ 1,783$ 2,973$ –$ 2,973$
Street Reconstruction Debt Service 6,168 2,471,279 2,477,447 – 2,477,447
State Aid Construction Capital Project – 248,611 248,611 – 248,611
Street Reconstruction Capital Project – 10,815 10,815 – 10,815
Nonmajor – 217,445 217,445 – 217,445
Total governmental funds 7,358 2,949,933 2,957,291 – 2,957,291
Enterprise funds
Utility 43,847 326,230 370,077 (43,847) 326,230
Total 51,205$ 3,276,163$ 3,327,368$ (43,847)$ 3,283,521$
Special Assessments Receivable
J. Interfund Receivables and Payables
In the fund financial statements, activity between funds that is representative of lending or borrowing
arrangements is reported as either “due to/from other funds” (current portion) or “advances to/from other
funds.” All other outstanding balances between funds are reported as “due to/from other funds.” Any
residual balances outstanding between the governmental activities and business-type activities are
reported in the government-wide financial statements as “internal balances.”
-41-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
K. Prepaids
Certain cash payments to vendors reflect costs applicable to future periods and are recoded as prepaids in
both the government-wide and fund financial statements. Governmental fund prepaids are recorded as
expenditures when consumed.
L. Inventories
Proprietary fund inventories are stated at cost (for supplies) or the lower of cost or market (for resale
merchandise) on the first-in, first-out basis. Inventory in the internal service funds consists of parts,
supplies, and gasoline for the maintenance of city-owned vehicles.
M. Capital Assets
Capital assets, which include property, buildings, improvements, equipment, and infrastructure assets
(roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business-type
activities columns in the government-wide financial statements. Such assets are capitalized at historical
cost or estimated historical cost for assets where actual historical cost is not available. Donated assets are
recorded as capital assets at their estimated acquisition value on the date of donation. The City defines
capital assets as those with an initial, individual cost of $5,000 or more with an estimated useful life in
excess of one year. The cost of normal maintenance and repairs that do not add to the value of the asset or
materially extend asset lives are not capitalized.
Capital assets are recorded in the government-wide and proprietary fund financial statements but are not
reported in the governmental fund financial statements. Capital assets are depreciated using the
straight-line method over their estimated useful lives. Land and construction in progress are not
depreciated. Useful lives vary from 10 to 50 years for land improvements and buildings and
improvements, 3 to 20 years for machinery and equipment, and 20 to 50 years for infrastructure.
N. Deferred Outflows/Inflows of Resources
In addition to assets and liabilities, statements of financial position, or balance sheets, will sometimes
report deferred outflows or inflows of resources. These separate financial statement elements represent a
consumption or acquisition of net assets that applies to a future period and so will not be recognized as an
outflow of resources (expense/expenditure) or an inflow of financial resources (revenue) until then.
Deferred inflows of resources from unavailable revenue arises only under a modified accrual basis of
accounting and, therefore, is only reported in the governmental fund financial statements. The
governmental funds report unavailable revenue from three sources: property taxes, special assessments,
and long-term receivables. These amounts are deferred and recognized as inflows of resources in the
period they become available.
Deferred outflows and inflows of resources related to pensions or other post-employment benefits
(OPEB) are reported in the government-wide and proprietary fund Statements of Net Position. These
deferred outflows and inflows result from differences between expected and actual experience, changes in
proportion, assumption changes, differences between projected and actual earnings on plan investments,
and contributions to the plan subsequent to the measurement date and before the end of the reporting
period. These amounts are deferred and amortized as required under pension or OPEB standards.
-42-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
O. Long-Term Liabilities
In the government-wide and proprietary fund financial statements, long-term debt and other long-term
obligations are reported as liabilities. Bond premiums and discounts are deferred and amortized over the
life of the bonds using the straight-line method.
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 or
discounts on debt issuances are reported as other financing sources or uses, respectively.
P. Compensated Absences
Substantially all regular full-time and part-time city employees hired before January 1, 2009 earn vacation
and sick leave at various rates based on longevity. Unused vacation may be accumulated up to a
maximum of two times the employee’s annual vacation allowance. Unused sick leave may be
accumulated up to a maximum of 800 hours. Employees in good standing are paid for any unused
vacation time upon termination. After five years of service, employees in good standing are also paid for
one-third of any unused sick leave upon termination. Employees hired on or after January 1, 2009 earn
personal time off (PTO) rather than vacation and sick leave. PTO may be accumulated up to various
maximum amounts as specified by contract. Employees in good standing are paid for any unused PTO
upon termination. All such benefits are payable at the employee’s current rate of pay at the time their
employment with the City terminates. These benefits are accrued as they vest in the Payroll Benefits
Internal Service Fund and are funded as they accrue from the City’s General Fund and enterprise funds.
Q. State-Wide Pension Plans
For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension
expense, information about the fiduciary net position of the Public Employees Retirement Association
(PERA) and additions to/deductions from the PERA’s fiduciary net position have been determined on the
same basis as they are reported by the PERA. 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.
R. 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; and natural disasters. The City participates in the League of Minnesota Cities
Insurance Trust (LMCIT), a public entity risk pool for its general property and casualty, workers’
compensation, and other miscellaneous insurance coverage. The LMCIT operates as a common risk
management and insurance program for a large number of cities in Minnesota. The City pays an annual
premium to the LMCIT for insurance coverage. The LMCIT agreement provides that the trust will be
self-sustaining through member premiums and will reinsure through commercial companies for claims in
excess of certain limits. The City also carries commercial insurance for certain other risks of loss. Settled
claims resulting from these risks did not exceed insurance coverage in any of the last three fiscal years.
There were no significant reductions in insurance coverage in the current year.
S. Use of Estimates
The preparation of financial statements, in conformity with accounting principles generally accepted in
the United States of America, requires management to make estimates and assumptions that affect the
amounts reported at the date of the financial statements during the reporting period. Actual results could
differ from those estimates.
-43-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
T. 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,
inventory, and other long-term assets.
• Restricted – Consists of amounts related to externally imposed constraints established by
creditors, grantors, or contributors; or constraints imposed by state statutory provisions.
• Committed – Consists of internally imposed constraints established by resolution of the City
Council, which cannot be used for any other purpose unless the City Council removes or changes
the specified use by taking the same type of action employed to previously commit those
amounts.
• Assigned – Consists of internally imposed constraints representing amounts intended to be used
by the City for specific purposes that do not meet the criteria to be classified as restricted or
committed. Assigned amounts represent intended uses established by the governing body itself or
by an official to which the governing body delegates the authority. Pursuant to City Council
resolution, the City Council is authorized to establish assignments of fund balance.
• Unassigned – The residual classification for the General Fund, which 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 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 City’s fund balance policy includes a fund balance goal in the General Fund of maintaining an
unassigned fund balance of 60 percent of next year’s adopted General Fund budgeted expenditures.
U. Net Position
In the government-wide and proprietary fund financial statements, net position represents the difference
between assets, deferred outflows of resources, liabilities, and deferred inflows of resources. Net position
is displayed in three components:
• Net Investment in Capital Assets – Consists of capital assets, net of accumulated depreciation,
reduced by any outstanding debt attributable to acquire capital assets.
• Restricted Net Position – Consists of net position restricted when there are limitations imposed
on its use through external restrictions imposed by creditors, grantors, or laws or regulations of
other governments.
• Unrestricted Net Position – All other elements of net position that do not meet the definition of
“restricted” or “net investment in capital assets.”
The City applies restricted resources first when an expense is incurred for which both restricted and
unrestricted resources are available.
-44-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
V. Net Investment in Capital Assets
The City’s net investment in capital assets at year-end is calculated as follows:
Governmental Business-Type
Activities Activities Total
Capital assets, net of depreciation 92,125,501$ 47,920,083$ 140,045,584$
Less applicable
Bonds payable (56,670,000) (2,215,000) (58,885,000)
Unamortized bond premiums (1,849,847) (29,403) (1,879,250)
Net investment in capital assets 33,605,654$ 45,675,680$ 79,281,334$
NOTE 2 – CASH AND INVESTMENTS
A. Components of Cash and Investments
Cash and investments at year-end consist of the following:
Deposits 9,547,118$
Investments 83,154,331
Cash on hand 5,595
Total 92,707,044$
B. Deposits
In accordance with applicable Minnesota Statutes, the City maintains deposits at depository banks
authorized by the City Council, including checking accounts and certificates of deposit.
The following is considered the most significant risk associated with deposits:
Custodial Credit Risk – In the case of deposits, this is the risk that in the event of a bank failure, the
City’s deposits may be lost.
Minnesota Statutes require that all deposits be protected by federal deposit insurance, corporate surety
bond, or collateral. The market value of collateral pledged must equal 110 percent of the deposits not
covered by federal deposit insurance or corporate surety bonds. Authorized collateral includes
treasury bills, notes, and bonds; issues of U.S. government agencies; general obligations rated “A” or
better; revenue obligations rated “AA” or better; irrevocable standard letters of credit issued by the
Federal Home Loan Bank; and certificates of deposit. Minnesota Statutes require that securities
pledged as collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or in
an account at a trust department of a commercial bank or other financial institution that is not owned
or controlled by the financial institution furnishing the collateral. The City has no additional deposit
policies addressing custodial credit risk.
At year-end, the bank balances of the City’s deposits totaled $9,706,668, all of which were fully
covered by federal deposit insurance or collateral held by the City’s agent in the City’s name.
-45-
NOTE 2 – CASH AND INVESTMENTS (CONTINUED)
C. Investments
The City has the following investments at year-end:
Fair Value Concentration
Measurements Risk
Investment Type Using No Maturity Less Than 1 1 to 5 Total > 5 Percent
U.S. agency securities
FHLMC Level 2 –$ –$ 6,444,720$ 6,444,720$ Yes
FFCB Level 2 – 3,116,608 8,214,673 11,331,281 Yes
FHLB Level 2 – – 17,853,964 17,853,964 Yes
FNMA Level 2 – – 3,926,520 3,926,520 No
State and local bonds Level 2 – – 5,151,015 5,151,015 No
State and local bonds Level 2 – 5,277,957 11,915,870 17,193,827 No
State and local bonds Level 2 – – 5,954,786 5,954,786 No
Negotiable certificates of deposit Level 2 – 245,584 – 245,584 No
Investment pool/mutual funds
U.S. Government Money Market Fund Level 1 2 – – 2 N/A
4M Fund N/A 2,673,125 – – 2,673,125 N/A
4M Plus Fund N/A 12,379,507 – – 12,379,507 N/A
Total investments 15,052,634$ 8,640,149$ 59,461,548$ 83,154,331$
Credit risk ratings above were provided by nationally recognized rating agencies: Standard and Poor’s, Moody’s, or Fitch.
N/A – Not Applicable
N/R – Not Rated
Maturity Duration in Years
Interest Risk –
N/R
Rating
AAA
AA
AA
AAA
AA
A
AA
AAA
Risk
N/R
N/R
Credit
The Minnesota Municipal Money Market (4M) Fund and 4M Plus Fund are external investment pools
regulated by Minnesota Statutes that are not registered with the Securities and Exchange Commission
(SEC), but follow the regulatory rules of the SEC. The City’s investment in these funds is measured at the
value per share provided by the pool, which are based on an amortized cost method that approximates fair
value. There are no restrictions or limitations on withdrawals from the 4M Fund. The 4M Plus Fund
requires an initial 14-day investment period, subject to a penalty equal to 7 days of interest on funds
withdrawn prior to the 14-day restriction period.
Investments are subject to various risks, the following of which are considered the most significant:
Credit Risk – This is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. Minnesota Statutes limit the City’s investments to direct obligations or obligations
guaranteed by the United States or its agencies; shares of investment companies registered under the
Federal Investment Company Act of 1940 that receive the highest credit rating, are rated in one of the
two highest rating categories by a statistical rating agency, and all of the investments have a final
maturity of 13 months or less; general obligations rated “A” or better; revenue obligations rated “AA”
or better; general obligations of the Minnesota Housing Finance Agency rated “A” or better; bankers’
acceptances of United States banks eligible for purchase by the Federal Reserve System; commercial
paper issued by United States corporations or their Canadian subsidiaries, rated of the highest quality
category by at least two nationally recognized rating agencies, and maturing in 270 days or less;
Guaranteed Investment Contracts guaranteed by a United States commercial bank, domestic branch of
a foreign bank, or a United States insurance company, and with a credit quality in one of the top
two highest categories; repurchase or reverse purchase agreements and securities lending agreements
with financial institutions qualified as a “depository” by the government entity, with banks that are
members of the Federal Reserve System with capitalization exceeding $10,000,000; that are a
primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; or
certain Minnesota securities broker-dealers. The City’s investment policies do not further address
credit risk.
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NOTE 2 – CASH AND INVESTMENTS (CONTINUED)
Custodial Credit Risk – For investments, this is the risk that in the event of a failure of the
counterparty to an investment transaction (typically a broker-dealer) the City would not be able to
recover the value of its investments or collateral securities that are in the possession of an outside
party. The City does not have a formal investment policy addressing this risk, but typically limits its
exposure by purchasing insured or registered investments, or by control of who holds the securities.
Concentration Risk – This is the risk associated with investing a significant portion of the City’s
investment (considered 5 percent or more) in the securities of a single issuer, excluding
U.S. guaranteed investments (such as treasuries), investment pools, and mutual funds. The City’s
investment policies do not limit the concentration of investments.
Interest Rate Risk – This is the risk of potential variability in the fair value of fixed rate investments
resulting from changes in interest rates (the longer the period for which an interest rate is fixed, the
greater the risk). The City does not have an investment policy limiting the duration of investments.
NOTE 3 – INTERFUND BALANCES AND TRANSFERS
A. Interfund Balances
The City had the following interfund balances at year-end:
Receivable Fund Payable Fund Amount Reason
Due from/to other funds
Storm Sewer Utility Enterprise Utility Enterprise 173,491$ Current portion of advance (1)
Nonmajor governmental Utility Enterprise 182,340 Current portion of advance (2)
Storm Sewer Utility Enterprise Winnetka/Medicine Lake
Tax Increment Capital Project 75,617 Current portion of advance (3)
Storm Sewer Utility Enterprise Winnetka/Medicine Lake
Tax Increment Capital Project 175,953 Current portion of advance (4)
Utility Enterprise Brookview Operating Enterprise 30,086 Current portion of advance (5)
Storm Sewer Utility Enterprise Brookview Operating Enterprise 30,086 Current portion of advance (5)
667,573
Advances to/from other funds
Storm Sewer Utility Enterprise Utility Enterprise 172,000 Advance (1)
Nonmajor governmental Utility Enterprise 360,000 Advance (2)
Storm Sewer Utility Enterprise Winnetka/Medicine Lake
Tax Increment Capital Project 790,000 Advance (3)
Storm Sewer Utility Enterprise Winnetka/Medicine Lake
Tax Increment Capital Project 357,664 Advance (4)
Utility Enterprise Brookview Operating Enterprise 725,007 Advance (5)
Storm Sewer Utility Enterprise Brookview Operating Enterprise 725,007 Advance (5)
3,129,678
Total interfund balances reported on fund financial statements 3,797,251$
Net interfund balances between governmental and enterprise funds (856,894)$
Internal service funds activities related to business-type activities 2,153,749
Internal balances reported on government-wide financial statements 1,296,855$
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NOTE 3 – INTERFUND BALANCES AND TRANSFERS (CONTINUED)
B. Descriptions of Advances
1) In 2014, the Storm Sewer Utility Enterprise Fund advanced $1,720,000 to the Utility Enterprise
Fund to finance an emergency water supply project. The advance will be repaid through annual
payments due each October 31 from 2015 through 2024, consisting of $172,000 principal plus
interest on the outstanding balance at 2.6 percent. Interest for 2022 was $12,671.
2) In 2015, the Capital Improvement Capital Project Fund advanced $1,800,000 to the Utility
Enterprise Fund to finance an emergency pipe reconstruction project. The advance will be repaid
through annual payments due each October 31 from 2016 through 2025, consisting of $180,000
principal plus interest on the outstanding balance at 2.6 percent. Interest for 2022 was $17,940.
3) In 2016, the Storm Sewer Utility Enterprise Fund advanced $1,000,000 to the Winnetka/Medicine
Lake Tax Increment Capital Project Fund. The advance will be repaid through annual payments
due each February 1 from 2017 through 2036, consisting of principal at varying amounts plus
interest on the outstanding balance at 4.0 percent. Interest for 2022 was $33,550.
4) In 2018, the Storm Sewer Utility Enterprise Fund advanced $1,050,000 to the Winnetka/Medicine
Lake Tax Increment Capital Project Fund. The advance will be repaid through semiannual
payments due from February 1, 2019 through August 1, 2023, consisting of principal at varying
amounts plus interest on the outstanding balance at 4.0 percent. Interest for 2022 was $23,160.
5) In 2022, the Water and Sewer Utility Enterprise Fund and the Storm Sewer Utility Enterprise
Fund advanced $1,500,000 ($750,000 each) to the Brookview (Golf Course) Operating Enterprise
Fund to finance an irrigation system. The advance will be repaid through annual payments due
each October 31 from 2023 through 2042, consisting of principal at varying amounts plus interest
on the outstanding balance at 4.0 percent. Interest for 2022 was $10,185.
C. Interfund Transfers
Interfund transfers for the 2022 fiscal year were as follows:
Street
Reconstruction
General Capital Project Nonmajor Total
Governmental funds
General –$ 700,000$ (1)2,050,000$ (1)2,750,000$
Nonmajor – – 25,000 (2)25,000
Enterprise funds
Motor Vehicle Operating 30,000 (3)– – 30,000
Total 30,000$ 700,000$ 2,075,000$ 2,805,000$
(1)Transfers to finance current or future capital purchases or construction.
(2)Transfer to finance a comprehensive housing needs assessment.
(3)Transfer to support General Fund budget.
Transfers Out
Governmental Funds
Transfers In
Interfund transfers are eliminated to the extent possible in the government-wide financial statements.
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NOTE 4 – CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2022 was as follows:
A. Changes in Capital Assets Used in Governmental Activities
Transfers and
Beginning Completed
of Year Additions Deletions Construction End of Year
Capital assets, not depreciated
Land 3,527,685$ –$ –$ –$ 3,527,685$
Construction in progress 14,737,620 6,753,853 – (13,283,003) 8,208,470
Total capital assets, not depreciated 18,265,305 6,753,853 – (13,283,003) 11,736,155
Capital assets, depreciated
Land improvements 8,001,061 202,617 – – 8,203,678
Buildings and improvements 29,267,959 48,377 – – 29,316,336
Machinery and equipment 17,058,832 1,129,806 (482,169) – 17,706,469
Infrastructure 133,120,578 – – 13,283,003 146,403,581
Total capital assets, depreciated 187,448,430 1,380,800 (482,169) 13,283,003 201,630,064
Less accumulated depreciation on
Land improvements (4,673,785) (308,985) – – (4,982,770)
Buildings and improvements (12,260,841) (604,626) – – (12,865,467)
Machinery and equipment (9,057,134) (1,193,141) 379,526 – (9,870,749)
Infrastructure (88,075,350) (5,446,382) – – (93,521,732)
Total accumulated depreciation (114,067,110) (7,553,134) 379,526 – (121,240,718)
Net capital assets, depreciated 73,381,320 (6,172,334) (102,643) 13,283,003 80,389,346
Total capital assets, net 91,646,625$ 581,519$ (102,643)$ –$ 92,125,501$
B. Changes in Capital Assets Used in Business-Type Activities
Transfers and
Beginning Completed
of Year Additions Deletions Construction End of Year
Capital assets, not depreciated
Land 903,043$ 90,869$ –$ –$ 993,912$
Construction in progress 5,516,547 4,392,942 – (2,034,994) 7,874,495
Total capital assets, not depreciated 6,419,590 4,483,811 – (2,034,994) 8,868,407
Capital assets, depreciated
Land improvements 3,356,022 37,695 (23,459) – 3,370,258
Buildings and improvements 808,625 – – – 808,625
Machinery and equipment 5,078,164 699,304 (441,183) – 5,336,285
Infrastructure – distribution
and collection systems 57,604,886 1,850,896 – 2,034,994 61,490,776
Total capital assets, depreciated 66,847,697 2,587,895 (464,642) 2,034,994 71,005,944
Less accumulated depreciation on
Land improvements (2,830,586) (52,455) 10,434 – (2,872,607)
Buildings and improvements (603,024) (23,363) – – (626,387)
Machinery and equipment (3,551,892) (356,292) 401,746 – (3,506,438)
Infrastructure – distribution
and collection systems (23,160,588) (1,788,248) – – (24,948,836)
Total accumulated depreciation (30,146,090) (2,220,358) 412,180 – (31,954,268)
Net capital assets, depreciated 36,701,607 367,537 (52,462) 2,034,994 39,051,676
Total capital assets, net 43,121,197$ 4,851,348$ (52,462)$ –$ 47,920,083$
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NOTE 4 – CAPITAL ASSETS (CONTINUED)
C. Depreciation Expense by Function
Depreciation expense for the year ended December 31, 2022 was charged to the following functions:
Governmental activities
General government 76,027$
Public safety 458,465
Community development 9,732
Public works 6,063,928
Parks and recreation 927,537
Capital assets held by the City’s internal service funds –
charged to the various functions based on usage of the assets 17,445
Total depreciation expense – governmental activities 7,553,134$
Business-type activities
Utility (water and sewer)973,434$
Storm sewer utility 1,122,697
Brookview (golf course) operating 121,910
Motor vehicle operating 2,317
Total depreciation expense – business-type activities 2,220,358$
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NOTE 5 – LONG-TERM LIABILITIES
A. Long-Term Liabilities
The City’s long-term liabilities at December 31, 2022 are as follows:
Final Balance –
Original Issue Interest Rate Issue Date Maturity Date End of Year
Governmental activities
General obligation special assessment bonds
Improvement Bonds of 2012A 1,575,000$ 2.00–3.00%05/15/2012 02/01/2032 510,000$
Improvement Refunding Bonds of 2012C 5,960,000$ 2.00–2.25%05/15/2012 02/01/2025 2,945,000
Improvement Bonds of 2013A 1,735,000$ 1.25–3.00%05/21/2013 02/01/2033 785,000
Improvement Refunding Bonds of 2013B 7,025,000$ 2.00%05/21/2013 02/01/2026 3,125,000
Improvement Bonds of 2014A 2,335,000$ 1.00–3.40%06/19/2014 02/01/2035 1,790,000
Improvement Refunding Bonds of 2014C 3,950,000$ 2.00–4.00%06/19/2014 02/01/2027 3,330,000
Improvement Bonds of 2015A 1,870,000$ 3.00–3.50%07/15/2015 02/01/2036 645,000
Improvement Refunding Bonds of 2015C 6,600,000$ 2.00–2.50%07/15/2015 02/01/2028 5,360,000
Improvement Bonds of 2016A 1,290,000$ 2.00–3.00%07/07/2016 02/01/2037 890,000
Improvement Bonds of 2017A 2,580,000$ 3.00–3.25%07/20/2017 02/01/2038 2,015,000
Improvement Refunding Bonds of 2017A 4,100,000$ 3.00%07/20/2017 02/01/2029 3,305,000
Improvement Refunding Bonds of 2017B 765,000$ 2.00–4.00%07/20/2017 02/01/2028 445,000
Improvement Bonds of 2018A 2,950,000$ 3.00–3.375%06/14/2018 02/01/2038 2,385,000
Improvement Bonds of 2019A 1,770,000$ 3.00–5.00%07/18/2019 02/01/2039 1,650,000
Improvement Bonds of 2021A 3,420,000$ 1.50–3.00%06/03/2021 02/01/2041 3,280,000
Improvement Bonds of 2022A 3,895,000$ 3.00–5.00%05/05/2022 02/01/2042 3,895,000
36,355,000
General obligation street reconstruction bonds
Street Reconstruction Bonds of 2016C 5,630,000$ 2.13–4.00%07/07/2016 02/01/2037 4,475,000
General obligation tax increment bonds
Tax Increment Bonds of 2017B 1,170,000$ 2.00–4.00%07/20/2017 02/01/2028 790,000
General obligation state aid street bonds
State Aid Street Bonds of 2007A 2,560,000$ 4.00–4.125%03/15/2007 04/01/2027 835,000
Lease revenue bonds
2016C Lease Revenue Bonds (Brookview
Community Center)17,410,000$ 2.00–4.00%10/19/2016 02/01/2037 14,215,000
Unamortized premiums 1,849,847
Compensated absences payable 1,609,482
Net pension liability – PERA 21,200,462
Total OPEB liability 3,045,439
Total governmental activity long-term liabilities 84,375,230
Business-type activities
General obligation revenue bonds
Utility Revenue Bonds of 2016D 2,580,000$ 2.13–3.00%10/19/2016 02/01/2037 2,215,000
Unamortized premiums 29,403
Total business-type activity long-term liabilities 2,244,403
Total government-wide long-term liabilities 86,619,633$
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NOTE 5 – LONG-TERM LIABILITIES (CONTINUED)
B. Descriptions of Long-Term Liabilities
• Special Assessment Bonds – These bonds are payable primarily from special assessments levied
on the properties benefiting from the improvements funded by these issues. Any deficiencies in
revenue to fund these issues will be provided from general property taxes.
• Street Reconstruction Bonds – The general obligation street reconstruction bonds, issued in
accordance with Minnesota Statutes § 475.58 to finance the cost of the Douglas Drive Street
Reconstruction Project, will be repaid primarily with ad valorem tax levies.
• Tax Increment Bonds – The City has established tax increment financing (TIF) districts and has
issued general obligation tax increment bonds in accordance with Minnesota Statutes, § 462.585
and § 273.77. It is anticipated that the tax increment revenues, derived from the captured assessed
value of property in the tax increment district, will provide substantially all funds necessary to
retire the bond principal and interest. In addition, future tax levies may be placed on the tax rolls
annually as scheduled for supplementary financing.
• State Aid Street Bonds – The general obligation state aid street bonds, issued in accordance with
Minnesota Statutes § 162.18 to finance various street improvements, will be repaid primarily with
state aid.
• HRA Lease Revenue Bonds – The 2016C Lease Revenue Bonds were issued to finance the
construction of the new Brookview Community Center. The bonds were issued by the HRA, a
blended component unit of the City. The funding for the debt is provided through a lease
agreement between the City (as lessee) and the HRA (as lessor), that requires the City to make
rental payments sufficient to pay the debt service on the bonds. Therefore, this bond issue has
been included as an obligation of the City. Title to the facility will transfer to the City upon
completion of the lease agreement and repayment of the related debt.
• Utility Revenue Bonds – These bonds were issued for improvements or projects that directly
benefit the Storm Sewer Utility Enterprise Fund and will be repaid from revenue sources of that
fund.
• Other Long-Term Liabilities – The City provides its employees with various benefits, including
compensated absences, pensions, and OPEB, as described elsewhere in these notes. These
benefits are paid from the Payroll Benefits Internal Service Fund.
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NOTE 5 – LONG-TERM LIABILITIES (CONTINUED)
C. Minimum Debt Payments
Minimum annual payments to retire outstanding bonds are as follows:
Year Ending
December 31,Principal Interest Principal Interest Principal Interest
2023 4,080,000$ 954,029$ 245,000$ 124,913$ 125,000$ 18,863$
2024 4,320,000 842,254 250,000 118,712 125,000 16,362
2025 4,400,000 730,138 260,000 111,063 130,000 12,513
2026 4,615,000 615,138 265,000 103,187 135,000 8,394
2027 3,700,000 500,807 275,000 96,462 135,000 5,187
2028–2032 8,225,000 1,447,871 1,475,000 371,894 140,000 1,750
2033–2037 4,735,000 606,474 1,705,000 131,175 – –
2038–2042 2,280,000 115,074 – – – –
36,355,000$ 5,811,785$ 4,475,000$ 1,057,406$ 790,000$ 63,069$
Year Ending
December 31,Principal Interest Principal Interest Principal Interest
2023 155,000$ 31,247$ 735,000$ 464,900$ 5,340,000$ 1,593,952$
2024 160,000 24,750 765,000 434,900 5,620,000 1,436,978
2025 165,000 18,047 795,000 407,675 5,750,000 1,279,436
2026 175,000 11,034 820,000 383,450 6,010,000 1,121,203
2027 180,000 3,713 845,000 358,475 5,135,000 964,644
2028–2032 – – 4,685,000 1,313,650 14,525,000 3,135,165
2033–2037 – – 5,570,000 427,500 12,010,000 1,165,149
2038–2042 – – – – 2,280,000 115,074
835,000$ 88,791$ 14,215,000$ 3,790,550$ 56,670,000$ 10,811,601$
Governmental Activities
General ObligationGeneral Obligation General Obligation
Tax Increment BondsSpecial Assessment Bonds Street Reconstruction Bonds
TotalLease Revenue Bonds
HRA
Governmental Activities
State Aid Street Bonds
General Obligation
Year Ending
December 31,Principal Interest
2023 125,000$ 54,950$
2024 130,000 52,400
2025 130,000 49,800
2026 135,000 47,150
2027 135,000 43,775
2028–2032 735,000 163,628
2033–2037 825,000 62,485
2,215,000$ 474,188$
Business-Type Activities
Utility Revenue Bonds
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NOTE 5 – LONG-TERM LIABILITIES (CONTINUED)
D. Revenue Pledged
Future revenue pledged for the payment of long-term debt is as follows:
Percent of Remaining Principal Pledged
Use of Total Term of Principal and Interest Revenue
Bond Issue Proceeds Type Debt Service Pledge and Interest Paid Received
Utility Revenue Bonds,Storm sewer
Series 2016D improvements Utility charges 100%2016–2037 2,689,188$ 186,600$ 2,775,129$
Revenue Pledged Current Year
E. Changes in Long-Term Debt
Beginning Due Within
of Year Additions Deletions End of Year One Year
Governmental activities
G.O. special assessment bonds 36,300,000$ 3,895,000$ 3,840,000$ 36,355,000$ 4,080,000$
G.O. street reconstruction bonds 4,715,000 – 240,000 4,475,000 245,000
G.O. tax increment bonds 915,000 – 125,000 790,000 125,000
G.O. state aid street bonds 985,000 – 150,000 835,000 155,000
HRA lease revenue bonds 14,925,000 – 710,000 14,215,000 735,000
Unamortized premiums 1,800,991 239,409 190,553 1,849,847 –
Compensated absences 1,636,179 1,234,062 1,260,759 1,609,482 1,327,391
Net pension liability – PERA 7,401,796 15,478,270 1,679,604 21,200,462 –
Total OPEB liability 1,873,222 1,340,545 168,328 3,045,439 –
Total governmental activities 70,552,188 22,187,286 8,364,244 84,375,230 6,667,391
Business-type activities
Utility revenue bonds 2,340,000 – 125,000 2,215,000 125,000
Unamortized premiums 31,460 – 2,057 29,403 –
Total business-type activities 2,371,460 – 127,057 2,244,403 125,000
Total 72,923,648$ 22,187,286$ 8,491,301$ 86,619,633$ 6,792,391$
F. Conduit Debt Obligations
At times, the City has issued various types of revenue bonds to provide financial assistance to private
sector, nonprofit, or governmental entities to finance the acquisition or 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, nor
any political subdivision thereof, is obligated in any manner for repayment of the bonds. Accordingly, the
bonds are not reported as liabilities in the City’s financial statements. As of December 31, 2022, the
following conduit debt issue was outstanding:
Number Principal
Type of Debt Year Issued of Issues Outstanding
Multi-family housing revenue bonds 2006 1 2,345,000$
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NOTE 6 – COMPONENTS OF FUND BALANCE
At December 31, 2022, the City had the following fund balances:
American Winnetka/
Rescue Street State Aid Street Medicine Lake
Plan Act Reconstruction Construction Reconstruction Tax Increment
General Special Revenue Debt Service Capital Project Capital Project Capital Project Nonmajor Total
Nonspendable
Prepaids 8,976$ –$ –$ –$ 57,870$ –$ 1,081$ 67,927$
Restricted
Debt service – – 9,987,005 – – – 1,748,044 11,735,049
Redevelopment – – – – – – 1,059,483 1,059,483 Street improvements – – – 3,995,039 5,622,279 – 945,019 10,562,337
Brookview Center – – – – – – 583,244 583,244
Lodging tax – – – – – – 28,400 28,400
Cemetery maintenance – – – – – – 92,870 92,870
DWI enforcement – – – – – – 23,780 23,780
VOTF – – – – – – 146,843 146,843
Youth recreation – – – – – – 25,437 25,437
American Rescue
Plan Act – 29,433 – – – – – 29,433
Total restricted – 29,433 9,987,005 3,995,039 5,622,279 – 4,653,120 24,286,876
Committed
Human service needs – – – – – – 169,113 169,113
Assigned
Street improvements – – – 363,628 982,694 – 70,928 1,417,250
Equipment replacement – – – – – – 3,690,368 3,690,368
Park improvements – – – – – – 1,265,369 1,265,369
Capital improvements – – – – – – 5,876,236 5,876,236
Cable improvements – – – – – – 113,966 113,966
Remote fire station 612,910 – – – – – – 612,910
Self-insurance 2,000,000 – – – – – – 2,000,000
Total assigned 2,612,910 – – 363,628 982,694 – 11,016,867 14,976,099
Unassigned 14,711,433 – – – – (28,978) – 14,682,455
Total 17,333,319$ 29,433$ 9,987,005$ 4,358,667$ 6,662,843$ (28,978)$ 15,840,181$ 54,182,470$ The City’s fund balance policy includes a goal of maintaining an unassigned fund balance in the General
Fund for working capital of 60 percent of the subsequent year’s adopted expenditures.
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NOTE 7 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN
A. Plan Description
The City provides post-employment insurance benefits to certain eligible employees through its OPEB
Plan, a single-employer defined benefit plan administered by the City. All post-employment benefits are
based on contractual agreements with employee groups. Eligibility for these benefits is based on years of
service and/or minimum age requirements. These contractual agreements do not include any specific
contribution or funding requirements. The Plan does not issue a publicly available financial report. No
plan assets are accumulated in a trust that meets the criteria in paragraph 4 of Governmental Accounting
Standards Board (GASB) Statement No. 75.
B. Benefits Provided
All retirees of the City upon retirement have the option under state law to continue their medical
insurance coverage through the City. For members of certain employee groups, the City pays for all or
part of the eligible retiree’s premiums for medical and/or dental insurance from the time of retirement
until the employee reaches the age of eligibility for Medicare. Benefits paid by the City differ by
bargaining unit and date of hire, with some contracts specifying a certain dollar amount per month, and
some covering premium costs as defined within each collective bargaining agreement. Retirees not
eligible for these city-paid premium benefits must pay the full city premium rate for their coverage.
The City is legally required to include any retirees for whom it provides health insurance coverage in the
same insurance pool as its active employees until the retiree reaches Medicare eligibility, whether the
premiums are paid by the City or the retiree. Consequently, participating retirees are considered to receive
a secondary benefit known as an “implicit rate subsidy.” This benefit relates to the assumption that the
retiree is receiving a more favorable premium rate than they would otherwise be able to obtain if
purchasing insurance on their own, due to being included in the same pool with the City’s younger and
statistically healthier active employees.
For police officers or firefighters disabled in the line-of-duty, Minnesota Statutes require the City to
continue payment of the employer’s contribution toward health coverage for the police officer or
firefighter and their spouse, if the spouse was covered at the time of disability, until age 65.
C. Contributions
The required contribution is based on projected pay-as-you-go financing requirements, with additional
amounts to prefund benefits as determined periodically by the City. The City’s current year required
pay-as-you-go contributions to finance the benefits described in the previous section totaled $168,328.
D. Membership
Membership in the Plan consisted of the following as of the latest actuarial valuation:
Retirees and beneficiaries receiving benefits 12
Active plan members 138
Total members 150
E. Total OPEB Liability of the City
The City’s total OPEB liability of $3,045,439 as of year-end was measured as of December 31, 2021 and
was determined by an actuarial valuation (census data) as of January 1, 2022.
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NOTE 7 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
F. Actuarial Methods and Assumptions
The total OPEB liability was determined using the entry-age normal cost method and the following
actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
Discount rate 2.06%
20-year municipal bond yield 2.06%
Inflation rate 2.50%
Healthcare cost trend rate 6.20%, grading to 3.90% over 54 years
Since the Plan is not funded by an irrevocable trust, the discount rate is equal to the 20-year municipal
bond yield rate of 2.06 percent, which was set by considering published rate information for 20-year high
quality, tax-exempt, general obligation municipal bonds as of the measurement date.
The actuarial assumptions used in the latest valuation were based on those used to value pension liabilities
for the state-wide PERA pension plans. The PERA plans base their assumptions on periodic experience
studies. Mortality rates were based on the mortality tables used in the PERA plan of which the employee,
retiree, or beneficiary is a participant.
Future retirees electing coverage is assumed to be 50 percent. Married future retirees electing spouse
coverage is assumed to be 35 percent (60 percent for police and fire personnel).
Assumption changes since the prior measurement date include the following:
• The discount rate was changed from 2.12 percent to 2.06 percent.
• The general inflation rate was changed from 2.00 percent to 2.50 percent.
• The healthcare trend rates, claims rates, and withdrawal, retirement, mortality, disability, and
salary scale assumptions, were updated for changes in recent studies and valuations.
• Future retiree and retiree spouse participation rates were updated based on analysis of past plan
experience.
• Future medical plan blending was updated based on an analysis of medical plan election rates as
of the valuation date.
G. Changes in the Total OPEB Liability
Total OPEB
Liability
Beginning balance – January 1, 2022 1,873,222$
Changes for the year
Service cost 161,504
Interest 41,206
Difference between estimated and actual experience 1,548,305
Changes of assumptions (396,763)
Benefit payments (182,035)
Total net changes 1,172,217
Ending balance – December 31, 2022 3,045,439$
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NOTE 7 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
H. Total OPEB Liability Sensitivity to Discount and Healthcare Cost Trend Rate Changes
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 percentage point lower or 1 percentage point
higher than the current discount rate:
Discount rate
Total OPEB liability 3,299,237$ 2,813,225$
1.06% 3.06%
1% Decrease in 1% Increase in
Discount Rate Discount Rate
Current
Discount Rate
3,045,439$
2.06%
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 percentage point lower or
1 percentage point higher than the current healthcare cost trend rates:
Healthcare cost trend rate
Total OPEB liability $ 2,799,504 $ 3,330,624
2.90% over 54 years 4.90% over 54 years3.90% over 54 years
$ 3,045,439
1% Decrease in 1% Increase in
Trend Rate Trend Rate
5.20%, decreasing to 7.20%, decreasing to
Healthcare Cost
Trend Rate
6.20%, decreasing to
Healthcare Cost Healthcare Cost
Current
I. OPEB Expense and Related Deferred Outflows of Resources and Deferred Inflows of Resources
The City recognized OPEB expense of $254,462 in 2022. As of year-end, the City reported deferred
outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual economic experience 1,420,351$ 423,535$
Changes in assumptions 209,787 421,897
Contributions subsequent to the measurement date 168,328 –
Total 1,798,466$ 845,432$
Deferred outflows of resources reported $168,328 related to OPEB resulting from city contributions
subsequent to the measurement date that will be recognized as a reduction of the net OPEB liability in the
year ending December 31, 2023. Other amounts reported as deferred outflows and inflows of resources
related to OPEB will be recognized in OPEB expense as follows:
Year Ending OPEB Expense
December 31,Amount
2023 $ 51,752
2024 $ 51,752
2025 $ 51,752
2026 $ 51,653
2027 $ 47,623
Thereafter $ 530,174
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NOTE 8 – PENSION PLANS SUMMARY
Employees of the City participate in three defined benefit pension plans. Two of the plans are state-wide, cost-sharing, multiple-employer defined benefit pension plans administered by the PERA of Minnesota:
the General Employees Retirement Fund (GERF) and the Public Employees Police and Fire Fund
(PEPFF). The third is a single-employer defined benefit pension plan administered through the Golden Valley Fire Department Relief Association (the Association). The following table summarizes the impact
of these plans on the City’s government-wide financial statements:
Total
GERF PEPFF Total GVFDRA All Plans
Net pension asset –$ –$ –$ 3,128,030$ 3,128,030$
Deferred outflows 3,356,260$ 8,120,804$ 11,477,064$ 357,857$ 11,834,921$
Net pension liability 9,995,080$ 11,205,382$ 21,200,462$ –$ 21,200,462$
Deferred inflows 136,263$ 983,188$ 1,119,451$ 1,500,586$ 2,620,037$
Pension expense 1,599,615$ 549,377$ 2,148,992$ 471,371$ 2,620,363$
State-Wide PERA Pension Plans
NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE
A. Plan Descriptions
The City participates in the following cost-sharing, multiple-employer defined benefit pension plans administered by the PERA of Minnesota. The PERA’s defined benefit pension plans are established and
administered in accordance with Minnesota Statutes, Chapters 353 and 356. The PERA’s defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code (IRC).
1. General Employees Retirement Fund (GERF)
All full-time and certain part-time employees of the City are covered by the GERF. The GERF
members belong to the Coordinated Plan. Coordinated Plan members are covered by Social
Security. 2. Public Employees Police and Fire Fund (PEPFF)
The Public Employees Police and Fire Fund (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 the PERA.
B. Benefits Provided The PERA provides retirement, disability, and death benefits. Benefit provisions are established by state
statutes 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 the PERA’s Coordinated Plan members. Members hired prior to July 1, 1989, receive the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members
hired after June 30, 1989. Under Method 1, the accrual rate for Coordinated Plan members is 1.2 percent for each of the first 10 years of service, and 1.7 percent for each additional year. Under Method 2, the accrual rate for Coordinated Plan members is 1.7 percent 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 age 66.
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NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
Benefit increases are provided to benefit recipients each January. The post-retirement increase is
equal to 50.0 percent of the cost of living adjustment (COLA) announced by the Social Security
Administration, with a minimum increase of at least 1.0 percent and a maximum of 1.5 percent.
Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30
before the effective date of the increase, will receive the full increase. Recipients receiving the
annuity or benefit for at least one month, but less than a full year as of the June 30 before the
effective date of the increase, will receive a reduced prorated increase. For members retiring on
January 1, 2024 or later, the increase will be delayed until normal retirement age (age 65 if hired
prior to July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring
under Rule of 90 are exempt from the delay to normal retirement.
2. PEPFF Benefits
Benefits for the PEPFF members first hired after June 30, 2010 but before July 1, 2014, vest on a
prorated basis from 50.0 percent after five years, up to 100.0 percent after 10 years of credited
service. Benefits for the PEPFF members first hired after June 30, 2014 vest on a prorated basis
from 50.0 percent after 10 years, up to 100.0 percent after 20 years of credited service. The
annuity accrual rate is 3.0 percent of average salary for each year of service. For Police and Fire
Plan members who were first hired prior to July 1, 1989, a full annuity is available when age plus
years of service equal at least 90.
Benefit increases are provided to benefit recipients each January. The post-retirement increase is
fixed at 1.0 percent. Recipients that have been receiving the annuity or benefit for at least
36 months as of the June 30 before the effective date of the increase, will receive the full increase.
Recipients receiving the annuity or benefit for at least 25 months, but less than 36 months as of
the June 30 before the effective date of the increase, will receive a reduced prorated increase.
C. Contributions
Minnesota Statutes, Chapter 353 sets the rates for employer and employee contributions. Contribution
rates can only be modified by the State Legislature.
1. GERF Contributions
Coordinated Plan members were required to contribute 6.50 percent of their annual covered
salary in fiscal year 2022, and the City was required to contribute 7.50 percent for Coordinated
Plan members. The City’s contributions to the GERF for the year ended December 31, 2022,
were $743,653. The City’s contributions were equal to the required contributions as set by state
statutes.
2. PEPFF Contributions
Police and Fire Plan members were required to contribute 11.80 percent of their annual covered
salary in fiscal year 2022, and the City was required to contribute 17.70 percent for Police and
Fire Plan members. The City’s contributions to the PEPFF for the year ended December 31, 2022,
were $532,121. The City’s contributions were equal to the required contributions as set by state
statutes.
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NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
D. Pension Costs
1. GERF Pension Costs
At December 31, 2022, the City reported a liability of $9,995,080 for its proportionate share of
the GERF’s net pension liability. The City’s net pension liability reflected a reduction, due to the
state of Minnesota’s contribution of $16.0 million. The state of Minnesota is considered a
nonemployer 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 $293,026. The net pension liability was measured as of June 30,
2022, and the total pension liability used to calculate the net pension liability was determined by
an actuarial valuation as of that date. The City’s proportion of the net pension liability was based
on the City’s contributions received by the PERA during the measurement period for employer
payroll paid dates from July 1, 2021 through June 30, 2022, relative to the total employer
contributions received from all of the PERA’s participating employers. The City’s proportionate
share was 0.1262 percent at the end of the measurement period and 0.1176 percent for the
beginning of the period.
The amount recognized by the City as its proportionate share of the net pension liability, the
direct aid, and total portion of the net pension liability that was associated with the City were as
follows:
City’s proportionate share of the net pension liability 9,995,080$
State’s proportionate share of the net pension liability
associated with the City 293,026$
For the year ended December 31, 2022, the City recognized pension expense of $1,555,830 for its
proportionate share of the GERF’s pension expense. In addition, the City recognized an
additional $43,785 as pension expense (and grant revenue) for its proportionate share of the state
of Minnesota’s contribution of $16.0 million to the GERF.
At December 31, 2022, the City reported its proportionate share of the GERF’s deferred outflows
of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual economic experience 83,486$ 99,283$
Changes in actuarial assumptions 2,112,576 36,980
Net collective difference between projected and actual
investment earnings 399,441 –
Changes in proportion 381,495 –
Contributions paid to the PERA subsequent to the
measurement date 379,262 –
Total 3,356,260$ 136,263$
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NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
A total of $379,262 reported as deferred outflows of resources related to pensions resulting from
city contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability in the year ending December 31, 2023. Other amounts reported as deferred
outflows and deferred inflows of resources related to pensions will be recognized in pension
expense as follows:
Pension
Year Ending Expense
December 31,Amount
2023 1,031,662$
2024 1,045,122$
2025 (139,955)$
2026 903,906$
2. PEPFF Pension Costs
At December 31, 2022, the City reported a liability of $11,205,382 for its proportionate share of
the PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2022,
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 the PERA during the measurement period for employer
payroll paid dates from July 1, 2021 through June 30, 2022, relative to the total employer
contributions received from all of the PERA’s participating employers. The City’s proportionate
share was 0.2575 percent at the end of the measurement period and 0.3083 percent for the
beginning of the period.
The state of Minnesota contributed $18.0 million to the PEPFF in the plan fiscal year ended
June 30, 2022. The contribution consisted of $9.0 million in direct state aid that does meet the
definition of a special funding situation and $9.0 million in supplemental state aid that does not
meet the definition of a special funding situation. The $9.0 million direct state aid was paid on
October 1, 2021. Thereafter, by October 1 of each year, the state will pay $9.0 million to the
PEPFF until full funding is reached or July 1, 2048, whichever is earlier. The $9.0 million in
supplemental state aid will continue until the fund is 90.0 percent funded, or until the State Patrol
Plan (administered by the Minnesota State Retirement System) is 90.0 percent funded, whichever
occurs later.
The state of Minnesota is included as a nonemployer contributing entity in the Police and Fire
Retirement Plan Schedule of Employer Allocations and Schedule of Pension Amounts by
Employer, Current Reporting Period Only (pension allocation schedules) for the $9.0 million in
direct state aid. Police and Fire Plan 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, 2022,
the City recognized pension expense of $454,406 for its proportionate share of the Police and Fire
Plan’s pension expense. The City recognized $94,971 as grant revenue for its proportionate share
of the state of Minnesota’s pension expense for the contribution of $9.0 million to the PEPFF.
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NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
The amount recognized by the City as its proportionate share of the net pension liability, the
direct aid, and total portion of the net pension liability that was associated with the City were as
follows:
City’s proportionate share of the net pension liability 11,205,382$
State’s proportionate share of the net pension liability
associated with the City 489,606$
The state of Minnesota is not included as a nonemployer contributing entity in the Police and Fire
Pension Plan pension allocation schedules for the $9.0 million in supplemental state aid. The City
recognized $23,175 for the year ended December 31, 2022 as revenue and an offsetting reduction
of net pension liability for its proportionate share of the state of Minnesota’s on-behalf
contributions to the PEPFF.
At December 31, 2022, the City reported its proportionate share of the PEPFF’s deferred outflows
of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual economic experience 743,505$ –$
Changes in actuarial assumptions 7,057,148 84,472
Net collective difference between projected and actual
investment earnings – 386,361
Changes in proportion 61,822 512,355
Contributions paid to the PERA subsequent to the
measurement date 258,329 –
Total 8,120,804$ 983,188$
A total of $258,329 reported as deferred outflows of resources related to pensions resulting from
city contributions subsequent to the measurement date that will be recognized as a reduction of
the net pension liability in the year ending December 31, 2023. Other amounts reported as
deferred outflows and deferred inflows of resources related to pensions will be recognized in
pension expense as follows:
Pension
Year Ending Expense
December 31,Amount
2023 $ 1,289,634
2024 $ 1,296,456
2025 $ 1,084,983
2026 $ 2,341,256
2027 $ 866,958
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NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
E. Long-Term Expected Return on Investments
The Minnesota State Board of Investment, which manages the investments of the 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 equity 33.50 %5.10 %
International equity 16.50 5.30 %
Fixed income 25.00 0.75 %
Private markets 25.00 5.90 %
Total 100.00 %
Allocation
Target
Real Rate of Return
Long-Term Expected
F. Actuarial Methods and Assumptions
The total pension liability in the June 30, 2022, actuarial valuation was determined using an individual
entry-age normal actuarial cost method. The long-term rate of return on pension plan investments used in
the determination of the total liability is 6.50 percent. This assumption is based on a review of inflation
and investments return assumptions from a number of national investment consulting firms. The review
provided a range of return investment return rates deemed to be reasonable by the actuary. An investment
return of 6.50 percent was deemed to be within that range of reasonableness for financial reporting
purposes.
Inflation is assumed to be 2.25 percent for the General Employees Plan and 2.25 percent for the Police
and Fire Plan. Benefit increases after retirement are assumed to be 1.25 percent for the General
Employees Plan. The Police and Fire Plan benefit increase is fixed at 1.00 percent per year and that
increase was used in the valuation.
Salary growth assumptions in the General Employees Plan range in annual increments from 10.25 percent
after one year of service to 3.00 percent after 27 years of service. In the Police and Fire Plan, salary
growth assumptions range from 11.75 percent after one year of service to 3.00 percent after 24 years of
service.
Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality
Table. Mortality rates for the Police and Fire Plan are based on the Pub-2010 Public Safety Employee
Mortality tables. The tables are adjusted slightly to fit the PERA’s experience.
Actuarial assumptions for the General Employees Plan are reviewed every four years. The most recent
four-year experience study for the General Employees Plan was completed in 2019. The assumption
changes were adopted by the Board and became effective with the July 1, 2020 actuarial valuation. The
most recent four-year experience study for the Police and Fire Plan was completed in 2020, adopted by
the Board, and became effective with the July 1, 2021 actuarial valuation.
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NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
The following changes in actuarial assumptions occurred in 2022:
1. GERF
CHANGES IN ACTUARIAL ASSUMPTIONS
• The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021.
2. PEPFF
CHANGES IN ACTUARIAL ASSUMPTIONS
• The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021.
• The single discount rate changed from 6.50 percent to 5.40 percent.
G. Discount Rate
The discount rate for the General Employees Plan used to measure the total pension liability in 2022 was
6.50 percent. The projection of cash flows used to determine the discount rate assumed that contributions
from plan members and employers will be made at rates set in Minnesota Statutes. Based on these
assumptions, the fiduciary net position of the General Employees Fund was projected to be available to
make all projected future benefit payments of current plan members. Therefore, the long-term expected
rate of return on pension plan investments was applied to all periods of projected benefit payments to
determine the total pension liability.
In the Police and Fire Fund, the fiduciary net position was projected to be available to make all projected
future benefit payments of current plan members through June 30, 2060. Beginning in fiscal year ended
June 30, 2061, projected benefit payments exceed the fund’s projected fiduciary net position. Benefit
payments projected after were discounted at the municipal bond rate of 3.69 percent (based on the weekly
rate closest to, but not later than, the measurement date of the Fidelity “20-Year Municipal GO AA
Index”). The resulting equivalent single discount rate of 5.40 percent for the Police and Fire Fund was
determined to give approximately the same present value of projected benefits when applied to all years
of projected benefits as the present value of projected benefits using 6.50 percent applied to all years of
projected benefits through the point of asset depletion and 3.69 percent thereafter.
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NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
H. Pension Liability Sensitivity
The following table 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:
GERF discount rate
City’s proportionate share of
the GERF net pension liability
PEPFF discount rate
City’s proportionate share of
the PEPFF net pension liability
1% Decrease in
Discount Rate
1% Increase in
Discount RateDiscount Rate
Current
16,957,910$ 6,554,809$
15,787,755$
11,205,382$
9,995,080$
5.50% 6.50% 7.50%
4.40% 5.40% 6.40%
5,244,196$
I. Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in a separately-issued
PERA financial report that includes financial statements and required supplementary information. That
report may be obtained on the internet at www.mnpera.org.
NOTE 10 – DEFINED CONTRIBUTION PENSION PLAN – STATE-WIDE
Councilmembers of the City are covered by the Public Employees Defined Contribution Plan (PEDCP), a
multiple-employer deferred compensation plan administered by the PERA. The PEDCP is a tax qualified
plan under Section 401(a) of the IRC, 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 5.00 percent of their 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, contributions 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, the PERA receives 2.00 percent of employer contributions and 25 hundredths
of 1.00 percent (0.25 percent) of the assets in each member’s account annually.
Total contributions made by the City during fiscal year 2022 were:
Required Rate
for Employees
Employee Employer Employee Employer and Employers
2,360$ 2,360$ 5.00%5.00%5.00%
Contribution Amount Percentage of Covered Payroll
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NOTE 11 – DEFINED BENEFIT PENSION PLAN – FIRE RELIEF ASSOCIATION
A. Plan Description
All members of the Golden Valley Fire Department (the Department) are covered by a defined benefit
plan administered by the Association. As of December 31, 2021, the measurement date of the most recent
actuarial valuation, the plan covered 47 active firefighters and 7 vested terminated firefighters whose
pension benefits are deferred. The plan is a single-employer retirement plan and is established and
administered in accordance with Minnesota Statutes, Chapter 69.
The Association maintains a separate Special Fund to accumulate assets to fund the retirement benefits
earned by the Department’s membership. Funding for the Association is derived from an insurance
premium tax in accordance with the Volunteer Firefighter’s Relief Association Financing Guidelines Act
of 1971 (Chapter 261 as amended by Chapter 509 of Minnesota Statutes 1980). Funds are also derived
from investment income.
B. Benefits Provided
A firefighter who completes at least 20 years as an active member of the Department is entitled, after
age 50, to a full service pension upon retirement.
The bylaws of the Association also provide for an early vested service pension for a retiring member who
has completed fewer than 20 years of service. The reduced pension, available to members with 10 years
of service, shall be equal to 60 percent of the pension as described by the bylaws. This percentage
increases 4 percent per year so that at 20 years of service, the full amount prescribed is paid. Members
who retire with less than 20 years of service and have reached the age of 50 years, and have completed at
least 10 years of active membership, are entitled to a reduced service pension not to exceed the amount
calculated by multiplying the member’s service pension for the completed years of service times the
applicable nonforfeitable percentage of pension.
C. Contributions
Minnesota Statutes, Chapters 424 and 424A authorize pension benefits for volunteer fire relief
associations. The plan is funded by fire state aid, investment earnings, and, if necessary, employer
contributions as specified in Minnesota Statutes and voluntary city contributions (if applicable). Required
employer contributions are calculated annually based on statutory provisions. The City’s
statutorily-required contributions to the plan for the year ended December 31, 2022, were $0. The City’s
contributions were equal to the required contributions as set by state statutes. The City made no voluntary
contributions to the plan. Furthermore, the firefighter has no obligation to contribute to the plan.
For the year ended December 31, 2022, the City recognized pension expense of $471,371. The City also
recognized $195,195 as revenue for the state of Minnesota’s on-behalf contributions to the Department.
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NOTE 11 – DEFINED BENEFIT PENSION PLAN – FIRE RELIEF ASSOCIATION
(CONTINUED)
D. Pension Costs
At December 31, 2022, the City reported a net pension liability (asset) of ($3,128,030) for the plan. The
net pension liability (asset) was measured as of December 31, 2021. The total pension liability used to
calculate the net pension liability (asset) in accordance with GASB Statement No. 68 was determined by
applying an actuarial formula to specific census data certified by the Department as of December 31,
2020.
The following table presents the changes in net pension liability (asset) during the year:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability (Asset)
(a)(b)(a-b)
Beginning balance – January 1, 2022 2,742,639$ 5,861,701$ (3,119,062)$
Changes for the year
Service cost 188,583 – 188,583
Interest on pension liability (asset)183,308 – 183,308
Changes in benefit terms 833,556 – 833,556
Contributions (state and local)– 194,195 (194,195)
Net investment income – 1,038,155 (1,038,155)
Benefit payments, including
member contribution refunds (222,200) (222,200) –
Administrative costs – (17,935) 17,935
Total net changes 983,247 992,215 (8,968)
Ending balance – December 31, 2022 3,725,886$ 6,853,916$ (3,128,030)$
At December 31, 2022, the City reported deferred inflows of resources and deferred outflows of resources
related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Difference between expected and actual liability 69,081$ 220,118$
Change of assumptions 77,247 14,807
Net difference between projected and actual earnings on
plan investments – 1,054,132
State aid to the City subsequent to the measurement date 211,529 211,529
Total 357,857$ 1,500,586$
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NOTE 11 – DEFINED BENEFIT PENSION PLAN – FIRE RELIEF ASSOCIATION
(CONTINUED)
Deferred outflows and inflows of resources totaling $211,529 related to pensions resulting from the City’s
contributions of state aid received and passed through to the plan subsequent to the measurement date will
be recognized in the year ending December 31, 2023. Other amounts reported as deferred outflows and
inflows of resources related to the plan will be recognized in pension expense as follows:
Pension
Year Ending Expense
December 31,Amount
2023 (279,650)$
2024 (407,215)$
2025 (249,733)$
2026 (137,468)$
2027 (21,064)$
Thereafter (47,599)$
E.Actuarial Methods and Assumptions
The total pension liability at the December 31, 2021 measurement date was determined using the
entry-age normal actuarial cost method and the following actuarial assumptions:
Retirement eligibility at 100 percent service pension at age 50 with 20 years of service,early
vested retirement at age 50 with 10 years of service,vested at 60 percent and increased by
4 percent for each additional year of service up to 20,and eligibility for deferred service
pension payable at age 50 with 20 years of service
Inflation rate 2.25% per year
Cost of living increases Zero percent per year
Investment rate of return 6.50%
20-year municipal bond yield 2.00%
Plan changes since the prior valuation include an increase in the annual lump sum pension benefit from
$9,200 to $12,200.
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NOTE 11 – DEFINED BENEFIT PENSION PLAN – FIRE RELIEF ASSOCIATION
(CONTINUED)
The 6.50 percent long-term expected rate of return on pension plan investments was determined using a
building-block method in which best-estimates for expected future real rates of return (expected returns,
net of inflation) were developed for each asset class using the plan’s target investment allocation, along
with long-term return expectations by asset class. Inflation expectations were applied to derive the
nominal rate of return for the portfolio.
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 equity 68.12 %4.90 %7.15 %
International equity 10.72 5.32 7.57
Fixed income 16.99 1.40 3.65
Real estate and alternatives 0.07 4.43 6.68
Cash and equivalents 4.10 0.09 0.23
Total 100.00 %6.50 %
Allocation
Target
Rate of Return
Expected Nominal
Long-TermLong-Term
Expected Real
Rate of Return
F. Discount Rate
The discount rate used to measure the total pension liability was 6.50 percent. The projection of cash
flows used to determine the discount rate assumed that contributions to the plan will be made as specified
in state statutes. Based on that assumption and considering the funding ratio of the plan, the fiduciary net
position was projected to be available to make all projected future benefit payments of current active and
inactive 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 (Asset) Sensitivity
The following presents the City’s net pension liability (asset) for the plan, calculated using the discount
rate disclosed in the preceding page, as well as what the City’s net pension liability (asset) would be if it
were calculated using a discount rate 1 percent lower or 1 percent higher than the current discount rate:
1% Decrease in Current 1% Increase in
Discount Rate Discount Rate Discount Rate
5.50%6.50%7.50%
Net pension liability (asset)(2,999,367)$ (3,128,030)$ (3,252,331)$
H. Pension Plan Fiduciary Net Position
The Association issues a publicly available financial report that includes financial statements and required
supplementary information. This report may be obtained at the Golden Valley City Hall.
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NOTE 12 – FLEXIBLE BENEFIT PLAN
The City offers three types of flexible spending accounts: medical premiums, medical expenses, and
dependent care expenses. Eligible employees can elect to participate by contributing pretax dollars
withheld from payroll checks to the plan for healthcare and dependent care benefits. Payments are made
from the plan to participating employees upon submitting a request for reimbursement of eligible
expenses actually incurred by the participant.
Before the beginning of the plan year, which is from January 1 to December 31, each participant
designates a total amount of pretax dollars to be contributed to the plan during the year. For the medical
expense account, the City is contingently liable for claims against the total amount of participants’ annual
contributions to the plan, whether or not such contributions have been made.
All plan activity is recorded in the City’s General Fund. Assets of the plan are held in the City’s payroll
checking account. Amounts withheld to pay for employee medical insurance premiums are administered
and paid out directly by the City’s finance department. Medical expense and dependent care expense
accounts are administered by the Stanton Group—a benefit consulting firm. Claims are made directly to
the Stanton Group by plan participants. The Stanton Group then reimburses the participants and bills the
City for these reimbursements.
All plan property and income attributable to that property is solely the property of the City subject to the
claims of the City’s general creditors. Participants’ rights under the plan are equal to those of general
creditors of the City in an amount equal to the eligible healthcare and dependent care expenses incurred
by the participants. The City believes it unlikely that it will use the assets to satisfy the claims of general
creditors in the future.
NOTE 13 – TAX INCREMENT FINANCING DISTRICTS AND TAX ABATEMENTS
The City is the administering authority for the following tax increment financing (TIF) districts:
North Wirth Highway 55 Cornerstone Winnetka/
Redevelopment West Creek Medicine Lake
District No. 1505 District No. 1506 District No. 1507 District No. 1508
Authorizing law M.S. 469 M.S. 469 M.S. 469 M.S. 469
Year established 2004 2013 2015 2015
First tax increment 2005 2017 2018 2018
Duration of district 25 years 15 years 25 years 25 years
Tax capacity – taxes payable 2022
Original 6,650$ 53,990$ 8,870$ 51,288$
Current 43,950 527,153 59,938 687,643
Captured – retained 37,300$ 473,163$ 51,068$ 636,355$
G.O. tax increment bonds issued –$ 1,170,000$ –$ –$
Principal payments – 380,000 – –
Outstanding at December 31, 2022 –$ 790,000$ –$ –$
The creation of TIF districts as authorized under Minnesota Statutes, Chapter 469.178, is a common
economic development vehicle used by the City to spur economic development and redevelopment. In
these districts, tax increment revenue is generated on the incremental increase in value of the improved
property above a base value established on the date that the TIF district is created, which may be used to
assist in financing the improvements to the property within the TIF district.
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NOTE 13 – TAX INCREMENT FINANCING DISTRICTS AND TAX ABATEMENTS
(CONTINUED)
The City may enter into private development and redevelopment agreements to encourage the
construction, expansion, or improvement of new or existing properties and buildings or clean-up and
redevelop blighted areas within these areas. These agreements may in substance be tax abatements
depending on their individual circumstances. The City currently has two such agreements that would be
considered a tax abatement under GASB Statement No. 77.
In 2009, the City entered into a development agreement with a private developer for a property in the
North Wirth Redevelopment Tax Increment District. As part of this agreement, the City has agreed to
reimburse the developer for certain environmental remediation costs through a pay-as-you-go tax
increment note. The note provides for the payment of principal equal to the developer’s costs, plus
interest at 6 percent. Payments of the note will be made at the lesser of the scheduled note payments or
the actual net tax increment received during the period specified in the agreement, ending February 1,
2027. The note will be cancelled at the end of the agreement term, whether it has been fully repaid or not.
This note is not included in the City’s long-term debt, because repayment is required only to the extent
sufficient tax increments are received. The City’s position is that this is an obligation to assign future and
uncertain revenue sources and, as such, is not actual debt in-substance. The outstanding principal balance
of this note as of December 31, 2022 is $80,571, and tax increment revenue rebated was $25,970 for
2022.
In 2015, the City entered into a development agreement with a private developer for a property in the
Highway 55 West Tax Increment District. As part of this agreement, the City has agreed to reimburse the
developer for certain environmental remediation costs through a pay-as-you-go tax increment note. The
note provides for the payment of principal equal to the developer’s costs, plus interest at 5.5 percent.
Payments of the note will be made at the lesser of the scheduled note payments or the actual net tax
increment received during the period specified in the agreement. The note will be cancelled at the end of
the agreement term, whether it has been fully repaid or not. This note is not included in the City’s
long-term debt, because repayment is required only to the extent sufficient tax increments are received.
The City’s position is that this is an obligation to assign future and uncertain revenue sources and, as
such, is not actual debt in-substance. The outstanding principal balance of this note as of December 31,
2022 is $1,836,529, and tax increment revenue rebated was $339,505 for 2022.
NOTE 14 – JOINT POWERS AGREEMENTS
A. Bassett Creek Water Management Commission
The City is a member of a joint powers agreement, together with the cities of Medicine Lake, Plymouth,
Robbinsdale, Minneapolis, Minnetonka, New Hope, Crystal, and St. Louis Park, which establishes the
authority for the Bassett Creek Water Management Commission (the Commission). The Commission was
created to provide for the improvement and development of Bassett Creek as a storm sewer to channel
storm waters from member communities to the Mississippi River. Each member city is entitled to appoint
one representative to the Commission. The nine-member commission develops a budget for the year each
July 1. Each member city contributes funds to cover the budgeted costs of the operations based half on the
assessed valuation of all taxable property, and half on the total area each member city has within the
boundaries of the watershed. Any capital costs incurred by the Commission are apportioned to the
members based half on the real property valuation of each member city within the watershed, and half on
the total area of each member city within the boundaries of the watershed.
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NOTE 14 – JOINT POWERS AGREEMENTS (CONTINUED)
The following financial information is from the Commission’s audited financial statements for the year
ended January 31, 2023, which are available at Golden Valley City Hall:
Total assets 7,781,319$
Total liabilities 1,382,898
Net position 6,398,421$
Revenue 2,661,103$
Expenses 2,337,988
Change in net position 323,115$
Of the total revenue, $565,998 represented assessments to member cities. The City’s portion was
$148,477, or 26.2 percent, of total assessments paid by members.
B. Joint Water Commission (JWC)
The City is a member of a joint powers agreement, together with the cities of Crystal and New Hope,
which established a JWC. The JWC was created in 1963 to provide for the creation and maintenance of a
joint water supply, storage, and distribution system through which water purchased from the City of
Minneapolis can be supplied to the population of the member cities.
Each member city is entitled to appoint one member to the JWC. Original construction costs were
allocated to the member cities based on percentages agreed upon in the joint powers agreement. All
subsequent operating and maintenance costs are apportioned to and paid by each member city on the basis
of water usage. Under the terms of the joint powers agreement, upon termination the accumulated assets
of the JWC shall be divided amongst the member cities in a manner to be determined and unanimously
approved by the member cities. Because the manner in which the JWC’s assets would be divided upon
termination is not specified, it is not practical for the City to determine its portion of JWC assets.
Therefore, the City’s Utility Enterprise Fund does not record any amount as an equity investment or
contributed capital (for construction costs paid by other funds) related to the JWC.
The following financial information is from the JWC’s audited financial statements for the year ended
December 31, 2021, the most recent available, which are available at Golden Valley City Hall:
Total assets 20,370,794$
Total liabilities 940,445
Net position 19,430,349$
Revenue 9,851,904$
Expenses 8,851,973
Change in net position 999,931$
Of the total revenues, $9,703,304 represented assessments paid by member cities. Of the total member
assessments, $3,757,336, or 38.7 percent, was paid by the City.
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NOTE 15 – CONTINGENCIES AND COMMITMENTS
A. Legal Claims
The City has the usual and customary type of miscellaneous legal claims pending at year-end. Although
the outcome of these lawsuits is not presently determinable, the City’s management believes that the City
will not incur any material monetary loss resulting from these claims. No loss has been recorded on the
City’s financial statements relating to these claims.
B. Federal and State Receivables
Amounts recorded or receivable from federal and state agencies are subject to agency audit and
adjustment. Any disallowed claims, including amounts already collected, may constitute a liability of the
applicable funds. The amount, if any, of claims which may be disallowed by the grantor agencies cannot
be determined at this time, although the City expects such amounts, if any, to be immaterial.
C. Tax Increment Districts
The City’s tax increment districts are subject to review by the Office of the State Auditor. Any disallowed
claims or misuse of tax increments could become a liability of the applicable fund. Management has
indicated that they are not aware of any instances of noncompliance, which would have a material effect
on the financial statements.
D. Construction Commitments
At December 31, 2022, the City is committed to various construction contracts for the improvement of
city property. The City’s remaining commitment under these contracts is approximately $1,241,046.
NOTE 16 – DEFICIT FUND BALANCES/NET POSITION
At December 31, 2022, the Winnetka/Medicine Lake Tax Increment Capital Project Fund reported a
deficit fund balance of $28,978. The deficit is due to project costs incurred in advance of funding and will
be eliminated through future tax increment revenues and other financing sources.
At December 31, 2022, the Payroll Benefits Internal Service Fund reported a deficit net position of
$10,246,986. The deficit is due to the fund reporting the City’s proportionate share of net pension
liabilities related to two state-wide, cost-sharing, multiple-employer defined benefit pension plans
administered by the PERA, as described earlier in these notes. This deficit will be eliminated through the
future funding of these liabilities.
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NOTE 17 – SUBSEQUENT EVENTS
A.Debt Issuance
In June 2023, the City approved the sale of $3,955,000 of General Obligation Improvement Bonds,
Series 2023A, which will be used to finance the City’s ongoing Pavement Management Program. The
bonds will bear coupon interest rates ranging from 4.00 percent to 5.00 percent, and have a final maturity
date of February 1, 2044.
B.New Tax Increment Financing District
In June 2023, the City’s HRA approved a new TIF (renewal and renovation) district within its Valley
Square Redevelopment Project Area, to finance eligible public costs for the development of a new
commercial building and a new apartment complex within the district. It is anticipated that development
will commence on these projects in 2023, with completion in 2026. Renewal and renovation districts may
remain in existence 15 years from the receipt of the first tax increment. The district’s first receipt of
increment has been elected to be delayed until taxes payable 2027, and the district is projected to remain
in existence for the maximum duration through the year 2042.
C.New Accounting Standards
A new standard was issued by the GASB for subscription-based information technology (IT)
arrangements (SBITAs). An SBITA is a contract that conveys control of the right to use another party’s
IT software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in
the contract for a period of time in an exchange-like transaction. At the commencement of the
subscription term, a government should recognize a subscription liability and an intangible right-to-use
asset. This standard will be adopted by the City beginning in 2023, and will require the restatement of
certain balances reported as of December 31, 2022. The effects of this change have not yet been
determined and are not reflected in these financial statements.
THIS PAGE INTENTIONALLY LEFT BLANK
REQUIRED SUPPLEMENTARY INFORMATION
Proportionate
Share of the
City’s Net Pension
Proportionate Liability and City’s
Share of the the City’s Proportionate Plan Fiduciary
State of Share of the Share of the Net Position
City’s City’s Minnesota’s State of Net Pension as a
PERA Fiscal Proportion Proportionate Proportionate Minnesota’s Liability as a Percentage
Year-End Date of the Net Share of the Share of the Share of the City’s Percentage of of the Total
(Measurement Pension Net Pension Net Pension Net Pension Covered Covered Pension
Date)Liability Liability Liability Liability Payroll Payroll Liability
06/30/2015 0.1085% 5,623,033$ –$ –$ 6,374,138$ 88.22% 78.20%
06/30/2016 0.1072% 8,704,108$ 113,679$ 8,817,787$ 6,649,482$ 130.90% 68.90%
06/30/2017 0.1107% 7,067,015$ 88,825$ 7,155,840$ 7,128,621$ 99.14% 75.90%
06/30/2018 0.1088% 6,035,778$ 198,039$ 6,233,817$ 7,313,615$ 82.53% 79.50%
06/30/2019 0.1132% 6,258,574$ 194,492$ 6,453,066$ 8,008,282$ 78.15% 80.20%
06/30/2020 0.1148% 6,882,784$ 212,348$ 7,095,132$ 8,189,223$ 84.05% 79.10%
06/30/2021 0.1176% 5,022,047$ 153,374$ 5,175,421$ 8,466,921$ 59.31% 87.00%
06/30/2022 0.1262% 9,995,080$ 293,026$ 10,288,106$ 9,452,797$ 105.74% 76.70%
Contributions Contributions
in Relation to as a
Statutorily the Statutorily Contribution Percentage
Required Required Deficiency Covered of Covered
Contributions Contributions (Excess)Payroll Payroll
509,632$ 509,632$ –$ 6,795,097$ 7.50%
507,606$ 507,606$ –$ 6,768,463$ 7.50%
522,131$ 522,131$ –$ 6,961,749$ 7.50%
580,703$ 580,703$ –$ 7,742,669$ 7.50%
611,979$ 611,979$ –$ 8,159,717$ 7.50%
621,390$ 621,390$ –$ 8,285,192$ 7.50%
665,363$ 665,363$ –$ 8,871,502$ 7.50%
743,653$ 743,653$ –$ 9,915,373$ 7.50%
Note:The City implemented GASB Statement No.68 in fiscal 2015 (using a June 30, 2015 measurement date). This schedule is intended to present
10-year trend information. Additional years will be added as they become available.
12/31/2016
CITY OF GOLDEN VALLEY
PERA – General Employees Retirement Fund
Schedule of City’s and Nonemployer Proportionate Share of Net Pension Liability
12/31/2015
12/31/2017
12/31/2018
12/31/2019
12/31/2020
Year Ended December 31, 2022
12/31/2021
12/31/2020
12/31/2022
City Fiscal
Year-End Date
City Fiscal
Year-End Date
12/31/2015
12/31/2016
Schedule of City Contributions
PERA – General Employees Retirement Fund
12/31/2017
Year Ended December 31, 2022
12/31/2018
12/31/2019
12/31/2021
12/31/2022
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Proportionate
Share of the
City’s Net Pension
Proportionate Liability and City’s
Share of the the City’s Proportionate Plan Fiduciary
State of Share of the Share of the Net Position
City’s City’s Minnesota’s State of Net Pension as a
PERA Fiscal Proportion Proportionate Proportionate Minnesota’s Liability as a Percentage
Year-End Date of the Net Share of the Share of the Share of the City’s Percentage of of the Total
(Measurement Pension Net Pension Net Pension Net Pension Covered Covered Pension
Date)Liability Liability Liability Liability Payroll Payroll Liability
06/30/2015 0.3230% 3,670,036$ –$ 3,670,036$ 2,955,388$ 124.18% 86.60%
06/30/2016 0.3190% 12,802,028$ –$ 12,802,028$ 3,072,358$ 416.68% 63.90%
06/30/2017 0.3190% 4,306,880$ –$ 4,306,880$ 3,274,040$ 131.55% 85.40%
06/30/2018 0.3157% 3,365,037$ –$ 3,365,037$ 3,327,398$ 101.13% 88.80%
06/30/2019 0.3331% 3,546,186$ –$ 3,546,186$ 3,511,202$ 101.00% 89.30%
06/30/2020 0.3216% 4,239,033$ 99,871$ 4,338,904$ 3,627,488$ 116.86% 87.20%
06/30/2021 0.3083% 2,379,749$ 106,967$ 2,486,716$ 3,643,415$ 65.32% 93.70%
06/30/2022 0.2575% 11,205,382$ 489,606$ 11,694,988$ 3,128,100$ 358.22% 70.50%
Contributions Contributions
in Relation to as a
Statutorily the Statutorily Contribution Percentage
Required Required Deficiency Covered of Covered
Contributions Contributions (Excess)Payroll Payroll
507,642$ 507,642$ –$ 3,133,590$ 16.20%
506,383$ 506,383$ –$ 3,125,427$ 16.20%
519,363$ 519,363$ –$ 3,205,941$ 16.20%
550,962$ 550,962$ –$ 3,400,997$ 16.20%
609,750$ 609,750$ –$ 3,597,346$ 16.95%
644,673$ 644,673$ –$ 3,642,224$ 17.70%
607,647$ 607,647$ –$ 3,433,032$ 17.70%
532,121$ 532,121$ –$ 3,006,333$ 17.70%
Note:The City implemented GASB Statement No.68 in fiscal 2015 (using a June 30,2015 measurement date).This schedule is intended to present
10-year trend information. Additional years will be added as they become available.
City Fiscal
Year-End Date
12/31/2015
12/31/2016
12/31/2017
12/31/2018
12/31/2019
12/31/2020
12/31/2017
12/31/2018
12/31/2019
12/31/2020
12/31/2016
12/31/2021
City Fiscal
12/31/2022
Year-End Date
12/31/2015
CITY OF GOLDEN VALLEY
PERA – Public Employees Police and Fire Fund
Schedule of City’s and Nonemployer Proportionate Share of Net Pension Liability
Year Ended December 31, 2022
PERA – Public Employees Police and Fire Fund
12/31/2021
Schedule of City Contributions
Year Ended December 31, 2022
12/31/2022
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City fiscal year ended December 31,2015 2016 2017 2018 2019 2020 2021 2022
year ended December 31,
(measurement date)2014 2015 2016 2017 2018 2019 2020 2021
Total pension liability
Service cost 158,309$ 162,663$ 169,611$ 165,540$ 174,845$ 171,251$ 183,925$ 188,583$
Interest 189,130 198,248 221,030 244,540 228,505 202,299 198,850 183,308
Difference between expected
and actual experience – – 175,353 – (124,858) – (183,732) –
Changes in assumptions – (44,179) – 24,168 60,574 – 38,609 –
Changes of benefit terms – – 69,254 – 78,567 120,568 120,267 833,556
Benefit payments (332,858) (110,208) (307,251) (328,180) (776,390) (361,231) (754,557) (222,200)
Net change in total
pension liability 14,581 206,524 327,997 106,068 (358,757) 132,887 (396,638) 983,247
Total pension liability –
beginning 2,709,977 2,724,558 2,931,082 3,259,079 3,365,147 3,006,390 3,139,277 2,742,639
Total pension liability – ending 2,724,558$ 2,931,082$ 3,259,079$ 3,365,147$ 3,006,390$ 3,139,277$ 2,742,639$ 3,725,886$
Plan fiduciary net position
Contributions (state and local)143,581$ 148,972$ 153,252$ 161,767$ 169,606$ 174,486$ 187,368$ 194,195$
Net investment income 335,884 (20,626) 414,106 849,121 (259,687) 1,092,687 893,892 1,038,155
Benefit payments (332,858) (110,208) (307,251) (328,180) (776,390) (361,231) (754,557) (222,200)
Administrative costs (16,509) (15,827) (16,889) (12,778) (18,459) (16,518) (15,442) (17,935)
Net change in plan
fiduciary net position 130,098 2,311 243,218 669,930 (884,930) 889,424 311,261 992,215
Total plan fiduciary
net position – beginning 4,500,389 4,630,487 4,632,798 4,876,016 5,545,946 4,661,016 5,550,440 5,861,701
Total plan fiduciary
net position – ending 4,630,487$ 4,632,798$ 4,876,016$ 5,545,946$ 4,661,016$ 5,550,440$ 5,861,701$ 6,853,916$
Net pension liability (asset)(1,905,929)$ (1,701,716)$ (1,616,937)$ (2,180,799)$ (1,654,626)$ (2,411,163)$ (3,119,062)$ (3,128,030)$
Plan fiduciary net position as a
percentage of the total
pension liability 169.95%158.06%149.61%164.81%155.04%176.81%213.72%183.95%
Note: The City implemented GASB Statement No.68 in fiscal 2015 (using a December 31,2014 measurement date).This schedule is intended to present 10-year
trend information. Additional years will be added as they become available.
CITY OF GOLDEN VALLEY
Department Relief Association
Golden Valley Fire
Year Ended December 31, 2022
Schedule of Changes in Net Pension Asset and Related Ratios
Golden Valley Fire Department Relief Association
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Nonemployer
Statutorily Contribution
Required Actual Contribution State 2%
Contributions Contributions Excess Fire Aid
1,141$ 1,141$ –$ 142,440$
–$ –$ –$ 148,972$
–$ –$ –$ 153,252$
–$ –$ –$ 161,767$
–$ –$ –$ 169,606$
–$ –$ –$ 174,486$
–$ –$ –$ 187,368$
–$ –$ –$ 194,195$
–$ –$ –$ 211,529$
Note:
2017
2018
2016
City Fiscal
Year Ended
December 31,
2014
2015
Year Ended December 31, 2022
CITY OF GOLDEN VALLEY
Golden Valley Fire Department Relief Association
Schedule of City Contributions and Nonemployer Contributing Entities
City Contributions
2019
2020
2021
2022
The City implemented GASB Statement No.68 in fiscal 2015 (using a December 31,2014 measurement date).This
schedule is intended to present 10-year trend information. Additional years will be added as they become available.
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City fiscal year ended December 31,2018 2019 2020 2021 2022
Measurement period – December 31,2017 2018 2019 2020 2021
Total OPEB liability
Service cost 133,055$ 144,892$ 110,996$ 131,927$ 161,504$
Interest 71,708 72,136 84,722 48,057 41,206
Differences between expected
and actual experience – – (620,986) 4,583 1,548,305
Changes of assumptions 50,539 (101,648) 125,655 122,651 (396,763)
Benefit payments (72,237) (62,128) (81,242) (89,561) (182,035)
Net change in total OPEB liability 183,065 53,252 (380,855) 217,657 1,172,217
Total OPEB liability – beginning of year 1,800,103 1,983,168 2,036,420 1,655,565 1,873,222
Total OPEB liability – end of year 1,983,168$ 2,036,420$ 1,655,565$ 1,873,222$ 3,045,439$
Covered-employee payroll 9,700,000$ 10,100,000$ 10,100,000$ 10,100,000$ 14,000,000$
Total OPEB liability as a percentage
of covered-employee payroll 20.45%20.16%16.39%18.55%21.75%
OPEB Liability and Related Ratios
Schedule of Changes in the City’s Total
Other Post-Employment Benefits Plan
CITY OF GOLDEN VALLEY
Note 2:
Note 1:
Year Ended December 31, 2022
There are no plan assets accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No.75 to
pay these benefits.
The City implemented GASB Statement No.75 in fiscal 2018.This schedule is intended to present 10-year trend
information. Additional years will be added as they become available.
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CITY OF GOLDEN VALLEY
Notes to Required Supplementary Information
December 31, 2022
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PERA – GENERAL EMPLOYEES RETIREMENT FUND
2022 CHANGES IN ACTUARIAL ASSUMPTIONS
• The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021.
2021 CHANGES IN ACTUARIAL ASSUMPTIONS
• The investment return and single discount rates were changed from 7.50 percent to
6.50 percent, for financial reporting purposes.
• The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020.
2020 CHANGES IN ACTUARIAL ASSUMPTIONS
• The price inflation assumption was decreased from 2.50 percent to 2.25 percent.
• The payroll growth assumption was decreased from 3.25 percent to 3.00 percent.
• Assumed salary increase rates were changed as recommended in the June 30, 2019 experience
study. The net effect is assumed rates that average 0.25 percent less than previous rates.
• Assumed rates of retirement were changed as recommended in the June 30, 2019 experience
study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90
and early retirements.
• Assumed rates of termination were changed as recommended in the June 30, 2019 experience
study. The new rates are based on service and are generally lower than the previous rates for
years two through five, and slightly higher thereafter.
• Assumed rates of disability were changed as recommended in the June 30, 2019 experience
study. The change results in fewer predicted disability retirements for males and females.
• The base mortality table for healthy annuitants and employees was changed from the RP-2014
Table to the Pub-2010 General Mortality Table, with adjustments. The base mortality table for
disabled annuitants was changed from the RP-2014 Disabled Annuitant Mortality Table to the
Pub-2010 General/Teacher Disabled Annuitant Mortality Table, with adjustments.
• The mortality improvement scale was changed from MP-2018 to 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 100.00 percent joint and
survivor option changed from 35.00 percent to 45.00 percent. The assumed number of married
female new retirees electing the 100.00 percent joint and survivor option changed from
15.00 percent to 30.00 percent. The corresponding number of married new retirees electing the
life annuity option was adjusted accordingly.
2020 CHANGES IN PLAN PROVISIONS
• Augmentation for current privatized members was reduced to 2.00 percent for the period
July 1, 2020 through December 31, 2023, and zero percent thereafter. Augmentation was
eliminated for privatizations occurring after June 30, 2020.
CITY OF GOLDEN VALLEY
Notes to Required Supplementary Information (continued)
December 31, 2022
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PERA – GENERAL EMPLOYEES RETIREMENT FUND (CONTINUED)
2019 CHANGES IN ACTUARIAL ASSUMPTIONS
• The mortality projection scale was changed from MP-2017 to MP-2018.
2019 CHANGES IN PLAN PROVISIONS
• The employer supplemental contribution was changed prospectively, decreasing from
$31.0 million to $21.0 million per year. The state’s special funding contribution was changed
prospectively, requiring $16.0 million due per year through 2031.
2018 CHANGES IN ACTUARIAL ASSUMPTIONS
• The mortality projection scale was changed from MP-2015 to MP-2017.
• The assumed benefit increase was changed from 1.00 percent per year through 2044, and
2.50 percent per year thereafter, to 1.25 percent per year.
2018 CHANGES IN PLAN PROVISIONS
• The augmentation adjustment in early retirement factors is eliminated over a five-year period
starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024.
• Interest credited on member contributions decreased from 4.00 percent to 3.00 percent,
beginning July 1, 2018.
• Deferred augmentation was changed to zero percent, effective January 1, 2019. Augmentation
that has already accrued for deferred members will still apply.
• Contribution stabilizer provisions were repealed.
• Post-retirement benefit increases were changed from 1.00 percent per year with a provision to
increase to 2.50 percent upon attainment of 90.00 percent funding ratio to 50.00 percent of the
Social Security Cost of Living Adjustment, not less than 1.00 percent and not more than
1.50 percent, beginning January 1, 2019.
• For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree
reaches normal retirement age; does not apply to Rule of 90 retirees, disability benefit
recipients, or survivors.
• Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions.
CITY OF GOLDEN VALLEY
Notes to Required Supplementary Information (continued)
December 31, 2022
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PERA – GENERAL EMPLOYEES RETIREMENT FUND (CONTINUED)
2017 CHANGES IN ACTUARIAL ASSUMPTIONS
• The Combined Service Annuity (CSA) loads were changed from 0.80 percent for active
members and 60.00 percent for vested and nonvested deferred members. The revised CSA
loads are now zero percent for active member liability, 15.00 percent for vested deferred
member liability, and 3.00 percent for nonvested deferred member liability.
• The assumed post-retirement benefit increase rate was changed from 1.00 percent per year for
all years, to 1.00 percent per year through 2044, and 2.50 percent per year thereafter.
2017 CHANGES IN PLAN PROVISIONS
• The state’s contribution for the Minneapolis Employees Retirement Fund equals $16.0 million
in 2017 and 2018, and $6.0 million thereafter.
• The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund
changed from $21.0 million to $31.0 million in calendar years 2019 to 2031. The state’s
contribution changed from $16.0 million to $6.0 million in calendar years 2019 to 2031.
2016 CHANGES IN ACTUARIAL ASSUMPTIONS
• The assumed post-retirement benefit increase rate was changed from 1.00 percent per year
through 2035, and 2.50 percent per year thereafter, to 1.00 percent per year for all years.
• The assumed investment return was changed from 7.90 percent to 7.50 percent. The single
discount rate changed from 7.90 percent to 7.50 percent.
• Other assumptions were changed pursuant to the experience study June 30, 2015. The assumed
future salary increases, payroll growth, and inflation were decreased by 0.25 percent to
3.25 percent for payroll growth, and 2.50 percent for inflation.
2015 CHANGES IN ACTUARIAL ASSUMPTIONS
• The assumed post-retirement benefit increase rate was changed from 1.00 percent per year
through 2030, and 2.50 percent per year thereafter, to 1.00 percent per year through 2035, and
2.50 percent per year thereafter.
2015 CHANGES IN PLAN PROVISIONS
• On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General
Employees Fund, which increased the total pension liability by $1.1 billion and increased the
fiduciary plan net position by $892.0 million. Upon consolidation, state and employer
contributions were revised; the state’s contribution of $6.0 million, which meets the special
funding situation definition, was due September 2015.
CITY OF GOLDEN VALLEY
Notes to Required Supplementary Information (continued)
December 31, 2022
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PERA – PUBLIC EMPLOYEES POLICE AND FIRE FUND
2022 CHANGES IN ACTUARIAL ASSUMPTIONS
• The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021.
• This single discount rate changed from 6.50 percent to 5.40 percent.
2021 CHANGES IN ACTUARIAL ASSUMPTIONS
• The investment return and single discount rates were changed from 7.50 percent to
6.50 percent, for financial reporting purposes.
• The inflation assumption was changed from 2.50 percent to 2.25 percent.
• The payroll growth assumption was changed from 3.25 percent to 3.00 percent.
• The base mortality table for healthy annuitants and employees was changed from the RP-2014
Table to the Pub-2010 Public Safety Mortality Table. The mortality improvement scale was
changed from MP-2019 to MP-2020.
• The base mortality table for disabled annuitants was changed from the RP-2014 Healthy
Annuitant Mortality Table (with future mortality improvement according to Scale MP-2019)
to the Pub-2010 Public Safety Disabled Annuitant Mortality Table (with future mortality
improvement according to Scale MP-2020).
• Assumed rates of salary increase were modified as recommended in the July 14, 2020
experience study. The overall impact is a decrease in gross salary increase rates.
• Assumed rates of retirement were changed as recommended in the July 14, 2020 experience
study. The changes result in slightly more unreduced retirements and fewer assumed early
retirements.
• Assumed rates of withdrawal were changed from select and ultimate rates to service-based
rates. The changes result in more assumed terminations.
• Assumed rates of disability were increased for ages 25–44 and decreased for ages over 49.
Overall, proposed rates result in more projected disabilities.
• Assumed percent married for active female members was changed from 60 percent to
70 percent. Minor changes to form of payment assumptions were applied.
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.
CITY OF GOLDEN VALLEY
Notes to Required Supplementary Information (continued)
December 31, 2022
-84-
PERA – PUBLIC EMPLOYEES POLICE AND FIRE FUND (CONTINUED)
2018 CHANGES IN ACTUARIAL ASSUMPTIONS
• The mortality projection scale was changed from MP-2016 to MP-2017.
2018 CHANGES IN PLAN PROVISIONS
• Post-retirement benefit increases were changed to 1.00 percent for all years, with no trigger.
• An end date of July 1, 2048 was added to the existing $9.0 million state contribution.
• New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9.0 million
thereafter, until the plan reaches 100.00 percent funding, or July 1, 2048, if earlier.
• Member contributions were changed from 10.80 percent to 11.30 percent of pay, effective
January 1, 2019, and 11.80 percent of pay, effective January 1, 2020.
• Employer contributions were changed from 16.20 percent to 16.95 percent of pay, effective
January 1, 2019, and 17.70 percent of pay, effective January 1, 2020.
• Interest credited on member contributions decreased from 4.00 percent to 3.00 percent,
beginning July 1, 2018.
• Deferred augmentation was changed to zero percent, effective January 1, 2019. Augmentation
that has already accrued for deferred members will still apply.
• Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions.
2017 CHANGES IN ACTUARIAL ASSUMPTIONS
• Assumed salary increases were changed as recommended in the June 30, 2016 experience
study. The net effect is proposed rates that average 0.34 percent lower than the previous rates.
• Assumed rates of retirement were changed, resulting in fewer retirements.
• The CSA load was 30.00 percent for vested and nonvested deferred members. The CSA has
been changed to 33.00 percent for vested members, and 2.00 percent for nonvested 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 3.00 percent for the first three years of service.
Rates beyond the select period of three years were adjusted, resulting in more expected
terminations overall.
• Assumed percentage of married female members was decreased from 65.00 percent to
60.00 percent.
• Assumed age difference was changed from separate assumptions for male members (wives
assumed to be three years younger) and female members (husbands assumed to be four years
older) to the assumption that males are two years older than females.
• The assumed percentage of female members electing joint and survivor annuities was
increased.
• The assumed post-retirement benefit increase rate was changed from 1.00 percent for all years,
to 1.00 percent per year through 2064, and 2.50 percent thereafter.
• The single discount rate was changed from 5.60 percent per annum to 7.50 percent per annum.
CITY OF GOLDEN VALLEY
Notes to Required Supplementary Information (continued)
December 31, 2022
-85-
PERA – PUBLIC EMPLOYEES POLICE AND FIRE FUND (CONTINUED)
2016 CHANGES IN ACTUARIAL ASSUMPTIONS
• The assumed post-retirement benefit increase rate was changed from 1.00 percent per year
through 2037, and 2.50 percent per year thereafter, to 1.00 percent per year for all future years.
• The assumed investment return was changed from 7.90 percent to 7.50 percent.
• The single discount rate changed from 7.90 percent to 5.60 percent.
• The assumed future salary increases, payroll growth, and inflation were decreased by
0.25 percent to 3.25 percent for payroll growth, and 2.50 percent for inflation.
2015 CHANGES IN ACTUARIAL ASSUMPTIONS
• The assumed post-retirement benefit increase rate was changed from 1.00 percent per year
through 2030, and 2.50 percent per year thereafter, to 1.00 percent per year through 2037, and
2.50 percent per year thereafter.
2015 CHANGES IN PLAN PROVISIONS
• The post-retirement benefit increase to be paid after attainment of the 90.00 percent funding
threshold was changed from inflation up to 2.50 percent, to a fixed rate of 2.50 percent.
CITY OF GOLDEN VALLEY
Notes to Required Supplementary Information (continued)
December 31, 2022
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GOLDEN VALLEY FIRE DEPARTMENT RELIEF ASSOCIATION
2022 CHANGES IN PLAN PROVISIONS
• The plan benefit level increased from $9,200 to $12,200 per year of service.
2021 CHANGES IN ACTUARIAL ASSUMPTIONS
• The expected investment return and discount rate decreased from 6.75 percent to 6.50 percent
to reflect updated market assumptions.
• The mortality assumptions were updated from the rates used in the July 1, 2018 Minnesota
PERA PEPFF actuarial valuation to the ratios used in the July 1, 2020 Minnesota PERA PEPFF
actuarial valuation.
• The inflation assumption decreased from 2.50 percent to 2.25 percent.
2021 CHANGES IN PLAN PROVISIONS
• The plan benefit level increased from $8,700 to $9,200 per year of service.
2020 CHANGES IN PLAN PROVISIONS
• The plan benefit level increased from $8,300 to $8,700 per year of service.
2019 CHANGES IN ACTUARIAL ASSUMPTIONS
• The actuarial assumptions for the single discount rate decreased from 7.25 percent to
6.75 percent.
• The inflation assumption was updated from 2.75 percent to 2.50 percent.
• The mortality and withdrawal assumptions were updated to the rates used in the July 1, 2018
Minnesota PERA Minnesota Police and Fire Plan actuarial valuation.
2019 CHANGES IN PLAN PROVISIONS
• The plan benefit level increased from $8,000 to $8,300 per year of service.
2018 CHANGES IN ACTUARIAL ASSUMPTIONS
• The actuarial assumptions for the single discount rate decreased from 7.50 percent to
7.25 percent.
2017 CHANGES IN PLAN PROVISIONS
• The plan benefit level increased from $7,500 to $8,000 per year of service.
CITY OF GOLDEN VALLEY
Notes to Required Supplementary Information (continued)
December 31, 2022
-87-
GOLDEN VALLEY FIRE DEPARTMENT RELIEF ASSOCIATION (CONTINUED)
2016 CHANGES IN ACTUARIAL ASSUMPTIONS
• The actuarial assumptions for the single discount rate increased from 7.00 percent to
7.50 percent.
CITY OF GOLDEN VALLEY
Notes to Required Supplementary Information (continued)
December 31, 2022
-88-
OTHER POST-EMPLOYMENT BENEFIT PLAN
2022 CHANGES IN ACTUARIAL ASSUMPTIONS
The discount rate was changed from 2.12 percent to 2.06 percent.
The general inflation rate was changed from 2.00 percent to 2.50 percent.
The healthcare trend rates, claims rates, and withdrawal, retirement, mortality, disability, and
salary scale assumptions were updated for changes in recent studies and valuations.
Future retiree and retiree spouse participation rates were updated based on analysis of past plan
experience.
Future medical plan blending was updated based on an analysis of medical plan election rates
as of the valuation date.
2021 CHANGES IN ACTUARIAL ASSUMPTIONS
The actuarial assumptions for the single discount rate decreased from 2.74 percent to
2.12 percent.
2020 CHANGES IN ACTUARIAL ASSUMPTIONS
The actuarial assumptions for the single discount rate decreased from 4.09 percent to
2.74 percent.
The healthcare cost trend rate, mortality tables, and payroll growth rates were updated for
changes in recent experience studies and inflationary adjustments since the previous valuation.
2019 CHANGES IN ACTUARIAL ASSUMPTIONS
The actuarial assumptions for the single discount rate increased from 3.44 percent to
4.09 percent.
2018 CHANGES IN ACTUARIAL ASSUMPTIONS
The actuarial assumptions for the single discount rate decreased from 4.50 percent to
3.44 percent.
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SUPPLEMENTARY INFORMATION
THIS PAGE INTENTIONALLY LEFT BLANK
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NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Community Services Commission – used to account for fundraising and pull-tab gambling proceeds
remitted to the City by various nonprofit organizations that run charitable gambling operations within the
City’s limits. The monies are committed to support organizations or programs that address human service
needs in the City.
Cemetery – used to account for monies received from cemetery plot sales. These funds are restricted for
maintenance of the City-owned cemetery.
DWI Enforcement – used to account for monies received from DWI-related fines and forfeitures. These
funds are restricted for DWI enforcement and education.
VOTF – used to account for grants and other funding restricted for the Violent Offenders Task Force.
HRA General – used to account for the general activities of the City’s HRA, a blended component unit.
Brookview – used to account for the revenues and expenditures of the Brookview Community Center
facility.
Lodging Tax – used to account for lodging taxes submitted by hotels and motels in the City and the
disbursement of those taxes.
Noah Joynes Youth Recreation – used to account for contributions to the City’s parks and recreation
department to provide assistance in supporting youth programs.
DEBT SERVICE FUNDS
Brookview Lease Revenue Bonds – used to account for accumulation of, resources for, and payment of
debt service on bonds sold to finance the construction of the Brookview Community Center.
Douglas Drive Reconstruction Bonds – used to account for accumulation of, resources for, and payment
of debt service on bonds sold to finance the reconstruction of Douglas Drive.
Highway 55 West Bonds – used to account for accumulation of, resources for, and payment of debt
service on bonds sold to finance improvements on Highway 55 West.
-90-
CAPITAL PROJECT FUNDS
Building Fund – used to provide financing for major capital improvements made to the City’s buildings.
Cable Improvement Fund – used to provide for the ongoing capital equipment needs necessary to
support cable television public access and local programming.
Park Capital Improvement Fund – used to provide financing for major improvements to the City’s
parks and open space areas.
Equipment Replacement Fund – used to provide financing for major vehicle and equipment purchases
for the City’s General Fund divisions.
HRA Capital Project Funds – used to account for the activity of the City’s HRA housing program and
the redevelopment activity in the City’s tax increment districts: North Wirth No. 1505, Highway 55 West
No. 1506, and Cornerstone Creek No. 1507.
Capital Improvement Fund – This fund is used to provide financing for major street and streetlight
projects in the City, including a portion of the Street Reconstruction Program.
Douglas Drive Improvement Fund – used to account for street improvements related to Douglas Drive.
Special Revenue Debt Service Capital Project Totals
Assets
Cash and temporary investments 1,294,547$ 1,750,019$ 12,962,380$ 16,006,946$
Receivables
Special assessments – 149,885 67,560 217,445
Accounts 130,501 – – 130,501
Due from other funds – – 182,340 182,340
Advances to other funds – – 360,000 360,000
Due from other governmental units – – 1,180 1,180
Prepaids 1,081 – – 1,081
Total assets 1,426,129$ 1,899,904$ 13,573,460$ 16,899,493$
Liabilities
Accounts payable 21,532$ 1,975$ 54,145$ 77,652$
Contracts payable – – 33,355 33,355
Due to other governmental units 25,519 – 5,529 31,048
Deposits 180,475 – 519,337 699,812
Total liabilities 227,526 1,975 612,366 841,867
Deferred inflows of resources
Unavailable revenue – special assessments – 149,885 67,560 217,445
Fund balances
Nonspendable 1,081 – – 1,081
Restricted 1,028,409 1,748,044 1,876,667 4,653,120
Committed 169,113 – – 169,113
Assigned – – 11,016,867 11,016,867
Total fund balances 1,198,603 1,748,044 12,893,534 15,840,181
Total liabilities, deferred inflows of
resources, and fund balances 1,426,129$ 1,899,904$ 13,573,460$ 16,899,493$
CITY OF GOLDEN VALLEY
Nonmajor Governmental Funds
Combining Balance Sheet
December 31, 2022
-91-
THIS PAGE INTENTIONALLY LEFT BLANK
Special Revenue Debt Service Capital Project Totals
Revenue
Ad valorem taxes –$ 1,218,300$ 213,241$ 1,431,541$
Tax increments – – 699,071 699,071
Special assessments – 38,990 16,096 55,086
Franchise taxes – 370,000 200,000 570,000
Intergovernmental revenue 169,090 – 116,042 285,132
Charges for services 479,535 – 68,676 548,211
Investment income (charges)(34,081) (31,821) (484,835) (550,737)
Other revenue
Lawful gambling proceeds 54,089 – – 54,089
Contributions 30,327 – 840,440 870,767
Miscellaneous 30,843 – 43,322 74,165
Total revenue 729,803 1,595,469 1,712,053 4,037,325
Expenditures
Current
General government 71,628 – – 71,628
Public safety 18,420 – – 18,420
Parks and recreation 396,263 – – 396,263
Capital outlay – – 4,720,318 4,720,318
Debt service
Principal – 1,155,000 – 1,155,000
Interest and fiscal charges – 662,610 – 662,610
Total expenditures 486,311 1,817,610 4,720,318 7,024,239
Excess (deficiency) of revenue
over expenditures 243,492 (222,141) (3,008,265) (2,986,914)
Other financing sources (uses)
Sale of capital assets – – 192,330 192,330
Transfers in – – 2,075,000 2,075,000
Transfers (out)(25,000) – – (25,000)
Total other financing sources (uses)(25,000) – 2,267,330 2,242,330
Net change in fund balances 218,492 (222,141) (740,935) (744,584)
Fund balances
Beginning of year 980,111 1,970,185 13,634,469 16,584,765
End of year 1,198,603$ 1,748,044$ 12,893,534$ 15,840,181$
CITY OF GOLDEN VALLEY
Nonmajor Governmental Funds
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances
Year Ended December 31, 2022
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Community
Services DWI
Commission Cemetery Enforcement VOTF
Assets
Cash and temporary investments 167,830$ 92,870$ 29,074$ 146,843$
Receivables
Accounts 8,512 – – –
Prepaids 700 – – –
Total assets 177,042$ 92,870$ 29,074$ 146,843$
Liabilities
Accounts payable 7,229$ –$ 3,665$ –$
Due to other governmental units – – 1,629 –
Deposits – – – –
Total liabilities 7,229 – 5,294 –
Fund balances
Nonspendable for prepaids 700 – – –
Restricted for cemetery maintenance – 92,870 – –
Restricted for DWI enforcement – – 23,780 –
Restricted for VOTF – – – 146,843
Restricted for redevelopment – – – –
Restricted for Brookview – – – –
Restricted for lodging tax – – – –
Restricted for youth recreation – – – –
Committed for human service needs 169,113 – – –
Total fund balances 169,813 92,870 23,780 146,843
Total liabilities and fund balances 177,042$ 92,870$ 29,074$ 146,843$
CITY OF GOLDEN VALLEY
Nonmajor Special Revenue Funds
Combining Balance Sheet
December 31, 2022
-93-
Noah Joynes
HRA Lodging Youth
General Brookview Tax Recreation Totals
135,902$ 652,162$ 44,549$ 25,317$ 1,294,547$
– 112,163 9,826 – 130,501
– 381 – – 1,081
135,902$ 764,706$ 54,375$ 25,317$ 1,426,129$
–$ 1,303$ 9,335$ –$ 21,532$
– 7,250 16,640 – 25,519
8,067 172,528 – (120) 180,475
8,067 181,081 25,975 (120) 227,526
– 381 – – 1,081
– – – – 92,870
– – – – 23,780
– – – – 146,843
127,835 – – – 127,835
– 583,244 – – 583,244
– – 28,400 – 28,400
– – – 25,437 25,437
– – – – 169,113
127,835 583,625 28,400 25,437 1,198,603
135,902$ 764,706$ 54,375$ 25,317$ 1,426,129$
-94-
Community
Services DWI
Commission Cemetery Enforcement VOTF
Revenue
Intergovernmental revenue –$ –$ –$ 20,000$
Charges for services – – – –
Investment income (charges)– (3,557) (497) (5,656)
Other revenue
Lawful gambling proceeds 54,089 – – –
Contributions 25,562 – – –
Miscellaneous – 800 30,043 –
Total revenue 79,651 (2,757) 29,546 14,344
Expenditures
Current
General government
Operating supplies 11,628 – – –
Professional services 60,000 – – –
Public safety
Operating supplies – – 9,527 8,893
Parks and recreation
Salaries – – – –
Operating supplies – – – –
Total expenditures 71,628 – 9,527 8,893
Excess (deficiency) of
revenue over expenditures 8,023 (2,757) 20,019 5,451
Other financing sources (uses)
Transfers (out)– – – –
Net change in fund balances 8,023 (2,757) 20,019 5,451
Fund balances
Beginning of year 161,790 95,627 3,761 141,392
End of year 169,813$ 92,870$ 23,780$ 146,843$
CITY OF GOLDEN VALLEY
Nonmajor Special Revenue Funds
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances
Year Ended December 31, 2022
-95-
Noah Joynes
HRA Lodging Youth
General Brookview Tax Recreation Totals
–$ 149,090$ –$ –$ 169,090$
– 479,535 – – 479,535
(5,267) (17,821) (1,586) 303 (34,081)
– – – – 54,089
– – – 4,765 30,327
– – – – 30,843
(5,267) 610,804 (1,586) 5,068 729,803
– – – – 11,628
– – – – 60,000
– – – – 18,420
– 338,266 – – 338,266
– 57,857 – 140 57,997
– 396,123 – 140 486,311
(5,267) 214,681 (1,586) 4,928 243,492
(25,000) – – – (25,000)
(30,267) 214,681 (1,586) 4,928 218,492
158,102 368,944 29,986 20,509 980,111
127,835$ 583,625$ 28,400$ 25,437$ 1,198,603$
-96-
Brookview Douglas Drive
Lease Revenue Reconstruction Hwy 55 West
Bonds Bonds Bonds Totals
Assets
Cash and temporary investments 1,438,014$ 293,057$ 18,948$ 1,750,019$
Receivables
Special assessments – – 149,885 149,885
Total assets 1,438,014$ 293,057$ 168,833$ 1,899,904$
Liabilities
Accounts payables 1,975$ –$ –$ 1,975
Deferred inflows of resources
Unavailable revenue –
special assessments – – 149,885 149,885
Fund balances
Restricted for debt service 1,436,039 293,057 18,948 1,748,044
Total liabilities, deferred inflows of
resources, and fund balances 1,438,014$ 293,057$ 168,833$ 1,899,904$
CITY OF GOLDEN VALLEY
Nonmajor Debt Service Funds
Combining Balance Sheet
December 31, 2022
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Brookview Douglas Drive
Lease Revenue Reconstruction Hwy 55 West
Bonds Bonds Bonds Totals
Revenue
Ad valorem taxes 1,218,300$ –$ –$ 1,218,300$
Special assessments – – 38,990 38,990
Franchise taxes – 370,000 – 370,000
Investment income (charges)(26,962) (4,208) (651) (31,821)
Total revenue 1,191,338 365,792 38,339 1,595,469
Expenditures
Debt service
Principal 710,000 240,000 205,000 1,155,000
Interest and fiscal charges 498,873 130,262 33,475 662,610
Total expenditures 1,208,873 370,262 238,475 1,817,610
Net change in fund balances (17,535) (4,470) (200,136) (222,141)
Fund balances
Beginning of year 1,453,574 297,527 219,084 1,970,185
End of year 1,436,039$ 293,057$ 18,948$ 1,748,044$
CITY OF GOLDEN VALLEY
Nonmajor Debt Service Funds
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances
Year Ended December 31, 2022
-98-
Cable Park Capital Equipment HRA Capital
Building Improvement Improvement Replacement Project
Assets
Cash and temporary investments 3,034,127$ 128,902$ 1,266,319$ 3,714,336$ 74,870$
Receivables
Special assessments – – – – –
Due from other funds – – – – –
Advances to other funds – – – – –
Due from other governmental units – – – – 1,180
Total assets 3,034,127$ 128,902$ 1,266,319$ 3,714,336$ 76,050$
Liabilities
Accounts payable 2,100$ –$ 950$ 23,968$ –$
Contracts payable 1,942 14,936 – – –
Due to other governmental units – – – – –
Deposits – – – – –
Total liabilities 4,042 14,936 950 23,968 –
Deferred inflows of resources
Unavailable revenue – special assessments – – – – –
Fund balances
Restricted for redevelopment – – – – 76,050
Restricted for street improvements – – – – –
Assigned for cable improvements – 113,966 – – –
Assigned for park improvements – – 1,265,369 – –
Assigned for equipment replacement – – – 3,690,368 –
Assigned for street improvements – – – – –
Assigned for capital improvements 3,030,085 – – – –
Total fund balances 3,030,085 113,966 1,265,369 3,690,368 76,050
Total liabilities, deferred inflows
of resources, and fund balances 3,034,127$ 128,902$ 1,266,319$ 3,714,336$ 76,050$
CITY OF GOLDEN VALLEY
Nonmajor Capital Project Funds
Combining Balance Sheet
December 31, 2022
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Cornerstone
North Wirth Hwy 55 West Creek Capital Douglas Drive
Tax Increment Tax Increment Tax Increment Improvement Improvement Totals
28,604$ 785,650$ 55,559$ 2,858,066$ 1,015,947$ 12,962,380$
22,284 – – 45,276 – 67,560
– – – 182,340 – 182,340
– – – 360,000 – 360,000
– – – – – 1,180
50,888$ 785,650$ 55,559$ 3,445,682$ 1,015,947$ 13,573,460$
–$ –$ –$ 27,127$ –$ 54,145$
– – – 16,477 – 33,355
5,529 – – – – 5,529
8,686 – – 510,651 – 519,337
14,215 – – 554,255 – 612,366
22,284 – – 45,276 – 67,560
14,389 785,650 55,559 – – 931,648
– – – – 945,019 945,019
– – – – – 113,966
– – – – – 1,265,369
– – – – – 3,690,368
– – – – 70,928 70,928
– – – 2,846,151 – 5,876,236
14,389 785,650 55,559 2,846,151 1,015,947 12,893,534
50,888$ 785,650$ 55,559$ 3,445,682$ 1,015,947$ 13,573,460$
-100-
Cable Park Capital Equipment HRA Capital
Building Improvement Improvement Replacement Project
Revenue
Ad valorem taxes –$ –$ –$ –$ 213,241$
Tax increments – – – – –
Special assessments – – – – –
Franchise taxes – – – – –
Intergovernmental revenue – – 4,902 70,000 –
Charges for services – – – – –
Investment income (charges)(121,008) (10,350) (35,855) (140,132) (594)
Other revenue
Contributions – – 691,812 – –
Miscellaneous – 37,345 – 5,977 –
Total revenue (121,008) 26,995 660,859 (64,155) 212,647
Expenditures
Capital outlay
Street – – – – –
City buildings and grounds 536,111 314,293 406,740 – –
Equipment – – – 1,079,269 –
HRA projects – – – – 193,052
Total expenditures 536,111 314,293 406,740 1,079,269 193,052
Excess (deficiency) of
revenue over expenditures (657,119) (287,298) 254,119 (1,143,424) 19,595
Other financing sources
Sale of capital assets – – – 192,330 –
Transfers in 500,000 – 400,000 1,150,000 25,000
Total other financing
sources 500,000 – 400,000 1,342,330 25,000
Net change in fund balances (157,119) (287,298) 654,119 198,906 44,595
Fund balances
Beginning of year 3,187,204 401,264 611,250 3,491,462 31,455
End of year 3,030,085$ 113,966$ 1,265,369$ 3,690,368$ 76,050$
CITY OF GOLDEN VALLEY
Nonmajor Capital Project Funds
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances
Year Ended December 31, 2022
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Cornerstone
North Wirth Hwy 55 West Creek Capital Douglas Drive
Tax Increment Tax Increment Tax Increment Improvement Improvement Totals
–$ –$ –$ –$ –$ 213,241$
26,316 607,219 65,536 – – 699,071
6,690 – – 9,406 – 16,096
– – – 200,000 – 200,000
– – – 41,140 – 116,042
– – – 68,676 – 68,676
(411) (16,260) (837) (103,850) (55,538) (484,835)
– – – 148,628 – 840,440
– – – – – 43,322
32,595 590,959 64,699 364,000 (55,538) 1,712,053
– – – 1,250,527 513,251 1,763,778
– – – – – 1,257,144
– – – – – 1,079,269
32,177 341,677 53,221 – – 620,127
32,177 341,677 53,221 1,250,527 513,251 4,720,318
418 249,282 11,478 (886,527) (568,789) (3,008,265)
– – – – – 192,330
– – – – – 2,075,000
– – – – – 2,267,330
418 249,282 11,478 (886,527) (568,789) (740,935)
13,971 536,368 44,081 3,732,678 1,584,736 13,634,469
14,389$ 785,650$ 55,559$ 2,846,151$ 1,015,947$ 12,893,534$
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2021
Final Over (Under)
Budget Actual Budget Actual
Revenue
Taxes
Ad valorem 22,116,855$ 22,186,610$ 69,755$ 20,274,481$
Penalties and interest – 21,389 21,389 18,665
Total taxes 22,116,855 22,207,999 91,144 20,293,146
Special assessments 6,000 8,857 2,857 7,344
Licenses and permits
Licenses 244,165 250,102 5,937 248,595
Permits 963,650 1,592,132 628,482 1,347,121
Total licenses and permits 1,207,815 1,842,234 634,419 1,595,716
Intergovernmental revenue
Federal grants 121,800 125,000 3,200 2,500
State grants 50,000 29,084 (20,916) 54,464
Total intergovernmental revenue 171,800 154,084 (17,716) 56,964
Charges for services
General government 20,200 18,816 (1,384) 17,833
Police 35,350 48,109 12,759 54,458
Fire 850 583 (267) 1,150
Community development 7,500 11,878 4,378 21,466
Public works 178,900 199,764 20,864 177,244
Parks and recreation 438,700 295,951 (142,749) 215,043
Other funds 790,000 768,213 (21,787) 805,260
Total charges for services 1,471,500 1,343,314 (128,186) 1,292,454
Fines and forfeitures 125,000 81,852 (43,148) 127,096
Investment income (charges)150,000 (512,471) (662,471) (63,306)
Other revenue
Rents 160,820 189,932 29,112 189,177
Miscellaneous 7,800 8,814 1,014 13,096
Total other revenue 168,620 198,746 30,126 202,273
Total revenue 25,417,590$ 25,324,615$ (92,975)$ 23,511,687$
2022
CITY OF GOLDEN VALLEY
General Fund
Schedule of Revenue – Budget and Actual
Year Ended December 31, 2022
(With Comparative Actual Amounts for the Year Ended December 31, 2021)
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Final Personal Supplies and
Budget Services Services Capital Outlay
Expenditures
General government
City Council 458,210$ 252,365$ 246,603$ –$
City manager 1,285,825 1,105,063 188,408 –
Legal service 428,045 230,931 136,567 –
Total general government 2,172,080 1,588,359 571,578 –
Administrative services 2,573,030 1,199,842 1,216,461 7,993
Casualty insurance 355,000 – 277,610 –
Public safety
Police 7,178,575 4,564,696 1,243,862 19,378
Fire 1,843,165 1,320,072 386,719 68,259
Total public safety 9,021,740 5,884,768 1,630,581 87,637
Community development
Administration 350,690 322,369 10,311 –
Engineering 819,975 491,721 68,391 –
Inspections 912,335 733,892 150,418 –
Planning 392,330 381,808 10,650 –
Total community development 2,475,330 1,929,790 239,770 –
Public works
Building operations 816,045 64,780 847,106 –
Street maintenance 2,474,815 1,071,977 1,438,954 –
Park maintenance 1,452,555 971,937 551,511 –
Total public works 4,743,415 2,108,694 2,837,571 –
Parks and recreation
Administration 928,445 797,832 150,828 –
Recreation programs 428,550 128,964 167,926 –
Total parks and recreation 1,356,995 926,796 318,754 –
Total expenditures 22,697,590$ 13,638,249$ 7,092,325$ 95,630$
2022
Actual
CITY OF GOLDEN VALLEY
General Fund
Schedule of Expenditures – Budget and Actual
Year Ended December 31, 2022
(With Comparative Actual Amounts for the Year Ended December 31, 2021)
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2021
Over (Under)
Total Budget Actual
498,968$ 40,758$ 373,280$
1,293,471 7,646 1,102,027
367,498 (60,547) 235,234
2,159,937 (12,143) 1,710,541
2,424,296 (148,734) 2,308,688
277,610 (77,390) 269,420
5,827,936 (1,350,639) 6,162,461
1,775,050 (68,115) 1,450,511
7,602,986 (1,418,754) 7,612,972
332,680 (18,010) 324,003
560,112 (259,863) 561,482
884,310 (28,025) 797,008
392,458 128 412,822
2,169,560 (305,770) 2,095,315
911,886 95,841 791,567
2,510,931 36,116 2,304,612
1,523,448 70,893 1,403,635
4,946,265 202,850 4,499,814
948,660 20,215 864,289
296,890 (131,660) 135,209
1,245,550 (111,445) 999,498
20,826,204$ (1,871,386)$ 19,496,248$
2022
Actual
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INTERNAL SERVICE FUNDS
Workers’ Compensation Fund – used to account for the financing of all of the City’s workers’
compensation benefits.
Payroll Benefits Fund – used to account for the financing of all of the City’s employee benefits, such as
compensated absences, pension contributions, other post-employment benefits, and termination pay.
Vehicle Maintenance Fund – used to account for the maintenance of motor vehicles of all departments
and related costs.
Workers’Payroll Vehicle
Compensation Benefits Maintenance Totals
Assets
Current assets
Cash and temporary investments 30,949$ 2,328,339$ 483,221$ 2,842,509$
Receivables
Accounts – 6,474 – 6,474
Inventory – – 113,228 113,228
Total current assets 30,949 2,334,813 596,449 2,962,211
Noncurrent assets
Net pension asset – fire relief – 3,128,030 – 3,128,030
Capital assets
Machinery and equipment – – 263,971 263,971
Less accumulated depreciation – – (248,961) (248,961)
Capital assets, net – – 15,010 15,010
Total noncurrent assets – 3,128,030 15,010 3,143,040
Total assets 30,949 5,462,843 611,459 6,105,251
Deferred outflows of resources
Pension plan deferments – PERA – 11,477,064 – 11,477,064
Pension plan deferments – fire relief – 357,857 – 357,857
OPEB plan deferments – 1,798,466 – 1,798,466
Total deferred outflows of resources – 13,633,387 – 13,633,387
Total assets and deferred outflows of resources 30,949$ 19,096,230$ 611,459$ 19,738,638$
Liabilities
Current liabilities
Accounts payable –$ 486$ 11,471$ 11,957$
Accrued compensated absences – current – 1,327,391 – 1,327,391
Due to other governmental units – – 129 129
Deposits – 21,878 – 21,878
Total current liabilities – 1,349,755 11,600 1,361,355
Noncurrent liabilities
Accrued compensated absences – 282,091 – 282,091
Net pension liability – PERA – 21,200,462 – 21,200,462
Total OPEB liability – 3,045,439 – 3,045,439
Total noncurrent liabilities – 24,527,992 – 24,527,992
Total liabilities – 25,877,747 11,600 25,889,347
Deferred inflows of resources
Pension plan deferments – PERA – 1,119,451 – 1,119,451
Pension plan deferments – fire relief – 1,500,586 – 1,500,586
OPEB plan deferments – 845,432 – 845,432
Total deferred inflows of resources – 3,465,469 – 3,465,469
Net position
Net investment in capital assets – – 15,010 15,010
Restricted for fire relief pensions – 1,985,301 – 1,985,301
Unrestricted 30,949 (12,232,287) 584,849 (11,616,489)
Total net position 30,949 (10,246,986) 599,859 (9,616,178)
Total liabilities, deferred inflows of
resources, and net position 30,949$ 19,096,230$ 611,459$ 19,738,638$
CITY OF GOLDEN VALLEY
Internal Service Funds
Combining Statement of Net Position
December 31, 2022
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Workers’Payroll Vehicle
Compensation Benefits Maintenance Totals
Operating revenue
Charges to other funds 600,000$ 7,175,202$ 677,508$ 8,452,710$
Payroll benefits charged to employees – 1,843,193 – 1,843,193
Total operating revenue 600,000 9,018,395 677,508 10,295,903
Operating expenses
Workers’ compensation charges 820,207 – – 820,207
Payroll benefits charges – 10,810,070 – 10,810,070
Vehicle maintenance operations – – 463,357 463,357
Depreciation – – 17,445 17,445
Total operating expenses 820,207 10,810,070 480,802 12,111,079
Operating income (loss) (220,207) (1,791,675) 196,706 (1,815,176)
Nonoperating revenue
Intergovernmental revenue – 638,910 – 638,910
Investment income (charges)– (97,503) (14,094) (111,597)
Other income – 147 – 147
Total nonoperating revenue – 541,554 (14,094) 527,460
Change in net position (220,207) (1,250,121) 182,612 (1,287,716)
Net position
Beginning of year 251,156 (8,996,865) 417,247 (8,328,462)
End of year 30,949$ (10,246,986)$ 599,859$ (9,616,178)$
CITY OF GOLDEN VALLEY
Internal Service Funds
Combining Statement of Revenue, Expenses, and Changes in Net Position
Year Ended December 31, 2022
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Workers’Payroll Vehicle
Compensation Benefits Maintenance Totals
Cash flows from operating activities
Receipts from customers and users –$ 7,193,413$ –$ 7,193,413$
Receipts from interfund services provided 600,000 1,848,711 677,508 3,126,219
Paid to suppliers/service providers (820,207) (6,987,118) (81,749) (7,889,074)
Paid to employees – (2,827,826) (361,560) (3,189,386)
Net cash flows from operating activities (220,207) (772,820) 234,199 (758,828)
Cash flows from investing activities
Interest received (charged) on investments – (97,503) (14,094) (111,597)
Cash flows from noncapital financing activities
Intergovernmental revenue – 638,910 – 638,910
Net increase in cash and
temporary investments/cash equivalents (220,207) (231,413) 220,105 (231,515)
Cash and temporary investments/cash equivalents
Beginning of year 251,156 2,559,752 263,116 3,074,024
End of year 30,949$ 2,328,339$ 483,221$ 2,842,509$
Reconciliation of operating income (loss) to net
cash flows from operating activities
Operating income (loss)(220,207)$ (1,791,675)$ 196,706$ (1,815,176)$
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities
Depreciation – – 17,445 17,445
Other income – 147 – 147
Changes in assets, liabilities,
and deferred outflows/inflows
Accounts receivable – 5,518 – 5,518
Due from other governmental units – 18,064 – 18,064
Inventory – – 10,805 10,805
Net pension asset – fire relief – (8,968) – (8,968)
Deferred outflows – pension and OPEB plans – (4,864,353) – (4,864,353)
Accounts payable – (4,378) 9,114 4,736
Due to other governmental units – – 129 129
Deposits – (12,117) – (12,117)
Accrued compensated absences – (26,697) – (26,697)
Net pension liability – PERA – 13,798,666 – 13,798,666
Total OPEB liability – 1,172,217 – 1,172,217
Deferred inflows – pension and OPEB plans – (9,059,244) – (9,059,244)
Net cash flows from operating activities (220,207)$ (772,820)$ 234,199$ (758,828)$
CITY OF GOLDEN VALLEY
Internal Service Funds
Combining Statement of Cash Flows
Year Ended December 31, 2022
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OTHER CITY INFORMATION
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Accounted for Current Amount
Budget in Prior Years Year Remaining
Sources of funds
Tax increments received 920,000$ 397,893$ 26,316$ 495,791$
Special assessments – – 6,690 (6,690)
Real estate sales 575,000 523,431 – 51,569
Interest income (charges)– 4,388 (411) (3,977)
Total sources of funds 1,495,000 925,712 32,595 536,693
Uses of funds
Land and building acquisition – 267,696 25,970 (293,666)
Site preparation and improvements 1,000,000 623,515 6,158 370,327
Administrative costs – 16,058 – (16,058)
Interest and fiscal costs 495,000 4,472 49 490,479
Total uses of funds 1,495,000 911,741 32,177 551,082
Funds remaining (deficit)–$ 13,971$ 418$ (14,389)$
Note:
Purchaser/Developer Sale Price Cost
GVEC, LLC Business Center 523,431$ 1,093,241$
Property purchased and sold to developers:
Project
The cost of the property sold to GVEC,LLC includes the $567,685 original purchase price that was paid by the
North Wirth Parkway No. 1501 Tax Increment Financing District prior to the establishment of this district.
CITY OF GOLDEN VALLEY
Schedule of Sources and Uses of Public Funds
for North Wirth Parkway No. 1505, a Tax Increment Financing District
Year Ended December 31, 2022
Real estate sales
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Accounted for Current Amount
Budget in Prior Years Year Remaining
Sources of funds
Bond proceeds –$ 2,008,681$ –$ (2,008,681)$
Tax increments received 8,814,808 2,064,650 607,219 6,142,939
Special assessments – 423,885 38,990 (462,875)
Interest income (charges)– 39,467 (16,911)(22,556)
Total sources of funds 8,814,808 4,536,683 629,298 3,648,827
Uses of funds
Site acquisition and improvements 4,545,891 3,092,894 340,226 1,112,771
Administrative costs 881,480 4,473 1,451 875,556
Principal – 495,000 205,000 (700,000)
Interest and fiscal costs 3,387,437 188,864 33,475 3,165,098
Total uses of funds 8,814,808 3,781,231 580,152 4,453,425
Funds remaining (deficit)–$ 755,452$ 49,146$ (804,598)$
CITY OF GOLDEN VALLEY
Schedule of Sources and Uses of Public Funds
for Highway 55 West No. 1506, a Tax Increment Financing District
Year Ended December 31, 2022
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Accounted for Current Amount
Budget in Prior Years Year Remaining
Sources of funds
Tax increments received 1,535,716$ 222,795$ 65,536$ 1,247,385$
Interest income (charges)– 79 (837)758
Total sources of funds 1,535,716 222,874 64,699 1,248,143
Uses of funds
Site acquisition and improvements 687,975 178,793 53,221 455,961
Administrative costs 171,571 – – 171,571
Interest and fiscal costs 676,170 – – 676,170
Total uses of funds 1,535,716 178,793 53,221 1,303,702
Funds remaining (deficit)–$ 44,081$ 11,478$ (55,559)$
CITY OF GOLDEN VALLEY
Schedule of Sources and Uses of Public Funds
for Cornerstone Creek No. 1507, a Tax Increment Financing District
Year Ended December 31, 2022
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Accounted for Current Amount
Budget in Prior Years Year Remaining
Sources of funds
Tax increments received 19,052,584$ 2,329,602$ 814,894$ 15,908,088$
Interest income (charges)– 766 (38,195)37,429
Total sources of funds 19,052,584 2,330,368 776,699 15,945,517
Uses of funds
Site improvements – utilities 7,913,693 2,756,273 2,049 5,155,371
Administrative costs 1,945,145 – – 1,945,145
Interest and fiscal costs 9,193,746 321,013 56,710 8,816,023
Total uses of funds 19,052,584 3,077,286 58,759 15,916,539
Funds remaining (deficit)–$ (746,918)$ 717,940$ 28,978$
CITY OF GOLDEN VALLEY
Schedule of Sources and Uses of Public Funds
for Winnetka/Medicine Lake (Liberty Crossing) No. 1508, a Tax Increment Financing District
Year Ended December 31, 2022
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STATISTICAL SECTION
(UNAUDITED)
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Page
Contents:
Financial Trends 115
Revenue Capacity 126
Debt Capacity 132
Demographic and Economic Information 140
Operating Indicators 142
Source:Unless otherwise noted, the information in these schedules is derived from the ACFR for the relevant year.
These schedules contain service and infrastructure data to help the reader understand how the
information in the City’s financial report relates to the services the City provides, and the activities it
performs.
STATISTICAL SECTION (UNAUDITED)
This part of the City of Golden Valley,Minnesota’s (the City) Annual Comprehensive Financial Report (ACFR) 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’s overall financial health.
These schedules contain trend information to help the reader understand how the City’s financial
performance and well-being have changed over time.
These schedules contain information to help the reader assess the City’s most significant revenue
source, including the property tax and utility revenue.
These schedules present information to help the reader assess the affordability of the City’s current
levels of outstanding debt and the City’s ability to issue additional debt in the future.
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the City’s financial activities take place.
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Fiscal Year
2013 2014 2015 2016
Governmental activities
Net investment in capital assets 21,829,745$ 21,499,939$ 24,816,606$ 23,527,470$
Restricted 29,535,846 29,553,484 17,942,353 18,567,757
Unrestricted 9,306,292 14,349,901 15,401,264 12,900,989
Total governmental activities net position 60,671,883$ 65,403,324$ 58,160,223$ 54,996,216$
Business-type activities
Net investment in capital assets 28,427,621$ 29,588,257$ 30,101,294$ 31,809,835$
Unrestricted 18,562,323 16,164,578 14,010,619 17,561,589
Total business-type activities net position 46,989,944$ 45,752,835$ 44,111,913$ 49,371,424$
Primary government
Net investment in capital assets 50,257,366$ 51,088,196$ 54,917,900$ 55,337,305$
Restricted 29,535,846 29,553,484 17,942,353 18,567,757
Unrestricted 27,868,615 30,514,479 29,411,883 30,462,578
Total primary government net position 107,661,827$ 111,156,159$ 102,272,136$ 104,367,640$
Note 1:
Note 2:
The City implemented GASB Statement No.68 in 2015,resulting in a restatement of beginning net position for
the effects of implementing this standard. Net position for previous years has not been restated.
The City implemented GASB Statement No.75 in 2018,resulting in a restatement of beginning net position for
the effects of implementing this standard. Net position for previous years has not been restated.
CITY OF GOLDEN VALLEY
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
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2017 2018 2019 2020 2021 2022
24,239,358$ 27,973,471$ 30,178,374$ 28,994,273$ 32,036,524$ 33,605,654$
21,342,170 24,401,665 25,785,567 26,738,440 29,277,763 31,050,961
14,755,485 11,015,315 13,001,567 18,192,074 19,676,353 20,618,692
60,337,013$ 63,390,451$ 68,965,508$ 73,924,787$ 80,990,640$ 85,275,307$
35,854,260$ 36,950,518$ 39,110,394$ 40,380,232$ 40,749,737$ 45,675,680$
16,068,264 19,689,949 23,980,781 28,238,723 32,328,662 30,587,263
51,922,524$ 56,640,467$ 63,091,175$ 68,618,955$ 73,078,399$ 76,262,943$
60,093,618$ 64,923,989$ 69,288,768$ 69,374,505$ 72,786,261$ 79,281,334$
21,342,170 24,401,665 25,785,567 26,738,440 29,277,763 31,050,961
30,823,749 30,705,264 36,982,348 46,430,797 52,005,015 51,205,955
112,259,537$ 120,030,918$ 132,056,683$ 142,543,742$ 154,069,039$ 161,538,250$
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Fiscal Year
2013 2014 2015 2016
Expenses
Governmental activities
General government 2,914,823$ 3,066,025$ 11,327,689$ 4,182,777$
Public safety 7,310,946 6,831,136 6,907,661 8,213,351
Community development 10,325,068 11,396,748 13,448,443 11,274,790
Public works – – – –
Parks and recreation 1,588,798 1,545,616 1,486,218 1,736,619
Interest and fiscal charges 2,633,359 2,456,490 2,066,076 2,172,554
Total governmental activities expenses 24,772,994 25,296,015 35,236,087 27,580,091
Business-type activities
Water and sewer 7,611,927 9,867,531 9,867,731 8,327,113
Storm sewer 1,589,410 1,944,935 1,795,260 1,685,494
Golf course 1,645,728 1,693,028 1,848,745 2,172,621
Motor vehicle licensing 326,382 326,201 349,019 401,363
Recycling 410,808 393,280 392,239 407,664
Total business-type activities expenses 11,584,255 14,224,975 14,252,994 12,994,255
Total primary government expenses 36,357,249$ 39,520,990$ 49,489,081$ 40,574,346$
Program revenues
Governmental activities
Charges for services
General government 279,725$ 276,782$ 263,205$ 223,237$
Public safety 1,861,481 1,837,076 1,985,746 2,155,832
Community development 407,938 342,809 415,395 400,351
Public works – – – –
Parks and recreation 594,142 534,821 594,130 489,959
Operating grants and contributions 559,246 538,956 600,264 643,970
Capital grants and contributions 1,882,698 2,028,250 6,377,610 1,578,699
Total governmental activities program
revenues 5,585,230 5,558,694 10,236,350 5,492,048
Business-type activities
Charges for services
Water and sewer 7,831,307 7,751,250 8,266,107 8,814,629
Storm sewer 2,274,549 2,278,128 2,281,125 2,241,536
Golf course 1,502,897 1,543,151 2,071,141 2,106,472
Motor vehicle licensing 304,424 347,382 395,718 457,275
Recycling 276,099 323,184 331,630 378,934
Operating grants and contributions 495,451 701,605 209,831 167,557
Capital grants and contributions 852,075 – – 1,561,135
Total business-type activities program
revenues 13,536,802 12,944,700 13,555,552 15,727,538
Total primary government program revenues 19,122,032$ 18,503,394$ 23,791,902$ 21,219,586$
CITY OF GOLDEN VALLEY
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
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2017 2018 2019 2020 2021 2022
3,260,989$ 3,633,644$ 3,645,284$ 4,169,858$ 3,788,382$ 5,359,991$
8,128,614 7,979,009 8,611,294 8,870,757 8,089,691 8,919,678
11,539,091 12,019,371 2,102,527 2,157,872 1,903,327 3,014,245
– – 9,226,210 9,716,950 10,477,892 11,003,765
2,205,615 2,710,862 2,470,334 2,033,540 2,067,373 2,764,425
2,321,780 1,947,173 1,907,064 1,697,077 1,587,120 1,608,289
27,456,089 28,290,059 27,962,713 28,646,054 27,913,785 32,670,393
8,395,036 9,374,281 8,863,414 9,211,358 9,643,763 10,222,237
2,526,607 1,861,392 2,331,381 2,217,110 1,968,509 2,270,408
2,348,327 3,235,267 3,163,981 2,741,444 3,185,361 4,096,568
405,407 399,060 410,430 462,777 443,418 573,795
389,472 408,286 477,286 504,119 526,822 1,059,807
14,064,849 15,278,286 15,246,492 15,136,808 15,767,873 18,222,815
41,520,938$ 43,568,345$ 43,209,205$ 43,782,862$ 43,681,658$ 50,893,208$
238,339$ 267,543$ 209,369$ 225,998$ 206,956$ 208,323$
3,460,736 2,132,083 537,505 355,245 295,902 253,437
565,550 663,328 1,621,151 1,230,765 1,504,988 1,734,969
– – 348,830 410,814 315,753 366,854
443,632 981,624 920,139 273,995 353,199 774,513
1,444,260 1,261,435 724,609 617,891 888,261 871,950
2,689,043 3,140,938 2,791,326 733,444 3,478,561 3,698,737
8,841,560 8,446,951 7,152,929 3,848,152 7,043,620 7,908,783
9,574,647 10,482,578 10,022,356 10,621,632 11,203,708 11,802,888
2,328,336 2,446,828 2,480,095 2,559,800 2,592,294 2,775,129
2,059,405 2,956,984 3,205,252 2,914,216 3,927,131 4,376,050
453,215 435,698 477,523 256,748 317,229 418,035
389,894 391,131 408,058 439,160 501,335 1,040,416
966,871 395,134 188,765 66,990 34,261 388,508
1,227,470 398,387 2,795,362 1,605,931 – 215,747
16,999,838 17,506,740 19,577,411 18,464,477 18,575,958 21,016,773
25,841,398$ 25,953,691$ 26,730,340$ 22,312,629$ 25,619,578$ 28,925,556$
-118-(continued)
Fiscal Year
2013 2014 2015 2016
Net (expense) revenue
Governmental activities (19,187,764)$ (19,737,321)$ (24,999,737)$ (22,088,043)$
Business-type activities 1,952,547 (1,280,275) (697,442) 2,733,283
Total primary government net expense (17,235,217)$ (21,017,596)$ (25,697,179)$ (19,354,760)$
General revenues and other changes in net position
Governmental activities
Property taxes 21,757,173$ 22,616,003$ 21,934,817$ 19,473,750$
Franchise taxes 904,928 1,048,227 1,028,368 402,017
Unrestricted grants and contributions – – – –
Other general revenues 338,245 286,108 372,590 347,543
Investment earnings (charges)112,817 347,197 221,237 313,888
Gain on sale of capital assets 24,735 71,227 18,337 56,838
Transfers (73,606) 100,000 100,000 (1,670,000)
Total governmental activities 23,064,292 24,468,762 23,675,349 18,924,036
Business-type activities
Franchise taxes – – – 700,000
Investment earnings (charges)38,459 142,866 122,591 156,228
Transfers 73,606 (100,000) (100,000) 1,670,000
Total business-type activities 112,065 42,866 22,591 2,526,228
Total primary government 23,176,357$ 24,511,628$ 23,697,940$ 21,450,264$
Changes in net position
Governmental activities 3,876,528$ 4,731,441$ (1,324,388)$ (3,164,007)$
Business-type activities 2,064,612 (1,237,409) (674,851) 5,259,511
Total primary government 5,941,140$ 3,494,032$ (1,999,239)$ 2,095,504$
Note:
Changes in Net Position (continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
The City reorganized its governmental activities functions in 2019,creating a separate public works function and moving
certain other departments between functions to better reflect the organization of city operations.
CITY OF GOLDEN VALLEY
-119-
2017 2018 2019 2020 2021 2022
(18,614,529)$ (19,843,108)$ (20,809,784)$ (24,797,902)$ (20,870,165)$ (24,761,610)$
2,934,989 2,228,454 4,330,919 3,327,669 2,808,085 2,793,958
(15,679,540)$ (17,614,654)$ (16,478,865)$ (21,470,233)$ (18,062,080)$ (21,967,652)$
21,419,195$ 22,825,055$ 24,399,021$ 26,593,034$ 27,352,013$ 29,565,166$
687,773 836,780 719,131 750,959 772,266 796,783
– – – 1,693,378 16,398 239,785
291,837 264,266 165,936 122,994 80,706 114,781
522,746 788,823 1,032,727 788,401 (204,549) (1,789,925)
3,775 80,997 101,526 11,876 121,369 89,687
1,030,000 (1,149,855) (33,500) (203,461) (202,185) 30,000
23,955,326 23,646,066 26,384,841 29,757,181 27,936,018 29,046,277
400,000 1,000,000 1,500,000 1,500,000 1,500,000 1,500,000
246,111 339,634 586,289 496,650 (50,826) (1,079,414)
(1,030,000) 1,149,855 33,500 203,461 202,185 (30,000)
(383,889) 2,489,489 2,119,789 2,200,111 1,651,359 390,586
23,571,437$ 26,135,555$ 28,504,630$ 31,957,292$ 29,587,377$ 29,436,863$
5,340,797$ 3,802,958$ 5,575,057$ 4,959,279$ 7,065,853$ 4,284,667$
2,551,100 4,717,943 6,450,708 5,527,780 4,459,444 3,184,544
7,891,897$ 8,520,901$ 12,025,765$ 10,487,059$ 11,525,297$ 7,469,211$
-120-
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Ad Valorem
Property Taxes Tax Increments Franchise Taxes Total
16,922,610$ 4,834,563$ 904,928$ 22,662,101$
17,431,741 5,184,262 1,048,227 23,664,230
21,911,378 23,439 1,028,368 22,963,185
19,449,023 24,727 402,017 19,875,767
21,398,275 20,920 687,773 22,106,968
22,178,550 646,505 836,780 23,661,835
23,292,820 1,106,201 719,131 25,118,152
25,101,371 1,491,663 750,959 27,343,993
25,886,865 1,465,148 772,266 28,124,279
28,051,201 1,513,965 796,783 30,361,949
Fiscal Year
2016
2013
2014
2015
2017
2018
2019
2020
2021
2022
CITY OF GOLDEN VALLEY
Governmental Activities Tax Revenues by Source
Last Ten Fiscal Years
(Accrual Basis of Accounting)
-121-
Fiscal Year
2013 2014 2015 2016
General Fund
Nonspendable –$ 1,256$ 7,617$ 18,822$
Committed – – – –
Assigned 1,500,000 1,500,000 2,000,000 2,000,000
Unassigned 8,207,985 8,640,108 8,719,447 8,954,274
Total General Fund 9,707,985$ 10,141,364$ 10,727,064$ 10,973,096$
All other governmental funds
Nonspendable –$ –$ 285$ –$
Restricted 43,287,123 47,308,126 33,222,298 44,457,090
Committed 718,723 743,633 202,270 208,846
Assigned 7,032,562 7,224,030 11,357,732 11,702,718
Unassigned, reported in
Capital project funds – – (41,288) (1,023,153)
Total all other governmental funds 51,038,408$ 55,275,789$ 44,741,297$ 55,345,501$
CITY OF GOLDEN VALLEY
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
-122-
2017 2018 2019 2020 2021 2022
3,610$ –$ 14,029$ 23,010$ 26,653$ 8,976$
– – 111,960 111,960 – –
2,000,000 2,045,000 3,350,000 4,350,000 2,269,499 2,612,910
10,400,239 11,014,502 11,676,100 13,192,079 13,258,756 14,711,433
12,403,849$ 13,059,502$ 15,152,089$ 17,677,049$ 15,554,908$ 17,333,319$
–$ –$ –$ –$ –$ 58,951$
32,513,969 26,311,344 21,568,499 22,904,513 22,970,466 24,286,876
213,524 213,624 212,939 127,269 161,790 169,113
13,355,185 10,183,554 9,910,623 11,513,179 13,215,884 12,363,189
(1,066,647) (2,164,862) (1,825,910) (1,271,708) (746,918) (28,978)
45,016,031$ 34,543,660$ 29,866,151$ 33,273,253$ 35,601,222$ 36,849,151$
-123-
Fiscal Year
2013 2014 2015 2016
Revenues
Taxes 16,847,769$ 17,334,800$ 21,874,958$ 19,539,516$
Tax increments 4,834,563 5,184,262 23,439 24,727
Special assessments 1,223,120 1,217,205 1,060,839 806,891
Franchise taxes 904,928 1,048,227 1,028,368 402,017
Licenses and permits 1,496,453 1,479,304 1,626,113 1,859,208
Intergovernmental 984,620 1,410,427 4,717,848 1,554,964
Charges for services 1,889,478 1,718,592 1,607,143 1,544,898
Fines and forfeits 366,059 310,318 354,066 283,483
Investment income (charges)107,763 328,554 209,866 302,230
Other revenue 650,750 716,133 879,395 727,904
Total revenues 29,305,503 30,747,822 33,382,035 27,045,838
Expenditures
General government 1,268,041 1,310,190 9,340,987 1,299,871
Administrative services 1,558,386 1,682,784 1,712,183 1,812,545
Casualty insurance 222,559 240,918 169,213 154,842
Public safety 6,594,376 6,156,396 6,116,997 6,563,064
Community development 4,142,979 5,051,206 4,790,646 5,188,881
Public works – – – –
Parks and recreation 1,183,263 1,028,809 1,092,198 1,078,032
Capital outlay – not capitalized 1,575,739 1,779,425 3,943,954 1,262,482
Construction/acquisition of capital assets 4,623,106 5,043,790 8,312,307 10,192,081
Debt service
Principal retirement 6,295,000 8,720,000 9,320,000 4,960,000
Interest and fiscal charges 2,833,093 2,695,660 2,405,710 2,305,673
Total expenditures 30,296,542 33,709,178 47,204,195 34,817,471
Excess of revenues
over (under) expenditures (991,039) (2,961,356) (13,822,160) (7,771,633)
Other financing sources (uses)
Sale of capital assets 80,875 222,432 53,442 80,627
Bonds issued 2,485,000 3,085,000 2,670,000 25,130,000
Refunding bonds issued 9,100,000 3,950,000 6,600,000 –
Premiums on debt issues 452,503 274,684 164,926 1,026,242
Payments to refunded bond escrow agent (2,085,000) – (5,715,000) (6,945,000)
Transfers in 6,448,710 6,545,710 5,742,041 2,551,950
Transfers (out)(6,548,710) (6,445,710) (5,642,041) (3,221,950)
Total other financing sources (uses)9,933,378 7,632,116 3,873,368 18,621,869
Net change in fund balances 8,942,339$ 4,670,760$ (9,948,792)$ 10,850,236$
Debt service as a percentage of noncapital
expenditures 35.6%39.8%30.1%29.5%
Note:The City reorganized its governmental activities functions in 2019,creating a separate public works function and moving
certain other departments between functions to better reflect the organization of city operations.
CITY OF GOLDEN VALLEY
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
-124-
2017 2018 2019 2020 2021 2022
21,388,915$ 22,175,461$ 23,266,074$ 24,836,506$ 26,146,076$ 28,056,828$
20,920 646,505 1,106,201 1,491,663 1,465,148 1,513,965
1,106,697 1,050,049 1,057,652 592,614 774,362 901,054
687,773 836,780 719,131 750,959 772,266 796,783
3,141,910 1,778,321 1,705,864 1,350,417 1,595,716 1,842,234
2,181,104 3,032,083 1,760,103 2,366,086 821,731 1,666,421
1,577,194 2,070,277 2,160,237 1,210,902 1,433,460 1,891,525
400,233 379,708 260,565 148,672 127,096 81,852
503,416 752,246 978,546 747,355 (191,110) (1,678,328)
679,913 883,449 528,833 587,356 484,126 1,296,181
31,688,075 33,604,879 33,543,206 34,082,530 33,428,871 36,368,515
1,325,205 1,362,468 1,404,362 1,779,000 1,780,998 2,231,565
1,860,542 1,963,163 1,967,267 2,213,472 2,308,688 2,424,296
225,617 318,934 316,206 318,902 269,420 277,610
6,937,709 7,048,837 7,312,126 7,817,588 7,621,891 7,621,406
5,152,616 5,738,929 2,053,347 2,222,461 2,095,315 2,169,560
– – 4,051,707 3,942,738 4,499,814 4,946,265
1,192,679 1,496,138 1,454,209 1,170,725 1,241,033 1,641,813
1,501,845 2,025,000 365,612 589,793 1,044,253 1,405,433
22,281,092 11,046,962 7,263,621 1,617,652 6,734,018 8,134,653
4,905,000 5,715,000 5,670,000 5,100,000 7,390,000 5,065,000
2,460,593 2,426,163 2,174,818 1,942,181 1,877,201 1,781,313
47,842,898 39,141,594 34,033,275 28,714,512 36,862,631 37,698,914
(16,154,823) (5,536,715) (490,069) 5,368,018 (3,433,760) (1,330,399)
143,274 239,795 200,217 147,736 263,333 192,330
5,330,000 2,950,000 1,770,000 – 3,420,000 3,895,000
4,100,000 – – – – –
537,832 31,117 188,430 – 158,440 239,409
(3,885,000) (6,345,000) (4,220,000) – – –
4,144,838 5,276,409 2,757,128 3,357,604 6,427,360 2,805,000
(3,114,838) (6,432,324) (2,790,628) (2,941,296) (6,629,545) (2,775,000)
7,256,106 (4,280,003) (2,094,853) 564,044 3,639,588 4,356,739
(8,898,717)$ (9,816,718)$ (2,584,922)$ 5,932,062$ 205,828$ 3,026,340$
28.8%29.0%29.3%26.0%30.8%23.2%
-125-
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Ad Valorem
Property Tax Tax Increments Franchise Tax Total
16,847,769$ 4,834,563$ 904,928$ 22,587,260$
17,334,800 5,184,262 1,048,227 23,567,289
21,874,958 23,439 1,028,368 22,926,765
19,539,516 24,727 402,017 19,966,260
21,388,915 20,920 687,773 22,097,608
22,175,461 646,505 836,780 23,658,746
23,266,074 1,106,201 719,131 25,091,406
24,836,506 1,491,663 750,959 27,079,128
26,146,076 1,465,148 772,266 28,383,490
28,056,828 1,513,965 796,783 30,367,576
Fiscal Year
2016
2013
2014
2015
2017
2018
2019
2020
2021
2022
CITY OF GOLDEN VALLEY
General Governmental Tax Revenues by Source
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
-126-
Fiscal
Disparities Decrease From Applied
Real Property Personal Property Contribution Tax Increments Tax Capacity
35,693,380$ 416,456$ (5,460,857)$ (3,275,801)$ 27,373,178$
35,543,286 413,722 (5,888,222) (3,352,209) 26,716,577
37,743,877 423,575 (5,994,022) (20,214) 32,153,216
40,233,072 433,290 (5,880,892) (21,325) 34,764,145
42,748,968 472,938 (6,636,623) (21,692) 36,563,591
45,436,776 505,617 (6,748,649) (472,613) 38,721,131
49,442,493 525,094 (7,107,691) (834,500) 42,025,396
53,111,161 566,562 (7,678,701) (1,151,026) 44,847,996
55,644,963 604,764 (7,680,860) (1,184,458) 47,384,409
58,262,162 310,598 (8,480,624) (1,184,278) 48,907,858
(1)
Source:
Tax rates are expressed in terms of “net tax capacity.”A property’s tax capacity is determined by multiplying its
taxable market value by a state determined class rate.Class rates vary by property type and change periodically
based on state legislation.
Hennepin County
2015
2014
2016
2017
2013
2019
2018
2021
2022
in Fiscal Year
Levy Collectible
2020
CITY OF GOLDEN VALLEY
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Tax Capacities (1)
-127-
Total City Tax
Capacity Estimated Actual
Rate Applied Taxable Value
58.21 2,744,389,240$ 1.00 %
61.84 2,719,232,050 0.98
54.63 2,934,477,667 1.10
54.45 3,097,563,064 1.12
56.11 3,271,878,353 1.12
55.15 3,523,108,955 1.10
53.78 3,842,319,483 1.09
53.40 4,136,243,370 1.08
52.44 4,325,815,780 1.10
54.31 4,540,229,944 1.08
Actual Value
Percentage of
Value as a
Assessed
-128-
Total Direct
and
Hennepin ISD No. 281 Special Overlapping
General Levy Debt Levy City Total County Robbinsdale Districts Rates
43.00 15.21 58.21 49.46 32.35 10.93 150.95
45.51 16.33 61.84 49.96 34.78 11.30 157.88
40.46 14.17 54.63 46.40 33.22 10.56 144.81
39.72 14.73 54.45 45.36 33.83 10.43 144.07
39.08 17.03 56.11 44.09 31.61 10.20 142.01
42.87 12.28 55.15 42.81 31.96 8.98 138.90
42.22 11.56 53.78 41.86 29.91 9.42 134.97
41.85 11.55 53.40 41.08 26.45 9.07 130.00
40.83 11.61 52.44 38.21 25.53 8.75 124.93
43.35 10.96 54.31 38.54 26.50 9.17 128.52
Total Direct
and
Hennepin ISD No. 270 Special Overlapping
General Levy Debt Levy City Total County Hopkins Districts Rates
43.00 15.21 58.21 49.46 29.73 10.93 148.33
45.51 16.33 61.84 49.96 32.36 11.30 155.46
40.46 14.17 54.63 46.40 30.34 10.56 141.93
39.72 14.73 54.45 45.36 28.51 10.43 138.75
39.08 17.03 56.11 44.09 25.61 10.20 136.01
42.87 12.28 55.15 42.81 29.03 8.98 135.97
42.22 11.56 53.78 41.86 27.02 9.42 132.08
41.85 11.55 53.40 41.08 27.19 9.07 130.74
40.83 11.61 52.44 38.21 26.48 8.75 125.88
43.35 10.96 54.31 38.54 26.78 9.17 128.80
(1)
(2)
Source:Hennepin County
2022
2022
2017
Overlapping rates are those of local and county governments that apply to property owners within the City.Not all
overlapping rates apply to all city property owners (e.g.,the rates for special districts apply only to the proportion of the
government’s property owners whose property is located within the geographic boundaries of the special district).
2013
2014
2015
2016
Overlapping Rates
2020
2020
2021
2021
2018
2019
Information reflects total tax rates levied by each entity.Tax rates are expressed in terms of “net tax capacity.”A
property’s tax capacity is determined by multiplying its taxable market value by a state determined class rate.Class rates
vary by property type and change periodically based on state legislation.
CITY OF GOLDEN VALLEY
Property Tax Rates (1)
Direct and Overlapping (2) Governments
Last Ten Fiscal Years
Year
For the City/ISD No. 281 – Robbinsdale
Overlapping RatesDirect Rates
2019
For the City/ISD No. 270 – Hopkins
Direct Rates
Year
2017
2016
2015
2013
2018
2014
-129-
Net Tax Net Tax
Capacity Rank Capacity Rank
General Mills, Inc.2,123,800$ 1 4.3 %1,817,220$ 1 6.6 %
Allianz Life Insurance Company 1,721,650 2 3.5 1,281,790 2 4.7
Colonnade Ridge LLC 1,390,770 3 2.8 – – –
394 Associates, LLC 1,040,363 4 2.1 – – –
SFI Ltd Partnership 823,863 5 1.7 – – –
ALTUS Golden Hills, LLC 821,250 6 1.7 – – –
Liberty Xing Investment Partners 595,550 7 1.2 – – –
IRET Properties LP 561,713 8 1.1 – – –
North Wirth Associates 554,010 9 1.1 220,430 8 0.8
PC Hello, LLC 550,150 10 1.1 – – –
ND Properties Inc.– – – 855,290 3 3.1
Golden Jack, LLC – – – 561,990 4 2.1
Menards, Incorporated – – – 481,510 5 1.8
United Healthcare – – – 402,130 6 1.5
Honeywell Incorporated – – – 274,750 7 1.0
TCA Real Estate, LLC – – – 214,550 9 0.8
The Luther Company, LLP – – – 206,790 10 0.8
Total 10,183,119$ 20.8 %6,316,450$ 23.1 %
Source:Hennepin County
Current Year and Nine Years Ago
Principal Property Taxpayers
CITY OF GOLDEN VALLEY
Percentage of
2022 2013
Percentage of
Applied Tax
CapacityTaxpayerCapacity
Applied Tax
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Total Tax Collections in
Levy for Subsequent
Fiscal Year (2)Amount (3)Years (4)Amount
16,932,407$ 16,777,814$ 99.1 %151,812$ 16,929,626$ 100.0 %
17,403,839 17,242,324 99.1 159,610 17,401,934 100.0
18,546,364 18,391,561 99.2 146,941 18,538,502 100.0
19,603,886 19,511,104 99.5 92,782 19,603,886 100.0
21,314,250 21,246,826 99.7 67,424 21,314,250 100.0
22,365,161 22,297,307 99.7 54,130 22,351,437 99.9
23,539,855 23,439,259 99.6 91,227 23,530,486 100.0
25,073,550 24,783,738 98.8 264,693 25,048,431 99.9
26,153,341 25,964,849 99.3 150,244 26,115,093 99.9
28,098,031 28,000,109 99.7 – 28,000,109 99.7
(1)
(2)
(3)
(4)
2020
Does not include tax increments levied and collected.
Total levy is net of current year cancellations and abatements.
Total tax levy and current tax collections include state paid tax credits.
Includes county adjustments for prior year over collections, cancellations, and abatements.
2021
2022
2019
2018
Total Collections to Date
Property Tax Levies and Collections (1)
2017
2015
Last Ten Fiscal Years
of Levy
Ended
2013
2016
2014
December 31,
Percentage
Collected Within the
CITY OF GOLDEN VALLEY
Fiscal Year
of Levy
Percentage
Fiscal Year of the Levy
-131-
Special Street Certificates Tax Tax Lease
Assessment Reconstruction of Abatement Increment State Aid Revenue
Bonds Bonds Indebtedness Bonds Bonds Street Bonds Bonds
62,230,000$ –$ 2,145,000$ 2,075,000$ 9,290,000$ 1,985,000$ –$
65,320,000 – 2,205,000 1,705,000 4,935,000 1,875,000 –
64,860,000 – 2,295,000 1,360,000 – 1,760,000 –
55,455,000 5,630,000 2,350,000 1,015,000 – 1,640,000 17,410,000
55,340,000 5,630,000 2,400,000 670,000 1,170,000 1,520,000 17,410,000
48,175,000 5,405,000 1,620,000 330,000 1,170,000 1,395,000 16,935,000
42,205,000 5,180,000 820,000 – 1,155,000 1,265,000 16,285,000
38,800,000 4,950,000 280,000 – 1,035,000 1,130,000 15,615,000
36,300,000 4,715,000 – – 915,000 985,000 14,925,000
36,355,000 4,475,000 – – 790,000 835,000 14,215,000
(1)
Note:
Last Ten Fiscal Years
Ratios of Outstanding Debt by Type
CITY OF GOLDEN VALLEY
Governmental Activities
Details regarding the City’s outstanding debt can be found in the notes to basic financial statements.
See the Schedule of Demographic and Economic Statistics for personal income and population data.
2013
2014
2015
2016
2018
2019
2020
2021
2022
Fiscal Year
2017
-132-
Net Net
Premiums Utility Premiums Total Primary
(Discounts)Total Revenue Bonds (Discounts)Total Government Per Capita (1)
1,116,249$ 78,841,249$ 2,550,000$ –$ 2,550,000$ 81,391,249$ 6.68 %3,935$
1,221,767 77,261,767 1,040,000 – 1,040,000 78,301,767 6.21 3,766
1,200,577 71,475,577 910,000 – 910,000 72,385,577 5.25 3,356
2,043,531 85,543,531 2,580,000 41,745 2,621,745 88,165,276 6.27 4,090
2,352,017 86,492,017 2,580,000 39,688 2,619,688 89,111,705 6.11 4,117
2,084,966 77,114,966 2,580,000 37,631 2,617,631 79,732,597 5.20 3,695
2,068,449 68,978,449 2,580,000 35,574 2,615,574 71,594,023 4.22 3,152
1,876,422 63,686,422 2,460,000 33,517 2,493,517 66,179,939 3.83 2,935
1,800,991 59,640,991 2,340,000 31,460 2,371,460 62,012,451 3.21 2,777
1,849,847 58,519,847 2,215,000 29,403 2,244,403 60,764,250 3.23 2,758
Business-Type ActivitiesGovernmental Activities
Percentage
Income (1)
of Personal
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Less Amounts
General Restricted for
Obligation Repaying
Bonds (1)Principal (2)Total Per Capita (4)
78,841,249$ 28,063,240$ 50,778,009$ 1.85 %2,455$
77,261,767 32,650,606 44,611,161 1.64 2,146
71,475,577 28,040,782 43,434,795 1.48 2,014
85,543,531 21,578,026 63,965,505 2.07 2,967
86,492,017 23,277,113 63,214,904 1.93 2,920
77,114,966 16,334,331 60,780,635 1.73 2,817
68,978,449 11,741,205 57,237,244 1.49 2,520
63,686,422 11,591,023 52,095,399 1.26 2,310
59,640,991 11,700,328 47,940,663 1.11 2,147
58,519,847 11,735,049 46,784,798 1.03 2,123
(1)
(2)
(3)
(4)
Note:
2022
2021
2015
Fiscal Year
Details regarding the City’s outstanding debt can be found in the notes to basic financial statements.
Reported net of premiums and discounts. Does not include revenue bonds. Tax increment, special assessment, and
tax abatement bonds are included because property taxes will be levied to pay the debt service on these issues should
the primary sources fail to provide adequate revenue.
The amounts restricted for repaying principal include the amounts restricted in all debt service funds for future debt
service.We believe this is the most accurate and consistent representation of the resources restricted for debt service
when crossover refunding bond proceeds are being held in escrow,as those resources are not included in the
governmental activities net position restricted for debt service, due to conversion for full accrual accounting.
2016
2017
Population data can be found in the Schedule of Demographic and Economic Statistics.
2014
See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property for property value data.
2018
2019
2020
2013
of Property (3)
CITY OF GOLDEN VALLEY
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Taxable Value
Estimated Actual
Percentage of
-134-
Estimated
Debt Share of
Outstanding (1)Overlapping Debt
Direct debt
City of Golden Valley 58,519,847$ 100.00 %58,519,847$
Overlapping debt
ISD No. 270, Hopkins 155,465,000 19.59 30,455,594
ISD No. 281, Robbinsdale 203,195,000 18.08 36,737,656
ISD No. 283, St. Louis Park 254,895,000 0.02 50,979
Hennepin County 1,439,270,000 2.29 32,959,283
Hennepin Suburban Park District 58,975,000 3.25 1,916,688
Hennepin Regional Railroad Authority 86,235,000 2.29 1,974,782
Metropolitan Council 1,717,186,171 1.12 19,232,485
Total overlapping debt 3,915,221,171$ 123,327,466
Total direct and overlapping debt 181,847,313$
Percentage
Governmental Unit
Source:
Applicable (1)
Note:
(1)Special assessment,tax abatement,tax increment,lease revenue,and state-aid street bonds have been included in
this table because property taxes will be used to pay the debt on these issues should other revenue sources fail to
provide adequate amounts.
Overlapping governments are those that coincide,at least in part,with the geographic boundaries of the City.This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the
residents and businesses of the City.This process recognizes that,when considering the City’s ability to issue and
repay long-term debt,the entire debt burden borne by the residents and businesses should be taken into account.
However,this does not imply that every taxpayer is a resident and,therefore,responsible for repaying the debt of
each overlapping government.
Hennepin County Taxpayer Services
CITY OF GOLDEN VALLEY
Direct and Overlapping Governmental Activities Debt
as of December 31, 2022
Estimated
-135-
Fiscal Year
2013 2014 2015 2016
Debt limit 82,331,677$ 81,576,962$ 88,034,330$ 92,926,892$
Total net debt applicable to the limit 2,927,363 2,833,906 1,712,141 7,032,733
Legal debt margin 79,404,314$ 78,743,056$ 86,322,189$ 85,894,159$
Total net debt applicable to the limit
as a percentage of the debt limit 3.56% 3.47% 1.94% 7.57%
Note:Under state finance law, the City’s outstanding general obligation debt should not exceed 3 percent of total market
property value.By law, the general obligation debt subject to the limitation may be offset by amounts set aside for
repaying general obligation bonds.
CITY OF GOLDEN VALLEY
Legal Debt Margin Information
Last Ten Fiscal Years
-136-
2017 2018 2019 2020 2021 2022
98,156,351$ 105,693,269$ 115,269,584$ 124,087,301$ 129,774,473$ 136,206,898$
6,800,074 5,732,558 4,630,783 4,385,269 4,417,473 4,181,943
91,356,277$ 99,960,711$ 110,638,801$ 119,702,032$ 125,357,000$ 132,024,955$
6.93% 5.42% 4.02% 3.53% 3.40% 3.07%
Legal Debt Margin Calculation for Fiscal Year 2022
Market value 4,540,229,944$
Debt limit (3% of market value)136,206,898
Total bonded debt 58,885,000$
Less
Debt not payable primarily from tax levies
Special assessment bonds 36,355,000
Tax increment bonds 790,000
State aid street bonds 835,000
Lease revenue bonds 14,215,000
Utility revenue bonds 2,215,000
Fund balances available for tax supported debt 293,057
Total net debt applicable to the limit 4,181,943
Legal debt margin 132,024,955$
-137-
Less Operating Net Available
Gross Revenue Expenses Revenue Principal Interest
2,502,536$ 1,470,273$ 1,032,263$ 320,000$ 118,749$
2,483,612 1,871,604 612,008 1,510,000 (2)94,968
2,455,263 1,748,165 707,098 130,000 41,718
2,406,073 1,567,226 838,847 910,000 (3)90,099
3,330,505 2,465,516 864,989 – 50,191
2,952,615 1,803,506 1,149,109 – 63,950
2,774,078 2,253,908 520,170 – 63,950
2,806,204 2,165,598 640,606 120,000 62,300
2,599,053 1,992,442 606,611 120,000 60,350
2,524,194 2,201,581 322,613 125,000 61,600
(1)
(2)
(3)
(4)
Note:
2020
2018
CITY OF GOLDEN VALLEY
Pledged Revenue Coverage
Last Ten Fiscal Years
Fiscal Year
Debt Service
Details regarding the City’s outstanding debt can be found in the notes to basic financial statements. Gross revenue
includes investment earnings and intergovernmental grants. Operating expenses do not include interest.
Excludes principal refunded from the proceeds of refunding bond issues.
Revenue Bonds (1)
In 2014,the City used available funds to exercise an early call provision and retire $1,180,000 of utility revenue
bonds before their stated maturity dates.
Utility revenue bonds, payable from the Storm Sewer Utility Fund.
In 2016, the City used available funds to exercise an early call provision and retire $775,000 of utility revenue bonds
before their stated maturity dates.
2017
2016
2015
2014
2013
2019
2021
2022
-138-
Special
Assessment
Coverage Collections Principal (4)Interest Coverage
2.35 1,223,120$ 2,880,000$ 1,955,697$ 0.25
0.38 1,124,414 3,195,000 2,047,723 0.21
4.12 980,375 3,215,000 1,999,619 0.19
0.84 667,606 3,750,000 1,826,001 0.12
17.23 1,039,971 3,675,000 1,510,438 0.20
17.97 731,351 3,770,000 1,404,916 0.14
8.13 1,189,401 3,520,000 1,191,082 0.25
3.51 521,297 3,405,000 1,088,847 0.12
3.36 709,213 6,040,000 1,040,894 0.10
1.73 781,804 3,840,000 969,174 0.16
Special Assessment Bonds
Debt Service
-139-
Per Capita
Personal Personal School
Population (1)Income (2)Income (3)Enrollment (4)
20,683 1,218,187,334$ 58,898$ 2,088 4.1 %
20,790 1,259,894,790 60,601 2,074 3.2
21,571 1,378,408,471 63,901 2,115 3.2
21,556 1,406,119,436 65,231 1,994 3.6
21,646 1,459,524,842 67,427 2,074 2.9
21,580 1,533,625,860 71,067 2,085 2.8
22,715 1,696,765,070 74,698 2,084 3.0
22,552 1,726,400,704 76,552 2,018 4.5
22,334 1,932,382,348 86,522 2,022 2.4
22,034 1,884,017,170 85,505 2,224 2.6
(1)Metropolitan Council – Regional Statistics and Data except for 2022 – City estimate.
(2)
(3)
(4)
(5)
2014
Bureau of Economic Analysis, U.S. Department of Commerce –Hennepin County. The per capita personal income
used is for that of Hennepin County,in which the City resides, the smallest region applicable to the City that this
information is available.
Minnesota Department of Economic Security – Hennepin County.
Robbinsdale and Hopkins school districts.
2022
2013
2015
2016
This estimated personal income number is calculated by taking the per capita personal income of Hennepin County
and multiplying it by the City’s population. Also see note (3) regarding the per capita personal income figures.
2017
2018
2019
2020
2021
Sources:
CITY OF GOLDEN VALLEY
Rate (5)
UnemploymentFiscal
Demographic and Economic Statistics
Last Ten Fiscal Years
Year
-140-
Employees Rank Employees Rank
General Mills, Inc.4,500 1 13.1 %5,500 1 15.7 %
Allianz Life Insurance Company 1,800 2 5.2 2,096 3 6.0
Optum Health 1,700 3 4.9 1,700 4 4.9
Honeywell Incorporated 1,700 3 4.9 1,350 5 3.9
G.H. Tennant Company 729 5 2.1 700 6 2.0
M.A. Mortenson 600 6 1.7 2,102 2 6.0
Courage Center 450 7 1.3 600 7 1.7
Preferred One 368 8 1.1 315 9 0.9
Liberty Carton 360 9 1.0 – – –
Breck School 338 10 1.0 – – –
Jim Lupient Oldsmobile – – – 325 8 0.9
McKesson Corporation – – – 300 10 0.9
Total 12,545 36.5 %14,988 42.9 %
Source:Metropolitan Council – Regional Statistics and Data
Employer Employment
CITY OF GOLDEN VALLEY
Employment
of Total City
Percentage
2013
Percentage
Current Year and Nine Years Ago
2022
of Total City
Principal Employers
-141-
Fiscal Year
2013 2014 2015 2016
Function
General government 23.10 23.10 23.50 23.50
Public safety 44.75 47.25 47.25 47.25
Community development 31.66 30.66 29.66 29.66
Public works – – – –
Parks and recreation 5.50 5.50 5.50 5.50
Water and sewer 12.34 12.34 12.34 12.34
Storm sewer – 1.00 1.00 1.00
Golf course 7.00 7.00 7.00 7.00
Motor vehicle licensing 4.00 4.00 4.00 4.00
Total 128.35 130.85 130.25 130.25
Note:
Source: Various city departments
CITY OF GOLDEN VALLEY
Full-Time Equivalent City Government Employees by Function
Last Ten Fiscal Years
The City reorganized its governmental functions in 2019,creating a separate public works function and moving
certain other departments between functions to better reflect the organization of city operations.
-142-
2017 2018 2019 2020 2021 2022
23.50 24.25 17.00 18.00 19.00 20.00
47.50 47.50 48.50 51.50 50.50 50.00
29.66 29.66 18.00 18.00 18.00 18.50
– – 20.66 20.66 20.66 21.16
7.50 7.50 8.38 8.38 8.38 9.13
12.34 12.34 12.34 12.34 12.34 12.34
1.00 1.00 1.00 1.00 1.00 1.00
8.50 8.50 11.00 11.00 11.00 11.00
4.00 4.00 5.00 5.00 5.00 5.00
134.00 134.75 141.88 145.88 145.88 148.13
-143-
Fiscal Year
2013 2014 2015 2016
Function
1,103 905 1,025 1,027
61 38 33 20
Citations written 3,524 3,488 3,138 2,659
Fire
797 631 711 747
1.0 1.2 1.2 0.5
Water
New (removed) connections 2 8 (1)9
Water main breaks 10 30 28 15
Average daily consumption
(thousands of gallons)2,518 2,213 2,156 2,106
Source:Various city departments
CITY OF GOLDEN VALLEY
Operating Indicators by Function
Last Ten Fiscal Years
Street resurfacing (miles)
Adult arrests
Juvenile arrests
Number of calls answered
Highways and streets
Police
-144-
2017 2018 2019 2020 2021 2022
817 906 681 461 244 111
29 41 51 28 4 7
4,761 3,465 2,180 1,251 708 529
649 643 734 724 651 1,432
1.2 1.3 1.6 – 1.3 3.8
46 37 5 – 8 (1)
11 22 14 28 36 30
2,171 2,275 1,849 1,860 2,119 1,955
-145-
Fiscal Year
2013 2014 2015 2016
Function
Public safety
Police
Stations 1 1 1 1
Patrol units 8 8 8 8
Fire stations 3 3 3 3
Highways and streets
Streets (miles)144 144 144 144
Streetlights 1,840 1,840 1,840 1,836
Parks and recreation
Parks acreage 462 462 462 462
Parks and nature areas 30 30 30 30
Tennis court locations 9 9 9 9
Community centers 2 2 2 2
Water
Connections 7,141 7,149 7,148 7,157
Sewer
Connections 7,179 7,188 7,234 7,205
Source:Various city departments
CITY OF GOLDEN VALLEY
Capital Asset Statistics by Function
Last Ten Fiscal Years
-146-
2017 2018 2019 2020 2021 2022
1 1 1 1 1 1
8 8 8 8 8 8
3 3 3 3 3 3
144 144 144 144 144 144
1,813 1,942 1,942 2,209 2,219 2,219
462 462 462 462 462 462
30 30 30 30 30 30
9 9 9 9 9 6
2 2 2 2 2 1
7,203 7,240 7,245 7,245 7,253 7,344
7,249 7,288 7,296 7,299 7,361 7,295
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