Golden Valley, City of - 2023 Final Issued Annual Comprehensive Financial Report (ACFR) - LockedAnnual Comprehensive
Financial Report
For the Fiscal Year Ended December 31, 2023 • City of Golden Valley, Minnesota
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2024 Views Of The Valley
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CITY OF GOLDEN VALLEY
HENNEPIN COUNTY, MINNESOTA
Annual Comprehensive Financial
for Year Ended
December 31, 2023
Prepared by
Finance Department
Sue Virnig – Finance Director
Jennifer Hoffman – Accounting Manager
Analeigh Moser – Accountant
Elise Lieberthal – Payroll Accountant
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CITY OF GOLDEN VALLEY, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
I. INTRODUCTORY SECTION
Elected and Appointed Officials 3
Organization Chart 5
Finance Director's Letter of Transmittal 7
GFOA Certificate of Achievement 11
II. FINANCIAL SECTION
15
Independent Auditor's Report
Management's Discussion and Analysis 19
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position Statement 1 33
Statement of Activities Statement 2 34
Fund Financial Statements:
Governmental Funds:
Balance Sheet Statement 3 36
Reconciliation of the Balance Sheet to the Statement of Net Position Statement 4 39
Statement of Revenues, Expenditures, and Changes in Fund Balance Statement 5 40
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balance to the Statement of Activities Statement 6 42
Proprietary Funds:
Statement of Net Position Statement 7 43
Statement of Revenues, Expenses, and Changes in Fund Net Position Statement 8 44
Statement of Cash Flows Statement 9 45
Notes to Financial Statements 47
Required Supplementary Information:
Budgetary Comparison Schedule - General Fund Statement 10 86
Other Post-Employment Benefits Plan
Schedule of Changes in the City's Total OPEB Liability and Related Ratios Statement 11 87
PERA - General Employees Retirement Fund
Schedule of Proportionate Share of Net Pension Liability Statement 12 88
Schedule of Pension Contributions Statement 13 89
PERA - Public Employees Police and Fire Fund
Schedule of Proportionate Share of Net Pension Liability Statement 14 90
Schedule of Pension Contributions Statement 15 91
CITY OF GOLDEN VALLEY, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
Golden Valley Fire Department Relief Association
Schedule of Changes in the Net Pension Asset and Related Ratios Statement 16 92
Schedule of Contributions Statement 17 94
Notes to Required Supplementary Information 95
Supplementary Information:
Combining and Individual Nonmajor Fund Financial Statements:
Nonmajor Governmental Funds:
Combining Balance Sheet Statement 18 107
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Statement 19 109
Nonmajor Special Revenue Funds:
Subcombining Balance Sheet Statement 20 110
Subcombining Statement of Revenues, Expenditures, and Changes in Fund Balance Statement 21 112
Nonmajor Debt Service Funds:
Subcombining Balance Sheet Statement 22 114
Subcombining Statement of Revenues, Expenditures, and Changes in Fund Balance Statement 23 115
Nonmajor Capital Project Funds:
Subcombining Balance Sheet Statement 24 116
Subcombining Statement of Revenues, Expenditures, and Changes in Fund Balance Statement 25 118
Internal Service Funds:
Combining Statement of Net Position Statement 26 122
Combining Statement of Revenues, Expenditures, and Changes in Net Position Statement 27 123
Combining Statement of Cash Flows Statement 28 124
CITY OF GOLDEN VALLEY, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
III. STATISTICAL SECTION (UNAUDITED)
Net Position by Component Table 1 128
Changes in Net Position Table 2 130
Fund Balances of Governmental Funds Table 3 134
Changes in Fund Balances of Governmental Funds Table 4 136
Governmental Activities Tax Revenues by Source Table 5 138
Assessed Value and Estimated Actual Value of Taxable Property Table 6 139
Property Tax Rate of Direct and Overlapping Governments Table 7 140
Principal Property Taxpayers Table 8 141
Property Tax Levies and Collections Table 9 143
Ratios of Outstanding Debt By Type Table 10 144
Ratios of General Bonded Debt Outstanding Table 11 146
Direct and Overlapping Governmental Activities Debt Table 12 147
Legal Debt Margin Information Table 13 148
Pledged Revenue Coverage Table 14 150
Demographic and Economic Statistics Table 15 152
Principal Employers Table 16 153
Full-Time Equivalent City Government Employees by Function Table 17 154
Operating Indicators by Function Table 18 156
Capital Asset Statistics by Function Table 19 158
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I. INTRODUCTORY SECTION
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CITY OF GOLDEN VALLEY, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
December 31, 2023
Elected Officials Position Term Expires
Shep Harris Mayor December 31, 2023
Maurice Harris Councilmember December 31, 2027
Denise La Mare-Anderson Councilmember December 31, 2025
Gillian Rosenquist Councilmember December 31, 2025
Kimberly Sanberg Councilmember December 31, 2023
Appointed Officials
Timothy Cruikshank City Manager Appointed
Susan Virnig Finance Director Appointed
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Physical
Development Public Works
Police
Fire
Human Resources Parks &
Recreation
Administrative
Services Legal
Communications
Boards and Commissions
Board of Zoning Appeals
Civil Service ommission
Environmental Commission
Human Rights Commission
Human Services Commission
Open Space & Recreation Commission
Planning Commission
City Council/
HRA
Citizens of
Golden Valley
City Clerk City Manager
Organization Chart
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November 26, 2024
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, 2023. 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 Redpath and Company, LLC., a firm of licensed
certified public accountants. The goal of the independent audit was to provide reasonable assurance that the
financial statements of the City for the fiscal year ended December 31, 2023, 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, 2023,
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 22,305. 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 31 sworn officers, which include the police chief, 2 assistant chiefs, and
7 sergeants. Fire services are provided by approximately 50 paid on-call firefighters, fire chief, two assistant
fire chiefs, and 3 firefighters that are code enforcement officers. The City has an ISO Class 2 insurance
rating.
The 2023–2024 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 2027 after the Pavement Management Program
(PMP) ends in 2025. In 2021, the City’s PMP program was resumed, after being delayed in 2020 due to the
unrest of COVID-19. The City approved a 10-year Capital Improvement Program (CIP) in 2023 for the
years 2024–2033.
Each year the city reviews potential bond refundings 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 helped keep total overall expenditures under budget in 2023.
The City has once again taken a conservative approach for the 2024 budget year.
The following table shows the City’s building activity for the last 10 years:
Total Permits
Year Number Value
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
2023 3,505 $ 174,193,226
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The following permitting activity is notable throughout the City in 2023:
Residential
5 new single-family homes were constructed with a value of $3,600,000.
3,345 residential remodels and additions including many roof, window, and siding replacements
related to widespread storm damage were completed with a total value of $61,737,049.
Commercial
128 commercial remodel/addition projects with a total valuation of $108,340,913.
Commercial (Over $5 Million in Value):
651 Douglas Drive N New Construction $14,858,341
751 Douglas Drive N New Construction $17,500,712
700 Ottawa Ave N New Construction $11,600,000
8855 Wayzata Blvd New Construction $8,100,000
1 General Mills Blvd Remodel $6,055,033
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 118.6 of 120.00 miles. The City is looking forward to finishing the
Pavement Management Program 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 2023, Brookview Golf Course revenues were increased due to additional rounds of play and
higher rates.
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 Organization, 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 several years, with the City and many outside
agencies funding, has helped further the improvements to reduce the flooding. The 2024–2033 CIP outlines
those projects.
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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 2023 the city asked voters to approve a 1.25
percent local sales tax which was passed. Collections of that tax began in April 2024.
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, 2022.
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.
Sue Watson, Wanita Williams, 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,
Lyle Hodges, CPA
Finance Director
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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, 2022
Executive Director/CEO
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II. FINANCIAL SECTION
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400 Robert Street North, Suite 1600, St. Paul, MN, 55101 651.426.7000 www.redpathcpas.com
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Golden Valley, Minnesota
Report on the Audit of the Financial Statements
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, as of and for the year ended December 31, 2023, and the
related notes to the financial statements, which collectively comprise the City of Golden Valley,
Minnesota'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 of Golden Valley,
Minnesota, as of December 31, 2023, and the respective changes in financial position, and,
where applicable, cash flows thereof for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities
under those standards are further described in the Auditor's Responsibilities for the Audit of the
Financial Statements section of our report. We are required to be independent of the City of
Golden Valley, Minnesota and to meet our other ethical responsibilities, in accordance with the
relevant ethical requirements relating to our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and
for the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether
due to fraud or error.
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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 of
Golden Valley, Minnesota’s ability to continue as a going concern for twelve months beyond the
financial statement date, including any currently known information that may raise substantial
doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but
is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance
with generally accepted auditing standards and Government Auditing Standards will always
detect a material misstatement when it exists. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in
the aggregate, they would influence the judgment made by a reasonable user based on the
financial statements.
In performing an audit in accordance with generally accepted auditing standards and
Governmental Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the
audit.
Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the City of Golden Valley, Minnesota's
internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the City of Golden Valley, Minnesota's
ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal
control related matters that we identified during the audit.
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Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, the budgetary comparison schedule, and the schedules of
OPEB and pension information, as listed in the table of contents, be presented to supplement the
basic financial statements. Such information is the responsibility of management and, although
not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context. We
have applied certain limited procedures to the required supplementary information in accordance
with auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about the methods of preparing the information and comparing the
information for consistency with management's responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Golden Valley, Minnesota's basic financial statements. The
accompanying combining and individual fund financial statements are presented for purposes of
additional analysis and are not a required part of the basic financial statements. Such
information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the basic financial statements. The
information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic
financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the combining and individual fund financial statements are fairly
stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other
information comprises the introductory 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.
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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
November 26, 2024 on our consideration of the City of Golden Valley, Minnesota’s internal
control over financial reporting and on our tests of its compliance with certain provisions of
laws, regulations, contracts, and grant agreements and other matters. The purpose of that report
is solely to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the City of Golden Valley, Minnesota's internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the City of Golden Valley, Minnesota’s internal control over
financial reporting and compliance.
REDPATH AND COMPANY, LLC
St. Paul, Minnesota
November 26, 2024
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CITY OF GOLDEN VALLEY
Management’s Discussion and Analysis
Year Ended December 31, 2023
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, 2023. 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 2023 by $189,082,261 (net position). The City’s
government-wide net position increased $27,544,011 in 2023, including increases of $19,957,036
and $7,586,975, 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 2023 fiscal year, the City’s governmental funds reported combined ending fund
balances of $64,792,913, an increase of $10,610,443 compared to the prior year-end.
The unassigned fund balance for the City’s General Fund was $19,141,728 at year-end, which
represents 66.8 percent of 2023 General Fund expenditures and transfers out.
The City’s long-term bonded debt decreased $1,510,000 in 2023, excluding unamortized
premiums, as the City issued $3,955,000 of general obligation (G.O.) special assessment bonds in
2023, while making scheduled principal payments of $5,465,000.
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 Capital Improvements 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.
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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) is presented following the notes to the
basic financial statements. RSI includes a budgetary comparison schedule for the General Fund, a
schedule on the City’s other post-employment benefits (OPEB), and schedules on pension plans.
Combining and individual fund statements for nonmajor funds and internal service funds 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 $189,082,261 at the end of the 2023 fiscal year, which represents an increase in
overall net position of $27,544,011 from current year operations.
Net Position – The City has 53.3 percent of its total net position invested in capital assets (land, land
improvements, buildings and improvements, machinery and equipment, infrastructure, and construction in
progress) less any related debt used to acquire those assets that is still outstanding. The City uses these
capital assets to provide services to citizens; consequently, these assets are not available for future
spending. Although the City’s investment in its capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources, since the capital
assets themselves cannot liquidate these liabilities. An additional 16.0 percent of the City’s net position
represents resources that are subject to external restrictions on how they may be used. The remaining
30.7 percent of net position is unrestricted and may be used to meet the City’s ongoing obligations.
The following is a summary of the City’s net position at the end of the last two fiscal years:
The increase in current and other assets was mainly in cash and temporary investments, primarily due to
positive operating results for the current year. Changes in the City’s proportionate share of two state-wide
pension plans and the City’s OPEB Plan contributed to the changes in deferred outflows/inflows of
resources and long-term liabilities.
2023 2022 2023 2022 2023 2022
Current and other assets 89,267,048$ 73,453,137$ 28,478,259$ 32,759,835$ 117,745,307$ 106,212,972$
Capital assets 94,585,648 92,125,501 59,656,327 47,920,083 154,241,975 140,045,584
Total assets 183,852,696 165,578,638 88,134,586 80,679,918 271,987,282 246,258,556
Deferred outflows of resources 10,468,434 13,633,387 - - 10,468,434 13,633,387
Long-term liabilities
(including current portion) 72,439,332 84,375,230 2,167,322 2,244,403 74,606,654 86,619,633
Other Liabilities 6,314,043 6,096,019 2,117,346 2,172,572 8,431,389 8,268,591
Total liabilities 78,753,375 90,471,249 4,284,668 4,416,975 83,038,043 94,888,224
Deferred inflows of resources 10,335,412 3,465,469 - - 10,335,412 3,465,469
Net Position
Net investment in capital assets 43,773,412 33,605,654 56,948,218 45,675,680 100,721,630 79,281,334
Restricted 30,382,206 31,050,961 - - 30,382,206 31,050,961
Unrestricted 31,076,725 20,618,692 26,901,700 30,587,263 57,978,425 51,205,955
Total Net Position 105,232,343$ 85,275,307$ 83,849,918$ 76,262,943$ 189,082,261$ 161,538,250$
Governmental Activities Business-Type Activities Total
21
The following is a summary of the City’s changes in net position for the last two fiscal years:
Governmental Activities – Governmental activities net position increased by $19,957,036. Key elements
of this net increase include:
Charges for services increased $3,141,187 from the prior year, mainly due to increased revenue
from building permits as residents sought repairs after significant summer storms.
Property taxes increased $3,349,124 from the prior year, due to an increase in the adopted levy.
Investment earnings were $4,459,807 higher than last year, due to increased investment
returns on the City’s investment portfolio.
Governmental activities expenses increased $2,383,890 (7.3 percent) overall, with the increase
spread across all functions. Increases in pension and OPEB costs, HRA and other community
development activity, and normal inflationary increases contributed to this overall increase.
2023 2022 2023 2022 2023 2022
Revenues
Program revenues
Charges for services 6,479,283$ 3,338,096$ 22,526,874$ 20,412,518$ 29,006,157$ 23,750,614$
Operating grants and contributions 1,977,073 871,950 166,562 388,508 2,143,635 1,260,458
Capital grants and contributions 9,813,055 3,698,737 1,027,160 215,747 10,840,215 3,914,484
General revenues - -
Property taxes 32,914,290 29,565,166 - - 32,914,290 29,565,166
Franchise taxes 963,209 796,783 1,319,569 1,500,000 2,282,778 2,296,783
Unrestricted grants and contributions 113,750 239,785 - - 113,750 239,785
Other general revenues - 114,781 - - - 114,781
Investment earnings (charges)2,669,882 (1,789,925) 1,450,004 (1,079,414) 4,119,886 (2,869,339)
Gain on sale of capital assets 54,705 89,687 133,629 - 188,334 89,687
Total revenues 54,985,247 36,925,060 26,623,798 21,437,359 81,609,045 58,362,419
Expenses
General government 6,273,466 5,359,991 - - 6,273,466 5,359,991
Public safety 9,032,209 8,919,678 - - 9,032,209 8,919,678
Community development 3,965,397 3,014,245 - - 3,965,397 3,014,245
Public works 11,820,506 11,003,765 - - 11,820,506 11,003,765
Parks and recreation 2,393,395 2,764,425 - - 2,393,395 2,764,425
Interest and fiscal charges 1,569,310 1,608,289 - - 1,569,310 1,608,289
Water and sewer - - 10,438,423 10,222,237 10,438,423 10,222,237
Storm sewer - - 2,576,983 2,270,408 2,576,983 2,270,408
Golf course - - 4,347,256 4,096,568 4,347,256 4,096,568
Motor vehicle licensing - - 558,036 573,795 558,036 573,795
Recycling - - 1,090,053 1,059,807 1,090,053 1,059,807
Total expenses 35,054,283 32,670,393 19,010,751 18,222,815 54,065,034 50,893,208
Change in net position
before transfers 19,930,964 4,254,667 7,613,047 3,214,544 27,544,011 7,469,211
Transfers 26,072 30,000 (26,072) (30,000) - -
Change in net position 19,957,036 4,284,667 7,586,975 3,184,544 27,544,011 7,469,211
Net position
Beginning 85,275,307 80,990,640 76,262,943 73,078,399 161,538,250 154,069,039
Ending 105,232,343$ 85,275,307$ 83,849,918$ 76,262,943$ 189,082,261$ 161,538,250$
Governmental Activities Business-Type Activities Total
22
The following graphs provide additional information related to governmental activity revenues and
expenses for the current year:
23
Business-Type Activities – Business-type activities net position increased by $7,586,975. Key elements
of this net increase include:
Charges for services increased $2,114,356, 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 $30,246 from last year, due to a increased
usage of that service.
o The Brookview golf course and grill facility increased revenues as these operations
continued to rebound from the impact of COVID-19-related restrictions.
Operating grants were $221,946 lower than last year. In the prior year, the City utilized a state
flood damage grant and a small portion of the City’s American Rescue Plan Act funding in 2022,
while in 2023, those activities were not present in the Business-type activities.
Capital grants were $811,413 higher than last year, due to recognizing state aid balances for
multiple capital projects.
Investment earnings were $2,529,418 higher than the prior year, due to increased returns on the
City’s pooled investment portfolio.
Business-type activities expenses were $787,936 (4.3 percent) higher than the previous year.
Expenses in all areas increased except motor vehicles where expenses decreased slightly. Overall,
expenses were in line with inflationary increases and the cost of operations as expected.
THIS SECTION LEFT BLANK INTENTIONALLY
24
The following graphs provide additional information related to business-type activity revenues and
expenses for the current year:
25
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 $64,792,913, an increase of $10,610,443 in comparison with the prior year. The
unassigned portion of fund balance is $19,124,651, which may be used for any approved public purpose.
The remainder of the fund balance is either: 1) nonspendable in prepaid expenses ($17,127), 2) restricted
by various externally imposed constraints ($30,138,662), 3) internally committed for particular purposes
($162,414), or 4) internally assigned for particular purposes ($15,350,059).
General Fund – The fund balance of the General Fund increased by $5,415,789 to $22,749,108 at
December 31, 2023. Expenditures were under budget by $2,523,164 because of unfilled positions across
various departments. Revenue came in $2,892,625 over budget. Much of this was related to permits
coming in substantially over budget as a result of storm damage repair permitting, as well as investment
earnings exceeding budget. General Fund operating results can be summarized as follows:
Of the total fund balance, $17,127 is nonspendable for prepaids. The unassigned fund balance at
December 31, 2023 of $19,141,728 is equal to 74.6 percent of total 2023 expenditures and other
financing uses in the General Fund, which puts the fund in an excellent financial position. These reserves
are needed for working capital to help pay for expenditures during the first half of the year, since the City
does not receive any significant money from its main revenue source—property taxes—until July of each
year.
THIS SECTION LEFT BLANK INTENTIONALLY
2023 2022
Fund Balance 17,333,319$ 15,554,908$
Additions
Revenue 31,046,835 25,324,615
Other sources 30,000 30,000
Total additions 31,076,835 25,354,615
Deduction
Expenditures 22,146,046 20,826,204
Other uses 3,515,000 2,750,000
Total deductions 25,661,046 23,576,204
Fund balance - end of year 22,749,108$ 17,333,319$
26
The following is an analysis of 2023 General Fund revenue compared to budget:
General Fund revenue was $31,046,835 in 2023, an increase of $5,722,220 from the previous year. The
increase was attributable to several factors including a $1,889,268 increase in property tax revenue from a
larger levy, along with a $1,421,857 increase in building permits and licenses due to storm damage
requiring residents to obtain permits for roofs, windows and siding repairs. In addition, the investment
earnings in the General Fund increased by $1,269,176 as a result of better than expected market
conditions.
The following is an analysis of 2023 General Fund expenditures compared to budget:
General Fund 2023 expenditures of $22,146,046 represented an increase of $1,319,842 from the prior
year. The largest expenditure increases were in the general government, public works, and parks and
recreation program areas. Higher costs for legal services, fire department personnel and supplies, building
inspections, street and park maintenance, and recreation program personnel and supplies contributed to
the overall increase.
Revenue
Original
Budget Final Budget Actual
Over (Under)
Final Budget
Percent Over
(Under) Budget
Taxes 24,849,020$ 24,849,020$ 24,105,984$ (743,036)$ -3.0%
Licenses and permits 1,221,705 1,536,705 3,264,091 1,727,386 112.4%
Intergovernmental 99,280 99,280 1,108,638 1,009,358 1016.7%
Charges for services 1,462,065 1,462,065 1,612,851 150,786 10.3%
Fines and forfeits 76,640 76,640 101,924 25,284 33.0%
Investment income 125,000 125,000 756,705 631,705 505.4%
Other revenue 5,500 5,500 96,642 91,142 1657.1%
Totals 27,839,210$ 28,154,210$ 31,046,835$ 2,892,625$ 10.3%
Expenditure
Original
Budget Final Budget Actual
Over (Under)
Final Budget
Percent Over
(Under) Budget
General government 2,654,915$ 2,654,915$ 2,285,340$ 369,575$ 13.9%
Administrative services 2,700,435 2,700,435 2,809,502 (109,067) -4.0%
Caualty insurance 370,000 370,000 341,320 28,680 7.8%
Public safety 9,889,815 9,889,815 7,899,628 1,990,187 20.1%
Community development 2,383,765 2,383,765 2,186,543 197,222 8.3%
Public works 5,217,140 5,217,140 5,382,249 (165,109) -3.2%
Parks and recreation 1,453,140 1,453,140 1,241,464 211,676 14.6%
Totals 24,669,210$ 24,669,210$ 22,146,046$ 2,523,164$ 10.2%
27
Other Major Governmental Funds – The City reported five other major governmental funds for 2023.
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 $90,500 in 2023, due to
interest earned on ARPA funds held by the City. At year-end, the City has $1,686,733 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
$10,893,147 accumulated for future debt service. Fund balance increased by $906,142 in 2023, 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 $1,856,424 in 2023, ending the year at
$6,215,091, 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 2023 PMP construction with a $4.2 million
bond issue and a transfer of $900,000 from the General Fund. Fund balance increased $2,265,531 during
the year, leaving a fund balance of $8,928,194 at year-end.
The Capital Improvement Capital Project Fund ended the year with a fund balance of $1,452,158 which
was a decrease of $1,393,993 in 2023. Capital outlay exceeded current year revenues but will be
reimbursed in future years with state aid revenue.
The City’s remaining nonmajor governmental funds ended the year with cumulative fund balances of
$14,435,282, an increase of $1,470,230 from the previous year-end, mainly due to capital improvement
project expenditures ended the year less than inflows from tax increments and transfers from other funds.
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 $86,582,656 at year-end, of which $29,634,438 was
unrestricted. The total net position of these funds improved by $8,165,964 during 2023.
Utility Fund net position increased $4,968,566, due to operating income of $2,800,795 and the allocation
of $1,319,569 of franchise taxes to this fund in 2023.
Storm Sewer Utility Fund net position increased $2,087,335, due to operating income of $421,348 during
the year along with $1,027,160 of intergovernmental revenue during the year related to grants.
The Brookview Operating (Golf Course) Fund had an increase in net position of $973,453, due to
operating income of $921,137 for 2023. Golf course operating revenue for 2023 increased $527,671 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 $14,601, 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 $151,211 for the year. Operating income was a
negative $13,744 loss but grants and investment earnings brought the net position up overall.
28
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, 2023 was $154,242,511, an increase of
$14,196,927 from the prior year. The City’s capital assets for the last two years are as follows:
The City’s capital assets before depreciation increased by $23,010,370 during 2023, mainly in
construction in progress on street, utility, and storm sewer infrastructure projects across the City. This
increase was partially offset by an increase of $8,813,443 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 $12,792,001 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:
The City issued $3,955,000 of new G.O. special assessment debt in 2023 and made scheduled debt
principal payments of $5,340,000 during the year. Additional details of long-term liabilities activity for
the year can be found in Note 5 of the notes to basic financial statements.
2023 2022 2023 2022 2023 2022
Land 3,527,685$ 3,527,685$ 993,912$ 993,912$ 4,521,597$ 4,521,597$
Land improvements 8,670,201 8,203,678 5,221,016 3,370,258 13,891,217 11,573,936
Buildings and improvements 29,925,464 29,316,336 840,570 808,625 30,766,034 30,124,961
Machinery and equipment 18,612,097 17,706,469 5,464,845 5,336,285 24,076,942 23,042,754
Infrastructure 146,235,973 146,403,581 61,490,776 61,490,776 207,726,749 207,894,357
Construction in progress 15,483,702 8,208,470 19,784,699 7,874,495 35,268,401 16,082,965
Less accumultated - -
depreciation (127,869,474) (121,240,718) (34,138,955) (31,954,268) (162,008,429) (153,194,986)
Net total 94,585,648$ 92,125,501$ 59,656,863$ 47,920,083$ 154,242,511$ 140,045,584$
Governmental Activities Business-Type Activities Total
2023 2022 2023 2022 2023 2022
G.O. special assessment bonds 36,230,000$ 36,355,000$ -$ -$ 36,230,000$ 36,355,000$
G.O. street reconstruction bond 4,230,000 4,475,000 - - 4,230,000 4,475,000
HRA lease revenue bonds 13,480,000 14,215,000 - - 13,480,000 14,215,000
G.O. tax increment bonds 665,000 790,000 - - 665,000 790,000
G.O. state aid street bonds 680,000 835,000 - - 680,000 835,000
Revenue bonds - - 2,090,000 2,215,000 2,090,000 2,215,000
Unamortized premiums 1,945,637 1,849,847 27,346 29,403 1,972,983 1,879,250
Compensated absences 1,561,317 1,609,482 - - 1,561,317 1,609,482
Net pension liability - PERA 10,981,155 21,200,462 - - 10,981,155 21,200,462
Total OPEB liability 2,666,223 3,045,439 - - 2,666,223 3,045,439
Net total 72,439,332$ 84,375,230$ 2,117,346$ 2,244,403$ 74,556,678$ 86,619,633$
Governmental Activities Business-Type Activities Total
29
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 2024 budget:
The City’s 2024 total budgeted tax levy went up by 6.5 percent from 2023. 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.
The City continues to plan for the construction of a new fire station to consolidate the operations
of Stations 2 and 3. During the 2023 legislative session, the City received a state grant of
$3,172,000 for this project.
The City’s 2024 housing and redevelopment budget increased its housing levy by $43,880 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.
30
BASIC FINANCIAL STATEMENTS
31
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32
CITY OF GOLDEN VALLEY, MINNESOTA
STATEMENT OF NET POSITION Statement 1
December 31, 2023
Governmental Business-Type
Activities Activities Total
Assets:
Cash and investments $70,979,174 $27,263,634 $98,242,808
Accrued interest receivable 363,520 -363,520
Accounts receivable, net 2,019,066 2,337,903 4,356,969
Due from other governmental units 8,201,688 -8,201,688
Prepaid expenses 17,127 368,535 385,662
Inventory 144,121 33,625 177,746
Delinquent taxes receivable 1,196,098 -1,196,098
Special assessments receivable 3,092,454 386,534 3,478,988
Internal balances 1,911,972 (1,911,972) -
Net pension asset - fire relief 1,341,828 -1,341,828
Capital assets - nondepreciable 19,011,387 20,778,611 39,789,998
Capital assets - net of accumulated depreciation 75,574,261 38,877,716 114,451,977
Total assets 183,852,696 88,134,586 271,987,282
Deferred outflows of resources:
Related to pensions - PERA 7,892,125 -7,892,125
Related to pensions - fire relief 932,946 -932,946
Related to OPEB 1,643,363 -1,643,363
Total deferred outflows of resources 10,468,434 -10,468,434
Liabilities:
Accounts payable and other current liabilities 2,168,710 1,253,416 3,422,126
Deposits payable 1,737,309 891,532 2,628,841
Accrued interest payable 716,294 22,374 738,668
Unearned revenue 1,691,730 -1,691,730
Long-term liabilities:
Due within one year 6,954,855 130,000 7,084,855
Due in more than one year 51,837,099 1,987,346 53,824,445
Other post-employment benefits:
Due within one year 171,959 -171,959
Due in more than one year 2,494,264 -2,494,264
Net pension liability:
Due in more than one year 10,981,155 -10,981,155
Total liabilities 78,753,375 4,284,668 83,038,043
Deferred inflows of resources:
Related to pensions - PERA 8,712,568 -8,712,568
Related to pensions - fire relief 480,707 -480,707
Related to OPEB 1,142,137 -1,142,137
Total deferred inflows of resources 10,335,412 -10,335,412
Net position:
Net investment in capital assets 43,773,412 56,948,218 100,721,630
Restricted for:
Debt service 14,872,057 -14,872,057
Redevelopment 2,206,642 -2,206,642
Capital improvements 9,854,808 -9,854,808
Fire relief pensions 1,341,828 -1,341,828
Public safety 977,343 -977,343
Other purposes 1,129,528 -1,129,528
Unrestricted 31,076,725 26,901,700 57,978,425
Total net position $105,232,343 $83,849,918 $189,082,261
The accompanying notes are an integral part of these financial statements.
33
CITY OF GOLDEN VALLEY, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2023
Functions/Programs Expenses
Governmental activities:
General government $6,273,466
Community development 3,965,397
Public safety 9,032,209
Public works 11,820,506
Parks and recreation 2,393,395
Interest and fiscal charges 1,569,310
Total governmental activities 35,054,283
Business-type activities:
Water and sewer 10,438,423
Storm sewer 2,576,983
Golf course 4,347,256
Motor vehicle licensing 558,036
Recycling 1,090,053
Total business-type activities 19,010,751
Total primary government $54,065,034
The accompanying notes are an integral part of these financial statements.
34
Statement 2
Operating Capital
Charges For Grants and Grants and Governmental Business-Type
Services Contributions Contributions Activities Activities Total
$1,203,680 $7,800 $ - ($5,061,986) $ - ($5,061,986)
2,972,396 476,201 - (516,800) - (516,800)
280,663 1,483,008 - (7,268,538) - (7,268,538)
853,368 - 9,813,055 (1,154,083) - (1,154,083)
1,169,176 10,064 - (1,214,155) - (1,214,155)
- - - (1,569,310) - (1,569,310)
6,479,283 1,977,073 9,813,055 (16,784,872) - (16,784,872)
13,132,137 6,535 - - 2,700,249 2,700,249
2,954,818 4,820 1,027,160 - 1,409,815 1,409,815
4,904,061 2,000 - - 558,805 558,805
448,001 60,174 - - (49,861) (49,861)
1,087,857 93,033 - - 90,837 90,837
22,526,874 166,562 1,027,160 - 4,709,845 4,709,845
$29,006,157 $2,143,635 $10,840,215 (16,784,872) 4,709,845 (12,075,027)
General revenues:
Property taxes 32,914,290 - 32,914,290
Franchise taxes 963,209 1,319,569 2,282,778
Unrestricted grants and contributions 113,750 - 113,750
Unrestricted investment earnings 2,669,882 1,450,004 4,119,886
Gain on disposal of capital assets 54,705 133,629 188,334
Transfers 26,072 (26,072) -
Total general revenues and transfers 36,741,908 2,877,130 39,619,038
Change in net position 19,957,036 7,586,975 27,544,011
Net position - January 1 85,275,307 76,262,943 161,538,250
Net position - December 31 $105,232,343 $83,849,918 $189,082,261
Net (Expenses) Revenue and Changes in Net PositionProgram Revenues
The accompanying notes are an integral part of these financial statements.
35
CITY OF GOLDEN VALLEY, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2023
American Street
Rescue Reconstruction State Aid
General Fund Plan Act Debt Service Construction
Assets:
Cash and investments $24,791,588 $1,686,733 $10,894,247 $5,119,186
Accrued interest receivable 363,520 - - -
Accounts receivable 137,504 - - 1,169,234
Due from other governmental units 27,184 - - 3,290,666
Due from other funds - - - -
Prepaid expenses 17,127 - - -
Delinquent taxes receivable 1,190,223 - - -
Special assessments receivable 19,883 - 2,676,442 209,543
Advances to other funds - - - -
Total assets $26,547,029 $1,686,733 $13,570,689 $9,788,629
Liabilities:
Accounts payable $143,629 $ - $ - $ -
Salaries payable 1,007,550 - - -
Due to other governmental units 314,711 - - -
Due to other funds - - - -
Contracts payable - - - 73,329
Deposits payable 996,995 - 1,100 -
Unearned revenue 124,930 1,566,800 - -
Advances from other funds - - - -
Total liabilities 2,587,815 1,566,800 1,100 73,329
Deferred inflows of resources:
Unavailable revenue - property taxes 1,190,223 - - -
Unavailable revenue - special assessments 19,883 - 2,676,442 209,543
Unavailable revenue - state aid - - - 3,290,666
Total deferred inflows of resources 1,210,106 - 2,676,442 3,500,209
Fund balance:
Nonspendable 17,127 - - -
Restricted 977,343 119,933 10,893,147 6,215,091
Committed - - - -
Assigned 2,612,910 - - -
Unassigned 19,141,728 - - -
Total fund balance 22,749,108 119,933 10,893,147 6,215,091
Total liabilities, deferred inflows of
resources, and fund balances $26,547,029 $1,686,733 $13,570,689 $9,788,629
The accompanying notes are an integral part of these financial statements.
36
Statement 3
Street Other
Reconstruction Capital Governmental
Capital Project Improvement Funds Total
$8,570,342 $1,632,332 $16,039,664 $68,734,092
- - - 363,520
569,498 - 138,391 2,014,627
- 4,883,838 - 8,201,688
- 181,560 - 181,560
- - - 17,127
- - 5,875 1,196,098
9,614 40,351 136,621 3,092,454
- 180,000 - 180,000
$9,149,454 $6,918,081 $16,320,551 $83,981,166
$ - $36,482 $315,169 $495,280
- - - 1,007,550
- - 26,553 341,264
- - 255,465 255,465
181,521 6,940 26,821 288,611
30,125 498,312 191,904 1,718,436
- - - 1,691,730
- - 926,861 926,861
211,646 541,734 1,742,773 6,725,197
- - 5,875 1,196,098
9,614 40,351 136,621 3,092,454
- 4,883,838 - 8,174,504
9,614 4,924,189 142,496 12,463,056
- - - 17,127
5,761,993 - 6,171,155 30,138,662
- - 162,414 162,414
3,166,201 1,452,158 8,118,790 15,350,059
- - (17,077) 19,124,651
8,928,194 1,452,158 14,435,282 64,792,913
$9,149,454 $6,918,081 $16,320,551 $83,981,166
The accompanying notes are an integral part of these financial statements.
37
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38
CITY OF GOLDEN VALLEY, MINNESOTA
RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS Statement 4
TO THE STATEMENT OF NET POSITION - GOVERNMENTAL ACTIVITIES
December 31, 2023
Fund balance - governmental funds (Statement 3) $64,792,913
Net position reported for governmental activities in the statement of net position is
different because:
Certain assets used in governmental activities are not current financial resources and
therefore, are not reported as assets in governmental funds: 94,573,217
Other long-term assets are not available to pay for current period expenditures and
therefore, are reported as unavailable revenue in governmental funds:
Delinquent property taxes receivable 1,196,098
Delinquent and deferred special assessments receivable 3,092,454
Long-term receivables 8,174,504
Long-term liabilities are not due and payable in the current period and therefore, are not
reported as assets in governmental funds. Long-term liabilities at year-end consist of:
Bonds payable (55,285,000)
Unamortized bond premiums (1,945,637)
Accrued interest payable (716,294)
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 resources of the internal service funds are included in governmental activities:
Net position of internal service funds (11,382,650)
Add back internal service fund balances allocated to business-type activities 2,732,738
Net position - governmental activities (Statement 1)$105,232,343
The accompanying notes are an integral part of these financial statements.
39
CITY OF GOLDEN VALLEY, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2023
American Street
Rescue Reconstruction State Aid
General Fund Plan Act Debt Service Construction
Revenue:
Property taxes $24,097,267 $ - $4,781,447 $ -
Tax increments - - - -
Special assessments 8,717 - 774,153 50,811
Franchise taxes - - - -
Licenses and permits 3,264,091 - - -
Intergovernmental revenue 1,108,638 50,000 - 3,139,269
Charges for services 1,612,851 - - -
Fines and forfeits 101,924 - - -
Investment income 756,705 90,500 315,362 211,225
Other revenue 96,642 - - 22,276
Total revenues 31,046,835 140,500 5,870,962 3,423,581
Expenditures:
Current:
General government 5,436,162 50,000 - -
Community development 2,186,543 - - -
Public safety 7,899,628 - - -
Public works 5,382,249 - - -
Parks and recreation 1,241,464 - - -
Capital outlay - - - 1,380,360
Debt service:
Principal - - 4,005,000 155,000
Interest and fiscal charges - - 959,820 31,797
Total expenditures 22,146,046 50,000 4,964,820 1,567,157
Revenue over (under) expenditures 8,900,789 90,500 906,142 1,856,424
Other financing sources (uses):
Sale of capital assets - - - -
Bonds issued - - - -
Premium on bonds issued - - - -
Transfers in 30,000 - - -
Transfers out (3,515,000) - - -
Total other financing sources (uses)(3,485,000) - - -
Net change in fund balance 5,415,789 90,500 906,142 1,856,424
Fund balance - January 1 17,333,319 29,433 9,987,005 4,358,667
Fund balance - December 31 $22,749,108 $119,933 $10,893,147 $6,215,091
The accompanying notes are an integral part of these financial statements.
40
Statement 5
Street Other
Reconstruction Capital Governmental
Capital Project Improvement Funds Total
$ - $ - $1,436,641 $30,315,355
- - 1,585,702 1,585,702
1,674 398 43,958 879,711
569,498 - 393,711 963,209
- - - 3,264,091
- 427,257 - 4,725,164
211,464 73,765 565,262 2,463,342
- - - 101,924
408,974 124,440 623,263 2,530,469
34,027 60,423 483,779 697,147
1,225,637 686,283 5,132,316 47,526,114
- - 67,897 5,554,059
- 427,257 633,298 3,247,098
- - - 7,899,628
- - - 5,382,249
- - 438,484 1,679,948
4,028,048 1,653,019 3,657,260 10,718,687
- - 1,180,000 5,340,000
86,189 - 669,497 1,747,303
4,114,237 2,080,276 6,646,436 41,568,972
(2,888,600) (1,393,993) (1,514,120) 5,957,142
- - 369,350 369,350
3,955,000 - - 3,955,000
298,951 - - 298,951
900,000 - 2,905,225 3,835,225
- - (290,225) (3,805,225)
5,153,951 - 2,984,350 4,653,301
2,265,351 (1,393,993) 1,470,230 10,610,443
6,662,843 2,846,151 12,965,052 54,182,470
$8,928,194 $1,452,158 $14,435,282 $64,792,913
The accompanying notes are an integral part of these financial statements.
41
CITY OF GOLDEN VALLEY, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND Statement 6
CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS TO THE STATEMENT
OF ACTIVITIES - GOVERNMENTAL ACTIVITIES
For The Year Ended December 31, 2023
Net change in fund balance - governmental funds (Statement 5) $10,610,443
Amounts reported for governmental activities in the statement of activities are different because:
Capital outlays are reported in governmental funds as expenditures. However, in the statement of
activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense:
Capital outlay 10,718,687
Capital outlay not capitalized (528,192)
Depreciation expense (7,409,196)
Various other transactions involving capital assets increase (decrease) net position on the statement
of activities but are not reported in governmental funds because they do not provide (or use) current
financial resources:
Gain (loss) on disposal of capital assets (314,645)
Capital assets contributed to business-type activities (3,928)
Revenues in the statement of activities that do not provide current financial resources are not reported
as revenues in governmental funds:
Change in unavailable property taxes 1,013,233
Change in unavailable special assessments 135,163
Change in unavailable state aid 5,658,912
The issuance of long-term debt provides current financial resources to governmental funds, while
repayment of the principal of long-term debt consumes current financial resources. Neither transaction,
however, has any effect on net position. Also, governmental funds report the effects of bond premiums
when the debt is first issued, whereas amounts are deferred and amortized over the life of the debt in
the statement of activities:
Bonds issued 5,340,000
Premiums on bonds issued (298,951)
Repayment of principal (3,955,000)
Amortization of bond premiums 203,161
Certain expenses reported in the statement of activities do not require the use of current financial
resources and therefore, are not reported as expenditures in governmental funds. Expenses reported
in the statement of activities include the effects of the change in the following expense accruals:
Change in accrued interest payable (25,168)
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:
Change in net position of internal service funds (1,766,472)
Add back internal service fund activity allocated to business-type activities 578,989
Change in net position - governmental activities (Statement 2)$19,957,036
The accompanying notes are an integral part of these financial statements.
42
CITY OF GOLDEN VALLEY, MINNESOTA
STATEMENT OF NET POSITION Statement 7
PROPRIETARY FUNDS
December 31, 2023
Governmental
Activities
Water and Storm Sewer Brookview Motor Vehicle Internal
Sewer Utility Utility Operating Operating Recycling Total Service Funds
Assets:
Current assets:
Cash and cash equivalents $13,724,035 $8,755,215 $2,859,412 $389,111 $1,535,861 $27,263,634 $2,245,082
Accounts receivable, net 2,290,194 134 224 47,351 - 2,337,903 4,439
Due from other funds 30,935 459,890 - - - 490,825 -
Inventory 11,648 - 21,977 - - 33,625 144,121
Prepaid expenses 208,158 160,367 10 - - 368,535 -
Special assessments receivable 386,534 - - - - 386,534 -
Total current assets 16,651,504 9,375,606 2,881,623 436,462 1,535,861 30,881,056 2,393,642
Noncurrent assets:
Advances to other funds 698,996 1,625,856 - - - 2,324,852 -
Net pension asset - fire relief - - - - - - 1,341,828
Capital assets:
Land - 136,868 857,044 - - 993,912 -
Land improvements 30,054 - 5,190,962 - - 5,221,016 -
Buildings and improvements 602,827 - 237,743 - - 840,570 -
Machinery and equipment 2,868,542 1,049,111 1,520,258 26,934 - 5,464,845 263,971
Distribution and collection systems 29,776,491 31,714,285 - - - 61,490,776 -
Construction in progress 8,381,747 11,402,952 - - - 19,784,699 -
Total capital assets 41,659,661 44,303,216 7,806,007 26,934 - 93,795,818 263,971
Less accumulated depreciation (16,852,848) (12,777,706) (4,482,003) (26,934) - (34,139,491) (251,540)
Capital assets, net 24,806,813 31,525,510 3,324,004 - - 59,656,327 12,431
Total noncurrent assets 25,505,809 33,151,366 3,324,004 - - 61,981,179 1,354,259
Total assets 42,157,313 42,526,972 6,205,627 436,462 1,535,861 92,862,235 3,747,901
Deferred outflows of resources:
Related to pensions - PERA - - - - - - 7,892,125
Related to pensions - fire relief - - - - - - 932,946
Related to OPEB - - - - - - 1,643,363
Total deferred outflows of resources - - - - - - 10,468,434
Liabilities:
Current liabilities:
Accounts payable 14,521 198,969 6,982 123 70,962 291,557 35,897
Due to other governmental units 299,514 8,967 53,647 - 8,968 371,096 108
Due to other funds 355,051 - 61,869 - - 416,920 -
Contracts payable 402,696 108,799 79,268 - - 590,763 -
Deposits payable 146,775 586,822 157,935 - - 891,532 18,873
Accrued interest payable - 22,374 - - - 22,374 -
Compensated absences payable - current - - - - - - 1,334,855
Other post-employment benefits - current - - - - - - 171,959
Bonds payable - current - 130,000 - - - 130,000 -
Total current liabilities 1,218,557 1,055,931 359,701 123 79,930 2,714,242 1,561,692
Noncurrent liabilities:
Advances from other funds 180,000 - 1,397,991 - - 1,577,991 -
Compensated absences payable - noncurrent - - - - - - 226,462
Other post-employment benefits - noncurrent - - - - - - 2,494,264
Bonds payable - noncurrent - 1,987,346 - - - 1,987,346 -
Net pension liability - PERA - - - - - - 10,981,155
Total noncurrent liabilities 180,000 1,987,346 1,397,991 - - 3,565,337 13,701,881
Total liabilities 1,398,557 3,043,277 1,757,692 123 79,930 6,279,579 15,263,573
Deferred inflows of resources:
Related to pensions - PERA - - - - - - 8,712,568
Related to pensions - fire relief - - - - - - 480,707
Related to OPEB - - - - - - 1,142,137
Total deferred inflows of resources - - - - - - 10,335,412
Net position:
Net investment in capital assets 24,404,117 29,299,365 3,244,736 - - 56,948,218 12,431
Restricted for pensions - fire relief - - - - - - 1,341,828
Unrestricted 16,354,639 10,184,330 1,203,199 436,339 1,455,931 29,634,438 (12,736,909)
Total net position $40,758,756 $39,483,695 $4,447,935 $436,339 $1,455,931 $86,582,656 ($11,382,650)
Net position reported above $86,582,656
Adjustment to reflect the consolidation of internal service fund activity related to enterprise funds (2,732,738)
Net position of business-type activities (Statement 1)$83,849,918
Business-Type Activities Enterprise Funds
The accompanying notes are an integral part of these financial statements.
43
CITY OF GOLDEN VALLEY, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND Statement 8
CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For The Year Ended December 31, 2023
Governmental
Activities
Water and Storm Sewer Brookview Motor Vehicle Internal
Sewer Utility Utility Operating Operating Recycling Total Service Funds
Operating revenue:
Charges for services $13,008,853 $2,886,823 $1,825,295 $448,001 $1,076,309 $19,245,281 $10,270,198
Sales and rentals 45,464 - 3,078,426 - - 3,123,890 -
Total operating revenues 13,054,317 2,886,823 4,903,721 448,001 1,076,309 22,369,171 10,270,198
Operating expenses:
Enterprise operations 9,176,384 1,352,898 3,868,960 500,962 1,090,053 15,989,257 -
Other services - - - - - - 12,631,211
Depreciation 1,077,138 1,112,577 113,624 - - 2,303,339 2,579
Total operating expenses 10,253,522 2,465,475 3,982,584 500,962 1,090,053 18,292,596 12,633,790
Operating income (loss) 2,800,795 421,348 921,137 (52,961) (13,744) 4,076,575 (2,363,592)
Nonoperating revenue (expenses):
Franchise taxes 1,319,569 - - - - 1,319,569 -
Intergovernmental revenue - - - 60,174 93,033 153,207 438,120
Investment income 710,890 563,733 106,821 8,186 60,374 1,450,004 139,413
Other income 84,355 72,815 2,340 - 11,548 171,058 19,587
Gain (loss) on disposal of capital assets 79,000 54,629 - - - 133,629 -
Interest expense (26,043) (52,350) (60,773) - - (139,166) -
Total nonoperating revenues (expenses) 2,167,771 638,827 48,388 68,360 164,955 3,088,301 597,120
Income (loss) before contributions and transfers 4,968,566 1,060,175 969,525 15,399 151,211 7,164,876 (1,766,472)
Capital contributions and transfers:
Intergovernmental revenue - 1,027,160 - - - 1,027,160 -
Capital contributions from gov't activities - - 3,928 - - 3,928 -
Transfers out - - - (30,000) - (30,000) -
Total capital contributions and transfers - 1,027,160 3,928 (30,000) - 1,001,088 -
Change in net position 4,968,566 2,087,335 973,453 (14,601) 151,211 8,165,964 (1,766,472)
Net position - January 1 35,790,190 37,396,360 3,474,482 450,940 1,304,720 78,416,692 (9,616,178)
Net position - December 31 $40,758,756 $39,483,695 $4,447,935 $436,339 $1,455,931 $86,582,656 ($11,382,650)
Change in net position reported above $8,165,964
Adjustment to reflect the consolidation of internal service fund activity related to enterprise funds (578,989)
Change in net position of business-type activities (Statement 2)$7,586,975
Business-Type Activities Enterprise Funds
The accompanying notes are an integral part of these financial statements.
44
CITY OF GOLDEN VALLEY, MINNESOTA
STATEMENT OF CASH FLOWS Statement 9
PROPRIETARY FUNDS
For The Year Ended December 31, 2023
Governmental
Activities
Water and Storm Sewer Brookview Motor Vehicle Internal
Sewer Utility Utility Operating Operating Recycling Total Service Funds
Cash flows from operating activities:
Receipts from customers and users $13,170,711 $2,886,689 $4,923,721 $493,897 $1,076,309 $22,551,327 $6,731,471
Receipts from interfund services provided - - - - - - 3,560,349
Payments to suppliers/service providers (7,528,070) (451,148) (1,467,532) (51,658) (1,034,878) (10,533,286) (8,099,167)
Payments to employees (1,404,783) (560,298) (2,312,356) (436,006) - (4,713,443) (3,367,613)
Payments for interfund services (300,000) (250,000) (85,000) (30,000) (75,000) (740,000) -
Miscellaneous revenue 84,355 72,815 2,340 - 11,548 171,058 -
Net cash flows from operating activities 4,022,213 1,698,058 1,061,173 (23,767) (22,021) 6,735,656 (1,174,960)
Cash flows from noncapital financing activities:
Franchise taxes 1,319,569 - - - - 1,319,569 -
Intergovernmental revenue - - - 60,174 93,033 153,207 438,120
Transfers out - - - (30,000) - (30,000) -
Net cash flows from noncapital financing activities 1,319,569 - - 30,174 93,033 1,442,776 438,120
Cash flows from capital and related financing activities:
Acquisition of capital assets (7,295,591) (6,487,380) (165,638) - - (13,948,609) -
Proceeds from sale of capital assets - 46,583 - - - 46,583 -
Repayment of advances to other funds 25,162 414,072 - - - 439,234 -
Repayment of advances from other funds (352,780) - (50,326) - - (403,106) -
Intergovernmental revenue - 1,027,160 - - - 1,027,160 -
Principal paid on debt - (125,000) - - - (125,000) -
Interest paid on debt (26,043) (55,451) (60,773) - - (142,267) -
Net cash flows from capital and related financing activities (7,649,252) (5,180,016) (276,737) - - (13,106,005) -
Cash flows from investing activities:
Interest received on investments 710,890 563,733 106,821 8,186 60,374 1,450,004 139,413
Net increase (decrease) in cash and cash equivalents (1,596,580) (2,918,225) 891,257 14,593 131,386 (3,477,569) (597,427)
Cash and cash equivalents - January 1 15,320,615 11,673,440 1,968,155 374,518 1,404,475 30,741,203 2,842,509
Cash and cash equivalents - December 31 $13,724,035 $8,755,215 $2,859,412 $389,111 $1,535,861 $27,263,634 $2,245,082
Reconciliation of operating income (loss) to net cash flows
from operating activities:
Operating income (loss) $2,800,795 $421,348 $921,137 ($52,961) ($13,744) $4,076,575 ($2,363,592)
Adjustments to reconcile operating income (loss) to net
cash net cash flows from operating activities:
Depreciation 1,077,138 1,112,577 113,624 - - 2,303,339 2,579
Miscellaneous revenue 84,355 72,815 2,340 - 11,548 171,058 19,587
Changes in assets and liabilities:
Accounts receivable 132,851 (134) 20,000 45,896 - 198,613 2,035
Inventory (1,292) - (2,357) - - (3,649) (30,893)
Prepaid expenses 6,627 1,701 1,615 440 - 10,383 -
Special assessments receivable (16,457) - - - - (16,457) -
Net pension asset - fire relief - - - - - - 1,786,202
Deferred outflows of resources - - - - - - 3,164,953
Accounts payable (485,294) 197,161 (235,554)(42) (21,580) (545,309) 23,940
Due to other governmental units 39,187 1,754 5,333 (17,100) 1,755 30,929 (21)
Contracts payable 343,853 62,738 79,268 - - 485,859 -
Deposits payable 40,450 (171,902) 155,767 - - 24,315 (3,005)
Compensated absences payable - - - - - - (48,165)
Other post-employment benefits - - - - - - (379,216)
Net pension liability - PERA - - - - - - (10,219,307)
Deferred inflows of resources - - - - - - 6,869,943
Total adjustments 1,221,418 1,276,710 140,036 29,194 (8,277) 2,659,081 1,188,632
Net cash flows from operating activities $4,022,213 $1,698,058 $1,061,173 ($23,767) ($22,021) $6,735,656 ($1,174,960)
Noncash investing, capital and financing activities:
Amortization of bond premiums $ - $2,057 $ - $ - $ - $2,057 $ -
Noncash gain on disposal of capital assets due to trade in $79,000 $8,046 $ - $ - $ - $87,046 $ -
Contribution of capital assets (net) from gov't activities $ - $ - $3,928 $ - $ - $3,928 $ -
Business-Type Activities Enterprise Funds
The accompanying notes are an integral part of these financial statements.
45
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46
CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
Note 1 SUMMARY OF 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. FINANCIAL 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:
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 within 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.
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.
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
City. During the 2023 fiscal year, the City paid LOGIS $1,063,923 for services provided.
47
CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
C. GOVERNMENT-WIDE FINANCIAL STATEMENTS
The government-wide financial statements (the statement of net position and the statement of activities)
display information about the reporting government as a whole. These statements include all 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 FUNDS
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting.
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.
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CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
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 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.
Capital Improvement Capital Project 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.
The City reports the following major proprietary funds:
Water and Sewer 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.
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CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
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.
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.
During 2023, expenditures of the following General Fund divisions exceeded the division’s final budget:
Final
Actual Budget Overage
Administrative services $2,809,502 $2,700,435 $109,067
Public works 5,382,249 5,217,140 165,109
F.CASH AND INVESTMENTS
Cash and investment balances from all funds are pooled and invested to the extent available in authorized
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 investments with an
original maturity from the time of purchase of three months or less to be cash equivalents. All of the cash
and investments allocated to proprietary fund types have original maturities of 90 days or less. Therefore,
the entire balance in such fund types is considered cash equivalents.
The City generally reports investments at fair value, except for certain investment pools which are valued at
amortized cost.
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.
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CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
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.
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” (long-term portion). 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.”
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
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CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
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 AND 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 arise only under a modified accrual basis of
accounting and, therefore, are only reported in the governmental fund financial statements. The
governmental funds report unavailable revenue from three sources: property taxes, special assessments, and
state aid. 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.
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 General Fund and enterprise funds.
52
CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
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 city 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.
S. USE OF ESTIMATES
The preparation of financial statements in accordance with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the amounts
reported in the financial statements during the reporting period. Actual results could differ from those
estimates.
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.
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CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
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 “net
investment in capital assets” or “restricted.”
The City applies restricted resources first when an expense is incurred for which both restricted and
unrestricted resources are available.
Note 2 CASH AND INVESTMENTS
A. DEPOSITS
In accordance with Minnesota Statutes, the City maintains its deposits at depository banks authorized by
the City Council. All such banks are members of the Federal Reserve System.
Minnesota Statutes require that all City deposits be protected by insurance, surety bonds or collateral. The
fair value of collateral pledged must equal 110% of deposits not covered by insurance or bonds. Securities
pledged as collateral are required to be held in safekeeping by the City or in a financial institution other
than that furnishing the collateral. Minnesota Statute 118A.03 identifies allowable forms of collateral.
Custodial Credit Risk – Deposits – the risk that in the event of a bank failure, the City’s deposits may not
be returned to it. The City has no additional deposit policies addressing custodial credit risk.
At December 31, 2023, the bank balance of the City’s deposits with financial institutions was $5,124,463
and the carrying amount was $4,031,700. All deposits were covered by federal depository insurance or by
collateral pledged and held in the City’s name.
B. INVESTMENTS
Subject to rating, yield, maturity and issuer requirements as prescribed by statute, Minnesota Statutes
118A.04 and 118A.05 authorize the City to invest in United States securities, state and local securities,
commercial paper, time deposits, temporary general obligation bonds, repurchase agreements, Minnesota
joint powers investment trusts and guaranteed investment contracts.
54
CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
As of the City had the following investments and maturities:
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair
value of the asset. The hierarchy has three levels. Level 1 investments are valued using inputs that are
based on quoted prices in active markets for identical assets. Level 2 investments are valued using inputs
that are based on quoted prices for similar assets or inputs that are observable, either directly or indirectly.
Level 3 investments are valued using inputs that are unobservable.
The City has the following recurring fair value measurements as of :
Fair Value Measurement Using
Investment Type 12/31/2023 Level 1 Level 2 Level 3
Investments at fair value:
U.S. agency securities 44,432,306 $ - $44,432,306 $ -
State and local bonds 23,895,181 - 23,895,181 -
$ - $68,327,487 $ -
Investments not categorized:
U.S. Government Money Market Fund 54
4M Fund 8,784,007
4M Plus Fund
17,095,165
Total investments $94,206,713
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
Fair Less
Investment Type Rating Value Than 1 1-5
U.S. agency securities:
FFCB AA+ $9,750,359 $7,016,210 $2,734,149
FHLB AA+ 20,952,468 - 20,952,468
FHLMC AA+ 9,750,079 3,614,363 6,135,716
FNMA AA+ 3,979,400 - 3,979,400
State and local bonds *23,895,181 8,065,927 15,829,254
External investment pools:
U.S. Government Money Market Fund NR 54 54 -
4M Fund NR 8,784,007 8,784,007 -
4M Plus Fund NR 17,095,165 17,095,165 -
Total $94,206,713 $44,575,726 $49,630,987
* $8,815,023 (AAA), $3,911,502 (AA+),Total investments $94,206,713
$5,264,304 (AA), $4,652,240 (AA-),Deposits 4,031,700
$478,235 (A+), $773,877 (A-)Cash on hand 4,395
Total cash and investments $98,242,808
Investment Maturities (in Years)
55
CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
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.
C. INVESTMENT RISKS
Interest rate risk – 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.
Credit risk – the risk that an issuer or other counterparty to an investment will not fulfill its obligations.
Minnesota Statutes 118A.04 and 118A.05 limits investments in the top two ratings issued by nationally
recognized statistical rating organizations. The City’s investment policy does not specifically address
credit risk.
Custodial credit risk – investments – 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 of credit risk – the risk of loss 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. As of December 31, 2023, the City had 5 percent or more of its
portfolio invested in the following issuers: Federal Home Loan Bank (22.2%), Federal Home Loan
Mortgage Corp (10.3%) and Federal Farm Credit Bank (10.3%).
Note 3 RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2023 are as follows:
Property Special
Taxes Assessments
Receivable Receivable Total
Major funds:
General Fund $595,000 $ - $595,000
Street Reconstruction Debt Service
Fund - 2,391,000 2,391,000
State Aid Construction Fund - 170,000 170,000
Water and Sewer Utility Fund - 122,000 122,000
Nonmajor funds - 137,000 137,000
Total $595,000 $2,820,000 $3,415,000
56
CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
Note 4 INTERFUND BALANCES AND TRANSFERS
A. INTERFUND BALANCES
The City had the following interfund balances at year-end:
Interfund Interfund
Loan
Receivable
Loan
Payable
Due to/ Due from other funds:
Major Funds:
Capital Improvement $181,560 $ -
Water and Sewer Utility 30,935 355,051
Brookview Operating - 61,869
Storm Sewer Utility 459,890 -
Nonmajor:
Winnetka / Medicine Lake Tax Increment - 255,465
Total 672,385 672,385
Advances to/from other funds:
Major Funds:
Capital Improvement 180,000 -
Water and Sewer Utility 698,996 180,000
Brookview Operating - 1,397,991
Storm Sewer Utility 1,625,856 -
Nonmajor:
Winnetka / Medicine Lake Tax Increment - 926,861
Total 2,504,852 2,504,852
Total Interfund balances $3,177,237 $3,177,237
B. DESCRIPTIONS OF ADVANCES
In 2014, the Storm Sewer Utility Enterprise Fund advanced $1,720,000 to the Water and Sewer 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%. Interest for 2023 was $8,944.
In 2015, the Capital Improvement Capital Project Fund advanced $1,800,000 to the Water and Sewer
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%. Interest for 2023 was $14,040.
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%. Interest for 2023 was $33,400.
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CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
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%. Interest for 2023 was $19,336.
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%. Interest for 2023 was $61,112.
C. INTERFUND TRANSFERS
Interfund transfers for the year ended December 31, 2023 were as follows:
Transfers In Transfers Out
Major Funds:
General $30,000 $3,515,000
Street Reconstruction Capital Project 900,000 -
Motor Vehicle Operating - 30,000
Nonmajor 2,905,225 290,225
Total $3,835,225 $3,835,225
A description of these transfers is as follows:
$3,515,000 was transferred from the General Fund to various capital project funds to finance
current and future capital purchases for buildings, parks, equipment and HRA related projects.
$30,000 was transferred from the Motor Vehicle Operating fund to the General Fund as support
for the General Fund budget.
$290,225 was transferred from the Hwy 55 Tax Increment fund to the Hwy 55 West Bonds fund
to finance debt service payments.
58
CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
Note 5 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2023 was as follows:
Beginning Ending
Balance Increases Decreases Transfers Balance
Governmental activities:
Capital assets, not being depreciated:
Land $3,527,685 $ - $ - $ - $3,527,685
Construction in progress 8,208,470 7,298,896 23,664 - 15,483,702
Total capital assets, not being depreciated 11,736,155 7,298,896 23,664 - 19,011,387
Capital assets, being depreciated:
Land improvements 8,203,678 466,523 - - 8,670,201
Buildings and improvements 29,316,336 609,128 - - 29,925,464
Machinery and equipment 17,706,469 1,839,612 838,343 (95,641) 18,612,097
Infrastructure 146,403,581 - 167,608 - 146,235,973
Total capital assets being depreciated 201,630,064 2,915,263 1,005,951 (95,641) 203,443,735
Less accumulated depreciation for:
Land improvements 4,982,770 340,770 - - 5,323,540
Buildings and improvements 12,865,467 595,277 - - 13,460,744
Machinery and equipment 9,870,749 1,203,240 691,306 (91,713) 10,290,970
Infrastructure 93,521,732 5,272,488 - - 98,794,220
Total accumulated depreciation 121,240,718 7,411,775 691,306 (91,713) 127,869,474
Total capital assets being depreciated - net 80,389,346 (4,496,512) 314,645 (3,928) 75,574,261
Governmental activities capital assets - net $92,125,501 $2,802,384 $338,309 ($3,928) $94,585,648
Business-type activities:
Capital assets, not being depreciated:
Land $993,912 $ - $ - $ - $993,912
Construction in progress 7,874,495 13,760,962 1,850,758 - 19,784,699
Total capital assets, not being depreciated 8,868,407 13,760,962 1,850,758 - 20,778,611
Capital assets, being depreciated:
Land improvements 3,370,258 1,850,758 - - 5,221,016
Buildings and improvements 808,625 31,945 - - 840,570
Machinery and equipment 5,336,285 244,826 211,907 95,641 5,464,845
Infrastructure 61,490,776 - - - 61,490,776
Total capital assets, being depreciated 71,005,944 2,127,529 211,907 95,641 73,017,207
Less accumulated depreciation for:
Land improvements 2,872,607 52,692 - - 2,925,299
Buildings and improvements 626,387 22,748 - - 649,135
Machinery and equipment 3,506,438 382,495 209,829 91,713 3,770,817
Infrastructure 24,948,836 1,845,404 - - 26,794,240
Total accumulated depreciation 31,954,268 2,303,339 209,829 91,713 34,139,491
Total capital assets being depreciated - net 39,051,676 (175,810) 2,078 3,928 38,877,716
Business-type activities capital assets - net $47,920,083 $13,585,152 $1,852,836 $3,928 $59,656,327
59
CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
Depreciation expense was charged to the following functions:
Governmental activities:
General government $317,839
Public safety 425,247
Community development 447,749
Public works 5,685,646
Parks and recreation 532,715
Capital assets held by the City's internal service funds -
charged to the various functions on usage of the assets 2,579
Total depreciation expense - governmental activities $7,411,775
Business-type activities:
Utility (water and sewer) $1,077,138
Storm sewer utility 113,624
Brookview golf course operating 1,112,577
Total depreciation expense - business-type activities $2,303,339
60
CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
Note 6 LONG-TERM LIABILITIES
A. LONG-TERM LIABILITIES
Interest Issue Maturity Original Payable
Rates Date Date Issue 12/31/2023
Governmental Activities:
General obligation improvement bonds:
Improvement Bonds of 2012A 2.00-3.00% 5/15/2012 2/1/2032 $1,575,000 $450,000
Improvement Refunding Bonds of 2012C 2.00-2.25% 5/15/2012 2/1/2025 5,960,000 1,985,000
Improvement Bonds of 2013A 1.25-3.00% 5/21/2013 2/1/2033 1,735,000 785,000
Improvement Refunding Bonds of 2013B 2.00% 5/21/2013 2/1/2026 7,025,000 2,025,000
Improvement Bonds 2014A 1.00-3.40% 6/19/2014 2/1/2035 2,335,000 1,675,000
Improvement Refunding Bonds of 2014C 2.00-4.00% 6/19/2014 2/1/2027 3,950,000 2,680,000
Improvement Bonds of 2015A 3.00-3.50% 7/15/2015 2/1/2036 1,870,000 595,000
Improvement Refunding Bonds of 2015C 2.00-2.50% 7/15/2015 2/1/2028 6,600,000 5,325,000
Improvement Bonds of 2016A 2.00-3.00% 7/7/2016 2/1/2037 1,290,000 820,000
Improvement Bonds of 2017A 3.00-3.25% 7/20/2017 2/1/2038 2,580,000 1,870,000
Improvement Refunding Bonds of 2017A 3.00% 7/20/2017 2/1/2029 4,100,000 2,880,000
Improvement Refunding Bonds of 2017B 2.00-4.00% 7/20/2017 2/1/2028 765,000 370,000
Improvement Bonds of 2018A 3.00-3.375% 6/14/2018 2/1/2038 2,950,000 2,235,000
Improvement Bonds of 2019A 3.00-5.00% 7/18/2019 2/1/2039 1,770,000 1,610,000
Improvement Bonds of 2021A 1.50-3.00% 6/3/2021 2/1/2041 3,420,000 3,235,000
Improvement Bonds of 2022A 3.00-5.00% 5/5/2022 2/1/2042 3,895,000 3,735,000
Improvement Bonds of 2023A 4.00-5.00% 6/15/2023 2/1/2044 3,955,000 3,955,000
Total general obligation improvement bonds 55,775,000 36,230,000
General obligation street reconstruction bonds:
Street Reconstruction Bonds of 2016C 2.13-4.00% 7/7/2016 2/1/2037 5,630,000 4,230,000
General obligation tax increment bonds:
Tax Increment Bonds of 2017B 2.00-4.00% 7/20/2017 2/1/2028 1,170,000 665,000
General obligation state aid street bonds:
State Aid Street Bonds of 2007A 4.00-4.125% 3/15/2007 4/1/2027 2,560,000 680,000
Lease revenue bonds:
2016C Lease Revenue Bonds (Brookview
Community Center)2.00-4.00% 10/19/2016 2/1/2037 17,410,000 13,480,000
Unamortized premiums 3,408,578 1,945,637
Compensated absences payable N/A 1,561,317
Total governmental activities $85,953,578 $58,791,954
Business-Type Activities:
General Obligation Revenue Bonds:
Utility Revenue Bonds of 2016D 2.13-3.00% 10/19/2016 2/1/2037 $2,580,000 $2,090,000
Unamortized bond premiums 41,745 27,346
Total business-type activities $2,621,745 $2,117,346
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CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
B. DESCRIPTION OF LONG-TERM LIABILITIES
G.O. Improvement 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.
G.O. 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.
G.O. Tax Increment Bonds – The City has established tax increment financing (TIF) districts and 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.
G.O. 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.
G.O. 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.
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CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
C. DEBT SERVICE REQUIREMENTS TO MATURITY
Minimum annual payments to retire outstanding bonds are as follows:
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 Utility charges 100% 2016 -2037 $2,509,238 $179,950 $2,886,823
Series 2016D improvements
Year Ending
December 31 Principal Interest Principal Interest Principal Interest
2024 $4,320,000 $1,041,363 $250,000 $118,712 $125,000 $16,362
2025 4,585,000 902,063 260,000 111,063 130,000 12,513
2026 4,800,000 777,813 265,000 103,187 135,000 8,394
2027 3,890,000 654,107 275,000 96,462 135,000 5,187
2028 3,200,000 543,664 280,000 90,738 140,000 1,750
2029-2033 7,410,000 1,785,365 1,515,000 327,506 - -
2034-2038 5,300,000 809,610 1,385,000 84,825 - -
2039-2043 2,500,000 213,755 - - - -
2044-2048 225,000 4,500 - - - -
Total $36,230,000 $6,732,240 $4,230,000 $932,493 $665,000 $44,206
Year Ending
December 31 Principal Interest Principal Interest Principal Interest
2024 $160,000 $24,750 $765,000 $434,900 $130,000 $52,400
2025 165,000 18,047 795,000 407,675 130,000 49,800
2026 175,000 11,034 820,000 383,450 135,000 47,150
2027 180,000 3,713 845,000 358,475 135,000 43,775
2028 - - 870,000 332,750 140,000 39,650
2029-2033 - - 4,865,000 1,132,250 750,000 145,713
2034-2038 - - 4,520,000 276,150 670,000 40,750
2039-2043 - - - - - -
2044-2048 - - - - - -
Total $680,000 $57,544 $13,480,000 $3,325,650 $2,090,000 $419,238
Business-Type Activities
General Obligation HRA Lease
Utility Revenue Bonds
General Obligation Tax
Increment Bonds
Governmental Activities
General Obligation
General Obligation
Improvement Bonds
General Obligation Street
Reconstruction Bonds
Governmental Activities Governmental Activities
Governmental Activities Governmental Activities
State Aid Street Bonds Revenue Bonds
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CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
E. CHANGES IN LONG-TERM DEBT
Long-term debt activity for the year ended December 31, 2023 is as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental Activities:
G.O. improvement bonds $36,355,000 $3,955,000 $4,080,000 $36,230,000 $4,320,000
G.O. street reconstruction bonds 4,475,000 - 245,000 4,230,000 250,000
G.O. tax increment bonds 790,000 - 125,000 665,000 125,000
G.O. state aid street bonds 835,000 - 155,000 680,000 160,000
HRA lease revenue bonds 14,215,000 - 735,000 13,480,000 765,000
Unamortized premiums 1,849,847 298,951 203,161 1,945,637 -
Compensated absences 1,609,482 972,950 1,021,115 1,561,317 1,334,855
Total governmental activities $60,129,329 $5,226,901 $6,564,276 $58,791,954 $6,954,855
Business-Type Activities:
G.O. utility revenue bonds $2,215,000 $ - $125,000 $2,090,000 $130,000
Unamortized premiums 29,403 - 2,057 27,346 -
Total business-type activities $2,244,403 $ - $127,057 $2,117,346 $130,000
64
CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
Note 7 COMPONENTS OF FUND BALANCE
At December 31, 2023, a summary of the governmental fund balance classifications is as follows:
American Street Street Other
General Rescue Reconstruction State Aid Reconstruction Capital Governmental
Fund Plan Act Debt Service Construction Capital Project Improvement Funds Total
Nonspendable:
Prepaid items $17,127 $ - $ - $ - $ - $ - $ - $17,127
Restricted for:
Debt service - - 10,893,147 - - - 1,898,854 12,792,001
Redevelopment - - - - - - 2,184,054 2,184,054
Street improvements - - - 6,215,091 5,761,993 - 1,078,652 13,055,736
Brookview Center - - - - - - 695,709 695,709
Public safety aid 977,343 - - - - - - 977,343
Cemetery maintenance - - - - - - 101,750 101,750
DWI enforcement - - - - - - 30,633 30,633
VOTF - - - - - - 153,635 153,635
Youth recreation - - - - - - 27,868 27,868
American Rescue
Plan Act - 119,933 - - - - - 119,933
Total restricted 977,343 119,933 10,893,147 6,215,091 5,761,993 0 6,171,155 30,138,662
Committed for:
Human service needs - - - - - - 162,414 162,414
Assigned for:
Street improvements - - - - 3,166,201 - 117,915 3,284,116
Equipment replacement - - - - - - 4,072,803 4,072,803
Park improvements - - - - - - 870,523 870,523
Capital improvements - - - - - 1,452,158 2,900,428 4,352,586
Cable improvements - - - - - - 157,121 157,121
Remote fire station 612,910 - - - - - - 612,910
Self-insurance 2,000,000 - - - - - - 2,000,000
Total assigned 2,612,910 - - - 3,166,201 1,452,158 8,118,790 15,350,059
Unassigned 19,141,728 - - - - - (17,077) 19,124,651
Total fund balance $22,749,108 $119,933 $10,893,147 $6,215,091 $8,928,194 $1,452,158 $14,435,282 $64,792,913
The City’s fund balance policy includes a goal of maintaining an unassigned fund balance in the General Fund for
working capital of 60% of the subsequent year’s adopted expenditures.
Note 8 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
65
CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
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 $171,959.
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 $2,666,223 as of year-end was measured as of December 31, 2022 and
was determined by an actuarial valuation (census data) as of December 31, 2021.
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 4.05%
20-year municipal bond yield 4.05%
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 4.05%, which was set by considering published rate information for 20-year high quality, tax-
exempt, general obligation municipal bonds as of the measurement date.
66
CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
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 2.06% to 4.05%.
G. CHANGES IN THE TOTAL OPEB LIABILITY
Details of the changes in the Total OPEB liability are as follows:
Changes for the year:
Service cost $174,337
Interest cost 64,505
Changes of benefit terms -
Differences between expected
and actual experience 3,547
Changes in assumptions (444,717)
Benefit payments (176,888)
Net changes (379,216)
Balance - beginning of year 3,045,439
Balance - end of year $2,666,223
H. TOTAL OPEB LIABILITY SENSITIVITY TO DISCOUNT AND HEALTHCARE COST TREND
RATE CHANGES
The following presents the total OPEB liability, 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:
Current
1% Decrease Discount Rate 1% Increase
Total OPEB liability $2,879,953 $2,666,223 $2,471,271
The following presents the total OPEB liability, 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:
Current
Healthcare
1% Decrease
Cost Trend
Rates 1% Increase
Total OPEB liability $2,446,673 $2,666,223 $2,921,096
67
CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
I. OPEB EXPENSE AND RELATED DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED
INFLOWS OF RESOURCES
The City recognized OPEB expense of $72,952 in 2023. As of year-end, the City reported deferred
outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred
Outflows
Deferred
Inflows
of Resources of Resources
Difference between expected and $1,291,555 $357,718
actual experience
Changes in actuarial assumptions 179,849 784,419
Contributions paid subsequent to the
measurement date 171,959 -
Total $1,643,363 $1,142,137
Deferred outflows of resources reported $171,959 related to OPEB resulting from City contributions
subsequent to the measurement date that will be recognized as a reduction of the net OPEB liability during
the year ending December 31, 2024. Other amounts reported as deferred outflows and inflows of resources
related to OPEB will be recognized in OPEB expense as follows:
Year Ended OPEB
December 31, Expense
2024 $14,269
2025 14,269
2026 14,170
2027 10,140
2028 18,705
Thereafter 257,714
$329,267
Note 9 DEFINED BENEFIT PENSION PLANS – PERA
A. PLAN DESCRIPTION
The City participates in the following cost-sharing multiple-employer defined benefit pension plans
administered by the Public Employees Retirement Association of Minnesota (PERA). PERA’s defined
benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters
353 and 356. PERA’s defined benefit pension plans are tax qualified plans under Section 401(a) of the
Internal Revenue Code.
1. General Employees Retirement Fund (GERF)
All full-time (with the exception of employees covered by PEPFF) and certain part-time employees of
the City are covered by the General Employees Retirement Fund (GERF). GERF members belong to
the Coordinated Plan. Coordinated Plan members are covered by Social Security.
68
CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
2. Public Employees Police and Fire Fund (PEPFF)
The PEPFF, originally established for police officers and firefighters not covered by a local relief
association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the
PEPFF also covers police officers and firefighters belonging to local relief associations that elected to
merge with and transfer assets and administration to PERA.
B. BENEFITS PROVIDED
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute
and can only be modified by the state legislature. Vested, terminated employees who are entitled to
benefits but are not receiving them yet, are bound by the provisions in effect at the time they last terminated
their public service.
1. GERF Benefits
Benefits are based on a member’s highest average salary for any five successive years of allowable
service, age, and years of credit at termination of service. Two methods are used to compute benefits
for PERA’s Coordinated members. Members hired prior to July 1, 1989 receive the higher of Method
1 or Method 2 formulas. Only Method 2 is used for members hired after June 30, 1989. Under
Method 1, the accrual rate for Coordinated members is 1.2% for each of the first ten years of service
and 1.7% for each additional year. Under Method 2, the accrual rate for Coordinated Plan members is
1.7% for all years of service. For members hired prior to July 1, 1989, a full annuity is available when
age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July
1, 1989, normal retirement age is the age for unreduced Social Security benefits capped at 66.
Benefit increases are provided to benefit recipients each January. The postretirement increase is equal
to 50% of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of
at least 1% and a maximum of 1.5%. Recipients that have been receiving the annuity or benefit for at
least a full year as of the June 30 before the effective date of the increase will receive the full increase.
Recipients receiving the annuity or benefit for at least one month but less than a full year as of the June
30 before the effective date of the increase will receive a reduced prorated increase. In 2023,
legislation repealed the statute delaying increases for members retiring before full retirement age.
2. PEPFF Benefits
Benefits for PEPFF members first hired after June 30, 2010 but before July 1, 2014 vest on a prorated
basis from 50% after five years up to 100% after ten years of credited service. Benefits for PEPFF
members first hired after June 30, 2014 vest on a prorated basis from 50% after ten years up to 100%
after twenty years of credited service. The annuity accrual rate is 3% of average salary for each year of
service. For PEPFF members who were first hired prior to July 1, 1989, a full annuity is available
when age plus years of service equal at least 90.
Benefit increases are provided to benefit recipients each January. The postretirement increase is fixed
at 1%. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June
30 before the effective date of the increase will receive the full increase. Recipients receiving the
annuity or benefit for at least 25 months but less than 36 months as of the June 30 before the effective
date of the increase will receive a reduced prorated increase.
69
CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
C. CONTRIBUTIONS
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates
can only be modified by the state legislature.
1. GERF Contributions
Coordinated Plan members were required to contribute 6.50% of their annual covered salary in fiscal
year 2023 and the City was required to contribute 7.50% for Coordinated Plan members. The City’s
contributions to the GERF for the year ended December 31, 2023 were $806,132. The City’s
contributions were equal to the required contributions as set by state statute.
2. PEPFF Contributions
Police and Fire Plan members were required to contribute 11.80% of their annual covered salary in
fiscal year 2023 and the City was required to contribute 17.70% for Police and Fire Plan members.
The City’s contributions to the PEPFF for the year ended December 31, 2023 were $505,929. The
City’s contributions were equal to the required contributions as set by state statute.
D. PENSION COSTS
1. GERF Pension Costs
At December 31, 2023, the City reported a liability of $7,207,944 for its proportionate share of
GERF’s net pension liability. The City’s net pension liability reflected a reduction due to the State of
Minnesota’s contribution of $16 million. The State of Minnesota is considered a non-employer
contributing entity and the state’s contribution meets the definition of a special funding situation. The
State of Minnesota’s proportionate share of the net pension liability associated with the City totaled
$198,768.
The net pension liability was measured as of June 30, 2023, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s
proportionate share of the net pension liability was based on the City’s contributions received by
PERA during the measurement period for employer payroll paid dates from July 1, 2022 through June
30, 2023, relative to the total employer contributions received from all of PERA’s participating
employers. The City’s proportionate share was 0.1289% at the end of the measurement period and
0.1262% for the beginning of the period.
City’s proportionate share of the net pension liability $7,207,944
State of Minnesota’s proportionate share of the net
pension liability associated with the City 198,768
Total $7,406,712
For the year ended December 31, 2023, the City recognized pension expense of $1,315,755 for its
proportionate share of the GERF’s pension expense. In addition, the City recognized an additional
$893 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s
contribution of $16 million to the GERF.
70
CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
At December 31, 2023, the City reported its proportionate share of the GERF’s deferred outflows of
resources and deferred inflows of resources related to pensions from the following sources:
Deferred
Outflows
Deferred
Inflows
of Resources of Resources
Differences between expected and
actual economic experience $236,712 $50,174
Changes in actuarial assumptions 1,178,598 1,975,637
Difference between projected and
actual investment earnings - 279,646
Changes in proportion 397,034 -
Contributions paid to PERA
subsequent to the measurement date 416,351 -
Total $2,228,695 $2,305,457
The $416,351 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended December 31, 2024. Other amounts reported as deferred outflows and
inflows of resources related to pensions will be recognized in pension expense as follows:
Year
Ending Pension
December
31, Expense
2024 $378,836
2025 (917,182)
2026 201,598
2027 (156,365)
2028 -
Thereafter -
2. PEPFF Pension Costs
At December 31, 2023, the City reported a liability of $3,773,211 for its proportionate share of the
PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2023 and the total
pension liability used to calculate the net pension liability was determined by an actuarial valuation as
of that date. The City’s proportionate share of the net pension liability was based on the City’s
contributions received by PERA during the measurement period for employer payroll paid dates from
July 1, 2022 through June 30, 2023, relative to the total employer contributions received from all of
PERA’s participating employers. The City’s proportionate share was 0.2185% at the end of the
measurement period and 0.2575% for the beginning of the period.
The State of Minnesota contributed $18 million to PEPFF during the plan fiscal year ended June 30,
2023. The contribution consisted of $9 million in direct state aid that does meets the definition of a
special funding situation and $9 million in supplemental state aid that does not meet the definition of a
special funding situation. The $9 million direct state aid was paid on October 1, 2022. Thereafter, by
October 1 of each year, the state will pay $9 million to the PEPFF until full funding is reached or July
1, 2048, whichever is earlier. The $9 million in supplemental state aid will continue until the fund is
90% funded, or until the State Patrol Plan (administered by the Minnesota State Retirement System) is
90%.
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CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
funded, whichever occurs later. The State of Minnesota’s proportionate share of the net pension
liability associated with the City totaled $151,987.
City’s proportionate share of the net pension liability $3,773,211
State of Minnesota’s proportionate share of the net
pension liability associated with the City 151,987
Total $3,925,198
The State of Minnesota is included as a non-employer contributing entity in the PEPFF Schedule of
Employer Allocations and Schedule of Pension Amounts by Employer, Current Reporting Period Only
(pension allocation schedules) for the $9 million in direct state aid. PEPFF employers need to
recognize their proportionate share of the State of Minnesota’s pension expense (and grant revenue)
under GASB 68 special funding situation accounting and financial reporting requirements. For the
year ended December 31, 2023, the City recognized pension expense of $974,720 for its proportionate
share of the Police and Fire Plan’s pension expense. The City recognized an additional ($9,154) as
pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s
contribution of $9 million to the PEPFF.
The State of Minnesota is not included as a non-employer contributing City in the Police and Fire
Pension Plan pension allocation schedules for the $9 million in supplemental state aid. The City
recognized $19,665 for the year ended December 31, 2023 as revenue and an offsetting reduction of
net pension liability for its proportionate share of the State of Minnesota’s on-behalf contributions to
the Police and Fire Fund.
At December 31, 2023, the City reported its proportionate share of the PEPFF’s deferred outflows of
resources and deferred inflows of resources related to pensions from the following sources:
Deferred
Outflows
Deferred
Inflows
of Resources of Resources
Differences between expected and
actual economic experience $1,027,897 $ -
Changes in actuarial assumptions 4,312,138 5,298,809
Difference between projected and
actual investment earnings - 108,585
Changes in proportion 66,977 999,717
Contributions paid to PERA
subsequent to the measurement date 256,418 -
Total $5,663,430 $6,407,111
72
CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
The $256,418 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended December 31, 2024. Other amounts reported as deferred outflows and
inflows of resources related to pensions will be recognized in pension expense as follows:
The net pension liability will be liquidated by the Payroll Benefits internal service fund.
E.ACTUARIAL ASSUMPTIONS
The total pension liability in the June 30, 2023 actuarial valuation was determined using an individual
entry-age normal actuarial cost method and the following actuarial assumptions:
Inflation 2.25% per year
Investment Rate of Return 7.00%
The long-term investment rate of return is based on a review of inflation and investment return assumptions
from a number of national investment consulting firms. The review provided a range of investment return
rates deemed to be reasonable by the actuary. An investment return of 7.00% was deemed to be within that
range of reasonableness for financial reporting purposes.
Benefit increases after retirement are assumed to be 1.25% for the GERF and 1.00% for the PEPFF.
Salary growth assumptions in the GERF range in annual increments from 10.25% after one year of service
to 3.0% after 27 years of service. In the PEPFF, salary growth assumptions range from 11.75% after one
year of service to 3.0% after 24 years of service.
Mortality rates for GERF were based on the Pub-2010 General Employee Mortality Table. Mortality rates
for PEPFF were based on the Pub-2010 Public Safety Employee Mortality tables. The tables are adjusted
slightly to fit PERA’s experience.
Actuarial assumptions for GERF are reviewed every four years. The most recent four-year experience
study for GERF was completed in 2022. The assumption changes were adopted by the Board and become
effective with the July 1, 2023 actuarial valuation. The most recent four-year experience study for PEPFF
was completed in 2020 and adopted by the Board and became effective with the July 1, 2021 actuarial
valuation.
The following changes in actuarial assumptions and plan provisions occurred in 2023:
General Employees Fund
Changes in Actuarial Assumptions:
The investment return assumption and single discount rate were changed from 6.50% to 7.00%.
Year Ending Pension
December 31, Expense
2024 ($62,657)
2025 (142,314)
2026 699,283
2027 (467,568)
2028 (1,026,843)
Thereafter -
73
CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
Changes in Plan Provisions:
An additional one-time direct state aid contribution of $170.1 million was contributed to the Plan on
October 1, 2023.
The vesting period of those hired after June 30, 2010, was changed from five years of allowable
service to three years of allowable service.
The benefit increase delay for early retirements on or after January 1, 2024, was eliminated.
A one-time, non-compounding benefit increase of 2.50% minus the actual 2024 adjustment will be
payable in a lump sum for calendar year 2024 by March 31, 2024.
Police and Fire Fund
Changes in Actuarial Assumptions:
The investment return assumption was changed from 6.50% to 7.00%.
The single discount rate changed from 5.40% to 7.00%.
.
Changes in Plan Provisions:
An additional one-time direct state aid contribution of $19.4 million was contributed to the Plan on
October 1, 2023.
Vesting requirement for new hires after June 30, 2014, was changed from a graded 20-year vesting
schedule to a graded 10-year vesting schedule, with 50% vesting after five years, increasing
incrementally to 100% after 10 years.
A one-time, non-compounding benefit increase of 3.00% will be payable in a lump sum for calendar
year 2024 by March 31, 2024.
Psychological treatment is required effective July 1, 2023, prior to approval for a duty disability
benefit for a psychological condition relating to the member’s occupation.
The total and permanent duty disability benefit was increased, effective July 1, 2023.
The State Board of Investment, which manages the investments of PERA, prepares an analysis of the
reasonableness on a regular basis of the long-term expected rate of return using a building-block method in
which best-estimate ranges of expected future rates of return are developed for each major asset class.
These ranges are combined to produce an expected long-term rate of return by weighting the expected
future rates of return by the target asset allocation percentages. The target allocation and best estimates of
geometric real rates of return for each major asset class are summarized in the following table:
Target
Long-Term
Expected
Asset Class Allocation Real Rate of Return
Domestic equity 33.5% 5.10%
International equity 16.5% 5.30%
Fixed income 25% 0.75%
Private markets 25% 5.90%
Total 100%
F. DISCOUNT RATE
The discount rate used to measure the total pension liability in 2023 was 7.00%. The projection of cash
flows used to determine the discount rate assumed that contributions from plan members and employers
will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net position of
the GERF and PEPFF were 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.
74
CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
G. PENSION LIABILITY SENSITIVITY
The following presents the City’s proportionate share of the net pension liability, calculated using the
discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of the net
pension liability would be if it were calculated using a discount rate one percentage point lower (6.00%) or
one percentage point higher (8.00%) than the current discount rate:
1% Decrease in Current 1% Increase in
Discount Rate Discount Rate Discount Rate
Proportionate share of the
GERF net pension liability $12,751,431 $7,207,944 $2,648,214
Proportionate share of the
PEPFF net pension liability $7,486,500 $3,773,211 $720,390
H. PENSION PLAN FIDUCIARY NET POSITION
Detailed information about each pension plan’s fiduciary net position is available in a separately-issued
PERA financial report that includes financial statements and required supplementary information. That
report may be obtained at www.mnpera.org.
I. PENSION EXPENSE
Pension expense recognized by the City for the year ended December 31, 2023 is as follows:
GERF $1,316,648
PEPFF 965,566
Fire Relief (note 10) 410,658
Total $2,692,872
Note 10 DEFINED BENEFIT PENSION PLAN – FIRE RELIEF ASSOCIATION
A. PENSION PLAN FIDUCIARY NET POSITION
Members of the Golden Valley Fire Department (the Department) are covered by a defined benefit pension
plan administered by the Golden Valley Fire Relief Association (the Association). As of December 31,
2022, the measurement date of the most recent actuarial valuation, the plan covered 46 active firefighters
and 6 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 353G.
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.
75
CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
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% of the pension as described by the bylaws. This percentage increases 4% 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, 2023 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, 2023, the City recognized pension expense of $410,658. The City also
recognized $219,424 as revenue for the state of Minnesota’s on-behalf contributions to the plan.
D. PENSION COSTS
At December 31, 2023, the City reported a net pension asset of $1,341,828 for the plan. The net pension
asset was measured as of December 31, 2022. The total pension liability used to calculate the net pension
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, 2022.
76
CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
The following table presents the changes in net pension asset during the year:
Plan
Total Fiduciary Net
Pension Net Pension
Liability Position Asset
(a) (b) (b-a)
Beginning balance $3,725,886 $6,853,916 $3,128,030
Changes for the year:
Service cost 255,272 - (255,272)
Interest on total pension liability 237,579 - (237,579)
Actual experience (gains)/losses (315,306) - 315,306
Projected investment earnings 40,078 - (40,078)
Changes in benefit level 523,732 - (523,732)
Contributions - employer - - -
Contributions - State of MN - 211,529 211,529
Asset gain/(loss) - (1,233,055) (1,233,055)
Benefit payouts (652,192) (652,192) -
Administrative fees - (23,321) (23,321)
Net changes 89,163 (1,697,039) (1,786,202)
Ending balance $3,815,049 $5,156,877 $1,341,828
At December 31, 2023, the City reported deferred inflows of resources and deferred outflows of resources
related to pensions from the following sources:
Deferred
Outflows Deferred Inflows
of Resources of Resources
Difference between expected and $51,369 $470,096
actual liability
Changes in actuarial assumptions 100,207 10,611
Difference between projected and 561,946 -
actual investment earnings
Contributions paid subsequent to the 219,424 -
measurement date
Total $932,946 $480,707
77
CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
Deferred outflows and inflows of resources totaling $219,424 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, 2024. Other amounts reported as deferred outflows and
inflows of resources related to the plan will be recognized in pension expense as follows:
Year Ending Pension
December 31, Expense
2024 ($101,507)
2025 55,975
2026 168,240
2027 284,644
2028 (48,822)
Thereafter (125,715)
E. ACTUARIAL METHODS AND ASSUMPTIONS
The total pension liability at the December 31, 2022 measurement date was determined using the entry-age
normal actuarial cost method and the following actuarial assumptions:
It is assumed that 50% of active members will retire when reaching retirement eligibility (later of
age 50 and 10 years of service); then 50% retire each subsequent year until 100% retirement at the
earlier of age 65 or 30 years of service
Inflation rate 2.50%
Cost of living increases 0.00%
Investment rate of return 6.00%
20-year municipal bond yield 4.05%
During the most recent measurement period (January 1, 2022 – December 31, 2022), the following
actuarial assumption and plan changes were made:
Actuarial Assumption Changes: the investment rate of return and single discount rate changed from 6.50%
to 6.00%. Disability, mortality, and withdrawal assumptions were updated from the rates used in the July
1, 2020 Minnesota PERA Police and Fire Plan actuarial valuation to the rates used in the July 1, 2022
Minnesota PERA Police and Fire Plan actuarial valuation. The inflation assumption was updated from
2.25% to 2.50%. Retirement assumptions were updated to reflect the change in the vesting schedule.
Plan Changes: the plan benefit level increased from $12,200 to $13,000 per year of service. The vesting
schedule was updated to reflect a bylaw change effective December 2022, reducing the years of service
required for full vesting from 20 to 10 years, and for partial vesting from 10 to 5 years.
The 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.
78
CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
The target allocation and best-estimates of geometric real rates of return for each major asset class are
summarized in the following table:
Target Long-term Expected
Asset Class Allocation Real Rate of Return
Domestic equity 63% 4.10%
International equity 12% 4.64%
Fixed income 18% 1.05%
Real estate and alternatives 0% 3.54%
Cash and equivalents 7% -0.45%
100%
F. DISCOUNT RATE
The discount rate used to measure the total pension liability was 6.00%. 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. NET PENSION ASSET SENSITIVITY
The following presents the net pension asset for the plan, calculated using the discount rate of 6.00%, as
well as what the net pension 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
Net pension asset $1,253,645 $1,341,828 $1,428,657
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.
79
CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
Note 11 TAX INCREMENT FINANCING DISTRICTS AND TAX ABATEMENTS
The City is the administering authority for the following tax increment financing (TIF) districts:
The creation of TIF districts as authorized under Minnesota Statutes, Chapter 469.178, is a common economic
development vehicle used 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.
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%. Payments on 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, 2023 is $46,284, and tax increment revenue rebated was $29,236 for 2023.
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%. Payments on 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,
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 2023
Original $6,650 $53,990 $8,870 $51,288
Current 44,560 603,920 44,858 758,695
Captured - retained $37,910 $549,930 $35,988 $707,407
G.O. tax increment bonds issued $ - $1,170,000 $ - $ -
Principal payments - 505,000 - -
Outstanding at December 31, 2023 $ - $665,000 $ - $ -
80
CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
is not actual debt in-substance. The outstanding principal balance of this note as of December 31, 2023 is
$1,557,928, and tax increment revenue rebated was $343,624 for 2023.
Note 12 JOINT POWERS AGREEMENT
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.
The following financial information is from the Commission’s audited financial statements for the year
ended January 31, 2024, which are available at Golden Valley City Hall:
Total assets $7,915,427
Total liabilities 262,277
Net position $7,653,150
Revenue $3,858,154
Expenses 2,603,425
Changes in net position $1,254,729
Of the total revenue, $617,430 represented assessments to member cities. The City’s portion was $162,068,
or 26.2%, 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 Water
and Sewer 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.
81
CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
The following financial information is from the JWC’s audited financial statements for the year ended
December 31, 2023, which are available at Golden Valley City Hall:
Total assets $23,767,039
Total liabilities 1,337,176
Net position $22,429,863
Revenue $11,194,879
Expenses 9,619,123
Changes in net position $1,575,756
Of the total revenues, $10,585,760 represented assessments paid by member cities. Of the total member
assessments, $4,105,342, or 38.8%, was paid by the City.
Note 13 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, 2023, the City is committed to various construction contracts for the improvement of City
property. The City’s remaining commitment under these contracts is approximately $1,986,000.
82
CITY OF GOLDEN VALLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
Note 14 DEFICIT FUND BALANCES/NET POSITION
At December 31, 2023, the Lodging Tax special revenue fund reported a deficit fund balance of $17,077. The
deficit will be eliminated with future lodging tax collections.
At December 31, 2023, the Payroll Benefits Internal Service Fund reported a deficit net position of $12,245,028.
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.
Note 15 RECENTLY ISSUED ACCOUNTING STANDARDS
The Governmental Accounting Standards Board (GASB) recently approved the following statements which were
not implemented for these financial statements:
Statement No. 99 Omnibus 2022. The provisions of this Statement contain multiple effective dates, the first
being for reporting periods beginning after June 15, 2022.
Statement No. 100 Accounting Changes and Error Corrections – an amendment of GASB Statement No. 62.
The provisions of this Statement are effective for reporting periods beginning after June 15, 2023.
Statement No. 101 Compensated Absences. The provisions of this Statement are effective for reporting periods
beginning after December 15, 2023.
Statement No. 102 Certain Risk Disclosures. The provisions of this Statement are effective for reporting
periods beginning after June 15, 2024.
Statement No. 103 Financial Reporting Model Improvements. The provisions of this Statement are effective
for fiscal years beginning after June 15, 2025.
Statement No. 104 Disclosure of Certain Capital Assets. The provisions of this Statement are effective for
fiscal years beginning after June 15, 2025.
The effect these standards may have on future financial statements is not determinable at this time.
Note 16 SUBSEQUENT EVENTS
On April 9, 2024, the City issued $3,320,000 of General Obligation Improvement Bonds, Series 2024A, which will
be used to finance the City’s ongoing Pavement Management Program. The bonds bear coupon interest rates ranging
from 4.00% to 5.00%, and have a final maturity date of February 1, 2040.
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REQUIRED SUPPLEMENTARY INFORMATION
85
CITY OF GOLDEN VALLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenue:
Property taxes $24,843,020 $24,843,020 $24,097,267 ($745,753)
Special assessments 6,000 6,000 8,717 2,717
Licenses and permits 1,221,705 1,536,705 3,264,091 1,727,386
Intergovernmental revenue 99,280 99,280 1,108,638 1,009,358
Charges for services 1,462,065 1,462,065 1,612,851 150,786
Fines and forfeits 76,640 76,640 101,924 25,284
Investment income 125,000 125,000 756,705 631,705
Other revenue 5,500 5,500 96,642 91,142
Total revenues 27,839,210 28,154,210 31,046,835 2,892,625
Expenditures:
Current:
General government:
City Council and Boards 478,805 478,805 472,092 6,713
City Manager 1,693,715 1,693,715 1,450,148 243,567
Administrative services 2,700,435 2,700,435 2,809,502 (109,067)
Legal services and City Clerk 482,395 482,395 363,100 119,295
Risk management 370,000 370,000 341,320 28,680
Total general government 5,725,350 5,725,350 5,436,162 289,188
Community development:
Administration 357,855 357,855 271,574 86,281
Planning 401,220 401,220 417,519 (16,299)
Inpections 917,025 917,025 948,227 (31,202)
Engineering 707,665 707,665 549,223 158,442
Total community development 2,383,765 2,383,765 2,186,543 197,222
Public safety:
Police 7,705,215 7,705,215 6,087,127 1,618,088
Fire 2,184,600 2,184,600 1,812,501 372,099
Total public safety 9,889,815 9,889,815 7,899,628 1,990,187
Public works:
Building operations 872,100 872,100 908,328 (36,228)
Street maintenance 2,808,670 2,808,670 2,760,346 48,324
Park maintenance 1,536,370 1,536,370 1,713,575 (177,205)
Total public works 5,217,140 5,217,140 5,382,249 (165,109)
Parks and recreation:
Administration 1,016,125 1,016,125 932,326 83,799
Recreation programs 437,015 437,015 309,138 127,877
Total parks and recreation 1,453,140 1,453,140 1,241,464 211,676
Total expenditures 24,669,210 24,669,210 22,146,046 2,523,164
Revenue over (under) expenditures 3,170,000 3,485,000 8,900,789 5,415,789
Other financing sources (uses):
Transfers in 30,000 30,000 30,000 -
Transfers out (3,200,000) (3,515,000) (3,515,000) -
Total other financing sources (uses)(3,170,000) (3,485,000) (3,485,000) -
Net change in fund balance $ - $ - 5,415,789 $5,415,789
Fund balance - January 1 17,333,319
Fund balance - December 31 $22,749,108
Budgeted Amounts
See accompanying notes to the required supplementary information.
86
CITY OF GOLDEN VALLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 11
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS
For The Last Ten Years
Fiscal year ended December 31, 2023 2022 2021 2020 2019 2018
Measurement date December 31, 2022 2021 2020 2019 2018 2017
Total OPEB liability:
Service cost $174,337 $161,504 $131,927 $110,996 $144,892 $133,055
Interest 64,505 41,206 48,057 84,722 72,136 71,708
Differences between expected and actual experience 3,547 1,548,305 4,583 (620,986) - -
Changes in assumptions (444,717) (396,763) 122,651 125,655 (101,648) 50,539
Benefit payments (176,888) (182,035) (89,561) (81,242) (62,128) (72,237)
Net change in total OPEB liability (379,216) 1,172,217 217,657 (380,855) 53,252 183,065
Total OPEB liability - beginning of year 3,045,439 1,873,222 1,655,565 2,036,420 1,983,168 1,800,103
Total OPEB liability - end of year $2,666,223 $3,045,439 $1,873,222 $1,655,565 $2,036,420 $1,983,168
Covered-employee payroll $14,700,000 $14,000,000 $10,100,000 $10,100,000 $10,100,000 $9,700,000
Total OPEB liability as a percentage
of covered-employee payroll 18.1% 21.8% 18.5% 16.4% 20.2% 20.4%
There are no plan assets accumulated in a trust that meet the criteria in paragraph 4 of GASB Statement No. 75 to pay these benefits.
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2018 and is intended to show a ten year trend.
Additional years will be added as they become available.
See accompanying notes to the required supplementary information.
87
CITY OF GOLDEN VALLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 12
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY -
GENERAL EMPLOYEES RETIREMENT FUND
For The Last Ten Years
City's
State's Proportionate Plan
Proportionate Share of the Fiduciary
City's City's Share (Amount) Net Pension Net Position
Proportionate Proportionate of the Liability as a as a
Share Share (Amount) Net Pension Percentage of Percentage
Measurement Fiscal Year (Percentage) of of the Liability its Covered of the Total
Date Ending the Net Pension Net Pension Associated with Total Covered Payroll Pension
June 30 December 31 Liability Liability (a) the City (b) (a+b) Payroll (c) (a/c) Liability
2015 2015 0.1085% $5,623,033 $ - $5,623,033 $6,374,138 88.2% 78.2%
2016 2016 0.1072% 8,704,108 113,679 8,817,787 6,649,482 130.9% 68.9%
2017 2017 0.1107% 7,067,015 88,825 7,155,840 7,128,621 99.1% 75.9%
2018 2018 0.1088% 6,035,778 198,039 6,233,817 7,313,615 82.5% 79.5%
2019 2019 0.1132% 6,258,574 194,492 6,453,066 8,008,282 78.2% 80.2%
2020 2020 0.1148% 6,882,784 212,348 7,095,132 8,189,223 84.0% 79.1%
2021 2021 0.1176% 5,022,047 153,374 5,175,421 8,466,921 59.3% 87.0%
2022 2022 0.1262% 9,995,080 293,026 10,288,106 9,452,797 105.7% 76.7%
2023 2023 0.1289% 7,207,944 198,768 7,406,712 10,253,907 72.2% 83.1%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend.
Additional years will be added as they become available.
See accompanying notes to the required supplementary information.
88
CITY OF GOLDEN VALLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 13
SCHEDULE OF PENSION CONTRIBUTIONS - GENERAL EMPLOYEES RETIREMENT FUND
For The Last Ten Years
Statutorily Contributions in Contribution Contributions as a
Fiscal Year Required Relation to the Deficiency Covered Percentage of
Ending Contribution Statutorily Required (Excess)Payroll Covered
December 31 (a)Contribution (b) (a-b)(c)Payroll (b/c)
2015 $509,632 $509,632 $ - $6,795,097 7.50%
2016 507,606 507,606 - 6,768,463 7.50%
2017 522,131 522,131 - 6,961,749 7.50%
2018 580,703 580,703 - 7,742,669 7.50%
2019 611,979 611,979 - 8,159,717 7.50%
2020 621,390 621,390 - 8,285,192 7.50%
2021 665,363 665,363 - 8,871,502 7.50%
2022 743,653 743,653 - 9,915,373 7.50%
2023 806,132 806,132 - 10,748,431 7.50%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be added as they become available.
See accompanying notes to the required supplementary information.
89
CITY OF GOLDEN VALLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 14
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY -
PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Last Ten Years
City's
State's Proportionate Plan
Proportionate Share of the Fiduciary
City's City's Amount Net Pension Net Position
Proportionate Proportionate of the Liability as a as a
Percentage Amount Net Pension Percentage of Percentage
Measurement Fiscal Year of the of the Liability its Covered of the Total
Date Ending Net Pension Net Pension Associated with Total Covered Payroll Pension
June 30 December 31 Liability Liability (a) the City (b) (a+b) Payroll (c) (a/c) Liability
2015 2015 0.3230% $3,670,036 $ - $3,670,036 $2,955,388 124.2% 86.6%
2016 2016 0.3190% 12,802,028 - 12,802,028 3,072,358 416.7% 63.9%
2017 2017 0.3190% 4,306,880 - 4,306,880 3,274,040 131.5% 85.4%
2018 2018 0.3157% 3,365,037 - 3,365,037 3,327,398 101.1% 88.8%
2019 2019 0.3331% 3,546,186 - 3,546,186 3,511,202 101.0% 89.3%
2020 2020 0.3216% 4,239,033 99,871 4,338,904 3,627,488 116.9% 87.2%
2021 2021 0.3083% 2,379,749 106,967 2,486,716 3,643,415 65.3% 93.7%
2022 2022 0.2575% 11,205,382 489,606 11,694,988 3,128,100 358.2% 70.5%
2023 2023 0.2185% 3,773,211 151,987 3,925,198 2,869,152 136.8% 86.5%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend.
Additional years will be added as they become available.
See accompanying notes to the required supplementary information.
90
CITY OF GOLDEN VALLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 15
SCHEDULE OF PENSION CONTRIBUTIONS - PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Last Ten Years
Statutorily Contributions in Contribution Contributions as a
Fiscal Year Required Relation to the Deficiency Covered Percentage of
Ending Contribution Statutorily Required (Excess)Payroll Covered
December 31 (a)Contribution (b) (a-b)(c)Payroll (b/c)
2015 $507,642 $507,642 $ - $3,133,590 16.20%
2016 506,383 506,383 - 3,125,427 16.20%
2017 519,363 519,363 - 3,205,941 16.20%
2018 550,962 550,962 - 3,400,997 16.20%
2019 609,750 609,750 - 3,597,346 16.95%
2020 644,673 644,673 - 3,642,224 17.70%
2021 607,647 607,647 - 3,433,032 17.70%
2022 532,121 532,121 - 3,006,333 17.70%
2023 505,929 505,929 - 2,858,356 17.70%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
See accompanying notes to the required supplementary information.
91
CITY OF GOLDEN VALLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE NET PENSION ASSET AND RELATED RATIOS -
GOLDEN VALLEY FIRE DEPARTMENT RELIEF ASSOCIATION
For The Last Ten Years
City fiscal year ended December 31, 2023 2022 2021
Relief Association fiscal year ended December 31,
(measurement date) 2022 2021 2020
Total pension liability:
Service cost $255,272 $188,583 $183,925
Interest 237,579 183,308 198,850
Differences between expected and actual experience (315,306) - (183,732)
Changes in assumptions 40,078 - 38,609
Changes in benefit terms 523,732 833,556 120,267
Benefit payments (652,192)(222,200)(754,557)
Net change in total pension liability 89,163 983,247 (396,638)
Total pension liability - beginning 3,725,886 2,742,639 3,139,277
Total pension liability - ending (a)$3,815,049 $3,725,886 $2,742,639
Plan fiduciary net position:
Contributions (state and local)$211,529 $194,195 $187,368
Net investment income (1,233,055)1,038,155 893,892
Benefit payments (652,192)(222,200)(754,557)
Administrative expense (23,321)(17,935)(15,442)
Net change in plan fiduciary net position (1,697,039)992,215 311,261
Total plan fiduciary net position - beginning 6,853,916 5,861,701 5,550,440
Total plan fiduciary net position - ending (b)$5,156,877 $6,853,916 $5,861,701
Net pension asset - ending (b) - (a)$1,341,828 $3,128,030 $3,119,062
Plan fiduciary net position as a percentage of the
total pension liability 135.17%183.95%213.72%
The Relief Association is comprised of paid on-call firefighters whose pay does not meet the definition of covered payroll.
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
See accompanying notes to the required supplementary information.
92
Statement 16
2020 2019 2018 2017 2016 2015
2019 2018 2017 2016 2015 2014
$171,251 $174,845 $165,540 $169,611 $162,663 $158,309
202,299 228,505 244,540 221,030 198,248 189,130
- (124,858) - 175,353 - -
- 60,574 24,168 - (44,179) -
120,568 78,567 - 69,254 - -
(361,231)(776,390)(328,180)(307,251)(110,208)(332,858)
132,887 (358,757)106,068 327,997 206,524 14,581
3,006,390 3,365,147 3,259,079 2,931,082 2,724,558 2,709,977
$3,139,277 $3,006,390 $3,365,147 $3,259,079 $2,931,082 $2,724,558
$174,486 $169,606 $161,767 $153,252 $148,972 $143,581
1,092,687 (259,687)849,121 414,106 (20,626)335,884
(361,231)(776,390)(328,180)(307,251)(110,208)(332,858)
(16,518)(18,459)(12,778)(16,889)(15,827)(16,509)
889,424 (884,930)669,930 243,218 2,311 130,098
4,661,016 5,545,946 4,876,016 4,632,798 4,630,487 4,500,389
$5,550,440 $4,661,016 $5,545,946 $4,876,016 $4,632,798 $4,630,487
$2,411,163 $1,654,626 $2,180,799 $1,616,937 $1,701,716 $1,905,929
176.81%155.04%164.81%149.61%158.06%169.95%
See accompanying notes to the required supplementary information.
93
CITY OF GOLDEN VALLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 17
SCHEDULE OF CONTRIBUTIONS
GOLDEN VALLEY FIRE DEPARTMENT RELIEF ASSOCIATION
For The Last Ten Years
City Contributions
Statutorily Contribution
Fiscal Year Required Actual Deficiency
Ending Contributions Contributions (Excess)Non-employer
December 31 (a)(b)(a-b)2% State Aid
2014 $1,141 $1,141 $ - $142,440
2015 - - - 148,972
2016 - - - 153,252
2017 - - - 161,767
2018 - - - 169,606
2019 - - - 174,486
2020 - - - 187,368
2021 - - - 194,195
2022 - - - 211,529
2023 - - - 219,424
See accompanying notes to the required supplementary information.
94
CITY OF GOLDEN VALLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2023
Note A LEGAL COMPLIANCE – BUDGETS
The City’s 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.
Note B PENSION INFORMATION
PERA – General Employees Retirement Fund
2023 Changes in Actuarial Assumptions:
The investment return assumption and single discount rate were changed from 6.50% to 7.00%.
2023 Changes in Plan Provisions:
An additional one-time direct state aid contribution of $170.1 million was contributed to the Plan on
October 1, 2023.
The vesting period of those hired after June 30, 2010, was changed from five years of allowable
service to three years of allowable service.
The benefit increase delay for early retirements on or after January 1, 2024, was eliminated.
A one-time, non-compounding benefit increase of 2.50% minus the actual 2024 adjustment will be
payable in a lump sum for calendar year 2024 by March 31, 2024.
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% to 6.50% for financial
reporting purposes.
The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020.
2020 Changes in Actuarial Assumptions:
The price inflation assumption was decreased from 2.50% to 2.25%.
The payroll growth assumption was decreased from 3.25% to 3.00%.
Assumed salary increase rates were decreased 0.25% and assumed rates of retirement were changed
resulting in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements.
Assumed rates of termination and disability were also changed.
Base mortality tables were changed from RP-2014 tables to Pub-2010 tables, with adjustments.
The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.
The spouse age difference was changed from two years older for females to one year older.
The assumed number of married male new retirees electing the 100% Joint & Survivor option changed
from 35% to 45%. The assumed number of married female new retirees electing the 100% Joint &
Survivor option changed from 15% to 30%. The corresponding number of married new retirees
electing the Life annuity option was adjusted accordingly.
2020 Changes in Plan Provisions:
Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through
December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations occurring after
June 30, 2020.
95
CITY OF GOLDEN VALLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2023
2019 Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2017 to MP-2018.
2019 Changes in the Plan Provisions:
The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to
$21.0 million per year. The State’s special funding contribution was changed prospectively, requiring
$16.0 million due per year through 2031.
2018 Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2015 to MP-2017.
The assumed benefit increase was changed from 1.00% per year through 2044 and 2.50% per year
thereafter to 1.25% per year.
2017 Changes in Actuarial Assumptions:
The Combined Service Annuity (CSA) loads were changed from 0.8% for active members and 60%
for vested and non-vested deferred members. The revised CSA loads are now 0.0% for active member
liability, 15.0% for vested deferred member liability and 3.0% for non-vested deferred member
liability.
The assumed post-retirement benefit increase rate was changed from 1.0% per year for all years to
1.0% per year through 2044 and 2.5% per year thereafter.
2016 Changes in Actuarial Assumptions:
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035 and
2.5% per year thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was changed
from 7.9% to 7.5%.
Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed
future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll
growth and 2.50% for inflation.
PERA – Public Employees Police and Fire Fund
2023 Changes in Actuarial Assumptions:
The investment return assumption was changed from 6.50% to 7.00%.
The single discount rate changed from 5.40% to 7.00%.
2023 Changes in Plan Provisions:
An additional one-time direct state aid contribution of $19.4 million was contributed to the Plan on
October 1, 2023.
Vesting requirement for new hires after June 30, 2014, was changed from a graded 20-year vesting
schedule to a graded 10-year vesting schedule, with 50% vesting after five years, increasing
incrementally to 100% after 10 years.
A one-time, non-compounding benefit increase of 3.00% will be payable in a lump sum for calendar
year 2024 by March 31, 2024.
Psychological treatment is required effective July 1, 2023, prior to approval for a duty disability
benefit for a psychological condition relating to the member’s occupation.
The total and permanent duty disability benefit was increased, effective July 1, 2023.
96
CITY OF GOLDEN VALLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2023
2022 Changes in Actuarial Assumptions:
The single discount rate changed from 6.50% to 5.4%.
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% to 6.50% for financial
reporting purposes.
The inflation assumption was changed from 2.50% to 2.25%.
The payroll growth assumption was changed from 3.25% to 3.00%.
The base mortality tables for healthy annuitants, disabled annuitants and employees were changed
from RP-2014 tables to Pub-2010 Public Safety Mortality tables. The mortality improvement scale
was changed from MP-2019 to MN-2020.
Assumed salary increase and retirement rates were modified as recommended in the July 14, 2020
experience study. The changes result in a decrease in gross salary increase rates, slightly more
unreduced retirements and fewer assumed early retirements.
Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates. The
changes result in more assumed terminations.
Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall,
proposed rates result in more projected disabilities.
Assumed percent married for active female members was changed from 60% to 70%.
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.
2018 Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2016 to MP-2017.
2017 Changes in Actuarial Assumptions:
The single discount rate was changed from 5.6% to 7.5%.
Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The
net effect is proposed rates that average 0.34% lower than the previous rates.
Assumed rates of retirement were changed, resulting in fewer retirements.
The Combined Service Annuity (CSA) load was 30% for vested and non-vested deferred members.
The CSA was changed to 33% for vested members and 2% for non-vested members.
The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table
to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor
of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base
mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the
mortality tables assumed for healthy retirees.
Assumed termination rates were decreased to 3% for the first three years of service. Rates beyond the
select period of three years were adjusted, resulting in more expected terminations overall.
Assumed percentage of married female members was decreased from 65% to 60%.
Assumed age difference was changed from separate assumptions for male members (wives assumed to
be three years younger) and female members (husbands assumed to be four years older) to the
assumption that males are two years older than females.
The assumed percentage of female members electing Joint and Survivor annuities was increased.
The assumed post-retirement benefit increase rate was changed from 1.00% for all years to 1.00% per
year through 2064 and 2.50% thereafter.
97
CITY OF GOLDEN VALLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2023
2016 Changes in Actuarial Assumptions:
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037 and
2.5% per year thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate changed
from 7.9% to 5.6%.
The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25%
for payroll growth and 2.50% for inflation.
Golden Valley Fire Department Relief Association
2023 Changes in Actuarial Assumptions:
The expected investment return and discount rate decreased from 6.50% to 6.00%.
The mortality assumptions were updated from the rates used in the July 1, 2020 Minnesota PERA
PEPFF actuarial valuation to the ratios used in the July 1, 2022 Minnesota PERA PEPFF actuarial
valuation.
The inflation assumption increased from 2.25% to 2.50%.
Retirement assumptions were updated to reflect the change in the vesting schedule.
2023 Changes in Plan Provisions:
The plan benefit level increased $12,200 to $13,000 per year of service.
The vesting schedule was updated to reflect a bylaw change effective December 2022, reducing the
years of service required for full vesting from 20 to 10 years, and for partial vesting from 10 to 5 years.
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% to 6.50% to reflect updated
market assumptions.
The mortality assumptions were updated from the rates used in 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% to 2.25%.
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% to 6.75%.
The inflation assumption was updated from 2.75% to 2.50%.
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% to 7.25%.
98
CITY OF GOLDEN VALLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2023
2017 Changes in Plan Provisions:
The plan benefit level increased from $7,500 to $8,000 per year of service.
2016 Changes in Actuarial Assumptions:
The actuarial assumptions for the single discount rate increased from 7.00% to 7.50%.
Other Post-Employment Benefit Plan
2023 Changes in Actuarial Assumptions:
The discount rate was changed from 2.06% to 4.05%.
2022 Changes in Actuarial Assumptions:
The discount rate was changed from 2.12% to 2.06%.
The general inflation rate was changed from 2.00% to 2.50%
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% to 2.12%.
2020 Changes in Actuarial Assumptions:
The actuarial assumptions for the single discount rate increased from 4.09% to 2.74%.
The healthcare cost trend rate, mortality tables and payroll growth rates were updated for changes in
recent experience studies and inflationary adjustment since the previous valuation.
2019 Changes in Actuarial Assumptions:
The actuarial assumptions for the single discount rate increased from 3.44% to 4.09%.
2018 Changes in Actuarial Assumptions:
The actuarial assumptions for the single discount rate decreased from 4.50% to 3.44%.
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100
COMBINING AND INDIVIDUAL
NONMAJOR FUND FINANCIAL STATEMENTS
101
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102
NONMAJOR GOVERNMENTAL FUNDS
103
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104
NONMAJOR FUND DESCRIPTIONS
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 Community Center – 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.
105
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 Fund – used to account for the activity of the City’s HRA housing
program and the redevelopment activity in the City’s tax increment districts.
Tax Increment Financing District Funds (North Wirth No. 1505, Highway 55 West No. 1506,
Cornerstone Creek No. 1507 and Winnetka/Medicine Lake No. 1508) – TIF districts are used
by the City to spur economic development and redevelopment.
Douglas Drive Improvement Fund – used to account for street improvements related to
Douglas Drive.
106
CITY OF GOLDEN VALLEY, MINNESOTA
COMBINING BALANCE SHEET Statement 18
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2023
Special Revenue Debt Service Capital Projects Totals
Assets:
Cash and investments $1,387,718 $1,898,854 $12,753,092 $16,039,664
Accounts receivable 138,391 - - 138,391
Delinquent taxes receivable - - 5,875 5,875
Special assessments receivable -119,908 16,713 136,621
Total assets $1,526,109 $2,018,762 $12,775,680 $16,320,551
Liabilities:
Accounts payable $27,773 $ -$287,396 $315,169
Due to other governmental units 26,553 - - 26,553
Due to other funds - - 255,465 255,465
Contracts payable - - 26,821 26,821
Deposits payable 183,218 -8,686 191,904
Advances from other funds - - 926,861 926,861
Total liabilities 237,544 -1,505,229 1,742,773
Deferred inflows of resources:
Unavailable revenue - taxes - - 5,875 5,875
Unavailable revenue - special assessments -119,908 16,713 136,621
Total deferred inflows of resources -119,908 22,588 142,496
Fund balance:
Restricted 1,143,228 1,898,854 3,129,073 6,171,155
Committed 162,414 - - 162,414
Assigned - - 8,118,790 8,118,790
Unassigned (17,077) - - (17,077)
Total fund balance 1,288,565 1,898,854 11,247,863 14,435,282
Total liabilities, deferred inflows of
resources, and fund balances $1,526,109 $2,018,762 $12,775,680 $16,320,551
107
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108
CITY OF GOLDEN VALLEY, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 19
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2023
Special Revenue Debt Service Capital Projects Total
Revenue:
Property taxes $ - $1,198,429 $238,212 $1,436,641
Tax increments - - 1,585,702 1,585,702
Special assessments - 37,491 6,467 43,958
Franchise taxes - 393,711 - 393,711
Charges for services 565,262 - - 565,262
Investment income 53,710 32,418 537,135 623,263
Other revenue 69,910 - 413,869 483,779
Total revenues 688,882 1,662,049 2,781,385 5,132,316
Expenditures:
Current:
General government 67,897 - - 67,897
Community development 219 - 633,079 633,298
Parks and recreation 438,484 - - 438,484
Capital outlay 92,320 - 3,564,940 3,657,260
Debt service:
Principal - 1,180,000 - 1,180,000
Interest and fiscal charges - 621,464 48,033 669,497
Total expenditures 598,920 1,801,464 4,246,052 6,646,436
Revenue over (under) expenditures 89,962 (139,415) (1,464,667) (1,514,120)
Other financing sources (uses):
Sale of capital assets - - 369,350 369,350
Transfers in - 290,225 2,615,000 2,905,225
Transfers out - - (290,225)(290,225)
Total other financing sources (uses) - 290,225 2,694,125 2,984,350
Net change in fund balance 89,962 150,810 1,229,458 1,470,230
Fund balance - January 1 1,198,603 1,748,044 10,018,405 12,965,052
Fund balance - December 31 $1,288,565 $1,898,854 $11,247,863 $14,435,282
109
CITY OF GOLDEN VALLEY, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2023
Community
Services DWI
Commission Cemetery Enforcement
Assets:
Cash and investments $158,138 $101,750 $30,633
Accounts receivable 4,276 - -
Total assets $162,414 $101,750 $30,633
Liabilities:
Accounts payable $ - $ - $ -
Due to other governments - - -
Deposits payable - - -
Total liabilities - - -
Fund balance:
Restricted - 101,750 30,633
Committed 162,414 - -
Unassigned - - -
Total fund balance 162,414 101,750 30,633
Total liabilities, deferred inflows of
resources, and fund balances $162,414 $101,750 $30,633
110
Statement 20
Brookview
Community Noah Joynes
VOTF HRA General Center Lodging Tax Youth Recreation Total
$153,635 $131,509 $779,705 $4,601 $27,747 $1,387,718
- - 125,690 8,425 - 138,391
$153,635 $131,509 $905,395 $13,026 $27,747 $1,526,109
$ - $10,804 $645 $16,324 $ - $27,773
- - 12,774 13,779 - 26,553
- (12,928)196,267 - (121)183,218
- (2,124)209,686 30,103 (121)237,544
153,635 133,633 695,709 - 27,868 1,143,228
- - - - - 162,414
- - - (17,077) - (17,077)
153,635 133,633 695,709 (17,077)27,868 1,288,565
$153,635 $131,509 $905,395 $13,026 $27,747 $1,526,109
111
CITY OF GOLDEN VALLEY, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2023
Community
Services DWI
Commission Cemetery Enforcement
Revenue:
Charges for services $ - $4,500 $ -
Investment income - 4,380 1,307
Other revenue:
Lawful gambling proceeds 40,759 - -
Contributions 19,739 - -
Miscellaneous - - 5,546
Total revenues 60,498 8,880 6,853
Expenditures:
Current:
General government 67,897 - -
Community development - - -
Parks and recreation - - -
Capital outlay - - -
Total expenditures 67,897 - -
Revenue over (under) expenditures (7,399)8,880 6,853
Fund balance - January 1 169,813 92,870 23,780
Fund balance - December 31 $162,414 $101,750 $30,633
112
Statement 21
Brookview
Community Noah Joynes
VOTF HRA General Center Lodging Tax Youth Recreation Total
$ - $ - $560,762 $ - $ - $565,262
6,792 6,017 32,850 1,293 1,071 53,710
- - - - - 40,759
- - - - 3,816 23,555
- - 50 - - 5,596
6,792 6,017 593,662 1,293 4,887 688,882
- - - - - 67,897
- 219 - - - 219
- - 436,028 - 2,456 438,484
- - 45,550 46,770 - 92,320
- 219 481,578 46,770 2,456 598,920
6,792 5,798 112,084 (45,477)2,431 89,962
146,843 127,835 583,625 28,400 25,437 1,198,603
$153,635 $133,633 $695,709 ($17,077)$27,868 $1,288,565
113
CITY OF GOLDEN VALLEY, MINNESOTA
SUBCOMBINING BALANCE SHEET Statement 22
NONMAJOR DEBT SERVICE FUNDS
December 31, 2023
Brookview Douglas Drive
Lease Revenue Reconstruction Hwy 55 West
Bonds Bonds Bonds Total
Assets:
Cash and investments $1,465,760 $316,355 $116,739 $1,898,854
Special assessments receivable - - 119,908 119,908
Total assets $1,465,760 $316,355 $236,647 $2,018,762
Liabilities:
Accounts payable $ - $ - $ - $ -
Deferred inflows of resources:
Unavailable revenue - special assessments - - 119,908 119,908
Fund balance:
Restricted 1,465,760 316,355 116,739 1,898,854
Total liabilities, deferred inflows
of resources, and fund balances $1,465,760 $316,355 $236,647 $2,018,762
114
CITY OF GOLDEN VALLEY, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,Statement 23
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR DEBT SERVICE FUNDS
For The Year Ended December 31, 2023
Brookview Douglas Drive
Lease Revenue Reconstruction Hwy 55 West
Bonds Bonds Bonds Total
Revenue:
Property taxes $1,198,429 $ - $ - $1,198,429
Special assessments - - 37,491 37,491
Franchise taxes - 393,711 - 393,711
Investment income 32,418 - - 32,418
Total revenues 1,230,847 393,711 37,491 1,662,049
Expenditures:
Debt service:
Principal 735,000 245,000 200,000 1,180,000
Interest and fiscal charges 466,126 125,413 29,925 621,464
Total expenditures 1,201,126 370,413 229,925 1,801,464
Revenue over (under) expenditures 29,721 23,298 (192,434)(139,415)
Other financing sources (uses):
Transfers in - - 290,225 290,225
Net change in fund balance 29,721 23,298 97,791 150,810
Fund balance - January 1 1,436,039 293,057 18,948 1,748,044
Fund balance - December 31 $1,465,760 $316,355 $116,739 $1,898,854
115
CITY OF GOLDEN VALLEY, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2023
Cable Park Capital Equipment
Building Improvement Improvement Replacement
Assets:
Cash and investments $2,899,602 $172,537 $889,648 $4,353,305
Delinquent taxes receivable - - - -
Special assessments receivable - - - -
Total assets $2,899,602 $172,537 $889,648 $4,353,305
Liabilities:
Accounts payable ($826) $850 $6,870 $280,502
Due to other funds - - - -
Contracts payable - 14,566 12,255 -
Deposits payable - - - -
Advances from other funds - - - -
Total liabilities (826) 15,416 19,125 280,502
Deferred inflows of resources:
Unavailable revenue - taxes - - - -
Unavailable revenue - special assessments - - - -
Total deferred inflows of resources - - - -
Fund balance:
Restricted - - - -
Assigned 2,900,428 157,121 870,523 4,072,803
Total fund balance 2,900,428 157,121 870,523 4,072,803
Total liabilities, deferred inflows
of resources, and fund balances $2,899,602 $172,537 $889,648 $4,353,305
116
Statement 24
Cornerstone Winnetka /
HRA North Wirth Hwy 55 West Creek Medicine Lake Douglas Drive
Capital Project Tax Increment Tax Increment Tax Increment Tax Increment Improvement Total
$423,238 $29,497 $848,893 $47,856 $2,025,582 $1,062,934 $12,753,092
- - - - 5,875 - 5,875
- 16,713 - - - - 16,713
$423,238 $46,210 $848,893 $47,856 $2,031,457 $1,062,934 $12,775,680
$ - $ - $ - $ - $ - $ - $287,396
- - - - 255,465 - 255,465
- - - - - - 26,821
- 8,686 - - - - 8,686
- - - - 926,861 - 926,861
- 8,686 - - 1,182,326 - 1,505,229
- - - - 5,875 - 5,875
- 16,713 - - - - 16,713
- 16,713 - - 5,875 - 22,588
423,238 20,811 848,893 47,856 843,256 945,019 3,129,073
- - - - - 117,915 8,118,790
423,238 20,811 848,893 47,856 843,256 1,062,934 11,247,863
$423,238 $46,210 $848,893 $47,856 $2,031,457 $1,062,934 $12,775,680
117
CITY OF GOLDEN VALLEY, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2023
Cable Park Capital Equipment
Building Improvement Improvement Replacement
Revenues:
Property taxes $ - $ - $ - $ -
Tax increments - - - -
Special assessments - - - -
Investment income 135,868 6,642 60,475 179,823
Other revenue:
Contributions - - 10,064 -
Miscellaneous 14,329 36,856 258,255 94,365
Total revenues 150,197 43,498 328,794 274,188
Expenditures:
Current:
Community development - - - -
Capital outlay 829,854 480 1,123,640 1,610,966
Debt service:
Interest and fiscal charges - - - -
Total expenditures 829,854 480 1,123,640 1,610,966
Revenue over (under) expenditures (679,657) 43,018 (794,846) (1,336,778)
Other financing sources (uses):
Sale of capital assets - 137 - 369,213
Transfers in 550,000 - 400,000 1,350,000
Transfers out - - - -
Total other financing sources (uses) 550,000 137 400,000 1,719,213
Net change in fund balance (129,657) 43,155 (394,846) 382,435
Fund balance - January 1 3,030,085 113,966 1,265,369 3,690,368
Fund balance - December 31 $2,900,428 $157,121 $870,523 $4,072,803
118
Statement 25
Cornerstone Winnetka /
HRA North Wirth Hwy 55 West Creek Medicine Lake Douglas Drive
Capital Project Tax Increment Tax Increment Tax Increment Tax Increment Improvement Total
$238,212 $ - $ - $ - $ - $ - $238,212
- 28,695 664,788 43,504 848,715 - 1,585,702
- 6,467 - - - - 6,467
1,620 496 32,304 1,368 71,552 46,987 537,135
- - - - - - 10,064
- - - - - - 403,805
239,832 35,658 697,092 44,872 920,267 46,987 2,781,385
207,644 29,236 343,624 52,575 - - 633,079
- - - - - - 3,564,940
- - - - 48,033 - 48,033
207,644 29,236 343,624 52,575 48,033 - 4,246,052
32,188 6,422 353,468 (7,703) 872,234 46,987 (1,464,667)
- - - - - - 369,350
315,000 - - - - - 2,615,000
- - (290,225) - - - (290,225)
315,000 - (290,225) - - - 2,694,125
347,188 6,422 63,243 (7,703) 872,234 46,987 1,229,458
76,050 14,389 785,650 55,559 (28,978) 1,015,947 10,018,405
$423,238 $20,811 $848,893 $47,856 $843,256 $1,062,934 $11,247,863
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120
INTERNAL SERVICE FUNDS
Workers’ Compensation Fund – used to account for the financing of the City’s workers’
compensation benefits.
Payroll Benefits Fund – used to account for the financing 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.
121
CITY OF GOLDEN VALLEY, MINNESOTA
COMBINING STATEMENT OF NET POSITION Statement 26
INTERNAL SERVICE FUNDS
December 31, 2023
Workers' Payroll Vehicle
Compensation Benefits Maintenance Total
Assets:
Current assets:
Cash and cash equivalents $6,469 $1,506,382 $732,231 $2,245,082
Accounts receivable - 4,439 - 4,439
Inventory - - 144,121 144,121
Total current assets 6,469 1,510,821 876,352 2,393,642
Noncurrent assets:
Net pension asset - fire relief - 1,341,828 - 1,341,828
Capital assets:
Machinery and equipment - - 263,971 263,971
Less accumulated depreciation - - (251,540) (251,540)
Capital assets, net - - 12,431 12,431
Total noncurrent assets - 1,341,828 12,431 1,354,259
Total assets 6,469 2,852,649 888,783 3,747,901
Deferred outflows of resources:
Related to pensions - PERA - 7,892,125 - 7,892,125
Related to pensions - fire relief - 932,946 - 932,946
Related to OPEB - 1,643,363 - 1,643,363
Total deferred outflows of resources - 10,468,434 - 10,468,434
Liabilities:
Current liabilities:
Accounts payable - 3,131 32,766 35,897
Due to other governmental units - - 108 108
Deposits payable - 18,873 - 18,873
Compensated absences payable - current - 1,334,855 - 1,334,855
Other post-employment benefits - current - 171,959 - 171,959
Total current liabilities - 1,528,818 32,874 1,561,692
Noncurrent liabilities:
Compensated absences payable - noncurrent - 226,462 - 226,462
Other post-employment benefits - noncurrent - 2,494,264 - 2,494,264
Net pension liability - PERA - 10,981,155 - 10,981,155
Total current liabilities - 13,701,881 - 13,701,881
Total liabilities - 15,230,699 32,874 15,263,573
Deferred inflows of resources:
Related to pensions - PERA - 8,712,568 - 8,712,568
Related to pensions - fire relief - 480,707 - 480,707
Related to OPEB - 1,142,137 - 1,142,137
Total deferred inflows of resources - 10,335,412 - 10,335,412
Net position:
Investment in capital assets - - 12,431 12,431
Restricted for pensions - fire relief - 1,341,828 - 1,341,828
Unrestricted 6,469 (13,586,856) 843,478 (12,736,909)
Total net position $6,469 ($12,245,028) $855,909 ($11,382,650)
122
CITY OF GOLDEN VALLEY, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 27
CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
For The Year Ended December 31, 2023
Workers' Payroll Vehicle
Compensation Benefits Maintenance Total
Operating revenue:
Charges to other funds $925,000 $6,719,547 $761,847 $8,406,394
Payroll benefits charged to employees - 1,863,804 - 1,863,804
Total operating revenue 925,000 8,583,351 761,847 10,270,198
Operating expenses:
Workers’ compensation charges 957,143 - - 957,143
Payroll benefits charges - 11,144,528 - 11,144,528
Vehicle maintenance operations - - 529,540 529,540
Depreciation - - 2,579 2,579
Total operating expenses 957,143 11,144,528 532,119 12,633,790
Operating income (loss) (32,143) (2,561,177) 229,728 (2,363,592)
Nonoperating revenue:
Intergovernmental revenue - 438,120 - 438,120
Investment income - 113,091 26,322 139,413
Other income 7,663 11,924 - 19,587
Total nonoperating revenue 7,663 563,135 26,322 597,120
Change in net position (24,480) (1,998,042) 256,050 (1,766,472)
Net position - January 1 30,949 (10,246,986) 599,859 (9,616,178)
Net position - December 31 $6,469 ($12,245,028) $855,909 ($11,382,650)
123
CITY OF GOLDEN VALLEY, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS Statement 28
INTERNAL SERVICE FUNDS
For The Year Ended December 31, 2023
Workers' Payroll Vehicle
Compensation Benefits Maintenance Total
Cash flows from operating activities:
Receipts from customers and users $ - $6,731,471 $ - $6,731,471
Receipts from interfund services provided 932,663 1,865,839 761,847 3,560,349
Payments to suppliers/service providers (957,143) (6,992,431) (149,593) (8,099,167)
Payments to employees - (2,978,047) (389,566) (3,367,613)
Net cash flows from operating activities (24,480) (1,373,168) 222,688 (1,174,960)
Cash flows from noncapital financing activities:
Intergovernmental revenue - 438,120 - 438,120
Cash flows from investing activities:
Interest received on investments - 113,091 26,322 139,413
Net increase (decrease) in cash and cash equivalents (24,480) (821,957) 249,010 (597,427)
Cash and cash equivalents - January 1 30,949 2,328,339 483,221 2,842,509
Cash and cash equivalents - December 31 $6,469 $1,506,382 $732,231 $2,245,082
Reconciliation of operating income (loss) to net
cash flows from operating activities:
Operating income (loss) (32,143) (2,561,177) 229,728 (2,363,592)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Depreciation - - 2,579 2,579
Other income 7,663 11,924 - 19,587
Changes in assets, liabilities, deferred
outflows and deferred inflows:
Accounts receivable - 2,035 - 2,035
Inventory - - (30,893) (30,893)
Net pension asset - fire relief - 1,786,202 - 1,786,202
Deferred outflows of resources - 3,164,953 - 3,164,953
Accounts payable - 2,645 21,295 23,940
Due to other governmental units - - (21) (21)
Deposits payable - (3,005) - (3,005)
Compensated absences payable - (48,165) - (48,165)
Other post-employment benefits - (379,216) - (379,216)
Net pension liability - PERA - (10,219,307) - (10,219,307)
Deferred inflows of resources - 6,869,943 - 6,869,943
Total adjustments 7,663 1,188,009 (7,040) 1,188,632
Net cash flows from operating activities ($24,480) ($1,373,168) $222,688 ($1,174,960)
Noncash investing, capital and financing activities: none
124
IV. STATISTICAL SECTION (UNAUDITED)
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126
Table
Number
Contents:
Financial Trends Tables 1 - 4
Revenue Capacity Tables 5 - 9
Debt Capacity Tables 10 - 14
Demographic and Economic Information Tables 15 - 16
Operating Indicators Tables 17 - 19
Source:
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.
Unless otherwise noted, the information in these schedules is derived from the ACFR for the relevant year.
127
CITY OF GOLDEN VALLEY, MINNESOTA
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2014 2015 2016 2017
Governmental activities
Net investment in capital assets $21,499,939 $24,816,606 $23,527,470 $24,239,358
Restricted 29,553,484 17,942,353 18,567,757 21,342,170
Unrestricted 14,349,901 15,401,264 12,900,989 14,755,485
Total governmental activities net position 65,403,324 58,160,223 54,996,216 60,337,013
Business-type activities
Net investment in capital assets 29,588,257 30,101,294 31,809,835 35,854,260
Unrestricted 16,164,578 14,010,619 17,561,589 16,068,264
Total business-type activities net position 45,752,835 44,111,913 49,371,424 51,922,524
Primary government
Net investment in capital assets 51,088,196 54,917,900 55,337,305 60,093,618
Restricted 29,553,484 17,942,353 18,567,757 21,342,170
Unrestricted 30,514,479 29,411,883 30,462,578 30,823,749
Total primary government net position $111,156,159 $102,272,136 $104,367,640 $112,259,537
Note 1:
Note 2:
Fiscal Year
The City implemented GASB Statement No. 68 in 2015, resulting in a restatement of beginning net position for the effects
The City implemented GASB Statement No. 75 in 2018, resulting in a restatement of beginning net position for the effects
128
Table 1
2018 2019 2020 2021 2022 2023
$27,973,471 $30,178,374 $28,994,273 $32,036,524 $33,605,654 $43,773,412
24,401,665 25,785,567 26,738,440 29,277,763 31,050,961 30,382,206
11,015,315 13,001,567 18,192,074 19,676,353 20,618,692 31,076,725
63,390,451 68,965,508 73,924,787 80,990,640 85,275,307 105,232,343
36,950,518 39,110,394 40,380,232 40,749,737 45,675,680 56,948,218
19,689,949 23,980,781 28,238,723 32,328,662 30,587,263 26,901,700
56,640,467 63,091,175 68,618,955 73,078,399 76,262,943 83,849,918
64,923,989 69,288,768 69,374,505 72,786,261 79,281,334 100,721,630
24,401,665 25,785,567 26,738,440 29,277,763 31,050,961 30,382,206
30,705,264 36,982,348 46,430,797 52,005,015 51,205,955 57,978,425
$120,030,918 $132,056,683 $142,543,742 $154,069,039 $161,538,250 $189,082,261
Fiscal Year
129
CITY OF GOLDEN VALLEY, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2014 2015 2016 2017
Expenses
Governmental activities
General government $3,066,025 $11,327,689 $4,182,777 $3,260,989
Public safety 6,831,136 6,907,661 8,213,351 8,128,614
Community development 11,396,748 13,448,443 11,274,790 11,539,091
Public works - - - -
Parks and recreation 1,545,616 1,486,218 1,736,619 2,205,615
Interest and fiscal charges 2,456,490 2,066,076 2,172,554 2,321,780
Total governmental activities expenses 25,296,015 35,236,087 27,580,091 27,456,089
Business-type activities
Water and sewer 9,867,531 9,867,731 8,327,113 8,395,036
Storm sewer 1,944,935 1,795,260 1,685,494 2,526,607
Golf course 1,693,028 1,848,745 2,172,621 2,348,327
Motor vehicle licensing 326,201 349,019 401,363 405,407
Recycling 393,280 392,239 407,664 389,472
Total business-type activities expenses 14,224,975 14,252,994 12,994,255 14,064,849
Total primary government expenses 39,520,990 49,489,081 40,574,346 41,520,938
Program revenues
Governmental activities
Charges for services
General government $276,782 $263,205 $223,237 $238,339
Public safety 1,837,076 1,985,746 2,155,832 3,460,736
Physical development 342,809 415,395 400,351 565,550
Public works - - - -
Parks and recreation 534,821 594,130 489,959 443,632
Operating grants and contributions 538,956 600,264 643,970 1,444,260
Capital grants and contributions 2,028,250 6,377,610 1,578,699 2,689,043
Total governmental activities program
revenues 5,558,694 10,236,350 5,492,048 8,841,560
Business-type activities
Charges for services
Water and sewer 7,751,250 8,266,107 8,814,629 9,574,647
Storm sewer 2,278,128 2,281,125 2,241,536 2,328,336
Golf course 1,543,151 2,071,141 2,106,472 2,059,405
Motor vehicle licensing 347,382 395,718 457,275 453,215
Recycling 323,184 331,630 378,934 389,894
Operating grants and contributions 701,605 209,831 167,557 966,871
Capital grants and contributions - - 1,561,135 1,227,470
Total business-type activities program
revenues 12,944,700 13,555,552 15,727,538 16,999,838
Total primary government program revenues 18,503,394 23,791,902 21,219,586 25,841,398
Fiscal Year
130
Table 2
Page 1 of 2
2018 2019 2020 2021 2022 2023
$3,633,644 $3,645,284 $4,169,858 $3,788,382 $5,359,991 $6,273,466
7,979,009 8,611,294 8,870,757 8,089,691 8,919,678 9,032,209
12,019,371 2,102,527 2,157,872 1,903,327 3,014,245 3,965,397
- 9,226,210 9,716,950 10,477,892 11,003,765 11,820,506
2,710,862 2,470,334 2,033,540 2,067,373 2,764,425 2,393,395
1,947,173 1,907,064 1,697,077 1,587,120 1,608,289 1,569,310
28,290,059 27,962,713 28,646,054 27,913,785 32,670,393 35,054,283
9,374,281 8,863,414 9,211,358 9,643,763 10,222,237 10,438,423
1,861,392 2,331,381 2,217,110 1,968,509 2,270,408 2,576,983
3,235,267 3,163,981 2,741,444 3,185,361 4,096,568 4,347,256
399,060 410,430 462,777 443,418 573,795 558,036
408,286 477,286 504,119 526,822 1,059,807 1,090,053
15,278,286 15,246,492 15,136,808 15,767,873 18,222,815 19,010,751
43,568,345 43,209,205 43,782,862 43,681,658 50,893,208 54,065,034
$267,543 $209,369 $225,998 $206,956 $208,323 $1,203,680
2,132,083 537,505 355,245 295,902 253,437 280,663
663,328 1,621,151 1,230,765 1,504,988 1,734,969 2,972,396
- 348,830 410,814 315,753 366,854 853,368
981,624 920,139 273,995 353,199 774,513 1,169,176
1,261,435 724,609 617,891 888,261 871,950 1,977,073
3,140,938 2,791,326 733,444 3,478,561 3,698,737 9,813,055
8,446,951 7,152,929 3,848,152 7,043,620 7,908,783 18,269,411
10,482,578 10,022,356 10,621,632 11,203,708 11,802,888 13,132,137
2,446,828 2,480,095 2,559,800 2,592,294 2,775,129 2,954,818
2,956,984 3,205,252 2,914,216 3,927,131 4,376,050 4,904,061
435,698 477,523 256,748 317,229 418,035 448,001
391,131 408,058 439,160 501,335 1,040,416 1,087,857
395,134 188,765 66,990 34,261 388,508 166,562
398,387 2,795,362 1,605,931 - 215,747 1,027,160
17,506,740 19,577,411 18,464,477 18,575,958 21,016,773 23,720,596
25,953,691 26,730,340 22,312,629 25,619,578 28,925,556 41,990,007
Fiscal Year
131
CITY OF GOLDEN VALLEY, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2014 2015 2016 2017
Net (expense) revenue
Governmental activities (19,737,321) (24,999,737) (22,088,043) (18,614,529)
Business-type activities (1,280,275) (697,442) 2,733,283 2,934,989
Total primary government net expense (21,017,596) (25,697,179) (19,354,760) (15,679,540)
General revenues and other changes in net position
Governmental activities
Property taxes 22,616,003 21,934,817 19,473,750 21,419,195
Franchise taxes 1,048,227 1,028,368 402,017 687,773
Unrestricted grants and contributions - - - -
Other general revenues 286,108 372,590 347,543 291,837
Investment earnings (charges) 347,197 221,237 313,888 522,746
Gain on disposal of capital assets 71,227 18,337 56,838 3,775
Transfers 100,000 100,000 (1,670,000) 1,030,000
Total governmental activities 24,468,762 23,675,349 18,924,036 23,955,326
Business-type activities
Franchise taxes - - 700,000 400,000
Investment earnings (charges) 142,866 122,591 156,228 246,111
Gain on disposal of capital assets - - - -
Transfers (100,000) (100,000) 1,670,000 (1,030,000)
Total business-type activities 42,866 22,591 2,526,228 (383,889)
Total primary government 24,511,628 23,697,940 21,450,264 23,571,437
Changes in net position
Governmental activities 4,731,441 (1,324,388) (3,164,007) 5,340,797
Business-type activities (1,237,409) (674,851) 5,259,511 2,551,100
Total primary government $3,494,032 ($1,999,239) $2,095,504 $7,891,897
Note:
Fiscal Year
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.
132
Table 2
Page 2 of 2
2018 2019 2020 2021 2022 2023
(19,843,108) (20,809,784) (24,797,902) (20,870,165) (24,761,610) (16,784,872)
2,228,454 4,330,919 3,327,669 2,808,085 2,793,958 4,709,845
(17,614,654) (16,478,865) (21,470,233) (18,062,080) (21,967,652) (12,075,027)
22,825,055 24,399,021 26,593,034 27,352,013 29,565,166 32,914,290
836,780 719,131 750,959 772,266 796,783 963,209
- - 1,693,378 16,398 239,785 113,750
264,266 165,936 122,994 80,706 114,781 -
788,823 1,032,727 788,401 (204,549) (1,789,925) 2,669,882
80,997 101,526 11,876 121,369 89,687 54,705
(1,149,855) (33,500) (203,461) (202,185) 30,000 26,072
23,646,066 26,384,841 29,757,181 27,936,018 29,046,277 36,741,908
1,000,000 1,500,000 1,500,000 1,500,000 1,500,000 1,319,569
339,634 586,289 496,650 (50,826) (1,079,414) 1,450,004
- - - - - 133,629
1,149,855 33,500 203,461 202,185 (30,000) (26,072)
2,489,489 2,119,789 2,200,111 1,651,359 390,586 2,877,130
26,135,555 28,504,630 31,957,292 29,587,377 29,436,863 39,619,038
3,802,958 5,575,057 4,959,279 7,065,853 4,284,667 19,957,036
4,717,943 6,450,708 5,527,780 4,459,444 3,184,544 7,586,975
$8,520,901 $12,025,765 $10,487,059 $11,525,297 $7,469,211 $27,544,011
Fiscal Year
133
CITY OF GOLDEN VALLEY, MINNESOTA
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2014 2015 2016 2017
General Fund
Nonspendable $1,256 $7,617 $18,822 $3,610
Restricted - - - -
Committed - - - -
Assigned 1,500,000 2,000,000 2,000,000 2,000,000
Unassigned 8,640,108 8,719,447 8,954,274 10,400,239
Total General Fund $10,141,364 $10,727,064 $10,973,096 $12,403,849
All other governmental funds
Nonspendable $ - $285 $ - $ -
Restricted 47,308,126 33,222,298 44,457,090 32,513,969
Committed 743,633 202,270 208,846 213,524
Assigned 7,224,030 11,357,732 11,702,718 13,355,185
Unassigned, reported in
Capital project funds - (41,288) (1,023,153) (1,066,647)
Total all other governmental funds $55,275,789 $44,741,297 $55,345,501 $45,016,031
Fiscal Year
134
Table 3
2018 2019 2020 2021 2022 2023
$ - $14,029 $23,010 $26,653 $8,976 $17,127
- - - - - 977,343
- 111,960 111,960 - - -
2,045,000 3,350,000 4,350,000 2,269,499 2,612,910 2,612,910
11,014,502 11,676,100 13,192,079 13,258,756 14,711,433 19,141,728
$13,059,502 $15,152,089 $17,677,049 $15,554,908 $17,333,319 $22,749,108
$ - $ - $ - $ - $58,951 $ -
26,311,344 21,568,499 22,904,513 22,970,466 24,286,876 29,161,319
213,624 212,939 127,269 161,790 169,113 162,414
10,183,554 9,910,623 11,513,179 13,215,884 12,363,189 12,737,149
(2,164,862) (1,825,910) (1,271,708) (746,918) (28,978) (17,077)
$34,543,660 $29,866,151 $33,273,253 $35,601,222 $36,849,151 $42,043,805
Fiscal Year
135
CITY OF GOLDEN VALLEY, MINNESOTA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2014 2015 2016 2017
Revenues
Taxes $17,334,800 $21,874,958 $19,539,516 $21,388,915
Tax increments 5,184,262 23,439 24,727 20,920
Special assessments 1,217,205 1,060,839 806,891 1,106,697
Franchise taxes 1,048,227 1,028,368 402,017 687,773
Licenses and permits 1,479,304 1,626,113 1,859,208 3,141,910
Intergovernmental 1,410,427 4,717,848 1,554,964 2,181,104
Charges for services 1,718,592 1,607,143 1,544,898 1,577,194
Fines and forfeits 310,318 354,066 283,483 400,233
Investment income (charges) 328,554 209,866 302,230 503,416
Other revenue 716,133 879,395 727,904 679,913
Total revenues 30,747,822 33,382,035 27,045,838 31,688,075
Expenditures
General government 1,310,190 9,340,987 1,299,871 1,325,205
Administrative services 1,682,784 1,712,183 1,812,545 1,860,542
Casualty insurance 240,918 169,213 154,842 225,617
Public safety 6,156,396 6,116,997 6,563,064 6,937,709
Community development 5,051,206 4,790,646 5,188,881 5,152,616
Public works - - - -
Parks and recreation 1,028,809 1,092,198 1,078,032 1,192,679
Capital outlay – not capitalized 1,779,425 3,943,954 1,262,482 1,501,845
Construction/acquisition of capital assets 5,043,790 8,312,307 10,192,081 22,281,092
Debt service
Principal retirement 8,720,000 9,320,000 4,960,000 4,905,000
Interest and fiscal charges 2,695,660 2,405,710 2,305,673 2,460,593
Total expenditures 33,709,178 47,204,195 34,817,471 47,842,898
Excess of revenues
over (under) expenditures (2,961,356) (13,822,160) (7,771,633) (16,154,823)
Other financing sources (uses)
Sale of capital assets 222,432 53,442 80,627 143,274
Bonds issued 3,085,000 2,670,000 25,130,000 5,330,000
Refunding bonds issued 3,950,000 6,600,000 - 4,100,000
Premiums on debt issues 274,684 164,926 1,026,242 537,832
Payments to refunded bond escrow agent - (5,715,000) (6,945,000) (3,885,000)
Transfers in 6,545,710 5,742,041 2,551,950 4,144,838
Transfers (out) (6,445,710) (5,642,041) (3,221,950) (3,114,838)
Total other financing sources (uses) 7,632,116 3,873,368 18,621,869 7,256,106
Net change in fund balances $4,670,760 ($9,948,792) $10,850,236 ($8,898,717)
Debt service as a percentage of noncapital
expenditures 39.8% 30.1% 29.5% 28.8%
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.
Fiscal Year
136
Table 4
2018 2019 2020 2021 2022 2023
$22,175,461 $23,266,074 $24,836,506 $26,146,076 $28,056,828 30,315,355$
646,505 1,106,201 1,491,663 1,465,148 1,513,965 1,585,702
1,050,049 1,057,652 592,614 774,362 901,054 879,711
836,780 719,131 750,959 772,266 796,783 963,209
1,778,321 1,705,864 1,350,417 1,595,716 1,842,234 3,264,091
3,032,083 1,760,103 2,366,086 821,731 1,666,421 4,725,164
2,070,277 2,160,237 1,210,902 1,433,460 1,891,525 2,463,342
379,708 260,565 148,672 127,096 81,852 101,924
752,246 978,546 747,355 (191,110) (1,678,328) 2,530,469
883,449 528,833 587,356 484,126 1,296,181 697,147
33,604,879 33,543,206 34,082,530 33,428,871 36,368,515 47,526,114
1,362,468 1,404,362 1,779,000 1,780,998 2,231,565 2,403,237
1,963,163 1,967,267 2,213,472 2,308,688 2,424,296 2,809,502
318,934 316,206 318,902 269,420 277,610 341,320
7,048,837 7,312,126 7,817,588 7,621,891 7,621,406 7,899,628
5,738,929 2,053,347 2,222,461 2,095,315 2,169,560 3,247,098
- 4,051,707 3,942,738 4,499,814 4,946,265 5,382,249
1,496,138 1,454,209 1,170,725 1,241,033 1,641,813 1,679,948
2,025,000 365,612 589,793 1,044,253 1,405,433 528,192
11,046,962 7,263,621 1,617,652 6,734,018 8,134,653 10,190,495
5,715,000 5,670,000 5,100,000 7,390,000 5,065,000 5,340,000
2,426,163 2,174,818 1,942,181 1,877,201 1,781,313 1,747,303
39,141,594 34,033,275 28,714,512 36,862,631 37,698,914 41,568,972
(5,536,715) (490,069) 5,368,018 (3,433,760) (1,330,399) 5,957,142
239,795 200,217 147,736 263,333 192,330 369,350
2,950,000 1,770,000 - 3,420,000 3,895,000 3,955,000
- - - - - -
31,117 188,430 - 158,440 239,409 298,951
(6,345,000) (4,220,000) - - - -
5,276,409 2,757,128 3,357,604 6,427,360 2,805,000 3,835,225
(6,432,324) (2,790,628) (2,941,296) (6,629,545) (2,775,000) (3,805,225)
(4,280,003) (2,094,853) 564,044 3,639,588 4,356,739 4,653,301
($9,816,718) ($2,584,922) $5,932,062 $205,828 $3,026,340 10,610,443$
29.0% 29.3% 26.0% 30.8% 23.2% 22.6%
Fiscal Year
137
CITY OF GOLDEN VALLEY, MINNESOTA
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE Table 5
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Ad Valorem
Fiscal Year Property Taxes Tax Increments Franchise Taxes Total
2014 $17,431,741 $5,184,262 $1,048,227 $23,664,230
2015 21,911,378 23,439 1,028,368 22,963,185
2016 19,449,023 24,727 402,017 19,875,767
2017 21,398,275 20,920 687,773 22,106,968
2018 22,178,550 646,505 836,780 23,661,835
2019 23,292,820 1,106,201 719,131 25,118,152
2020 25,101,371 1,491,663 750,959 27,343,993
2021 25,886,865 1,465,148 772,266 28,124,279
2022 28,051,201 1,513,965 796,783 30,361,949
2023 30,315,355 1,585,702 963,209 32,864,266
138
CITY OF GOLDEN VALLEY, MINNESOTA
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Table 6
Last Ten Fiscal Years
Assessed
Fiscal Total City Tax Value as a
Disparities Decrease From Applied Capacity Estimated Actual Percentage of
Real Property Personal Property Contribution Tax Increments Tax Capacity Rate Applied Taxable Value Actual Value
$35,543,286 $413,722 ($5,888,222) ($3,352,209) $26,716,577 61.84 $2,719,232,050 0.98%
37,743,877 423,575 (5,994,022) (20,214) 32,153,216 54.63 2,934,477,667 1.10%
40,233,072 433,290 (5,880,892) (21,325) 34,764,145 54.45 3,097,563,064 1.12%
42,748,968 472,938 (6,636,623) (21,692) 36,563,591 56.11 3,271,878,353 1.12%
45,436,776 505,617 (6,748,649) (472,613) 38,721,131 55.15 3,523,108,955 1.10%
49,442,493 525,094 (7,107,691) (834,500) 42,025,396 53.78 3,842,319,483 1.09%
53,111,161 566,562 (7,678,701) (1,151,026) 44,847,996 53.40 4,136,243,370 1.08%
55,644,963 604,764 (7,680,860) (1,184,458) 47,384,409 52.44 4,325,815,780 1.10%
58,262,162 310,598 (8,480,624) (1,184,278) 48,907,858 54.31 4,540,229,944 1.08%
64,745,272 361,559 (8,488,924) (1,318,130) 55,299,777 53.30 5,125,471,285 1.08%
(1)
Source:
2016
2015
2017
2018
2020
2019
2022
2023
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
Tax Capacities (1)
in Fiscal Year
Levy Collectible
2021
2014
139
CITY OF GOLDEN VALLEY, MINNESOTA
PROPERTY TAX RATE (1)Table 7
DIRECT AND OVERLAPPING (2) GOVERNMENTS
Last Ten Fiscal Years
Total Direct
and
Hennepin ISD No. 281 Special Overlapping
General Levy Debt Levy City Total County Robbinsdale Districts Rates
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
42.88 10.42 53.30 34.81 24.12 7.93 120.16
Total Direct
and
Hennepin ISD No. 270 Special Overlapping
General Levy Debt Levy City Total County Hopkins Districts Rates
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
42.88 10.42 53.30 34.81 24.98 7.93 121.02
(1)
(2)
Source:Hennepin County
2019
2015
For the City/ISD No. 270 – Hopkins
Direct Rates
Year
2018
2017
2016
2014
Year
For the City/ISD No. 281 – Robbinsdale
Overlapping RatesDirect Rates
2023
2023
2018
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).
2014
2015
2016
2017
Overlapping Rates
2021
2021
2022
2022
2019
2020
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.
2020
140
CITY OF GOLDEN VALLEY, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS Table 8
Current Year and Nine Years Ago
Percentage of Percentage of
Net Tax Applied Tax Net Tax Applied Tax
Capacity Rank Capacity Capacity Rank Capacity
General Mills, Inc.$2,123,800 1 3.8% $1,817,220 1 6.8%
Allianz Life Insurance Company 1,721,650 2 3.1% 1,281,430 2 4.8%
Colonnade Ridge LLC 1,390,770 3 2.5% - - -
394 Associates LLC 1,040,363 4 1.9% - - -
SFI Ltd Partnership 823,863 5 1.5% - - -
ALTUS Golden Hills LLC 821,250 6 1.5% - - -
Liberty Xing Investment Partners 595,550 7 1.1% - - -
IRET Properties LP 561,713 8 1.0% - - -
PC Hello, LLC 559,150 9 1.0% - - -
North Wirth Associates 554,010 10 1.0% 221,610 10 0.8%
Golden Jack, LLC - - - 571,530 4 2.1%
Menards, Incorporated - - - 495,750 5 1.9%
Honeywell Incorporated - - - 274,750 7 1.0%
TCA Real Estate, LLC - - - 240,210 8 0.9%
The Luther Company, LLP - - - 229,330 9 0.9%
DRA Advisors, LLC - - 1,048,170 3 3.9%
United Health Care - - 402,130 6 1.5%
Total $10,192,119 18.4% $6,582,130 24.6%
Source: Hennepin County
Taxpayer
2023 2014
141
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142
CITY OF GOLDEN VALLEY, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS (1)Table 9
Last Ten Fiscal Years
Total Tax Collections in
Levy for Subsequent Percentage
Fiscal Year (2) Amount (3) of Levy Years (4) Amount of Levy
$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% 55,775 22,353,082 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% 276,551 25,060,289 99.9%
26,153,341 25,964,849 99.3% 164,778 26,129,627 99.9%
28,098,031 28,000,109 99.7% 62,657 28,062,766 99.9%
31,087,048 30,820,148 99.1% - 30,820,148 99.1%
(1)
(2)
(3)
(4)
2022
2023
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.
Total Collections to Date
2018
2016
Ended
2014
2017
2015
December 31,
Fiscal Year
Percentage
Fiscal Year of the Levy
2020
2019
Collected Within the
2021
143
CITY OF GOLDEN VALLEY, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Special Street Certificates Tax Tax Lease
Assessment Reconstruction of Abatement Increment State Aid Revenue
Bonds Bonds Indebtedness Bonds Bonds Street Bonds Bonds
$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
36,230,000 4,230,000 - - 665,000 680,000 13,480,000
(1)
Note:Details regarding the City’s outstanding debt can be found in the notes to basic financial statements.
Fiscal Year
2018
Governmental Activities
2014
2015
2016
2017
2019
2020
2021
2022
2023
See the Schedule of Demographic and Economic Statistics for personal income and population data.
144
Table 10
Net Net Percentage
Premiums Utility Premiums Total Primary of Personal
(Discounts) Total Revenue Bonds (Discounts) Total Government Income (1) Per Capita (1)
$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
1,945,637 57,230,637 2,090,000 27,346 2,117,346 59,347,983 2.96% 2,661
Business-Type Activities
145
CITY OF GOLDEN VALLEY, MINNESOTA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING Table 11
Last Ten Fiscal Years
Less Amounts Percentage of
General Restricted for Estimated Actual
Obligation Repaying Taxable Value
Bonds (1) Principal (2) Total of Property (3) Per Capita (4)
$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
57,230,637 12,791,990 44,438,647 0.87% 1,992
(1)
(2)
(3)
(4)
Note:
2023
2022
2016
Fiscal Year
2015
2014
2017
2018
2019
2020
2021
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.
See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property for property value data.
Population data can be found in the Schedule of Demographic and Economic Statistics.
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.
146
Table 12
Estimated Estimated
Debt Percentage Share of
Outstanding (1) Applicable (1) Overlapping Debt
Direct debt
City of Golden Valley $59,347,983 100.00% $59,347,983
Overlapping debt
ISD No. 270, Hopkins 143,190,000 18.74% 26,837,832
ISD No. 281, Robbinsdale 207,755,000 16.23% 33,720,407
ISD No. 283, St. Louis Park 247,260,000 0.02% 48,915
Hennepin County 1,423,815,000 1.64% 23,344,993
Hennepin Suburban Park District 59,870,000 2.53% 1,514,480
Hennepin Regional Railroad Authority 81,665,000 2.18% 1,781,756
Metropolitan Council 1,694,829,000 0.06% 986,954
Total overlapping debt $3,858,384,000 88,235,337
Total direct and overlapping debt $147,583,320
CITY OF GOLDEN VALLEY, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
December 31, 2023
Governmental Unit
(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.
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule
estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses
of the City. This process recognizes that, when considering the City’s ability to issue and repay long-term debt, the entire
debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every
taxpayer is a resident and, therefore, responsible for repaying the debt of each overlapping government.
Source: Hennepin County Taxpayer Services
147
CITY OF GOLDEN VALLEY, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
2014 2015 2016 2017
Debt limit $81,576,962 $88,034,330 $92,926,892 $98,156,351
Total net debt applicable to the limit 2,833,906 1,712,141 7,032,733 6,800,074
Legal debt margin $78,743,056 $86,322,189 $85,894,159 $91,356,277
Total net debt applicable to the limit
as a percentage of the debt limit 3.47% 1.94% 7.57% 6.93%
Note:
Fiscal Year
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.
148
Table 13
2018 2019 2020 2021 2022 2023
$105,693,269 $115,269,584 $124,087,301 $129,774,473 $136,206,898 $153,764,139
5,732,558 4,630,783 4,385,269 4,417,473 4,181,943 3,913,645
$99,960,711 $110,638,801 $119,702,032 $125,357,000 $132,024,955 $149,850,494
5.42% 4.02% 3.53% 3.40% 3.07% 2.55%
Market value $5,125,471,285
Debt limit (3% of market value)153,764,139
Total bonded debt $57,375,000
Less
Debt not payable primarily from tax levies
Special assessment bonds 36,230,000
Tax increment bonds 665,000
State aid street bonds 680,000
Lease revenue bonds 13,480,000
Utility revenue bonds 2,090,000
Fund balances available for tax supported debt 316,355
Total net debt applicable to the limit 3,913,645
Legal debt margin $149,850,494
Fiscal Year
Legal Debt Margin Calculation for Fiscal Year 2023
149
CITY OF GOLDEN VALLEY, MINNESOTA
PLEDGED REVENUE COVERAGE
Last Ten Fiscal Years
Less Operating Net Available
Gross Revenue Expenses Revenue Principal Interest
$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
3,515,714 2,651,732 863,982 125,000 54,950
(1)
(2)
(3)
(4)
Note:
Revenue Bonds (1)
2018
2017
2016
2015
2014
2020
2022
2023
Utility revenue bonds, payable from the Storm Sewer Utility Fund.
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.
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.
2021
2019
Fiscal Year
Debt Service
Excludes principal refunded from the proceeds of refunding bond issues.
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.
150
Table 14
Special
Assessment
Coverage Collections Principal (4) Interest Coverage
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%
4.80% 774,153 4,080,000 954,029 0.15%
Special Assessment Bonds
Debt Service
151
CITY OF GOLDEN VALLEY, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS Table 15
Last Ten Fiscal Years
Per Capita
Personal Personal School Unemployment
Population (1) Income (2) Income (3) Enrollment (4) Rate (5)
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%
22,305 2,004,126,555 89,851 2,264 2.2%
Sources:
(1) Metropolitan Council – Regional Statistics and Data except for 2021 – City estimate.
(2)
(3)
(4)
(5)
School districts.-Call Districts
Minnesota Department of Economic Security – Hennepin County.
Fiscal
Year
2014
2015
2023
2016
2017
2018
2019
2020
2021
2022
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.
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.
152
CITY OF GOLDEN VALLEY, MINNESOTA
PRINCIPAL EMPLOYERS Table 16
Current Year and Nine Years Ago
Percentage Percentage
of Total City of Total City
Employees Rank Employment Employees Rank Employment
General Mills, Inc.3,100 1 9.0% 5,500 1 15.7%
Allianz Life Insurance Company 2,000 2 5.8% 2,096 3 6.0%
Honeywell Incorporated 2,000 3 5.8% 1,350 5 3.8%
Lubrication Technologies 750 4 2.2% - - 0.0%
M.A. Mortenson 575 5 1.7% 2,102 2 6.0%
G.H. Tennant Company 466 6 1.4% 813 6 2.3%
Courage Center 400 7 1.2% 600 7 1.7%
Preferred One 300 8 0.9% 360 9 1.0%
Marsh & McLennan Agency 300 9 0.9% - - 0.0%
Breck School 250 10 0.7% 420 8 1.2%
OptumHealth - - 0.0% 1,700 4 4.8%
Lupient Automobile Group - - 0.0% 325 10 0.9%
Total 10,141 29.5% 15,266 43.4%
Source:
Employer
Metropolitan Council – Regional Statistics and Data
20142023
153
CITY OF GOLDEN VALLEY, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
Last Ten Fiscal Years
2014 2015 2016 2017
Function
General government 23.10 23.50 23.50 23.50
Public safety 47.25 47.25 47.25 47.50
Physical development 30.66 29.66 29.66 29.66
Public works - - - -
Parks and recreation 5.50 5.50 5.50 7.50
Water and sewer 12.34 12.34 12.34 12.34
Storm sewer 1.00 1.00 1.00 1.00
Golf course 7.00 7.00 7.00 8.50
Motor vehicle licensing 4.00 4.00 4.00 4.00
Total 130.85 130.25 130.25 134.00
Note:
Source: Various city departments
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.
Fiscal Year
154
Table 17
2018 2019 2020 2021 2022 2023
24.25 17.00 18.00 19.00 20.00 21.00
47.50 48.50 51.50 50.50 50.00 49.00
29.66 18.00 18.00 18.00 18.50 18.00
- 20.66 20.66 20.66 21.16 22.16
7.50 8.38 8.38 8.38 9.13 9.13
12.34 12.34 12.34 12.34 12.34 12.34
1.00 1.00 1.00 1.00 1.00 3.00
8.50 11.00 11.00 11.00 11.00 12.00
4.00 5.00 5.00 5.00 5.00 5.00
134.75 141.88 145.88 145.88 148.13 151.63
Fiscal Year
155
CITY OF GOLDEN VALLEY, MINNESOTA
OPERATING INDICATORS BY FUNCTION
Last Ten Fiscal Years
2014 2015 2016 2017
Function
905 1,025 1,027 817
38 33 20 29
Citations written 3,488 3,138 2,659 4,761
Fire
631 711 747 649
1.2 1.2 0.5 1.2
Water
New (removed) connections 8 (1)9 46
Water main breaks 30 28 15 11
Average daily consumption
(thousands of gallons)2,213 2,156 2,106 2,171
Source: Various city departments
Street resurfacing (miles)
Adult arrests
Juvenile arrests
Number of calls answered
Highways and streets
Police
Fiscal Year
156
Table 18
2018 2019 2020 2021 2022 2023
906 681 461 244 111 223
41 51 28 4 7 3
3,465 2,180 1,251 708 529 882
643 734 724 651 1,432 2,278
1.3 1.6 - 1.3 3.8 4.4
37 5 - 8 (1)20
22 14 28 36 30 23
2,275 1,849 1,860 2,119 1,955 2,079
Fiscal Year
157
CITY OF GOLDEN VALLEY, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION
Last Ten Fiscal Years
2014 2015 2016 2017
Function
Public safety
Police
Stations 1111
Patrol units 8888
Fire stations 3333
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 9999
Community centers 2222
Water
Connections 7,141 7,149 7,148 7,157
Sewer
Connections 7,179 7,188 7,234 7,205
Source: Various city departments
Fiscal Year
158
Table 19
2018 2019 2020 2021 2022 2023
111111
888888
333333
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
999996
222221
7,203 7,240 7,245 7,245 7,344 7,690
7,249 7,288 7,296 7,299 7,295 7,274
Fiscal Year
159
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160