Comprehensive Annual Financial Report - 2014Comprehensive
Annual Financial Report
For the Fiscal Year December 31, 2014 • Golden Valley, Minnesota
photo by Alyssa Euteneuer, 2014 Views of the Valley
CITY OF GOLDEN VALLEY
HENNEPIN COUNTY, MINNESOTA
Comprehensive Annual Financial Report
for Year Ended
December 31, 2014
Prepared by
Finance Department
Sue Virnig – Finance Director
Sue Watson – Accounting Coordinator
Wanita Williams – Accountant
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Page
INTRODUCTORY SECTION
CITY COUNCIL AND OTHER OFFICIALS i
ORGANIZATIONAL CHART BY DIVISION ii
FINANCE DIRECTOR’S LETTER OF TRANSMITTAL iii–vii
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE
IN FINANCIAL REPORTING viii
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT 1–3
MANAGEMENT’S DISCUSSION AND ANALYSIS 4–15
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Position 16
Statement of Activities 17–18
Fund Financial Statements
Governmental Funds
Balance Sheet 19–20
Reconciliation of the Balance Sheet to the Statement of Net Position 21
Statement of Revenue, Expenditures, and Changes in Fund Balances 22–23
Reconciliation of the Statement of Revenue, Expenditures, and
Changes in Fund Balances to the Statement of Activities 24
Statement of Revenue, Expenditures, and Changes in Fund Balances –
General Fund – Budget and Actual 25
Proprietary Funds
Statement of Net Position 26–29
Statement of Revenue, Expenses, and Changes in Net Position 30–31
Statement of Cash Flows 32–33
Notes to Basic Financial Statements 34–60
REQUIRED SUPPLEMENTARY INFORMATION
Golden Valley Fire Department Relief Association Schedule of Funding Progress 61
City of Golden Valley Other Post-Employment Benefits Plan Schedule of
Funding Progress 61
SUPPLEMENTAL INFORMATION
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Nonmajor Governmental Funds 62
Combining Balance Sheet 63
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances 64
CITY OF GOLDEN VALLEY
HENNEPIN COUNTY, MINNESOTA
Table of Contents
Page
SUPPLEMENTAL INFORMATION (CONTINUED)
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
(CONTINUED)
Nonmajor Governmental Funds (continued)
Nonmajor Special Revenue Funds
Combining Balance Sheet 65
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances 66
Nonmajor Debt Service Funds
Combining Balance Sheet 67
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances 68
Nonmajor Capital Project Funds
Combining Balance Sheet 69–70
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances 71–72
General Fund
Schedule of Revenue – Budget and Actual 73
Schedule of Expenditures – Budget and Actual 74–75
Internal Service Funds 76
Combining Statement of Net Position 77
Combining Statement of Revenue, Expenses, and Changes in Net Position 78
Combining Statement of Cash Flows 79
OTHER CITY INFORMATION
Schedules of Sources and Uses of Public Funds for Tax Increment Financing Districts
Golden Hills No. 1503 80
North Wirth Parkway No. 1505 81
Highway 55 West No. 1506 82
STATISTICAL SECTION (UNAUDITED)83
Net Position by Component 84–85
Changes in Net Position 86–89
Governmental Activities Tax Revenues by Source 90
Fund Balances of Governmental Funds 91–92
Changes in Fund Balances of Governmental Funds 93–94
General Governmental Tax Revenues by Source 95
Assessed Value and Estimated Actual Value of Taxable Property 96–97
Property Tax Rates 98
Principal Property Taxpayers 99
Property Tax Levies and Collections 100
Ratios of Outstanding Debt by Type 101–102
Ratios of General Bonded Debt Outstanding 103
Direct and Overlapping Governmental Activities Debt 104
Legal Debt Margin Information 105–106
Pledged Revenue Coverage 107–108
Demographic and Economic Statistics 109
Principal Employers 110
Full-Time Equivalent City Government Employees by Function 111–112
Operating Indicators by Function 113–114
Capital Asset Statistics by Function 115–116
CITY OF GOLDEN VALLEY
HENNEPIN COUNTY, MINNESOTA
Table of Contents (continued)
INTRODUCTORY SECTION
-i-
Term Expires
Shep Harris Mayor 12/31/2015
Joanie Clausen Councilmember 12/31/2015
Larry Fonnest Councilmember 12/31/2017
Steve Schmidgall Councilmember 12/31/2015
Andy Snope Councilmember 12/31/2017
Thomas Burt City Manager Appointed
Sue Virnig Finance Director Appointed
Best and Flanagan City Attorney Appointed
Springsted, Inc. Bond Consultants Appointed
CITY COUNCIL
CITY OFFICIALS
CITY CONSULTANTS
CITY OF GOLDEN VALLEY
HENNEPIN COUNTY, MINNESOTA
City Council and Other Officials
Year Ended December 31, 2014
Board of Zoning
Appeals
Environmental
Commission
Civil Service
Commission
Human Rights
Commission
Planning
Commission
Human Services
Fund Open Space &
Recreation Commission
Police FirePhysical
DevelopmentPark & RecreationFinance
Recycling
Street
Maintenance
Elections & Voter
Registration
General Services
Golf Operations
Utilities
Maintenance
Park
Maintenance
Accounting Golf Maintenance
Vehicle
Maintenance
Teen Committee
Inspections
Engineering
Recreation
Computer Services
Motor Vehicle
Licensing
Planning
Maintenance
Building
Operations Forestry
Organization Chart
City Council/
HRA
Citizens of
Golden Valley
City Manager
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-iii-
May 20, 2015
Dear Honorable Mayor, City Council, City Manager, and residents of Golden Valley:
I am pleased to present the comprehensive annual financial report (CAFR) of the City of Golden Valley,
Minnesota (the City) for the fiscal year ended December 31, 2014. Responsibility for both the accuracy of
the data and the completeness and fairness of the presentation, including all disclosures, rests with the
City. To the best of our knowledge and belief, the enclosed data is accurate, in all material respects, and is
reported in a manner designed to present fairly the financial position and results of operations of the
various funds of the City. All disclosures necessary to enable the reader to gain an understanding of the
City’s financial activities have been included.
The City’s financial statements have been audited by Malloy, Montague, Karnowski, Radosevich & Co.,
P.A., a firm of licensed certified public accountants. The goal of the independent audit was to provide
reasonable assurance that the financial statements of the City for the fiscal year ended December 31, 2014
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 financial statements for the fiscal year ended
December 31, 2014 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 CAFR is a requirement of state law. Also, the CAFR 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 CAFR includes all agencies and entities for which the City is financially accountable, including the
Housing and Redevelopment Authority (HRA), which is reported as a blended component unit of the
City.
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-iv-
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 20,642. 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 and commander. Fire
services are provided by 50 paid on-call firefighters, fire chief, deputy fire chief, education specialist, and
two code enforcement officers. The City has a Class 4 insurance rating.
The 2014–2015 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 and 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 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.
Beginning in 2012, the state of Minnesota changed the Market Value Homestead Credit (MVHC) to
Homestead Market Value Exclusion (HMVE). Instead of replacing a portion of the City’s levy with a
state paid tax credit, a portion of homestead property market value is excluded from the tax base.
Although the City lost market value through this change, it is no longer subject to losing part of its levy
due to the state of Minnesota not paying its MVHC. The exclusion shifted the tax responsibility to higher
valued homes and commercial properties.
In 2014, an improving economy resulted in less tax delinquencies and higher building permit revenues.
The increase in building permits was primarily for improvements to commercial properties, with a small
increase in permits for residential properties. With this surge, the City will still remain conservative in the
next few years while waiting for the residential market to come back.
Residential and industrial market values declined and commercial properties increased in 2014. This
limited the City’s ability to raise taxes to fund operations and debt service, since taxpayers do not
differentiate between increases in property taxes caused by an increase in the levy and increases caused
by the shift in tax burden. In 2015, increasing property values, along with the Golden Hills Tax Increment
District closing, will enhance the City’s tax base.
Retirements and cost containment helped keep total overall expenditures under budget in 2014.
The City will once again take a conservative approach for the 2015 budget year.
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The following table shows the City’s building activity for the last 10 years:
Year Number Value
2005 994 121,188,696$
2006 880 57,701,882$
2007 1410 61,103,910$
2008 3556 67,452,357$
2009 1310 29,321,560$
2010 1109 28,800,511$
2011 1172 51,419,406$
2012 798 53,201,489$
2013 984 65,531,059$
2014 915 78,090,465$
Total Permits
The following major projects were started or completed throughout the City in 2014:
1 General Mills Boulevard (General Mills) – A permit with a construction value of $415,000 was
issued to install turnstiles at the employee and visitors entrances to General Mills Headquarters
Building. In addition, a permit was issued to remodel Level 1 West Main with a value of $3,050,000.
Total construction value at General Mills was $3,465,000.
201 General Mills Boulevard (General Mills) – A permit was issued for the remodel of an entire
two-story building with a permit value of $4,350,000. Total construction value at General Mills was
$7,815,000.
7475 Country Club Drive (Golden Valley Senior Living) – In December 2014, a permit was issued
for the foundation of a 50-unit addition to Golden Valley Senior Living with a value of $1,000,000. In
January 2015, a permit was issued for the main structure of the addition with a value of $4,000,000.
The total value of the Golden Valley Senior Living addition was $5,000,000.
7300 Wayzata Boulevard (Morrie’s Luxury Automotive) – A permit was issued for a new car
dealership featuring Maserati and Bentley automobiles. The permit construction value was $2,911,039.
9595 Wayzata Boulevard (Porsche of Minneapolis) – A permit was issued for a new Porsche
dealership. The permit construction value was $6,687,097.
6051 Golden Hills Drive (Holiday Inn Express) – A permit with a value of $1,500,000 was issued for
an 18-room addition to Holiday Inn Express.
700 Meadow Lane North (M.A. Mortenson) – A permit was issued for the remodel of lower level
office space with a construction value of $1,215,000.
6250 Olson Memorial Highway (Lock-Up Storage) – A permit was issued for construction of a new
rental storage building with a value of $5,119,916.
1985 Douglas Drive (Honeywell) – A permit was issued for a partial roof replacement valued at
$1,031,000.
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710 Mendelssohn Avenue North (Century Link) – A permit was issued for the remodel of tenant
space with a total construction value of $485,000.
4600 Olson Memorial Highway (Room and Board) – A permit was issued for a 45,000 square foot
addition to company headquarters with a total construction value of $4,000,000.
5500 Wayzata Boulevard (Bell Mortgage) – A permit was issued for the remodel of three floors in
The Colonnade Building with a value of $1,800,000.
1109 Zane Avenue North (Shapco Printing) – A permit was issued for the remodel of an existing
building for Shapco Printing which is relocating from Minneapolis with a construction value of
$624,000.
5430 Glenwood Avenue (Meadowbrook School) – The school district purchased a building that was
the Crisis Nursery. The Crisis Nursery Building was remodeled and a link was constructed to the
existing school building. Construction was valued at $1,625,000.
901 Xenia Avenue South (The Arcata) – Construction is being completed and tenants are starting to
occupy the Arcata Apartments. A permit was issued in January 2014 with a value of $20,675,182.
605 Boone Avenue North (TruStone Financial) – A permit was issued for the construction of a credit
union valued at $1,350,000.
Residential Properties – Thirteen new single family homes were constructed in calendar 2014, with a
total permit value of $4,480,187.
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. This amount is higher than the level recommended by the Minnesota Office of the
State Auditor. However, the City 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.
Through its Pavement Management Program, in 1995 the City began reconstructing its streets that did not
meet standards, completing 109 of 120 miles through 2014. The City had planned to construct 2.3 miles
in 2015 but lowered that to 0.71 miles due to the high utility costs.
In 2014, the Council appointed a task force to investigate the needs for replacing Brookview Community
Center. In 2015, further studies will take place to involve the community in the decision.
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.
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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. In 2014, the JWC approved the construction of four wells for an emergency backup system.
The Minnesota Department of Natural Resources has mandated a conservation rate system starting in
January 2010. The directive is for education and awareness with regards to the use of water. The City has
implemented a conservation rate structure in 2010 but it will be evaluated each year to monitor
consumption.
On December 9, 2014, the City began receiving 911 dispatch services from the Hennepin County
Sheriff’s Communications Division. Previously services had been provided by the City of Edina.
AWARDS AND ACKNOWLEDGEMENTS
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the City for its CAFR for the fiscal year ended December 31, 2013.
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 CAFR 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 CAFR
continues to meet the Certificate of Achievement program requirements. We are submitting it to the
GFOA to determine its eligibility for another certificate.
The 2014 CAFR 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 and Wanita Williams have helped with the work needed to finish this report. Credit also must
be given to the Mayor and City Council for support for maintaining the highest standards of
professionalism in the management of the City’s finances.
Yours Truly,
Susan M. Virnig
Finance Director
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FINANCIAL SECTION
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INDEPENDENT AUDITOR’S REPORT
To the City Council and Management
City of Golden Valley, Minnesota
REPORT ON THE FINANCIAL STATEMENTS
We have audited the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City of Golden Valley, Minnesota (the
City) as of and for the year ended December 31, 2014, and the related notes to the financial statements,
which collectively comprise the City’s basic financial statements as listed in the table of contents.
MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
AUDITOR’S RESPONSIBILITY
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the City’s preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
(continued)
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OPINIONS
In our opinion, the financial statements referred to on the previous page 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 at December 31, 2014, and the
respective changes in financial position and, where applicable, cash flows thereof, and the budgetary
comparison for the General Fund for the year then ended, in accordance with accounting principles
generally accepted in the United States of America.
OTHER MATTERS
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis, and the schedules of funding progress for the Golden Valley Fire Department
Relief Association and the City of Golden Valley Other Post-Employment Benefits Plan, as listed in the
table of contents, be presented to supplement the basic financial statements. Such information, although
not a part of the basic financial statements, is required by the Governmental Accounting Standards Board
who considers it to be an essential part of financial reporting for placing the basic financial statements in
an appropriate operational, economic, or historical context. We have applied certain limited procedures to
the required supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because
the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The introductory section, supplemental information, and
statistical section, as listed in the table of contents, are presented for purposes of additional analysis and
are not required parts of the basic financial statements.
The supplemental information is the responsibility of management and was derived from and relate
directly to the underlying accounting and other records used to prepare the basic financial statements.
Such information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or to
the basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the supplemental
information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
(continued)
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Prior Year Comparative Information
We have previously audited the City’s 2013 financial statements, and we expressed unmodified audit
opinions on the respective financial statements of the governmental activities, the business-type activities,
each major fund, and the aggregate remaining fund information in our report dated June 4, 2014. In our
opinion, the partial comparative information presented herein as of and for the year ended December 31,
2013 is consistent, in all material respects, with the audited financial statements from which it has been
derived.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated May 20, 2015
on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the City’s internal control over financial
reporting and compliance.
Minneapolis, Minnesota
May 20, 2015
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CITY OF GOLDEN VALLEY
Management’s Discussion and Analysis
Year Ended December 31, 2014
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As management of the City of Golden Valley, Minnesota (the City), we have provided readers of the
City’s financial statements with this narrative overview and analysis of the financial activities of the City
for the fiscal year ended December 31, 2014. 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 of the City exceeded its liabilities at the close of fiscal 2014 by $111,156,159 (net position),
which represents an increase of $3,494,332 from the previous year. At year-end, the City was able to
report a positive balance in all categories of net position.
At the end of the fiscal year, the unassigned fund balance for the City’s General Fund was $8,642,108,
which represents 53.4 percent of total General Fund expenditures and transfers out for 2014.
The City sold three new bond issues, one of which was to refinance a previous issue. Total long-term debt
decreased $3,050,266 in 2014.
OVERVIEW OF THE FINANCIAL STATEMENTS
Management’s Discussion and Analysis (MD&A) 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 and liabilities, with the
difference between the two 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).
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,
physical development, 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.
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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 an integral part of the City’s financial statements.
Fund Financial Statements – A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The City, like other state and
local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. All of the funds of the City can be divided into two categories: governmental funds and
proprietary funds.
Governmental Funds – Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as the balances of spendable resources available at
the end of the fiscal year. 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 maintains 22 individual governmental funds. Information is presented separately in the
governmental funds Balance Sheet and Statement of Revenue, Expenditures, and Changes in Fund
Balances for the General, Golden Hills Tax Increment Special Revenue, Street Reconstruction Debt
Service, Golden Hills Tax Increment Debt Service, and Street Reconstruction Capital Project Funds, all of
which are considered to be major funds. Data from the other nonmajor governmental funds are combined
into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental
funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual
appropriated budget for the General Fund. Budget-to-actual comparisons are 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. The City uses enterprise funds to account for its water and sewer (utility), storm sewer, golf
course, motor vehicle licensing, and recycling operations. Internal service funds are an accounting device
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.
Proprietary funds provide the same type of information as the government-wide financial statements, only
in more detail. The proprietary fund financial statements provide separate information for the water and
sewer, storm sewer, golf course, motor vehicle licensing, and recycling operations, all of which are
considered to be major funds of the City.
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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.
Notes to Basic Financial Statements – The notes to basic financial statements provide additional
information that is essential to a full understanding of the data provided in the government-wide and fund
financial statements.
Other Information – Required supplementary information (RSI) on the City’s pension plan is presented
following the notes to basic financial statements. Combining and individual fund statements and
schedules for nonmajor funds are presented immediately following the RSI. Statistical tables are
presented as the last section in this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net positions may serve over time as a useful indicator of the City’s financial position. In
the case of the City, assets exceeded liabilities by $111,156,159 at the end of the 2014 fiscal year. This
represents an overall improvement in the City’s net position of $3,494,332 from the previous year.
Net Position – The City has 46.0 percent of its total net position invested in capital assets (land, land
improvements, buildings and improvements, machinery and equipment, infrastructure, and construction in
progress) less any related debt used to acquire those assets that is still outstanding. The City uses these
capital assets to provide services to citizens; consequently, these assets are not available for future
spending. Although the City’s investment in its capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources, since the capital
assets themselves cannot liquidate these liabilities. An additional 26.6 percent of the City’s net position
represents resources that are subject to external restrictions on how they may be used. The remaining
27.4 percent of net position is unrestricted and may be used to meet the City’s ongoing obligations.
The following is a summary of the City’s net position:
2014 2013 2014 2013 2014 2013
Current and other assets 73,863,187$ 69,287,920$ 16,669,957$ 19,082,229$ 90,533,144$ 88,370,149$
Capital assets 74,354,002 75,473,228 30,628,257 30,977,621 104,982,259 106,450,849
Total assets 148,217,189 144,761,148 47,298,214 50,059,850 195,515,403 194,820,998
Noncurrent liabilities
(including current portion) 79,393,796 80,934,062 1,040,000 2,550,000 80,433,796 83,484,062
Other liabilities 3,420,069 3,155,203 505,379 519,906 3,925,448 3,675,109
Total liabilities 82,813,865 84,089,265 1,545,379 3,069,906 84,359,244 87,159,171
Net position
Net investment in
capital assets 21,499,939 21,829,745 29,588,257 28,427,621 51,088,196 50,257,366
Restricted 29,553,484 29,535,846 – – 29,553,484 29,535,846
Unrestricted 14,349,901 9,306,292 16,164,578 18,562,323 30,514,479 27,868,615
Total net position 65,403,324$ 60,671,883$ 45,752,835$ 46,989,944$ 111,156,159$ 107,661,827$
Governmental Activities Business-Type Activities Total
-7-
The following is a summary of the City’s changes in net position:
2014 2013 2014 2013 2014 2013
Revenues
Program revenues
Charges for services 2,991,488$ 3,143,286$ 12,243,095$ 12,189,276$ 15,234,583$ 15,332,562$
Operating grants and
contributions 538,956 559,246 701,905 495,451 1,240,861 1,054,697
Capital grants and
contributions 2,028,250 1,882,698 – 852,075 2,028,250 2,734,773
General revenues
Property taxes 22,616,003 21,757,173 – – 22,616,003 21,757,173
Franchise taxes 1,048,227 904,928 – – 1,048,227 904,928
Other general revenues 286,108 338,245 – – 286,108 338,245
Investment earnings 347,197 112,817 142,866 38,459 490,063 151,276
Gain on sale of capital assets 71,227 24,735 – – 71,227 24,735
Total revenues 29,927,456 28,723,128 13,087,866 13,575,261 43,015,322 42,298,389
Expenses
General government 3,066,025 2,914,823 – – 3,066,025 2,914,823
Public safety 6,831,136 7,310,946 – – 6,831,136 7,310,946
Physical development 11,396,748 10,325,068 – – 11,396,748 10,325,068
Parks and recreation 1,545,616 1,588,798 – – 1,545,616 1,588,798
Interest and fiscal charges 2,456,490 2,633,359 – – 2,456,490 2,633,359
Water and sewer – – 9,867,531 7,611,927 9,867,531 7,611,927
Storm sewer – – 1,944,935 1,589,410 1,944,935 1,589,410
Golf course – – 1,693,028 1,645,728 1,693,028 1,645,728
Motor vehicle licensing – – 326,201 326,382 326,201 326,382
Recycling – – 393,280 410,808 393,280 410,808
Total expenses 25,296,015 24,772,994 14,224,975 11,584,255 39,520,990 36,357,249
Increase in net position
before transfers 4,631,441 3,950,134 (1,137,109) 1,991,006 3,494,332 5,941,140
Transfers 100,000 (73,606) (100,000) 73,606 – –
Increase in net position 4,731,441 3,876,528 (1,237,109) 2,064,612 3,494,332 5,941,140
Net position – beginning 60,671,883 56,795,355 46,989,944 44,925,332 107,661,827 101,720,687
Net position – ending 65,403,324$ 60,671,883$ 45,752,835$ 46,989,944$ 111,156,159$ 107,661,827$
TotalGovernmental Activities Business-Type Activities
Governmental Activities – Governmental activities increased net position by $4,731,441, accounting for
135.4 percent of the total growth in the City’s net position. Key elements of this net increase include:
Capital grants and contributions increased $145,552 from the prior year, mainly due to the City
receiving state aid revenue for street improvement projects.
Revenue from property taxes increased $858,830 from the prior year due to increases in the
City’s levies for general purposes and debt service, as well as an increase of $349,699 in tax
increments generated in the City’s tax increment districts.
Franchise taxes increased $143,299 from last year due to a full year of collections from
CenterPoint Energy.
Expenses increased by $523,021 from the previous year. General government expenses increased
$151,202 due to market adjustments for salaries. Public safety costs decreased $479,810 due to
decreased equipment purchases. Physical development expenses increased $1,071,680 due to
increased snow removal and street maintenance. Interest and fiscal charges decreased $176,869
from last year due to some bonded debt refinancing.
-8-
Expenses and Program Revenues – Governmental Activities
$–
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
$11,000,000
$12,000,000
General
Government
Public Safety Physical
Development
Parks and
Recreation
Interest and Fiscal
Charges
Expenses Program Revenues
Revenue by Source – Governmental Activities
-9-
Business-Type Activities – Business-type activities decreased the City’s net position by $1,237,109,
accounting for (35.4) percent of the total growth in the City’s net position from operations.
Water and Sewer Utility Fund net position decreased by $1,585,229, mainly due to being assessed
$1.72 million by the Golden Valley–Crystal–New Hope Joint Water Commission to finance the
construction of emergency water supply wells. The City’s water rates were increased 3.94 percent in 2014
to offset the increased cost of water purchased from the City of Minneapolis through the Joint Water
Commission, and to pay for planned infrastructure improvements. Sanitary sewer rates increased slightly
for residential users on all tiers that are billed on winter quarter usage. Commercial sewer accounts
received a 2.98 percent increase on the rate per 1,000 gallons of water billed. Sanitary sewer
infrastructure improvements for inflow and infiltration, and higher disposal costs charged by the
Metropolitan Council Environment Services (MCES), have increased expenses for the City.
Storm Sewer Utility Fund net position increased by $544,366. No rate increases were made in 2014. The
2014 planned infrastructure improvements that coincided with the City’s pavement management program
were less than the budget. A portion of the resources of this fund will also be needed to pay the debt
service of the storm sewer utility revenue bonds sold in 2006. The proceeds of these issues financed the
storm sewer costs associated with the Trunk Highway 55/General Mills Boulevard/Boone Avenue North
intersection and flood proofing improvement project. The 2015 through 2019 maturities of the City’s
2004C Utility Revenue Bonds were called in 2014 using available funds.
Brookview Operating (Golf Course) Fund net position decreased by $177,909. Par 3 and regulation
18 greens fees were lower than anticipated due to weather and a decline in rounds played.
Other business-type activities did not have a significant impact on net position in 2014.
-10-
Expenses and Program Revenues – Business-Type Activities
$–
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
Water and Sewer Storm Sewer Brookview Golf
Course
Motor Vehicle Recycling
Expenses Program Revenues
Revenue by Source – Business-Type Activities
-11-
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
Governmental Funds – At the end of the fiscal year, the City’s governmental funds reported combined
ending fund balances of $65,417,153, an increase of $4,670,760 in comparison with the prior year. The
unassigned portion of fund balance is $8,640,108, which may be used for any approved public purpose.
The remainder of the fund balance is either nonspendable, restricted, committed, or assigned to indicate
that it is 1) not in spendable form ($1,256), 2) restricted by various externally imposed constraints
($47,308,126), 3) internally committed for particular purposes ($743,633), or 4) internally assigned for
particular purposes ($8,724,030).
General Fund – The fund balance of the General Fund increased by $433,379 to $10,141,364 at
December 31, 2014.
General Fund operating results can be summarized as follows:
2014 2013
Fund balance – beginning of year 9,707,985$ 9,316,057$
Additions
Revenue 16,526,968 16,197,707
Other sources 100,000 100,000
Total additions 16,626,968 16,297,707
Deductions
Expenditures 15,206,879 14,721,069
Other uses 986,710 1,184,710
Total deductions 16,193,589 15,905,779
Fund balance – end of year 10,141,364$ 9,707,985$
Of the total fund balance, $1,256 representing prepaid expenditures is classified as nonspendable.
An additional $1,500,000 is assigned for self-insurance to highlight the continued use of the fund balance
as a reserve for insurance deductibles as opposed to purchasing additional umbrella liability insurance.
The unassigned fund balance at December 31, 2014 of $8,640,108 is equal to 53.4 percent of total 2014
expenditures and other financing uses in the General Fund, which puts the fund in an excellent financial
position. These reserves are needed for working capital to help pay for expenditures during the first half
of the year, since the City does not receive any significant money from its main revenue source—property
taxes—until July of each year.
-12-
General Fund Revenues – The following is an analysis of 2014 General Fund revenue:
Original Final Over (Under)
Revenue Budget Budget Actual Final Budget
Ad valorem taxes 12,358,005$ 12,358,005$ 12,431,386$ 73,381$ 0.6 %
Licenses 210,785 210,785 268,671 57,886 27.5
Permits 725,000 809,500 1,210,633 401,133 49.6
Intergovernmental 286,595 286,595 316,256 29,661 10.3
Charges for services 1,856,690 1,856,690 1,669,969 (186,721) (10.1)
Fines and forfeits 320,000 320,000 310,318 (9,682) (3.0)
Investment income 100,000 100,000 67,758 (32,242) (32.2)
Other revenue 227,200 227,200 251,977 24,777 10.9
Totals 16,084,275$ 16,168,775$ 16,526,968$ 358,193$ 2.2
(Under) Budget
Percent Over
Ad valorem taxes were over budget due to the City experiencing lower abatements and delinquencies than
allowed for in the budget. Licenses and permits were over budget due to an increase in building
construction. Intergovernmental revenue exceeded budget due to several small grants from the state and
federal government. Charges for services were under budget due to the City contracting out certain
recreation programs that had been run by the City in the past. Investment income was under budget
because of lower than anticipated market value adjustments on the City’s investment portfolio.
General Fund Expenditures – The following is an analysis of 2014 General Fund expenditures:
Original Final Over (Under)
Expenditure Budget Budget Actual Final Budget
General government 1,192,820$ 1,206,320$ 1,093,848$ (112,472)$ (9.3) %
Administrative services 1,676,280 1,692,280 1,682,784 (9,496) (0.6)
Casualty insurance 300,000 300,000 240,918 (59,082) (19.7)
Public safety 6,402,365 6,402,365 6,109,314 (293,051) (4.6)
Physical development 5,061,825 5,116,825 5,051,206 (65,619) (1.3)
Parks and recreation 1,256,275 1,256,275 1,028,809 (227,466) (18.1)
Totals 15,889,565$ 15,974,065$ 15,206,879$ (767,186)$ (4.8)
(Under) Budget
Percent Over
General government expenditures were under budget due to savings in personal services and contracted
services. Casualty insurance was lower than budget due to a premium adjustment. Public safety
expenditures were under budget due to personal service cost savings from turnover. Physical development
and planning and development were under budget in personal service costs. Parks and recreation costs
were under budget due to a popular recreation program being contracted out in 2014 rather than being run
by the City.
-13-
Other Major Governmental Funds – The City reported three other major governmental funds for 2014.
Two of these funds relate to the City’s Golden Hills Tax Increment District. The Golden Hills Tax
Increment Special Revenue Fund is used to account for the tax increment revenue collected on public
improvements within the tax increment district. These revenues are primarily used, via transfers to the
Golden Hills Tax Increment Debt Service Fund, to pay debt service on the tax increment bonds sold to
finance the improvements. Fund balance decreased $203,695 as tax increment revenue collected was less
than transfers for debt service and administrative costs. At December 31, 2014, this fund had a net equity
of $7,021,826. The Golden Hills Tax increment Debt Service Fund ended the year with a total fund
balance of $5,823,682, an increase of $517,664. This fund retired $4,355,000 of outstanding tax
increment bonds during 2014.
The two other major governmental funds relate to the City’s ongoing street reconstruction plan. The
Street Reconstruction Debt Service Fund is used to account for the debt service on the general obligation
improvement bonds issued to finance street improvements. At year-end, this fund had a fund balance of
$25,418,614 accumulated for future debt service. Fund balance increased by $3,994,346 in 2014, mainly
due to the issuance of $3.95 million of crossover refunding bonds, the proceeds of which were placed in
an escrow account to call outstanding bonds from another issue in the future. The Street Reconstruction
Capital Project Fund ended the year with a fund balance of $2,952,376, which decreased $256,280 from
the prior year as capital expenditures were higher than the proceeds from the improvement bonds issued
this year.
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 unrestricted net positions of the City’s enterprise funds totaled $16,945,645 at the end of the fiscal
year.
The Utility Fund had a decrease in net position of $1,585,229 due to emergency repairs to the distribution
system and lower revenue due to decreased water consumption.
The Storm Sewer Utility Fund had an increase in net position of $544,366 due to capital projects not fully
completed.
The Brookview Operating (Golf Course) Fund had a decrease in net position of $177,909 due to lower
revenue caused by unfavorable weather. This fund transfers $50,000 annually to the General Fund for
overhead.
The Motor Vehicle Operating Fund had a decrease in net position of $21,920. This fund transfers $50,000
annually to the General Fund for overhead.
The Recycling Fund had an increase in net position of $31,562 due to market rebates for recycling
product.
-14-
Capital Assets – The City’s investment in capital assets (net of accumulated depreciation) for its
governmental and business-type activities as of December 31, 2014 amounts to $104,982,259. This
balance represents a net decrease of $1,468,590 from the prior year. The City’s capital assets for the last
two years are as follows:
2014 2013 2014 2013 2014 2013
Land 3,527,685$ 3,527,685$ 857,044$ 857,044$ 4,384,729$ 4,384,729$
Land improvements 5,219,019 4,945,020 3,066,771 2,949,542 8,285,790 7,894,562
Buildings and improvements 12,425,291 12,353,227 667,657 667,657 13,092,948 13,020,884
Machinery and equipment 11,322,615 10,585,370 4,103,777 3,928,051 15,426,392 14,513,421
Infrastructure 109,370,083 105,430,655 39,497,362 37,957,559 148,867,445 143,388,214
Construction in progress 4,567,866 5,636,967 887,913 1,594,386 5,455,779 7,231,353
Less accumulated
depreciation (72,078,557) (67,005,696) (18,452,267) (16,976,618) (90,530,824) (83,982,314)
Net total 74,354,002$ 75,473,228$ 30,628,257$ 30,977,621$ 104,982,259$ 106,450,849$
Governmental Activities Business-Type Activities Total
Because of the completion of some street reconstruction projects, the costs were moved from construction
in progress to infrastructure. Also, this has increased depreciation now that those projects are complete.
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 Debt – The debt service funds account for the accumulation of resources to finance all of the
City’s governmental activity general obligation debt. The revenue sources for these funds include annual
tax levies, tax increment transferred from the HRA General Special Revenue Fund, and special
assessments. At year-end, there was $32,650,606 of fund balance restricted for debt service in the
governmental funds. The revenue bonds will be paid from the designated business activity for storm
water. The following table presents the City’s long-term liabilities as of the last two year-ends:
2014 2013 2014 2013 2014 2013
G.O. special assessment bonds 65,320,000$ 62,230,000$ –$ –$ 65,320,000$ 62,230,000$
G.O. tax increment bonds 4,935,000 9,290,000 – – 4,935,000 9,290,000
G.O. certificates of indebtedness 2,205,000 2,145,000 – – 2,205,000 2,145,000
G.O. tax abatement bonds 1,705,000 2,075,000 – – 1,705,000 2,075,000
G.O. state-aid street bonds 1,875,000 1,985,000 – – 1,875,000 1,985,000
Unamortized premiums 1,221,767 1,116,249 – – 1,221,767 1,116,249
Compensated absences 1,508,036 1,524,119 – – 1,508,036 1,524,119
Net OPEB obligation 623,993 568,694 – – 623,993 568,694
Revenue bonds – – 1,040,000 2,550,000 1,040,000 2,550,000
Total 79,393,796$ 80,934,062$ 1,040,000$ 2,550,000$ 80,433,796$ 83,484,062$
TotalGovernmental Activities Business-Type Activities
-15-
In 2014, the City sold the following bond issues:
1) $2,335,000 G.O. Improvement Bonds, Series 2014A – The proceeds of this issue are being used
to finance various street improvement projects.
2) $750,000 G.O. Equipment Certificates of Indebtedness, Series 2014B – The proceeds of these
certificates financed the purchases of various pieces of equipment included in the City’s 2014–
2018 capital improvement program.
3) $3,950,000 G.O. Improvement Refunding Bonds, Series 2014C – The proceeds of this issue
and interest earned thereon will be used to refund the 2018 through 2027 maturities of the City’s
G.O. Improvement Bonds, Services 2007C on their February 1, 2017 call date.
Additional details of long-term debt activity for the year can be found in Note 5 of the notes to basic
financial statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
Economic factors affect the preparation of annual budgets. Factors considered in preparing the 2015
budget were the following:
The state of Minnesota enacted levy limits for cities, excluding bonded debt levies, which were in
effect through 2014, which had little impact on the City. The legislature allowed levy limits to
expire beginning in 2015.
The City’s 2015 budgeted tax levy went up by 6.40 percent from 2014.
Utility rates are reviewed with the budget process and reflect a change due to the providers such
as the City of Minneapolis that sells water to the Joint Water Commission and the Metropolitan
Council Environmental Services that treats sewage. Water rates were increased 3.94 percent per
1,000 gallons starting in April 2014. Sewer rates will change to nine flat rates based on
consumption for residential accounts, and will increase $3.80 per 1,000 gallons for commercial
accounts starting in April 2014.
REQUESTS FOR INFORMATION
Questions concerning any of the information provided in this report or requests for additional information
should be addressed by writing to the City of Golden Valley, Attention: Finance Director, 7800 Golden
Valley Road, Golden Valley, Minnesota 55427 or by calling (763) 593-8010.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
Governmental Business-Type
Activities Activities Total
Assets
Cash and temporary investments 51,733,909$ 15,295,212$ 67,029,121$
Receivables
Delinquent taxes 197,716 – 197,716
Special assessments (net of allowance) 2,767,871 406,907 3,174,778
Accounts and interest receivable 447,827 1,502,240 1,950,067
Due from other governmental units 769,417 68,722 838,139
Internal balances 781,067 (781,067) –
Inventory 138,149 14,542 152,691
Prepaid items 1,256 163,401 164,657
Restricted assets – temporarily restricted
Cash and temporary investments 16,989,353 – 16,989,353
Interest receivable 36,622 – 36,622
Capital assets
Not depreciated 8,095,551 1,744,957 9,840,508
Depreciated, net of accumulated depreciation 66,258,451 28,883,300 95,141,751
Total assets 148,217,189$ 47,298,214$ 195,515,403$
Liabilities
Accounts and contracts payable 532,216$ 141,635$ 673,851$
Accrued interest payable 1,039,329 17,868 1,057,197
Accrued salaries and employee benefits 824,171 – 824,171
Due to other governmental units 52,617 183,015 235,632
Deposits 971,736 162,861 1,134,597
Long-term liabilities
Due within one year 16,023,572 130,000 16,153,572
Due in more than one year 63,370,224 910,000 64,280,224
Total long-term liabilities 79,393,796 1,040,000 80,433,796
Total liabilities 82,813,865 1,545,379 84,359,244
Net position
Net investment in capital assets 21,499,939 29,588,257 51,088,196
Restricted for
Debt service 17,086,300 – 17,086,300
Redevelopment 7,459,390 – 7,459,390
Capital improvements 4,841,492 – 4,841,492
Cemetery maintenance 75,470 – 75,470
DWI enforcement 90,832 – 90,832
Unrestricted 14,349,901 16,164,578 30,514,479
Total net position 65,403,324 45,752,835 111,156,159
Total liabilities and net position 148,217,189$ 47,298,214$ 195,515,403$
See notes to basic financial statements
CITY OF GOLDEN VALLEY
Statement of Net Position
December 31, 2014
-16-
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Governmental activities
General government 3,066,025$ 276,782$ 75,835$ –$
Public safety 6,831,136 1,837,076 463,121 –
Physical development 11,396,748 342,809 – 2,028,250
Parks and recreation 1,545,616 534,821 – –
Interest and fiscal charges 2,456,490 – – –
Total governmental activities 25,296,015 2,991,488 538,956 2,028,250
Business-type activities
Water and sewer 9,867,531 7,751,250 466,688 –
Storm sewer 1,944,935 2,278,128 135,407 –
Golf course 1,693,028 1,543,151 5,949 –
Motor vehicle licensing 326,201 347,382 59 –
Recycling 393,280 323,184 93,802 –
Total business-type activities 14,224,975 12,243,095 701,905 –
Total governmental and
business-type activities 39,520,990$ 15,234,583$ 1,240,861$ 2,028,250$
General revenues
Property taxes
Franchise taxes
Other general revenues
Investment earnings
Gain on sale of capital assets
Transfers
Total general revenues and transfers
Change in net position
Net position – beginning
Net position – ending
See notes to basic financial statements
Program Revenues
CITY OF GOLDEN VALLEY
Statement of Activities
Year Ended December 31, 2014
-17-
Governmental Business-Type
Activities Activities Total
(2,713,408)$ –$ (2,713,408)$
(4,530,939) – (4,530,939)
(9,025,689) – (9,025,689)
(1,010,795) – (1,010,795)
(2,456,490) – (2,456,490)
(19,737,321) – (19,737,321)
– (1,649,593) (1,649,593)
– 468,600 468,600
– (143,928) (143,928)
– 21,240 21,240
– 23,706 23,706
– (1,279,975) (1,279,975)
(19,737,321) (1,279,975) (21,017,296)
22,616,003 – 22,616,003
1,048,227 – 1,048,227
286,108 – 286,108
347,197 142,866 490,063
71,227 – 71,227
100,000 (100,000) –
24,468,762 42,866 24,511,628
4,731,441 (1,237,109) 3,494,332
60,671,883 46,989,944 107,661,827
65,403,324$ 45,752,835$ 111,156,159$
Revenue and Changes in Net Position
Net (Expenses)
-18-
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FUND FINANCIAL STATEMENTS
THIS PAGE INTENTIONALLY LEFT BLANK
Golden Hills Street
Tax Increment Reconstruction
General Special Revenue Debt Service
Assets
Cash and temporary investments 11,178,315$ 7,030,107$ 8,393,739$
Cash held with trustee – – 16,989,353
Receivables
Delinquent taxes 197,716 – –
Special assessments 26,980 – 2,500,998
Accounts 42,423 – –
Accrued interest 121,589 – 36,622
Due from other funds 49,944 – –
Due from other governmental units 324,318 – –
Prepaid items 1,256 – –
Total assets 11,942,541$ 7,030,107$ 27,920,712$
Liabilities
Accounts payable 190,300$ –$ –$
Contracts payable 1,500 – –
Accrued salaries payable 824,171 – –
Due to other governmental units 52,617 – –
Deposits 507,893 – 1,100
Due to other funds – 8,281 –
Total liabilities 1,576,481 8,281 1,100
Deferred inflows of resources
Unavailable revenue – property taxes 197,716 – –
Unavailable revenue – special assessments 26,980 – 2,500,998
Unavailable revenue – other – – –
Total deferred inflows of resources 224,696 – 2,500,998
Fund balances
Nonspendable 1,256 – –
Restricted – 7,021,826 25,418,614
Committed – – –
Assigned 1,500,000 – –
Unassigned 8,640,108 – –
Total fund balances 10,141,364 7,021,826 25,418,614
Total liabilities, deferred inflows of
resources, and fund balances 11,942,541$ 7,030,107$ 27,920,712$
See notes to basic financial statements
December 31, 2014
CITY OF GOLDEN VALLEY
Balance Sheet
Governmental Funds
-19-
Golden Hills Street
Tax Increment Reconstruction
Debt Service Capital Project Nonmajor Totals
5,823,682$ 3,069,945$ 14,057,188$ 49,552,976$
– – – 16,989,353
– – – 197,716
– 186,735 53,158 2,767,871
– – 272,313 314,736
– – 3,573 161,784
– – – 49,944
– – 445,099 769,417
– – – 1,256
5,823,682$ 3,256,680$ 14,831,331$ 70,805,053$
–$ 46,564$ 203,230$ 440,094$
– 40,880 31,408 73,788
– – – 824,171
– – – 52,617
– 30,125 426,081 965,199
– – 41,663 49,944
– 117,569 702,382 2,405,813
– – – 197,716
– 186,735 53,158 2,767,871
– – 16,500 16,500
– 186,735 69,658 2,982,087
– – – 1,256
5,823,682 2,446,729 6,597,275 47,308,126
– – 743,633 743,633
– 505,647 6,718,383 8,724,030
– – – 8,640,108
5,823,682 2,952,376 14,059,291 65,417,153
5,823,682$ 3,256,680$ 14,831,331$ 70,805,053$
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Total fund balances – governmental funds 65,417,153$
Capital assets used in governmental activities are not financial resources and, therefore, are not
reported as assets in governmental funds.
Cost of capital assets 146,314,300
Less accumulated depreciation (72,008,945)
Long-term liabilities, including bonds payable, are not due or payable in the current period and,
therefore, are not reported as liabilities in governmental funds. Long-term liabilities at year-end
consist of:
Bonds and certificates of indebtedness payable (76,040,000)
Certain receivables (including delinquent taxes, special assessments, and other receivables not
collected within 60 days of year-end) are included in net position, but are excluded from fund
balances until they are available to liquidate liabilities of the current period.2,982,087
Accrued interest payable is included in net position, but is excluded from fund balances until due
and payable.(1,039,329)
Internal service funds are used by management to charge the costs of employee benefits and
vehicle maintenance to individual funds. The assets and liabilities of the internal service funds are
included in governmental activities in the Statement of Net Position.
Internal service balances included in governmental activities 218,758
Add internal service balances allocated to business-type activities 781,067
Governmental funds report debt premiums as other financing sources at the time of issuance.
Premiums are reported as liabilities in the Statement of Net Position.(1,221,767)
Total net position – governmental activities 65,403,324$
See notes to basic financial statements
Amounts reported for governmental activities in the Statement of Net Position are different because:
December 31, 2014
CITY OF GOLDEN VALLEY
Reconciliation of the Balance Sheet to the
Statement of Net Position
Governmental Funds
-21-
Golden Hills Street
Tax Increment Reconstruction
General Special Revenue Debt Service
Revenue
Ad valorem taxes 12,431,386$ –$ 3,841,495$
Tax increments – 5,159,229 –
Special assessments 13,768 – 1,124,414
Franchise taxes – – –
Licenses and permits 1,479,304 – –
Intergovernmental revenue 316,256 – –
Charges for services 1,669,969 – –
Fines and forfeits 310,318 – –
Investment income 67,758 4,357 109,349
Other revenue 238,209 – –
Total revenue 16,526,968 5,163,586 5,075,258
Expenditures
Current
General government 1,093,848 8,281 –
Administrative services 1,682,784 – –
Casualty insurance 240,918 – –
Public safety 6,109,314 – –
Physical development 5,051,206 – –
Parks and recreation 1,028,809 – –
Capital outlay – – –
Debt service
Principal – – 3,195,000
Interest and fiscal charges – – 2,183,467
Total expenditures 15,206,879 8,281 5,378,467
Excess (deficiency) of revenue over expenditures 1,320,089 5,155,305 (303,209)
Other financing sources (uses)
Sale of capital assets – – –
Bonds issued – – 106,317
Refunding bonds issued – – 3,950,000
Premiums on bonds issued – – 241,238
Transfers in 100,000 – –
Transfers (out) (986,710) (5,359,000) –
Total other financing sources (uses) (886,710) (5,359,000) 4,297,555
Net change in fund balances 433,379 (203,695) 3,994,346
Fund balances
Beginning of year 9,707,985 7,225,521 21,424,268
End of year 10,141,364$ 7,021,826$ 25,418,614$
See notes to basic financial statements
Year Ended December 31, 2014
CITY OF GOLDEN VALLEY
Statement of Revenue, Expenditures, and Changes in Fund Balances
Governmental Funds
-22-
Golden Hills Street
Tax Increment Reconstruction
Debt Service Capital Project Nonmajor Totals
–$ –$ 1,061,919$ 17,334,800$
– – 25,033 5,184,262
– 5,815 73,208 1,217,205
– – 1,048,227 1,048,227
– – – 1,479,304
– – 1,094,171 1,410,427
– – 48,623 1,718,592
– – – 310,318
11,711 29,817 105,562 328,554
– 15,313 462,611 716,133
11,711 50,945 3,919,354 30,747,822
– – 208,061 1,310,190
– – – 1,682,784
– – – 240,918
– – 47,082 6,156,396
– – – 5,051,206
– – – 1,028,809
– 2,542,833 4,280,382 6,823,215
4,355,000 – 1,170,000 8,720,000
339,047 26,521 146,625 2,695,660
4,694,047 2,569,354 5,852,150 33,709,178
(4,682,336) (2,518,409) (1,932,796) (2,961,356)
– – 222,432 222,432
– 2,228,683 750,000 3,085,000
– – – 3,950,000
– 33,446 – 274,684
5,200,000 – 1,245,710 6,545,710
– – (100,000) (6,445,710)
5,200,000 2,262,129 2,118,142 7,632,116
517,664 (256,280) 185,346 4,670,760
5,306,018 3,208,656 13,873,945 60,746,393
5,823,682$ 2,952,376$ 14,059,291$ 65,417,153$
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THIS PAGE INTENTIONALLY LEFT BLANK
Total net change in fund balances – governmental funds 4,670,760$
Capital outlays are reported in governmental funds as expenditures. However, in the Statement of
Activities the cost of those assets is allocated over the estimated useful lives as depreciation
expense.
Capital outlays 5,043,790
Depreciation expense (5,999,446)
A gain or loss on the disposal or transfer of capital assets, including the difference between the
carrying value and any related sale proceeds, is included in the change in net position. However,
only the sale proceeds are included in the change in fund balances.(151,205)
The amount of bond proceeds used to finance the acquisition of capital assets is reported in the
governmental funds as a source of financing. Bond proceeds are not revenues in the Statement of
Activities, but rather constitute long-term liabilities.(7,035,000)
Repayment of long-term liabilities is an expenditure in the governmental funds, but the repayment
reduces long-term liabilities in the Statement of Net Position.8,720,000
Interest on long-term debt in the Statement of Activities differs from the amount reported in the
governmental funds because interest is recognized as an expenditure in the funds when it is due, and
thus requires the use of current financial resources. In the Statement of Activities, however, interest
expense is recognized as the interest accrues, regardless of when it is due.70,004
Governmental funds report debt issuance premiums as other financing sources at the time of
issuance. Premiums are reported as liabilities in the Statement of Net Position.(105,518)
Certain receivables (including delinquent taxes, special assessments, and other receivables not
collected within 60 days of year-end) are included in the change in net position, but are excluded
from the change in fund balances until they are available to liquidate liabilities of the current period.(418,191)
Internal service funds are used by management 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 government-wide financial statements.
Internal service fund activity included in governmental activities (91,732)
Add back internal service fund activity allocated to business-type activities 27,979
Change in net position – governmental activities 4,731,441$
See notes to basic financial statements
Amounts reported for governmental activities in the Statement of Activities are different because:
CITY OF GOLDEN VALLEY
Reconciliation of the Statement of
Revenue, Expenditures, and Changes in Fund Balances
to the Statement of Activities
Governmental Funds
Year Ended December 31, 2014
-24-
THIS PAGE INTENTIONALLY LEFT BLANK
Original Final Over (Under)
Budget Budget Actual Budget
Revenue
Ad valorem taxes 12,358,005$ 12,358,005$ 12,431,386$ 73,381$
Special assessments 10,000 10,000 13,768 3,768
Licenses and permits 935,785 1,020,285 1,479,304 459,019
Intergovernmental revenue 286,595 286,595 316,256 29,661
Charges for services 1,856,690 1,856,690 1,669,969 (186,721)
Fines and forfeits 320,000 320,000 310,318 (9,682)
Investment income 100,000 100,000 67,758 (32,242)
Other revenue 217,200 217,200 238,209 21,009
Total revenue 16,084,275 16,168,775 16,526,968 358,193
Expenditures
Current
General government 1,192,820 1,206,320 1,093,848 (112,472)
Administrative services 1,676,280 1,692,280 1,682,784 (9,496)
Casualty insurance 300,000 300,000 240,918 (59,082)
Public safety 6,402,365 6,402,365 6,109,314 (293,051)
Physical development 5,061,825 5,116,825 5,051,206 (65,619)
Parks and recreation 1,256,275 1,256,275 1,028,809 (227,466)
Total expenditures 15,889,565 15,974,065 15,206,879 (767,186)
Excess of revenue over expenditures 194,710 194,710 1,320,089 1,125,379
Other financing sources (uses)
Transfers in 100,000 100,000 100,000 –
Transfers (out) (294,710) (294,710) (986,710) (692,000)
Total other financing sources (uses) (194,710) (194,710) (886,710) (692,000)
Net change in fund balances –$ –$ 433,379 433,379$
Fund balances
Beginning of year 9,707,985
End of year 10,141,364$
See notes to basic financial statements
CITY OF GOLDEN VALLEY
Statement of Revenue, Expenditures, and Changes in Fund Balances
General Fund – Budget and Actual
Year Ended December 31, 2014
-25-
Storm Sewer Brookview Motor Vehicle
Utility Utility Operating Operating
Assets
Current assets
Cash and temporary investments 6,496,659$ 6,300,859$ 891,957$ 568,385$
Receivables
Special assessments 468,303 – – –
Accounts 1,502,021 – 219 –
Allowance for uncollectibles (61,396) – – –
Due from other governmental units 66,290 – 374 –
Due from other funds – 179,453 – –
Inventory 4,181 – 10,361 –
Prepaid items 163,401 – – –
Total current assets 8,639,459 6,480,312 902,911 568,385
Noncurrent assets
Advance to other funds – 1,548,000 – –
Capital assets
Land – – 857,044 –
Land improvements 30,054 – 3,036,717 –
Buildings and improvements 505,490 – 162,167 –
Machinery and equipment 2,118,094 641,635 1,329,782 14,266
Infrastructure – distribution and
collection systems 21,438,601 18,058,761 – –
Construction in progress 358,769 529,144 – –
Total capital assets 24,451,008 19,229,540 5,385,710 14,266
Less accumulated depreciation (9,923,892) (4,735,014) (3,786,220) (7,141)
Capital assets, net 14,527,116 14,494,526 1,599,490 7,125
Total noncurrent assets 14,527,116 16,042,526 1,599,490 7,125
Total assets 23,166,575$ 22,522,838$ 2,502,401$ 575,510$
See notes to basic financial statements
Business-Type Activities – Enterprise Funds
CITY OF GOLDEN VALLEY
Statement of Net Position
Proprietary Funds
December 31, 2014
-26-
Governmental
Activities
Recycling Totals Internal Service
1,037,352$ 15,295,212$ 2,180,933$
– 468,303 –
– 1,502,240 7,929
– (61,396) –
2,058 68,722 –
– 179,453 –
– 14,542 138,149
– 163,401 –
1,039,410 17,630,477 2,327,011
– 1,548,000 –
– 857,044 –
– 3,066,771 –
– 667,657 –
– 4,103,777 118,259
– 39,497,362 –
– 887,913 –
– 49,080,524 118,259
– (18,452,267) (69,612)
– 30,628,257 48,647
– 32,176,257 48,647
1,039,410$ 49,806,734$ 2,375,658$
(continued)
-27-
Storm Sewer Brookview Motor Vehicle
Utility Utility Operating Operating
Liabilities and Net Position
Current liabilities
Accounts payable 24,267$ 24,307$ 55,459$ 402$
Accrued interest payable – 17,868 – –
Contracts payable 10,781 8,384 – –
Accrued compensated absences –
current – – – –
Due to other governmental units 170,741 10,522 1,752 –
Due to other funds 179,453 – – –
Deposits 100,359 62,502 – –
Bonds payable – current – 130,000 – –
Total current liabilities 485,601 253,583 57,211 402
Noncurrent liabilities
Advance from other funds 1,548,000 – – –
Net OPEB obligation – – – –
Accrued compensated absences
and severance – – – –
Bonds payable – long-term – 910,000 – –
Total noncurrent liabilities 1,548,000 910,000 – –
Total liabilities 2,033,601 1,163,583 57,211 402
Net position
Net investment in capital assets 14,527,116 13,454,526 1,599,490 7,125
Unrestricted 6,605,858 7,904,729 845,700 567,983
Total net position 21,132,974 21,359,255 2,445,190 575,108
Total liabilities and net position 23,166,575$ 22,522,838$ 2,502,401$ 575,510$
Total net position – enterprise funds
Adjustment to reflect the consolidation of
internal service fund activity related
to enterprise funds
Net position – business-type activities
See notes to basic financial statements
Business-Type Activities – Enterprise Funds
CITY OF GOLDEN VALLEY
Statement of Net Position
Proprietary Funds (continued)
December 31, 2014
-28-
Governmental
Activities
Recycling Totals Internal Service
18,035$ 122,470$ 18,334$
– 17,868 –
– 19,165 –
– – 988,572
– 183,015 –
– 179,453 –
– 162,861 6,537
– 130,000 –
18,035 814,832 1,013,443
– 1,548,000 –
– – 623,993
– – 519,464
– 910,000 –
– 2,458,000 1,143,457
18,035 3,272,832 2,156,900
– 29,588,257 48,647
1,021,375 16,945,645 170,111
1,021,375 46,533,902 218,758
1,039,410$ 49,806,734$ 2,375,658$
46,533,902$
(781,067)
45,752,835$
-29-
Storm Sewer Brookview Motor Vehicle
Utility Utility Operating Operating
Operating revenue
Charges for services 7,731,802$ 2,278,128$ 998,746$ 347,382$
Sales and rentals 19,448 – 576,280 –
Less sales tax and credit card fees – – (31,875) –
Total operating revenue 7,751,250 2,278,128 1,543,151 347,382
Operating expenses
Enterprise operations 9,085,212 1,226,363 1,585,163 320,221
Other services – – – –
Depreciation 771,641 645,241 124,927 2,852
Total operating expenses 9,856,853 1,871,604 1,710,090 323,073
Operating income (loss) (2,105,603) 406,524 (166,939) 24,309
Nonoperating revenue (expense)
Intergovernmental revenue 466,688 135,107 – –
Investment income 53,180 70,077 8,041 3,712
Other income (expense) – 300 5,949 59
Gain on sale of capital assets 7,959 – 25,040 –
Interest expense (7,453) (67,642) – –
Total nonoperating revenue (expense) 520,374 137,842 39,030 3,771
Income (loss) before transfers (1,585,229) 544,366 (127,909) 28,080
Transfers (out) – – (50,000) (50,000)
Change in net position (1,585,229) 544,366 (177,909) (21,920)
Net position
Beginning of year 22,718,203 20,814,889 2,623,099 597,028
End of year 21,132,974$ 21,359,255$ 2,445,190$ 575,108$
Change in net position – enterprise funds
Adjustment to reflect the consolidation of internal
service fund activities related to the enterprise funds
Change in net position – business-type activities
See notes to basic financial statements
Business-Type Activities – Enterprise Funds
CITY OF GOLDEN VALLEY
Statement of Revenue, Expenses, and Changes in Net Position
Proprietary Funds
Year Ended December 31, 2014
-30-
Governmental
Activities
Recycling Totals Internal Service
323,184$ 11,679,242$ 6,801,977$
– 595,728 –
– (31,875) –
323,184 12,243,095 6,801,977
393,280 12,610,239 –
– – 7,316,401
– 1,544,661 12,365
393,280 14,154,900 7,328,766
(70,096) (1,911,805) (526,789)
86,474 688,269 397,132
7,856 142,866 18,643
7,328 13,636 19,282
– 32,999 –
– (75,095) –
101,658 802,675 435,057
31,562 (1,109,130) (91,732)
– (100,000) –
31,562 (1,209,130) (91,732)
989,813 47,743,032 310,490
1,021,375$ 46,533,902$ 218,758$
(1,209,130)$
(27,979)
(1,237,109)$
-31-
Storm Sewer Brookview Motor Vehicle
Utility Utility Operating Operating
Cash flows from operating activities
Receipts from customers and users 7,579,057$ 2,326,504$ 1,582,036$ 347,441$
Receipts from interfund services provided – – – –
Paid to suppliers/service providers (7,960,811) (705,162) (605,870) (33,529)
Paid to employees (982,124) (340,186) (915,585) (256,572)
Payments for interfund services (275,000) (200,000) (85,000) (30,000)
Net cash flows from operating activities (1,638,878) 1,081,156 (24,419) 27,340
Cash flows from capital and related financing activities
Acquisition of capital assets (609,158) (402,149) (185,440) –
Advances (to) from other funds 1,720,000 (1,720,000) – –
Proceeds from sale of capital assets 9,409 – 25,040 –
Principal paid on capital debt – (1,510,000) – –
Interest paid on capital debt – (94,968) – –
Net cash flows from capital and related financing activities 1,120,251 (3,727,117) (160,400) –
Cash flows from investing activities
Interest received on investments 53,180 62,624 8,041 3,712
Cash flows from noncapital financing activities
Intergovernmental reveue 466,688 135,107 – –
Transfers (out) – – (50,000) (50,000)
Net cash flows from noncapital financing activities 466,688 135,107 (50,000) (50,000)
Net increase (decrease) in cash and temporary
investments/cash equivalents 1,241 (2,448,230) (226,778) (18,948)
Cash and temporary investments/cash equivalents
Beginning of year 6,495,418 8,749,089 1,118,735 587,333
End of year 6,496,659$ 6,300,859$ 891,957$ 568,385$
Reconciliation of operating income (loss) to net cash flows from
operating activities
Operating income (loss)(2,105,603)$ 406,524$ (166,939)$ 24,309$
Adjustments to reconcile operating income (loss) to net cash flows
from operating activities
Depreciation 771,641 645,241 124,927 2,852
Other income (expense)– 300 5,949 59
Change in assets and liabilities
Receivables
Delinquent special assessments (6,405) – – –
Deferred special assessments (22,401) – – –
Accounts (77,097) – 119 –
Due from other governmental units (66,290) 48,076 – –
Inventory 4,603 – 942 –
Prepaids (163,401) – – –
Accounts payable 5,316 2,419 9,020 120
Contracts payable (21,152) (20,260) – –
Net OPEB obligation – – – –
Accrued compensated absences – – – –
Due to other governmental units 49,536 8,345 1,563 –
Deposits (7,625) (9,489) – –
Net cash flows from operating activities (1,638,878)$ 1,081,156$ (24,419)$ 27,340$
See notes to basic financial statements
CITY OF GOLDEN VALLEY
Business-Type Activities – Enterprise Funds
Year Ended December 31, 2014
Proprietary Funds
Statement of Cash Flows
-32-
Governmental
Activities
Recycling Totals Internal Service
330,512$ 12,165,550$ 1,429,209$
– – 5,393,721
(346,774) (9,652,146) (5,025,194)
– (2,494,467) (2,252,887)
(51,500) (641,500) –
(67,762) (622,563) (455,151)
– (1,196,747) –
– – –
– 34,449 –
– (1,510,000) –
– (94,968) –
– (2,767,266) –
7,856 135,413 18,643
111,427 713,222 397,132
– (100,000) –
111,427 613,222 397,132
51,521 (2,641,194) (39,376)
985,831 17,936,406 2,220,309
1,037,352$ 15,295,212$ 2,180,933$
(70,096)$ (1,911,805)$ (526,789)$
– 1,544,661 12,365
7,328 13,636 19,282
– (6,405) –
– (22,401) –
– (76,978) 1,671
– (18,214) –
– 5,545 3,593
– (163,401) –
(2,865) 14,010 4,460
– (41,412) –
– – 55,299
– – (16,083)
(2,129) 57,315 (2,109)
– (17,114) (6,840)
(67,762)$ (622,563)$ (455,151)$
-33-
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CITY OF GOLDEN VALLEY
Notes to Basic Financial Statements
December 31, 2014
-34-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES
A. Organization
The City of Golden Valley, Minnesota (the City) operates under “Optional Plan B” as defined in
Minnesota Statutes, Chapter 412. Under this plan, the government of the City is run by a council
composed of an elected mayor and four councilmembers. The City Council exercises legislative authority
and determines all matters of policy. The city manager, who is appointed by the City Council, is
responsible for the proper administration of all affairs relating to the City.
The accounting policies of the City conform to accounting principles generally accepted in the United
States of America as applicable to governmental units.
B. Reporting Entity
As required by accounting principles generally accepted in the United States of America, these financial
statements include the City (the primary government) and its component units. Component units are
legally separate entities for which the primary government is financially accountable, or for which the
exclusion of the component unit would render the financial statements of the primary government
misleading. The criteria used to determine if the primary government is financially accountable for a
component unit includes whether or not the primary government appoints the voting majority of the
potential component unit’s board, is able to impose its will on the potential component unit, is in a
relationship of financial benefit or burden with the potential component unit, or is fiscally depended upon
by the potential component unit.
As a result of applying these criteria, certain organizations have been included or disclosed in this report
as follows:
1. Blended Component Unit – The Golden Valley Housing and Redevelopment Authority (HRA)
is a legally separate organization created in accordance with Minnesota Statute § 469. Its purpose
is to clear and redevelop blighted areas in the City and to provide adequate housing for low and
moderate income residents. The HRA is fiscally dependent upon the City, its governing board
consists of the City’s mayor and councilmembers, and the City’s management has operational
responsibility for the HRA. Therefore, the HRA has been reported as a blended component unit
of the City, with its funds reported as funds of the City.
2. Joint Ventures – The City participates in two joint ventures: the Bassett Creek Water
Management Commission and the Joint Water Commission. Descriptions and condensed
financial information for these organizations are included later in these notes.
3. Jointly Governed Organization – The City is a member of Local Governmental Information
Systems (LOGIS), a consortium of Minnesota municipalities that provides data processing
services and support to its members. LOGIS is a legally separate entity that is financially
independent of the City. Further, the City does not appoint a voting majority of LOGIS’ Board of
Directors. Therefore, it has not been incorporated into the City’s reporting entity. During the 2014
fiscal year, the City paid LOGIS $433,459 for services provided.
-35-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Government-Wide Financial Statements
The government-wide financial statements (Statement of Net Position and Statement of Activities)
display information about the reporting government as a whole. These statements include all of the
financial activities of the City. Governmental activities, which are normally supported by taxes and
intergovernmental revenues, are reported separately from business-type activities, which significantly rely
upon sales, fees, and charges for support.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include: 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment, 2) operating grants and contributions, and 3) capital grants and contributions, including special
assessments that are restricted to meeting the operational or capital requirements of a particular function
or segment. Taxes and other internally directed revenues are reported as general revenues.
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when
a liability is incurred, regardless of the timing of related cash flows. Property taxes and special
assessments are recognized as revenues in the fiscal year for which they are certified for levy. Grants and
similar items are recognized when all eligibility requirements imposed by the provider have been met.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
statements. However, charges between the City’s enterprise funds and other functions are not eliminated,
as that would distort the direct costs and program revenues reported in those functions. Depreciation
expense is included in the direct expenses of each function. Interest on long-term debt is considered an
indirect expense and is reported separately on the Statement of Activities.
D. Fund Financial Statement Presentation
Separate fund financial statements are provided for governmental and proprietary funds. Major individual
governmental and enterprise funds are reported as separate columns in the fund financial statements.
Aggregated information for the remaining nonmajor governmental funds is reported in a single column in
the fund financial statements.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Under this basis of accounting transactions are
recorded in the following manner:
1. Revenue Recognition – Revenue is recognized when it becomes measurable and available.
“Measurable” means the amount of the transaction can be determined and “available” means
collectible within the current period or soon enough thereafter to be used to pay liabilities of the
current period. For this purpose, the City considers revenues to be available if they are collected
within 60 days after year-end. Only the portion of special assessments receivable due within the
current fiscal period is considered to be 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 capital 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.
-36-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2. Recording of Expenditures – Expenditures are generally recorded when a liability is incurred,
except for principal and interest on long-term debt and compensated absences, which are
recognized as expenditures to the extent they have matured. Capital asset acquisitions are
reported as capital outlay expenditures in the governmental funds.
Proprietary fund financial statements are reported using the economic resources measurement focus and
accrual basis of accounting, similar to the government-wide financial statements. Proprietary funds
distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses
generally result from providing services and producing and delivering goods in connection with a
proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise
funds and internal service funds are charges to customers for sales and services. The operating expenses
for the enterprise funds and internal service funds include the cost of sales and services, administrative
expenses, and depreciation on capital assets. All revenues and expenses that do not meet this definition
are reported as nonoperating revenues and expenses.
Aggregated information for the internal service funds is reported in a single column in the proprietary
fund financial statements. Because the principal user of the internal services is the City’s governmental
activities, the financial statements of the internal service funds are consolidated into the governmental
column when presented in the government-wide financial statements. The cost of these services is
reported in the appropriate functional activity.
Description of Funds
The City reports the following major governmental funds:
General Fund – This is the general operating fund of the City. It is used to account for all financial
resources except those required to be accounted for in another fund.
Golden Hills Tax Increment Special Revenue Fund – This fund is used to account for tax
increment revenue received for the Golden Hills Tax Increment District, which is used primarily to
pay the debt service on tax increment bonds sold to finance public improvements within the district.
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.
Golden Hills Tax Increment Debt Service Fund – This fund is used to account for the
accumulation of resources for, and payment of, debt service on tax increment bonds sold to finance
public improvements within the district.
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.
The City reports the following major proprietary funds:
Utility Fund – This fund is used to account for the operation, maintenance, and improvement of the
City’s water and sanitary sewer utilities.
Storm Sewer Utility Fund – This fund is used to account for the operation, maintenance, and
improvement of the City’s storm water drainage system.
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NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 three 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, after holding a truth in taxation public hearing, the City Council adopts a General Fund budget
for the following fiscal year beginning January 1. Annual budgets are adopted on a basis consistent with
accounting principles generally accepted in the United States of America. The City has established
budgetary control at the division level. City management must request City Council approval before
exceeding the budget at that level. City management may transfer appropriations within the division level
without City Council approval. Appropriations lapse at year-end; however, the City Council may approve
the carryover of specific amounts. Encumbrance accounting is not used.
F. Cash, Cash Equivalents, and Investments
Cash balances from all funds are combined and invested to the extent available in short-term investments.
Earnings from the pooled investments are allocated to the individual funds based on the average monthly
cash and investment balances of the respective funds.
Cash held with trustee in the Street Reconstruction Debt Service Fund includes balances held in escrow
accounts for future bond refunding. Earnings on these accounts are allocated directly to this fund.
The City generally reports investments at fair value. The Minnesota Municipal Money Market (4M) Fund
in an external investment pool regulated by Minnesota Statutes that is not registered with the Securities
and Exchange Commission (SEC), but follows the same regulatory rules of the SEC under rule 2a7. The
City’s investment in this fund is measured at the net asset value per share provided by the pool, which is
based on an amortized cost method that approximates fair value.
For purposes of the Statement of Cash Flows, the City considers all highly liquid debt instruments with an
original maturity from the time of purchase by the City of three months or less to be cash equivalents. The
proprietary funds’ portion in the government-wide cash and investment management pool is considered to
be cash equivalent.
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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NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
H. Property Taxes
Property tax levies are set by the City Council in December of each year, and are certified to Hennepin
County for collection in the following year. In Minnesota, counties act as collection agents for all
property taxes. The county spreads the levies over all taxable property. Such taxes become a lien on
January 1 and are recorded as receivables by the City on that date. Real property taxes may be paid by
taxpayers in two equal installments on May 15 and October 15. Personal property taxes are due in full on
May 15. The county provides tax settlements to cities and other taxing districts three times a year; in July,
December, and January.
Property taxes are recognized as revenue in the year levied in the government-wide financial statements
and proprietary fund financial statements. In the governmental fund financial statements, taxes are
recognized as revenue when received in cash or within 60 days after year-end. Taxes which remain
unpaid on December 31 are classified as delinquent taxes receivable, and are offset by a deferred inflow
of resources in the governmental fund financial statements.
I. Special Assessments
Special assessments represent the financing for public improvements paid for by benefiting property
owners. Special assessments are recorded as receivables upon certification to the county. Special
assessments are recognized as revenue in the year levied in the government-wide financial statements and
proprietary fund financial statements. In the governmental fund financial statements, special assessments
are recognized as revenue when received in cash or within 60 days after year-end. Governmental fund
special assessments receivable which remain unpaid on December 31 are offset by a deferred inflow of
resources in the governmental fund financial statements.
Special assessments receivable at December 31, 2014 consist of the following:
Enterprise
Funds
Street Street
Reconstruction Reconstruction
General Debt Service Capital Project Nonmajor Utility
Special assessments receivable
Delinquent 18,974$ 21,924$ 23,260$ 45$ 61,396$
Deferred 8,006 2,479,074 163,475 53,113 406,907
Total 26,980 2,500,998 186,735 53,158 468,303
Allowance for uncollectible – – – – (61,396)
Net of allowance 26,980$ 2,500,998$ 186,735$ 53,158$ 406,907$
Governmental Funds
J. Inventories
The inventories of the City’s proprietary funds are stated at cost (for supplies) or the lower of cost or
market (for merchandise held for resale) on the first-in, first-out basis. Enterprise fund inventories consist
of merchandise held for resale at the Brookview Municipal Golf Course and supplies in the Utility Fund.
Inventory in the internal service funds consist of parts, supplies, and gasoline for the maintenance of
city-owned vehicles.
K. Prepaid Items
Certain payments to vendors that reflect costs applicable to future periods are reported as prepaid items.
In the governmental funds, prepaid items are reported using the consumption method.
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NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
L. Interfund Receivables and Payables
In the fund financial statements, activity between funds that is representative of lending or borrowing
arrangements is reported as either “due to/from other funds” (current portion) or “advances to/from other
funds.” All other outstanding balances between funds are reported as “due to/from other funds.” Any
residual balances outstanding between the governmental activities and business-type activities are
reported in the government-wide financial statements as “internal balances.”
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 fair market value on the date of donation. The City defines
capital assets as those with an initial, individual cost of $5,000 or more with an estimated useful life in
excess of one year. The cost of normal maintenance and repairs that do not add to the value of the asset or
materially extend asset lives are not capitalized.
Capital assets are recorded in the government-wide and proprietary fund financial statements, but are not
reported in the governmental fund financial statements. Interest incurred during the construction phase of
capital assets for business-type activities is included as part of the capitalized value of the assets
constructed. 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. 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. The liability is funded as it accrues through payments from the City’s General
Fund and enterprise funds.
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
received on debt issuances are reported as other financing sources while discounts on debt issuances are
reported as other financing uses.
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NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
P. Deferred Inflows of Resources
In addition to liabilities, statements of financial position or balance sheets will sometimes report a
separate section for deferred inflows of resources. This separate financial statement element represents an
acquisition of net position that applies to future periods and so will not be recognized as an inflow of
resources (revenue) until that time. The City has only one type of item, which arises under a modified
accrual basis of accounting, which qualifies for reporting in this category. Accordingly, the item,
unavailable revenue, is reported only in the governmental funds Balance Sheet. The governmental funds
report unavailable revenue from three sources: property taxes, special assessments, and other receivables
not collected within 60 days of year-end. These amounts are deferred and recognized as an inflow of
resources in the period the amounts become available.
Q. Use of Estimates
The preparation of financial statements, in conformity with accounting principles generally accepted in
the United States of America, requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements, and the reported amounts of revenue and expenditures/expenses during the
reporting period. Actual results could differ from those estimates.
R. 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 that are established by resolution of the
City Council. Those committed amounts cannot be used for any other purpose unless the City
Council removes or changes the specified use by taking the same type of action it employed to
previously commit those amounts.
Assigned – Consists of internally imposed constraints. These constraints consist of amounts
intended to be used by the City for specific purposes but do not meet the criteria to be classified
as restricted or committed. In governmental funds, assigned amounts represent intended uses
established by the governing body itself or by an official to which the governing body delegates
the authority. Pursuant to City Council resolution, the City Council is authorized to establish
assignments of fund balance.
Unassigned – The residual classification for the General Fund which also reflects negative
residual amounts in other funds.
When both restricted and unrestricted resources are available for use, it is the City’s policy to first use
restricted resources, then use unrestricted resources as they are needed. When committed, assigned, or
unassigned resources are available for use, it is the City’s policy to use resources in the following order:
1) committed, 2) assigned, and 3) unassigned.
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NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 current year budgeted General Fund expenditures.
S. Net Position
In the government-wide and proprietary fund financial statements, net position represent the difference
between assets, deferred outflows of resources (if any), 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 their use through external restrictions imposed by creditors, grantors, or laws or regulations of
other governments.
Unrestricted Net Position – All other elements of net position that do not meet the definition of
“restricted” or “net investment in capital assets.”
The City applies restricted resources first when an expense is incurred for which both restricted and
unrestricted resources are available.
T. Risk Management
The City is exposed to various risks of loss related to torts: theft of, damage to, and destruction of assets;
errors and omissions; and natural disasters. The City participates in the League of Minnesota Cities
Insurance Trust (LMCIT), a public entity risk pool for its general property and casualty, workers’
compensation, and other miscellaneous insurance coverage. 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 LMCIT for insurance coverage. The LMCIT agreement provides that the trust will be
self-sustaining through member premiums and will reinsure through commercial companies for claims in
excess of certain limits. The City also carries commercial insurance for certain other risks of loss. Settled
claims resulting from these risks did not exceed insurance coverage in any of the last three fiscal years.
There were no significant reductions in insurance coverage in 2014.
U. Restricted Assets
Restricted assets are cash, investments, and interest accrued thereon; the use of which is limited by
external requirements such as a bond indenture or trust agreements.
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NOTE 2 – CASH AND INVESTMENTS
A. Components of Cash and Investments
Cash and investments at year-end consist of the following:
Deposits 1,927,522$
Investments 82,086,487
Cash on hand 4,465
Total 84,018,474$
Cash and investments are presented in the financial statements as follows:
Cash and temporary investments –
Statement of Net Assets 67,029,121$
Restricted assets – cash and temporary investments –
Statement of Net Assets 16,989,353
Total 84,018,474$
B. Deposits
In accordance with applicable Minnesota Statutes, the City maintains deposits at depository banks
authorized by the City Council, including checking accounts and certificates of deposit.
The following is considered the most significant risk associated with deposits:
Custodial Credit Risk – In the case of deposits, this is the risk that in the event of a bank failure, the
City’s deposits may be lost.
Minnesota Statutes require that all deposits be protected by federal deposit insurance, corporate surety
bond, or collateral. The market value of collateral pledged must equal 110 percent of the deposits not
covered by federal deposit insurance or corporate surety bonds. Authorized collateral includes
treasury bills, notes, and bonds; issues of U.S. government agencies; general obligations rated “A” or
better; revenue obligations rated “AA” or better; irrevocable standard letters of credit issued by the
Federal Home Loan Bank; and certificates of deposit. Minnesota Statutes require that securities
pledged as collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or in
an account at a trust department of a commercial bank or other financial institution that is not owned
or controlled by the financial institution furnishing the collateral. The City has no additional deposit
policies addressing custodial credit risk.
At year-end, the carrying amount of the City’s deposits was $1,927,522 while the balance on the bank
records was $1,974,214. At December 31, 2014, all deposits were fully covered by federal depository
insurance or collateral held by the City’s agent in the City’s name.
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NOTE 2 – CASH AND INVESTMENTS (CONTINUED)
C. Investments
The City has the following investments at year-end:
Concentration Risk
Greater Than
Investment Type Rating Agency Less Than 1 1 to 5 6 to 10 Total 5 Percent
U.S. treasury securities N/R N/R 5,886,649$ 7,187,831$ –$ 13,074,480$ N/A
U.S. treasury securities AAA Moody 57,306 – – 57,306 N/A
U.S. government guaranteed agencies N/R N/R – 3,564,066 – 3,564,066 N/A
U.S. agency debt securities
Federal Home Loan Bank AA S&P – 5,793,918 – 5,793,918 Yes
Federal Home Loan Mortgage Corporation AA S&P 1,752,800 5,122,087 – 6,874,887 Yes
Federal National Mortgage Association AA S&P – 7,573,953 2,005,540 9,579,493 Yes
Repurchase agreement (U.S. agency – FNMA
underlying security) AA S&P 3,718,374 – – 3,718,374 No
Negotiable certificates of deposit N/R N/R 497,827 3,459,070 3,956,897 No
Local government debt securities AA S&P – 2,631,070 – 2,631,070 No
Local government debt securities AA Moody – 1,133,458 – 1,133,458 No
Local government debt securities A Moody 1,001,895 582,303 – 1,584,198 No
Local government debt securities A S&P 355,112 3,308,776 – 3,663,888 No
Investment pool/mutual funds
4M Fund N/R N/R 26,454,452 – – 26,454,452 No
Total investments 39,724,415$ 40,356,532$ 2,005,540$ 82,086,487$
N/A – Not Applicable
N/R – Not Rated
Credit Risk Maturity Duration in Years
Interest Risk –
Investments are subject to various risks, the following of which are considered the most significant:
Credit Risk – This is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. Minnesota Statutes limit the City’s investments to direct obligations or obligations
guaranteed by the United States or its agencies; shares of investment companies registered under the
Federal Investment Company Act of 1940 that receive the highest credit rating, are rated in one of the
two highest rating categories by a statistical rating agency, and all of the investments have a final
maturity of 13 months or less; general obligations rated “A” or better; revenue obligations rated “AA”
or better; general obligations of the Minnesota Housing Finance Agency rated “A” or better; bankers’
acceptances of United States banks eligible for purchase by the Federal Reserve System; commercial
paper issued by United States corporations or their Canadian subsidiaries, rated of the highest quality
category by at least two nationally recognized rating agencies, and maturing in 270 days or less;
Guaranteed Investment Contracts guaranteed by a United States commercial bank, domestic branch of
a foreign bank, or a United States insurance company, and with a credit quality in one of the top two
highest categories; repurchase or reverse purchase agreements and securities lending agreements with
financial institutions qualified as a “depository” by the government entity, with banks that are
members of the Federal Reserve System with capitalization exceeding $10,000,000; that are a
primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; or
certain Minnesota securities broker-dealers. The City’s investment policies do not further address
credit risk.
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NOTE 2 – CASH AND INVESTMENTS (CONTINUED)
Custodial Credit Risk – For investments, this is the risk that in the event of a failure of the
counterparty to an investment transaction (typically a broker-dealer) the City would not be able to
recover the value of its investments or collateral securities that are in the possession of an outside
party. The City does not have a formal investment policy addressing this risk, but typically limits its
exposure by purchasing insured or registered investments, or by control of who holds the securities.
Concentration Risk – This is the risk associated with investing a significant portion of the City’s
investment (considered 5 percent or more) in the securities of a single issuer, excluding
U.S. guaranteed investments (such as treasuries), investment pools, and mutual funds. The City’s
investment policies do not limit the concentration of investments.
Interest Rate Risk – This is the risk of potential variability in the fair value of fixed rate investments
resulting from changes in interest rates (the longer the period for which an interest rate is fixed, the
greater the risk). The City does not have an investment policy limiting the duration of investments.
NOTE 3 – INTERFUND BALANCES AND TRANSFERS
A. Advances To and Advances From Other Funds
In 2014, the Storm Sewer Utility Enterprise Fund advanced $1,720,000 to the Utility Enterprise Fund to
finance an emergency water supply project. The advance will be repaid through annual payments due
each October 31 from 2015 through 2024, consisting of $172,000 principal plus interest on the
outstanding balance at 2.6 percent. Interest expense for 2014 was $7,453.
B. Due To and Due From Other Funds
Interfund receivables and payables at year-end were as follows:
Receivable Fund Payable Fund Amount Reason
General Fund Golden Hills Tax Increment 8,281$ Short-term cash flow
Special Revenue Fund
General Fund Nonmajor governmental funds 41,663$ Short-term cash flow
Storm Sewer Utility Water Utility 179,453$ Current portion of advance
plus accrued interest
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NOTE 3 – INTERFUND BALANCES AND TRANSFERS (CONTINUED)
C. Interfund Transfers
Interfund transfers for the 2014 fiscal year were as follows:
Golden Hills Nonmajor
Tax Inc. Debt Governmental
Transfers Out General Fund Service Fund Funds Total
General Fund –$ –$ 986,710$ 986,710$
Golden Hills Tax Inc. Special Revenue Fund – 5,200,000 159,000 5,359,000
Nonmajor Governmental Funds – – 100,000 100,000
Brookview Operating Enterprise Fund 50,000 – – 50,000
Motor Vehicle Operating Enterprise Fund 50,000 – – 50,000
100,000$ 5,200,000$ 1,245,710$ 6,545,710$
Transfers In
Transfers are used to move revenues from the funds in which they are collected to the funds where they
are to be spent in accordance with statutory, budgetary, or contractual requirements.
NOTE 4 – CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2014 was as follows:
A. Changes in Capital Assets Used in Governmental Activities
Transfers and
Beginning Completed
of Year Additions Deletions Construction End of Year
Capital assets, not depreciated
Land 3,527,685$ –$ –$ –$ 3,527,685$
Construction in progress 5,636,967 3,807,795 – (4,876,896) 4,567,866
Total capital assets, not depreciated 9,164,652 3,807,795 – (4,876,896) 8,095,551
Capital assets, depreciated
Land improvements 4,945,020 32,649 (400,227) 641,577 5,219,019
Buildings and improvements 12,353,227 72,064 – – 12,425,291
Machinery and equipment 10,585,370 1,131,282 (689,928) 295,891 11,322,615
Infrastructure 105,430,655 – – 3,939,428 109,370,083
Total capital assets, depreciated 133,314,272 1,235,995 (1,090,155) 4,876,896 138,337,008
Less accumulated depreciation on
Land improvements (3,266,385) (155,650) 280,227 – (3,141,808)
Buildings and improvements (9,968,852) (266,739) – – (10,235,591)
Machinery and equipment (6,011,454) (808,494) 658,723 – (6,161,225)
Infrastructure (47,759,005) (4,780,928) – – (52,539,933)
Total accumulated depreciation (67,005,696) (6,011,811) 938,950 – (72,078,557)
Net capital assets, depreciated 68,264,265 (4,775,816) (151,205) 4,876,896 66,258,451
Total capital assets, net 75,473,228$ (968,021)$ (151,205)$ –$ 74,354,002$
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NOTE 4 – CAPITAL ASSETS (CONTINUED)
B. Changes in Capital Assets Used in Business-Type Activities
Transfers and
Beginning Completed
of Year Additions Deletions Construction End of Year
Capital assets, not depreciated
Land 857,044$ –$ –$ –$ 857,044$
Construction in progress 1,594,386 833,330 – (1,539,803) 887,913
Total capital assets, not depreciated 2,451,430 833,330 – (1,539,803) 1,744,957
Capital assets, depreciated
Land improvements 2,949,542 117,229 – – 3,066,771
Buildings and improvements 667,657 – – – 667,657
Machinery and equipment 3,928,051 246,188 (132,807) 62,345 4,103,777
Infrastructure – distribution
and collection systems 37,957,559 – – 1,539,803 39,497,362
Total capital assets, depreciated 45,502,809 363,417 (132,807) 1,602,148 47,335,567
Less accumulated depreciation on
Land improvements (2,428,805) (47,440) – – (2,476,245)
Buildings and improvements (447,921) (17,464) – – (465,385)
Machinery and equipment (2,428,861) (316,800) 131,357 (62,345) (2,676,649)
Infrastructure – distribution
and collection systems (11,671,031) (1,162,957) – – (12,833,988)
Total accumulated depreciation (16,976,618) (1,544,661) 131,357 (62,345) (18,452,267)
Net capital assets, depreciated 28,526,191 (1,181,244) (1,450) 1,539,803 28,883,300
Total capital assets, net 30,977,621$ (347,914)$ (1,450)$ –$ 30,628,257$
C. Depreciation Expense by Function
Depreciation expense for the year ended December 31, 2014 was charged to the following functions:
Governmental activities
General government 163,814$
Public safety 288,837
Physical development 5,253,182
Parks and recreation 293,613
Capital assets held by the City’s internal service funds –
charged to the various functions based on usage of the assets 12,365
Total depreciation expense – governmental activities 6,011,811$
Business-type activities
Utility (water and sewer) 771,641$
Storm sewer utility 645,241
Brookview (golf course) operating 124,927
Motor vehicle operating 2,852
Total depreciation expense – business-type activities 1,544,661$
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NOTE 5 – LONG-TERM DEBT
A. Bonds and Certificates of Indebtedness
Final Balance –
Original Issue Interest Rate Issue Date Maturity Date End of Year
Governmental activities
General obligation special assessment bonds
Improvement Bonds of 2005C 5,990,000$ 4.25% 06/01/2005 02/01/2025 5,780,000$
Improvement Bonds of 2006B 7,320,000$ 4.10–4.25% 07/01/2006 02/01/2026 7,110,000
Improvement Bonds of 2007C 4,105,000$ 4.00–4.50% 06/15/2007 02/01/2027 4,035,000
Improvement Bonds of 2008A 6,680,000$ 3.50–4.25% 06/15/2008 02/01/2028 6,625,000
Improvement Bonds of 2009A 7,305,000$ 2.00–4.00% 05/01/2009 02/01/2029 6,015,000
Improvement Refunding Bonds of 2009C 4,880,000$ 2.50–3.00% 05/01/2009 02/01/2016 1,585,000
Improvement Refunding Bonds of 2009D 5,465,000$ 2.00–4.00% 08/19/2009 02/01/2018 3,350,000
Improvement Bonds of 2010A 3,845,000$ 2.00–4.00% 06/15/2010 02/01/2030 3,575,000
Improvement Bonds of 2011A 1,840,000$ 2.00–4.00% 05/15/2011 02/01/2031 1,680,000
Improvement Refunding Bonds of 2011C 4,870,000$ 2.00–3.00% 05/15/2011 02/01/2019 3,210,000
Improvement Bonds of 2012A 1,575,000$ 2.00–3.00% 05/15/2012 02/01/2032 1,500,000
Improvement Refunding Bonds of 2012C 5,960,000$ 2.00–2.25% 05/15/2012 02/01/2025 5,960,000
Improvement Bonds of 2013A 1,735,000$ 1.25–3.00% 05/21/2013 02/01/2033 1,585,000
Improvement Refunding Bonds of 2013B 7,025,000$ 2.00% 05/21/2013 02/01/2026 7,025,000
Improvement Bonds of 2014A 2,335,000$ 1.00-3.40% 06/19/2014 02/01/2035 2,335,000
Improvement Refunding Bonds of 2014C 3,950,000$ 2.00-4.00% 06/19/2014 02/01/2027 3,950,000
65,320,000
General obligation tax increment bonds
T.I. Refunding Bonds of 2005A 1,465,000$ 3.00–3.55% 02/01/2005 02/01/2015 515,000
T.I. Refunding Bonds of 2005B 4,575,000$ 3.75–4.75% 02/01/2005 02/01/2015 1,610,000
T.I. Refunding Bonds of 2006A 11,935,000$ 5.00% 01/01/2006 02/01/2015 2,810,000
4,935,000
General obligation certificates of indebtedness
Equipment Certificates of 2011B 655,000$ 0.70–1.30% 05/15/2011 02/01/2015 220,000
Equipment Certificates of 2012B 725,000$ 0.50–0.75% 05/15/2012 02/01/2016 485,000
Equipment Certificates of 2013A 750,000$ 1.25% 05/21/2013 02/01/2017 750,000
Equipment Certificates of 2014B 750,000$ 0.40-0.90% 06/19/2014 02/01/2018 750,000
2,205,000
General obligation tax abatement bonds
Tax Abatement Refunding Bonds of 2013A 2,075,000$ 1.25% 05/21/2013 02/01/2019 1,705,000
General obligation state-aid street bonds
State-Aid Street Bonds of 2007A 2,560,000$ 4.00–4.125% 03/15/2007 04/01/2027 1,875,000
Unamortized premiums on debt issued 1,221,767
Compensated absences payable 1,508,036
Net OPEB obligation 623,993
Total governmental activity
long-term liabilities 79,393,796
Business-type activities
General obligation revenue bonds
Utility Revenue Bonds of 2006C 1,945,000$ 4.00–4.15% 07/01/2006 02/01/2021 1,040,000
Total government-wide long-term liabilities 80,433,796$
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NOTE 5 – LONG-TERM DEBT (CONTINUED)
B. Descriptions of Bonds and Certificates of Indebtedness
Special Assessment Bonds – These bonds are payable primarily from special assessments levied
on the properties benefiting from the improvements funded by these issues. Any deficiencies in
revenue to fund these issues will be provided from general property taxes.
Tax Increment Bonds – The City has established tax increment financing districts and has issued
general obligation tax increment bonds in accordance with Minnesota Statutes, Chapters
§ 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.
Certificates of Indebtedness – The City has four outstanding issues of general obligation
certificates of indebtedness, issued in accordance with Minnesota Statute § 412.301 to finance
various equipment purchases, which will be repaid primarily with ad valorem tax levies.
Tax Abatement Bonds – The City has one outstanding issue of general obligation tax abatement
refunding bonds, issued in accordance with Minnesota Statute § 469.1813 to finance various
improvements. The bonds will be repaid primarily with ad valorem tax levies.
State-Aid Street Bonds – The City has one outstanding issue of general obligation state-aid
street bonds, issued in accordance with Minnesota Statute § 162.18 to finance various street
improvements. The bonds will be repaid primarily with state-aid.
Utility Revenue Bonds – These bonds were issued for improvements or projects that directly
benefit the Storm Sewer Utility Fund and will be repaid from revenue sources of that fund.
Improvement Refunding Bonds of 2012C – In May 2012, the City issued $5,960,000 of
G.O. Improvement Refunding Bonds, Series 2012C which will be used to refund the 2016
through 2025 maturities of the City’s G.O. Improvement Bonds, Series 2005C, totaling
$5,715,000, on their February 1, 2015 call date. Until the call date, the City will make all debt
service payments on the 2005C issue, and all debt service on the 2012C issue will be paid from
the refunding escrow account. This “crossover refunding” will reduce the City’s total future debt
service payments by $656,975 and result in a present value savings of $567,016.
Improvement Refunding Bonds of 2013B – In May 2013, the City issued $7,025,000 of
G.O. Improvement Refunding Bonds, Series 2013B which will be used to refund the 2017
through 2026 maturities of the City’s G.O. Improvement Bonds, Series 2006B, totaling
$6,945,000, on their February 1, 2016 call date. Until the call date, the City will make all debt
service payments on the 2006B issue, and all debt service on the 2013B issue will be paid from
the refunding escrow account. This “crossover refunding” will reduce the City’s total future debt
service payments by $1,169,090 and result in a present value savings of $960,871.
Improvement Refunding Bonds of 2014C – In June 2014, the City issued $3,950,000 of
G.O. Improvement Refunding Bonds, Series 2014C which will be used to refund the 2018
through 2027 maturities of the City’s G.O. Improvement Bonds, Series 2007C, totaling
$3,885,000, on their February 1, 2017 call date. Until the call date, the City will make all debt
service payments on the 2007C issue, and all debt service on the 2014C issue will be paid from
the refunding escrow account. This “crossover refunding” will reduce the City’s total future debt
service payments by $394,750 and result in a present value savings of $343,445.
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NOTE 5 – LONG-TERM DEBT (CONTINUED)
C. Changes in Long-Term Debt
Balance –
Beginning Balance – Due Within
of Year Additions Deletions End of Year One Year
Governmental activities
G.O. special assessment bonds 62,230,000$ 6,285,000$ 3,195,000$ 65,320,000$ 8,930,000$
G.O. tax increment bonds 9,290,000 – 4,355,000 4,935,000 4,935,000
G.O. certificates of indebtedness 2,145,000 750,000 690,000 2,205,000 710,000
G.O. tax abatement bonds 2,075,000 – 370,000 1,705,000 345,000
G.O. state-aid street bonds 1,985,000 – 110,000 1,875,000 115,000
Unamortized premiums on debt issued 1,116,249 274,684 169,166 1,221,767 –
Compensated absences 1,524,119 1,081,096 1,097,179 1,508,036 988,572
Net OPEB obligation 568,694 179,880 124,581 623,993 –
Total governmental activities 80,934,062 8,570,660 10,110,926 79,393,796 16,023,572
Business-type activities
Utility revenue bonds 2,550,000 – 1,510,000 1,040,000 130,000
Total business-type activities 83,484,062$ 8,570,660$ 11,620,926$ 80,433,796$ 16,153,572$
D. Minimum Debt Payments
Minimum annual payments to retire bonds and certificates of indebtedness are as follows:
Year Ending
December 31, Principal Interest Principal Interest Principal Interest
2015 8,930,000$ 1,999,627$ 4,935,000$ 117,629$ 710,000$ 17,244$
2016 10,585,000 1,612,300 – – 745,000 9,981
2017 7,320,000 1,276,748 – – 500,000 4,625
2018 3,640,000 1,085,745 – – 250,000 1,125
2019 2,925,000 995,234 – – – –
2020–2024 16,130,000 3,876,169 – – – –
2025–2029 13,885,000 1,351,418 – – – –
2030–2034 1,740,000 136,460 – – – –
2035 165,000 2,805 – – – –
65,320,000$ 12,336,506$ 4,935,000$ 117,629$ 2,205,000$ 32,975$
Governmental Activities
Assessment Bonds G.O. Tax Increment Bonds of Indebtedness
G.O. CertificatesG.O. Special
Year Ending
December 31, Principal Interest Principal Interest Principal Interest
2015 345,000$ 19,156$ 115,000$ 73,931$ 130,000$ 40,218$
2016 345,000 14,844 120,000 69,231 135,000 34,785
2017 345,000 10,531 120,000 64,431 140,000 29,148
2018 340,000 6,250 125,000 59,532 150,000 23,202
2019 330,000 2,063 130,000 54,431 155,000 16,911
2020–2024 – – 745,000 186,197 330,000 13,902
2025–2027 – – 520,000 32,794 – –
1,705,000$ 52,844$ 1,875,000$ 540,547$ 1,040,000$ 158,166$
Tax Abatement Bonds
Governmental Activities Business-Type Activities
Utility Revenue BondsState-Aid Street Bonds
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NOTE 5 – LONG-TERM DEBT (CONTINUED)
E. 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
Tax increment bonds Street and site Tax increment 100% 5,159,229$
improvements financing
Series 2005A 2005–2015 524,141$ 537,080$
Series 2005B 2005–2015 1,648,238$ 1,719,192$
Series 2006A 2006–2015 2,880,250$ 2,436,500$
Utility revenue bonds Storm sewer Utility charges 100% 2,278,128$
improvements
Series 2006C 2006–2021 1,198,166$ 170,445$
Revenue Pledged Current Year
F. Conduit Debt Obligations
At times, the City has issued various types of revenue bonds to provide financial assistance to private
sector, nonprofit, or governmental entities to finance the acquisition or construction of facilities deemed
to be in the public interest. The bonds are secured by the property financed and are payable solely from
payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the
acquired facilities transfers to the private sector entity served by the bond issuance. Neither the City, nor
any political subdivision thereof, is obligated in any manner for repayment of the bonds. Accordingly, the
bonds are not reported as liabilities in the City’s financial statements. As of December 31, 2014, the
following conduit debt issues were outstanding:
Principal
Number Outstanding
Type of Debt Years Issued of Issues at Year-end
Multi-family housing revenue bonds 1999–2006 2 5,382,438$
Governmental/nonprofit revenue bonds 2007–2009 2 4,619,123
4 10,001,561$
G. Pay-As-You-Go Tax Increment Note
The City has a development agreement with a private developer for a property in the North Wirth Tax
Increment District. As part of this agreement, the City has agreed to reimburse the developer for certain
environmental remediation costs through a pay-as-you-go tax increment note. The note provides for the
payment of principal equal to the developer’s costs, plus interest at 6 percent (interest accrual
commencing upon the developer completing the first two phases of the project). Payments of the note will
be made at the lesser of the scheduled note payments or the actual net tax increment received during the
period specified in the agreement. The note will be cancelled at the end of the agreement term, whether it
has been fully repaid or not. The outstanding principal balance of this note as of December 31, 2014 is
$267,736. This note is not included in the City’s long-term debt, because repayment is required only to
the extent sufficient tax increments are received. The City’s position is that this is an obligation to assign
future and uncertain revenue sources and, as such, is not actual debt in substance.
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NOTE 6 – COMPONENTS OF FUND BALANCE
At December 31, 2014, the City had the following fund balances:
Golden Hills Street Golden Hills Street
Tax Increment Reconstruction Tax Increment Reconstruction
General Special Revenue Debt Service Debt Service Capital Project Nonmajor Total
Nonspendable
Prepaid items 1,256$ –$ –$ –$ –$ –$ 1,256$
Restricted for
Debt service – – 25,418,614 5,823,682 – 1,408,310 32,650,606
Redevelopment – 7,021,826 – – – 437,564 7,459,390
Street improvements – – – – 2,446,729 – 2,446,729
State-aid street improvements – – – – – 2,284,063 2,284,063
Douglas Drive improvements – – – – – 2,301,036 2,301,036
Cemetery maintenance – – – – – 75,470 75,470
DWI enforcement – – – – – 90,832 90,832
Total restricted – 7,021,826 25,418,614 5,823,682 2,446,729 6,597,275 47,308,126
Committed to
Human service needs – – – – – 168,633 168,633
Equipment replacement – – – – – 575,000 575,000
Total committed – – – – – 743,633 743,633
Assigned to
Street improvements – – – – 505,647 260,616 766,263
Cable improvements – – – – – 133,697 133,697
Park improvements – – – – – 438,218 438,218
Equipment replacement – – – – – 2,357,074 2,357,074
Capital improvements – – – – – 3,528,778 3,528,778
Self-insurance 1,500,000 – – – – – 1,500,000
Total assigned 1,500,000 – – – 505,647 6,718,383 8,724,030
Unassigned 8,640,108 – – – – – 8,640,108
Total 10,141,364$ 7,021,826$ 25,418,614$ 5,823,682$ 2,952,376$ 14,059,291$ 65,417,153$
NOTE 7 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN
A. Plan Description
The City provides post-employment benefits to certain eligible employees through the City’s Other
Post-Employment Benefits (OPEB) Plan, a single-employer defined benefit plan administered by the
City. All post-employment benefits are based on contractual agreements with employee groups. These
contractual agreements do not include any specific contribution or funding requirements. The plan does
not issue a publicly available financial report. These benefits are summarized as follows:
Post-Employment Insurance Benefits – All retirees of the City have the option under state law to
continue their medical insurance coverage through the City from the time of retirement until the
employee reaches the age of eligibility for Medicare. For members of all employee groups, the retiree
must pay the full premium to continue coverage for medical and dental insurance. 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, whether the premiums are paid by the City or the retiree. Consequently,
participating retirees are considered to receive a benefit known as an “implicit rate subsidy.” This
benefit relates to the assumption that the retiree receives 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.
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NOTE 7 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
Termination Pay Benefits – Certain employee groups may also become eligible to earn a
termination pay benefit payable at retirement in an amount equal to one day of pay per year of service
multiplied by their daily rate of pay at retirement. Eligibility for this benefit is based on years of
service and/or minimum age requirements. These benefits generally are paid into a post-retirement
healthcare savings plan administered by the Minnesota State Retirement System.
B. Funding Policy
The required contribution is based on projected pay-as-you-go financing requirements, with additional
amounts to pre-fund benefits as determined annually by the City.
C. Annual OPEB Cost and Net OPEB Obligation
The City’s annual OPEB cost (expense) is calculated based on annual required contributions (ARC) of the
City, an amount determined on an actuarially determined basis in accordance with the parameters of
GASB Statement Nos. 43 and 45. The ARC represents a level funding that, if paid on an ongoing basis, is
projected to cover normal costs each year and amortize any unfunded actuarial liabilities (or funding
excess) over a period not to exceed 30 years. The annual OPEB cost is accrued in the Payroll Benefits
Internal Service Fund. The liability is funded through payments from the City’s General Fund and
enterprise funds.
The following table shows the components of the City’s annual OPEB cost for the year, the amount
actually contributed to the plan, and the changes in the City’s net OPEB obligation to the plan:
ARC 175,758$
Interest on net OPEB obligation 25,592
Adjustment to annual required contribution (21,470)
Annual OPEB cost (expense)179,880
Contributions made 124,581
Increase in net OPEB obligation 55,299
Net OPEB obligation – beginning of year 568,694
Net OPEB obligation – end of year 623,993$
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net
OPEB obligation for the current and preceding year are as follows:
Percentage of
Fiscal Year Ended Annual Employer Annual OPEB Net OPEB
December 31, OPEB Cost Contribution Cost Contributed Obligation
2012 186,703$ 57,899$ 31.0% 505,599$
2013 192,577$ 129,482$ 67.2% 568,694$
2014 179,880$ 124,581$ 69.3% 623,993$
D. Funded Status and Funding Progress
As of January 1, 2014, the most recent actuarial valuation date, the actuarial accrued liability for benefits
and unfunded actuarial accrued liability (UAAL) were both $1,714,926, as the plan was unfunded. The
covered payroll (annual payroll of active employees covered by the plan) was $8,825,950 and the ratio of
the UAAL to the covered payroll was 19.4 percent.
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NOTE 7 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability occurrence of events far into the future. Examples include assumptions
about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the
funded status of the plan and ARC of the employer are subject to continual revision as actual results are
compared with past expectations and new estimates are made about the future. The Schedule of Funding
Progress immediately following the notes to basic financial statements presents multi-year trend
information about whether the actuarial value of plan assets is increasing or decreasing over time relative
to the actuarial accrued liabilities for benefits.
E. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and the plan members) and include the types of benefits provided at the time
of each valuation and the historical pattern of sharing of benefit costs between the employer and plan
members to that point. The actuarial methods and assumptions used include techniques that are designed
to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of
assets, consistent with the long-term perspective of the calculations.
In the January 1, 2014 actuarial valuation, the projected unit credit actuarial cost method was used. The
actuarial assumptions included: a 4.5 percent investment rate of return (net of administrative expenses)
based on the City’s own investments; an annual payroll growth rate of 3.75 percent; a general inflation
rate of 3.0 percent; and an annual healthcare trend rate of 9.0 percent initially, reduced by decrements to
an ultimate rate of 5.0 percent after 12 years. The UAAL is being amortized on a level dollar basis over a
closed period. The remaining amortization periods at January 1, 2014 for the various amortization layers
ranged from 24 to 30 years.
NOTE 8 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE
A. Plan Description
All full-time and certain part-time employees of the City are covered by defined benefit plans
administered by the Public Employees’ Retirement Association (PERA) of Minnesota. PERA administers
the General Employees’ Retirement Fund (GERF) and the Public Employees Police and Fire Fund
(PEPFF), which are cost-sharing, multiple-employer retirement plans. These plans are established and
administered in accordance with Minnesota Statutes, Chapters 353 and 356.
GERF members belong to either the Coordinated or Basic Plan. Coordinated Plan members are covered
by Social Security and Basic Plan members are not. All new members must participate in the Coordinated
Plan. All police officers, firefighters, and peace officers who qualify for membership by statute are
covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors
upon death of eligible members. Benefits are established by state statute, and vest after five years of
credited service. The defined retirement 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.
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NOTE 8 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
Two methods are used to compute benefits for PERA’s Coordinated and Basic Plan members. The
retiring member receives the higher of a step-rate benefit accrual formula (Method 1) or a level accrual
formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of
average salary for each of the first 10 years of service and 2.7 percent for each remaining year. The
annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each of the first
10 years of service and 1.7 percent for each remaining year. Under Method 2, the annuity accrual rate is
2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for
each year of service. For PEPFF members, the annuity accrual rate is 3.0 percent for each year of service.
For all PEPFF and GERF members hired prior to July 1, 1989 whose annuity is calculated using
Method 1, a full annuity is available when age plus years of service equal 90. Normal retirement age is 55
for PEPFF members and 65 for Basic and Coordinated Plan members hired prior to July 1, 1989. Normal
retirement age is the age for unreduced Social Security benefits capped at 66 for Coordinated Plan
members hired on or after July 1, 1989. A reduced retirement annuity is also available to eligible
members seeking early retirement.
There are different types of annuities available to members upon retirement. A single-life annuity is a
lifetime annuity that ceases upon the death of the retiree—no survivor annuity is payable. There are also
various types of joint and survivor annuity options available which will be payable over joint lives.
Members may also leave their contributions in the fund upon termination of public service in order to
qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to
members who leave public service, but before retirement benefits begin.
The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to
active plan participants.
PERA issues a publicly available financial report that includes financial statements and required
supplementary information for GERF and PEPFF. That report may be obtained at mnpera.org; by writing
to PERA at 60 Empire Drive, Suite 200, St. Paul, Minnesota 55103-2088; or by calling (651) 296-7460 or
(800) 652-9026.
B. Funding Policy
Minnesota Statutes, Chapter 353 sets the rates for employer and employee contributions. These statutes
are established and amended by the State Legislature. The City makes annual contributions to the pension
plans equal to the amount required by state statutes. GERF Basic and Coordinated Plan members were
required to contribute 9.1 percent and 6.25 percent, respectively, of their annual covered salary in 2014.
PEPFF members were required to contribute 10.2 percent of their annual covered salary in 2014. In 2014,
the City was required to contribute the following percentages of annual covered payroll: 11.78 percent for
Basic Plan members, 7.25 percent for Coordinated Plan members, and 15.3 percent for PEPFF members.
The City’s contributions for the past three years ending December 31, which were equal to the
contractually required contributions for each year as set by state statutes, were as follows:
GERF PEPFF
2012 438,909$ 410,027$
2013 442,074$ 409,963$
2014 458,730$ 449,416$
Contribution rates will increase on January 1, 2015 in the Coordinated Plan (6.5 percent for members and
7.5 percent for employers) and the PEPFF (10.8 percent for members and 16.2 percent for employers).
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NOTE 9 – DEFINED CONTRIBUTION PENSION PLAN – STATE-WIDE
The City Council members are covered by the Public Employees Defined Contribution Plan (PEDCP), a
multiple-employer deferred compensation plan administered by PERA. The PEDCP is a tax qualified plan
under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are
tax deferred until time of withdrawal.
Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less
administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies the employee and employer
contribution rates for those qualified personnel who elect to participate. An eligible elected official who
decides to participate contributes 5 percent of salary, which is matched by the elected official’s employer.
For salaried employees, employer contributions must be a fixed percentage of salary. Employer and
employee contributions are combined and used to purchase shares in one or more of the seven accounts of
the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2 percent of
employer contributions and 4/10 of 1 percent of the assets in each member’s account annually. Total
contributions made by the City during the last three fiscal years ended December 31, which were equal to
the required contributions were:
Required
Employees Employer Employees Employer Rates
2012 2,375$ 2,375$ 5.00% 5.00% 5.00%
2013 2,377$ 2,377$ 5.00% 5.00% 5.00%
2014 1,636$ 1,636$ 5.00% 5.00% 5.00%
Amount Percentage of Covered Payroll
NOTE 10 – DEFINED BENEFIT PENSION PLAN – FIRE RELIEF ASSOCIATION
A. Plan Description
All members of the Golden Valley Fire Department (the Department) are covered by a single-employer
defined benefit pension plan administered by the Golden Valley Fire Department Relief Association (the
Association). The plan was established in 1943, and operates under the provisions of
Minnesota Statutes § 69 and § 424, as amended. The Association provides retirement, disability, and
death benefits to plan members or their beneficiaries. Benefits are established in accordance with state
statutes, and can be amended by the Association within the parameters provided therein. The defined
retirement benefits are based on a member’s years of service, and vest after 10 years of credited service.
The Association issues a publicly available financial report that includes financial statements and required
supplementary information. A copy of the report may be obtained at Golden Valley City Hall.
B. Summary of Significant Accounting Policies
The Association’s financial statements are prepared using the accrual basis of accounting. The
Association is comprised of volunteers; therefore, members have no contribution requirements. The
City’s contributions are recognized when due and a formal commitment to provide the contributions has
been made. Benefits and refunds are recognized when due and payable in accordance with the terms of
the plan. All plan investments are reported at fair value. Securities traded on a national exchange are
valued at the last reported sales price on the Association’s Balance Sheet date.
C. Funding Policy
Minnesota Statutes § 69.772 sets the minimum contribution requirement for the City on an annual basis, a
portion of which is paid by the state. The 2014 state contribution of $139,440 is reported as a revenue and
expenditure/expense by the City. These statutes are established and amended by the State Legislature. The
Association is comprised of volunteers, and no member contribution is required.
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NOTE 10 – DEFINED BENEFIT PENSION PLAN – FIRE RELIEF ASSOCIATION
(CONTINUED)
D. Annual Pension Cost
The City’s annual pension cost and related information for the fiscal year ended December 31, 2013, the
most recent year available, is as follows:
Annual pension cost – total 182,081$
Contributions made
City 40,155$
State-aid 141,926$
Actuarial valuation date 12/31/2013
Actuarial cost method Entry age normal
Amortization method Level dollar closed
Remaining amortization period
Normal cost 20 years
Prior service cost 10 years
Asset valuation method Market
Actuarial assumptions
Investment rate of return 5%
Projected salary increases Not applicable
Inflation rate Not applicable
Cost of living adjustments None
E. Three-Year Trend Information
Fiscal Year
Ended Annual Pension Percentage of Net Pension
December 31, Cost (APC) APC Contributed Obligation
2011 163,286$ 100% –$
2012 144,246$ 100% –$
2013 182,081$ 100% –$
F. Schedule of Funding Progress
Actuarial (Unfunded)/Assets
Valuation Date – Actuarial Accrued in Excess of Funded
December 31, Value of Assets Liability (AAL) AAL (UAAL) Ratio
2013 4,500,389$ 3,365,216$ 1,135,173$ 133.7%
The Schedule of Funding Progress immediately following the notes to basic financial statements presents
multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing
over time relative to the actuarial accrued liabilities for benefits.
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NOTE 11 – FLEXIBLE BENEFIT PLAN
The City offers three types of flexible spending accounts: medical premiums, medical expenses, and
dependant care expenses. Eligible employees can elect to participate by contributing pre-tax dollars
withheld from payroll checks to the plan for healthcare and dependent care benefits. Payments are made
from the plan to participating employees upon submitting a request for reimbursement of eligible
expenses actually incurred by the participant.
Before the beginning of the plan year, which is from January 1 to December 31, each participant
designates a total amount of pre-tax dollars to be contributed to the plan during the year. For the medical
expense account, the City is contingently liable for claims against the total amount of participants’ annual
contributions to the plan, whether or not such contributions have been made.
All plan activity is recorded in the City’s General Fund. Assets of the plan are held in the City’s payroll
checking account. Amounts withheld to pay for employee medical insurance premiums are administered
and paid out directly by the City’s finance department. Medical expense and dependant care expense
accounts are administered by the Stanton Group—a benefit consulting firm. Claims are made directly to
the Stanton Group by plan participants. The Stanton Group then reimburses the participants and bills the
City for these reimbursements.
All plan property and income attributable to that property is solely the property of the City subject to the
claims of the City’s general creditors. Participants’ rights under the plan are equal to those of general
creditors of the City in an amount equal to the eligible healthcare and dependent care expenses incurred
by the participants. The City believes it unlikely that it will use the assets to satisfy the claims of general
creditors in the future.
NOTE 12 – TAX INCREMENT FINANCING DISTRICTS
The City is the administering authority for the following tax increment financing districts:
Golden Hills North Wirth
Redevelopment Redevelopment
District No. 1503 District No. 1505
Authorizing law M.S. 462 M.S. 462
Year established 1984 2004
Duration of district 31 years 24 years
Tax capacity – taxes payable 2014
Original 287,000$ 6,650$
Current 3,617,620 37,900
Captured – retained 3,330,620$ 31,250$
Total G.O. tax increment bonds 38,125,000$ –$
Total G.O. tax increment capital
Advanced refunding bonds 27,835,000 –
Total bonds issued 65,960,000 –
Principal payments 61,025,000 –
Outstanding at December 31, 2014 4,935,000$ –$
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NOTE 13 – JOINT POWERS AGREEMENTS
A. Bassett Creek Water Management Commission
The City is a member of a joint powers agreement, together with the cities of Medicine Lake, Plymouth,
Robbinsdale, Minneapolis, Minnetonka, New Hope, Crystal, and St. Louis Park, which establishes the
authority for the Bassett Creek Water Management Commission (the Commission). The Commission was
created to provide for the improvement and development of Bassett Creek as a storm sewer to channel
storm waters from member communities to the Mississippi River. Each member city is entitled to appoint
one representative to the Commission. The nine-member Commission develops a budget for the year each
July 1. Each member city contributes funds to cover the budgeted costs of operations based half on the
assessed valuation of all taxable property, and half on 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, 2015, which are available at Golden Valley City Hall:
Total assets – all current 5,267,257$
Total liabilities – all current 246,827
Net position 5,020,430$
Revenue 1,432,634$
Expenses 668,563
Change in net position 764,071$
Of the total revenue, $490,344 represented assessments to member cities. The City’s 2014 portion was
$123,033, or 25.1 percent, of total assessments paid by members.
B. Joint Water Commission
The City is a member of a joint powers agreement, together with the cities of Crystal and New Hope,
which established a Joint Water Commission (JWC). The JWC was created in 1963 to provide for the
creation and maintenance of a joint water supply, storage, and distribution system through which water
purchased from the City of Minneapolis can be supplied to the population of the member cities.
Each member city is entitled to appoint one member to the JWC. Original construction costs were
allocated to the member cities based on percentages agreed upon in the joint powers agreement. All
subsequent operating and maintenance costs are apportioned to and paid by each member city on the basis
of water usage. Under the terms of the joint powers agreement, upon termination the accumulated assets
of the JWC shall be divided amongst the member cities in a manner to be determined and unanimously
approved by the member cities. Because the manner in which the JWC’s assets would be divided upon
termination is not specified, it is not practical for the City to determine its portion of JWC assets.
Therefore, the City’s Utility Enterprise Fund does not record any amount as an equity investment or
contributed capital (for construction costs paid by other funds) related to the JWC.
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NOTE 13 – JOINT POWERS AGREEMENTS (CONTINUED)
The following financial information is from the JWC’s audited financial statements for the year ended
December 31, 2014, which are available at Golden Valley City Hall:
Total assets 10,023,890$
Total liabilities 816,533
Net position 9,207,357$
Revenue 11,729,035$
Expenses 6,599,623
Change in net position 5,129,412$
Of the total revenues, $11,601,614 represented assessments paid by member cities. Of the total member
assessments, $4,954,836, or 42.7 percent, was paid by the City.
NOTE 14 – 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. Future Change in Accounting Standards
Governmental Accounting Standards Board (GASB) Statement No. 68 replaces the requirements of
Statement No. 27, Accounting for Pensions by State and Local Governmental Employers and Statement
No. 50, Pension Disclosures, as they relate to employer governments that provide pensions through
pension plans administered as trusts or similar arrangements that meet certain criteria. GASB Statement
No. 68 requires governments providing defined benefit pensions to recognize their long-term obligation
for pension benefits as a liability for the first time, and to more comprehensively and comparably measure
the annual costs of pension benefits. This statement will be effective for the City’s 2015 fiscal year. The
City has not yet determined the financial statement impact of adopting this new standard.
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NOTE 14 – CONTINGENCIES AND COMMITMENTS (CONTINUED)
E. Construction Commitments
At December 31, 2014, the City is committed to various construction contracts for the improvement of
city property. The City’s remaining commitment under these contracts is approximately $786,110.
NOTE 15 – SUBSEQUENT EVENTS
In May 2015, the City approved the authorization to issue three new bonds. The first issue is $1,870,000
of General Obligation Improvement Bonds, Series 2015A. The proceeds of the issue will be used for
street improvements. The second issue is $800,000 of General Obligation Equipment Certificates,
Series 2015B. The proceeds of this issue will be used for equipment purchases. The third issue is
$6,695,000 of General Obligation Improvement Refunding Bonds, Series 2015C. The refunding bonds
will be used to call the 2018 through 2028 maturities of the City’s General Obligation Improvement
Bonds, Series 2008A totaling $6,420,000.
THIS PAGE INTENTIONALLY LEFT BLANK
REQUIRED SUPPLEMENTARY INFORMATION
(Unfunded)
Actuarial Actuarial Assets
Valuation Date – Accrued in Excess of Funded
December 31, Value of Assets Liability (AAL)AAL (UAAL) Ratio
2011 3,977,765$ 3,767,599$ 210,166$ 105.6%
2012 4,210,687$ 3,630,070$ 580,617$ 116.0%
2013 4,500,389$ 3,365,216$ 1,135,173$ 133.7%
(Unfunded) Unfunded
Fiscal Year Actuarial Actuarial Actuarial Liability as a
Ended Valuation Date – Accrued Actuarial Value Accrued Covered Percentage of
December 31, January 1, Liability of Plan Assets Liability Payroll Payroll
2010 2010 1,641,256$ –$ 1,641,256$ – % 8,247,626$ 19.9%
2012 2012 1,710,953$ –$ 1,710,953$ – % 8,136,559$ 21.0%
2014 2014 1,714,926$ –$ 1,714,926$ – % 8,825,950$ 19.4%
Ratio
Funded
Schedule of Funding Progress
CITY OF GOLDEN VALLEY
Required Supplementary Information
Golden Valley Fire Department Relief Association
Schedule of Funding Progress
Other Post-Employment Benefits Plan
City of Golden Valley
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SUPPLEMENTAL INFORMATION
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NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Human Service Foundation – 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. A commission has been appointed to administer this fund.
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.
HRA General – used to account for the general activities of the City’s HRA, a blended component unit.
DEBT SERVICE FUNDS
Certificates of Indebtedness – used to account for accumulation of, resources for, and payment of debt
service on the City’s general obligation certificates of indebtedness.
Tax Abatement Bonds – used to account for accumulation of, resources for, and payment of debt service
on bonds sold to finance improvements within the Trunk Highway 55 and Boone Avenue intersection.
CAPITAL PROJECT FUNDS
Building Fund – used to provide financing for major capital improvements made to the City’s buildings.
Capital Improvement Fund – used to provide financing for major street and streetlight projects in the
City, including a portion of the financing for the street reconstruction program.
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.
State-Aid Construction Fund – used to account for state construction aid received to finance qualifying
road projects.
Douglas Drive Improvement Fund – used to account for street improvements related to Douglas Drive
within the City.
HRA Capital Project Funds – used to account for the expenditures of the City’s HRA Housing Program
and the redevelopment expenditures in the City’s tax increment districts: Golden Hills No. 1503, North
Wirth No. 1505, and Highway 55 West No. 1506.
Special Revenue Debt Service Capital Project Totals
Assets
Cash and temporary investments 373,576$ 1,408,310$ 12,275,302$ 14,057,188$
Receivables
Special assessments – – 53,158 53,158
Accounts 4,391 – 267,922 272,313
Accrued interest 3,573 – – 3,573
Due from other governmental units – – 445,099 445,099
Total assets 381,540$ 1,408,310$ 13,041,481$ 14,831,331$
Liabilities
Accounts payable 10,874$ –$ 192,356$ 203,230$
Contracts payable – – 31,408 31,408
Deposits – – 426,081 426,081
Due to other funds 1,403 – 40,260 41,663
Total liabilities 12,277 – 690,105 702,382
Deferred inflows of resources
Unavailable revenue – special assessments – – 53,158 53,158
Unavailable revenue – other – – 16,500 16,500
Total deferred inflows of resources – – 69,658 69,658
Fund balances
Restricted 200,630 1,408,310 4,988,335 6,597,275
Committed 168,633 – 575,000 743,633
Assigned – – 6,718,383 6,718,383
Total fund balances 369,263 1,408,310 12,281,718 14,059,291
Total liabilities, deferred inflows of
resources, and fund balances 381,540$ 1,408,310$ 13,041,481$ 14,831,331$
CITY OF GOLDEN VALLEY
Nonmajor Governmental Funds
Combining Balance Sheet
December 31, 2014
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Special Revenue Debt Service Capital Project Totals
Revenue
Ad valorem taxes –$ 1,061,919$ –$ 1,061,919$
Tax increments – – 25,033 25,033
Special assessments – – 73,208 73,208
Franchise taxes – – 1,048,227 1,048,227
Intergovernmental revenue 16,200 – 1,077,971 1,094,171
Charges for services – – 48,623 48,623
Investment income 2,650 6,025 96,887 105,562
Other revenue
Contributions 140 – – 140
Lawful gambling proceeds 44,279 – – 44,279
Miscellaneous 67,457 89,166 261,569 418,192
Total revenue 130,726 1,157,110 2,631,518 3,919,354
Expenditures
Current
General government 208,061 – – 208,061
Public safety 47,082 – – 47,082
Capital outlay – – 4,280,382 4,280,382
Debt service
Principal – 1,060,000 110,000 1,170,000
Interest and fiscal charges – 52,954 93,671 146,625
Total expenditures 255,143 1,112,954 4,484,053 5,852,150
Excess (deficiency) of revenue
over expenditures (124,417) 44,156 (1,852,535) (1,932,796)
Other financing sources (uses)
Sale of capital assets – – 222,432 222,432
Bonds issued – 31,200 718,800 750,000
Transfers in 159,000 – 1,086,710 1,245,710
Transfers (out) – – (100,000) (100,000)
Total other financing sources 159,000 31,200 1,927,942 2,118,142
Net change in fund balances 34,583 75,356 75,407 185,346
Fund balances
Beginning of year 334,680 1,332,954 12,206,311 13,873,945
End of year 369,263$ 1,408,310$ 12,281,718$ 14,059,291$
CITY OF GOLDEN VALLEY
Nonmajor Governmental Funds
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances
Year Ended December 31, 2014
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Human
Service DWI HRA
Foundation Cemetery Enforcement General Totals
Assets
Cash and temporary investments 175,116$ 75,470$ 90,832$ 32,158$ 373,576$
Receivables
Accounts 4,391 – – – 4,391
Accrued interest – – – 3,573 3,573
Total assets 179,507$ 75,470$ 90,832$ 35,731$ 381,540$
Liabilities
Accounts payable 10,874$ –$ –$ –$ 10,874$
Due to other funds – – – 1,403 1,403
Total liabilities 10,874 – – 1,403 12,277
Fund balances
Restricted for cemetery maintenance – 75,470 – – 75,470
Restricted for DWI enforcement – – 90,832 – 90,832
Restricted for redevelopment – – – 34,328 34,328
Committed for human service needs 168,633 – – – 168,633
Total fund balances 168,633 75,470 90,832 34,328 369,263
Total liabilities and fund balances 179,507$ 75,470$ 90,832$ 35,731$ 381,540$
CITY OF GOLDEN VALLEY
Nonmajor Special Revenue Funds
Combining Balance Sheet
December 31, 2014
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Human
Service DWI
Foundation Cemetery Enforcement HRA General Totals
Revenue
Intergovernmental revenue –$ –$ 16,200$ –$ 16,200$
Investment income 1,279 591 763 17 2,650
Other revenue
Contributions 140 – – – 140
Lawful gambling proceeds 44,279 – – – 44,279
Miscellaneous 31,556 1,600 34,301 – 67,457
Total revenue 77,254 2,191 51,264 17 130,726
Expenditures
Current
General government
Planning and administration – – – 140,000 140,000
Operating supplies 11,844 – – – 11,844
Professional services 40,500 – – 15,717 56,217
Public safety
Salaries – – 2,308 – 2,308
Operating supplies – – 44,774 – 44,774
Total expenditures 52,344 – 47,082 155,717 255,143
Excess (deficiency) of
revenue over expenditures 24,910 2,191 4,182 (155,700) (124,417)
Other financing sources
Transfers in – – – 159,000 159,000
Net change in fund balances 24,910 2,191 4,182 3,300 34,583
Fund balances
Beginning of year 143,723 73,279 86,650 31,028 334,680
End of year 168,633$ 75,470$ 90,832$ 34,328$ 369,263$
CITY OF GOLDEN VALLEY
Nonmajor Special Revenue Funds
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances
Year Ended December 31, 2014
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Certificates Tax
of Abatement
Indebtedness Bonds Totals
Assets
Cash and temporary investments 412,861$ 995,449$ 1,408,310$
Fund balances
Restricted for debt service 412,861$ 995,449$ 1,408,310$
CITY OF GOLDEN VALLEY
Nonmajor Debt Service Funds
Combining Balance Sheet
December 31, 2014
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Certificates Tax
of Abatement
Indebtedness Bonds Totals
Revenue
Ad valorem taxes 761,919$ 300,000$ 1,061,919$
Investment income – 6,025 6,025
Other revenue
Miscellaneous – 89,166 89,166
Total revenue 761,919 395,191 1,157,110
Expenditures
Debt service
Principal 690,000 370,000 1,060,000
Interest 20,703 28,668 49,371
Fiscal charges 3,441 142 3,583
Total expenditures 714,144 398,810 1,112,954
Excess (deficiency) of
revenue over expenditures 47,775 (3,619) 44,156
Other financing sources
Bonds issued 31,200 – 31,200
Net change in fund balances 78,975 (3,619) 75,356
Fund balances
Beginning of year 333,886 999,068 1,332,954
End of year 412,861$ 995,449$ 1,408,310$
CITY OF GOLDEN VALLEY
Nonmajor Debt Service Funds
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances
Year Ended December 31, 2014
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Capital Cable Park Capital Equipment
Building Improvement Improvement Improvement Replacement
Assets
Cash and temporary investments 2,359,296$ 1,619,682$ 133,697$ 442,885$ 2,935,765$
Receivables
Special assessments – 16 – – –
Accounts – – – 16,500 –
Due from other governmental units – – – – –
Total assets 2,359,296$ 1,619,698$ 133,697$ 459,385$ 2,935,765$
Liabilities
Accounts payable 20,532$ 7,797$ –$ –$ 3,691$
Contracts payable – 14,102 – 1,524 –
Deposits – 407,769 – 3,143 –
Due to other funds – – – – –
Total liabilities 20,532 429,668 – 4,667 3,691
Deferred inflows of resources
Unavailable revenue – special assessments – 16 – – –
Unavailable revenue – other – – – 16,500 –
Total deferred inflows of resources – 16 – 16,500 –
Fund balances
Restricted for state-aid street improvements – – – – –
Restricted for Douglas Drive improvements – – – – –
Restricted for redevelopment – – – – –
Committed for equipment replacement – – – – 575,000
Assigned for cable improvements – – 133,697 – –
Assigned for park improvements – – – 438,218 –
Assigned for equipment replacement – – – – 2,357,074
Assigned for street improvements – – – – –
Assigned for capital improvements 2,338,764 1,190,014 – – –
Total fund balances 2,338,764 1,190,014 133,697 438,218 2,932,074
Total liabilities, deferred inflows of
resources, and fund balances 2,359,296$ 1,619,698$ 133,697$ 459,385$ 2,935,765$
CITY OF GOLDEN VALLEY
Nonmajor Capital Project Funds
Combining Balance Sheet
December 31, 2014
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North Wirth
State-Aid Douglas Drive HRA Capital Golden Hills No. 3 Hwy 55 West
Construction Improvement Project Tax Increment Tax Increment Tax Increment Totals
2,554,051$ 1,781,861$ 103,840$ 308,132$ 21,088$ 15,005$ 12,275,302$
53,142 – – – – – 53,158
– 243,422 – 8,000 – – 267,922
– 442,499 – – 2,600 – 445,099
2,607,193$ 2,467,782$ 103,840$ 316,132$ 23,688$ 15,005$ 13,041,481$
10,775$ 149,561$ –$ –$ –$ –$ 192,356$
15,782 – – – – – 31,408
– – – 227 10,645 4,297 426,081
– – – 28,978 579 10,703 40,260
26,557 149,561 – 29,205 11,224 15,000 690,105
53,142 – – – – – 53,158
– – – – – – 16,500
53,142 – – – – – 69,658
2,284,063 – – – – – 2,284,063
– 2,301,036 – – – – 2,301,036
– – 103,840 286,927 12,464 5 403,236
– – – – – – 575,000
– – – – – – 133,697
– – – – – – 438,218
– – – – – – 2,357,074
243,431 17,185 – – – – 260,616
– – – – – – 3,528,778
2,527,494 2,318,221 103,840 286,927 12,464 5 12,281,718
2,607,193$ 2,467,782$ 103,840$ 316,132$ 23,688$ 15,005$ 13,041,481$
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Capital Cable Park Capital Equipment
Building Improvement Improvement Improvement Replacement
Revenue
Tax increments –$ –$ –$ –$ –$
Special assessments – 11,425 – – –
Franchise taxes – – – – –
Intergovernmental revenue – 155,889 – 50,000 –
Charges for services – 48,623 – – –
Investment income 14,459 12,092 542 6,065 23,762
Other revenue
Miscellaneous 4,989 22,393 33,155 195,708 5,324
Total revenue 19,448 250,422 33,697 251,773 29,086
Expenditures
Capital outlay
Street – 468,260 – – –
City buildings and grounds 257,390 – – 748,569 –
Equipment – – – – 913,102
HRA projects – – – – –
Total capital outlay 257,390 468,260 – 748,569 913,102
Debt service
Principal retirement – – – – –
Interest and fiscal charges – – – – 15,240
Total debt service – – – – 15,240
Total expenditures 257,390 468,260 – 748,569 928,342
Excess (deficiency) of revenue
over expenditures (237,942) (217,838) 33,697 (496,796) (899,256)
Other financing sources (uses)
Sale of capital assets – 147,958 – – 74,474
Bonds issued – – – – 718,800
Transfers in 881,970 – 100,000 104,740 –
Transfers (out) (100,000) – – – –
Total other financing sources (uses) 781,970 147,958 100,000 104,740 793,274
Net change in fund balances 544,028 (69,880) 133,697 (392,056) (105,982)
Fund balances
Beginning of year 1,794,736 1,259,894 – 830,274 3,038,056
End of year 2,338,764$ 1,190,014$ 133,697$ 438,218$ 2,932,074$
CITY OF GOLDEN VALLEY
Nonmajor Capital Project Funds
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances
Year Ended December 31, 2014
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North Wirth
State-Aid Douglas Drive HRA Capital Golden Hills No. 3 Hwy 55 West
Construction Improvement Project Tax Increment Tax Increment Tax Increment Totals
–$ –$ –$ –$ 25,033$ –$ 25,033$
61,783 – – – – – 73,208
– 1,048,227 – – – – 1,048,227
424,553 447,529 – – – – 1,077,971
– – – – – – 48,623
25,013 14,727 55 160 7 5 96,887
– – – – – – 261,569
511,349 1,510,483 55 160 25,040 5 2,631,518
904,237 962,752 – – – – 2,335,249
– – – – – – 1,005,959
– – – – – – 913,102
– – – – 26,072 – 26,072
904,237 962,752 – – 26,072 – 4,280,382
110,000 – – – – – 110,000
78,431 – – – – – 93,671
188,431 – – – – – 203,671
1,092,668 962,752 – – 26,072 – 4,484,053
(581,319) 547,731 55 160 (1,032) 5 (1,852,535)
– – – – – – 222,432
– – – – – – 718,800
– – – – – – 1,086,710
– – – – – – (100,000)
– – – – – – 1,927,942
(581,319) 547,731 55 160 (1,032) 5 75,407
3,108,813 1,770,490 103,785 286,767 13,496 – 12,206,311
2,527,494$ 2,318,221$ 103,840$ 286,927$ 12,464$ 5$ 12,281,718$
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THIS PAGE INTENTIONALLY LEFT BLANK
2013
Final Over (Under)
Budget Actual Budget Actual
Revenue
Taxes
Ad valorem 12,358,005$ 12,400,560$ 42,555$ 12,099,851$
Penalties and interest – 30,826 30,826 21,752
Total taxes 12,358,005 12,431,386 73,381 12,121,603
Special assessments 10,000 13,768 3,768 16,858
Licenses and permits
Licenses 210,785 268,671 57,886 240,629
Permits 809,500 1,210,633 401,133 1,255,824
Total licenses and permits 1,020,285 1,479,304 459,019 1,496,453
Intergovernmental revenue
Federal grants – 17,729 17,729 45,616
State grants 255,390 266,769 11,379 17,304
County 31,205 31,758 553 23,043
Total intergovernmental revenue 286,595 316,256 29,661 85,963
Charges for services
General government 45,050 49,787 4,737 57,872
Police 123,870 121,445 (2,425) 115,768
Fire 40,000 44,587 4,587 43,632
Physical development 141,000 168,169 27,169 151,020
Parks and recreation 525,270 382,522 (142,748) 589,362
Other funds 981,500 903,459 (78,041) 888,960
Total charges for services 1,856,690 1,669,969 (186,721) 1,846,614
Fines and forfeitures 320,000 310,318 (9,682) 366,059
Investment income 100,000 67,758 (32,242) 18,994
Other revenue
Rents 211,200 226,995 15,795 221,853
Miscellaneous 6,000 11,214 5,214 23,310
Total other revenue 217,200 238,209 21,009 245,163
Total revenue 16,168,775$ 16,526,968$ 358,193$ 16,197,707$
2014
CITY OF GOLDEN VALLEY
General Fund
Schedule of Revenue – Budget and Actual
Year Ended December 31, 2014
(With Comparative Actual Amounts for the Year Ended December 31, 2013)
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Final Personal Supplies and
Budget Services Services Capital Outlay
Expenditures
General government
City Council 296,340$ 138,380$ 126,888$ –$
City manager 774,980 622,853 71,431 –
Legal service 135,000 134,296 – –
Total general government 1,206,320 895,529 198,319 –
Administrative services 1,692,280 862,742 820,042 –
Casualty insurance 300,000 – 240,918 –
Public safety
Police 5,202,175 4,257,478 817,129 –
Fire 1,200,190 830,056 204,651 –
Total public safety 6,402,365 5,087,534 1,021,780 –
Physical development
Administration 344,315 312,208 44,719 –
Building operations 556,990 14,291 571,007 28,330
Engineering 691,880 215,010 344,164 –
Street maintenance 1,444,410 844,072 652,284 5,294
Park maintenance 1,071,490 740,689 298,838 –
Inspections 661,545 558,447 119,311 –
Planning 346,195 289,048 13,494 –
Total physical development 5,116,825 2,973,765 2,043,817 33,624
Parks and recreation
Administration 679,345 580,417 77,648 –
Community center 74,100 47,071 20,025 –
Recreation programs 502,830 138,717 154,491 10,440
Total parks and recreation 1,256,275 766,205 252,164 10,440
Total expenditures 15,974,065$ 10,585,775$ 4,577,040$ 44,064$
2014
Actual
CITY OF GOLDEN VALLEY
General Fund
Schedule of Expenditures – Budget and Actual
Year Ended December 31, 2014
(With Comparative Actual Amounts for the Year Ended December 31, 2013)
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2013
Over (Under)
Total Budget Actual
265,268$ (31,072)$ 303,605$
694,284 (80,696) 655,478
134,296 (704) 83,818
1,093,848 (112,472) 1,042,901
1,682,784 (9,496) 1,558,386
240,918 (59,082) 222,559
5,074,607 (127,568) 4,987,620
1,034,707 (165,483) 946,593
6,109,314 (293,051) 5,934,213
356,927 12,612 317,053
613,628 56,638 562,130
559,174 (132,706) 586,095
1,501,650 57,240 1,400,954
1,039,527 (31,963) 979,058
677,758 16,213 636,768
302,542 (43,653) 297,689
5,051,206 (65,619) 4,779,747
658,065 (21,280) 618,082
67,096 (7,004) 59,131
303,648 (199,182) 506,050
1,028,809 (227,466) 1,183,263
15,206,879$ (767,186)$ 14,721,069$
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INTERNAL SERVICE FUNDS
Workers’ Compensation Fund – used to account for the financing of all of the City’s workers’
compensation benefits.
Payroll Benefits Fund – used to account for the financing of all of the City’s employee benefits, such as
vacation leave, sick leave, holiday pay, pension contributions, group insurance contributions, and
termination pay.
Vehicle Maintenance Fund – used to account for the maintenance of motor vehicles of all departments
and related costs.
Workers’ Payroll Vehicle
Compensation Benefits Maintenance Totals
Assets
Current assets
Cash and temporary investments 178,216$ 1,948,771$ 53,946$ 2,180,933$
Receivables
Accounts – 7,929 – 7,929
Inventory – – 138,149 138,149
Total current assets 178,216 1,956,700 192,095 2,327,011
Noncurrent assets
Capital assets
Machinery and equipment – – 118,259 118,259
Less accumulated depreciation – – (69,612) (69,612)
Total noncurrent assets – – 48,647 48,647
Total assets 178,216$ 1,956,700$ 240,742$ 2,375,658$
Liabilities and Net Position
Current liabilities
Accounts payable –$ (1,157)$ 19,491$ 18,334$
Accrued compensated absences – current – 988,572 – 988,572
Deposits – 6,537 – 6,537
Total current liabilities – 993,952 19,491 1,013,443
Noncurrent liabilities
Net OPEB obligation – 623,993 – 623,993
Accrued compensated absences – 519,464 – 519,464
Total noncurrent liabilities – 1,143,457 – 1,143,457
Total liabilities – 2,137,409 19,491 2,156,900
Net position
Net investment in capital assets – – 48,647 48,647
Unrestricted 178,216 (180,709) 172,604 170,111
Total net position 178,216 (180,709) 221,251 218,758
Total liabilities and net position 178,216$ 1,956,700$ 240,742$ 2,375,658$
CITY OF GOLDEN VALLEY
Internal Service Funds
Combining Statement of Net Position
December 31, 2014
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Workers’ Payroll Vehicle
Compensation Benefits Maintenance Totals
Operating revenue
Charges to other funds 150,000$ 5,053,743$ 319,025$ 5,522,768$
Payroll benefits charged to employees – 1,279,209 – 1,279,209
Total operating revenue 150,000 6,332,952 319,025 6,801,977
Operating expenses
Workers’ compensation charges 208,111 – – 208,111
Payroll benefits charges – 6,801,011 – 6,801,011
Vehicle maintenance operations – – 307,279 307,279
Depreciation – – 12,365 12,365
Total operating expenses 208,111 6,801,011 319,644 7,328,766
Operating income (loss) (58,111) (468,059) (619) (526,789)
Nonoperating revenue
Intergovernmental revenue – 397,132 – 397,132
Interest income 981 17,042 620 18,643
Other income – 19,282 – 19,282
Total nonoperating revenue 981 433,456 620 435,057
Change in net position (57,130) (34,603) 1 (91,732)
Net position
Beginning of year 235,346 (146,106) 221,250 310,490
End of year 178,216$ (180,709)$ 221,251$ 218,758$
CITY OF GOLDEN VALLEY
Internal Service Funds
Combining Statement of Revenue, Expenses, and Changes in Net Position
Year Ended December 31, 2014
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Workers’ Payroll Vehicle
Compensation Benefits Maintenance Totals
Cash flows from operating activities
Receipts from customers and users 150,000$ 1,279,209$ –$ 1,429,209$
Receipts from interfund services provided – 5,074,696 319,025 5,393,721
Paid to suppliers/service providers (208,111) (4,756,499) (60,584) (5,025,194)
Paid to employees – (2,015,951) (236,936) (2,252,887)
Net cash flows from operating activities (58,111) (418,545) 21,505 (455,151)
Cash flows from investing activities
Interest received on investments 981 17,042 620 18,643
Cash flows from noncapital financing activities
Intergovernmental revenue – 397,132 – 397,132
Net increase (decrease) in cash and
temporary investments/cash equivalents (57,130) (4,371) 22,125 (39,376)
Cash and temporary investments/cash equivalents
Beginning of year 235,346 1,953,142 31,821 2,220,309
End of year 178,216$ 1,948,771$ 53,946$ 2,180,933$
Reconciliation of operating income (loss) to net
cash flows from operating activities
Operating income (loss) (58,111)$ (468,059)$ (619)$ (526,789)$
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities
Depreciation – – 12,365 12,365
Other income – 19,282 – 19,282
Change in assets and liabilities
Receivables
Accounts – 1,671 – 1,671
Inventory – – 3,593 3,593
Accounts payable – (1,706) 6,166 4,460
Net OPEB obligation – 55,299 – 55,299
Accrued compensated absences – (16,083) – (16,083)
Due to other governmental units – (2,109) – (2,109)
Deposits – (6,840) – (6,840)
Net cash provided (used) by
operating activities (58,111)$ (418,545)$ 21,505$ (455,151)$
CITY OF GOLDEN VALLEY
Internal Service Funds
Combining Statement of Cash Flows
Year Ended December 31, 2014
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OTHER CITY INFORMATION
Original Amended Accounted for Current Amount
Budget Budget in Prior Years Year Remaining
Sources of funds
Bond proceeds 27,150,000$ 56,165,000$ 41,957,893$ –$ 14,207,107$
Proceeds of refunding bond issues – – 26,440,490 – (26,440,490)
Tax increments received 45,692,720 92,515,000 68,758,028 5,159,229 18,597,743
Interest earnings 886,370 1,461,370 8,353,072 16,228 (6,907,930)
Real estate sales 5,700,000 9,990,000 12,618,936 – (2,628,936)
Rental income – – 81,648 – (81,648)
Miscellaneous – – 109,818 – (109,818)
Total sources of funds 79,429,090 160,131,370 158,319,885 5,175,457 (3,363,972)
Uses of funds
Land and building acquisition 17,921,280 41,909,116 41,184,307 – 724,809
Site preparation 1,276,910 5,820,753 739,750 – 5,081,003
Public improvements 2,691,270 6,770,854 5,519,775 – 1,251,079
Relocation 3,221,340 6,157,989 931,613 – 5,226,376
Bond discount 408,000 – 55,928 – (55,928)
Bond issuance costs 271,500 703,475 197,411 – 506,064
Administrative costs 2,239,190 4,831,094 706,516 8,281 4,116,297
Financing costs – – 85,267 – (85,267)
Contingency – 60,790 600 – 60,190
Paid to escrow agent to defease refunded bond issue – – 26,271,665 – (26,271,665)
Principal 27,150,000 56,165,000 31,225,000 4,355,000 20,585,000
Interest and fiscal costs 24,249,600 37,712,299 25,881,239 339,047 11,492,013
Total uses of funds 79,429,090 160,131,370 132,799,071 4,702,328 22,629,971
District balance (deficit) – – 25,520,814 473,129 (25,993,943)
Transfers (to) from other funds – – (12,702,508) (159,000) 12,861,508
Funds remaining (deficit)–$ –$ 12,818,306$ 314,129$ (13,132,435)$
Note:
Purchaser/Developer Sale Price Cost
State of Minnesota I-394 frontage road 1,331,591$ 1,331,591$
Trammell Crow Colonnade Office Building 1,549,012 5,171,518
MEPC CyberOptics 845,187 2,454,649
MEPC Holiday Express 100,000 140,862
Duke Realty Golden Hills West Area 2,361,390 8,987,381
United Properties Golden Hills Central Area 1,624,160 4,150,000
Allianz Life Insurance Company Office building 4,677,428 9,016,107
ISD No. 270 – Hopkins Meadowbrook Community
Center 135,000 3,469,850
12,623,768$ 34,721,958$
Property purchased, but not sold as of December 31, 2014:
Project Cost
Golden Hills East Area Affiliated Emergency
Veterinary Services 160,000$
Property purchased and sold to developers:
Project
Property
CITY OF GOLDEN VALLEY
Schedule of Sources and Uses of Public Funds
for Golden Hills No. 1503, a Tax Increment Financing District
Year Ended December 31, 2014
Real Estate Sales
-80-
Accounted for Current Amount
Budget in Prior Years Year Remaining
Sources of funds
Tax increments received 920,000$ 211,304$ 25,033$ 683,663$
Real estate sales 575,000 523,431 – 51,569
Interest earnings – 3,901 7 (3,908)
Total sources of funds 1,495,000 738,636 25,040 731,324
Uses of funds
Land and building acquisition – 84,054 25,493 (109,547)
Site preparation and improvements 1,000,000 621,135 – 378,865
Administrative costs – 16,058 – (16,058)
Interest and fiscal costs 495,000 3,893 579 490,528
Total uses of funds 1,495,000 725,140 26,072 743,788
Funds remaining (deficit) –$ 13,496$ (1,032)$ (12,464)$
Note:
Purchaser/Developer Sale Price Cost
GVEC, LLC Business Center 523,431$ 1,093,241$
Property purchased and sold to developers:
Project
The cost of the property sold to GVEC, LLC includes the $567,685 original purchase price that was paid by the
North Wirth Parkway No. 1501 Tax Increment Financing District prior to the establishment of this district.
CITY OF GOLDEN VALLEY
Schedule of Sources and Uses of Public Funds
for North Wirth Parkway No. 1505, a Tax Increment Financing District
Year Ended December 31, 2014
Real Estate Sales
-81-
Accounted for Current Amount
Budget in Prior Years Year Remaining
Sources of funds
Tax increments received 8,814,808$ –$ –$ 8,814,808$
Interest earnings – – 5 (5)
Total sources of funds 8,814,808 – 5 8,814,803
Uses of funds
Site acquisition and improvements 4,545,891 – – 4,545,891
Administrative costs 881,480 – – 881,480
Interest and fiscal costs 3,387,437 – – 3,387,437
Total uses of funds 8,814,808 – – 8,814,808
Funds remaining (deficit) –$ –$ 5$ (5)$
CITY OF GOLDEN VALLEY
Schedule of Sources and Uses of Public Funds
for Highway 55 West No. 1506, a Tax Increment Financing District
Year Ended December 31, 2014
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STATISTICAL SECTION
(UNAUDITED)
Page
Contents:
Financial Trends 84
Revenue Capacity 96
Debt Capacity 101
Demographic and Economic Information 109
Operating Indicators 111
Sources:
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.
Unless otherwise noted, the information in these schedules is derived from the CAFR for the relevant year.
STATISTICAL SECTION (UNAUDITED)
This part of the City of Golden Valley, Minnesota’s (the City) comprehensive annual financial report (CAFR) 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.
-83-
2005 2006 2007 2008
Governmental activities
Net investment in capital assets 10,980,485$ 12,290,076$ 21,062,593$ 23,613,301$
Restricted 26,872,829 26,809,309 28,599,235 30,192,456
Unrestricted (17,813,718) (13,451,588) (11,098,272) (7,377,599)
Total governmental activities net position 20,039,596$ 25,647,797$ 38,563,556$ 46,428,158$
Business-type activities
Net investment in capital assets 18,772,924$ 19,505,942$ 20,786,526$ 22,427,619$
Unrestricted 10,140,315 11,907,990 13,787,483 15,962,676
Total business-type activities net position 28,913,239$ 31,413,932$ 34,574,009$ 38,390,295$
Primary government
Net investment in capital assets 29,753,409$ 31,796,018$ 41,849,119$ 46,040,920$
Restricted 26,872,829 26,809,309 28,599,235 30,192,456
Unrestricted (7,673,403) (1,543,598) 2,689,211 8,585,077
Total primary government net position 48,952,835$ 57,061,729$ 73,137,565$ 84,818,453$
Note:
Last Ten Fiscal Years
Net Position by Component
CITY OF GOLDEN VALLEY
The City implemented GASB Statement No. 65 in 2012. Net position for 2011 was restated for the effects of
implementing this standard. Net position for previous years has not been restated.
Fiscal Year
(Accrual Basis of Accounting)
-84-
2009 2010 2011 2012 2013 2014
24,388,008$ 21,635,548$ 22,753,481$ 22,622,764$ 21,829,745$ 21,499,939$
28,061,624 22,187,677 23,045,045 26,673,032 29,535,846 29,553,484
(3,510,363) 5,812,640 5,903,464 7,499,559 9,306,292 14,349,901
48,939,269$ 49,635,865$ 51,701,990$ 56,795,355$ 60,671,883$ 65,403,324$
23,564,184$ 24,838,885$ 27,268,683$ 27,416,740$ 28,427,621$ 29,588,257$
16,572,658 17,231,676 16,430,056 17,508,592 18,562,323 16,164,578
40,136,842$ 42,070,561$ 43,698,739$ 44,925,332$ 46,989,944$ 45,752,835$
47,952,192$ 46,474,433$ 50,022,164$ 50,039,504$ 50,257,366$ 51,088,196$
28,061,624 22,187,677 23,045,045 26,673,032 29,535,846 29,553,484
13,062,295 23,044,316 22,333,520 25,008,151 27,868,615 30,514,479
89,076,111$ 91,706,426$ 95,400,729$ 101,720,687$ 107,661,827$ 111,156,159$
-85-
2005 2006 2007 2008
Expenses
Governmental activities
General government 2,504,104$ 3,455,764$ 3,325,458$ 3,265,940$
Public safety 5,066,489 5,680,284 5,763,034 6,091,866
Physical development 5,504,742 5,501,829 6,330,917 8,282,504
Parks and recreation 1,150,314 1,299,840 1,292,912 1,331,180
Interest and fiscal charges 3,318,666 2,970,622 3,560,215 3,329,662
Total governmental activities expenses 17,544,315 18,908,339 20,272,536 22,301,152
Business-type activities
Water and sewer 5,155,353 5,869,045 6,310,133 6,038,783
Storm sewer 798,585 1,009,009 1,114,087 1,313,173
Golf course 1,827,339 1,809,843 1,797,055 1,819,557
Motor vehicle licensing 408,733 374,089 387,613 420,911
Recycling 159,908 155,739 172,324 139,970
Total business-type activities expenses 8,349,918 9,217,725 9,781,212 9,732,394
Total primary government expenses 25,894,233$ 28,126,064$ 30,053,748$ 32,033,546$
Program revenues
Governmental activities
Charges for services
General government 255,048$ 196,661$ 217,961$ 255,249$
Public safety 2,159,727 1,733,014 1,728,325 1,827,820
Physical development 222,354 543,520 394,146 335,906
Parks and recreation 300,920 292,305 314,502 348,536
Operating grants and contributions 297,556 292,213 306,055 285,576
Capital grants and contributions 1,963,530 2,576,547 3,093,771 3,288,594
Total governmental activities program
revenues 5,199,135 5,634,260 6,054,760 6,341,681
Business-type activities
Charges for services
Water and sewer 6,155,683 6,558,605 7,268,146 7,428,721
Storm sewer 2,037,814 2,116,794 2,233,211 2,245,005
Golf course 1,693,507 1,703,750 1,742,650 1,766,714
Motor vehicle licensing 531,243 609,522 624,381 598,635
Recycling 220,258 220,730 221,449 221,261
Operating grants and contributions 52,052 51,424 123,701 76,039
Capital grants and contributions – – 427,353 846,164
Total business-type activities program
revenues 10,690,557 11,260,825 12,640,891 13,182,539
Total primary government program revenues 15,889,692$ 16,895,085$ 18,695,651$ 19,524,220$
CITY OF GOLDEN VALLEY
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year
-86-
2009 2010 2011 2012 2013 2014
3,271,352$ 3,801,269$ 3,319,661$ 3,121,543$ 2,914,823$ 3,066,025$
6,298,431 6,585,990 6,490,371 6,906,449 7,310,946 6,831,136
8,322,099 9,864,540 9,720,753 9,758,495 10,325,068 11,396,748
1,476,771 1,338,155 1,335,562 1,692,346 1,588,798 1,545,616
3,544,117 3,272,726 2,930,757 2,724,495 2,633,359 2,456,490
22,912,770 24,862,680 23,797,104 24,203,328 24,772,994 25,296,015
6,952,047 6,561,335 8,474,883 8,023,803 7,611,927 9,867,531
1,299,813 1,239,080 1,176,603 1,383,594 1,589,410 1,944,935
1,770,491 1,736,551 1,708,984 1,724,174 1,645,728 1,693,028
409,032 423,423 260,583 154,492 326,382 326,201
349,100 290,818 218,145 299,809 410,808 393,280
10,780,483 10,251,207 11,839,198 11,585,872 11,584,255 14,224,975
33,693,253$ 35,113,887$ 35,636,302$ 35,789,200$ 36,357,249$ 39,520,990$
264,357$ 273,318$ 277,901$ 263,035$ 279,725$ 276,782$
1,194,484 1,311,914 1,609,601 1,628,076 1,861,481 1,837,076
352,630 337,146 360,307 400,773 407,938 342,809
340,072 379,356 438,349 614,164 594,142 534,821
294,902 410,767 413,826 464,187 559,246 538,956
1,097,097 1,831,662 2,498,297 3,595,000 1,882,698 2,028,250
3,543,542 4,544,163 5,598,281 6,965,235 5,585,230 5,558,694
7,638,314 7,391,493 8,636,333 8,217,582 7,831,307 7,751,250
2,265,937 2,279,840 2,279,633 2,256,336 2,274,549 2,278,128
1,719,611 1,676,136 1,580,954 1,765,186 1,502,897 1,543,151
534,559 531,074 138,936 92,626 304,424 347,382
220,829 220,809 266,858 276,190 276,099 323,184
139,432 177,601 463,650 128,893 495,451 701,605
56,081 – 191,686 32,162 852,075 –
12,574,763 12,276,953 13,558,050 12,768,975 13,536,802 12,944,700
16,118,305$ 16,821,116$ 19,156,331$ 19,734,210$ 19,122,032$ 18,503,394$
(continued)
-87-
2005 2006 2007 2008
Net (expense) revenue
Governmental activities (12,345,180)$ (13,274,079)$ (14,217,776)$ (15,959,471)$
Business-type activities 2,340,639 2,043,100 2,859,679 3,450,145
Total primary government net expense (10,004,541)$ (11,230,979)$ (11,358,097)$ (12,509,326)$
General revenues and other changes in net position
Governmental activities
Property taxes 15,977,539$ 16,958,547$ 17,385,413$ 19,464,163$
Franchise taxes – – – –
Unrestricted grants and contributions 27,386 27,386 27,386 27,385
Other general revenues 332,232 277,319 557,955 498,523
Investment earnings 806,006 1,299,523 1,771,384 1,328,642
Gain on sale of capital assets 276,993 144,505 18,597 54,025
Transfers 125,000 175,000 175,000 175,000
Total governmental activities 17,545,156 18,882,280 19,935,735 21,547,738
Business-type activities
Other general revenues 15,861 5,611 59,898 –
Investment earnings 271,083 626,982 615,500 541,141
Transfers (125,000) (175,000) (175,000) (175,000)
Total business-type activities 161,944 457,593 500,398 366,141
Total primary government 17,707,100$ 19,339,873$ 20,436,133$ 21,913,879$
Changes in net position
Governmental activities 5,199,976$ 5,608,201$ 5,717,959$ 5,588,267$
Business-type activities 2,502,583 2,500,693 3,360,077 3,816,286
Total primary government 7,702,559$ 8,108,894$ 9,078,036$ 9,404,553$
Note:
Fiscal Year
(Accrual Basis of Accounting)
Last Ten Fiscal Years
The City implemented GASB Statement No. 65 in 2012. Change in net position for 2011 was restated for the effect of
implementing this standard. Change in net position for previous years has not been restated.
Changes in Net Position (continued)
CITY OF GOLDEN VALLEY
-88-
2009 2010 2011 2012 2013 2014
(19,369,228)$ (20,318,517)$ (18,198,823)$ (17,238,093)$ (19,187,764)$ (19,737,321)$
1,794,280 2,025,746 1,718,852 1,183,103 1,952,547 (1,280,275)
(17,574,948)$ (18,292,771)$ (16,479,971)$ (16,054,990)$ (17,235,217)$ (21,017,596)$
20,727,498$ 20,143,891$ 19,752,048$ 20,946,972$ 21,757,173$ 22,616,003$
– – 581,600 621,585 904,928 1,048,227
13,693 27,386 27,386 – – –
263,702 350,183 336,139 353,033 338,245 286,108
552,835 250,723 300,813 214,493 112,817 347,197
55,611 44,330 156,161 76,852 24,735 71,227
267,000 198,600 198,600 118,523 (73,606) 100,000
21,880,339 21,015,113 21,352,747 22,331,458 23,064,292 24,468,762
– 5,330 558 65,978 – –
219,267 101,243 142,204 96,035 38,459 142,866
(267,000) (198,600) (198,600) (118,523) 73,606 (100,000)
(47,733) (92,027) (55,838) 43,490 112,065 42,866
21,832,606$ 20,923,086$ 21,296,909$ 22,374,948$ 23,176,357$ 24,511,628$
2,511,111$ 696,596$ 3,153,924$ 5,093,365$ 3,876,528$ 4,731,441$
1,746,547 1,933,719 1,663,014 1,226,593 2,064,612 (1,237,409)
4,257,658$ 2,630,315$ 4,816,938$ 6,319,958$ 5,941,140$ 3,494,032$
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THIS PAGE INTENTIONALLY LEFT BLANK
Ad Valorem
Fiscal Year Property Taxes Tax Increments Franchise Tax Total
2005 11,878,484$ 4,099,055$ –$ 15,977,539$
2006 12,771,144 4,187,403 – 16,958,547
2007 13,735,821 3,649,592 – 17,385,413
2008 14,877,502 4,586,661 – 19,464,163
2009 15,337,158 5,390,340 – 20,727,498
2010 15,901,115 4,242,776 – 20,143,891
2011 15,807,735 3,944,313 581,600 20,333,648
2012 16,219,048 4,627,924 621,585 21,468,557
2013 16,922,610 4,834,563 904,928 22,662,101
2014 17,431,741 5,184,262 1,048,227 23,664,230
CITY OF GOLDEN VALLEY
Governmental Activities Tax Revenues by Source
Last Ten Fiscal Years
(Accrual Basis of Accounting)
-90-
2005 2006 2007 2008
General Fund
Reserved –$ –$ –$ –$
Unreserved 8,678,657 8,652,199 8,807,130 8,894,990
Nonspendable – – – –
Assigned – – – –
Unassigned – – – –
Total General Fund 8,678,657$ 8,652,199$ 8,807,130$ 8,894,990$
All other governmental funds
Reserved 120,129$ 1,141,733$ 1,021,281$ 1,795,677$
Unreserved, reported in
Special revenue funds (1,056,149) 96,213 115,395 145,519
Capital project funds 10,726,228 10,524,743 12,883,682 14,304,072
Debt service funds 13,613,836 13,275,728 12,930,925 13,106,172
Restricted – – – –
Committed – – – –
Assigned – – – –
Total all other governmental funds 23,404,044$ 25,038,417$ 26,951,283$ 29,351,440$
Note:
Last Ten Fiscal Years
Fund Balances of Governmental Funds
CITY OF GOLDEN VALLEY
The City implemented GASB Statement No. 54 in 2011, which changed fund balance classifications. Fund balances
for previous years have not been restated.
Fiscal Year
(Modified Accrual Basis of Accounting)
-91-
2009 2010 2011 2012 2013 2014
–$ 90,000$ –$ –$ –$ –$
8,985,030 8,913,423 – – – –
– – 45,000 – – 1,256
– – 1,778,352 1,560,000 1,500,000 1,500,000
– – 7,395,646 7,756,057 8,207,985 8,640,108
8,985,030$ 9,003,423$ 9,218,998$ 9,316,057$ 9,707,985$ 10,141,364$
13,598,736$ 9,673,542$ –$ –$ –$ –$
159,243 183,065 – – – –
14,296,961 14,216,671 – – – –
14,391,151 12,624,401 – – – –
– – 29,472,220 33,693,776 43,287,123 47,308,126
– – 928,337 687,458 718,723 743,633
– – 7,345,999 8,106,763 7,032,562 7,224,030
42,446,091$ 36,697,679$ 37,746,556$ 42,487,997$ 51,038,408$ 55,275,789$
-92-
2005 2006 2007 2008
Revenues
Taxes 11,880,730$ 12,688,287$ 13,739,116$ 14,842,187$
Tax increments 4,095,987 4,188,563 3,652,563 4,663,365
Special assessments 1,895,018 1,915,216 1,469,984 1,693,632
Franchise taxes – – – –
Licenses and permits 1,634,416 1,131,047 1,204,750 1,432,351
Intergovernmental 209,405 567,381 2,085,068 417,463
Charges for services 1,721,605 1,913,726 1,832,666 1,769,064
Fines and forfeits 330,305 362,409 253,594 223,317
Investment income 721,932 1,152,628 1,585,067 1,195,453
Other revenue 872,884 744,222 706,234 681,185
Total revenues 23,362,282 24,663,479 26,529,042 26,918,017
Expenditures
General government 1,234,695 1,298,923 1,329,568 1,322,117
Administrative services 1,343,114 1,266,287 1,325,111 1,374,942
Casualty insurance 158,496 204,579 300,489 214,600
Public safety 5,109,341 5,250,598 5,486,793 5,722,290
Physical development 3,415,213 3,386,593 3,710,000 3,853,075
Parks and recreation 934,850 919,519 971,222 1,066,232
Capital outlay – not capitalized 707,121 1,622,642 609,761 822,165
Construction/acquisition of capital assets 9,675,585 8,571,663 8,520,178 7,519,949
Debt service
Principal retirement 7,460,000 6,450,000 6,515,000 6,930,000
Interest and fiscal charges 3,445,162 3,059,275 3,341,311 3,363,075
Total expenditures 33,483,577 32,030,079 32,109,433 32,188,445
Excess of revenues
over (under) expenditures (10,121,295) (7,366,600) (5,580,391) (5,270,428)
Other financing sources (uses)
Sale of capital assets 293,339 716,349 47,766 72,915
Bonds issued 6,690,000 8,020,000 7,395,000 7,430,000
Refunding bonds issued 6,040,000 11,935,000 – –
Premiums (discounts) on debt issues 10,243 (75,234) 30,422 80,530
Payments to refunded bond escrow agent (6,045,065) (11,796,600) – –
Transfers in 8,068,869 5,002,225 5,928,624 6,177,000
Transfers (out) (7,943,869) (4,827,225) (5,753,624) (6,002,000)
Total other financing sources (uses) 7,113,517 8,974,515 7,648,188 7,758,445
Net change in fund balances (3,007,778)$ 1,607,915$ 2,067,797$ 2,488,017$
Debt service as a percentage of noncapital
expenditures 45.8% 40.5% 41.8% 41.7%
Fiscal Year
(Modified Accrual Basis of Accounting)
Last Ten Fiscal Years
Changes in Fund Balances of Governmental Funds
CITY OF GOLDEN VALLEY
-93-
2009 2010 2011 2012 2013 2014
15,316,495$ 15,760,353$ 15,791,136$ 16,378,425$ 16,847,769$ 17,334,800$
5,322,240 4,344,739 3,993,985 4,627,924 4,834,563 5,184,262
1,781,804 1,415,935 1,389,200 1,273,820 1,223,120 1,217,205
– – 581,600 621,585 904,928 1,048,227
839,306 872,669 1,161,906 1,223,848 1,496,453 1,479,304
741,496 643,328 951,285 3,452,180 984,620 1,410,427
1,808,325 1,722,697 1,631,110 1,876,117 1,889,478 1,718,592
210,181 284,600 303,908 351,413 366,059 310,318
510,028 236,086 281,770 201,966 107,763 328,554
555,088 678,249 637,606 617,366 650,750 716,133
27,084,963 25,958,656 26,723,506 30,624,644 29,305,503 30,747,822
1,377,347 1,774,439 1,379,620 1,297,470 1,268,041 1,310,190
1,423,084 1,460,063 1,460,704 1,513,689 1,558,386 1,682,784
223,209 277,016 255,536 237,152 222,559 240,918
5,824,971 5,879,957 6,010,214 6,462,507 6,594,376 6,156,396
3,854,331 3,732,546 3,901,808 4,083,857 4,142,979 5,051,206
1,039,353 1,033,593 1,068,002 1,183,579 1,183,263 1,028,809
420,753 1,432,608 1,049,696 1,003,343 1,575,739 1,779,425
8,336,626 4,646,495 3,659,158 5,533,344 4,623,106 5,043,790
7,085,000 7,620,000 6,235,000 5,185,000 6,295,000 8,720,000
3,520,776 3,517,239 3,110,626 2,944,445 2,833,093 2,695,660
33,105,450 31,373,956 28,130,364 29,444,386 30,296,542 33,709,178
(6,020,487) (5,415,300) (1,406,858) 1,180,258 (991,039) (2,961,356)
90,075 82,420 236,593 83,669 80,875 222,432
8,055,000 4,530,000 2,495,000 2,300,000 2,485,000 3,085,000
10,345,000 – 4,870,000 5,960,000 9,100,000 3,950,000
448,103 109,261 291,117 166,050 452,503 274,684
– (4,935,000) (5,420,000) (4,970,000) (2,085,000) –
6,290,970 4,650,385 3,402,570 4,448,233 6,448,710 6,545,710
(6,023,970) (4,751,785) (3,203,970) (4,329,710) (6,548,710) (6,445,710)
19,205,178 (314,719) 2,671,310 3,658,242 9,933,378 7,632,116
13,184,691$ (5,730,019)$ 1,264,452$ 4,838,500$ 8,942,339$ 4,670,760$
42.8% 41.7% 38.2% 34.0% 35.6% 39.8%
-94-
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Ad Valorem
Fiscal Year Property Tax Tax Increments Franchise Tax Total
2005 11,880,730$ 4,095,987$ –$ 15,976,717$
2006 12,688,287 4,188,563 – 16,876,850
2007 13,739,116 3,652,563 – 17,391,679
2008 14,842,187 4,663,365 – 19,505,552
2009 15,316,495 5,322,240 – 20,638,735
2010 15,760,353 4,344,739 – 20,105,092
2011 15,791,136 3,993,985 581,600 20,366,721
2012 16,378,425 4,627,924 621,585 21,627,934
2013 16,847,769 4,834,563 904,928 22,587,260
2014 17,334,800 5,184,262 1,048,227 23,567,289
CITY OF GOLDEN VALLEY
General Governmental Tax Revenues by Source
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
-95-
Net Decrease
From Fiscal Decrease From
Real Property Personal Property Disparities Tax Increments
33,953,310$ 313,936$ (4,389,008)$ (3,530,013)$
37,306,569 317,673 (4,734,201) (3,671,697)
40,662,398 326,724 (5,000,474) (3,429,711)
43,508,495 302,601 (5,766,544) (4,303,310)
44,352,919 294,419 (6,586,685) (4,739,865)
42,049,838 284,789 (6,796,278) (3,536,203)
38,371,218 311,502 (6,220,733) (3,227,508)
36,478,494 320,766 (5,875,187) (3,242,617)
35,693,380 416,456 (5,460,857) (3,275,801)
35,543,286 413,722 (5,888,222) (3,352,209)
(1)
Source: Hennepin County
2014
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.
in Fiscal Year
Levy Collectible
2005
2006
2013
CITY OF GOLDEN VALLEY
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Tax Capacities (1)
2008
2007
2012
2011
2010
2009
-96-
Total City Tax
Applied Capacity Estimated Actual
Tax Capacity Rate Applied Taxable Value
26,348,225$ 45.30 2,679,957,500$ 0.98 %
29,218,344 43.31 2,955,699,000 0.99
32,558,937 41.28 3,213,702,600 1.01
33,741,242 42.99 3,400,157,300 0.99
33,320,788 45.91 3,425,714,700 0.97
32,002,146 48.20 3,274,263,500 0.98
29,234,479 53.06 3,004,908,600 0.97
27,681,456 55.80 2,829,369,027 0.98
27,373,178 58.21 2,744,389,240 1.00
26,716,577 61.84 2,719,232,050 0.98
Actual Value
Percentage of
Value as a
Assessed
-97-
Total Direct
and
Hennepin Special Overlapping
General Levy Debt Levy City Total County ISD No. 281 Districts Rates
35.32 9.98 45.30 44.17 29.99 8.70 128.16
33.44 9.87 43.31 41.02 28.49 7.42 120.24
32.16 9.12 41.28 39.11 28.75 7.45 116.59
33.13 9.86 42.99 38.57 27.24 8.05 116.85
34.85 11.06 45.91 40.41 27.21 7.69 121.22
36.94 11.26 48.20 42.64 28.62 8.83 128.29
40.65 12.41 53.06 45.84 34.39 9.87 143.16
41.82 13.98 55.80 48.23 32.81 10.14 146.98
43.00 15.21 58.21 49.46 32.35 10.93 150.95
45.51 16.33 61.84 49.96 34.78 11.30 157.88
Total Direct
and
Hennepin Special Overlapping
General Levy Debt Levy City Total County ISD No. 270 Districts Rates
35.32 9.98 45.30 44.17 19.18 8.70 117.35
33.44 9.87 43.31 41.02 21.57 7.42 113.32
32.16 9.12 41.28 39.11 19.02 7.45 106.86
33.13 9.86 42.99 38.57 19.22 8.05 108.83
34.85 11.06 45.91 40.41 20.08 7.69 114.09
36.94 11.26 48.20 42.64 23.05 8.83 122.72
40.65 12.41 53.06 45.84 26.46 9.87 135.23
41.82 13.98 55.80 48.23 29.27 10.14 143.44
43.00 15.21 58.21 49.46 29.73 10.93 148.33
45.51 16.33 61.84 49.96 32.36 11.30 155.46
(1)
Source: Hennepin County
2014
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.
2005
2006
2007
2009
2010
2012
2013
CITY OF GOLDEN VALLEY
Property Tax Rates
Direct and Overlapping (1) Governments
Last Ten Fiscal Years
Year
2008
2007
Year
2008
For the City/ISD No. 270
For the City/ISD No. 281
Overlapping Rates
2009
Direct Rates
2005
2006
2010
2011
Overlapping Rates
2012
Direct Rates
2011
2013
2014
-98-
Net Tax Net Tax
Capacity Rank Capacity Rank
General Mills, Inc. 1,817,220$ 1 6.8 % 2,076,940$ 1 7.9 %
Allianz Life Insurance Company 1,281,430 2 4.8 876,258 2 3.3
DRA Advisors, LLC 1,048,170 3 3.9 – – –
Golden Jack, LLC 571,530 4 2.1 404,210 6 1.5
Menards, Inc. 495,750 5 1.9 – – –
United Health Care 402,130 6 1.5 407,550 5 1.5
Honeywell 274,750 7 1.0 314,250 7 1.2
TCA Real Estate, LLC 240,210 8 0.9 – – –
The Luther Company, LLP 229,330 9 0.9 – – –
North Wirth Associates, LLP 221,610 10 0.8 – – –
Teacher’s Insurance and Annuity – – – 768,750 3 2.9
Duke Realty – – – 549,480 4 2.1
Valley Creek Development, LLC – – – 276,830 8 1.1
Lupient Enterprises – – – 247,480 9 0.9
G.H. Tennant Company – – – 229,730 10 0.9
Total 6,582,130$ 24.6 % 6,151,478$ 23.3 %
Source: Hennepin County
Applied Tax
CapacityTaxpayer Capacity
Applied Tax
Current Year and Nine Years Ago
Principal Property Taxpayers
CITY OF GOLDEN VALLEY
Percentage of
2014 2005
Percentage of
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Total Tax Collections in
Levy for Subsequent
Fiscal Year (2) Amount (3) Years (4) Amount
12,519,830$ 12,431,206$ 99.3 % 88,624$ 12,519,830$ 100.0 %
13,234,278 13,107,657 99.0 126,621 13,234,278 100.0
14,099,021 13,956,573 99.0 142,448 14,099,021 100.0
15,192,449 15,039,110 99.0 153,339 15,192,449 100.0
15,980,242 15,801,948 98.9 178,294 15,980,242 100.0
16,306,687 16,084,726 98.6 221,961 16,306,687 100.0
16,379,567 16,190,773 98.9 188,794 16,379,567 100.0
16,395,177 16,274,052 99.3 114,791 16,388,843 100.0
16,932,407 16,777,814 99.1 124,726 16,902,540 99.8
17,403,839 17,242,324 99.1 – 17,242,324 99.1
(1) Does not include tax increments levied and collected.
(2) Total levy is net of current year cancellations and abatements.
(3) Total tax levy and current tax collections include state paid tax credits.
(4) Includes county adjustments for prior year over collections, cancellations, and abatements.
2013
Total Collections to Date
Ended
December 31,
2009
2010
2014
Last Ten Fiscal Years
2007
2006
2008
of Levy
2012
2011
Percentage
Collected Within the
CITY OF GOLDEN VALLEY
2005
Fiscal Year
of Levy
Percentage
Fiscal Year of the Levy
Property Tax Levies and Collections (1)
-100-
Special Tax Certificates Tax Net
Assessment Increment of Abatement State-Aid Premiums
Bonds Bonds Indebtedness Bonds Street Bonds (Discounts)
38,765,000$ 28,215,000$ 1,935,000$ 4,675,000$ –$ 124,502$
42,980,000 26,665,000 2,030,000 4,360,000 – 108,479
44,000,000 24,190,000 2,120,000 4,045,000 2,560,000 117,714
47,610,000 21,410,000 2,195,000 3,725,000 2,475,000 175,490
62,125,000 18,580,000 2,235,000 3,405,000 2,385,000 562,329
58,205,000 14,940,000 2,190,000 3,080,000 2,290,000 590,508
56,640,000 12,735,000 2,100,000 2,750,000 2,190,000 785,719
56,350,000 11,565,000 2,095,000 2,420,000 2,090,000 819,122
62,230,000 9,290,000 2,145,000 2,075,000 1,985,000 1,116,249
65,320,000 4,935,000 2,025,000 1,705,000 1,875,000 1,221,767
(1)
Note:
Fiscal Year
2010
2006
2005
2008
2012
2013
2014
2007
Details regarding the City’s outstanding debt can be found in the notes to basic financial statements.
See the Schedule of Demographic and Economic Statistics on page 109 for personal income and population data.
CITY OF GOLDEN VALLEY
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
2009
2011
-101-
Business-Type
Activities
Utility Total Primary
Total Revenue Bonds Government Per Capita (1)
73,714,502$ 2,790,000$ 76,504,502$ 7.53 % 3,730$
76,143,479 4,575,000 80,718,479 7.81 3,966
77,032,714 4,285,000 81,317,714 7.55 3,994
77,590,490 4,020,000 81,610,490 7.12 4,015
89,292,329 3,750,000 93,042,329 8.10 4,581
81,295,508 3,470,000 84,765,508 7.70 4,161
77,200,719 3,175,000 80,375,719 7.16 3,935
75,339,122 2,870,000 78,209,122 6.59 3,789
78,841,249 2,550,000 81,391,249 6.68 3,935
77,081,767 1,040,000 78,121,767 6.23 3,777
Percentage
Income (1)
of Personal
-102-
Less Amounts
General Restricted for
Obligation Repaying
Bonds (1) Principal (2) Total Per Capita (4)
73,714,502$ 13,613,836$ 59,976,164$ 2.24 % 2,901$
76,143,479 13,275,728 62,759,272 2.12 3,060
77,032,714 12,930,925 63,984,075 1.99 3,143
77,590,490 13,106,172 64,308,828 1.89 3,158
89,292,329 25,069,221 63,660,779 1.86 3,132
81,295,508 18,126,689 63,168,819 1.93 3,101
77,200,719 16,425,889 60,774,830 2.02 2,975
75,339,122 18,481,388 56,857,734 2.01 2,754
78,841,249 28,063,240 50,778,009 1.85 2,455
77,081,767 32,650,606 44,431,161 1.63 2,148
(1)
(2)
(3)
(4)
Note:
CITY OF GOLDEN VALLEY
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Taxable Value
Estimated Actual
Percentage of
2010
2008
2009
2012
of Property (3)
2014
Fiscal Year
Details regarding the City’s outstanding debt can be found in the notes to basic financial statements.
Reported net of premiums and discounts. Does not include revenue bonds. Tax increment, special assessment, and
tax abatement bonds are included because property taxes will be levied to pay the debt service on these issues
should the primary sources fail to provide adequate revenue.
2005
2006
2011
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.
2007
Population data can be found in the Schedule of Demographic and Economic Statistics on page 109.
2013
See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property on pages 96–97 for property
value data.
-103-
Estimated
Debt Share of
Outstanding (1) Overlapping Debt
Direct debt
City of Golden Valley 77,081,767$ 100.00 % 77,081,767$
Overlapping debt
ISD No. 270, Hopkins 160,989,283 17.90 28,817,082
ISD No. 281, Robbinsdale 167,683,181 19.81 33,218,038
ISD No. 283, St. Louis Park 48,184,573 0.03 14,455
Hennepin County 753,266,880 2.37 17,852,425
Three Rivers Park District 52,209,049 3.23 1,686,352
Hennepin Regional RR Authority 35,200,157 3.23 1,136,965
Metropolitan Council 99,953,739 1.15 1,146,236
Total overlapping debt 1,317,486,862$ 83,871,553
Total direct and overlapping debt 160,953,320$
Hennepin County Taxpayer Services
CITY OF GOLDEN VALLEY
Direct and Overlapping Governmental Activities Debt
as of December 31, 2014
Estimated
Percentage
Governmental Unit
Source:
Applicable (1)
Note:
(1) Tax increment, special assessment, and tax abatement bonds have been included in this table because property
taxes will be used to pay the debt on these issues should other revenue sources fail to provide adequate amounts.
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City.
This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the
residents and businesses of the City. This process recognizes that, when considering the City’s ability to issue and
repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account.
However, this does not imply that every taxpayer is a resident and, therefore, responsible for repaying the debt of
each overlapping government.
-104-
2005 2006 2007 2008
53,599,150$ 59,113,980$ 64,274,052$ 102,004,719$
1,738,908 1,818,896 1,911,054 1,964,316
51,860,242$ 57,295,084$ 62,362,998$ 100,040,403$
Total net debt applicable to the limit
3.24% 3.08% 2.97% 1.93%
Note:
CITY OF GOLDEN VALLEY
Under state finance law, the City’s outstanding general obligation debt should not exceed 3 percent (2 percent for
years prior to 2008) 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.
Total net debt applicable to limit
Legal debt margin
as a percentage of debt limit
Legal Debt Margin Information
Fiscal Year
Debt limit
Last Ten Fiscal Years
-105-
2009 2010 2011 2012 2013 2014
102,771,441$ 98,227,905$ 90,147,258$ 84,881,071$ 82,331,677$ 81,576,962$
1,987,568 1,918,389 1,793,550 1,784,770 2,927,363 2,833,906
100,783,873$ 96,309,516$ 88,353,708$ 83,096,301$ 79,404,314$ 78,743,056$
1.93% 1.95% 1.99% 2.10% 3.56% 3.47%
Market value 2,719,232,050$
Debt limit (3% of market value) 81,576,962
Total bonded debt 78,121,767$
Less
Debt not payable primarily from tax levies
Special assessment bonds 65,320,000
Tax increment bonds 4,935,000
Tax abatement bonds 1,705,000
State-aid street bonds 1,875,000
Utility revenue bonds 1,040,000
Fund balances available for tax supported debt 412,861
Total net debt applicable to limit 2,833,906
Legal debt margin 78,743,056$
Legal Debt Margin Calculation for Fiscal Year 2014
-106-
Less Operating Net Available
Gross Revenue Expenses Revenue Principal Interest
2005 2,122,614$ 504,699$ 1,617,915$ 205,000$ 127,938$
2006 2,268,382 851,849 1,416,533 160,000 148,076
2007 2,962,313 945,877 2,016,436 290,000 186,387
2008 3,299,370 1,122,250 2,177,120 265,000 175,562
2009 2,350,982 1,121,715 1,229,267 270,000 165,227
2010 2,321,983 1,074,191 1,247,792 280,000 154,595
2011 2,755,829 1,037,944 1,717,885 295,000 140,299
2012 2,384,379 1,269,110 1,115,269 305,000 128,123
2013 2,502,536 1,470,273 1,032,263 320,000 118,749
2014 2,483,612 1,871,604 612,008 1,510,000 (2) 94,968
(1)
(2)
(3)
Note:
In 2014, the City used available funds to exercise an early call provision and retire $1,180,000 of utility
revenue bonds before their stated maturity dates.
Utility revenue bonds, payable from the Storm Sewer Utility Fund.
Debt Service
Details regarding the City’s outstanding debt can be found in the notes to basic financial statements. Gross
revenue includes investment earnings. Operating expenses do not include interest.
Excludes principal refunded from the proceeds of refunding bond issues.
Revenue Bonds (1)
CITY OF GOLDEN VALLEY
Pledged Revenue Coverage
Last Ten Fiscal Years
Fiscal Year
-107-
Special
Assessment
Coverage Collections Principal (3) Interest Coverage
4.86 1,498,566$ 3,140,000$ 1,464,922$ 0.33
4.60 1,915,215 3,105,000 1,616,260 0.41
4.23 1,329,952 3,085,000 1,785,736 0.27
4.94 1,594,627 3,070,000 1,846,084 0.32
2.82 1,733,879 3,135,000 2,008,648 0.34
2.87 1,364,381 2,830,000 2,343,345 0.26
3.95 1,334,959 2,855,000 2,051,651 0.27
2.57 1,142,945 2,855,000 1,975,259 0.24
2.35 1,223,120 2,880,000 1,955,697 0.25
0.38 1,124,414 3,195,000 2,047,723 0.21
Special Assessment Bonds
Debt Service
-108-
Per Capita
Personal School
Population (1) Personal Income (2) Income (3) Enrollment (4)
20,510 1,016,598,660$ 49,566$ 2,435 3.4 %
20,355 1,033,950,120 50,412 2,304 3.5
20,362 1,076,881,275 52,905 2,295 4.2
20,326 1,145,973,360 56,280 2,163 5.9
20,312 1,148,927,968 56,564 2,147 6.7
20,371 1,100,196,968 54,008 2,111 6.1
20,427 1,122,443,223 54,949 2,137 5.2
20,642 1,186,419,592 57,476 2,078 4.8
20,683 1,218,187,334 58,898 2,088 4.1
20,683 1,253,410,483 60,601 2,074 3.2
Sources:
(1)Metropolitan Council – Regional Statistics and Data except for 2014 – City estimate.
(2)
(3)
(4)
(5)Minnesota Department of Economic Security – Hennepin County
School districts
2006
2007
2009
2008
CITY OF GOLDEN VALLEY
Rate (5)
Unemployment
2013
2005
2010
Demographic and Economic Statistics
Last Ten Fiscal Years
Fiscal Year
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 for.
2011
2012
2014
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Employees Rank Employees Rank
5,500 1 15.7 % 3,700 1 N/A
2,102 2 6.0 – – N/A
2,096 3 6.0 – – N/A
OptumHealth 1,700 4 4.8 – – N/A
1,350 5 3.8 700 4 N/A
813 6 2.3 2,000 2 N/A
Courage Center 600 7 1.7 450 5 N/A
420 8 1.2 – – N/A
360 9 1.0 – – N/A
325 10 0.9 270 7 N/A
– – – 1,100 3 N/A
McKesson Corporation – – – 430 6 N/A
– – – 200 8 N/A
CyberOptics – – – 150 9 N/A
Syngenta Seeds, Inc. – – – 120 10 N/A
Total 15,266 43.49 % 9,120
N/A – Not Available
Note: Total city employment information is not available for 2005.
Source:
2014
Current Year and Nine Years Ago
of Total City
G.H. Tennant Company
General Mills, Inc.
Allianz Life Insurance Company
Honeywell
M.A. Mortenson
CITY OF GOLDEN VALLEY
Employment
of Total City
Percentage
2005
Employer Employment
Principal Employers
Percentage
Metropolitan Council – Regional Statistics and Data.
KARE-TV
Lupient Automobile Group
Breck School
Preferred One
United Health Care
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2005 2006 2007 2008
Function
16.10 16.10 16.10 18.10
50.30 50.00 50.25 52.25
31.41 31.41 31.91 31.91
5.80 5.80 5.80 5.80
9.34 9.34 10.59 10.59
1.00 1.00 1.00 1.00
7.00 7.00 7.00 7.00
5.00 5.75 5.75 5.75
Total 125.95 126.40 128.40 132.40
Source: Various city departments
Full-Time Equivalent Employees
as of Year Ended December 31,
Last Ten Fiscal Years
Full-Time Equivalent City Government Employees by Function
CITY OF GOLDEN VALLEY
General government
Public safety
Public works
Motor vehicle licensing
Storm sewer
Parks and recreation
Water and sewer
Golf course
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2009 2010 2011 2012 2013 2014
18.10 18.10 17.60 17.10 23.10 23.10
51.25 52.25 50.75 50.75 44.75 47.25
31.91 30.91 29.91 30.66 31.66 30.66
5.80 5.80 5.50 5.50 5.50 5.50
10.59 10.59 10.59 11.34 12.34 12.34
1.00 1.00 1.00 – – 1.00
7.00 7.00 7.00 7.00 7.00 7.00
5.00 5.00 5.00 4.00 4.00 4.00
130.65 130.65 127.35 126.35 128.35 130.85
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2005 2006 2007 2008
Function
1,429 1,423 1,079 1,025
102 163 113 106
Citations written 1,905 3,194 2,890 2,847
Fire
701 762 754 693
5.1 3.3 3.8 4.2
Water
New (removed) connections 59 (3) (150) 11
Water main breaks 31 26 18 18
Average daily consumption
(thousands of gallons) 2,767 2,851 2,816 2,759
Sources: Various city departments
N/A – Not Available
Street resurfacing (miles)
Adult arrests
Juvenile arrests
Number of calls answered
Highways and streets
Police
CITY OF GOLDEN VALLEY
Fiscal Year
Last Ten Fiscal Years
Operating Indicators by Function
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2009 2010 2011 2012 2013 2014
1,025 1,338 1,177 1,399 1,103 905
106 80 107 70 61 38
2,847 3,184 5,036 3,828 3,524 3,488
693 715 726 648 797 631
4.2 2.7 1.1 1.2 1.0 1.2
11 (7) 1 (5) 2 8
18 17 27 26 10 30
2,759 2,433 2,561 2,765 2,518 2,213
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2005 2006 2007 2008
Function
Public safety
1 1 1 1
8 8 8 8
Fire stations 3 3 3 3
Highways and streets
Streets (miles) 144 144 144 144
Streetlights 1,830 1,830 1,830 1,830
Parks and recreation
Parks acreage 462 462 462 462
Parks and nature areas 30 30 30 30
Tennis court locations 9 9 9 9
Community centers 2 2 2 2
Water
Connections 7,263 7,322 7,319 7,139
Sewer
Connections 7,105 7,160 7,152 7,164
Sources: Various city departments
Last Ten Fiscal Years
Capital Asset Statistics by Function
CITY OF GOLDEN VALLEY
Patrol units
Police
Stations
Fiscal Year
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2009 2010 2011 2012 2013 2014
1 11111
8 88888
3 33333
144 144 144 144 144 144
1,830 1,830 1,830 1,838 1,840 1,840
462 462 462 462 462 462
30 30 30 30 30 30
9 99999
2 22222
7,150 7,143 7,144 7,139 7,141 7,149
7,172 7,175 7,174 7,169 7,179 7,188
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