Comprehensive Annual Financial Report - 2015Comprehensive
Annual Financial Report
For the Fiscal Year Ended December 31, 2015 • Golden Valley, Minnesota
photo by Anne Taylor, 2015 Views of the Valley
CITY OF GOLDEN VALLEY
HENNEPIN COUNTY, MINNESOTA
Comprehensive Annual Financial Report
for Year Ended
December 31, 2015
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 34–66
REQUIRED SUPPLEMENTARY INFORMATION
City of Golden Valley Other Post-Employment Benefits Plan Schedule of
Funding Progress 67
PERA – Public Employees General Employees Retirement Fund
Schedule of City’s and Non-Employer Proportionate Share of Net Pension Liability 68
Schedule of Employer Contributions 68
PERA – Public Employees Police and Fire Fund
Schedule of City’s and Non-Employer Proportionate Share of Net Pension Liability 69
Schedule of Employer Contributions 69
Golden Valley Fire Department Relief Association
Schedule of Changes in Net Pension Asset and Related Ratios 70
Schedule of City Contributions and Non-Employer Contributing Entities 70
CITY OF GOLDEN VALLEY
HENNEPIN COUNTY, MINNESOTA
Table of Contents
Page
SUPPLEMENTAL INFORMATION
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Nonmajor Governmental Funds 71
Combining Balance Sheet 72
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances 73
Nonmajor Special Revenue Funds
Combining Balance Sheet 74
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances 75
Nonmajor Debt Service Funds
Combining Balance Sheet 76
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances 77
Nonmajor Capital Project Funds
Combining Balance Sheet 78–79
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances 80–81
General Fund
Schedule of Revenue – Budget and Actual 82
Schedule of Expenditures – Budget and Actual 83–84
Internal Service Funds 85
Combining Statement of Net Position 86
Combining Statement of Revenue, Expenses, and Changes in Net Position 87
Combining Statement of Cash Flows 88
OTHER CITY INFORMATION
Schedules of Sources and Uses of Public Funds for Tax Increment Financing Districts
Golden Hills No. 1503 89
North Wirth Parkway No. 1505 90
Highway 55 West No. 1506 91
Cornerstone Creek No. 1507 92
Winnetka/Medicine Lake (Liberty Crossing) No. 1508 93
STATISTICAL SECTION (UNAUDITED)94
Net Position by Component 95–96
Changes in Net Position 97–100
Governmental Activities Tax Revenues by Source 101
Fund Balances of Governmental Funds 102–103
Changes in Fund Balances of Governmental Funds 104–105
General Governmental Tax Revenues by Source 106
Assessed Value and Estimated Actual Value of Taxable Property 107–108
Property Tax Rates 109
Principal Property Taxpayers 110
Property Tax Levies and Collections 111
Ratios of Outstanding Debt by Type 112–113
Ratios of General Bonded Debt Outstanding 114
Direct and Overlapping Governmental Activities Debt 115
Legal Debt Margin Information 116–117
Pledged Revenue Coverage 118–119
Demographic and Economic Statistics 120
Principal Employers 121
Full-Time Equivalent City Government Employees by Function 122–123
Operating Indicators by Function 124–125
Capital Asset Statistics by Function 126–127
CITY OF GOLDEN VALLEY
HENNEPIN COUNTY, MINNESOTA
Table of Contents (continued)
INTRODUCTORY SECTION
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Term Expires
Shep Harris Mayor 12/31/2019
Joanie Clausen Councilmember 12/31/2019
Larry Fonnest Councilmember 12/31/2017
Steve Schmidgall Councilmember 12/31/2019
Andy Snope Councilmember 12/31/2017
Timothy Cruikshank 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, 2015
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
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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June 2, 2016
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, 2015. 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, 2015
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, 2015 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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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 20,790. 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 firefighters that are code enforcement officers. The City has a Class 4 insurance rating.
The 2015–2016 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 2015, a stable 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 single family residential properties. In 2015, three new apartments broke ground
with three more ready to go in 2016.
Retirements and cost containment helped keep total overall expenditures under budget in 2015.
The City will once again take a conservative approach for the 2016 budget year.
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The following table shows the City’s building activity for the last 10 years:
Total Permits
Year Number Value
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 1175 $ 51,419,406
2012 798 $ 53,201,489
2013 984 $ 65,531,059
2014 1055 $ 78,090,465
2015 1118 $ 109,928,275
The following major projects were started or completed throughout the City in 2015:
1 General Mills Boulevard (General Mills) – Permits were issued to install roof davits on the
Champions Center and Bell Tower with a value of $310,000, a re-roof of the East Wing with a value of
$600,000, interior demolition of 3 Main with a value of $200,000, and a tenant space remodel of
3 Main with a value of $6,200,000. Total construction value is $7,310,000.
9000 Plymouth Avenue (General Mills) – A re-roof permit was issued with a value of $237,110, and
installation of a process oven with a value of $250,000. Total construction value of 9000 Plymouth
Avenue was $487,110.
9201 Golden Valley Road (Hello Apartments) – The first permit value is worth $8,887,332 for the
foundation. The building will include 172 apartments and work is valued at $26,841,732.
1511 Utica Avenue South (Central Park West) – A shared service agreement with the City of
St. Louis Park for construction of a 199-unit apartment building with portions in each city. St. Louis
Park will be doing all inspections. Total construction value is $32,100,000.
9280 Golden Valley Road (Cornerstone Creek) – This development was approved in 2015 and will
be constructed in 2016. The apartment building will include 45 units. Total construction value is
$6,376,017.
6161 Golden Valley Road (CenterPoint Energy) – A new office/warehouse building with a valuation
of $6,376,017, new regulator building with a value of $55,228, and remodel of existing research lab
with a value of $450,000. Total construction value is $6,881,245.
4150 Olson Memorial Highway (Mortenson) – Six tenant spaces will be remodeled. Total
construction value is $2,189,034.
700 Meadow Lane (Mortenson) – Two tenant spaces will be remodeled. Total construction value is
$1,375,000.
6300 Wayzata Boulevard (Super 8 conversion to Ramada) – The Super 8 at 6300 Wayzata
Boulevard is being converted to a Ramada. A permit was issued for a 30-unit addition and remodel.
Total construction value is $3,072,000.
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1600 Lilac Drive South (Metropolitan Council) – A new lift station is being constructed by the
Metropolitan Council. Total construction value is $3,618,000.
1985 Douglas Drive North (Honeywell) – A small addition with a value of $250,000, and four permits
for tenant improvements valued at $1,920,000. Total construction value is $2,170,000.
7475 Country Club Drive (Golden Valley Senior Living) – A permit issued for a 50-unit addition
and remodel of an existing structure. Total construction value is $4,000,000.
6701 Country Club Drive (Struthers Parkinson Clinic) – A permit issued for an addition to the
existing building. Total construction value is $1,442,000.
8810 10th Avenue North (MGK) – A permit for a Mezzanine addition, lobby addition, and remodel.
Total construction value is $639,000.
7100 Wayzata Boulevard (Lupient Auto Group) – Two permits issued for a remodel. Total
construction value is $1,530,000.
Single Family Homes – Permits were issued for 22 new single family homes in calendar year 2015
with a total valuation of $8,985,126.
LONG-TERM FINANCIAL PLANNING
An unassigned fund balance goal in the General Fund of 60 percent of current year budgeted General
Fund expenditures was approved in the fund balance policy adopted by the City Council for budgetary
and planning purposes. The City strongly believes maintaining this higher level of fund balance is prudent
due to its debt load and the increased uncertainty of its revenue sources. This practice is also supported by
the City’s bond rating agency.
Through its Pavement Management Program, in 1995 the City began reconstructing its streets that did not
meet standards. At the end of 2015, the City has completed 109.5 of 120 miles. The City plans to
construct 0.52 miles in 2016.
In 2015, the City Council has decided the City will replace Brookview Community Center starting in fall
2016. This decision came after a task force report and many resident input meetings.
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 2015, the JWC finished completing an emergency well backup system.
The City is working with Hennepin County and the Cities of Crystal and New Hope to implement a plan
to minimize flood damage to 39 properties in the vicinity of the DeCola Ponds and Medicine Lake Road.
This project includes multiple flood storage projects over a long timeframe and also includes structural
flood proofing of a number of homes. Upon completion of the project, it is expected that all of the
properties that are subject to repeat flooding will be protected from flood waters.
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, 2014.
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 2015 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, 2015, 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, 2015, 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.
EMPHASIS OF MATTER
As described in Note 1 of the notes to basic financial statements, the City has implemented Governmental
Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for
Pensions—an amendment of GASB Statement No. 27, and GASB Statement No. 71, Pension Transition
for Contributions Made Subsequent to the Measurement Date—an amendment of GASB Statement No. 68,
during the year ended December 31, 2015. Our opinion is not modified with respect to this matter.
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 required supplementary information (RSI), 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 GASB, who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the RSI in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
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 relates
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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OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated June 2, 2016 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
June 2, 2016
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CITY OF GOLDEN VALLEY
Management’s Discussion and Analysis
Year Ended December 31, 2015
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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, 2015. We encourage readers to consider the information presented
here in conjunction with additional information that we have furnished in our letter of transmittal, located
earlier in this report.
FINANCIAL HIGHLIGHTS
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred
inflows of resources at the close of fiscal 2015 by $102,272,136 (net position). The City’s
government-wide net position decreased $1,999,239 in 2015, excluding the change in accounting
principle described below. At year-end, the City reported positive balances in all categories of net
position, as was the case at the end of the previous year.
The City recorded a change in accounting principle related to the implementation of new
governmental accounting standards for reporting employee participation in certain pension plans.
The change reduced beginning net position in the government-wide financial statements by
$6,884,784, of which $5,918,713 was attributable to governmental activities and $966,071 was
attributable to business-type activities.
At the end of the fiscal year, the unassigned fund balance for the City’s General Fund was
$8,719,447, which represents 50.9 percent of total General Fund expenditures and transfers out
for 2015.
The City sold three new bond issues, one of which was to refinance a previous issue. The City’s
long-term bonded debt decreased $5,916,190 in 2015.
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, deferred outflows of
resources, liabilities, and deferred inflows of resources, with the difference reported as net position. Over
time, increases or decreases in net position may serve as a useful indicator of whether the financial
position of the City is improving or deteriorating.
The Statement of Activities presents information showing how the City’s net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will only result in cash flows in future fiscal periods
(delinquent taxes and special assessments).
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Both of the government-wide financial statements distinguish functions of the City that are principally
supported by property taxes and intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business-type activities). The governmental activities include general government, public safety,
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.
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 segregated for specific activities or objectives. The City, like other local governments, uses
fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the
funds of the City can be divided into two categories: governmental funds and proprietary funds.
Governmental Funds – Governmental funds account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, and the balances of spendable resources available at the
fiscal year-end. Such information may be useful in evaluating a government’s near-term financing
requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the government’s near-term financing
decisions. Both the governmental funds Balance Sheet and Statement of Revenue, Expenditures, and
Changes in Fund Balances provide a reconciliation to facilitate the comparison between governmental
funds and governmental activities.
The City maintains 24 individual governmental funds. Information is presented separately in the basic
financial statements for the General, Golden Hills Tax Increment Special Revenue, Street Reconstruction
Debt Service, Golden Hills Tax Increment Debt Service, Capital Improvement Capital Project, and
Douglas Drive Improvement Capital Project Funds, which are considered to be major funds. Data from
the other nonmajor governmental funds is 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, only in more detail. The proprietary fund financial statements provide separate information
for the City’s water and sewer (utility), storm sewer, golf course, motor vehicle licensing, and recycling
enterprise operations, all of which are considered to be major funds of the City.
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.
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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, changes in net position may serve over time as a useful indicator of the City’s financial
condition. The City’s assets and deferred outflows of resources exceeded its liabilities and deferred
inflows of resources by $102,272,136 at the end of the 2015 fiscal year, which represents a decrease in
overall net position of $1,999,239 from the previous year, excluding the change in accounting principle.
Net Position – The City has 53.7 percent of its total net position invested in capital assets (land, land
improvements, buildings and improvements, machinery and equipment, infrastructure, and construction in
progress) less any related debt used to acquire those assets that is still outstanding. The City uses these
capital assets to provide services to citizens; consequently, these assets are not available for future
spending. Although the City’s investment in its capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources, since the capital
assets themselves cannot liquidate these liabilities. An additional 17.5 percent of the City’s net position
represents resources that are subject to external restrictions on how they may be used. The remaining
28.8 percent of net position is unrestricted and may be used to meet the City’s ongoing obligations.
The following is a summary of the City’s net position at the end of the last two fiscal years:
2015 2014 2015 2014 2015 2014
Current and other assets 67,381,010$ 73,863,187$ 14,821,926$ 16,669,957$ 82,202,936$ 90,533,144$
Capital assets 76,527,503 74,354,002 31,011,294 30,628,257 107,538,797 104,982,259
Total assets 143,908,513 148,217,189 45,833,220 47,298,214 189,741,733 195,515,403
Deferred outflows of resources
Pension plan deferments 1,853,217 – – – 1,853,217 –
Noncurrent liabilities
(including current portion) 82,992,931 79,393,796 910,000 1,040,000 83,902,931 80,433,796
Other liabilities 3,148,048 3,420,069 811,307 505,379 3,959,355 3,925,448
Total liabilities 86,140,979 82,813,865 1,721,307 1,545,379 87,862,286 84,359,244
Deferred inflows of resources
Pension plan deferments 1,460,528 – – – 1,460,528 –
Net position
Net investment in capital assets 24,816,606 21,499,939 30,101,294 29,588,257 54,917,900 51,088,196
Restricted 17,942,353 29,553,484 – – 17,942,353 29,553,484
Unrestricted 15,401,264 14,349,901 14,010,619 16,164,578 29,411,883 30,514,479
Total net position 58,160,223$ 65,403,324$ 44,111,913$ 45,752,835$ 102,272,136$ 111,156,159$
Governmental Activities Business-Type Activities Total
-7-
The following is a summary of the City’s changes in net position for the last two fiscal years:
2015 2014 2015 2014 2015 2014
Revenues
Program revenues
Charges for services 3,258,476$ 2,991,488$ 13,345,721$ 12,243,095$ 16,604,197$ 15,234,583$
Operating grants and
contributions 600,264 538,956 209,831 701,905 810,095 1,240,861
Capital grants and
contributions 6,377,610 2,028,250 – – 6,377,610 2,028,250
General revenues
Property taxes 21,934,817 22,616,003 – – 21,934,817 22,616,003
Franchise taxes 1,028,368 1,048,227 – – 1,028,368 1,048,227
Other general revenues 372,590 286,108 – – 372,590 286,108
Investment earnings 221,237 347,197 122,591 142,866 343,828 490,063
Gain on sale of capital assets 18,337 71,227 – – 18,337 71,227
Total revenues 33,811,699 29,927,456 13,678,143 13,087,866 47,489,842 43,015,322
Expenses
General government 11,327,689 3,066,025 – – 11,327,689 3,066,025
Public safety 6,907,661 6,831,136 – – 6,907,661 6,831,136
Physical development 13,448,443 11,396,748 – – 13,448,443 11,396,748
Parks and recreation 1,486,218 1,545,616 – – 1,486,218 1,545,616
Interest and fiscal charges 2,066,076 2,456,490 – – 2,066,076 2,456,490
Water and sewer – – 9,867,731 9,867,531 9,867,731 9,867,531
Storm sewer – – 1,795,260 1,944,935 1,795,260 1,944,935
Golf course – – 1,848,745 1,693,028 1,848,745 1,693,028
Motor vehicle licensing – – 349,019 326,201 349,019 326,201
Recycling – – 392,239 393,280 392,239 393,280
Total expenses 35,236,087 25,296,015 14,252,994 14,224,975 49,489,081 39,520,990
Increase in net position
before transfers (1,424,388) 4,631,441 (574,851) (1,137,109) (1,999,239) 3,494,332
Transfers 100,000 100,000 (100,000) (100,000) – –
Increase in net position (1,324,388) 4,731,441 (674,851) (1,237,109) (1,999,239) 3,494,332
Net position – beginning,
as previously reported 65,403,324 60,671,883 45,752,835 46,989,944 111,156,159 107,661,827
Change in accounting principle (5,918,713) – (966,071) – (6,884,784) –
Net position – beginning, restated 59,484,611 60,671,883 44,786,764 46,989,944 104,271,375 107,661,827
Net position – ending 58,160,223$ 65,403,324$ 44,111,913$ 45,752,835$ 102,272,136$ 111,156,159$
TotalGovernmental Activities Business-Type Activities
Governmental Activities – Governmental activities decreased net position by $1,324,388, accounting for
66.2 percent of the total decline in the City’s net position. Key elements of this net decrease include:
Capital grants and contributions increased by $4,349,360 due to the Douglas Drive Project that
involves many agencies.
Revenue from property taxes decreased $681,186 from the prior year due to increases in the
City’s levies for general purposes and debt service, offset by a decrease in tax increments due to
the decertification of the Golden Hills Tax Increment Financing (TIF) District.
Investment earnings decreased by $125,960 due to lower than anticipated market value
adjustments on the City’s investment portfolio.
General government expenses increased $8,261,664 due to the payment of excess tax increments
to Hennepin County for the closure of the Golden Hills TIF District.
Physical development expenses increased by $2,051,695 due to increased street maintenance.
-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
$13,000,000
$14,000,000
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 $674,851,
accounting for (33.8) percent of the total decline in the City’s net position from operations.
Water and Sewer Utility Fund net position decreased by $1,511,690, mainly due to being assessed
$1.7 million by the Golden Valley – Crystal – New Hope Joint Water Commission (JWC) to finance an
emergency repair to a 36-inch water main. The City’s water rates were increased 5.1 percent in 2015 to
offset the increased cost of water purchased from the City of Minneapolis through the JWC and to pay for
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 5 percent increase on the rate
per 1,000 gallons of water billed. Sanitary sewer infrastructure improvements and higher disposal costs
charged by the Metropolitan Council Environment Services have increased expenses for the City.
Storm Sewer Utility Fund net position increased by $667,601. The 2015 planned infrastructure
improvements that coincided with the City’s Pavement Management Program were less than anticipated.
Brookview Operating (Golf Course) Fund net position increased by $201,849. The weather allowed the
golf course to be open more days for all aspects such as golfing, lawn bowling, driving range, pro shop,
and the grill.
Other business-type activities did not have a significant impact on net position in 2015.
-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 $55,468,361, a decrease of $9,948,792 in comparison with the prior year. The
unassigned portion of fund balance is $8,678,159, 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 ($7,902), 2) restricted by various externally imposed constraints
($33,222,298), 3) internally committed for particular purposes ($202,270), or 4) internally assigned for
particular purposes ($13,357,732).
General Fund – The fund balance of the General Fund increased by $585,700 to $10,727,064 at
December 31, 2015.
General Fund operating results can be summarized as follows:
2015 2014
Fund balance – beginning of year 10,141,364$ 9,707,985$
Additions
Revenue 17,562,914 16,526,968
Other sources 139,000 100,000
Total additions 17,701,914 16,626,968
Deductions
Expenditures 15,012,214 15,206,879
Other uses 2,104,000 986,710
Total deductions 17,116,214 16,193,589
Fund balance – end of year 10,727,064$ 10,141,364$
Of the total fund balance, $7,617 representing prepaid expenditures is classified as nonspendable.
An additional $2,000,000 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, 2015 of $8,719,447 is equal to 50.9 percent of total 2015
expenditures and other financing uses in the General Fund, which puts the fund in an excellent financial
position. These reserves are needed for working capital to help pay for expenditures during the first half
of the year, since the City does not receive any significant money from its main revenue source—property
taxes—until July of each year.
-12-
General Fund Revenues – The following is an analysis of 2015 General Fund revenue:
Original Final Over (Under)
Revenue Budget Budget Actual Final Budget
Ad valorem taxes 13,266,155$ 13,266,155$ 13,401,837$ 135,682$ 1.0 %
Licenses 221,565 221,565 242,381 20,816 9.4
Permits 800,000 800,000 1,383,732 583,732 73.0
Intergovernmental 292,805 292,805 318,044 25,239 8.6
Charges for services 1,573,985 1,573,985 1,551,498 (22,487) (1.4)
Fines and forfeits 320,425 320,425 354,066 33,641 10.5
Investment income 100,000 100,000 45,637 (54,363) (54.4)
Other revenue 227,200 227,200 265,719 38,519 17.0
Totals 16,802,135$ 16,802,135$ 17,562,914$ 760,779$ 4.5
(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. 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 2015 General Fund expenditures:
Original Final Over (Under)
Expenditure Budget Budget Actual Final Budget
General government 1,244,440$ 1,244,440$ 1,186,311$ (58,129)$ (4.7) %
Administrative services 1,726,920 1,726,920 1,712,183 (14,737) (0.9)
Casualty insurance 300,000 300,000 169,213 (130,787) (43.6)
Public safety 6,823,905 6,769,905 6,061,663 (708,242) (10.5)
Physical development 5,183,125 5,183,125 4,790,646 (392,479) (7.6)
Parks and recreation 1,148,745 1,148,745 1,092,198 (56,547) (4.9)
Totals 16,427,135$ 16,373,135$ 15,012,214$ (1,360,921)$ (8.3)
(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 more favorable premium adjustment than
anticipated. Public safety expenditures were under budget due to personal service cost savings from
turnover. Physical development expenditures were under budget in personal service costs and street
maintenance. Parks and recreation costs were under budget do to variances in various program
expenditures.
-13-
Other Major Governmental Funds – The City reported five other major governmental funds for 2015.
Two of these funds relate to the City’s Golden Hills Tax Increment District. The Golden Hills Tax
Increment Special Revenue Fund and the Golden Hills Tax Increment Debt Service Fund both ended the
year with total fund balances of $0 due to the TIF District being decertified in 2015. The decrease in the
special revenue fund balance was due to the City remitting excess tax increments collected to Hennepin
County for redistribution. The decrease in the Debt Service Fund balance was due to the final principal
and interest payments made on the outstanding bonds related to this TIF District.
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 $26,119,535 accumulated for future debt service. Fund balance increased by $700,921 in 2015,
mainly due to the issuance of $6.6 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 Capital Improvement Capital Project Fund, which is used to account for major street and street
lighting projects, ended the year with a fund balance of $4,289,317, an increase of $3,099,303. The
increase was primarily due to the receipt of $3,362,003 from the county, representing the City’s share of
the redistributed excess tax increments from the decertified Golden Hills TIF District. Of this, $1,387,060
was subsequently transferred to other funds for capital needs.
The Douglas Drive Improvement Capital Project Fund, used to account for a major street reconstruction
project, ended the year with a fund balance deficit of $41,288, which represents a decrease of $2,359,509
from the prior year due to improvement costs incurred in advance of future funding.
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 $15,814,203 at the end of the fiscal
year.
The Utility Fund had a decrease in net position of $1,511,690 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 $667,601 due to capital projects not fully
completed.
The Brookview Operating (Golf Course) Fund had an increase in net position of $201,849 due to
favorable weather. This fund transfers $50,000 annually to the General Fund for overhead.
The Motor Vehicle Operating Fund had an increase in net position of $6,006. This fund transfers $50,000
annually to the General Fund for overhead.
The Recycling Fund had an increase in net position of $17,829.
-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, 2015 amounts to $107,538,797. This
balance represents a net increase of $2,556,538 from the prior year. The City’s capital assets for the last
two years are as follows:
2015 2014 2015 2014 2015 2014
Land 3,527,685$ 3,527,685$ 857,044$ 857,044$ 4,384,729$ 4,384,729$
Land improvements 5,443,204 5,219,019 3,090,230 3,066,771 8,533,434 8,285,790
Buildings and improvements 12,946,453 12,425,291 667,657 667,657 13,614,110 13,092,948
Machinery and equipment 12,242,958 11,322,615 4,221,304 4,103,777 16,464,262 15,426,392
Infrastructure 111,632,158 109,370,083 40,475,677 39,497,362 152,107,835 148,867,445
Construction in progress 8,444,957 4,567,866 1,704,043 887,913 10,149,000 5,455,779
Less accumulated
depreciation (77,709,912) (72,078,557) (20,004,661) (18,452,267) (97,714,573) (90,530,824)
Net total 76,527,503$ 74,354,002$ 31,011,294$ 30,628,257$ 107,538,797$ 104,982,259$
Governmental Activities Business-Type Activities Total
The completion of some street reconstruction projects moved costs from construction in progress to
infrastructure, which also resulted in increased depreciation. Additional details of the City’s capital asset
activity for the year can be found in Note 4 of the notes to basic financial statements.
Long-Term 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 $28,040,782 of fund balance restricted for debt service in the
governmental funds. The revenue bonds will be paid from the designated business activity for storm
water. The following table presents the City’s long-term liabilities as of the last two year-ends:
2015 2014 2015 2014 2015 2014
G.O. special assessment bonds 64,860,000$ 65,320,000$–$ –$ 64,860,000$ 65,320,000$
G.O. tax increment bonds – 4,935,000 – – – 4,935,000
G.O. certificates of indebtedness 2,295,000 2,205,000 – – 2,295,000 2,205,000
G.O. tax abatement bonds 1,360,000 1,705,000 – – 1,360,000 1,705,000
G.O. state-aid street bonds 1,760,000 1,875,000 – – 1,760,000 1,875,000
Unamortized premiums 1,200,577 1,221,767 – – 1,200,577 1,221,767
Compensated absences 1,508,910 1,508,036 – – 1,508,910 1,508,036
Net pension liability – PERA 9,293,069 – – – 9,293,069 –
Net OPEB obligation 715,375 623,993 – – 715,375 623,993
Revenue bonds – – 910,000 1,040,000 910,000 1,040,000
Total 82,992,931$ 79,393,796$ 910,000$ 1,040,000$ 83,902,931$ 80,433,796$
TotalGovernmental Activities Business-Type Activities
-15-
In 2015, the City sold the following bond issues:
1) $1,870,000 G.O. Improvement Bonds, Series 2015A – The proceeds of this issue are being used
to finance various street improvement projects.
2) $800,000 G.O. Equipment Certificates of Indebtedness, Series 2015B – The proceeds of these
certificates financed the purchases of various pieces of equipment included in the City’s 2015–
2019 capital improvement program.
3) $6,600,000 G.O. Improvement Refunding Bonds, Series 2015C – The proceeds of this issue
and interest earned thereon will be used to refund the 2019 through 2028 maturities of the City’s
G.O. Improvement Bonds, Services 2008A on their February 1, 2018 call date.
Additional details of long-term debt activity for the year can be found in Note 5 of the notes to basic
financial statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
Economic factors affect the preparation of annual budgets. Factors considered in preparing the 2016
budget were the following:
The City will be planning the replacement of Brookview Community Center that will impact
future budgets.
The City’s 2016 budgeted tax levy went up by 6.80 percent from 2015. The City strives on a
balanced budget with revenues equal expenditures.
The City will maintain fund balance for working capital in the General Fund to be at 60 percent
of the current year’s adopted expenditures.
REQUESTS FOR INFORMATION
Questions concerning any of the information provided in this report or requests for additional information
should be addressed by writing to the City of Golden Valley, Attention: Finance Director, 7800 Golden
Valley Road, Golden Valley, Minnesota 55427 or by calling (763) 593-8010.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
Governmental Business-Type
Activities Activities Total
Assets
Cash and temporary investments 38,884,630$ 16,278,300$ 55,162,930$
Delinquent taxes receivable 234,136 – 234,136
Special assessments receivable (net of allowance)3,491,560 384,961 3,876,521
Accounts and interest receivable 453,749 1,582,490 2,036,239
Due from other governmental units 952,898 9,229 962,127
Internal balances 3,611,384 (3,611,384) –
Inventory 117,359 19,973 137,332
Prepaid items 130,703 158,357 289,060
Restricted assets – temporarily restricted
Cash and temporary investments 17,538,489 – 17,538,489
Interest receivable 60,173 – 60,173
Net pension asset – fire relief 1,905,929 – 1,905,929
Capital assets
Not depreciated 11,972,642 2,561,087 14,533,729
Depreciated, net of accumulated depreciation 64,554,861 28,450,207 93,005,068
Total assets 143,908,513 45,833,220 189,741,733
Deferred outflows of resources
Pension plan deferments – PERA 1,703,245 – 1,703,245
Pension plan deferments – fire relief 149,972 – 149,972
Total deferred outflows of resources 1,853,217 – 1,853,217
Total assets and deferred outflows of resources 145,761,730$ 45,833,220$ 191,594,950$
Liabilities
Accounts and contracts payable 377,990$ 352,227$ 730,217$
Accrued interest payable 885,811 15,647 901,458
Accrued salaries and employee benefits 249,272 – 249,272
Due to other governmental units 63,741 102,261 166,002
Deposits 1,571,234 341,172 1,912,406
Long-term liabilities
Due within one year 12,926,130 135,000 13,061,130
Due in more than one year 70,066,801 775,000 70,841,801
Total liabilities 86,140,979 1,721,307 87,862,286
Deferred inflows of resources
Pension plan deferments – PERA 1,288,109 – 1,288,109
Pension plan deferments – fire relief 172,419 – 172,419
Total deferred inflows of resources 1,460,528 – 1,460,528
Net position
Net investment in capital assets 24,816,606 30,101,294 54,917,900
Restricted for
Debt service 12,849,501 – 12,849,501
Redevelopment 331,610 – 331,610
Capital improvements 2,643,013 – 2,643,013
Fire relief pensions 1,883,482 – 1,883,482
Other purposes 234,747 – 234,747
Unrestricted 15,401,264 14,010,619 29,411,883
Total net position 58,160,223 44,111,913 102,272,136
Total liabilities, deferred inflows of resources, and net position 145,761,730$ 45,833,220$ 191,594,950$
See notes to basic financial statements
CITY OF GOLDEN VALLEY
Statement of Net Position
December 31, 2015
-16-
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Governmental activities
General government 11,327,689$ 263,205$ 87,817$ –$
Public safety 6,907,661 1,985,746 512,447 –
Physical development 13,448,443 415,395 – 6,052,610
Parks and recreation 1,486,218 594,130 – 325,000
Interest and fiscal charges 2,066,076 – – –
Total governmental activities 35,236,087 3,258,476 600,264 6,377,610
Business-type activities
Water and sewer 9,867,731 8,266,107 32,683 –
Storm sewer 1,795,260 2,281,125 97,508 –
Golf course 1,848,745 2,071,141 6,248 –
Motor vehicle licensing 349,019 395,718 147 –
Recycling 392,239 331,630 73,245 –
Total business-type activities 14,252,994 13,345,721 209,831 –
Total governmental and
business-type activities 49,489,081$ 16,604,197$ 810,095$ 6,377,610$
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, as previously reported
Change in accounting principle
Net position – beginning, restated
Net position – ending
See notes to basic financial statements
Program Revenues
CITY OF GOLDEN VALLEY
Statement of Activities
Year Ended December 31, 2015
-17-
Governmental Business-Type
Activities Activities Total
(10,976,667)$ –$ (10,976,667)$
(4,409,468) – (4,409,468)
(6,980,438) – (6,980,438)
(567,088) – (567,088)
(2,066,076) – (2,066,076)
(24,999,737) – (24,999,737)
– (1,568,941) (1,568,941)
– 583,373 583,373
– 228,644 228,644
– 46,846 46,846
– 12,636 12,636
– (697,442) (697,442)
(24,999,737) (697,442) (25,697,179)
21,934,817 – 21,934,817
1,028,368 – 1,028,368
372,590 – 372,590
221,237 122,591 343,828
18,337 – 18,337
100,000 (100,000) –
23,675,349 22,591 23,697,940
(1,324,388) (674,851) (1,999,239)
65,403,324 45,752,835 111,156,159
(5,918,713) (966,071) (6,884,784)
59,484,611 44,786,764 104,271,375
58,160,223$ 44,111,913$ 102,272,136$
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 11,476,900$ –$ 8,521,973$
Cash held with trustee – – 17,538,489
Receivables
Delinquent taxes 234,136 – –
Special assessments 11,281 – 3,293,192
Accounts 33,449 – –
Accrued interest 134,447 – 60,173
Due from other funds 67,983 – –
Advance to other funds – – –
Due from other governmental units 208,954 – –
Prepaid items 7,617 – –
Total assets 12,174,767$ –$ 29,413,827$
Liabilities
Accounts payable 179,538$ –$ –$
Contracts payable – – –
Accrued salaries payable 249,272 – –
Due to other governmental units 63,670 – –
Deposits 709,806 – 1,100
Due to other funds – – –
Total liabilities 1,202,286 – 1,100
Deferred inflows of resources
Unavailable revenue – property taxes 234,136 – –
Unavailable revenue – special assessments 11,281 – 3,293,192
Unavailable revenue – other – – –
Total deferred inflows of resources 245,417 – 3,293,192
Fund balances (deficits)
Nonspendable 7,617 – –
Restricted – – 26,119,535
Committed – – –
Assigned 2,000,000 – –
Unassigned 8,719,447 – –
Total fund balances (deficits) 10,727,064 – 26,119,535
Total liabilities, deferred inflows of
resources, and fund balances 12,174,767$ –$ 29,413,827$
See notes to basic financial statements
CITY OF GOLDEN VALLEY
Balance Sheet
Governmental Funds
December 31, 2015
-19-
Golden Hills Capital Douglas Drive
Tax Increment Improvement Improvement
Debt Service Capital Project Capital Project Nonmajor Totals
–$ 2,405,329$ 1,008$ 14,498,100$ 36,903,310$
– – – – 17,538,489
– – – – 234,136
– 233 – 186,854 3,491,560
– 990 265,687 13,693 313,819
– – – – 194,620
– 1,097,800 – – 1,165,783
– 1,620,000 – – 1,620,000
– – 608,388 135,556 952,898
– – – 285 7,902
–$ 5,124,352$ 875,083$ 14,834,488$ 62,422,517$
–$ 478$ 6,371$ 67,269$ 253,656$
– 22,696 – 88,667 111,363
– – – – 249,272
– – – 71 63,741
– 811,628 – 43,411 1,565,945
– – 910,000 67,983 977,983
– 834,802 916,371 267,401 3,221,960
– – – – 234,136
– 233 – 186,854 3,491,560
– – – 6,500 6,500
– 233 – 193,354 3,732,196
– – – 285 7,902
– – – 7,102,763 33,222,298
– – – 202,270 202,270
– 4,289,317 – 7,068,415 13,357,732
– – (41,288) – 8,678,159
– 4,289,317 (41,288) 14,373,733 55,468,361
–$ 5,124,352$ 875,083$ 14,834,488$ 62,422,517$
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THIS PAGE INTENTIONALLY LEFT BLANK
Total fund balances – governmental funds 55,468,361$
Capital assets used in governmental activities are not financial resources and, therefore, are not
reported as assets in governmental funds.
Cost of capital assets 154,102,571
Less accumulated depreciation (77,627,794)
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 (70,275,000)
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.3,732,196
Accrued interest payable is included in net position, but is excluded from fund balances until due
and payable.(885,811)
Internal service funds are used to charge the costs of employee benefits and vehicle maintenance to
individual funds. The assets, liabilities, and deferred outflows/inflows of the internal service funds
are included in governmental activities in the Statement of Net Position.
Internal service balances included in governmental activities (6,957,307)
Add internal service balances allocated to business-type activities 1,803,584
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.(1,200,577)
Total net position – governmental activities 58,160,223$
See notes to basic financial statements
Amounts reported for governmental activities in the Statement of Net Position are different because:
December 31, 2015
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 13,401,837$ –$ 4,015,257$
Tax increments – – –
Special assessments 16,198 – 980,375
Franchise taxes – – –
Licenses and permits 1,626,113 – –
Intergovernmental revenue 318,044 – –
Charges for services 1,551,498 – –
Fines and forfeits 354,066 – –
Investment income 45,637 – 82,311
Other revenue 249,521 – –
Total revenue 17,562,914 – 5,077,943
Expenditures
Current
General government 1,186,311 8,079,807 –
Administrative services 1,712,183 – –
Casualty insurance 169,213 – –
Public safety 6,061,663 – –
Physical development 4,790,646 – –
Parks and recreation 1,092,198 – –
Capital outlay – – –
Debt service
Principal – – 3,215,000
Interest and fiscal charges – – 2,129,716
Total expenditures 15,012,214 8,079,807 5,344,716
Excess (deficiency) of revenue over expenditures 2,550,700 (8,079,807) (266,773)
Other financing sources (uses)
Sale of capital assets – – –
Bonds issued – – 21,776
Refunding bonds issued – – 6,600,000
Paid to refunded bond escrow agent – – (5,715,000)
Premiums on bonds issued – – 60,918
Transfers in 139,000 1,057,981 –
Transfers (out) (2,104,000) – –
Total other financing sources (uses) (1,965,000) 1,057,981 967,694
Net change in fund balances 585,700 (7,021,826) 700,921
Fund balances (deficits)
Beginning of year 10,141,364 7,021,826 25,418,614
End of year 10,727,064$ –$ 26,119,535$
See notes to basic financial statements
CITY OF GOLDEN VALLEY
Statement of Revenue, Expenditures, and Changes in Fund Balances
Governmental Funds
Year Ended December 31, 2015
-22-
Golden Hills Capital Douglas Drive
Tax Increment Improvement Improvement
Debt Service Capital Project Capital Project Nonmajor Totals
–$ 3,362,003$ –$ 1,095,861$ 21,874,958$
– – – 23,439 23,439
– – – 64,266 1,060,839
– – 1,028,368 – 1,028,368
– – – – 1,626,113
– – 1,830,994 2,568,810 4,717,848
– 55,645 – – 1,607,143
– – – – 354,066
– 16,378 2,841 62,699 209,866
– 7,800 – 622,074 879,395
– 3,441,826 2,862,203 4,437,149 33,382,035
– – – 74,869 9,340,987
– – – – 1,712,183
– – – – 169,213
– – – 55,334 6,116,997
– – – – 4,790,646
– – – – 1,092,198
– 241,463 5,221,712 6,793,086 12,256,261
4,935,000 – – 1,170,000 9,320,000
117,628 – – 158,366 2,405,710
5,052,628 241,463 5,221,712 8,251,655 47,204,195
(5,052,628) 3,200,363 (2,359,509) (3,814,506) (13,822,160)
– – – 53,442 53,442
– – – 2,648,224 2,670,000
– – – – 6,600,000
– – – – (5,715,000)
– – – 104,008 164,926
– 1,325,000 – 3,220,060 5,742,041
(771,054) (1,426,060) – (1,340,927) (5,642,041)
(771,054) (101,060) – 4,684,807 3,873,368
(5,823,682) 3,099,303 (2,359,509) 870,301 (9,948,792)
5,823,682 1,190,014 2,318,221 13,503,432 65,417,153
–$ 4,289,317$ (41,288)$ 14,373,733$ 55,468,361$
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Total net change in fund balances – governmental funds (9,948,792)$
Capital outlays are reported in governmental funds as expenditures. However, in the Statement of
Activities the cost of those assets is allocated over the estimated useful lives as depreciation
expense.
Capital outlays 8,312,307
Depreciation expense (6,107,780)
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.(35,105)
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.(9,270,000)
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.15,035,000
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.153,518
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.21,190
Certain receivables (including delinquent taxes, special assessments, and other receivables not
collected within 60 days of year-end) are included in the change in net position, but are excluded
from fund balances until they are available to liquidate liabilities of the current period.750,109
Internal service funds are used to charge the costs of employee benefits and vehiclem aintenance to
individual funds. The net revenue/expense of certain activities of internal service funds is reported
with governmental activities in the Statement of Activities.
Internal service fund activity included in governmental activities (291,281)
Add back internal service fund activity allocated to business-type activities 56,446
Change in net position – governmental activities (1,324,388)$
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, 2015
-24-
THIS PAGE INTENTIONALLY LEFT BLANK
Original Final Over (Under)
Budget Budget Actual Budget
Revenue
Ad valorem taxes 13,266,155$ 13,266,155$ 13,401,837$ 135,682$
Special assessments 10,000 10,000 16,198 6,198
Licenses and permits 1,021,565 1,021,565 1,626,113 604,548
Intergovernmental revenue 292,805 292,805 318,044 25,239
Charges for services 1,573,985 1,573,985 1,551,498 (22,487)
Fines and forfeits 320,425 320,425 354,066 33,641
Investment income 100,000 100,000 45,637 (54,363)
Other revenue 217,200 217,200 249,521 32,321
Total revenue 16,802,135 16,802,135 17,562,914 760,779
Expenditures
Current
General government 1,244,440 1,244,440 1,186,311 (58,129)
Administrative services 1,726,920 1,726,920 1,712,183 (14,737)
Casualty insurance 300,000 300,000 169,213 (130,787)
Public safety 6,823,905 6,769,905 6,061,663 (708,242)
Physical development 5,183,125 5,183,125 4,790,646 (392,479)
Parks and recreation 1,148,745 1,148,745 1,092,198 (56,547)
Total expenditures 16,427,135 16,373,135 15,012,214 (1,360,921)
Excess of revenue over expenditures 375,000 429,000 2,550,700 2,121,700
Other financing sources (uses)
Transfers in 100,000 100,000 139,000 39,000
Transfers (out) (475,000) (529,000) (2,104,000) (1,575,000)
Total other financing sources (uses) (375,000) (429,000) (1,965,000) (1,536,000)
Net change in fund balances –$ –$ 585,700 585,700$
Fund balances
Beginning of year 10,141,364
End of year 10,727,064$
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, 2015
-25-
Storm Sewer Brookview Motor Vehicle
Utility Utility Operating Operating
Assets
Current assets
Cash and temporary investments 6,431,604$ 7,049,790$ 1,149,116$ 577,269$
Receivables
Special assessments 435,058 – – –
Accounts 1,581,815 568 107 –
Allowance for uncollectibles (50,097) – – –
Due from other governmental units – 6,797 374 –
Due from other funds – 178,708 – –
Inventory 4,074 – 15,899 –
Prepaid items 157,549 – 808 –
Total current assets 8,560,003 7,235,863 1,166,304 577,269
Noncurrent assets
Advances to other funds – 1,376,000 – –
Net pension asset – fire relief – – – –
Capital assets
Land – – 857,044 –
Land improvements 30,054 – 3,060,176 –
Buildings and improvements 505,490 – 162,167 –
Machinery and equipment 2,122,491 696,235 1,388,312 14,266
Infrastructure – distribution and
collection systems 21,784,256 18,691,421 – –
Construction in progress 835,002 869,041 – –
Total capital assets 25,277,293 20,256,697 5,467,699 14,266
Less accumulated depreciation (10,665,394) (5,405,103) (3,924,171) (9,993)
Capital assets, net 14,611,899 14,851,594 1,543,528 4,273
Total noncurrent assets 14,611,899 16,227,594 1,543,528 4,273
Total assets 23,171,902 23,463,457 2,709,832 581,542
Deferred outflows of resources
Pension plan deferments – PERA – – – –
Pension plan deferments – fire relief – – – –
Total deferred outflows
of resources – – – –
Total assets and deferred
outflows of resources 23,171,902$ 23,463,457$ 2,709,832$ 581,542$
See notes to basic financial statements
Business-Type Activities – Enterprise Funds
CITY OF GOLDEN VALLEY
Statement of Net Position
Proprietary Funds
December 31, 2015
-26-
Governmental
Activities
Recycling Totals Internal Service
1,070,521$ 16,278,300$ 1,981,320$
– 435,058 –
– 1,582,490 5,483
– (50,097) –
2,058 9,229 –
– 178,708 –
– 19,973 117,359
– 158,357 122,801
1,072,579 18,612,018 2,226,963
– 1,376,000 –
– – 1,905,929
– 857,044 –
– 3,090,230 –
– 667,657 –
– 4,221,304 134,844
– 40,475,677 –
– 1,704,043 –
– 51,015,955 134,844
– (20,004,661) (82,118)
– 31,011,294 52,726
– 32,387,294 1,958,655
1,072,579 50,999,312 4,185,618
– – 1,703,245
– – 149,972
– – 1,853,217
1,072,579$ 50,999,312$ 6,038,835$
(continued)
-27-
Storm Sewer Brookview Motor Vehicle
Utility Utility Operating Operating
Liabilities
Current liabilities
Accounts payable 9,079$ 100,216$ 58,326$ 428$
Accrued interest payable – 15,647 – –
Contracts payable 23,140 139,094 – –
Accrued compensated absences –
current – – – –
Due to other governmental units 75,852 11,479 3,499 –
Due to other funds 366,508 – – –
Deposits 80,039 260,165 968 –
Bonds payable – current – 135,000 – –
Total current liabilities 554,618 661,601 62,793 428
Noncurrent liabilities
Advances from other funds 2,996,000 – – –
Accrued compensated absences – – – –
Net pension liability – PERA – – – –
Net OPEB obligation – – – –
Bonds payable – long-term – 775,000 – –
Total noncurrent liabilities 2,996,000 775,000 – –
Total liabilities 3,550,618 1,436,601 62,793 428
Deferred inflows of resources
Pension plan deferments – PERA – – – –
Pension plan deferments – fire relief – – – –
Total deferred outflows
of resources – – – –
Net position
Net investment in capital assets 14,611,899 13,941,594 1,543,528 4,273
Restricted for fire relief pensions – – – –
Unrestricted 5,009,385 8,085,262 1,103,511 576,841
Total net position 19,621,284 22,026,856 2,647,039 581,114
Total liabilities, deferred inflows
of resources, and net position 23,171,902$ 23,463,457$ 2,709,832$ 581,542$
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, 2015
-28-
Governmental
Activities
Recycling Totals Internal Service
21,944$ 189,993$ 12,971$
– 15,647 –
– 162,234 –
– – 1,021,130
11,431 102,261 –
– 366,508 –
– 341,172 5,289
– 135,000 –
33,375 1,312,815 1,039,390
– 2,996,000 –
– – 487,780
– – 9,293,069
– – 715,375
– 775,000 –
– 3,771,000 10,496,224
33,375 5,083,815 11,535,614
– – 1,288,109
– – 172,419
– – 1,460,528
– 30,101,294 52,726
– – 1,883,482
1,039,204 15,814,203 (8,893,515)
1,039,204 45,915,497 (6,957,307)
1,072,579$ 50,999,312$ 6,038,835$
45,915,497$
(1,803,584)
44,111,913$
-29-
Storm Sewer Brookview Motor Vehicle
Utility Utility Operating Operating
Operating revenue
Charges for services 8,246,679$ 2,281,125$ 1,300,933$ 395,718$
Sales and rentals 19,428 – 816,277 –
Less sales tax and credit card fees – – (46,069) –
Total operating revenue 8,266,107 2,281,125 2,071,141 395,718
Operating expenses
Enterprise operations 9,017,346 1,078,076 1,736,448 339,249
Other services – – – –
Depreciation 792,695 670,089 103,123 2,852
Total operating expenses 9,810,041 1,748,165 1,839,571 342,101
Operating income (loss) (1,543,934) 532,960 231,570 53,617
Nonoperating revenue (expense)
Intergovernmental revenue 32,683 – – –
Investment income 33,440 76,630 5,086 2,242
Other income – 97,508 6,248 147
Gain on sale of capital assets 17,896 – 8,945 –
Interest expense (51,775) (39,497) – –
Total nonoperating revenue (expense) 32,244 134,641 20,279 2,389
Income (loss) before transfers (1,511,690) 667,601 251,849 56,006
Transfers (out) – – (50,000) (50,000)
Change in net position (1,511,690) 667,601 201,849 6,006
Net position
Beginning of year, as previously reported 21,132,974 21,359,255 2,445,190 575,108
Change in accounting principle – – – –
Beginning of year, restated 21,132,974 21,359,255 2,445,190 575,108
End of year 19,621,284$ 22,026,856$ 2,647,039$ 581,114$
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, 2015
-30-
Governmental
Activities
Recycling Totals Internal Service
331,630$ 12,556,085$ 7,145,746$
– 835,705 –
– (46,069) –
331,630 13,345,721 7,145,746
392,239 12,563,358 –
– – 7,866,752
– 1,568,759 12,506
392,239 14,132,117 7,879,258
(60,609) (786,396) (733,512)
64,738 97,421 430,860
5,193 122,591 11,371
8,507 112,410 –
– 26,841 –
– (91,272) –
78,438 267,991 442,231
17,829 (518,405) (291,281)
– (100,000) –
17,829 (618,405) (291,281)
1,021,375 46,533,902 218,758
– – (6,884,784)
1,021,375 46,533,902 (6,666,026)
1,039,204$ 45,915,497$ (6,957,307)$
(618,405)$
(56,446)
(674,851)$
-31-
Storm Sewer Brookview Motor Vehicle
Utility Utility Operating Operating
Cash flows from operating activities
Receipts from customers and users 8,274,549$ 2,371,268$ 2,118,032$ 395,865$
Receipts from interfund services provided – – – –
Paid to suppliers/service providers (7,794,550) (146,261) (686,440) (30,489)
Paid to employees (1,059,875) (326,576) (1,006,303) (278,734)
Payments for interfund services (275,000) (200,000) (85,000) (30,000)
Net cash flows from operating activities (854,876) 1,698,431 340,289 56,642
Cash flows from capital and related financing activities
Acquisition of capital assets (880,406) (1,027,157) (47,161) –
Advances (to) from other funds 1,800,000 – – –
Repayment of advances (172,000) 172,000 – –
Interest paid on advances (44,720) – – –
Proceeds from sale of capital assets 20,824 – 8,945 –
Principal paid on capital debt – (130,000) – –
Interest paid on capital debt – (41,718) – –
Net cash flows from capital and related financing activities 723,698 (1,026,875) (38,216) –
Cash flows from investing activities
Interest received on investments 33,440 77,375 5,086 2,242
Cash flows from noncapital financing activities
Intergovernmental revenue 32,683 – – –
Transfers (out)– – (50,000) (50,000)
Net cash flows from noncapital financing activities 32,683 – (50,000) (50,000)
Net increase (decrease) in cash and temporary
investments/cash equivalents (65,055) 748,931 257,159 8,884
Cash and temporary investments/cash equivalents
Beginning of year 6,496,659 6,300,859 891,957 568,385
End of year 6,431,604$ 7,049,790$ 1,149,116$ 577,269$
Reconciliation of operating income (loss) to net cash flows from
operating activities
Operating income (loss)(1,543,934)$ 532,960$ 231,570$ 53,617$
Adjustments to reconcile operating income (loss) to net cash flows
from operating activities
Depreciation 792,695 670,089 103,123 2,852
Other income – 97,508 6,248 147
Changes in assets, liabilities, and deferred outflows/inflows
Special assessments receivable 21,946 – – –
Accounts receivable (79,794) (568) 112 –
Due from other governmental units 66,290 (6,797) – –
Inventory 107 – (5,538) –
Prepaid items 5,852 – (808) –
Net pension asset – fire relief – – – –
Deferred outflows – pension plan deferments – – – –
Accounts payable (15,188) 75,909 2,867 26
Contracts payable 12,359 130,710 – –
Due to other governmental units (94,889) 957 1,747 –
Deposits (20,320) 197,663 968 –
Accrued compensated absences – – – –
Net pension liability – PERA – – – –
Net OPEB obligation – – – –
Deferred inflows – pension plan deferments – – – –
Net cash flows from operating activities (854,876)$ 1,698,431$ 340,289$ 56,642$
See notes to basic financial statements
CITY OF GOLDEN VALLEY
Business-Type Activities – Enterprise Funds
Year Ended December 31, 2015
Proprietary Funds
Statement of Cash Flows
-32-
Governmental
Activities
Recycling Totals Internal Service
340,137$ 13,499,851$ 5,165,256$
– – 1,982,936
(325,399) (8,983,139) (5,592,468)
– (2,671,488) (2,180,983)
(51,500) (641,500) –
(36,762) 1,203,724 (625,259)
– (1,954,724) (16,585)
– 1,800,000 –
– – –
– (44,720) –
– 29,769 –
– (130,000) –
– (41,718) –
– (341,393) (16,585)
5,193 123,336 11,371
64,738 97,421 430,860
– (100,000) –
64,738 (2,579) 430,860
33,169 983,088 (199,613)
1,037,352 15,295,212 2,180,933
1,070,521$ 16,278,300$ 1,981,320$
(60,609)$ (786,396)$ (733,512)$
– 1,568,759 12,506
8,507 112,410 –
– 21,946 –
– (80,250) 2,446
– 59,493 –
– (5,431) 20,790
– 5,044 (122,801)
– – (115,517)
– – (1,255,518)
3,909 67,523 (5,363)
– 143,069 –
11,431 (80,754) –
– 178,311 (1,248)
– – 874
– – 166,614
– – 91,382
– – 1,314,088
(36,762)$ 1,203,724$ (625,259)$
-33-
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CITY OF GOLDEN VALLEY
Notes to Basic Financial Statements
December 31, 2015
-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 (JWC). Descriptions and condensed
financial information for these organizations are included later in these notes.
3. Jointly Governed Organization – The City is a member of Local Governmental Information
Systems (LOGIS), a consortium of Minnesota municipalities that provides data processing
services and support to its members. LOGIS is a legally separate entity that is financially
independent of the City. Further, the City does not appoint a voting majority of LOGIS’ Board of
Directors. Therefore, it has not been incorporated into the City’s reporting entity. During the 2015
fiscal year, the City paid LOGIS $435,463 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.
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NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2. Recording of Expenditures – Expenditures are generally recorded when a liability is incurred,
except for principal and interest on long-term debt and other long-term liabilities, which are
recognized as expenditures to the extent they have matured. Capital asset acquisitions are
reported as capital outlay expenditures in the governmental funds.
Proprietary fund financial statements are reported using the economic resources measurement focus and
accrual basis of accounting, similar to the government-wide financial statements. Proprietary funds
distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses
generally result from providing services and producing and delivering goods in connection with a
proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise
funds and internal service funds are charges to customers for sales and services. The operating expenses
for the enterprise funds and internal service funds include the cost of sales and services, administrative
expenses, and depreciation on capital assets. All revenues and expenses that do not meet this definition
are reported as nonoperating revenues and expenses.
Aggregated information for the internal service funds is reported in a single column in the proprietary
fund financial statements. Because the principal user of the internal services is the City’s governmental
activities, the financial statements of the internal service funds are consolidated into the governmental
column when presented in the government-wide financial statements. The cost of these services is
reported in the appropriate functional activity.
Description of Funds
The City reports the following major governmental funds:
General Fund – This is the general operating fund of the City. It is used to account for all financial
resources except those required to be accounted for in another fund.
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.
Capital Improvement Capital Project Fund – This fund is used to provide financing for major
street and streetlight projects in the City, including a portion of the street reconstruction program.
Douglas Drive Improvement Capital Project Fund – This fund used to account for street
improvements related to Douglas Drive.
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 modified accrual
basis. The City has established budgetary control at the division level. City management may transfer
appropriations within the division level, but must request City Council approval before exceeding the
budget at that level. Appropriations lapse at year-end; however, the City Council may approve the
carryover of specific amounts. 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
for future bond refunding. Earnings on these accounts are allocated directly to this fund. The investments
and accrued interest related to these accounts are reported as restricted assets in the government-wide
financial statements.
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 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 of three months or less to be cash equivalents. The proprietary
funds’ portion of the government-wide cash and investment pool is considered to be cash equivalent.
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. Property taxes may be paid by
taxpayers in two equal installments on May 15 and October 15. The county provides tax settlements to
cities and other taxing districts three times a year; in July, December, and January.
Property taxes are recognized as revenue in the year levied in the government-wide financial statements
and proprietary fund financial statements. In the governmental fund financial statements, taxes are
recognized as revenue when received in cash or within 60 days after year-end. Taxes which remain
unpaid on December 31 are classified as delinquent taxes receivable, and are offset by a deferred inflow
of resources in the governmental fund financial statements.
I. Special Assessments
Special assessments represent the financing for public improvements paid for by benefiting property
owners. Special assessments are recorded as receivables upon certification to the county. Special
assessments are recognized as revenue in the year levied in the government-wide financial statements and
proprietary fund financial statements. In the governmental fund financial statements, special assessments
are recognized as revenue when received in cash or within 60 days after year-end. Governmental fund
special assessments receivable which remain unpaid on December 31 are offset by a deferred inflow of
resources in the governmental fund financial statements.
Special assessments receivable at December 31, 2015 consist of the following:
Enterprise
Funds
Street Capital
Reconstruction Improvement
General Debt Service Capital Project Nonmajor Utility
Special assessments receivable
Delinquent 5,668$ 21,379$ 233$ 2,798$ 50,097$
Deferred 5,613 3,271,813 – 184,056 384,961
Total 11,281 3,293,192 233 186,854 435,058
Allowance for uncollectible – – – – (50,097)
Net of allowance 11,281$ 3,293,192$ 233$ 186,854$ 384,961$
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 consists 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. Deferred Outflows/Inflows of Resources
In addition to assets, a statement of financial position may report a separate financial statement element
called deferred outflows of resources, representing consumptions of net position that apply to future
periods which are not recognized as an outflow of resources (expense/expenditure) until then. The City
has one item that qualifies for reporting in this category, deferred outflows of resources related to
pensions, reported in the government-wide and proprietary fund Statement of Net Position. This deferred
outflow results from differences between expected and actual experience, changes of assumptions, and
projected and actual earnings on pension plan investments, and from contributions to the plan subsequent
to the measurement date and before the end of the reporting period. These amounts are deferred and
amortized as required under pension standards.
In addition to liabilities, statements of financial position or balance sheets may report a separate financial
statement element called deferred inflows of resources, representing acquisitions of net position that apply
to future periods which are not recognized as an inflow of resources (revenue) until that time. The City
has two types of items which qualify for reporting in this category.
The first item, unavailable revenue, arises only under the modified accrual basis of accounting and,
therefore, is reported only in the governmental funds Balance Sheet. The governmental funds report
unavailable revenue from three sources: property taxes, special assessments, and other accounts
receivable not collected within 60 days of year-end. These amounts are deferred and recognized as an
inflow of resources in the period that the amounts become available.
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NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The second item, deferred inflows of resources related to pensions, is reported in the government-wide
and enterprise funds Statement of Net Position. This deferred inflow results from differences between
expected and actual experience, changes of assumptions, and projected and actual earnings on pension
plan investments. These amounts are deferred and amortized as required under pension standards.
O. Long-Term Liabilities
In the government-wide and proprietary fund financial statements, long-term debt and other long-term
obligations are reported as liabilities. Bond premiums and discounts are deferred and amortized over the
life of the bonds using the straight-line method.
In the fund financial statements, governmental fund types recognize bond premiums and discounts during
the current period. The face amount of debt issued is reported as other financing sources. Premiums
received on debt issuances are reported as other financing sources while discounts on debt issuances are
reported as other financing uses.
P. Compensated Absences
Substantially all regular full-time and part-time city employees hired before January 1, 2009 earn vacation
and sick leave at various rates based on longevity. Unused vacation may be accumulated up to a
maximum of two times the employee’s annual vacation allowance. Unused sick leave may be
accumulated up to a maximum of 800 hours. Employees in good standing are paid for any unused
vacation time upon termination. After five years of service, employees in good standing are also paid for
one-third of any unused sick leave upon termination. Employees hired on or after January 1, 2009 earn
personal time off (PTO) rather than vacation and sick leave. PTO may be accumulated up to various
maximum amounts as specified by contract. Employees in good standing are paid for any unused PTO
upon termination. All such benefits are payable at the employee’s current rate of pay at the time their
employment with the City terminates. These benefits are accrued as they vest in the Payroll Benefits
Internal Service Fund and are funded as they accrue from the City’s General Fund and enterprise funds.
Q. Pensions
For purposes of measuring the net pension liability/asset, deferred outflows/inflows of resources, and
pension expense, information about the fiduciary net position of the applicable pension and additions
to/deductions from the pension plan’s fiduciary net position have been determined on the same basis as
they are reported by the plan except that the Public Employees Retirement Association (PERA) pension
plan’s fiscal year-end is June 30. For this purpose, plan contributions are recognized as of employer
payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance
with the benefit terms. Investments are reported at fair value.
R. Risk Management
The City is exposed to various risks of loss related to torts: theft of, damage to, and destruction of assets;
errors and omissions; and natural disasters. The City participates in the League of Minnesota Cities
Insurance Trust (LMCIT), a public entity risk pool for its general property and casualty, workers’
compensation, and other miscellaneous insurance coverage. The LMCIT operates as a common risk
management and insurance program for a large number of cities in Minnesota. The City pays an annual
premium to the LMCIT for insurance coverage. The LMCIT agreement provides that the trust will be
self-sustaining through member premiums and will reinsure through commercial companies for claims in
excess of certain limits. The City also carries commercial insurance for certain other risks of loss. Settled
claims resulting from these risks did not exceed insurance coverage in any of the last three fiscal years.
There were no significant reductions in insurance coverage in 2015.
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NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
S. Fund Balance Classifications
In the fund financial statements, governmental funds report fund balance in classifications that disclose
constraints for which amounts in those funds can be spent. These classifications are as follows:
Nonspendable – Consists of amounts that are not in spendable form, such as prepaid items,
inventory, and other long-term assets.
Restricted – Consists of amounts related to externally imposed constraints established by
creditors, grantors, or contributors; or constraints imposed by state statutory provisions.
Committed – Consists of internally imposed constraints established by resolution of the City
Council which cannot be used for any other purpose unless the City Council removes or changes
the specified use by taking the same type of action employed to previously commit those
amounts.
Assigned – Consists of internally imposed constraints representing amounts intended to be used
by the City for specific purposes that do not meet the criteria to be classified as restricted or
committed. Assigned amounts represent intended uses established by the governing body itself or
by an official to which the governing body delegates the authority. Pursuant to City Council
resolution, the City Council is authorized to establish assignments of fund balance.
Unassigned – The residual classification for the General Fund which also reflects negative
residual amounts in other funds.
When both restricted and unrestricted resources are available for use, it is the City’s policy to first use
restricted resources, and then use unrestricted resources as needed. When committed, assigned, or
unassigned resources are available for use, it is the City’s policy to use resources in the following order:
1) committed, 2) assigned, and 3) unassigned.
The City’s fund balance policy includes a fund balance goal in the General Fund of maintaining an
unassigned fund balance of 60 percent of current year budgeted General Fund expenditures.
T. Net Position
In the government-wide and proprietary fund financial statements, net position represents the difference
between assets, deferred outflows of resources, liabilities, and deferred inflows of resources. Net position
is displayed in three components:
Net Investment in Capital Assets – Consists of capital assets, net of accumulated depreciation,
reduced by any outstanding debt attributable to acquire capital assets.
Restricted Net Position – Consists of net position restricted when there are limitations imposed
on its use through external restrictions imposed by creditors, grantors, or laws or regulations of
other governments.
Unrestricted Net Position – All other elements of net position that do not meet the definition of
“restricted” or “net investment in capital assets.”
The City applies restricted resources first when an expense is incurred for which both restricted and
unrestricted resources are available.
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NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
U. 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.
V. Change in Accounting Principle
During the year ended December 31, 2015, the City implemented GASB Statement No. 68, Accounting
and Financial Reporting for Pensions—an amendment of GASB Statement No. 27, and GASB Statement
No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date—an
amendment of GASB Statement No. 68. These statements included major changes in how governmental
employers account for pension benefit expenses and liabilities. Under this new standard, the City is
required to report its participation in two state-wide, multi-employer, cost-sharing defined benefit pension
plans administered by the PERA and a single-employer defined benefit pension plan administered by the
Golden Valley Fire Department Relief Association (the Association). In financial statements prepared
using the economic resources measurement focus and accrual basis of accounting (government-wide and
proprietary funds), an employer is required to report its share of any net pension asset or liability, deferred
outflows of resources, deferred inflows of resources, and pension expense related to such pension plans.
This standard required retroactive implementation, which resulted in the restatement of net position as of
December 31, 2014. The details of the restatement are as follows:
Governmental Business-Type
Activities Activities Internal Service
Net position – December 31, 2014, as previously reported 65,403,324$ 45,752,835$ 218,758$
Change in accounting principle
Net pension asset 1,539,181 251,231 1,790,412
Deferred outflows/inflows related to pensions 387,938 63,321 451,259
Net pension liability (7,845,832) (1,280,623) (9,126,455)
Total change in accounting principle (5,918,713) (966,071) (6,884,784)
Net position – December 31, 2014, restated 59,484,611$ 44,786,764$ (6,666,026)$
Government-Wide Financial Statements
Proprietary Fund
Financial
Statements
NOTE 2 – CASH AND INVESTMENTS
A. Components of Cash and Investments
Cash and investments at year-end consist of the following:
Deposits 2,794,597$
Investments 69,902,457
Cash on hand 4,365
Total 72,701,419$
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NOTE 2 – CASH AND INVESTMENTS (CONTINUED)
Cash and investments are presented in the financial statements as follows:
Government-Wide Statement of Net Position
Cash and temporary investments 55,162,930$
Restricted assets – cash and temporary investments 17,538,489
Total 72,701,419$
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 $2,794,597 while the balance on the bank
records was $2,974,080. At December 31, 2015, all deposits were fully covered by federal depository
insurance or collateral held by the City’s agent in the City’s name.
C. Investments
Investments are subject to various risks, the following of which are considered the most significant:
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.
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NOTE 2 – CASH AND INVESTMENTS (CONTINUED)
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 $10,000,000; that are a
primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; or
certain Minnesota securities broker-dealers. The City’s investment policies do not further address
credit risk.
The City has the following investments at year-end:
Concentration Risk
Greater Than
Investment Type Rating Agency No Maturity Less Than 1 1 to 5 Total 5 Percent
U.S. treasury securities –$ 7,049,665$ –$ 7,049,665$ N/A
U.S. government guaranteed agencies – 8,000 1,543,068 1,551,068 N/A
U.S. agency debt securities
Federal Home Loan Bank AA S&P – 7,999,680 2,657,154 10,656,834 Yes
Federal Home Loan Mortgage Corporation AA S&P – – 11,542,260 11,542,260 Yes
Federal National Mortgage Association AA S&P – 59,852 5,290,578 5,350,430 Yes
Federal Farm Credit Bank AA S&P – – 991,920 991,920 Yes
Negotiable certificates of deposit – 1,987,309 4,690,776 6,678,085 No
Local government debt securities AA S&P – 1,779,906 6,322,365 8,102,271 No
Local government debt securities AA Moody – 1,688,645 – 1,688,645 No
Local government debt securities A S&P – 1,223,384 1,299,464 2,522,848 No
Local government debt securities A Moody – – 608,379 608,379 No
Investment pool/mutual funds
4M Fund 12,160,052 – – 12,160,052 No
4M Fund – term series – 1,000,000 – 1,000,000 No
Total investments 12,160,052$ 22,796,441$ 34,945,964$ 69,902,457$
N/A – Not Applicable
Not Rated
Credit Risk Maturity Duration in Years
Interest Risk –
Not Rated
Not Rated
Not Rated
Not Rated
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NOTE 3 – INTERFUND BALANCES AND TRANSFERS
A. Advances To/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. The noncurrent portion of the advance outstanding at December 31,
2015 was $1,376,000. Interest expense for 2015 was $6,708.
In 2015, the Capital Improvement Capital Project Fund advanced $1,800,000 to the Utility Enterprise
Fund to finance an emergency pipe reconstruction project. The advance will be repaid through annual
payments due each October 31 from 2016 through 2025, consisting of $180,000 principal plus interest on
the outstanding balance at 2.6 percent. The noncurrent portion of the advance outstanding at
December 31, 2015 was $1,620,000. Interest expense for 2015 was $7,800.
B. Due To/From Other Funds
Interfund receivables and payables at year-end were as follows:
Receivable Fund Payable Fund Amount Reason
General Nonmajor governmental 67,983$ Short-term cash flow
Capital Improvement Capital Project Douglas Drive Improvement Capital Project 910,000$ Short-term cash flow
Capital Improvement Capital Project Utility Enterprise 187,800$ Current portion of advance
plus accrued interest
Storm Sewer Utility Utility Enterprise 178,708$ Current portion of advance
plus accrued interest
C. Interfund Transfers
Interfund transfers for the 2015 fiscal year were as follows:
Golden Hills Capital
Tax Increment Improvement Nonmajor
Transfers Out General Special Revenue Capital Project Governmental Total
General –$ –$ 1,325,000$ 779,000$ 2,104,000$
Golden Hills Tax Increment Debt Service – 771,054 – – 771,054
Capital Improvement Capital Project 39,000 – – 1,387,060 1,426,060
Nonmajor governmental – 286,927 – 1,054,000 1,340,927
Brookview Operating Enterprise 50,000 – – – 50,000
Motor Vehicle Operating Enterprise 50,000 – – – 50,000
Total 139,000$ 1,057,981$ 1,325,000$ 3,220,060$ 5,742,041$
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.
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NOTE 4 – CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2015 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 4,567,866 6,418,311 – (2,541,220) 8,444,957
Total capital assets, not depreciated 8,095,551 6,418,311 – (2,541,220) 11,972,642
Capital assets, depreciated
Land improvements 5,219,019 191,228 (31,931) 64,888 5,443,204
Buildings and improvements 12,425,291 356,912 – 164,250 12,946,453
Machinery and equipment 11,322,615 1,362,441 (411,249) (30,849) 12,242,958
Infrastructure 109,370,083 – – 2,262,075 111,632,158
Total capital assets, depreciated 138,337,008 1,910,581 (443,180) 2,460,364 142,264,773
Less accumulated depreciation on
Land improvements (3,141,808) (163,700) 26,954 – (3,278,554)
Buildings and improvements (10,235,591) (242,912) – – (10,478,503)
Machinery and equipment (6,161,225) (884,154) 381,121 80,856 (6,583,402)
Infrastructure (52,539,933) (4,829,520) – – (57,369,453)
Total accumulated depreciation (72,078,557) (6,120,286) 408,075 80,856 (77,709,912)
Net capital assets, depreciated 66,258,451 (4,209,705) (35,105) 2,541,220 64,554,861
Total capital assets, net 74,354,002$ 2,208,606$ (35,105)$ –$ 76,527,503$
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 887,913 1,794,445 – (978,315) 1,704,043
Total capital assets, not depreciated 1,744,957 1,794,445 – (978,315) 2,561,087
Capital assets, depreciated
Land improvements 3,066,771 23,459 – – 3,090,230
Buildings and improvements 667,657 – – – 667,657
Machinery and equipment 4,103,777 136,820 (100,149) 80,856 4,221,304
Infrastructure – distribution
and collection systems 39,497,362 – – 978,315 40,475,677
Total capital assets, depreciated 47,335,567 160,279 (100,149) 1,059,171 48,454,868
Less accumulated depreciation on
Land improvements (2,476,245) (51,978) – – (2,528,223)
Buildings and improvements (465,385) (17,464) – – (482,849)
Machinery and equipment (2,676,649) (296,230) 97,221 (80,856) (2,956,514)
Infrastructure – distribution
and collection systems (12,833,988) (1,203,087) – – (14,037,075)
Total accumulated depreciation (18,452,267) (1,568,759) 97,221 (80,856) (20,004,661)
Net capital assets, depreciated 28,883,300 (1,408,480) (2,928) 978,315 28,450,207
Total capital assets, net 30,628,257$ 385,965$ (2,928)$ –$ 31,011,294$
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NOTE 4 – CAPITAL ASSETS (CONTINUED)
C. Depreciation Expense by Function
Depreciation expense for the year ended December 31, 2015 was charged to the following functions:
Governmental activities
General government 133,812$
Public safety 343,575
Physical development 5,306,617
Parks and recreation 323,776
Capital assets held by the City’s internal service funds –
charged to the various functions based on usage of the assets 12,506
Total depreciation expense – governmental activities 6,120,286$
Business-type activities
Utility (water and sewer) 792,695$
Storm sewer utility 670,089
Brookview (golf course) operating 103,123
Motor vehicle operating 2,852
Total depreciation expense – business-type activities 1,568,759$
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NOTE 5 – LONG-TERM LIABILITIES
A. Long-Term Liabilities
Final Balance –
Original Issue Interest Rate Issue Date Maturity Date End of Year
Governmental activities
General obligation special assessment bonds
Improvement Bonds of 2006B 7,320,000$ 4.10–4.25% 07/01/2006 02/01/2026 7,030,000$
Improvement Bonds of 2007C 4,105,000$ 4.00–4.50% 06/15/2007 02/01/2027 3,990,000
Improvement Bonds of 2008A 6,680,000$ 3.50–4.25% 06/15/2008 02/01/2028 6,560,000
Improvement Bonds of 2009A 7,305,000$ 2.00–4.00% 05/01/2009 02/01/2029 5,675,000
Improvement Refunding Bonds of 2009C 4,880,000$ 2.50–3.00% 05/01/2009 02/01/2016 800,000
Improvement Refunding Bonds of 2009D 5,465,000$ 2.00–4.00% 08/19/2009 02/01/2018 2,555,000
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 1,565,000
Improvement Refunding Bonds of 2011C 4,870,000$ 2.00–3.00% 05/15/2011 02/01/2019 2,505,000
Improvement Bonds of 2012A 1,575,000$ 2.00–3.00% 05/15/2012 02/01/2032 1,425,000
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 1,540,000
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 2,235,000
Improvement Refunding Bonds of 2014C 3,950,000$ 2.00–4.00% 06/19/2014 02/01/2027 3,950,000
Improvement Bonds of 2015A 1,870,000$ 3.00–3.50% 07/15/2015 02/01/2036 1,870,000
Improvement Refunding Bonds of 2015C 6,600,000$ 2.00–2.50% 07/15/2015 02/01/2028 6,600,000
64,860,000
General obligation certificates of indebtedness
Equipment Certificates of 2012B 725,000$ 0.50–0.75% 05/15/2012 02/01/2016 245,000
Equipment Certificates of 2013A 750,000$ 1.25% 05/21/2013 02/01/2017 500,000
Equipment Certificates of 2014B 750,000$ 0.40–0.90% 06/19/2014 02/01/2018 750,000
Equipment Certificates of 2015B 800,000$ 2.00% 07/15/2015 02/01/2019 800,000
2,295,000
General obligation tax abatement bonds
Tax Abatement Refunding Bonds of 2013A 2,075,000$ 1.25% 05/21/2013 02/01/2019 1,360,000
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 1,760,000
Unamortized premiums on debt issued 1,200,577
Compensated absences payable 1,508,910
Net pension liability – PERA 9,293,069
Net OPEB obligation 715,375
Total governmental activity long-term liabilities 82,992,931
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 910,000
Total government-wide long-term liabilities 83,902,931$
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NOTE 5 – LONG-TERM LIABILITIES (CONTINUED)
B. Descriptions of Long-Term Liabilities
Special Assessment Bonds – These bonds are payable primarily from special assessments levied
on the properties benefiting from the improvements funded by these issues. Any deficiencies in
revenue to fund these issues will be provided from general property taxes.
Improvement Refunding Bonds of 2012C – The General Obligation (G.O.) Improvement
Refunding Bonds, Series 2012C were 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. This “crossover refunding” reduced the City’s total future debt service payments by
$656,975 and resulted in a present value savings of $567,016. The difference between the
carrying value of the refunded debt and the resources used to redeem the debt was not material.
Improvement Refunding Bonds of 2013B – The G.O. Improvement Refunding Bonds,
Series 2013B will be used to refund the 2017 through 2026 maturities of the City’s
G.O. Improvement Bonds, Series 2006B, totaling $5,715,000, 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 – The G.O. Improvement Refunding Bonds,
Series 2014C 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.
Improvement Refunding Bonds of 2015C – The G.O. Improvement Refunding Bonds,
Series 2015C will be used to refund the 2019 through 2028 maturities of the City’s
G.O. Improvement Bonds, Series 2008A, totaling $6,560,000, on their February 1, 2018 call date.
Until the call date, the City will make all debt service payments on the 2008A issue, and all debt
service on the 2015C issue will be paid from the refunding escrow account. This “crossover
refunding” will reduce the City’s total future debt service payments by $617,605 and result in a
present value savings of $553,034.
Certificates of Indebtedness – The City has four outstanding issues of general obligation
certificates of indebtedness, issued in accordance with Minnesota Statute § 412.301 to finance
various equipment purchases, which will be repaid primarily with ad valorem tax levies.
Tax Abatement Bonds – The City has one outstanding issue of general obligation tax abatement
refunding bonds, issued in accordance with Minnesota Statute § 469.1813 to finance various
improvements. The bonds will be repaid primarily with ad valorem tax levies.
State-Aid Street Bonds – The City has one outstanding issue of general obligation state-aid
street bonds, issued in accordance with Minnesota Statute § 162.18 to finance various street
improvements. The bonds will be repaid primarily with state-aid.
Utility Revenue Bonds – These bonds were issued for improvements or projects that directly
benefit the Storm Sewer Utility Fund and will be repaid from revenue sources of that fund.
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NOTE 5 – LONG-TERM LIABILITIES (CONTINUED)
Other Long-Term Liabilities – The City provides its employees with various benefits, including
compensated absences, pension benefits, and other post-employment benefits (OPEB), as
described elsewhere in these notes. These benefits are paid from the Payroll Benefits Internal
Service Fund.
C. Minimum Debt Payments
Minimum annual payments to retire bonds and certificates of indebtedness are as follows:
Year Ending
December 31, Principal Interest Principal Interest
2016 10,695,000$ 1,826,001$ 745,000$ 26,692$
2017 7,485,000 1,477,160 765,000 17,975
2018 10,050,000 1,149,126 515,000 9,175
2019 3,105,000 923,834 270,000 2,700
2020 2,935,000 854,224 – –
2021–2025 17,955,000 3,045,908 – –
2026–2030 11,065,000 900,766 – –
2031–2035 1,520,000 116,068 – –
2036 50,000 – – –
64,860,000$ 10,293,087$ 2,295,000$ 56,542$
Governmental Activities
Special Assessment Bonds Certificates of Indebtedness
General ObligationGeneral Obligation
Year Ending
December 31, Principal Interest Principal Interest Principal Interest
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 – – 135,000 49,131 160,000 10,375
2021–2025 – – 775,000 155,113 170,000 3,528
2026–2030 – – 355,000 14,747 – –
1,360,000$ 33,688$ 1,760,000$ 466,616$ 910,000$ 117,949$
Tax Abatement Bonds
Governmental Activities Business-Type Activities
Utility Revenue BondsState-Aid Street Bonds
D. Revenue Pledged
Future revenue pledged for the payment of long-term debt is as follows:
Percent of Remaining Principal Pledged
Use of Total Term of Principal and Interest Revenue
Bond Issue Proceeds Type Debt Service Pledge and Interest Paid Received
Utility Revenue Bonds, Storm sewer Utility charges 100% 2006–2021 1,027,949$ 171,718$ 2,281,125$
Series 2006C improvements
Revenue Pledged Current Year
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NOTE 5 – LONG-TERM LIABILITIES (CONTINUED)
E. 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 65,320,000$ 8,470,000$ 8,930,000$ 64,860,000$ 10,695,000$
G.O. tax increment bonds 4,935,000 – 4,935,000 – –
G.O. certificates of indebtedness 2,205,000 800,000 710,000 2,295,000 745,000
G.O. tax abatement bonds 1,705,000 – 345,000 1,360,000 345,000
G.O. state-aid street bonds 1,875,000 – 115,000 1,760,000 120,000
Unamortized premiums on debt issued 1,221,767 164,926 186,116 1,200,577 –
Compensated absences 1,508,036 1,112,579 1,111,705 1,508,910 1,021,130
Net pension liability – PERA (1) – 9,924,277 631,208 9,293,069 –
Net OPEB obligation 623,993 184,537 93,155 715,375 –
Total governmental activities 79,393,796 20,656,319 17,057,184 82,992,931 12,926,130
Business-type activities
Utility revenue bonds 1,040,000 – 130,000 910,000 135,000
Total 80,433,796$ 20,656,319$ 17,187,184$ 83,902,931$ 13,061,130$
(1) The pension liability additions include the change in accounting principle described in Note 1.
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, 2015, 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 5,237,051$
Governmental/nonprofit revenue bonds 2007–2009 2 3,959,123
4 9,196,174$
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NOTE 6 – COMPONENTS OF FUND BALANCE
At December 31, 2015, the City had the following fund balances:
Street
Reconstruction Capital Douglas Drive
General Debt Service Improvement Improvement Nonmajor Total
Nonspendable
Prepaid items 7,617$ –$ –$ –$ 285$ 7,902$
Restricted
Debt service – 26,119,535 – – 1,921,247 28,040,782
Redevelopment – – – – 331,610 331,610
Street improvements – – – – 2,166,018 2,166,018
Equipment replacement – – – – 28,991 28,991
Park improvements – – – – 170,202 170,202
State-aid street improvements – – – – 2,279,224 2,279,224
Cemetery maintenance – – – – 77,454 77,454
DWI enforcement – – – – 128,017 128,017
Total restricted – 26,119,535 – – 7,102,763 33,222,298
Committed
Human service needs – – – – 202,270 202,270
Assigned
Street improvements – – – – 776,986 776,986
Cable improvements – – – – 168,534 168,534
Park improvements – – – – 649,520 649,520
Equipment replacement – – – – 3,432,544 3,432,544
Brookview Community Center – – – – 993,854 993,854
Capital improvements – – 4,289,317 – 1,046,977 5,336,294
Self-insurance 2,000,000 – – – – 2,000,000
Total assigned 2,000,000 – 4,289,317 – 7,068,415 13,357,732
Unassigned 8,719,447 – – (41,288) – 8,678,159
Total 10,727,064$ 26,119,535$ 4,289,317$ (41,288)$ 14,373,733$ 55,468,361$
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 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 180,013$
Interest on net OPEB obligation 28,080
Adjustment to annual required contribution (23,556)
Annual OPEB cost (expense)184,537
Contributions made 93,155
Increase in net OPEB obligation 91,382
Net OPEB obligation – beginning of year 623,993
Net OPEB obligation – end of year 715,375$
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
2013 192,577$ 129,482$ 67.2% 568,694$
2014 179,880$ 124,581$ 69.3% 623,993$
2015 184,537$ 93,155$ 50.5% 715,375$
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
The City participates in the following cost-sharing, multiple-employer defined benefit pension plans
administered by the PERA. The PERA’s defined benefit pension plans are established and administered
in accordance with Minnesota Statutes, Chapters 353 and 356. The PERA’s defined benefit pension plans
are tax qualified plans under Section 401(a) of the Internal Revenue Code.
1. General Employees Retirement Fund (GERF)
All full-time and certain part-time employees of the City are covered by the General Employees
Retirement Fund (GERF). GERF members belong to either the Coordinated Plan or the Basic
Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not.
The Basic Plan was closed to new members in 1967. All new members must participate in the
Coordinated Plan.
2. Public Employees Police and Fire Fund (PEPFF)
The Public Employees Police and Fire Fund (PEPFF), originally established for police officers
and firefighters not covered by a local relief association, now covers all police officers and
firefighters hired since 1980. Effective July 1, 1999, the PEPFF also covers police officers and
firefighters belonging to local relief associations that elected to merge with and transfer assets and
administration to the PERA.
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NOTE 8 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
B. Benefits Provided
The PERA provides retirement, disability, and death benefits. Benefit provisions are established by state
statute and can only be modified by the State Legislature.
Benefit increases are provided to benefit recipients each January. Increases are related to the funding ratio
of the plan. Members in plans that are at least 90 percent funded for two consecutive years are given
2.5 percent increases. Members in plans that have not exceeded 90 percent funded, or have fallen below
80 percent, are given 1 percent increases.
The benefit provisions stated in the following paragraphs of this section are current provisions and apply
to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving
them yet are bound by the provisions in effect at the time they last terminated their public service.
1. GERF Benefits
Benefits are based on a member’s highest average salary for any five successive years of
allowable service, age, and years of credit at termination of service. Two methods are used to
compute benefits for the 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 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 members hired prior to July 1, 1989, a full annuity is
available when age plus years of service equal 90 and normal retirement age is 65. For members
hired on or after July 1, 1989, normal retirement age is the age for unreduced Social Security
benefits capped at 66.
2. PEPFF Benefits
Benefits for PEPFF members first hired after June 30, 2010, but before July 1, 2014, vest on a
prorated basis from 50 percent after five years up to 100 percent after 10 years of credited service.
Benefits for PEPFF members first hired after June 30, 2014 vest on a prorated basis from
50 percent after 10 years up to 100 percent after 20 years of credited service. The annuity accrual
rate is 3 percent of average salary for each year of service. For PEPFF members who were first
hired prior to July 1, 1989, a full annuity is available when age plus years of service equal at least
90.
C. Contributions
Minnesota Statutes, Chapter 353 sets the rates for employer and employee contributions. Contribution
rates can only be modified by the State Legislature.
1. GERF Contributions
Coordinated Plan members were required to contribute 6.50 percent of their annual covered
salary in calendar year 2015. The City was required to contribute 7.50 percent for Coordinated
Plan members in calendar year 2015. The City’s contributions to the GERF for the year ended
December 31, 2015 were $509,632. The City’s contributions were equal to the required
contributions as set by state statute.
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NOTE 8 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
2. PEPFF Contributions
Plan members were required to contribute 10.80 percent of their annual covered salary in
calendar year 2015. The City was required to contribute 16.20 percent of pay for PEPFF members
in calendar year 2015. The City’s regular contributions to the PEPFF for the year ended
December 31, 2015 were $507,642. The City’s contributions were equal to the required
contributions as set by state statute.
D. Pension Costs
1. GERF Pension Costs
At December 31, 2015, the City reported a liability of $5,623,033 for its proportionate share of
the GERF’s net pension liability. The net pension liability was measured as of June 30, 2015, and
the total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date. The City’s proportion of the net pension liability was based on the City’s
contributions received by the PERA during the measurement period for employer payroll paid
dates from July 1, 2014 through June 30, 2015, relative to the total employer contributions
received from all of the PERA’s participating employers. At June 30, 2015, the City’s
proportionate share was 0.1085 percent, which was a decrease of 0.0106 percent from its
proportion measured as of June 30, 2014.
For the year ended December 31, 2015, the City recognized pension expense of $623,162 for its
proportionate share of the GERF’s pension expense.
At December 31, 2015, the City reported its proportionate share of the GERF’s deferred outflows
of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual economic experience –$ 283,496$
Differences between projected and actual investment earnings 532,306 –
Changes in proportion – 373,451
Contributions paid to the PERA subsequent to the
measurement date 267,081 –
Total 799,387$ 656,947$
Deferred outflows of resources reported $267,081 related to pensions resulting from city
contributions subsequent to the measurement date that will be recognized as a reduction of the net
pension liability in the year ending December 31, 2016. Other amounts reported as deferred
outflows and inflows of resources related to pensions will be recognized in pension expense as
follows:
Pension
Year Ending Expense
December 31, Amount
2016 (85,906)$
2017 (85,906)$
2018 (85,906)$
2019 133,077$
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NOTE 8 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
2. PEPFF Pension Costs
At December 31, 2015, the City reported a liability of $3,670,036 for its proportionate share of
the PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2015,
and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of that date. The City’s proportion of the net pension liability was based on
the City’s contributions received by the PERA during the measurement period for employer
payroll paid dates from July 1, 2014 through June 30, 2015, relative to the total employer
contributions received from all of the PERA’s participating employers. At June 30, 2015, the
City’s proportion was 0.323 percent, which was a decrease of 0.004 percent from its proportion
measured as of June 30, 2014.
For the year ended December 31, 2015, the City recognized pension expense of $624,778 for its
proportionate share of the PEPFF’s pension expense. The City also recognized $29,070 for the
year ended December 31, 2015, as revenue for its proportionate share of the state of Minnesota’s
on-behalf contributions to the PEPFF. Legislation passed in 2013 required the state of Minnesota
to begin contributing $9 million to the PEPFF each year, starting in fiscal year 2014.
At December 31, 2015, the City reported its proportionate share of the PEPFF’s deferred outflows
of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual economic experience –$ 595,160$
Differences between projected and actual investment earnings 639,443 –
Changes in proportion – 36,002
Contributions paid to the PERA subsequent to the
measurement date 264,415 –
Total 903,858$ 631,162$
Deferred outflows of resources reported $264,415 related to pensions resulting from city
contributions subsequent to the measurement date that will be recognized as a reduction of the net
pension liability in the year ending December 31, 2016. Other amounts reported as deferred
outflows and inflows of resources related to pensions will be recognized in pension expense as
follows:
Pension
Year Ending Expense
December 31, Amount
2016 33,628$
2017 33,628$
2018 33,628$
2019 33,628$
2020 (126,231)$
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NOTE 8 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
E. Actuarial Assumptions
The total pension liability in the June 30, 2015 actuarial valuation was determined using the following
actuarial assumptions:
Inflation 2.75% per year
Active member payroll growth 3.50% per year
Investment rate of return 7.90%
Salary increases were based on a service-related table. Mortality rates for active members, retirees,
survivors, and disabilitants were based on RP-2000 tables for males or females, as appropriate, with slight
adjustments. Cost of living benefit increases for retirees are assumed to be: 1 percent effective every
January 1st until 2034, then 2.5 percent for the GERF and the PEPFF.
Actuarial assumptions used in the June 30, 2015 valuation were based on the results of actuarial
experience studies. The experience study in the GERF was for the period July 1, 2004 through June 30,
2008, with an update of economic assumptions in 2014. The experience study for the PEPFF was for the
period July 1, 2004 through June 30, 2009.
There were no changes in actuarial assumptions in 2015.
The long-term expected rate of return on pension plan investments is 7.9 percent. The State Board of
Investment, which manages the investments of the PERA, prepares an analysis of the reasonableness of
the long-term expected rate of return on a regular basis using a building-block method in which
best-estimate ranges of expected future rates of return are developed for each major asset class. These
ranges are combined to produce an expected long-term rate of return by weighting the expected future
rates of return by the target asset allocation percentages. The target allocation and best estimates of
arithmetic real rates of return for each major asset class are summarized in the following table:
Asset Class
Target
Allocation
Long-Term Expected
Real Rate of Return
Domestic stocks 45% 5.50%
International stocks 15% 6.00%
Bonds 18% 1.45%
Alternative assets 20% 6.40%
Cash 2% 0.50%
F. Discount Rate
The discount rate used to measure the total pension liability was 7.9 percent. The projection of cash flows
used to determine the discount rate assumed that employee and employer contributions will be made at
the rate specified in the statute. Based on that assumption, each pension plan’s fiduciary net position was
projected to be available to make all projected future benefit payments of current active and inactive
employees. Therefore, the long-term expected rate of return on pension plan investments was applied to
all periods of projected benefit payments to determine the total pension liability.
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NOTE 8 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
G. Pension Liability Sensitivity
The following presents the City’s proportionate share of the net pension liability for all plans it
participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the
City’s proportionate share of the net pension liability would be if it were calculated using a discount rate
1 percentage point lower or 1 percentage point higher than the current discount rate:
1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
(6.9%) (7.9%) (8.9%)
The City’s proportionate share of the
GERF net pension liability 8,841,407$ 5,623,033$ 2,965,151$
The City’s proportionate share of the
PEPFF net pension liability 7,152,938$ 3,670,036$ 792,552$
H. Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in a separately-issued
PERA financial report that includes financial statements and required supplementary information. That
report may be obtained on the PERA website at www.mnpera.org.
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 the PERA. The PEDCP is a tax qualified
plan under Section 401(a) of the Internal Revenue Code, and all contributions by or on behalf of
employees are tax deferred until time of withdrawal.
Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less
administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the
employee and employer contribution rates for those qualified personnel who elect to participate. An
eligible elected official who decides to participate contributes 5 percent of salary which is matched by the
elected official’s employer. For ambulance service personnel, employer contributions are determined by
the employer, and for salaried employee contributions must be a fixed percentage of salary. Employer
contributions for volunteer personnel may be a unit value for each call or period of alert duty. Employees
who are paid for their services may elect to make member contributions in an amount not to exceed the
employer share. Employer and employee contributions are combined and used to purchase shares in one
or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the
plan, the PERA receives 2 percent of employer contributions and twenty-five hundredths of 1 percent
(0.0025) of the assets in each member’s account annually.
Total contributions made by the City for the last three fiscal years were:
Required
Employees Employer Employees Employer Rates
2013 2,377$ 2,377$ 5.00% 5.00% 5.00%
2014 1,636$ 1,636$ 5.00% 5.00% 5.00%
2015 1,500$ 1,500$ 5.00% 5.00% 5.00%
Amount Percentage of Covered Payroll
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NOTE 10 – DEFINED BENEFIT PENSION PLAN – FIRE RELIEF ASSOCIATION
A. Plan Description
Volunteer firefighters of the Golden Valley Fire Department (the Department) are covered by a single
employer defined benefit pension plan established and administered in accordance with Minnesota
Statute, Chapter 69 by the Golden Valley Fire Department Relief Association (the Association). As of
December 31, 2014, the plan covered 53 active firefighters and 5 vested terminated firefighters whose
pension benefits are deferred.
The Association maintains a separate Special Fund to accumulate assets to fund the retirement benefits
earned by the Department’s membership.
B. Benefits Provided
A firefighter who completes at least 20 years as an active member of the Department is entitled, after age
50, to a full service pension upon retirement.
The bylaws of the Association also provide for an early vested service pension for a retiring member who
has completed fewer than 20 years of service. The reduced pension, available to members with 10 years
of service, shall be equal to 60 percent of the pension as described by the bylaws. This percentage
increases 4 percent per year so that at 20 years of service, the full amount prescribed is paid. Members
who retire with less than 20 years of service and have reached the age of 50, and have completed at least
10 years of active membership, are entitled to a reduced service pension not to exceed the amount
calculated by multiplying the member’s service pension for the completed years of service times the
applicable non-forfeitable percentage of pension.
C. Contributions
Minnesota Statutes, Chapters 424 and 424A, authorize pension benefits for volunteer fire relief
associations. The plan is funded by fire state-aid, investment earnings, and, if necessary, employer
contributions as specified in Minnesota Statutes and voluntary city contributions (if applicable). The
firefighters have no obligation to contribute to the plan. Nonemployer pension contributions include aid
from the state of Minnesota, which is received initially by the City and subsequently remitted to the
Association. These on-behalf state-aid payments are recognized as revenues and expenditures in the
City’s Payroll Benefits Internal Service Fund during the period received.
The state of Minnesota contributed $142,440 in fire state-aid to the plan on behalf of the Department for
the year ended December 31, 2014. Required employer contributions are calculated annually based on
statutory provisions. The City’s statutorily-required contributions to the plan for the year ended
December 31, 2015 were $0. The City’s contributions were equal to the required contributions as set by
state statute. The City made no voluntary contributions to the plan.
D. Pension Costs
At December 31, 2015, the City reported a net pension liability (asset) of ($1,905,929) for the plan. The
net pension liability (asset) was measured as of December 31, 2014. The total pension liability used to
calculate the net pension liability (asset) in accordance with GASB Statement No. 68 was determined by
applying an actuarial formula to specific census data certified by the Department as of December 31,
2014.
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NOTE 10 – DEFINED BENEFIT PENSION PLANS – FIRE RELIEF ASSOCIATION
(CONTINUED)
The following table presents the changes in net pension liability (asset) during the year:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability (Asset)
(a) (b) (a-b)
Beginning balance – January 1, 2014 2,709,977$ 4,500,389$ (1,790,412)$
Changes for the year
Service cost 158,309 – 158,309
Interest on pension liability (asset) 189,130 – 189,130
Projected investment earnings – 335,884 (335,884)
Contributions (state and city) – 143,581 (143,581)
Benefit payments, including member contribution refunds (332,858) (332,858) –
Administrative costs – (16,509) 16,509
Total net changes 14,581 130,098 (115,517)
Ending balance – December 31, 2014 2,724,558$ 4,630,487$ (1,905,929)$
For the year ended December 31, 2015, the City recognized pension revenue of $142,440 and pension
expense of $54,511.
At December 31, 2015, the City reported deferred inflows of resources and deferred outflows of resources
related to pension from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Net difference between projected and actual earnings on
plan investments –$ 22,447$
State-aid to the City subsequent to the measurement date 149,972 149,972
Total 149,972$ 172,419$
Deferred outflows of resources totaling $149,972 related to pensions resulting from city contributions to
the plan subsequent to the measurement date will be recognized as a reduction of the net pension liability
in the year ending December 31, 2016. Deferred inflows of resources totaling $149,972 related to
state-aid received subsequent to the measurement date will be recognized for its impact on the net pension
liability in the year ending December 31, 2016. Other amounts reported as deferred outflows and inflows
of resources related to the plan will be recognized in pension expense as follows:
Pension
Year Ending Expense
December 31, Amount
2016 (5,612)$
2017 (5,612)$
2018 (5,612)$
2019 (5,611)$
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NOTE 10 – DEFINED BENEFIT PENSION PLANS – FIRE RELIEF ASSOCIATION
(CONTINUED)
E. Actuarial Assumptions
The total pension liability at December 31, 2014 was determined using the entry age normal actuarial cost
method and the following actuarial assumptions:
Retirement eligibility at 100 percent service pension at age 50 with 20 years of service, early
vested retirement at age 50 with 10 years of service vested at 60 percent and increased by
4 percent for each additional year of service up to 20 and eligibility for deferred service
pension payable at age 50 with 20 years of service
Salary increases 0.00% per year
Inflation rate 2.75%
Investment rate of return 7.00%
20-year municipal bond yield 3.50%
Mortality rates for active members, retirees, survivors, and disabilitants were based on RP-2000 tables for
males or females, as appropriate, with slight adjustments.
There were no changes in actuarial assumptions in 2014.
The 7 percent long-term expected rate of return on pension plan investments was determined using a
building-block method in which best estimates for expected future real rates of return (expected returns,
net of inflation) were developed for each asset class using the plan’s target investment allocation along
with long-term return expectations by asset class. Inflation expectations were applied to derive the
nominal rate of return for the portfolio.
The target allocation and best estimates of arithmetic real rates of return for each major asset class are
summarized in the following table:
Asset Class
Domestic equity 69.10 % 7.75 %
International equity 8.40 7.75
Fixed income 22.20 4.50
cash and equivalents 0.30 3.00
Total 100.00 % 7.00 %
Allocation
Target
Rate of Return
Expected Nominal
Long-Term
F. Discount Rate
The discount rate used to measure the total pension liability was 7.0 percent. The projection of cash flows
used to determine the discount rate assumed that contributions to the plan will be made as specified in the
statute. Based on that assumption and considering the funding ratio of the plan, the fiduciary net position
was projected to be available to make all projected future benefit payments of current active and inactive
members. Therefore, the long-term expected rate of return on pension plan investments was applied to all
periods of projected benefit payments to determine the total pension liability.
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NOTE 10 – DEFINED BENEFIT PENSION PLANS – FIRE RELIEF ASSOCIATION
(CONTINUED)
G. Pension Liability (Asset) Sensitivity
The following presents the City’s net pension liability (asset) for the plan, calculated using the discount
rate disclosed in the preceding paragraph, as well as what the City’s net pension liability (asset) would be
if it were calculated using a discount rate 1 percent lower or 1 percent higher than the current discount
rate:
1 Percent 1 Percent
Decrease (6.00%) Current (7.00%) Increase (8.00%)
Defined benefit plan (1,813,873)$ (1,905,929)$ (1,995,624)$
H. Pension Plan Fiduciary Net Position
The Association issues a publicly available financial report that includes financial statements and required
supplementary information. This report may be obtained at Golden Valley City Hall.
NOTE 11 – FLEXIBLE BENEFIT PLAN
The City offers three types of flexible spending accounts: medical premiums, medical expenses, and
dependent care expenses. Eligible employees can elect to participate by contributing 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 dependent care expense
accounts are administered by the Stanton Group—a benefit consulting firm. Claims are made directly to
the Stanton Group by plan participants. The Stanton Group then reimburses the participants and bills the
City for these reimbursements.
All plan property and income attributable to that property is solely the property of the City subject to the
claims of the City’s general creditors. Participants’ rights under the plan are equal to those of general
creditors of the City in an amount equal to the eligible healthcare and dependent care expenses incurred
by the participants. The City believes it unlikely that it will use the assets to satisfy the claims of general
creditors in the future.
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NOTE 12 – TAX INCREMENT FINANCING DISTRICTS
The City is the administering authority for the following tax increment financing districts:
North Wirth Highway 55 Cornerstone Winnetka/
Redevelopment West Creek Medicine Lake
District No. 1505 District No. 1506 District No. 1507 District No. 1508
Authorizing law M.S. 469 M.S. 469 M.S. 469 M.S. 469
Year established 2004 2013 2015 2015
First tax increment 2005 2015 2018 2018
Duration of district 25 years 25 years 25 years 25 years
Tax capacity – taxes payable 2015
Original 6,650$ 65,390$ –$ –$
Current 37,900 53,516 – –
Captured – retained 31,250$ –$ –$ –$
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, 2016, which are available at Golden Valley City Hall:
Total assets – all current 5,578,150$
Total liabilities – all current 476,634
Net position 5,101,516$
Revenue 1,757,945$
Expenses 1,676,859
Change in net position 81,086$
Of the total revenue, $490,344 represented assessments to member cities. The City’s 2015 portion was
$121,964, or 24.9 percent, of total assessments paid by members.
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NOTE 13 – JOINT POWERS AGREEMENTS (CONTINUED)
B. Joint Water Commission (JWC)
The City is a member of a joint powers agreement, together with the cities of Crystal and New Hope,
which established a JWC. The JWC was created in 1963 to provide for the creation and maintenance of a
joint water supply, storage, and distribution system through which water purchased from the City of
Minneapolis can be supplied to the population of the member cities.
Each member city is entitled to appoint one member to the JWC. Original construction costs were
allocated to the member cities based on percentages agreed upon in the joint powers agreement. All
subsequent operating and maintenance costs are apportioned to and paid by each member city on the basis
of water usage. Under the terms of the joint powers agreement, upon termination the accumulated assets
of the JWC shall be divided amongst the member cities in a manner to be determined and unanimously
approved by the member cities. Because the manner in which the JWC’s assets would be divided upon
termination is not specified, it is not practical for the City to determine its portion of JWC assets.
Therefore, the City’s Utility Enterprise Fund does not record any amount as an equity investment or
contributed capital (for construction costs paid by other funds) related to the JWC.
The following financial information is from the JWC’s audited financial statements for the year ended
December 31, 2015, which are available at Golden Valley City Hall:
Total assets 15,335,319$
Total liabilities 722,509
Net position 14,612,810$
Revenue 11,813,049$
Expenses 6,408,186
Change in net position 5,404,863$
Of the total revenues, $11,667,905 represented assessments paid by member cities. Of the total member
assessments, $4,849,648, or 41.6 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.
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NOTE 14 – CONTINGENCIES AND COMMITMENTS (CONTINUED)
D. 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, 2015 is
$244,859. 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.
E. Construction Commitments
At December 31, 2015, the City is committed to various construction contracts for the improvement of
city property. The City’s remaining commitment under these contracts is approximately $1,225,042.
NOTE 15 – DEFICIT FUND BALANCES/NET POSITION
At December 31, 2015, the Douglas Drive Improvement Capital Project Fund reported a deficit fund
balance of $41,288. The deficit is due to project costs incurred in advance of funding, and will be
eliminated through future revenues and other financing sources.
At December 31, 2015, the Payroll Benefits Internal Service Fund reported a deficit net position of
$7,429,693. The deficit was caused by the implementation of GASB Statement No. 68, and the
recognition of the City’s proportionate share of net pension liabilities related to two state-wide,
multi-employer, cost-sharing defined benefit pension plans administered by the PERA, as described
earlier in these notes. This deficit will be eliminated through the future funding of these liabilities.
NOTE 16 – SUBSEQUENT EVENTS
A. Future Debt Issues
In May 2016, the City approved the authorization to issue three new bonds. The first issue is $1,290,000
of General Obligation Improvement Bonds, Series 2016A. The proceeds of the issue will be used for
street improvements. The second issue is $800,000 of General Obligation Equipment Certificates,
Series 2016B. The proceeds of this issue will be used for equipment purchases. The third issue is
$5,630,000 of General Obligation Street Reconstruction Bonds, Series 2016C. The proceeds of the issue
will be used for street improvements.
B. Debt Retirement
In February 2016, the City used available funds on hand to exercise an early call option retiring the
February 1, 2017 through February 1, 2021 maturities of its General Obligation Storm Sewer Utility
Revenue Bonds, Series 2006C. The total principal called was $775,000.
THIS PAGE INTENTIONALLY LEFT BLANK
REQUIRED SUPPLEMENTARY INFORMATION
(Unfunded) Unfunded
Actuarial Actuarial Actuarial Liability as a
Valuation Date – Accrued Actuarial Value Accrued Covered Percentage of
January 1, Liability of Plan Assets Liability Payroll Payroll
2010 1,641,256$ –$ 1,641,256$ – % 8,247,626$ 19.9%
2012 1,710,953$ –$ 1,710,953$ – % 8,136,559$ 21.0%
2014 1,714,926$ –$ 1,714,926$ – % 8,825,950$ 19.4%
Ratio
Funded
Schedule of Funding Progress
CITY OF GOLDEN VALLEY
Other Post-Employment Benefits Plan
City of Golden Valley
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City’s
Proportionate Plan Fiduciary
Share of the Net Position
City’s City’s Net Pension as a
PERA Fiscal Proportion Proportionate Liability as a Percentage
Year-End Date of the Net Share of the City’s Percentage of of the Total
City Fiscal (Measurement Pension Net Pension Covered Covered Pension
Year-End Date Date) Liability Liability (a) Payroll (b)Payroll (a/b) Liability
12/31/2015 6/30/2015 0.1085% 5,623,033$ 6,374,138$ 88.22% 78.20%
Contributions
in Relation to Contributions
PERA Fiscal Statutorily the Statutorily as a
Year-End Date Required Required Contribution Percentage
City Fiscal (Measurement Contributions Contributions Deficiency Covered of Covered
Year-End Date Date) (a) (b) (Excess) (a-b) Payroll (d)Payroll (b/d)
12/31/2015 6/30/2015 509,632$ 509,632$ –$ 6,795,097$ 7.50%
Note:
Year Ended December 31, 2015
The City implemented GASB Statement No. 68 in fiscal 2015 (using a June 30, 2015 measurement
date). This information is not available for previous fiscal years.
CITY OF GOLDEN VALLEY
Schedule of City’s and Non-Employer Proportionate Share of Net Pension Liability
PERA – Public Employees General Employees Retirement Fund
Year Ended December 31, 2015
Schedule of Employer Contributions
PERA – Public Employees General Employees Retirement Fund
-68-
City’s
Proportionate Plan Fiduciary
Share of the Net Position
City’s City’s Net Pension as a
PERA Fiscal Proportion Proportionate Liability as a Percentage
Year-End Date of the Net Share of the City’s Percentage of of the Total
City Fiscal (Measurement Pension Net Pension Covered Covered Pension
Year-End Date Date) Liability Liability (a) Payroll (b)Payroll (a/b) Liability
12/31/2015 6/30/2015 0.3230% 3,670,036$ 2,955,388$ 124.18% 86.60%
Contributions
in Relation to Contributions
PERA Fiscal Statutorily the Statutorily as a
Year-End Date Required Required Contribution Percentage
City Fiscal (Measurement Contributions Contributions Deficiency Covered of Covered
Year-End Date Date) (a) (b) (Excess) (a-b) Payroll (d)Payroll (b/d)
12/31/2015 6/30/2015 507,642$ 507,642$ –$ 3,133,590$ 16.20%
Note:
Year Ended December 31, 2015
The City implemented GASB Statement No. 68 in fiscal 2015 (using a June 30, 2015 measurement date).
This information is not available for previous fiscal years.
CITY OF GOLDEN VALLEY
Schedule of City’s and Non-Employer Proportionate Share of Net Pension Liability
PERA – Public Employees Police and Fire Fund
Year Ended December 31, 2015
Schedule of Employer Contributions
PERA – Public Employees Police and Fire Fund
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City fiscal year-end date December 31, 2015
Golden Valley Fire Department Relief Association year-end date (measurement date) December 31, 2014
Total pension liability
Service cost 158,309$
Interest 189,130
Benefit payments (332,858)
Net change in total pension liability 14,581
Total pension liability – beginning 2,709,977
Total pension liability – ending 2,724,558$
Plan fiduciary net position
Contributions (state and local)143,581$
Net investment income 335,884
Benefit payments (332,858)
Administrative costs (16,509)
Net change in plan fiduciary net position 130,098
Total pension liability – beginning 4,500,389$
Total pension liability – ending 4,630,487$
Net pension liability (asset) – ending (1,905,929)$
Plan fiduciary net position as a percentage
of the total pension liability 169.95%
Non-Employer
City Fiscal Statutorily Contribution
Year-End Required Actual Contribution State 2%
Date Contributions (a) Contributions (b) Excess (a-b) Fire Aid
12/31/2014 1,141$ 1,141$ –$ 142,440$
12/31/2015 –$ –$ –$ 149,972$
Note:
Schedule of City Contributions and Non-Employer Contributing Entities
The City implemented GASB Statement No. 68 in fiscal 2015 (using a December 31, 2014
measurement date). This information is not available for previous years.
CITY OF GOLDEN VALLEY
Golden Valley Fire Department Relief Association
Schedule of Changes in Net Pension Assets and Related Ratios
Golden Valley Fire Department Relief Association
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SUPPLEMENTAL INFORMATION
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NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Human Service – 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.
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.
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.
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, Highway 55 West No. 1506, and Winnetka/Medicine Lake No. 1508.
Brookview Community Center Building Fund – used to account for improvements to the City’s
Brookview Community Center.
Special Revenue Debt Service Capital Project Totals
Assets
Cash and temporary investments 660,306$ 1,921,247$ 11,916,547$ 14,498,100$
Receivables
Special assessments – – 186,854 186,854
Accounts 3,232 – 10,461 13,693
Due from other governmental units – – 135,556 135,556
Prepaid items 285 – – 285
Total assets 663,823$ 1,921,247$ 12,249,418$ 14,834,488$
Liabilities
Accounts payable 11,400$ –$ 55,869$ 67,269$
Contracts payable – – 88,667 88,667
Due to other governmental units – – 71 71
Deposits – – 43,411 43,411
Due to other funds 29,676 – 38,307 67,983
Total liabilities 41,076 – 226,325 267,401
Deferred inflows of resources
Unavailable revenue – special assessments – – 186,854 186,854
Unavailable revenue – other – – 6,500 6,500
Total deferred inflows of resources – – 193,354 193,354
Fund balances
Nonspendable 285 – – 285
Restricted 420,192 1,921,247 4,761,324 7,102,763
Committed 202,270 – – 202,270
Assigned – – 7,068,415 7,068,415
Total fund balances 622,747 1,921,247 11,829,739 14,373,733
Total liabilities, deferred inflows of
resources, and fund balances 663,823$ 1,921,247$ 12,249,418$ 14,834,488$
CITY OF GOLDEN VALLEY
Nonmajor Governmental Funds
Combining Balance Sheet
December 31, 2015
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Special Revenue Debt Service Capital Project Totals
Revenue
Ad valorem taxes –$ 1,095,861$ –$ 1,095,861$
Tax increments – – 23,439 23,439
Special assessments – – 64,266 64,266
Intergovernmental revenue 31,432 – 2,537,378 2,568,810
Investment income 1,863 4,031 56,805 62,699
Other revenue
Contributions 107 – – 107
Lawful gambling proceeds 36,801 – – 36,801
Miscellaneous 113,484 153,294 318,388 585,166
Total revenue 183,687 1,253,186 3,000,276 4,437,149
Expenditures
Current
General government 74,869 – – 74,869
Public safety 55,334 – – 55,334
Capital outlay – – 6,793,086 6,793,086
Debt service
Principal – 1,055,000 115,000 1,170,000
Interest and fiscal charges – 49,269 109,097 158,366
Total expenditures 130,203 1,104,269 7,017,183 8,251,655
Excess (deficiency) of revenue
over expenditures 53,484 148,917 (4,016,907) (3,814,506)
Other financing sources (uses)
Sale of capital assets – – 53,442 53,442
Bonds issued – 20,020 2,628,204 2,648,224
Premium on bonds issued – – 104,008 104,008
Transfers in 200,000 344,000 2,676,060 3,220,060
Transfers (out) – – (1,340,927) (1,340,927)
Total other financing sources (uses) 200,000 364,020 4,120,787 4,684,807
Net change in fund balances 253,484 512,937 103,880 870,301
Fund balances
Beginning of year 369,263 1,408,310 11,725,859 13,503,432
End of year 622,747$ 1,921,247$ 11,829,739$ 14,373,733$
CITY OF GOLDEN VALLEY
Nonmajor Governmental Funds
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances
Year Ended December 31, 2015
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Human DWI HRA
Service Cemetery Enforcement General Totals
Assets
Cash and temporary investments 200,338$ 77,454$ 138,417$ 244,097$ 660,306$
Receivables
Accounts 2,932 – – 300 3,232
Prepaids – – 285 – 285
Total assets 203,270$ 77,454$ 138,702$ 244,397$ 663,823$
Liabilities
Accounts payable 1,000$ –$ 10,400$ –$ 11,400$
Due to other funds – – – 29,676 29,676
Total liabilities 1,000 – 10,400 29,676 41,076
Fund balances
Nonspendable – – 285 – 285
Restricted for cemetery maintenance – 77,454 – – 77,454
Restricted for DWI enforcement – – 128,017 – 128,017
Restricted for redevelopment – – – 214,721 214,721
Committed for human service needs 202,270 – – – 202,270
Total fund balances 202,270 77,454 128,302 214,721 622,747
Total liabilities and fund balances 203,270$ 77,454$ 138,702$ 244,397$ 663,823$
CITY OF GOLDEN VALLEY
Nonmajor Special Revenue Funds
Combining Balance Sheet
December 31, 2015
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Human DWI
Service Cemetery Enforcement HRA General Totals
Revenue
Intergovernmental revenue –$ –$ 31,432$ –$ 31,432$
Investment income 960 384 504 15 1,863
Other revenue
Contributions 107 – – – 107
Lawful gambling proceeds 36,801 – – – 36,801
Miscellaneous 51,016 1,600 60,868 – 113,484
Total revenue 88,884 1,984 92,804 15 183,687
Expenditures
Current
General government
Operating supplies 11,247 – – – 11,247
Professional services 44,000 – – 19,622 63,622
Public safety
Salaries – – 3,831 – 3,831
Operating supplies – – 51,503 – 51,503
Total expenditures 55,247 – 55,334 19,622 130,203
Excess (deficiency) of
revenue over expenditures 33,637 1,984 37,470 (19,607) 53,484
Other financing sources
Transfers in – – – 200,000 200,000
Net change in fund balances 33,637 1,984 37,470 180,393 253,484
Fund balances
Beginning of year 168,633 75,470 90,832 34,328 369,263
End of year 202,270$ 77,454$ 128,302$ 214,721$ 622,747$
CITY OF GOLDEN VALLEY
Nonmajor Special Revenue Funds
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances
Year Ended December 31, 2015
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Certificates Tax
of Abatement
Indebtedness Bonds Totals
Assets
Cash and temporary investments 582,859$ 1,338,388$ 1,921,247$
Fund balances
Restricted for debt service 582,859$ 1,338,388$ 1,921,247$
CITY OF GOLDEN VALLEY
Nonmajor Debt Service Funds
Combining Balance Sheet
December 31, 2015
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Certificates Tax
of Abatement
Indebtedness Bonds Totals
Revenue
Ad valorem taxes 795,861$ 300,000$ 1,095,861$
Investment income – 4,031 4,031
Other revenue
Miscellaneous – 153,294 153,294
Total revenue 795,861 457,325 1,253,186
Expenditures
Debt service
Principal 710,000 345,000 1,055,000
Interest 17,244 19,156 36,400
Fiscal charges 12,639 230 12,869
Total expenditures 739,883 364,386 1,104,269
Excess of revenue over expenditures 55,978 92,939 148,917
Other financing sources
Bonds issued 20,020 – 20,020
Transfers in 94,000 250,000 344,000
Total other financing sources 114,020 250,000 364,020
Net change in fund balances 169,998 342,939 512,937
Fund balances
Beginning of year 412,861 995,449 1,408,310
End of year 582,859$ 1,338,388$ 1,921,247$
CITY OF GOLDEN VALLEY
Nonmajor Debt Service Funds
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances
Year Ended December 31, 2015
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Street
Reconstruction Cable Park Capital Equipment
Building Capital Project Improvement Improvement Replacement
Assets
Cash and temporary investments 1,047,331$ 2,775,985$ 168,534$ 850,890$ 3,461,535$
Receivables
Special assessments – 148,109 – – –
Accounts – – – 6,500 –
Due from other governmental units – – – – –
Total assets 1,047,331$ 2,924,094$ 168,534$ 857,390$ 3,461,535$
Liabilities
Accounts payable 354$ 22,660$ –$ 23,147$ –$
Contracts payable – 37,648 – 4,771 –
Due to other governmental units – – – – –
Deposits – 30,125 – 3,250 –
Due to other funds – – – – –
Total liabilities 354 90,433 – 31,168 –
Deferred inflows of resources
Unavailable revenue – special assessments – 148,109 – – –
Unavailable revenue – other – – – 6,500 –
Total deferred inflows of resources – 148,109 – 6,500 –
Fund balances
Restricted for state-aid street improvements – – – – –
Restricted for park improvements – – – 170,202 –
Restricted for redevelopment – – – – –
Restricted for street improvements – 2,166,018 – – –
Restricted for equipment replacement – – – – 28,991
Assigned for cable improvements – – 168,534 – –
Assigned for park improvements – – – 649,520 –
Assigned for equipment replacement – – – – 3,432,544
Assigned for Brookview Community Center – – – – –
Assigned for street improvements – 519,534 – – –
Assigned for capital improvements 1,046,977 – – – –
Total fund balances 1,046,977 2,685,552 168,534 819,722 3,461,535
Total liabilities, deferred inflows of
resources, and fund balances 1,047,331$ 2,924,094$ 168,534$ 857,390$ 3,461,535$
CITY OF GOLDEN VALLEY
Nonmajor Capital Project Funds
Combining Balance Sheet
December 31, 2015
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Brookview
North Wirth Community Winnetka/
State-Aid HRA Capital Golden Hills No. 3 Hwy 55 West Center Medicine Lake
Construction Project Tax Increment Tax Increment Tax Increment Building Tax Increment Totals
2,453,552$ 103,856$ –$ 19,164$ 28,965$ 1,000,000$ 6,735$ 11,916,547$
38,745 – – – – – – 186,854
– – – – 3,961 – – 10,461
133,005 – – 2,551 – – – 135,556
2,625,302$ 103,856$ –$ 21,715$ 32,926$ 1,000,000$ 6,735$ 12,249,418$
3,562$ –$ –$ –$ –$ 6,146 –$ 55,869$
46,248 – – – – – – 88,667
71 – – – – – – 71
– – – 8,687 – – 1,349 43,411
– – – – 32,921 – 5,386 38,307
49,881 – – 8,687 32,921 6,146 6,735 226,325
38,745 – – – – – – 186,854
– – – – – – – 6,500
38,745 – – – – – – 193,354
2,279,224 – – – – – – 2,279,224
– – – – – – – 170,202
– 103,856 – 13,028 5 – – 116,889
– – – – – – – 2,166,018
– – – – – – – 28,991
– – – – – – – 168,534
– – – – – – – 649,520
– – – – – – – 3,432,544
– – – – – 993,854 – 993,854
257,452 – – – – – – 776,986
– – – – – – – 1,046,977
2,536,676 103,856 – 13,028 5 993,854 – 11,829,739
2,625,302$ 103,856$ –$ 21,715$ 32,926$ 1,000,000$ 6,735$ 12,249,418$
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Street
Reconstruction Cable Park Capital Equipment
Building Capital Project Improvement Improvement Replacement
Revenue
Tax increments –$ –$ –$ –$ –$
Special assessments – 48,446 – – –
Intergovernmental revenue – – – 325,000 –
Investment income 11,478 12,987 759 2,796 14,746
Other revenue
Miscellaneous 4,125 900 34,078 272,003 7,282
Total revenue 15,603 62,333 34,837 599,799 22,028
Expenditures
Capital outlay
Street – 2,340,110 – – –
City buildings and grounds 532,390 – – 515,355 –
Equipment – – – – 1,332,552
HRA projects – – – – –
Total capital outlay 532,390 2,340,110 – 515,355 1,332,552
Debt service
Principal retirement – – – – –
Interest and fiscal charges – 22,225 – – 12,491
Total debt service – 22,225 – – 12,491
Total expenditures 532,390 2,362,335 – 515,355 1,345,043
Excess (deficiency) of revenue
over expenditures (516,787) (2,300,002) 34,837 84,444 (1,323,015)
Other financing sources (uses)
Sale of capital assets – – – – 53,442
Bonds issued – 1,848,224 – – 779,980
Premium on bonds issued – 84,954 – – 19,054
Transfers in 225,000 100,000 – 297,060 1,054,000
Transfers (out) (1,000,000) – – – (54,000)
Total other financing sources (uses) (775,000) 2,033,178 – 297,060 1,852,476
Net change in fund balances (1,291,787) (266,824) 34,837 381,504 529,461
Fund balances
Beginning of year 2,338,764 2,952,376 133,697 438,218 2,932,074
End of year 1,046,977$ 2,685,552$ 168,534$ 819,722$ 3,461,535$
CITY OF GOLDEN VALLEY
Nonmajor Capital Project Funds
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances
Year Ended December 31, 2015
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Brookview
North Wirth Community Winnetka/
State-Aid HRA Capital Golden Hills No. 3 Hwy 55 West Center Medicine Lake
Construction Project Tax Increment Tax Increment Tax Increment Building Tax Increment Totals
–$ –$ –$ 23,439$ –$ –$ –$ 23,439$
15,820 – – – – – – 64,266
2,212,378 – – – – – – 2,537,378
14,021 16 – 2 – – – 56,805
– – – – – – – 318,388
2,242,219 16 – 23,441 – – – 3,000,276
2,043,656 – – – – – – 4,383,766
– – – – – – – 1,047,745
– – – – – 6,146 – 1,338,698
– – – 22,877 – – – 22,877
2,043,656 – – 22,877 – 6,146 – 6,793,086
115,000 – – – – – – 115,000
74,381 – – – – – – 109,097
189,381 – – – – – – 224,097
2,233,037 – – 22,877 – 6,146 – 7,017,183
9,182 16 – 564 – (6,146) – (4,016,907)
– – – – – – – 53,442
– – – – – – – 2,628,204
– – – – – – – 104,008
– – – – – 1,000,000 – 2,676,060
– – (286,927) – – – – (1,340,927)
– – (286,927) – – 1,000,000 – 4,120,787
9,182 16 (286,927) 564 – 993,854 – 103,880
2,527,494 103,840 286,927 12,464 5 – – 11,725,859
2,536,676$ 103,856$ –$ 13,028$ 5$ 993,854$ –$ 11,829,739$
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2014
Final Over (Under)
Budget Actual Budget Actual
Revenue
Taxes
Ad valorem 13,266,155$ 13,360,590$ 94,435$ 12,400,560$
Penalties and interest – 41,247 41,247 30,826
Total taxes 13,266,155 13,401,837 135,682 12,431,386
Special assessments 10,000 16,198 6,198 13,768
Licenses and permits
Licenses 221,565 242,381 20,816 268,671
Permits 800,000 1,383,732 583,732 1,210,633
Total licenses and permits 1,021,565 1,626,113 604,548 1,479,304
Intergovernmental revenue
Federal grants – 16,672 16,672 63,345
State grants 261,600 270,167 8,567 221,153
County 31,205 31,205 – 31,758
Total intergovernmental revenue 292,805 318,044 25,239 316,256
Charges for services
General government 19,065 34,136 15,071 49,787
Police 136,120 120,600 (15,520) 121,445
Fire 40,000 45,420 5,420 44,587
Physical development 141,000 191,702 50,702 168,169
Parks and recreation 396,300 378,597 (17,703) 382,522
Other funds 841,500 781,043 (60,457) 903,459
Total charges for services 1,573,985 1,551,498 (22,487) 1,669,969
Fines and forfeitures 320,425 354,066 33,641 310,318
Investment income 100,000 45,637 (54,363) 67,758
Other revenue
Rents 211,200 229,069 17,869 226,995
Miscellaneous 6,000 20,452 14,452 11,214
Total other revenue 217,200 249,521 32,321 238,209
Total revenue 16,802,135$ 17,562,914$ 760,779$ 16,526,968$
2015
CITY OF GOLDEN VALLEY
General Fund
Schedule of Revenue – Budget and Actual
Year Ended December 31, 2015
(With Comparative Actual Amounts for the Year Ended December 31, 2014)
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Final Personal Supplies and
Budget Services Services Capital Outlay
Expenditures
General government
City Council 330,450$ 167,736$ 167,187$ –$
City manager 774,940 628,679 66,268 –
Legal service 139,050 156,441 – –
Total general government 1,244,440 952,856 233,455 –
Administrative services 1,726,920 859,786 852,397 –
Casualty insurance 300,000 – 169,213 –
Public safety
Police 5,514,860 4,239,020 650,223 26,024
Fire 1,255,045 934,397 211,999 –
Total public safety 6,769,905 5,173,417 862,222 26,024
Physical development
Administration 285,180 245,810 13,613 –
Building operations 560,590 18,272 507,773 20,858
Engineering 759,890 367,998 330,287 –
Street maintenance 1,473,370 743,162 531,152 –
Park maintenance 1,095,740 767,598 309,493 –
Inspections 704,575 564,466 90,306 –
Planning 303,780 266,270 13,588 –
Total physical development 5,183,125 2,973,576 1,796,212 20,858
Parks and recreation
Administration 698,640 579,290 103,595 –
Community center 75,615 55,029 17,876 –
Recreation programs 374,490 142,934 193,474 –
Total parks and recreation 1,148,745 777,253 314,945 –
Total expenditures 16,373,135$ 10,736,888$ 4,228,444$ 46,882$
2015
Actual
CITY OF GOLDEN VALLEY
General Fund
Schedule of Expenditures – Budget and Actual
Year Ended December 31, 2015
(With Comparative Actual Amounts for the Year Ended December 31, 2014)
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2014
Over (Under)
Total Budget Actual
334,923$ 4,473$ 265,268$
694,947 (79,993) 694,284
156,441 17,391 134,296
1,186,311 (58,129) 1,093,848
1,712,183 (14,737) 1,682,784
169,213 (130,787) 240,918
4,915,267 (599,593) 5,074,607
1,146,396 (108,649) 1,034,707
6,061,663 (708,242) 6,109,314
259,423 (25,757) 356,927
546,903 (13,687) 613,628
698,285 (61,605) 559,174
1,274,314 (199,056) 1,501,650
1,077,091 (18,649) 1,039,527
654,772 (49,803) 677,758
279,858 (23,922) 302,542
4,790,646 (392,479) 5,051,206
682,885 (15,755) 658,065
72,905 (2,710) 67,096
336,408 (38,082) 303,648
1,092,198 (56,547) 1,028,809
15,012,214$ (1,360,921)$ 15,206,879$
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INTERNAL SERVICE FUNDS
Workers’ Compensation Fund – used to account for the financing of all of the City’s workers’
compensation benefits.
Payroll Benefits Fund – used to account for the financing of all of the City’s employee benefits, such as
compensated absences, pension contributions, other-post-employment benefits, and termination pay.
Vehicle Maintenance Fund – used to account for the maintenance of motor vehicles of all departments
and related costs.
Workers’ Payroll Vehicle
Compensation Benefits Maintenance Totals
Assets
Current assets
Cash and temporary investments 251,133$ 1,666,570$ 63,617$ 1,981,320$
Receivables
Accounts – 5,483 – 5,483
Inventory – – 117,359 117,359
Prepaid items – 122,801 – 122,801
Total current assets 251,133 1,794,854 180,976 2,226,963
Noncurrent assets
Net pension asset – fire relief – 1,905,929 – 1,905,929
Capital assets
Machinery and equipment – – 134,844 134,844
Less accumulated depreciation – – (82,118) (82,118)
Total noncurrent assets – 1,905,929 52,726 1,958,655
Total assets 251,133 3,700,783 233,702 4,185,618
Deferred outflows of resources
Pension plan deferments – PERA – 1,703,245 – 1,703,245
Pension plan deferments – fire relief – 149,972 – 149,972
Total deferred outflows of resources – 1,853,217 – 1,853,217
Total assets and deferred outflows
of resources 251,133$ 5,554,000$ 233,702$ 6,038,835$
Liabilities
Current liabilities
Accounts payable –$ 522$ 12,449$ 12,971$
Accrued compensated absences – current – 1,021,130 – 1,021,130
Deposits – 5,289 – 5,289
Total current liabilities – 1,026,941 12,449 1,039,390
Noncurrent liabilities
Accrued compensated absences – 487,780 – 487,780
Net pension liability – PERA – 9,293,069 – 9,293,069
Net OPEB obligation – 715,375 – 715,375
Total noncurrent liabilities – 10,496,224 – 10,496,224
Total liabilities – 11,523,165 12,449 11,535,614
Deferred inflows of resources
Pension plan deferments – PERA – 1,288,109 – 1,288,109
Pension plan deferments – fire relief – 172,419 – 172,419
Total deferred inflows of resources – 1,460,528 – 1,460,528
Net position
Net investment in capital assets – – 52,726 52,726
Restricted for fire relief pensions – 1,883,482 – 1,883,482
Unrestricted 251,133 (9,313,175) 168,527 (8,893,515)
Total net position 251,133 (7,429,693) 221,253 (6,957,307)
Total liabilities, deferred inflows
of resources, and net position 251,133$ 5,554,000$ 233,702$ 6,038,835$
CITY OF GOLDEN VALLEY
Internal Service Funds
Combining Statement of Net Position
December 31, 2015
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Workers’ Payroll Vehicle
Compensation Benefits Maintenance Totals
Operating revenue
Charges to other funds 300,266$ 5,162,810$ 328,240$ 5,791,316$
Payroll benefits charged to employees – 1,354,430 – 1,354,430
Total operating revenue 300,266 6,517,240 328,240 7,145,746
Operating expenses
Workers’ compensation charges 228,057 – – 228,057
Payroll benefits charges – 7,322,351 – 7,322,351
Vehicle maintenance operations – – 316,344 316,344
Depreciation – – 12,506 12,506
Total operating expenses 228,057 7,322,351 328,850 7,879,258
Operating income (loss) 72,209 (805,111) (610) (733,512)
Nonoperating revenue
Intergovernmental revenue – 430,860 – 430,860
Interest income 708 10,051 612 11,371
Total nonoperating revenue 708 440,911 612 442,231
Change in net position 72,917 (364,200) 2 (291,281)
Net position
Beginning of year, as previously reported 178,216 (180,709) 221,251 218,758
Change in accounting principle – (6,884,784) – (6,884,784)
Beginning of year, restated 178,216 (7,065,493) 221,251 (6,666,026)
End of year 251,133$ (7,429,693)$ 221,253$ (6,957,307)$
CITY OF GOLDEN VALLEY
Internal Service Funds
Combining Statement of Revenue, Expenses, and Changes in Net Position
Year Ended December 31, 2015
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Workers’ Payroll Vehicle
Compensation Benefits Maintenance Totals
Cash flows from operating activities
Receipts from customers and users –$ 5,165,256$ –$ 5,165,256$
Receipts from interfund services provided 300,266 1,354,430 328,240 1,982,936
Paid to suppliers/service providers (228,057) (5,308,289) (56,122) (5,592,468)
Paid to employees – (1,934,509) (246,474) (2,180,983)
Net cash flows from operating activities 72,209 (723,112) 25,644 (625,259)
Cash flows from capital and related financing activities
Acquisition of capital assets – – (16,585) (16,585)
Cash flows from investing activities
Interest received on investments 708 10,051 612 11,371
Cash flows from noncapital financing activities
Intergovernmental revenue – 430,860 – 430,860
Net increase (decrease) in cash and
temporary investments/cash equivalents 72,917 (282,201) 9,671 (199,613)
Cash and temporary investments/cash equivalents
Beginning of year 178,216 1,948,771 53,946 2,180,933
End of year 251,133$ 1,666,570$ 63,617$ 1,981,320$
Reconciliation of operating income (loss) to net
cash flows from operating activities
Operating income (loss) 72,209$ (805,111)$ (610)$ (733,512)$
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities
Depreciation – – 12,506 12,506
Changes in assets, liabilities, and deferred outflows/inflows
Accounts receivable – 2,446 – 2,446
Inventory – – 20,790 20,790
Prepaid items – (122,801) – (122,801)
Net pension asset – fire relief – (115,517) – (115,517)
Deferred outflows – pension plan deferments – (1,255,518) – (1,255,518)
Accounts payable – 1,679 (7,042) (5,363)
Deposits – (1,248) – (1,248)
Accrued compensated absences – 874 – 874
Net pension liability – PERA – 166,614 – 166,614
Net OPEB obligation – 91,382 – 91,382
Deferred inflows – pension plan deferments – 1,314,088 – 1,314,088
Net cash provided (used) by operating activities 72,209$ (723,112)$ 25,644$ (625,259)$
CITY OF GOLDEN VALLEY
Internal Service Funds
Combining Statement of Cash Flows
Year Ended December 31, 2015
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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 73,917,257 – 18,597,743
Interest earnings 886,370 1,461,370 8,369,300 – (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 79,429,090 160,131,370 163,495,342 – (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 4,831,094 714,797 8,079,807 (3,963,510)
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 35,580,000 4,935,000 15,650,000
Interest and fiscal costs 24,249,600 37,712,299 26,220,286 117,628 11,374,385
Total uses of funds 79,429,090 160,131,370 137,501,399 13,132,435 9,497,536
District balance (deficit) – – 25,993,943 (13,132,435) (12,861,508)
Transfers (to) from other funds – – (12,861,508) – 12,861,508
Funds remaining (deficit)–$ –$ 13,132,435$ (13,132,435)$ –$
Note 1:
Note 2:
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$
Note 3:Property purchased, but not sold as of December 31, 2015:
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, 2015
This District was decertified in 2015.
-89-
Accounted for Current Amount
Budget in Prior Years Year Remaining
Sources of funds
Tax increments received 920,000$ 236,337$ 23,439$ 660,224$
Real estate sales 575,000 523,431 – 51,569
Interest earnings – 3,908 2 (3,910)
Total sources of funds 1,495,000 763,676 23,441 707,883
Uses of funds
Land and building acquisition – 109,547 22,877 (132,424)
Site preparation and improvements 1,000,000 621,135 – 378,865
Administrative costs – 16,058 – (16,058)
Interest and fiscal costs 495,000 4,472 – 490,528
Total uses of funds 1,495,000 751,212 22,877 720,911
Funds remaining (deficit) –$ 12,464$ 564$ (13,028)$
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 $567,685 original purchase price that was paid by the
North Wirth Parkway No. 1501 Tax Increment Financing District prior to the establishment of this district.
CITY OF GOLDEN VALLEY
Schedule of Sources and Uses of Public Funds
for North Wirth Parkway No. 1505, a Tax Increment Financing District
Year Ended December 31, 2015
Real estate sales
-90-
Accounted for Current Amount
Budget in Prior Years Year Remaining
Sources of funds
Tax increments received 8,814,808$ –$ –$ 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, 2015
-91-
Accounted for Current Amount
Budget in Prior Years Year Remaining
Sources of funds
Tax increments received 1,535,716$ –$ –$ 1,535,716$
Interest earnings – – – –
Total sources of funds 1,535,716 – – 1,535,716
Uses of funds
Site acquisition and improvements 687,975 – – 687,975
Administrative costs 171,571 – – 171,571
Interest and fiscal costs 676,170 – – 676,170
Total uses of funds 1,535,716 – – 1,535,716
Funds remaining (deficit) –$ –$ –$ –$
CITY OF GOLDEN VALLEY
Schedule of Sources and Uses of Public Funds
for Cornerstone Creek No. 1507, a Tax Increment Financing District
Year Ended December 31, 2015
-92-
Accounted for Current Amount
Budget in Prior Years Year Remaining
Sources of funds
Tax increments received 19,052,584$ –$ –$ 19,052,584$
Interest earnings – – – –
Total sources of funds 19,052,584 – – 19,052,584
Uses of funds
Site improvements – utilities 7,913,693 – – 7,913,693
Administrative costs 1,945,145 – – 1,945,145
Interest and fiscal costs 9,193,746 – – 9,193,746
Total uses of funds 19,052,584 – – 19,052,584
Funds remaining (deficit) –$ –$ –$ –$
CITY OF GOLDEN VALLEY
Schedule of Sources and Uses of Public Funds
for Winnetka/Medicine Lake (Liberty Crossing) No. 1508, a Tax Increment Financing District
Year Ended December 31, 2015
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STATISTICAL SECTION
(UNAUDITED)
Page
Contents:
Financial Trends 95
Revenue Capacity 107
Debt Capacity 112
Demographic and Economic Information 120
Operating Indicators 122
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.
-94-
2006 2007 2008 2009
Governmental activities
Net investment in capital assets 12,290,076$ 21,062,593$ 23,613,301$ 24,388,008$
Restricted 26,809,309 28,599,235 30,192,456 28,061,624
Unrestricted (13,451,588) (11,098,272) (7,377,599) (3,510,363)
Total governmental activities net position 25,647,797$ 38,563,556$ 46,428,158$ 48,939,269$
Business-type activities
Net investment in capital assets 19,505,942$ 20,786,526$ 22,427,619$ 23,564,184$
Unrestricted 11,907,990 13,787,483 15,962,676 16,572,658
Total business-type activities net position 31,413,932$ 34,574,009$ 38,390,295$ 40,136,842$
Primary government
Net investment in capital assets 31,796,018$ 41,849,119$ 46,040,920$ 47,952,192$
Restricted 26,809,309 28,599,235 30,192,456 28,061,624
Unrestricted (1,543,598) 2,689,211 8,585,077 13,062,295
Total primary government net position 57,061,729$ 73,137,565$ 84,818,453$ 89,076,111$
Note 1:
Note 2:
Net Position by Component
CITY OF GOLDEN VALLEY
Fiscal Year
The City implemented GASB Statement No. 68 in 2015, resulting in a restatement of beginning net position for the
effects of implementing this standard. Net position for previous years has not been restated.
(Accrual Basis of Accounting)
Last Ten Fiscal Years
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.
-95-
2010 2011 2012 2013 2014 2015
21,635,548$ 22,753,481$ 22,622,764$ 21,829,745$ 21,499,939$ 24,816,606$
22,187,677 23,045,045 26,673,032 29,535,846 29,553,484 17,942,353
5,812,640 5,903,464 7,499,559 9,306,292 14,349,901 15,401,264
49,635,865$ 51,701,990$ 56,795,355$ 60,671,883$ 65,403,324$ 58,160,223$
24,838,885$ 27,268,683$ 27,416,740$ 28,427,621$ 29,588,257$ 30,101,294$
17,231,676 16,430,056 17,508,592 18,562,323 16,164,578 14,010,619
42,070,561$ 43,698,739$ 44,925,332$ 46,989,944$ 45,752,835$ 44,111,913$
46,474,433$ 50,022,164$ 50,039,504$ 50,257,366$ 51,088,196$ 54,917,900$
22,187,677 23,045,045 26,673,032 29,535,846 29,553,484 17,942,353
23,044,316 22,333,520 25,008,151 27,868,615 30,514,479 29,411,883
91,706,426$ 95,400,729$ 101,720,687$ 107,661,827$ 111,156,159$ 102,272,136$
-96-
2006 2007 2008 2009
Expenses
Governmental activities
General government 3,455,764$ 3,325,458$ 3,265,940$ 3,271,352$
Public safety 5,680,284 5,763,034 6,091,866 6,298,431
Physical development 5,501,829 6,330,917 8,282,504 8,322,099
Parks and recreation 1,299,840 1,292,912 1,331,180 1,476,771
Interest and fiscal charges 2,970,622 3,560,215 3,329,662 3,544,117
Total governmental activities expenses 18,908,339 20,272,536 22,301,152 22,912,770
Business-type activities
Water and sewer 5,869,045 6,310,133 6,038,783 6,952,047
Storm sewer 1,009,009 1,114,087 1,313,173 1,299,813
Golf course 1,809,843 1,797,055 1,819,557 1,770,491
Motor vehicle licensing 374,089 387,613 420,911 409,032
Recycling 155,739 172,324 139,970 349,100
Total business-type activities expenses 9,217,725 9,781,212 9,732,394 10,780,483
Total primary government expenses 28,126,064$ 30,053,748$ 32,033,546$ 33,693,253$
Program revenues
Governmental activities
Charges for services
General government 196,661$ 217,961$ 255,249$ 264,357$
Public safety 1,733,014 1,728,325 1,827,820 1,194,484
Physical development 543,520 394,146 335,906 352,630
Parks and recreation 292,305 314,502 348,536 340,072
Operating grants and contributions 292,213 306,055 285,576 294,902
Capital grants and contributions 2,576,547 3,093,771 3,288,594 1,097,097
Total governmental activities program
revenues 5,634,260 6,054,760 6,341,681 3,543,542
Business-type activities
Charges for services
Water and sewer 6,558,605 7,268,146 7,428,721 7,638,314
Storm sewer 2,116,794 2,233,211 2,245,005 2,265,937
Golf course 1,703,750 1,742,650 1,766,714 1,719,611
Motor vehicle licensing 609,522 624,381 598,635 534,559
Recycling 220,730 221,449 221,261 220,829
Operating grants and contributions 51,424 123,701 76,039 139,432
Capital grants and contributions – 427,353 846,164 56,081
Total business-type activities program
revenues 11,260,825 12,640,891 13,182,539 12,574,763
Total primary government program revenues 16,895,085$ 18,695,651$ 19,524,220$ 16,118,305$
Fiscal Year
CITY OF GOLDEN VALLEY
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
-97-
2010 2011 2012 2013 2014 2015
3,801,269$ 3,319,661$ 3,121,543$ 2,914,823$ 3,066,025$ 11,327,689$
6,585,990 6,490,371 6,906,449 7,310,946 6,831,136 6,907,661
9,864,540 9,720,753 9,758,495 10,325,068 11,396,748 13,448,443
1,338,155 1,335,562 1,692,346 1,588,798 1,545,616 1,486,218
3,272,726 2,930,757 2,724,495 2,633,359 2,456,490 2,066,076
24,862,680 23,797,104 24,203,328 24,772,994 25,296,015 35,236,087
6,561,335 8,474,883 8,023,803 7,611,927 9,867,531 9,867,731
1,239,080 1,176,603 1,383,594 1,589,410 1,944,935 1,795,260
1,736,551 1,708,984 1,724,174 1,645,728 1,693,028 1,848,745
423,423 260,583 154,492 326,382 326,201 349,019
290,818 218,145 299,809 410,808 393,280 392,239
10,251,207 11,839,198 11,585,872 11,584,255 14,224,975 14,252,994
35,113,887$ 35,636,302$ 35,789,200$ 36,357,249$ 39,520,990$ 49,489,081$
273,318$ 277,901$ 263,035$ 279,725$ 276,782$ 263,205$
1,311,914 1,609,601 1,628,076 1,861,481 1,837,076 1,985,746
337,146 360,307 400,773 407,938 342,809 415,395
379,356 438,349 614,164 594,142 534,821 594,130
410,767 413,826 464,187 559,246 538,956 600,264
1,831,662 2,498,297 3,595,000 1,882,698 2,028,250 6,377,610
4,544,163 5,598,281 6,965,235 5,585,230 5,558,694 10,236,350
7,391,493 8,636,333 8,217,582 7,831,307 7,751,250 8,266,107
2,279,840 2,279,633 2,256,336 2,274,549 2,278,128 2,281,125
1,676,136 1,580,954 1,765,186 1,502,897 1,543,151 2,071,141
531,074 138,936 92,626 304,424 347,382 395,718
220,809 266,858 276,190 276,099 323,184 331,630
177,601 463,650 128,893 495,451 701,605 209,831
– 191,686 32,162 852,075 – –
12,276,953 13,558,050 12,768,975 13,536,802 12,944,700 13,555,552
16,821,116$ 19,156,331$ 19,734,210$ 19,122,032$ 18,503,394$ 23,791,902$
(continued)
-98-
Fiscal Year
2006 2007 2008 2009
Net (expense) revenue
Governmental activities (13,274,079)$ (14,217,776)$ (15,959,471)$ (19,369,228)$
Business-type activities 2,043,100 2,859,679 3,450,145 1,794,280
Total primary government net expense (11,230,979)$ (11,358,097)$ (12,509,326)$ (17,574,948)$
General revenues and other changes in net position
Governmental activities
Property taxes 16,958,547$ 17,385,413$ 19,464,163$ 20,727,498$
Franchise taxes – – – –
Unrestricted grants and contributions 27,386 27,386 27,385 13,693
Other general revenues 277,319 557,955 498,523 263,702
Investment earnings 1,299,523 1,771,384 1,328,642 552,835
Gain on sale of capital assets 144,505 18,597 54,025 55,611
Transfers 175,000 175,000 175,000 267,000
Total governmental activities 18,882,280 19,935,735 21,547,738 21,880,339
Business-type activities
Other general revenues 5,611 59,898 – –
Investment earnings 626,982 615,500 541,141 219,267
Transfers (175,000) (175,000) (175,000) (267,000)
Total business-type activities 457,593 500,398 366,141 (47,733)
Total primary government 19,339,873$ 20,436,133$ 21,913,879$ 21,832,606$
Changes in net position
Governmental activities 5,608,201$ 5,717,959$ 5,588,267$ 2,511,111$
Business-type activities 2,500,693 3,360,077 3,816,286 1,746,547
Total primary government 8,108,894$ 9,078,036$ 9,404,553$ 4,257,658$
Last Ten Fiscal Years
(Accrual Basis of Accounting)
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.
Note:
CITY OF GOLDEN VALLEY
Changes in Net Position (continued)
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2010 2011 2012 2013 2014 2015
(20,318,517)$ (18,198,823)$ (17,238,093)$ (19,187,764)$ (19,737,321)$ (24,999,737)$
2,025,746 1,718,852 1,183,103 1,952,547 (1,280,275) (697,442)
(18,292,771)$ (16,479,971)$ (16,054,990)$ (17,235,217)$ (21,017,596)$ (25,697,179)$
20,143,891$ 19,752,048$ 20,946,972$ 21,757,173$ 22,616,003$ 21,934,817$
– 581,600 621,585 904,928 1,048,227 1,028,368
27,386 27,386 – – – –
350,183 336,139 353,033 338,245 286,108 372,590
250,723 300,813 214,493 112,817 347,197 221,237
44,330 156,161 76,852 24,735 71,227 18,337
198,600 198,600 118,523 (73,606) 100,000 100,000
21,015,113 21,352,747 22,331,458 23,064,292 24,468,762 23,675,349
5,330 558 65,978 – – –
101,243 142,204 96,035 38,459 142,866 122,591
(198,600) (198,600) (118,523) 73,606 (100,000) (100,000)
(92,027) (55,838) 43,490 112,065 42,866 22,591
20,923,086$ 21,296,909$ 22,374,948$ 23,176,357$ 24,511,628$ 23,697,940$
696,596$ 3,153,924$ 5,093,365$ 3,876,528$ 4,731,441$ (1,324,388)$
1,933,719 1,663,014 1,226,593 2,064,612 (1,237,409) (674,851)
2,630,315$ 4,816,938$ 6,319,958$ 5,941,140$ 3,494,032$ (1,999,239)$
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THIS PAGE INTENTIONALLY LEFT BLANK
Ad Valorem
Property Taxes Tax Increments Franchise Tax Total
12,771,144$ 4,187,403$ –$ 16,958,547$
13,735,821 3,649,592 – 17,385,413
14,877,502 4,586,661 – 19,464,163
15,337,158 5,390,340 – 20,727,498
15,901,115 4,242,776 – 20,143,891
15,807,735 3,944,313 581,600 20,333,648
16,219,048 4,627,924 621,585 21,468,557
16,922,610 4,834,563 904,928 22,662,101
17,431,741 5,184,262 1,048,227 23,664,230
21,911,378 23,439 1,028,368 22,963,185
Note:
CITY OF GOLDEN VALLEY
Governmental Activities Tax Revenues by Source
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year
2006
2007
2008
2015
Ad valorem property taxes for 2015 include $3,362,003 of excess tax increments redistributed by the county from the
City’s decertified Golden Hills Tax Increment District.
2009
2010
2011
2012
2013
2014
-101-
Fiscal Year
2006 2007 2008 2009
General Fund
Reserved –$ –$ –$ –$
Unreserved 8,652,199 8,807,130 8,894,990 8,985,030
Nonspendable – – – –
Assigned – – – –
Unassigned – – – –
Total General Fund 8,652,199$ 8,807,130$ 8,894,990$ 8,985,030$
All other governmental funds
Reserved 1,141,733$ 1,021,281$ 1,795,677$ 13,598,736$
Unreserved, reported in
Special revenue funds 96,213 115,395 145,519 159,243
Capital project funds 10,524,743 12,883,682 14,304,072 14,296,961
Debt service funds 13,275,728 12,930,925 13,106,172 14,391,151
Nonspendable – – – –
Restricted – – – –
Committed – – – –
Assigned – – – –
Unassigned, reported in
Capital project funds – – – –
Total all other governmental funds 25,038,417$ 26,951,283$ 29,351,440$ 42,446,091$
Note:
(Modified Accrual Basis of Accounting)
The City implemented GASB Statement No. 54 in 2011, which changed fund balance classifications. Fund balances
for previous years have not been restated.
CITY OF GOLDEN VALLEY
Fund Balances of Governmental Funds
Last Ten Fiscal Years
-102-
2010 2011 2012 2013 2014 2015
90,000$ –$ –$ –$ –$ –$
8,913,423 – – – – –
– 45,000 – – 1,256 7,617
– 1,778,352 1,560,000 1,500,000 1,500,000 2,000,000
– 7,395,646 7,756,057 8,207,985 8,640,108 8,719,447
9,003,423$ 9,218,998$ 9,316,057$ 9,707,985$ 10,141,364$ 10,727,064$
9,673,542$ –$ –$ –$ –$ –$
183,065 – – – – –
14,216,671 – – – – –
12,624,401 – – – – –
– – – – – 285
– 29,472,220 33,693,776 43,287,123 47,308,126 33,222,298
– 928,337 687,458 718,723 743,633 202,270
– 7,345,999 8,106,763 7,032,562 7,224,030 11,357,732
– – – – – (41,288)
36,697,679$ 37,746,556$ 42,487,997$ 51,038,408$ 55,275,789$ 44,741,297$
-103-
2006 2007 2008 2009
Revenues
Taxes 12,688,287$ 13,739,116$ 14,842,187$ 15,316,495$
Tax increments 4,188,563 3,652,563 4,663,365 5,322,240
Special assessments 1,915,216 1,469,984 1,693,632 1,781,804
Franchise taxes – – – –
Licenses and permits 1,131,047 1,204,750 1,432,351 839,306
Intergovernmental 567,381 2,085,068 417,463 741,496
Charges for services 1,913,726 1,832,666 1,769,064 1,808,325
Fines and forfeits 362,409 253,594 223,317 210,181
Investment income 1,152,628 1,585,067 1,195,453 510,028
Other revenue 744,222 706,234 681,185 555,088
Total revenues 24,663,479 26,529,042 26,918,017 27,084,963
Expenditures
General government 1,298,923 1,329,568 1,322,117 1,377,347
Administrative services 1,266,287 1,325,111 1,374,942 1,423,084
Casualty insurance 204,579 300,489 214,600 223,209
Public safety 5,250,598 5,486,793 5,722,290 5,824,971
Physical development 3,386,593 3,710,000 3,853,075 3,854,331
Parks and recreation 919,519 971,222 1,066,232 1,039,353
Capital outlay – not capitalized 1,622,642 609,761 822,165 420,753
Construction/acquisition of capital assets 8,571,663 8,520,178 7,519,949 8,336,626
Debt service
Principal retirement 6,450,000 6,515,000 6,930,000 7,085,000
Interest and fiscal charges 3,059,275 3,341,311 3,363,075 3,520,776
Total expenditures 32,030,079 32,109,433 32,188,445 33,105,450
Excess of revenues
over (under) expenditures (7,366,600) (5,580,391) (5,270,428) (6,020,487)
Other financing sources (uses)
Sale of capital assets 716,349 47,766 72,915 90,075
Bonds issued 8,020,000 7,395,000 7,430,000 8,055,000
Refunding bonds issued 11,935,000 – – 10,345,000
Premiums (discounts) on debt issues (75,234) 30,422 80,530 448,103
Payments to refunded bond escrow agent (11,796,600) – – –
Transfers in 5,002,225 5,928,624 6,177,000 6,290,970
Transfers (out) (4,827,225) (5,753,624) (6,002,000) (6,023,970)
Total other financing sources (uses) 8,974,515 7,648,188 7,758,445 19,205,178
Net change in fund balances 1,607,915$ 2,067,797$ 2,488,017$ 13,184,691$
Debt service as a percentage of noncapital
expenditures 40.5% 41.8% 41.7% 42.8%
CITY OF GOLDEN VALLEY
Fiscal Year
Changes in Fund Balances of Governmental Funds
(Modified Accrual Basis of Accounting)
Last Ten Fiscal Years
-104-
2010 2011 2012 2013 2014 2015
15,760,353$ 15,791,136$ 16,378,425$ 16,847,769$ 17,334,800$ 21,874,958$
4,344,739 3,993,985 4,627,924 4,834,563 5,184,262 23,439
1,415,935 1,389,200 1,273,820 1,223,120 1,217,205 1,060,839
– 581,600 621,585 904,928 1,048,227 1,028,368
872,669 1,161,906 1,223,848 1,496,453 1,479,304 1,626,113
643,328 951,285 3,452,180 984,620 1,410,427 4,717,848
1,722,697 1,631,110 1,876,117 1,889,478 1,718,592 1,607,143
284,600 303,908 351,413 366,059 310,318 354,066
236,086 281,770 201,966 107,763 328,554 209,866
678,249 637,606 617,366 650,750 716,133 879,395
25,958,656 26,723,506 30,624,644 29,305,503 30,747,822 33,382,035
1,774,439 1,379,620 1,297,470 1,268,041 1,310,190 9,340,987
1,460,063 1,460,704 1,513,689 1,558,386 1,682,784 1,712,183
277,016 255,536 237,152 222,559 240,918 169,213
5,879,957 6,010,214 6,462,507 6,594,376 6,156,396 6,116,997
3,732,546 3,901,808 4,083,857 4,142,979 5,051,206 4,790,646
1,033,593 1,068,002 1,183,579 1,183,263 1,028,809 1,092,198
1,432,608 1,049,696 1,003,343 1,575,739 1,779,425 3,943,954
4,646,495 3,659,158 5,533,344 4,623,106 5,043,790 8,312,307
7,620,000 6,235,000 5,185,000 6,295,000 8,720,000 9,320,000
3,517,239 3,110,626 2,944,445 2,833,093 2,695,660 2,405,710
31,373,956 28,130,364 29,444,386 30,296,542 33,709,178 47,204,195
(5,415,300) (1,406,858) 1,180,258 (991,039) (2,961,356) (13,822,160)
82,420 236,593 83,669 80,875 222,432 53,442
4,530,000 2,495,000 2,300,000 2,485,000 3,085,000 2,670,000
– 4,870,000 5,960,000 9,100,000 3,950,000 6,600,000
109,261 291,117 166,050 452,503 274,684 164,926
(4,935,000) (5,420,000) (4,970,000) (2,085,000) – (5,715,000)
4,650,385 3,402,570 4,448,233 6,448,710 6,545,710 5,742,041
(4,751,785) (3,203,970) (4,329,710) (6,548,710) (6,445,710) (5,642,041)
(314,719) 2,671,310 3,658,242 9,933,378 7,632,116 3,873,368
(5,730,019)$ 1,264,452$ 4,838,500$ 8,942,339$ 4,670,760$ (9,948,792)$
41.7% 38.2% 34.0% 35.6% 39.8% 30.1%
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Ad Valorem
Property Tax Tax Increments Franchise Tax Total
12,688,287$ 4,188,563$ –$ 16,876,850$
13,739,116 3,652,563 – 17,391,679
14,842,187 4,663,365 – 19,505,552
15,316,495 5,322,240 – 20,638,735
15,760,353 4,344,739 – 20,105,092
15,791,136 3,993,985 581,600 20,366,721
16,378,425 4,627,924 621,585 21,627,934
16,847,769 4,834,563 904,928 22,587,260
17,334,800 5,184,262 1,048,227 23,567,289
21,874,958 23,439 1,028,368 22,926,765
Note:
CITY OF GOLDEN VALLEY
General Governmental Tax Revenues by Source
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year
2006
2007
2008
2015
Ad valorem property taxes for 2015 include $3,362,003 of excess tax increments redistributed by the county from the
City’s decertified Golden Hills Tax Increment District.
2009
2010
2011
2012
2013
2014
-106-
Net Decrease
From Fiscal Decrease From
Real Property Personal Property Disparities Tax Increments
37,306,569$ 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)
37,743,877 423,575 (5,994,022) (20,214)
(1)
Source: Hennepin County
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
2006
2013
2015
2008
CITY OF GOLDEN VALLEY
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Tax Capacities (1)
2007
2012
2011
2010
2009
2014
-107-
Total City Tax
Applied Capacity Estimated Actual
Tax Capacity Rate Applied Taxable Value
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
32,153,216 54.63 2,934,477,667 1.10
Actual Value
Percentage of
Value as a
Assessed
-108-
Total Direct
and
Hennepin Special Overlapping
General Levy Debt Levy City Total County ISD No. 281 Districts Rates
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
40.46 14.17 54.63 46.40 33.22 10.56 144.81
Total Direct
and
Hennepin Special Overlapping
General Levy Debt Levy City Total County ISD No. 270 Districts Rates
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
40.46 14.17 54.63 46.40 30.34 10.56 141.93
(1)
Source: Hennepin County
2012
2013
2015
2007
Year
2008
For the City/ISD No. 270
2014
2011
Overlapping Rates
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.
2006
2007
2009
2010
For the City/ISD No. 281
Overlapping Rates
2009
Direct Rates
2006
CITY OF GOLDEN VALLEY
Property Tax Rates
Direct and Overlapping (1) Governments
Last Ten Fiscal Years
Year
2010
2008
2012
Direct Rates
2011
2013
2014
2015
-109-
Net Tax Net Tax
Capacity Rank Capacity Rank
General Mills, Inc. 1,817,220$ 1 5.7 % 2,250,340$ 1 7.7 %
Allianz Life Insurance Company 1,281,430 2 4.0 877,590 2 3.0
DRA Advisors, LLC 1,048,170 3 3.3 – – –
Golden Jack, LLC 571,530 4 1.8 469,250 5 1.6
Menards, Inc. 495,750 5 1.5 – – –
United Health Care 402,130 6 1.3 509,630 4 1.7
Honeywell 274,750 7 0.9 318,290 8 1.1
TCA Real Estate, LLC 240,210 8 0.7 – – –
The Luther Company, LLP 229,330 9 0.7 – – –
North Wirth Associates, LLP 221,610 10 0.7 – – –
Teacher’s Insurance and Annuity – – – 820,990 3 2.8
Duke Realty – – – 390,138 6 1.3
Lupient Enterprises – – – 345,100 7 1.2
Valley Creek Development, LLC – – – 288,910 9 1.0
Carousel Auto – – – 250,260 10 0.9
Total 6,582,130$ 20.5 % 6,520,498$ 22.3 %
Source: Hennepin County
Applied Tax
CapacityTaxpayer Capacity
Applied Tax
Current Year and Nine Years Ago
Principal Property Taxpayers
CITY OF GOLDEN VALLEY
Percentage of
2015 2006
Percentage of
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Total Tax Collections in
Levy for Subsequent
Fiscal Year (2) Amount (3) Years (4) Amount
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 99.3 121,125 16,395,177 100.0
16,932,407 16,777,814 99.1 131,382 16,909,196 99.9
17,403,839 17,242,324 99.1 88,323 17,330,647 99.6
18,546,364 18,391,561 99.2 – 18,391,561 99.2
(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
Property Tax Levies and Collections (1)
Ended
December 31,
Percentage
Collected Within the
2015
CITY OF GOLDEN VALLEY
Fiscal Year
of Levy
Percentage
Fiscal Year of the Levy
2009
2010
2007
2006
2014
Last Ten Fiscal Years
2008
of Levy
2012
2011
-111-
Special Tax Certificates Tax Net
Assessment Increment of Abatement State-Aid Premiums
Bonds Bonds Indebtedness Bonds Street Bonds (Discounts)
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 2,205,000 1,705,000 1,875,000 1,221,767
64,860,000 – 2,295,000 1,360,000 1,760,000 1,200,577
(1)
Note:
Fiscal Year
2010
2006
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 for personal income and population data.
2015
CITY OF GOLDEN VALLEY
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
2009
2011
-112-
Business-Type
Activities
Utility Total Primary
Total Revenue Bonds Government Per Capita (1)
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
77,261,767 1,040,000 78,301,767 6.21 3,766
71,475,577 910,000 72,385,577 5.45 3,482
Percentage
Income (1)
of Personal
-113-
Less Amounts
General Restricted for
Obligation Repaying
Bonds (1) Principal (2) Total Per Capita (4)
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
77,261,767 32,650,606 44,611,161 1.64 2,146
71,475,577 28,040,782 43,434,795 1.48 2,089
(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
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.
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.
2015
2010
2007
Population data can be found in the Schedule of Demographic and Economic Statistics.
2013
See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property for property value data.
2009
2012
2008
-114-
Estimated
Debt Share of
Outstanding (1) Overlapping Debt
Direct debt
City of Golden Valley 71,475,577$ 100.00 % 71,475,577$
Overlapping debt
ISD No. 270, Hopkins 165,308,887 18.40 30,416,835
ISD No. 281, Robbinsdale 150,362,453 19.82 29,801,838
ISD No. 283, St. Louis Park 39,266,728 0.03 11,780
Hennepin County 689,516,184 2.57 17,720,566
Three Rivers Park District 49,596,497 3.50 1,735,877
Hennepin Regional RR Authority 34,389,498 3.50 1,203,632
Metropolitan Council 67,164,480 1.19 799,257
Total overlapping debt 1,195,604,727$ 81,689,785
Total direct and overlapping debt 153,165,362$
Hennepin County Taxpayer Services
CITY OF GOLDEN VALLEY
Direct and Overlapping Governmental Activities Debt
as of December 31, 2015
Estimated
Percentage
Governmental Unit
Source:
Applicable (1)
Note:
(1) Special assessment, tax abatement, and state-aid street bonds have been included in this table because property
taxes will be used to pay the debt on these issues should other revenue sources fail to provide adequate amounts.
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City.
This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the
residents and businesses of the City. This process recognizes that, when considering the City’s ability to issue and
repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account.
However, this does not imply that every taxpayer is a resident and, therefore, responsible for repaying the debt of
each overlapping government.
-115-
Fiscal Year
2006 2007 2008 2009
59,113,980$ 64,274,052$ 102,004,719$ 102,771,441$
1,818,896 1,911,054 1,964,316 1,987,568
57,295,084$ 62,362,998$ 100,040,403$ 100,783,873$
Total net debt applicable to the limit
3.08% 2.97% 1.93% 1.93%
Note:
Legal debt margin
as a percentage of debt limit
CITY OF GOLDEN VALLEY
Legal Debt Margin Information
Last Ten Fiscal Years
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.
Debt limit
Total net debt applicable to limit
-116-
2010 2011 2012 2013 2014 2015
98,227,905$ 90,147,258$ 84,881,071$ 82,331,677$ 81,576,962$ 88,034,330$
1,918,389 1,793,550 1,784,770 2,927,363 2,833,906 1,712,141
96,309,516$ 88,353,708$ 83,096,301$ 79,404,314$ 78,743,056$ 86,322,189$
1.95% 1.99% 2.10% 3.56% 3.47% 1.94%
Market value 2,934,477,667$
Debt limit (3% of market value) 88,034,330
Total bonded debt 71,185,000$
Less
Debt not payable primarily from tax levies
Special assessment bonds 64,860,000
Tax abatement bonds 1,360,000
State-aid street bonds 1,760,000
Utility revenue bonds 910,000
Fund balances available for tax supported debt 582,859
Total net debt applicable to limit 1,712,141
Legal debt margin 86,322,189$
Legal Debt Margin Calculation for Fiscal Year 2015
-117-
Less Operating Net Available
Gross Revenue Expenses Revenue Principal Interest
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
2015 2,455,263 1,748,165 707,098 130,000 41,718
(1)
(2)
(3)
Note:
CITY OF GOLDEN VALLEY
Pledged Revenue Coverage
Last Ten Fiscal Years
Fiscal Year
In 2014, the City used available funds to exercise an early call provision and retire $1,180,000 of utility
revenue bonds before their stated maturity dates.
Utility revenue bonds, payable from the Storm Sewer Utility Fund.
Debt Service
Details regarding the City’s outstanding debt can be found in the notes to basic financial statements. Gross
revenue includes investment earnings. Operating expenses do not include interest.
Excludes principal refunded from the proceeds of refunding bond issues.
Revenue Bonds (1)
-118-
Special
Assessment
Coverage Collections Principal (3) Interest Coverage
4.60 1,915,215$ 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
4.12 980,375 3,215,000 1,999,619 0.19
Special Assessment Bonds
Debt Service
-119-
Per Capita
Personal School
Population (1) Personal Income (2) Income (3) Enrollment (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
20,790 1,259,894,790 60,601 2,074 3.2
20,790 1,328,501,790 63,901 2,115 3.2
Sources:
(1)Metropolitan Council – Regional Statistics and Data except for 2015 – City estimate.
(2)
(3)
(4)
(5)
CITY OF GOLDEN VALLEY
Rate (5)
Unemployment
Demographic and Economic Statistics
2006
2007
2009
2008
2013
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.
2010
Minnesota Department of Economic Security – Hennepin County.
Last Ten Fiscal Years
Fiscal Year
School districts.
2011
2012
2014
2015
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.
-120-
Employees Rank Employees Rank
5,500 1 16.2 % 3,100 1 10.3 %
2,096 2 6.2 1,550 3 5.1
OptumHealth 1,700 3 5.0 – – –
Honeywell Incorporated 1,350 4 4.0 2,000 2 6.6
G.H. Tennant Company 813 5 2.4 1,200 4 4.0
Courage Center 600 6 1.8 500 6 1.7
M.A. Mortenson 600 6 1.8 – – –
420 8 1.2 265 9 0.9
360 9 1.1 – – –
350 10 1.0 – – –
– – – 1,200 4 4.0
McKesson Corporation – – – 462 7 1.5
– – – 270 8 0.9
Liberty Carton – – – 250 10 0.8
Total 13,789 40.7 % 10,797 35.8 %
Source: Metropolitan Council – Regional Statistics and Data
Lupient Automobile Group
Lubrication Technologies
Breck School
Preferred One
Allianz Life Insurance Company
United Health Care
CITY OF GOLDEN VALLEY
Employment
of Total City
Percentage
2006
Principal Employers
Percentage
Current Year and Nine Years Ago
2015
of Total City
General Mills, Inc.
Employer Employment
-121-
2006 2007 2008 2009
Function
16.10 16.10 18.10 18.10
50.00 50.25 52.25 51.25
31.41 31.91 31.91 31.91
5.80 5.80 5.80 5.80
9.34 10.59 10.59 10.59
1.00 1.00 1.00 1.00
7.00 7.00 7.00 7.00
5.75 5.75 5.75 5.00
Total 126.40 128.40 132.40 130.65
Source: Various city departments
Last Ten Fiscal Years
Full-Time Equivalent City Government Employees by Function
CITY OF GOLDEN VALLEY
Full-Time Equivalent Employees as of Year Ended December 31,
General government
Public safety
Physical development
Motor vehicle licensing
Storm sewer
Parks and recreation
Water and sewer
Golf course
-122-
2010 2011 2012 2013 2014 2015
18.10 17.60 17.10 23.10 23.10 23.50
52.25 50.75 50.75 44.75 47.25 47.25
30.91 29.91 30.66 31.66 30.66 29.66
5.80 5.50 5.50 5.50 5.50 5.50
10.59 10.59 11.34 12.34 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 4.00 4.00 4.00 4.00
130.65 127.35 126.35 128.35 130.85 130.25
-123-
Fiscal Year
2006 2007 2008 2009
Function
1,423 1,079 1,025 1,025
163 113 106 106
Citations written 3,194 2,890 2,847 2,847
Fire
762 754 693 693
3.3 3.8 4.2 4.2
Water
New (removed) connections (3) (150) 11 11
Water main breaks 26 18 18 18
Average daily consumption
(thousands of gallons) 2,851 2,816 2,759 2,759
Sources: Various city departments
Street resurfacing (miles)
Adult arrests
Juvenile arrests
Number of calls answered
Highways and streets
Police
CITY OF GOLDEN VALLEY
Operating Indicators by Function
Last Ten Fiscal Years
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2010 2011 2012 2013 2014 2015
1,338 1,177 1,399 1,103 905 1,025
80 107 70 61 38 33
3,184 5,036 3,828 3,524 3,488 3,138
715 726 648 797 631 711
2.7 1.1 1.2 1.0 1.2 1.2
(7) 1 (5) 2 8 (1)
17 27 26 10 30 28
2,433 2,561 2,765 2,518 2,213 2,156
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Fiscal Year
2006 2007 2008 2009
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 7,322 7,319 7,139 7,150
Sewer
Connections 7,160 7,152 7,164 7,172
Sources: Various city departments
CITY OF GOLDEN VALLEY
Capital Asset Statistics by Function
Last Ten Fiscal Years
Patrol units
Police
Stations
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2010 2011 2012 2013 2014 2015
111111
888888
333333
144 144 144 144 144 144
1,830 1,830 1,838 1,840 1,840 1,840
462 462 462 462 462 462
30 30 30 30 30 30
999999
222222
7,143 7,144 7,139 7,141 7,149 7,148
7,175 7,174 7,169 7,179 7,188 7,234
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