Comprehensive Annual Financial Report - 2018Comprehensive
Annual Financial Report
For the Fiscal Year Ended December 31, 2018 • Golden Valley, Minnesota
photo by Jennifer Valorose, 2018 Views of the Valley
CITY OF GOLDEN VALLEY
HENNEPIN COUNTY, MINNESOTA
Comprehensive Annual Financial Report
for Year Ended
December 31, 2018
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–viii
GFOA CERTIFICATE OF ACHIEVEMENT ix
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 32–35
Notes to Basic Financial Statements 36–71
REQUIRED SUPPLEMENTARY INFORMATION
PERA – General Employees Retirement Fund
Schedule of City’s and Nonemployer Proportionate Share of Net Pension Liability 72
Schedule of City Contributions 72
PERA – Public Employees Police and Fire Fund
Schedule of City’s Proportionate Share of Net Pension Liability 73
Schedule of City Contributions 73
Golden Valley Fire Department Relief Association
Schedule of Changes in Net Pension Asset and Related Ratios 74
Schedule of City Contributions and Nonemployer Contributing Entities 75
Other Post-Employment Benefits Plan
Schedule of Changes in the City’s Total OPEB Liability and Related Ratios 76
Notes to Required Supplementary Information 77–79
CITY OF GOLDEN VALLEY
HENNEPIN COUNTY, MINNESOTA
Table of Contents
Page
SUPPLEMENTAL INFORMATION
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Nonmajor Governmental Funds 80–81
Combining Balance Sheet 82
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances 83
Nonmajor Special Revenue Funds
Combining Balance Sheet 84–85
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances 86–87
Nonmajor Debt Service Funds
Combining Balance Sheet 88
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances 89
Nonmajor Capital Project Funds
Combining Balance Sheet 90–91
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances 92–93
General Fund
Schedule of Revenue – Budget and Actual 94
Schedule of Expenditures – Budget and Actual 95–96
Internal Service Funds 97
Combining Statement of Net Position 98
Combining Statement of Revenue, Expenses, and Changes in Net Position 99
Combining Statement of Cash Flows 100
OTHER CITY INFORMATION
Schedules of Sources and Uses of Public Funds for Tax Increment Financing Districts
North Wirth Parkway No. 1505 101
Highway 55 West No. 1506 102
Cornerstone Creek No. 1507 103
Winnetka/Medicine Lake (Liberty Crossing) No. 1508 104
STATISTICAL SECTION (UNAUDITED)105
Net Position by Component 106–107
Changes in Net Position 108–111
Governmental Activities Tax Revenues by Source 112
Fund Balances of Governmental Funds 113–114
Changes in Fund Balances of Governmental Funds 115–116
General Governmental Tax Revenues by Source 117
Assessed Value and Estimated Actual Value of Taxable Property 118–119
Property Tax Rates 120
Principal Property Taxpayers 121
Property Tax Levies and Collections 122
Ratios of Outstanding Debt by Type 123–124
Ratios of General Bonded Debt Outstanding 125
Direct and Overlapping Governmental Activities Debt 126
Legal Debt Margin Information 127–128
Pledged Revenue Coverage 129–130
Demographic and Economic Statistics 131
Principal Employers 132
Full-Time Equivalent City Government Employees by Function 133–134
Operating Indicators by Function 135–136
Capital Asset Statistics by Function 137–138
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 12/31/2021
Gillian Rosenquist Councilmember 12/31/2021
Steve Schmidgall Councilmember 12/31/2019
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, 2018
Board of Zoning
Appeals
Environmental
Commission
Civil Service
Commission
Human Rights
Commission
Planning
Commission
Human Services
Commission Open Space &
Recreation Commission
FirePhysical
DevelopmentParks & RecreationFinance
Street & Vehicle
Maintenance
General Services
Golf Operations
Utilities
Maintenance
Park
Maintenance
Accounting Golf Maintenance
Inspections
Engineering
Recreation
Computer Services
Motor Vehicle
Licensing
Planning
Maintenance
Legal PoliceHuman Resources Communications
Bond ConsultantCity Clerk
Elections
Organization Chart
City Council/
HRA
Citizens of
Golden Valley
City Manager
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May 29, 2019
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, 2018. 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,
2018 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 the re was a
reasonable basis for rendering an unmodified opinion that the City’s financial statements for the fiscal
year ended December 31, 2018, 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
Golden Valley Housing and Redevelopment Authority (HRA), which is reported as a blended component
unit of the City.
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-iv-
PROFILE OF THE CITY
The City, incorporated in 1886, is an almost fully developed community in Hennepin County. It
encompasses about 10.73 square miles and has an estimated population of 21,646. 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 32 sworn officers, which include the police chief, 2 commanders and
7 sergeants. Fire services are provided by approximately 50 paid on-call firefighters, fire chief, deputy
fire chief, battalion chief, and 2 firefighters that are code enforcement officers. The City went from a
Class 4 to Class 2 insurance rating.
The 2018–2019 biennial budget was created to help serve as the foundation for the City’s financial
planning and control. Departments submit budget requests to the finance department in May. The
city manager presents the proposed budget to the City Council for review starting in July, to be approved
by September 30 each year, for a proposed tax rate for its property owners. All budget workshops are
open to the public. The final adoption of the budget and levy are approved in December. Each year of the
biennial budget, the first year is adopted and the second year is approved in concept only.
ECONOMIC CONDITION AND OUTLOOK
The City’s top priorities have been maintaining the City’s infrastructure—streets, water and sewer, pipes,
parks, public buildings—representing a significant community investment. After all, the value of private
property relates directly to what surrounds it. The City made significant efforts to plan the infrastructure
renewal program with many public meetings that will start after the Pavement Management Program will
end in 2023. In 2018, the City’s comprehensive plan was approved and included both programs. The City
is going to a 10-year Capital Improvement Program in 2019 for the years 2020–2029.
In 2018, a stable economy resulted in higher than budgeted building permit revenue and saw the
completion of many projects that were started in 2017. With this unanticipated revenue, the City Council
approved a “positive performance” budget transfer to the Street Reconstruction Fund that will go toward
financing the 2019 Pavement Management Program with a lessor size bond issue. This action met one of
the top priorities of the City Council to reduce long-term debt.
Retirements and cost containment helped keep total overall expenditures under budget in 2018.
The City will once again take a conservative approach for the 2019 budget year.
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The following table shows the City’s building activity for the last 10 years:
Year Number Value
2009 1,310 29,321,560$
2010 1,109 28,800,511$
2011 1,175 51,419,406$
2012 798 53,201,489$
2013 984 65,531,059$
2014 1,055 78,090,465$
2015 1,118 109,928,275$
2016 998 104,651,963$
2017 1,144 239,041,991$
2018 951 79,654,541$
Total Permits
The following major projects were started or completed throughout the City in 2018:
Residential
Single-Family Homes:
•14 new with values ranging from $321,245 to $1,200,000.
•14 remodel/addition projects with values greater than $100,000.
•729 remodel/addition projects with a total valuation of $10,143,661.
Global Pointe Senior Living (5200 Wayzata Boulevard) – Building valuation for 98-unit senior
living facility valued at $16,749,543.
Duplex and Multi-Family Units:
•5510/5520 Lindsay Street valued at $300,000.
•2362, 2364, 2372, and 2374 Winnetka Avenue North valued at $541,060.
Commercial
Meadowbrook School Expansion (Independent School District No. 270) – Approximately
7,392 square feet addition to existing building valued at $3,720,000.
Lat 14 – Restaurant remodel of former Perkins restaurant valued at $515,000.
Audi Car Dealership (9393 Wayzata Boulevard) – Remodeling of existing facilities valued at
$1,200,000.
Honeywell/Residio (1985 Douglas Drive) – Northwest factory converted into separate facility to
create space for a new business location with a value of $2,591,611, and improvements to existing
building with a value of $1,400,000.
General Mills-James Ford Bell Technical Institute (9000 Plymouth Avenue) – Replaced windows
and roof with a total valuation of $646,000.
Cyberoptics Corporation (5900 Golden Hills Drive) – Remodel existing tenant space with a value of
$1,200,000.
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Mortenson (700 Meadow Lane North) – First floor remodel with valuation of $1,800,000.
Jaguar/Land Rover – Addition and remodel of building with a valuation of $6,000,000.
Park Nicollet – The clinic moved to a new location with a valuation of $2,050,000.
Golden Valley Supply – Purchase and remodel building for storage with a valuation of $498,000.
Lockton – Remodel existing building to accommodate new tenant with a valuation of $400,000.
Ceres Global Ag Corporation – Remodel existing building to accommodate new tenant with a
valuation of $570,000.
MPX Printing – Remodel existing building with a valuation of $310,000.
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LONG-TERM FINANCIAL PLANNING
An unassigned fund balance goal in the General Fund of 60 percent of current year budgeted General
Fund expenditures was approved in the fund balance policy adopted by the City Council for budgetary
and planning purposes. The City strongly believes maintaining this higher level of fund balance is
prudent, due to its debt load and the increased uncertai nty of its revenue sources. This practice is also
supported by the City’s bond rating agency.
In 1995, through its Pavement Management Program, the City began reconstructing its streets that did not
meet standards. At the end of 2018, the City has completed 112.70 of 120.00 miles. The City plans to
construct 1.56 miles in 2019.
The Brookview Facility was completed in December 2017. This involved many meetings with a task
force, citizen open houses from all age groups (youth, adult, and senior), and special interest groups such
as golf, athletic associations, staff, and City Council. Many new programs and activities, along with the
new restaurant and golf area, has brought many to the City of Golden Valley for a delightful outing.
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.
MAJOR INITIATIVES
The City is a member of the Joint Water Commission (JWC), a joint powers organization that also
includes the cities of New Hope and Crystal . The JWC purchases water from the City of Minneapolis for
resale to the customers of the three cities . The JWC was set up in the early 1960s and has functioned
effectively. The JWC has an emergency well backup system and is now working on financing future
capital needs such as replacing the water towers. A capital improvement program was approved to plan
for the replacements until 2048. Financing is set to save monies for the three water towers.
The City is working with Hennepin County, the cities of Crystal and New Hope, the Bassett Creek
Watershed Management Organization, Metropolitan Council Environmental Services, and the State of
Minnesota to implement a plan to minimize flood damage to 39 properties in the vicinity of the
DeCola Ponds and Medicine Lake Road. This proj ect includes multiple flood storage projects over a long
time frame and also includes structural flood proofing of a number of homes. In 2017, the City, along
with the development of Liberty Crossing, made significant improvements to the DeCola Ponds location.
In 2018, plans were developed for improvements for ponds B and C and 2019 improvements will
commence.
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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, 2017.
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 2018 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
C E R T I F I E D
A C C O U N T A N T S
P UBLIC
PRINCIPALS
Thomas A. Karnowski, CPA
Paul A. Radosevich, CPA
William J. Lauer, CPA
James H. Eichten, CPA
Aaron J. Nielsen, CPA
Victoria L. Holinka, CPA/CMA
Jaclyn M. Huegel, CPA
Malloy, Montague, Karnowski, Radosevich & Co., P.A.
5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com
Standard Letterhead-r2.qxp_167639 Letterhead-RV1 9/7/18 6:34 PM Page 1
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INDEPENDENT AUDITOR’S REPORT
To the City Council and Management
City of Golden Valley, Minnesota
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of Golden Valley,
Minnesota (the City) as of and for the year ended December 31, 2018, 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 effec tiveness 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, 2018, 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. 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions during the year ended December 31, 2018. Our opinion is
not modified with respect to this matter.
OTHER MATTERS
Required Supplementary Information
Accounting principles generally accepted in the United Stat es 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 May 29, 2019
on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters.
The purpose of that report is solely to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness
of the City’s internal control over financial reporting or on compliance . That report is an integral part of
an audit performed in accordance with Government Auditing Standards in considering the City’s internal
control over financial reporting and compliance.
Minneapolis, Minnesota
May 29, 2019
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CITY OF GOLDEN VALLEY
Management’s Discussion and Analysis
Year Ended December 31, 2018
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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, 2018. 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 2018 by $120,030,918 (net position). The City’s
government-wide net position increased $8,520,901 in 2018, excluding the change in accounting
principle discussed 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 in 2018 for implementing Governmental
Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions, which reduced the beginning net position of the
governmental activities by $749,520 in the government-wide financial statements.
• At the end of the fiscal year, the unassigned fund balance for the City’s General Fund was
$11,014,502, which represents 52.8 percent of 2018 General Fund expenditures and transfers out.
• The City sold one new bond issue in 2018. The City’s long-term bonded debt decreased
$9,110,000 in 2018, excluding unamortized premiums.
OVERVIEW OF THE FINANCIAL STATEMENTS
The management’s discussion and analysis is intended to serve as an introduction to the City’s basic
financial statements, which are comprised of three components: 1) government -wide financial statements,
2) fund financial statements, and 3) notes to basic financial statements . This report also contains other
supplementary information in addition to the basic financial statements.
Government-Wide Financial Statements – The government-wide financial statements are designed to
provide readers with a broad overview of the City’s finances, in a manner similar to private sector
businesses.
The Statement of Net Position presents information on all of the City’s assets, deferred outflows of
resources, liabilities, and deferred inflows of resources, with the difference reported as net position. Over
time, increases or decreases in net position may serve as a useful indicator of whether the financial
position of the City is improving or deteriorating.
The Statement of Activities presents information showing how the City’s net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows . Thus, revenues and expenses are
reported in this statement for some items that will only result in cash flows in future fiscal periods
(delinquent taxes and special assessments).
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Both of the government-wide financial statements distinguish functions of the City that are principally
supported by property taxes and intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business-type activities). The governmental activities include general government, public safety,
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 a blended component unit within the City’s financial statements.
Fund Financial Statements – A fund is a grouping of related accounts that is used to maintain control
over resources segregated for specific activities or objectives . The City, like other local governments,
uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All
of the funds of the City can be divided into two categories: governmental funds and proprietary funds.
Governmental Funds – Governmental funds account for essentially the same functions reported as
governmental activities in the government-wide financial statements. 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 28 individual governmental funds. Information is presented separately in the basic
financial statements for the General, Street Reconstruction Debt Service, Winnetka/Medicine Lake Tax
Increment Capital Project, 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 cours e, 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 other post-employment
benefit and pension plans 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 $120,030,918 at the end of the 2018 fiscal year, which represents an increase in
overall net position of $8,520,901 from current year operations, excluding the $749,520 reduction to the
beginning unrestricted net position of the governmental activities for the implementation of
GASB Statement No. 75.
Net Position – The City has 54.1 percent of its total net position invested in capital assets (land, land
improvements, buildings and improvements, machinery and equipment, infrastructure , and construction
in progress) less any related debt used to acquire those assets that is still outstanding. The City uses these
capital assets to provide services to citizens; consequently, these assets are not available for future
spending. Although the City’s investment in its capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources, since the capital
assets themselves cannot liquidate these liabilities. An additional 20.3 percent of the City’s net position
represents resources that are subject to external restrictions on how they may be used. The remaining
25.6 percent of net position is unrestricted and may be used to meet the City’s ongoing obligations.
The following is a summary of the City’s net position at the end of the last two fiscal years:
2018 2017 2018 2017 2018 2017
Current and other assets 61,810,073$ 71,904,691$ 21,542,332$ 19,534,233$ 83,352,405$ 91,438,924$
Capital assets 99,104,613 95,095,374 39,568,149 38,473,948 138,672,762 133,569,322
Total assets 160,914,686 167,000,065 61,110,481 58,008,181 222,025,167 225,008,246
Deferred outflows of resources 6,242,324 8,375,033 – – 6,242,324 8,375,033
Long-term liabilities
(including current portion)90,116,089 100,429,880 1,852,383 2,619,688 91,968,472 103,049,568
Other liabilities 4,919,374 5,781,197 2,617,631 3,465,969 7,537,005 9,247,166
Total liabilities 95,035,463 106,211,077 4,470,014 6,085,657 99,505,477 112,296,734
Deferred inflows of resources 8,731,096 8,827,008 – – 8,731,096 8,827,008
Net position
Net investment in capital assets 27,973,471 24,239,358 36,950,518 35,854,260 64,923,989 60,093,618
Restricted 24,401,665 21,342,170 – – 24,401,665 21,342,170
Unrestricted 11,015,315 14,755,485 19,689,949 16,068,264 30,705,264 30,823,749
Total net position 63,390,451$ 60,337,013$ 56,640,467$ 51,922,524$ 120,030,918$ 112,259,537$
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:
2018 2017 2018 2017 2018 2017
Revenues
Program revenues
Charges for services 4,044,578$ 4,708,257$ 16,713,219$ 14,805,497$ 20,757,797$ 19,513,754$
Operating grants and
contributions 1,261,435 1,444,260 395,134 966,871 1,656,569 2,411,131
Capital grants and
contributions 3,140,938 2,689,043 398,387 1,227,470 3,539,325 3,916,513
General revenues
Property taxes 22,825,055 21,419,195 – – 22,825,055 21,419,195
Franchise taxes 836,780 687,773 1,000,000 400,000 1,836,780 1,087,773
Other general revenues 264,266 291,837 – – 264,266 291,837
Investment earnings 788,823 522,746 339,634 246,111 1,128,457 768,857
Gain on sale of capital assets 80,997 3,775 – – 80,997 3,775
Total revenues 33,242,872 31,766,886 18,846,374 17,645,949 52,089,246 49,412,835
Expenses
General government 3,633,644 3,260,989 – – 3,633,644 3,260,989
Public safety 7,979,009 8,128,614 – – 7,979,009 8,128,614
Physical development 12,019,371 11,539,091 – – 12,019,371 11,539,091
Parks and recreation 2,710,862 2,205,615 – – 2,710,862 2,205,615
Interest and fiscal charges 1,947,173 2,321,780 – – 1,947,173 2,321,780
Water and sewer – – 9,374,281 8,395,036 9,374,281 8,395,036
Storm sewer – – 1,861,392 2,526,607 1,861,392 2,526,607
Golf course – – 3,235,267 2,348,327 3,235,267 2,348,327
Motor vehicle licensing – – 399,060 405,407 399,060 405,407
Recycling – – 408,286 389,472 408,286 389,472
Total expenses 28,290,059 27,456,089 15,278,286 14,064,849 43,568,345 41,520,938
Change in net position
before transfers 4,952,813 4,310,797 3,568,088 3,581,100 8,520,901 7,891,897
Transfers – capital assets 6,060 – (6,060) – – –
Transfers – internal activities (1,155,915) 1,030,000 1,155,915 (1,030,000) – –
Change in net position 3,802,958 5,340,797 4,717,943 2,551,100 8,520,901 7,891,897
Net position
Beginning, as restated 59,587,493 54,996,216 51,922,524 49,371,424 111,510,017 104,367,640
Ending 63,390,451$ 60,337,013$ 56,640,467$ 51,922,524$ 120,030,918$ 112,259,537$
TotalGovernmental Activities Business-Type Activities
Governmental Activities – Governmental activities net position increased by $3,802,958. Key elements
of this net increase include:
•Revenue from charges for services decreased $663,679 from the prior year, due to a decrease in
licenses and permits issued for building construction.
•Operating grants and contributions were $182,825 lower than last year.
•Capital grants and contributions increased by $451,895 from the prior year, due to an increase in
state aid for municipal state aid-eligible street construction.
•Revenue from property taxes increased $1,405,860 from the prior year, due to an increase in the
adopted levy from the prior year.
•General government expenses increased $372,655, due to additional operating costs of a new
building, staffing increases, and improvements throughout the City.
•The City’s government-type activities transferred $1,155,915 to the business-type activities.
-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
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 net position increased by $4,717,943. Key elements
of this net increase include:
• Charges for services increased $1,907,722, mainly in water and sewer utility charges, and
increased revenue generated from the golf course operation due to opening the new Brookview
facility.
• Operating and capital grants were $571,737 and $829,083 lower than last year, respectively,
mainly due to less grants and capital contributions received in the Storm Sewer Utility Fund.
• Business-type activities expenses were $1,213,437 higher than the previous year, mainly due to
the following:
o an increase of $979,245 in water and sewer utility costs, due to increased water
purchases and system maintenance,
o lower storm water maintenance costs, due to a large project wrapping up, and
o increased golf course operating costs, due to opening the new Brookview facility and the
purchase of 60 electric golf carts.
-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
$11,000,000
Water and
Sewer
Storm Sewer Brookview Golf
Course
Motor Vehicle
Licensing
Recycling
Expenses Program Revenues
Revenue by Source – Business-Type Activities
-11-
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
Governmental Funds – At the end of the fiscal year, the City’s governmental funds reported combined
ending fund balances of $47,603,162, a decrease of $9,816,718 in comparison with the prior year. The
unassigned portion of fund balance is $8,849,640, which may be used for any approved public purpose.
The remainder of the fund balance is either: 1) restricted by various externally imposed constraints
($26,311,344), 2) internally committed for particular purposes ($213,624), or 3) internally assigned for
particular purposes ($12,228,554).
General Fund – The fund balance of the General Fund increased by $655,653 to $13,059,502 at
December 31, 2018.
General Fund operating results can be summarized as follows:
2018 2017
Fund balance – beginning of year 12,403,849$ 10,973,096$
Additions
Revenue 21,504,130 20,596,423
Other sources 30,000 30,000
Total additions 21,534,130 20,626,423
Deductions
Expenditures 17,381,304 16,464,250
Other uses 3,497,173 2,731,420
Total deductions 20,878,477 19,195,670
Fund balance – end of year 13,059,502$ 12,403,849$
Of the total fund balance, the City has assigned $2,000,000 for self-insurance to finance the potential risk
related to insurance deductibles or settlements in excess of commercial insurance limits , $35,000 for a
study of the City’s downtown area, and $10,000 for document imaging.
The unassigned fund balance at December 31, 2018 of $11,014,502 is equal to 52.8 percent of total 2018
expenditures and other financing uses in the General Fund, which puts the fund in an excellent financial
position. These reserves are needed for working capital to help pay for expenditures during the first half
of the year, since the City does not receive any significant money from its main revenue
source—property taxes—until July of each year.
-12-
General Fund Revenues – The following is an analysis of 2018 General Fund revenue:
Original Final Over (Under)
Revenue Budget Budget Actual Final Budget
Ad valorem taxes 17,253,460$ 17,253,460$ 17,181,437$ (72,023)$ (0.4) %
Licenses 220,980 220,980 240,215 19,235 8.7
Permits 887,785 1,001,433 1,538,106 536,673 53.6
Intergovernmental 52,375 52,375 109,935 57,560 109.9
Charges for services 1,456,800 1,456,800 1,621,319 164,519 11.3
Fines and forfeits 320,000 320,000 379,708 59,708 18.7
Investment income 75,000 75,000 180,776 105,776 141.0
Other revenue 193,000 193,000 252,634 59,634 30.9
Totals 20,459,400$ 20,573,048$ 21,504,130$ 931,082$ 4.5
(Under) Budget
Percent Over
Licenses and permits were over budget, primarily due to an increase in building and construction-related
activity. Intergovernmental income was over budget, due to an unanticipated increase in state fire grants.
Fines and forfeits were over budget because of an increase in fines passed through from the county.
Investment income was over budget due to improved interest rates.
General Fund Expenditures – The following is an analysis of 2018 General Fund expenditures:
Original Final Over (Under)
Expenditure Budget Budget Actual Final Budget
General government 1,322,445$ 1,419,690$ 1,274,302$ (145,388)$ (10.2) %
Administrative services 1,986,970 1,986,970 1,963,163 (23,807) (1.2)
Casualty insurance 310,000 310,000 318,934 8,934 2.9
Public safety 7,700,725 7,765,725 6,989,839 (775,886) (10.0)
Physical development 6,004,085 6,046,085 5,738,929 (307,156) (5.1)
Parks and recreation 1,182,595 1,182,595 1,096,137 (86,458) (7.3)
Totals 18,506,820$ 18,711,065$ 17,381,304$ (1,329,761)$ (7.1)
(Under) Budget
Percent Over
General government expenditures were under budget, due to savings in personal services and contracted
services. Casualty insurance was higher than budget, due to a lower year-end premium dividend than
anticipated. Public safety expenditures were under budget , due to personal service cost savings from
staffing changes. Physical development expenditures were under budget in personal service costs , due to
personnel costs charged out to capital projects.
-13-
Other Major Governmental Funds – The City reported four other major governmental funds for 2018.
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 $12,541,849 accumulated for future debt service. Fund balance decreased by $6,910,293 in
2018, due to $6,345,000 of outstanding debt principal retired through a crossover debt refunding using
the proceeds of refunding bonds issued in a prior year.
The Winnetka/Medicine Lake Tax Increment Capital Project Fund ended the year with a fund balance
deficit of $2,164,862. Fund balance decreased by $1,098,215 in 2018, due to interfund transfers out of
$1,182,565 made to finance road and sewer improvements within the tax increment district area. The
deficit is expected to be financed through future tax increment collections.
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 $3,956,184, an increase of $56,359, due to
revenues exceeding the relatively minor capital outlay expenditures in this fund for 2018.
The Douglas Drive Improvement Capital Project Fund, used to account for a major street reconstruction
project, ended the year with a fund balance of $1,791,873, an increase of $425,370, due to revenues
exceeding the relatively minor capital outlay expenditures in this fund for 2018.
Proprietary Funds – The City’s proprietary funds provide the same information for the business-type
activities found in the government-wide financial statements, but in more detail.
The City’s enterprise funds had a total net position of $58,991,059 at year-end, of which $22,040,541
was unrestricted. The total net position of these funds improved by $4,674,240 during 2018.
Utility Fund net position increased $2,220,267, due to operating income of $1,130,947 and the allocation
of $1,000,000 of franchise taxes to this fund in 2018.
Storm Sewer Utility Fund net position increased $2,658,748, mainly due to $1,580,952 of capital
contributions and interfund transfers received for storm sewer improvement projects during the year.
The Brookview Operating (Golf Course) Fund had a decrease in net position of $276,227, mainly due to
an increase in operating costs for the new facility, the purchase of 60 electric golf carts, and the lawn
bowling course not opening until fall.
The Motor Vehicle Operating Fund had an increase in net position of $10,895.
The Recycling Fund had an increase in net position of $60,557.
-14-
CAPITAL ASSETS AND LONG-TERM LIABILITIES
Capital Assets – The City’s investment in capital assets (net of accumulated depreciation) for its
governmental and business-type activities as of December 31, 2018 was $138,672,762, an increase of
$5,103,440 from the prior year. The City’s capital assets for the last two years are as follows:
2018 2017 2018 2017 2018 2017
Land 3,527,685$ 3,527,685$ 857,044$ 857,044$ 4,384,729$ 4,384,729$
Land improvements 6,906,528 5,853,690 3,161,159 3,155,215 10,067,687 9,008,905
Buildings and improvements 28,811,122 12,877,507 808,625 788,151 29,619,747 13,665,658
Machinery and equipment 16,173,893 13,831,531 4,775,557 4,667,866 20,949,450 18,499,397
Infrastructure 120,479,542 117,122,058 50,288,408 43,190,504 170,767,950 160,312,562
Construction in progress 16,692,639 29,714,190 3,718,494 8,408,414 20,411,133 38,122,604
Less accumulated
depreciation (93,486,796) (87,831,287) (24,041,138) (22,593,246) (117,527,934) (110,424,533)
Net total 99,104,613$ 95,095,374$ 39,568,149$ 38,473,948$ 138,672,762$ 133,569,322$
Governmental Activities Business-Type Activities Total
The majority of the increase in capital assets was in infrastructure and construction in progress , due to
several significant street reconstruction projects, which also resulted in increased depreciation, and also
the ongoing construction of the Brookview facility. Additional details of the City’s capital asset activity
for the year can be found in Note 4 of the notes to basic financial statements.
Long-Term Liabilities – The debt service funds account for the accumulation of resources to finance all
of the City’s governmental activity general obligation debt. The revenue sources for these funds include
annual tax levies, tax increments, franchise taxes, and special assessments. At year-end, there was
$16,334,331 of fund balance restricted for debt service in the governmental funds. The revenue bonds
will be paid from the designated business activity of the Storm Sewer Utility Fund. The following table
presents the City’s long-term liabilities as of the last two year-ends:
2018 2017 2018 2017 2018 2017
G.O. special assessment bonds 48,175,000$ 55,340,000$ –$ –$ 48,175,000$ 55,340,000$
G.O. improvement bonds 5,405,000 5,630,000 – – 5,405,000 5,630,000
HRA lease revenue bonds 16,935,000 17,410,000 – – 16,935,000 17,410,000
G.O. certificates of indebtedness 1,620,000 2,400,000 – – 1,620,000 2,400,000
G.O. tax abatement bonds 330,000 670,000 – – 330,000 670,000
G.O. tax increment bonds 1,170,000 1,170,000 – – 1,170,000 1,170,000
G.O. state aid street bonds 1,395,000 1,520,000 – – 1,395,000 1,520,000
Revenue bonds – – 2,580,000 2,580,000 2,580,000 2,580,000
Unamortized premiums 2,084,966 2,352,017 37,631 39,688 2,122,597 2,391,705
Compensated absences 1,617,140 1,585,622 – – 1,617,140 1,585,622
Net pension liability – PERA 9,400,815 11,373,895 – – 9,400,815 11,373,895
Total OPEB liability 1,983,168 978,346 – – 1,983,168 978,346
Total 90,116,089$ 100,429,880$ 2,617,631$ 2,619,688$ 92,733,720$ 103,049,568$
TotalGovernmental Activities Business-Type Activities
-15-
In 2018, the City sold the following bond issue:
$2,950,000 G.O. Improvement Bonds, Series 2018A – The proceeds of this issue are being used to
finance the City’s annual pavement program, and will be repaid from a combination of special
assessments and property taxes.
In addition to regularly scheduled bond principal and interest payments, the City re deemed $6,345,000 of
its 2008A Improvement Bonds during the year through a crossover refunding.
Additional details of long-term liabilities activity for the year can be found in Note 5 of the notes to basic
financial statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
Economic factors affect the preparation of annual budgets . The following factors were considered in
preparing the 2019 budget:
• The City’s 2019 budgeted tax levy went up by 5.8 percent from 2018. The City strives for a
balanced budget with revenues equal to expenditures.
• The City will maintain fund balance for working capital in the General Fund at 60.0 percent of
the current year’s adopted expenditures.
REQUESTS FOR INFORMATION
Questions concerning any of the information provided in this report or requests for additional
information should be addressed by writing to the City of Golden Valley, Attention: Finance Director,
7800 Golden Valley Road, Golden Valley, Minnesota 55427 or by calling (763) 593-8010.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
Governmental Business-Type
Activities Activities Total
Assets
Cash and temporary investments 49,055,368$ 20,416,099$ 69,471,467$
Delinquent taxes receivable 156,092 – 156,092
Special assessments receivable (net of allowance)2,922,137 360,142 3,282,279
Accounts and interest receivable 925,353 2,035,867 2,961,220
Due from other governmental units 761,302 153,854 915,156
Internal balances 1,451,191 (1,451,191) –
Inventory 84,563 27,561 112,124
Restricted assets – temporarily restricted
Cash and temporary investments 4,248,908 – 4,248,908
Interest receivable 24,360 – 24,360
Net pension asset – fire relief 2,180,799 – 2,180,799
Capital assets
Not depreciated 20,220,324 4,575,538 24,795,862
Depreciated, net of accumulated depreciation 78,884,289 34,992,611 113,876,900
Total assets 160,914,686 61,110,481 222,025,167
Deferred outflows of resources
Pension plan deferments – PERA 5,805,936 – 5,805,936
Pension plan deferments – fire relief 329,035 – 329,035
OPEB plan deferments 107,353 – 107,353
Total deferred outflows of resources 6,242,324 – 6,242,324
Total assets and deferred outflows of resources 167,157,010$ 61,110,481$ 228,267,491$
Liabilities
Accounts and contracts payable 676,014$ 941,612$ 1,617,626$
Accrued interest payable 845,691 26,460 872,151
Accrued salaries and employee benefits 470,419 – 470,419
Due to other governmental units 336,030 290,080 626,110
Deposits 2,542,821 594,231 3,137,052
Unearned revenue 48,399 – 48,399
Long-term liabilities
Due within one year 11,043,639 – 11,043,639
Due in more than one year 79,072,450 2,617,631 81,690,081
Total liabilities 95,035,463 4,470,014 99,505,477
Deferred inflows of resources
Pension plan deferments – PERA 8,229,401 – 8,229,401
Pension plan deferments – fire relief 501,695 – 501,695
Total deferred inflows of resources 8,731,096 – 8,731,096
Net position
Net investment in capital assets 27,973,471 36,950,518 64,923,989
Restricted for
Debt service 13,718,665 – 13,718,665
Redevelopment 332,288 – 332,288
Capital improvements 8,102,592 – 8,102,592
Fire relief pensions 2,008,139 – 2,008,139
Other purposes 239,981 – 239,981
Unrestricted 11,015,315 19,689,949 30,705,264
Total net position 63,390,451 56,640,467 120,030,918
Total liabilities, deferred inflows of resources, and net position 167,157,010$ 61,110,481$ 228,267,491$
CITY OF GOLDEN VALLEY
Statement of Net Position
December 31, 2018
See notes to basic financial statements -16-
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Governmental activities
General government 3,633,644$ 267,543$ 72,669$ –$
Public safety 7,979,009 2,132,083 612,898 –
Physical development 12,019,371 663,328 575,868 3,140,938
Parks and recreation 2,710,862 981,624 – –
Interest and fiscal charges 1,947,173 – – –
Total governmental activities 28,290,059 4,044,578 1,261,435 3,140,938
Business-type activities
Water and sewer 9,374,281 10,482,578 – –
Storm sewer 1,861,392 2,446,828 329,500 398,387
Golf course 3,235,267 2,956,984 5,882 –
Motor vehicle licensing 399,060 435,698 68 –
Recycling 408,286 391,131 59,684 –
Total business-type activities 15,278,286 16,713,219 395,134 398,387
Total governmental and
business-type activities 43,568,345$ 20,757,797$ 1,656,569$ 3,539,325$
General revenues
Property taxes
Franchise taxes
Other general revenues
Investment earnings
Gain on sale of capital assets
Transfers – internal activities
Transfers – capital assets
Total general revenues and transfers
Change in net position
Net position – beginning, as previously reported
Change in accounting principle
Net position – beginning, as restated
Net position – ending
Program Revenues
CITY OF GOLDEN VALLEY
Statement of Activities
Year Ended December 31, 2018
See notes to basic financial statements -17-
Governmental Business-Type
Activities Activities Total
(3,293,432)$ –$ (3,293,432)$
(5,234,028) – (5,234,028)
(7,639,237) – (7,639,237)
(1,729,238) – (1,729,238)
(1,947,173) – (1,947,173)
(19,843,108) – (19,843,108)
– 1,108,297 1,108,297
– 1,313,323 1,313,323
– (272,401) (272,401)
– 36,706 36,706
– 42,529 42,529
– 2,228,454 2,228,454
(19,843,108) 2,228,454 (17,614,654)
22,825,055 – 22,825,055
836,780 1,000,000 1,836,780
264,266 – 264,266
788,823 339,634 1,128,457
80,997 – 80,997
(1,155,915) 1,155,915 –
6,060 (6,060) –
23,646,066 2,489,489 26,135,555
3,802,958 4,717,943 8,520,901
60,337,013 51,922,524 112,259,537
(749,520) – (749,520)
59,587,493 51,922,524 111,510,017
63,390,451$ 56,640,467$ 120,030,918$
Revenue and Changes in Net Position
Net (Expenses)
-18-
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FUND FINANCIAL STATEMENTS
THIS PAGE INTENTIONALLY LEFT BLANK
Winnetka/
Street Medicine Lake
Reconstruction Tax Increment
General Debt Service Capital Project
Assets
Cash and temporary investments 13,594,193$ 8,276,881$ 133,100$
Cash held with trustee – 4,248,908 –
Receivables
Delinquent taxes 156,092 – –
Special assessments 10,440 2,232,362 –
Accounts 38,631 – –
Accrued interest 202,954 24,360 –
Due from other funds 161,413 – –
Advances to other funds – – –
Due from other governmental units 502,338 – –
Total assets 14,666,061$ 14,782,511$ 133,100$
Liabilities
Accounts payable 174,314$ –$ –$
Contracts payable – – –
Accrued salaries payable 470,419 – –
Due to other governmental units 61,255 – –
Deposits 734,039 8,300 –
Due to other funds – – 503,961
Advances from other funds – – 1,794,001
Unearned revenue – – –
Total liabilities 1,440,027 8,300 2,297,962
Deferred inflows of resources
Unavailable revenue – property taxes 156,092 – –
Unavailable revenue – special assessments 10,440 2,232,362 –
Total deferred inflows of resources 166,532 2,232,362 –
Fund balances (deficits)
Restricted – 12,541,849 –
Committed – – –
Assigned 2,045,000 – –
Unassigned 11,014,502 – (2,164,862)
Total fund balances (deficits)13,059,502 12,541,849 (2,164,862)
Total liabilities, deferred inflows of
resources, and fund balances 14,666,061$ 14,782,511$ 133,100$
CITY OF GOLDEN VALLEY
Balance Sheet
Governmental Funds
December 31, 2018
See notes to basic financial statements -19-
Capital Douglas Drive
Improvement Improvement
Capital Project Capital Project Nonmajor Totals
3,917,033$ 2,101,630$ 18,571,553$ 46,594,390$
– – – 4,248,908
– – – 156,092
– – 679,335 2,922,137
– – 676,760 715,391
– – – 227,314
185,460 – 223,966 570,839
1,080,000 – – 1,080,000
– – 258,964 761,302
5,182,493$ 2,101,630$ 20,410,578$ 57,276,373$
26,700$ –$ 90,062$ 291,076$
– 38,736 326,815 365,551
– – – 470,419
24 271,021 3,608 335,908
1,199,585 – 591,465 2,533,389
– – 252,278 756,239
– – – 1,794,001
– – 48,399 48,399
1,226,309 309,757 1,312,627 6,594,982
– – – 156,092
– – 679,335 2,922,137
– – 679,335 3,078,229
– 1,738,480 12,031,015 26,311,344
– – 213,624 213,624
3,956,184 53,393 6,173,977 12,228,554
– – – 8,849,640
3,956,184 1,791,873 18,418,616 47,603,162
5,182,493$ 2,101,630$ 20,410,578$ 57,276,373$
-20-
THIS PAGE INTENTIONALLY LEFT BLANK
Total fund balances – governmental funds 47,603,162$
Capital assets used in governmental activities are not financial resources and,therefore,are not
reported as assets in governmental funds.
Cost of capital assets 192,332,003
Less accumulated depreciation (93,316,543)
Long-term liabilities,including bonds and certifications of indebtedness payable,are not due or
payable in the current period and,therefore,are not reported as liabilities in governmental funds.
Long-term liabilities at year-end consist of:
Bonds and certificates of indebtedness payable (75,030,000)
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.3,078,229
Accrued interest payable is included in net position,but is excluded from fund balances until due
and payable.(845,691)
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 (10,696,335)
Add internal service balances allocated to business-type activities 2,350,592
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.(2,084,966)
Total net position – governmental activities 63,390,451$
Amounts reported for governmental activities in the Statement of Net Position are different because:
December 31, 2018
CITY OF GOLDEN VALLEY
Reconciliation of the Balance Sheet to the
Statement of Net Position
Governmental Funds
See notes to basic financial statements -21-
Winnetka/
Street Medicine Lake
Reconstruction Tax Increment
General Debt Service Capital Project
Revenue
Ad valorem taxes 17,181,437$ 3,773,982$ –$
Tax increments – – 266,201
Special assessments 6,156 671,875 –
Franchise taxes – – –
Licenses and permits 1,778,321 – –
Intergovernmental revenue 109,935 – –
Charges for services 1,621,319 – –
Fines and forfeits 379,708 – –
Investment income 180,776 164,184 –
Other revenue 246,478 – –
Total revenue 21,504,130 4,610,041 266,201
Expenditures
Current
General government 1,274,302 – –
Administrative services 1,963,163 – –
Casualty insurance 318,934 – –
Public safety 6,989,839 – –
Physical development 5,738,929 – –
Parks and recreation 1,096,137 – –
Capital outlay – – 133,101
Debt service
Principal – 3,770,000 –
Interest and fiscal charges – 1,488,856 48,750
Total expenditures 17,381,304 5,258,856 181,851
Excess (deficiency) of revenue over expenditures 4,122,826 (648,815) 84,350
Other financing sources (uses)
Sale of capital assets – – –
Bonds issued – 52,405 –
Premiums on bonds issued – 31,117 –
Paid to refunded bond escrow agent – (6,345,000) –
Transfers in 30,000 – –
Transfers (out)(3,497,173) – (1,182,565)
Total other financing sources (uses)(3,467,173) (6,261,478) (1,182,565)
Net change in fund balances 655,653 (6,910,293) (1,098,215)
Fund balances (deficits)
Beginning of year 12,403,849 19,452,142 (1,066,647)
End of year 13,059,502$ 12,541,849$ (2,164,862)$
CITY OF GOLDEN VALLEY
Statement of Revenue, Expenditures, and Changes in Fund Balances
Governmental Funds
Year Ended December 31, 2018
See notes to basic financial statements -22-
Capital Douglas Drive
Improvement Improvement
Capital Project Capital Project Nonmajor Totals
1,742$ –$ 1,218,300$ 22,175,461$
– – 380,304 646,505
– – 372,018 1,050,049
110,000 – 726,780 836,780
– – – 1,778,321
52,500 575,868 2,293,780 3,032,083
54,889 – 394,069 2,070,277
– – – 379,708
90,617 24,365 292,304 752,246
4,297 – 632,674 883,449
314,045 600,233 6,310,229 33,604,879
– – 88,166 1,362,468
– – – 1,963,163
– – – 318,934
– – 58,998 7,048,837
– – – 5,738,929
– – 400,001 1,496,138
257,686 174,863 12,506,312 13,071,962
– – 1,945,000 5,715,000
– – 888,557 2,426,163
257,686 174,863 15,887,034 39,141,594
56,359 425,370 (9,576,805) (5,536,715)
– – 239,795 239,795
– – 2,897,595 2,950,000
– – – 31,117
– – – (6,345,000)
– – 5,246,409 5,276,409
– – (1,752,586) (6,432,324)
– – 6,631,213 (4,280,003)
56,359 425,370 (2,945,592) (9,816,718)
3,899,825 1,366,503 21,364,208 57,419,880
3,956,184$ 1,791,873$ 18,418,616$ 47,603,162$
-23-
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Total net change in fund balances – governmental funds (9,816,718)$
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 11,046,962
Depreciation expense (6,859,234)
Net capital assets transferred from enterprise funds 6,060
A gain or loss on the disposal or transfer of capital assets,including the difference between the
carrying value and any related sale proceeds,is included in the change in net position;however,
only the sale proceeds are included in the change in fund balances.
Net book value of capital asset disposals (158,798)
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.(2,950,000)
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.12,060,000
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.180,822
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.267,051
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.(240,351)
Internal service funds are used to charge the costs of employee benefits and vehicle maintenance to
individual funds.The net revenue/expense of certain activities of internal service funds is reported
with governmental activities in the Statement of Activities.
Internal service fund activity included in governmental activities 310,867
Add back internal service fund activity allocated to business-type activities (43,703)
Change in net position – governmental activities 3,802,958$
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, 2018
See notes to basic financial statements -24-
THIS PAGE INTENTIONALLY LEFT BLANK
Original Final Over (Under)
Budget Budget Actual Final Budget
Revenue
Ad valorem taxes 17,253,460$ 17,253,460$ 17,181,437$ (72,023)$
Special assessments 10,000 10,000 6,156 (3,844)
Licenses and permits 1,108,765 1,222,413 1,778,321 555,908
Intergovernmental revenue 52,375 52,375 109,935 57,560
Charges for services 1,456,800 1,456,800 1,621,319 164,519
Fines and forfeits 320,000 320,000 379,708 59,708
Investment income 75,000 75,000 180,776 105,776
Other revenue 183,000 183,000 246,478 63,478
Total revenue 20,459,400 20,573,048 21,504,130 931,082
Expenditures
Current
General government 1,322,445 1,419,690 1,274,302 (145,388)
Administrative services 1,986,970 1,986,970 1,963,163 (23,807)
Casualty insurance 310,000 310,000 318,934 8,934
Public safety 7,700,725 7,765,725 6,989,839 (775,886)
Physical development 6,004,085 6,046,085 5,738,929 (307,156)
Parks and recreation 1,182,595 1,182,595 1,096,137 (86,458)
Total expenditures 18,506,820 18,711,065 17,381,304 (1,329,761)
Excess of revenue over expenditures 1,952,580 1,861,983 4,122,826 2,260,843
Other financing sources (uses)
Transfers in 30,000 30,000 30,000 –
Transfers (out)(1,982,580) (2,002,673) (3,497,173) (1,494,500)
Total other financing sources (uses)(1,952,580) (1,972,673) (3,467,173) (1,494,500)
Net change in fund balances –$ (110,690)$ 655,653 766,343$
Fund balances
Beginning of year 12,403,849
End of year 13,059,502$
CITY OF GOLDEN VALLEY
Statement of Revenue, Expenditures, and Changes in Fund Balances
General Fund – Budget and Actual
Year Ended December 31, 2018
See notes to basic financial statements -25-
Storm Sewer Brookview Motor Vehicle
Utility Utility Operating Operating
Assets
Current assets
Cash and temporary investments 10,009,660$ 7,803,352$ 731,878$ 614,604$
Receivables
Special assessments 406,683 – – –
Accounts 1,938,611 – 6,486 90,770
Allowance for uncollectibles (46,541) – – –
Due from other governmental units – 153,854 – –
Due from other funds – 547,332 – –
Inventory 16,645 – 10,916 –
Total current assets 12,325,058 8,504,538 749,280 705,374
Noncurrent assets
Advances to other funds – 2,654,001 – –
Net pension asset – fire relief – – – –
Capital assets
Land – – 857,044 –
Land improvements 30,054 – 3,131,105 –
Buildings and improvements 602,827 – 205,798 –
Machinery and equipment 2,467,783 1,025,235 1,255,605 26,934
Infrastructure – distribution and
collection systems 23,648,998 26,639,410 – –
Construction in progress 884,488 2,834,006 – –
Total capital assets 27,634,150 30,498,651 5,449,552 26,934
Less accumulated depreciation (12,761,088) (7,448,864) (3,814,173) (17,013)
Capital assets, net 14,873,062 23,049,787 1,635,379 9,921
Total noncurrent assets 14,873,062 25,703,788 1,635,379 9,921
Total assets 27,198,120 34,208,326 2,384,659 715,295
Deferred outflows of resources
Pension plan deferments – PERA – – – –
Pension plan deferments – fire relief – – – –
OPEB plan deferments – – – –
Total deferred outflows
of resources – – – –
Total assets and deferred
outflows of resources 27,198,120$ 34,208,326$ 2,384,659$ 715,295$
Business-Type Activities – Enterprise Funds
CITY OF GOLDEN VALLEY
Statement of Net Position
Proprietary Funds
December 31, 2018
See notes to basic financial statements -26-
Governmental
Activities
Recycling Totals Internal Service
1,256,605$ 20,416,099$ 2,460,978$
– 406,683 –
– 2,035,867 7,008
– (46,541) –
– 153,854 –
– 547,332 –
– 27,561 84,563
1,256,605 23,540,855 2,552,549
– 2,654,001 –
– – 2,180,799
– 857,044 –
– 3,161,159 –
– 808,625 –
– 4,775,557 259,406
– 50,288,408 –
– 3,718,494 –
– 63,609,287 259,406
– (24,041,138) (170,253)
– 39,568,149 89,153
– 42,222,150 2,269,952
1,256,605 65,763,005 4,822,501
– – 5,805,936
– – 329,035
– – 107,353
– – 6,242,324
1,256,605$ 65,763,005$ 11,064,825$
-27-(continued)
Storm Sewer Brookview Motor Vehicle
Utility Utility Operating Operating
Liabilities
Current liabilities
Accounts payable 264,272$ 45,934$ 94,618$ 35$
Contracts payable 242,298 264,081 – –
Accrued interest payable – 26,460 – –
Accrued compensated absences –
current – – – –
Due to other governmental units 282,373 – 7,707 –
Due to other funds 361,932 – – –
Deposits 85,842 507,421 968 –
Total current liabilities 1,236,717 843,896 103,293 35
Noncurrent liabilities
Advances from other funds 1,940,000 – – –
Accrued compensated absences – – – –
Net pension liability – PERA – – – –
Total OPEB liability – – – –
Bonds payable – long-term – 2,617,631 – –
Total noncurrent liabilities 1,940,000 2,617,631 – –
Total liabilities 3,176,717 3,461,527 103,293 35
Deferred inflows of resources
Pension plan deferments – PERA – – – –
Pension plan deferments – fire relief – – – –
Total deferred inflows
of resources – – – –
Net position
Net investment in capital assets 14,873,062 20,432,156 1,635,379 9,921
Restricted for fire relief pensions – – – –
Unrestricted 9,148,341 10,314,643 645,987 705,339
Total net position 24,021,403 30,746,799 2,281,366 715,260
Total liabilities, deferred inflows
of resources, and net position 27,198,120$ 34,208,326$ 2,384,659$ 715,295$
Total net position – enterprise funds
Adjustment to reflect the consolidation of internal service fund
activity related to enterprise funds
Net position – business-type activities
CITY OF GOLDEN VALLEY
Statement of Net Position (continued)
Proprietary Funds
December 31, 2018
Business-Type Activities – Enterprise Funds
See notes to basic financial statements -28-
Governmental
Activities
Recycling Totals Internal Service
30,374$ 435,233$ 19,387$
– 506,379 –
– 26,460 –
– – 1,153,639
– 290,080 122
– 361,932 –
– 594,231 9,432
30,374 2,214,315 1,182,580
– 1,940,000 –
– – 463,501
– – 9,400,815
– – 1,983,168
– 2,617,631 –
– 4,557,631 11,847,484
30,374 6,771,946 13,030,064
– – 8,229,401
– – 501,695
– – 8,731,096
– 36,950,518 89,153
– –2,008,139
1,226,231 22,040,541 (12,793,627)
1,226,231 58,991,059 (10,696,335)
1,256,605$ 65,763,005$ 11,064,825$
58,991,059$
(2,350,592)
56,640,467$
-29-
Storm Sewer Brookview Motor Vehicle
Utility Utility Operating Operating
Operating revenue
Charges for services 10,447,566$ 2,446,828$ 1,204,114$ 435,698$
Sales and rentals 35,012 – 1,752,870 –
Total operating revenue 10,482,578 2,446,828 2,956,984 435,698
Operating expenses
Enterprise operations 8,498,918 936,403 3,230,939 401,117
Other services – – – –
Depreciation 852,713 867,103 118,509 2,532
Total operating expenses 9,351,631 1,803,506 3,349,448 403,649
Operating income (loss)1,130,947 643,322 (392,464) 32,049
Nonoperating revenue (expense)
Franchise taxes 1,000,000 – – –
Intergovernmental revenue – 329,500 – –
Investment income 125,362 176,287 11,179 8,778
Other income – – 5,882 68
Gain (loss) on sale of capital assets 28,345 (528) 95,826 –
Capital contribution to governmental activities – (8,892) – –
Interest expense (67,219) (61,893) – –
Total nonoperating revenue (expense)1,086,488 434,474 112,887 8,846
Income (loss) before capital
contributions and transfers 2,217,435 1,077,796 (279,577) 40,895
Capital contributions 2,832 398,387 – –
Transfers in – 1,182,565 3,350 –
Transfers (out)– – – (30,000)
Change in net position 2,220,267 2,658,748 (276,227) 10,895
Net position
Beginning of year, as previously reported 21,801,136 28,088,051 2,557,593 704,365
Change in accounting principle – – – –
Beginning of year, as restated 21,801,136 28,088,051 2,557,593 704,365
End of year 24,021,403$ 30,746,799$ 2,281,366$ 715,260$
Change in net position – enterprise funds
Adjustment to reflect the consolidation of internal
service fund activities related to the enterprise funds
Change in net position – business-type activities
Business-Type Activities – Enterprise Funds
CITY OF GOLDEN VALLEY
Statement of Revenue, Expenses, and Changes in Net Position
Proprietary Funds
Year Ended December 31, 2018
See notes to basic financial statements -30-
Governmental
Activities
Recycling Totals Internal Service
391,131$ 14,925,337$ 8,052,823$
– 1,787,882 –
391,131 16,713,219 8,052,823
408,286 13,475,663 –
– – 8,292,674
– 1,840,857 25,751
408,286 15,316,520 8,318,425
(17,155) 1,396,699 (265,602)
– 1,000,000 –
49,522 379,022 521,576
18,028 339,634 36,577
10,162 16,112 18,316
– 123,643 –
– (8,892) –
– (129,112) –
77,712 1,720,407 576,469
60,557 3,117,106 310,867
– 401,219 –
– 1,185,915 –
– (30,000) –
60,557 4,674,240 310,867
1,165,674 54,316,819 (10,257,682)
– – (749,520)
1,165,674 54,316,819 (11,007,202)
1,226,231$ 58,991,059$ (10,696,335)$
4,674,240$
43,703
4,717,943$
-31-
Storm Sewer Brookview Motor Vehicle
Utility Utility Operating Operating
Cash flows from operating activities
Receipts from customers and users 10,664,848$ 3,356,790$ 2,961,204$ 344,996$
Receipts from interfund services provided – – – –
Paid to suppliers/service providers (6,622,340) (2,244,067) (1,404,199) (39,253)
Paid to employees (1,182,420) (321,939) (1,743,646) (331,894)
Payments for interfund services (275,000) (200,000) (85,000) (30,000)
Net cash flows from
operating activities 2,585,088 590,784 (271,641) (56,151)
Cash flows from capital and related
financing activities
Acquisition of capital assets (1,524,885) (1,293,128) (130,444) –
Capital grants – 398,387 – –
Advances to other funds – (1,098,005) – –
Repayment of advances (352,000) 172,000 – –
Interest (paid) received on advances (68,744) 79,308 – –
Transfers in for capital purposes – 1,182,565 3,350 –
Proceeds from sale of capital assets 30,373 1,500 99,109 –
Interest paid on capital debt – (63,950) – –
Net cash flows from capital and
related financing activities (1,915,256) (621,323) (27,985) –
Cash flows from investing activities
Interest received on investments 125,362 96,979 11,179 8,778
Cash flows from noncapital financing activities
Operating grants – 329,500 – –
Franchise taxes 1,000,000 – – –
Transfers (out)– – – (30,000)
Net cash flows from noncapital
financing activities 1,000,000 329,500 – (30,000)
Net increase (decrease) in cash and
temporary investments/cash equivalents 1,795,194 395,940 (288,447) (77,373)
Cash and temporary investments/cash equivalents
Beginning of year 8,214,466 7,407,412 1,020,325 691,977
End of year 10,009,660$ 7,803,352$ 731,878$ 614,604$
CITY OF GOLDEN VALLEY
Business-Type Activities – Enterprise Funds
Year Ended December 31, 2018
Proprietary Funds
Statement of Cash Flows
See notes to basic financial statements -32-
Governmental
Activities
Recycling Totals Internal Service
403,781$ 17,731,619$ 1,389,314$
– – 6,681,562
(367,483) (10,677,342) (5,982,371)
– (3,579,899) (2,548,900)
(51,500) (641,500) –
(15,202) 2,832,878 (460,395)
– (2,948,457) –
– 398,387 –
– (1,098,005) –
– (180,000) –
– 10,564 –
– 1,185,915 –
– 130,982 –
– (63,950) –
– (2,564,564) –
18,028 260,326 36,577
49,522 379,022 521,576
– 1,000,000 –
– (30,000) –
49,522 1,349,022 521,576
52,348 1,877,662 97,758
1,204,257 18,538,437 2,363,220
1,256,605$ 20,416,099$ 2,460,978$
-33-(continued)
Storm Sewer Brookview Motor Vehicle
Utility Utility Operating Operating
Reconciliation of operating income (loss) to net
cash flows from operating activities
Operating income (loss)1,130,947$ 643,322$ (392,464)$ 32,049$
Adjustments to reconcile operating income
(loss) to net cash flows from operating activities
Depreciation 852,713 867,103 118,509 2,532
Other income – – 5,882 68
Changes in assets, liabilities, and deferred
outflows/inflows
Special assessments receivable 17,125 – – –
Accounts receivable 59,584 334,783 (2,036) (90,770)
Due from other governmental units 105,561 575,179 374 –
Inventory 5,391 – 924 –
Prepaid items 183,698 390 105 –
Net pension asset – fire relief – – – –
Deferred outflows – pension and OPEB plans – – – –
Accounts payable 200,637 36,398 (17,393) (30)
Contracts payable 225,936 (168,376) 10,696 –
Due to other governmental units (216,111) (16,202) 3,762 –
Deposits 19,607 (1,681,813) – –
Accrued compensated absences – – – –
Net pension liability – PERA – – – –
Total OPEB liability – – – –
Deferred inflows – pension and OPEB plans – – – –
Net cash flows from operating activities 2,585,088$ 590,784$ (271,641)$ (56,151)$
Schedule of noncash capital and related
financing activities
Net book value of capital asset disposals 2,028$ 2,028$ 3,283$ –$
Capital assets contributed from governmental funds 2,832$ –$ –$ –$
Capital assets contributed to governmental funds –$ 8,892$ –$ –$
Business-Type Activities – Enterprise Funds
CITY OF GOLDEN VALLEY
Statement of Cash Flows (continued)
Proprietary Funds
Year Ended December 31, 2018
See notes to basic financial statements -34-
Governmental
Activities
Recycling Totals Internal Service
(17,155)$ 1,396,699$ (265,602)$
– 1,840,857 25,751
10,162 16,112 18,316
– 17,125 –
– 301,561 (263)
2,488 683,602 –
– 6,315 (1,977)
– 184,193 –
– – (563,862)
– – 2,204,946
5,181 224,793 (24,520)
– 68,256 –
(15,878) (244,429) 65
– (1,662,206) 1,160
– –31,518
– –(1,973,080)
– –183,065
– –(95,912)
(15,202)$ 2,832,878$ (460,395)$
–$ 7,339$ –$
–$ 2,832$ –$
–$ 8,892$ –$
-35-
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF GOLDEN VALLEY
Notes to Basic Financial Statements
December 31, 2018
-36-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES
A.Organization
The City of Golden Valley, Minnesota (the City) operates under “Optional Plan B” as defined in
Minnesota Statutes, Chapter 412. Under this plan, the government of the City is run by a council
composed of an elected mayor and four councilmembers. The City Council exercises legislative authority
and determines all matters of policy. The city manager, who is appointed by the City Council, is
responsible for the proper administration of all affairs relating to the City.
The accounting policies of the City conform to accounting principles generally accepted in the United
States of America as applicable to governmental units.
B.Reporting Entity
As required by accounting principles generally accepted in the United States of America, these financial
statements include the City (the primary government) and its component units. Component units are
legally separate entities for which the primary government is financially accountable, or for which the
exclusion of the component unit would render the financial statements of the primary government
misleading. The criteria used to determine if the primary government is financially accountable for a
component unit includes whether or not the primary government appoints the voting majority of the
potential component unit’s board, is able to impose its will on the potential component unit, is in a
relationship of financial benefit or burden with the potential component unit, or is fiscally depended upon
by the potential component unit.
As a result of applying these criteria, certain organizations have been included or disclosed in this report
as follows:
1.Blended Component Unit – The Golden Valley Housing and Redevelopment Authority (HRA)
is a legally separate organization created in accordance with Minnesota Statute s § 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 2018
fiscal year, the City paid LOGIS $541,979 for services provided.
-37-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Government-Wide Financial Statements
The government-wide financial statements (Statement of Net Position and Statement of Activities)
display information about the reporting government as a whole. These statements include all of the
financial activities of the City. Governmental activities, which are normally supported by taxes and
intergovernmental revenues, are reported separately from business-type activities, which significantly rely
upon sales, fees, and charges for support.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include: 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided b y 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 coll ected
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 consol idated 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.
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.
Winnetka/Medicine Lake Tax Increment Capital Project Fund – This fund is used to account for
the activity of the City’s Winnetka/Medicine Lake Tax Increment District No. 1508.
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.
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.
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NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Motor Vehicle Operating Fund – This fund is used to account for the operation and maintenance of
the City’s Deputy Registrar function.
Recycling Fund – This fund is used to account for the operation of the City’s recycling, spring brush
pickup, and fall leaf drop-off programs.
The City also reports the following fund type:
Internal Service Funds – These funds are used to account for the City’s vehicle maintenance
operation, workers’ compensation insurance, and payroll benefits. Internal service funds operate in a
manner similar to enterprise funds; however, they provide services primarily to other departments
within the City.
E. Budgets and Budgetary Accounting
Each fall, following a truth in taxation public hearing, the City Council adopts a General Fund budget for
the following fiscal year beginning January 1. The budget is prepared on a modified accrual basis of
accounting. The City has established budgetary control at the division level. City management may
transfer appropriations within divisions, but need 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. In 2018, expenditures in the casualty insurance division exceeded budget by $8,934.
F. Cash, Cash Equivalents, and Investments
Cash balances from all funds are combined and invested to the extent available in short-term investments.
Earnings from the pooled investments are allocated to the individual funds based on the average monthly
cash and investment balances of the respective funds.
Certain bond proceeds are held by trustees for future bond refunding or capital projects. Earnings on these
accounts are allocated directly to the respective funds. The investments and accrued interest related to
these accounts are reported as restricted assets in the government -wide financial statements.
For purposes of the Statement of Cash Flows, the City considers all highly liquid debt instruments with an
original maturity from the time of purchase of three months or less to be cash equivalents. The proprietary
funds’ portion of the government-wide cash and investment pool is considered to be cash equivalent.
The City generally reports investments at fair value other than for certain investment pools that are valued
at amortized cost.
The City categorizes its fair value measurements within the fair value hierarchy establ ished by accounting
principles generally accepted in the United States of America. The hierarchy is based on the valuation
inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for
identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant
unobservable inputs. Debt securities classified in Level 2 of the fair value hierarchy are valued using a
matrix pricing technique. Matrix pricing is used to value securities based on the securities ’ relationship to
benchmark quoted prices.
See Note 2 for the City’s recurring fair value measurements as of the current year-end.
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NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
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 inflo w of
resources in the governmental fund financial statements.
Special assessments receivable at December 31, 2018 consist of the following:
Enterprise
Funds
Street
Reconstruction
General Debt Service Nonmajor Totals Utility
Special assessments receivable
Delinquent 4,285$ 13,109$ –$ 17,394$ 46,541$
Deferred 6,155 2,219,253 679,335 2,904,743 360,142
Total 10,440 2,232,362 679,335 2,922,137 406,683
Allowance for uncollectible – – – – (46,541)
Net of allowance 10,440$ 2,232,362$ 679,335$ 2,922,137$ 360,142$
Governmental Funds
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NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
J. Interfund Receivables and Payables
In the fund financial statements, activity between funds that is representative of lending or borrowing
arrangements is reported as either “due to/from other funds” (current portion) or “advances to/from other
funds.” All other outstanding balances between funds are reported as “due to/from other funds.” Any
residual balances outstanding between the governmental activities and business -type activities are
reported in the government-wide financial statements as “internal balances.”
K. Inventories
Proprietary fund inventories are stated at cost (for supplies) or the lower of cost or market (for resale
merchandise) on the first-in, first-out basis. 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.
L. Capital Assets
Capital assets, which include property, buildings, improvements, equipment, and infrastructure assets
(roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business-type
activities columns in the government -wide financial statements. Such assets are capitalized at historical
cost, or estimated historical cost for assets where actual historical cost is not available. Donated assets are
recorded as capital assets at their estimated acquisition value on the date of donation. The City defines
capital assets as those with an initial, individual cost of $5,000 or more with an estimated useful life in
excess of one year. The cost of normal maintenance and repairs that do not add to the value of the asset or
materially extend asset lives are not capitalized.
Capital assets are recorded in the government-wide and proprietary fund financial statements, but are not
reported in the governmental fund financial statements. 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.
M. Deferred Outflows/Inflows of Resources
In addition to assets and liabilities, statements of financial position or balance sheets will sometimes
report deferred outflows or inflows of resources. These separate financial statement elements represent a
consumption or acquisition of net position that applies to a future period and so will not be recognized as
an outflow of resources (expense/expenditure) or an inflow of financial resources (revenue) until then.
Unavailable revenue arises only under a modified accrual basis of accounting and, therefore, is only
reported in the governmental funds financial statements. The governmental funds report unava ilable
revenue from two sources: property taxes and special assessments. These amounts are deferred and
recognized as inflows of resources in the period they become available.
Deferred outflows and inflows of resources related to pensions or other post -employment benefits
(OPEB) are reported in the government-wide and proprietary fund Statements of Net Position. These
deferred outflows and inflows result from differences between expected and actual experience, changes in
proportion, assumption changes, differences between projected and actual earnings on plan investments,
and contributions to the plan subsequent to the measurement date and before the end of the reporting
period. These amounts are deferred and amortized as required under pension or OPEB standards.
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NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
N. Long-Term Liabilities
In the government-wide and proprietary fund financial statements, long-term debt and other long-term
obligations are reported as liabilities. Bond premiums and discounts are deferred and amortized over the
life of the bonds using the straight-line method.
In the fund financial statements, governmental fund types recognize bond premiums and discounts during
the current period. The face amount of debt issued is reported as other financing sources. Premiums or
discounts on debt issuances are reported as other financing sources or uses, respectively.
O. 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.
P. Pensions
For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension
expense, information about the fiduciary net position of the Public Employees Retirement Association
(PERA) and additions to/deductions from the PERA’s fiduciary net position have been determined on the
same basis as they are reported by the PERA except that the PERA’s fiscal year-end is June 30. For this
purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and
refunds are recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value.
The PERA has a special funding situation created by a direct aid contribution made by the state of
Minnesota. The direct aid is a result of the merger of the Minneapolis Employees Retirement Fund into
the PERA on January 1, 2015.
Q. 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 b e
self-sustaining through member premiums and will reinsure through commercial companies for claims in
excess of certain limits. The City also carries commercial insurance for certain other risks of loss. Settled
claims resulting from these risks did not exceed insurance coverage in any of the last three fiscal years.
There were no significant reductions in insurance coverage in the current year.
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NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
R. Fund Balance Classifications
In the fund financial statements, governmental funds report fund balance in classifications that disclose
constraints for which amounts in those funds can be spent. These classifications are as follows:
• Nonspendable – Consists of amounts that are not in spendable form, such as prepaid items,
inventory, and other long-term assets.
• Restricted – Consists of amounts related to externally imposed constraints established by
creditors, grantors, or contributors; or constraints imposed by state statutory provisions.
• Committed – Consists of internally imposed constraints 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.
S. 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)
T. Use of Estimates
The preparation of financial statements, in conformity with accounting principles generally accepted in
the United States of America, requires management to make estimates and assumptions that affect the
amounts reported at the date of the financial statements during the reporting period. Actual results could
differ from those estimates.
U. Change in Accounting Principle
During the year ended December 31, 2018, the City implemented GASB Statement No. 75, Accounting
and Financial Reporting for Postemployment Benefits Other Than Pensions. This statement included
major changes in how plans and employers account for OPEB benefit obligations. This statement
established standards for recognizing and measuring liabilities, deferred outflows of resources, deferred
inflows of resources, and expense/expenditures. Certain amounts necessary to fully restate fiscal year
2017 financial information are not determinable; therefore, prior year comparative amounts have not been
restated. The implementation of new GASB statement in the current year resulte d in the restatement of
net position as of December 31, 2017. The details of the restatement are as follows:
Government-Wide Proprietary Fund
Financial Statements Financial Statements
Governmental Internal Service
Activities Funds
Net position – beginning, as previously reported 60,337,013$ (10,257,682)$
Change in accounting principle
OPEB obligation, previous reporting standards 978,346 978,346
Total OPEB liability, current reporting standards (1,800,103) (1,800,103)
Deferred outflows of resources, current reporting standards 72,237 72,237
Total (749,520) (749,520)
Net position – beginning, as restated 59,587,493$ (11,007,202)$
NOTE 2 – CASH AND INVESTMENTS
A. Components of Cash and Investments
Cash and investments at year-end consist of the following:
Deposits 1,443,988$
Investments 72,270,822
Cash on hand 5,565
Total 73,720,375$
Cash and investments are presented in the financial statements as follows:
Government-Wide Statement of Net Position
Cash and temporary investments 69,471,467$
Restricted assets – cash and temporary investments 4,248,908
Total 73,720,375$
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NOTE 2 – CASH AND INVESTMENTS (CONTINUED)
B. Deposits
In accordance with applicable Minnesota Statutes, the City maintains deposits at depository banks
authorized by the City Council, including checking accounts and certificates of deposit.
The following is considered the most significant risk associated with deposits:
Custodial Credit Risk – In the case of deposits, this is the risk that in the event of a bank failure, the
City’s deposits may be lost.
Minnesota Statutes require that all deposits be protected by federal deposit insurance, corporate surety
bond, or collateral. The market value of collateral pledged must equal 110 percent of the deposits not
covered by federal deposit insurance or corporate surety bonds. Authorized collateral includes
treasury bills, notes, and bonds; issues of U.S. government agencies; general obligations rated “A” or
better; revenue obligations rated “AA” or better; irrevocable standard letters of credit issued by the
Federal Home Loan Bank; and certificates of deposit. Minnesota Statutes require that securities
pledged as collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or in
an account at a trust department of a commercial bank or other financial institution that is not owned
or controlled by the financial institution furnishing the collateral. The City has no additional deposit
policies addressing custodial credit risk.
At year-end, the carrying amount of the City’s deposits was $1,443,988, while the balance on the
bank records was $2,448,608. At December 31, 2018, all deposits were fully covered by federal
deposit insurance or collateral held by the City’s agent in the City’s name.
C. Investments
The City has the following investments at year-end:
Fair Value Concentration
Measurements Risk
Investment Type Rating Agency Using No Maturity Less Than 1 1 to 5 Total > 5 Percent
U.S. agency securities
FHLB AA S&P Level 2 –$ 991,250$ 8,322,387$ 9,313,637$ Yes
FHLMC AA S&P Level 2 – – 21,621,928 21,621,928 Yes
FNMA AA S&P Level 2 – 4,248,641 2,580,814 6,829,455 Yes
FFCB AA S&P Level 2 – 1,989,800 493,445 2,483,245 No
Local government bonds AAA S&P Level 2 – 1,092,361 999,570 2,091,931 No
Local government bonds AA S&P Level 2 – 1,494,590 1,996,760 3,491,350 No
Local government bonds AA Moody’s Level 2 – – 1,459,375 1,459,375 No
Local government bonds A Moody’s Level 2 – 1,992,460 – 1,992,460 No
Negotiable certificates of deposit Level 2 – 1,718,952 4,111,649 5,830,601 No
Investment pool/mutual funds
4M Fund Not Applicable 17,156,628 – – 17,156,628 N/A
First American Gov. Oblig.AAA S&P Level 2 179 – – 179 N/A
U.S. Gov’t. Money Market Fund AAA S&P NAV 33 – – 33 N/A
Total investments 17,156,840$ 13,528,054$ 41,585,928$ 72,270,822$
Not Rated
Credit Risk Maturity Duration in Years
Interest Risk –
Not Rated
The Minnesota Municipal Money Market (4M) Fund is 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. The City’s investment in this fund is measured using an
amortized cost method that approximates fair value. There are no restrictions or limitations on
withdrawals from the 4M Fund. The money market fund valued at net asset value (NAV) has no unfunded
commitments, no restrictions on withdrawals, and a daily redemption period.
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NOTE 2 – CASH AND INVESTMENTS (CONTINUED)
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.
Credit Risk – This is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. Minnesota Statutes limit the City’s investments to direct obligations or obligations
guaranteed by the United States or its agencies; shares of investment companies registered under the
Federal Investment Company Act of 1940 that receive the highest credit rating, are rated in one of the
two highest rating categories by a statistical rating agency, and all of the investments have a final
maturity of 13 months or less; general obligations rated “A” or better; revenue obligations rated “AA”
or better; general obligations of the Minnesota Housing Finance Agency rated “A” or better; bankers’
acceptances of United States banks eligible for purchase by the Federal Reserve System; commercial
paper issued by United States corporations or their Canadian subsidiaries, rated of the highest quality
category by at least two nationally recognized rating agencies, and maturing in 270 days or less;
Guaranteed Investment Contracts guaranteed by a United States commercial bank, domestic branch of
a foreign bank, or a United States insurance company, and with a credit quality in one of the top
two highest categories; repurchase or reverse purchase agreements and securities lending agreements
with financial institutions qualified as a “depository” by the government entity, with banks that are
members of the Federal Reserve System with capitalization exceeding $10,000,000; that are a
primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; or
certain Minnesota securities broker-dealers. The City’s investment policies do not further address
credit risk.
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NOTE 3 – INTERFUND BALANCES AND TRANSFERS
A. Interfund Balances
The City had the following interfund balances at year-end:
Receivable Fund Payable Fund Amount Reason
Due from/to other funds
General Winnetka/Medicine Lake
Tax Increment Capital Project 133,101$ Short-term cash flow
General Nonmajor governmental 28,312 Short-term cash flow
Nonmajor governmental Nonmajor governmental 223,966 Short-term cash flow
Storm Sewer Utility Enterprise Utility Enterprise 176,472 Current portion of advance (1)
Capital Improvement Capital Project Utility Enterprise 185,460 Current portion of advance (2)
Storm Sewer Utility Enterprise Winnetka/Medicine Lake
Tax Increment Capital Project 146,111 Current portion of advance (3)
Storm Sewer Utility Enterprise Winnetka/Medicine Lake
Tax Increment Capital Project 224,749 Current portion of advance (4)
1,118,171
Advances to/from other funds
Storm Sewer Utility Enterprise Utility Enterprise 860,000 Advance (1)
Capital Improvement Capital Project Utility Enterprise 1,080,000 Advance (2)
Storm Sewer Utility Enterprise Winnetka/Medicine Lake
Tax Increment Capital Project 960,000 Advance (3)
Storm Sewer Utility Enterprise Winnetka/Medicine Lake
Tax Increment Capital Project 834,001 Advance (4)
3,734,001
Total interfund balances reported on fund financial statements 4,852,172$
Net interfund balances between governmental and enterprise funds (899,401)$
Internal service funds activities related to business-type activities 2,350,592
Internal balances reported on government-wide financial statements 1,451,191$
B. Descriptions of Advances
1) In 2014, the Storm Sewer Utility Enterprise Fund advanced $1,720,000 to the Utility Enterprise
Fund to finance an emergency water supply project. The advance will be repaid through annual
payments due each October 31 from 2015 through 2024, consisting of $172,000 principal plus
interest on the outstanding balance at 2.6 percent. Interest for 2018 was $30,558.
2) In 2015, the Capital Improvement Capital Project Fund advanced $1,800,000 to the Utility
Enterprise Fund to finance an emergency pipe reconstruction project. The advance will be repaid
through annual payments due each October 31 from 2016 through 2025, consisting of $180,000
principal plus interest on the outstanding balance at 2.6 percent. Interest for 2018 was $36,659.
3) In 2016, the Storm Sewer Utility Enterprise Fund advanced $1,000,000 to the Winnetka/Medicine
Lake Tax Increment Capital Project Fund. The advance will be repaid through annual payments
due each February 1 from 2017 through 2036, consisting of principal at varying amounts plus
interest on the outstanding balance at 4.0 percent. Interest for 2018 was $40,000.
4) In 2018, the Storm Sewer Utility Enterprise Fund advanced $1,050,000 to the Winnetka/Medicine
Lake Tax Increment Capital Project Fund. The advance will be repaid through semiannual
payments due from February 1, 2019 through August 1, 2023, consisting of principal at varying
amounts plus interest on the outstanding balance at 4.0 percent. Interest for 2018 was $8,750.
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NOTE 3 – INTERFUND BALANCES AND TRANSFERS (CONTINUED)
C. Interfund Transfers
Interfund transfers for the 2019 fiscal year were as follows:
Storm Sewer Brookview
General Nonmajor Utility Golf Total
Governmental funds
General –$ 3,497,173$ (1)–$ –$ 3,497,173$
Winnetka/Medicine Lake
Tax Increment Capital Project – – 1,182,565 (2)– 1,182,565
Nonmajor – 1,749,236 (2)– 3,350 (3)1,752,586
Enterprise funds
Motor Vehicle Operating 30,000 (4)– – – 30,000
Total 30,000$ 5,246,409$ 1,182,565$ 3,350$ 6,462,324$
(1)Transfers to finance current or future capital purchases or construction.
(2)Transfers to finance Highway 55 construction and Liberty Crossing projects.
(3)Transfers for equipment purchases.
(4)Transfer to support General Fund budget.
Transfers In
Transfers Out
Governmental Funds Enterprise Funds
NOTE 4 – CAPITAL ASSETS
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 29,714,190 7,917,233 – (20,938,784) 16,692,639
Total capital assets, not depreciated 33,241,875 7,917,233 – (20,938,784) 20,220,324
Capital assets, depreciated
Land improvements 5,853,690 447,611 – 605,227 6,906,528
Buildings and improvements 12,877,507 288,827 (10,465) 15,655,253 28,811,122
Machinery and equipment 13,831,531 2,393,291 (1,328,391) 1,277,462 16,173,893
Infrastructure 117,122,058 – – 3,357,484 120,479,542
Total capital assets, depreciated 149,684,786 3,129,729 (1,338,856) 20,895,426 172,371,085
Less accumulated depreciation on
Land improvements (3,595,306) (205,779) – – (3,801,085)
Buildings and improvements (9,932,243) (554,971) 9,769 – (10,477,445)
Machinery and equipment (6,883,820) (1,162,658) 1,170,289 49,418 (6,826,771)
Infrastructure (67,419,918) (4,961,577) – – (72,381,495)
Total accumulated depreciation (87,831,287) (6,884,985) 1,180,058 49,418 (93,486,796)
Net capital assets, depreciated 61,853,499 (3,755,256) (158,798) 20,944,844 78,884,289
Total capital assets, net 95,095,374$ 4,161,977$ (158,798)$ 6,060$ 99,104,613$
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NOTE 4 – CAPITAL ASSETS (CONTINUED)
Capital asset activity for the year ended December 31, 2018 was as follows:
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 8,408,414 2,011,811 – (6,701,731) 3,718,494
Total capital assets, not depreciated 9,265,458 2,011,811 – (6,701,731) 4,575,538
Capital assets, depreciated
Land improvements 3,155,215 15,526 (9,582) – 3,161,159
Buildings and improvements 788,151 20,474 – – 808,625
Machinery and equipment 4,667,866 504,473 (440,140) 43,358 4,775,557
Infrastructure – distribution
and collection systems 43,190,504 396,173 – 6,701,731 50,288,408
Total capital assets, depreciated 51,801,736 936,646 (449,722) 6,745,089 59,033,749
Less accumulated depreciation on
Land improvements (2,624,529) (54,642) 9,582 – (2,669,589)
Buildings and improvements (509,787) (23,082) – – (532,869)
Machinery and equipment (2,875,955) (347,076) 432,801 (49,418) (2,839,648)
Infrastructure – distribution
and collection systems (16,582,975) (1,416,057) – – (17,999,032)
Total accumulated depreciation (22,593,246) (1,840,857) 442,383 (49,418) (24,041,138)
Net capital assets, depreciated 29,208,490 (904,211) (7,339) 6,695,671 34,992,611
Total capital assets, net 38,473,948$ 1,107,600$ (7,339)$ (6,060)$ 39,568,149$
C. Depreciation Expense by Function
Depreciation expense for the year ended December 31, 2018 was charged to the following functions:
Governmental activities
General government 88,493$
Public safety 495,234
Physical development 5,444,328
Parks and recreation 831,179
Capital assets held by the City’s internal service funds – charged
to the various functions based on usage of the assets 25,751
Total depreciation expense – governmental activities 6,884,985$
Business-type activities
Utility (water and sewer)852,713$
Storm sewer utility 867,103
Brookview (golf course) operating 118,509
Motor vehicle operating 2,532
Total depreciation expense – business-type activities 1,840,857$
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NOTE 5 – LONG-TERM LIABILITIES
A. Long-Term Liabilities
The City’s long-term liabilities at December 31, 2018 are as follows:
Final Balance –
Original Issue Interest Rate Issue Date Maturity Date End of Year
Governmental activities
General obligation special assessment bonds
Improvement Bonds of 2009A 7,305,000$ 2.00–4.00%05/01/2009 02/01/2020 4,970,000$
Improvement Bonds of 2010A 3,845,000$ 2.00–4.00%06/15/2010 02/01/2030 1,535,000
Improvement Bonds of 2011A 1,840,000$ 2.00–4.00%05/15/2011 02/01/2031 1,265,000
Improvement Refunding Bonds of 2011C 4,870,000$ 2.00–3.00%05/15/2011 02/01/2019 665,000
Improvement Bonds of 2012A 1,575,000$ 2.00–3.00%05/15/2012 02/01/2032 1,115,000
Improvement Refunding Bonds of 2012C 5,960,000$ 2.00–2.25%05/15/2012 02/01/2025 5,285,000
Improvement Bonds of 2013A 1,735,000$ 1.25–3.00%05/21/2013 02/01/2033 1,150,000
Improvement Refunding Bonds of 2013B 7,025,000$ 2.00%05/21/2013 02/01/2026 6,475,000
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 3,805,000
Improvement Bonds of 2015A 1,870,000$ 3.00–3.50%07/15/2015 02/01/2036 1,530,000
Improvement Refunding Bonds of 2015C 6,600,000$ 2.00–2.50%07/15/2015 02/01/2028 6,600,000
Improvement Bonds of 2016A 1,290,000$ 2.00–3.00%07/07/2016 02/01/2037 1,150,000
Improvement Bonds of 2017A 2,580,000$ 3.00–3.25%07/20/2017 02/01/2038 2,580,000
Improvement Refunding Bonds of 2017A 4,100,000$ 3.00%07/20/2017 02/01/2029 4,100,000
Improvement Refunding Bonds of 2017B 765,000$ 2.00–4.00%07/20/2017 02/01/2028 765,000
Improvement Bonds of 2018A 2,950,000$ 3.00–3.375%06/14/2018 02/01/2038 2,950,000
48,175,000
General obligation street reconstruction bonds
Street Reconstruction Bonds of 2016C 5,630,000$ 2.13–4.00%07/07/2016 02/01/2037 5,405,000
General obligation certificates of indebtedness
Equipment Certificates of 2015B 800,000$ 2.00%07/15/2015 02/01/2019 270,000
Equipment Certificates of 2016B 800,000$ 2.00%07/07/2016 02/01/2020 535,000
Equipment Certificates of 2017A 815,000$ 3.00%07/20/2017 02/01/2021 815,000
1,620,000
General obligation tax abatement bonds
Tax Abatement Refunding Bonds of 2013A 2,075,000$ 1.25%05/21/2013 02/01/2019 330,000
General obligation tax increment bonds
Tax Increment Bonds of 2017B 1,170,000$ 2.00–4.00%07/20/2017 02/01/2028 1,170,000
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 1,395,000
Lease Revenue Bonds
2016C Lease Revenue Bonds (Brookview
Community Center)17,410,000$ 2.00–4.00%10/19/2016 02/01/2037 16,935,000
Unamortized premiums 2,084,966
Compensated absences payable 1,617,140
Net pension liability – PERA 9,400,815
Total OPEB liability 1,983,168
Total governmental activity long-term liabilities 90,116,089
Business-type activities
General obligation revenue bonds
Utility Revenue Bonds of 2016D 2,580,000$ 2.13–3.00%10/19/2016 02/01/2037 2,580,000
Unamortized premiums 37,631
Total business-type activity long-term liabilities 2,617,631
Total government-wide long-term liabilities 92,733,720$
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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.
o Improvement Refunding Bonds of 2015C – These bonds were used to refund the 2019
through 2028 maturities of the City’s G.O. Improvement Bonds, Series 2008A, on their
February 1, 2018 call date. This “crossover refunding” reduced the City’s total future debt
service payments by $617,605 and result in a present value savings of $553,034.
o Improvement Refunding Bonds of 2017A – These bonds will be used to refund the 2021
through 2029 maturities of the City’s G.O. Improvement Bonds, Series 2009A, on their
February 1, 2019 call date. Until the call date, the City will make all debt service payments
on the 2009A issue, and all debt service on the 2017A issue will be paid from the refunding
escrow account. This “partial crossover refunding” will reduce the City’s total future debt
service payments by $372,062 and result in a present value savings of $333,344.
• Street Reconstruction Bonds – The general obligation street reconstruction bonds, issued in
accordance with Minnesota Statutes § 475.58 to finance the cost of the Douglas Drive Street
Reconstruction Project, will be repaid primarily with ad valorem tax levies.
• Certificates of Indebtedness – The City has three outstanding issues of general obligation
certificates of indebtedness, issued in accordance with Minnesota Statutes § 412.301 to finance
various equipment purchases, which will be repaid primarily with ad valorem tax levies.
• Tax Abatement Bonds – The general obligation tax abatement refunding bonds, issued in
accordance with Minnesota Statutes § 469.1813 to finance various improvements, will be repaid
primarily with ad valorem tax levies.
• Tax Increment Bonds – The City has established tax increment financing (TIF) districts and has
issued general obligation tax increment bonds in accordance with Minnesota Statutes, § 462.585
and § 273.77. It is anticipated that the tax increment revenues, derived from the captured assessed
value of property in the tax increment district, will provide substantially all funds necessary to
retire the bond principal and interest. In addition, future tax levies may be placed on the tax rolls
annually as scheduled for supplementary financing.
• State Aid Street Bonds – The general obligation state aid street bonds, issued in accordance with
Minnesota Statutes § 162.18 to finance various street improvements, will be repaid primarily with
state aid.
• HRA Lease Revenue Bonds – The 2016C Lease Revenue Bonds were issued to finance the
construction of the new Brookview Community Center. The bonds were issued by the HRA, a
blended component unit of the City.
The funding for the debt is provided through a lease agreement between the City (as lessee) and
the HRA (as lessor), that requires the City to make rental payments sufficient to pay the debt
service on the bonds. Therefore, this bond issue has been included as an obligation of the City.
Title to the facility will transfer to the City upon completion of the lease agreement and
repayment of the related debt.
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NOTE 5 – LONG-TERM LIABILITIES (CONTINUED)
• Utility Revenue Bonds – These bonds were issued for improvements or projects that directly
benefit the Storm Sewer Utility Enterprise Fund and will be repaid from revenue sources of that
fund.
• Other Long-Term Liabilities – The City provides its employees with various benefits, including
compensated absences, pensions, and other 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 Principal Interest Principal Interest
2019 7,740,000$ 1,191,082$ 225,000$ 143,713$ 800,000$ 31,225$ 330,000$ 2,063$
2020 3,365,000 1,020,324 230,000 139,163 540,000 15,150 – –
2021 3,595,000 940,029 235,000 134,513 280,000 4,200 – –
2022 3,915,000 823,260 240,000 129,763 – – – –
2023 4,050,000 737,380 245,000 124,913 – – – –
2024–2028 19,040,000 2,255,744 1,330,000 520,163 – – – –
2029–2033 4,395,000 622,580 1,515,000 327,506 – – – –
2034–2038 2,075,000 147,273 1,385,000 84,825 – – – –
48,175,000$ 7,737,672$ 5,405,000$ 1,604,559$ 1,620,000$ 50,575$ 330,000$ 2,063$
Year Ending
December 31,Principal Interest Principal Interest Principal Interest Principal Interest
2019 15,000$ 27,563$ 130,000$ 54,431$ 650,000$ 558,550$ 9,890,000$ 2,008,627$
2020 120,000 26,212 135,000 49,131 670,000 538,750 5,060,000 1,788,730
2021 120,000 23,813 145,000 43,531 690,000 518,350 5,065,000 1,664,436
2022 125,000 21,362 150,000 37,538 710,000 493,800 5,140,000 1,505,723
2023 125,000 18,863 155,000 31,247 735,000 464,900 5,310,000 1,377,303
2024–2028 665,000 44,206 680,000 57,544 4,095,000 1,917,250 25,810,000 4,794,907
2029–2033 – – – – 4,865,000 1,132,250 10,775,000 2,082,336
2034–2038 – – – – 4,520,000 276,150 7,980,000 508,248
1,170,000$ 162,019$ 1,395,000$ 273,422$ 16,935,000$ 5,900,000$ 75,030,000$ 15,730,310$
Governmental Activities
General ObligationGeneral Obligation General Obligation
Certificates of IndebtednessSpecial Assessment Bonds Street Reconstruction Bonds
General Obligation
Tax Abatement Bonds
Total
Governmental Activities
Tax Increment Bonds State Aid Street Bonds Lease Revenue Bonds
General Obligation General Obligation HRA
Year Ending
December 31,Principal Interest
2019 –$ 63,500$
2020 120,000 62,300
2021 120,000 59,900
2022 125,000 57,450
2023 125,000 54,950
2024–2028 670,000 232,775
2029–2033 750,000 145,713
2034–2037 670,000 40,750
2,580,000$ 717,338$
Business-Type Activities
Utility Revenue Bonds
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NOTE 5 – LONG-TERM LIABILITIES (CONTINUED)
D. Revenue Pledged
Future revenue pledged for the payment of long-term debt is as follows:
Percent of Remaining Principal Pledged
Use of Total Term of Principal and Interest Revenue
Bond Issue Proceeds Type Debt Service Pledge and Interest Paid Received
Utility Revenue Bonds,Storm sewer
Series 2016D improvements Utility charges 100%2016–2037 3,297,338$ 63,950$ 2,446,828$
Revenue Pledged Current Year
E. Changes in Long-Term Debt
Beginning Due Within
of Year *Additions Deletions End of Year One Year
Governmental activities
G.O. special assessment bonds 55,340,000$ 2,950,000$ 10,115,000$ 48,175,000$ 7,740,000$
G.O. street reconstruction bonds 5,630,000 – 225,000 5,405,000 225,000
G.O. certificates of indebtedness 2,400,000 – 780,000 1,620,000 800,000
G.O. tax abatement bonds 670,000 – 340,000 330,000 330,000
G.O. tax increment bonds 1,170,000 – – 1,170,000 15,000
G.O. state aid street bonds 1,520,000 – 125,000 1,395,000 130,000
HRA lease revenue bonds 17,410,000 – 475,000 16,935,000 650,000
Unamortized premiums 2,352,017 31,117 298,168 2,084,966 –
Compensated absences 1,585,622 1,188,417 1,156,899 1,617,140 1,153,639
Net pension liability – PERA 11,373,895 1,083,724 3,056,804 9,400,815 –
Total OPEB liability 1,800,103 210,077 27,012 1,983,168 –
Total governmental activities 101,251,637 5,463,335 16,598,883 90,116,089 11,043,639
Business-type activities
Utility revenue bonds 2,580,000 – – 2,580,000 –
Unamortized premiums 39,688 – 2,057 37,631 –
Total business-type activities 2,619,688 – 2,057 2,617,631 –
Total 103,871,325$ 5,463,335$ 16,600,940$ 92,733,720$ 11,043,639$
* The beginning “Total OPEB Liability” has been restated for the change in accounting principle described in Note 1. U.
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, 2018, the
following conduit debt issues were outstanding:
Number Principal
Type of Debt Years Issued of Issues Outstanding
Multi-family housing revenue bonds 1999–2006 1 2,632,097$
Governmental/nonprofit revenue bonds 2007–2009 1 634,175
2 3,266,272$
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NOTE 6 – COMPONENTS OF FUND BALANCE
At December 31, 2018, the City had the following fund balances:
Winnetka/
Street Medicine Lake Capital Douglas Drive
Reconstruction Tax Increment Improvement Improvement
General Debt Service Capital Project Capital Project Capital Project Nonmajor Total
Restricted
Debt service –$ 12,541,849$ –$ –$ –$ 3,792,482$ 16,334,331$
Redevelopment – – – – – 332,288 332,288
Street improvements – – – – 1,738,480 7,430,613 9,169,093
Brookview – – – – – 235,651 235,651
Lodging tax – – – – – 19,823 19,823
Cemetery maintenance – – – – – 85,466 85,466
DWI enforcement – – – – – 21,057 21,057
VTOF – – – – – 113,635 113,635
Total restricted – 12,541,849 – – 1,738,480 12,031,015 26,311,344
Committed
Human service needs – – – – – 213,624 213,624
Assigned
Street improvements – – – – 53,393 1,307,103 1,360,496
Cable improvements – – – – – 286,716 286,716
Park improvements – – – – – 315,666 315,666
Equipment replacement – – – – – 3,141,368 3,141,368
Capital improvements – – – 3,956,184 – 1,123,124 5,079,308
Downtown area study 35,000 – – – – – 35,000
Document imaging 10,000 – – – – – 10,000
Self-insurance 2,000,000 – – – – – 2,000,000
Total assigned 2,045,000 – – 3,956,184 53,393 6,173,977 12,228,554
Unassigned 11,014,502 – (2,164,862) – – – 8,849,640
Total 13,059,502$ 12,541,849$ (2,164,862)$ 3,956,184$ 1,791,873$ 18,418,616$ 47,603,162$
NOTE 7 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN
A. Plan Description
The City provides post-employment insurance benefits to certain eligible employees through its OPEB
Plan, a single-employer defined benefit plan administered by the City. All post-employment benefits are
based on contractual agreements with employee groups. Eligibility for these benefits is based on years of
service and/or minimum age requirements. These contractual agreements do not include any specific
contribution or funding requirements. The plan does not issue a publicly available financial report. No
plan assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.
B. Benefits Provided
All retirees of the City upon retirement have the option under state law to continue their medical
insurance coverage through the City. For members of certain employee groups, the City pays for all or
part of the eligible retiree’s premiums for medical and/or dental insurance from the time of retirement
until the employee reaches the age of eligibility for Medicare. Benefits paid by the City differ by
bargaining unit and date of hire, with some contracts specifying a certain dollar amount per month, and
some covering premium costs as defined within each collective bargaining agreement. Retirees n ot
eligible for these city-paid premium benefits must pay the full city premium rate for their coverage.
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NOTE 7 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
The City is legally required to include any retirees for whom it provides health insurance coverage in the
same insurance pool as its active employees until the retiree reaches Medicare eligibility, whether the
premiums are paid by the City or the retiree. Consequently, participating retirees are considered to receive
a secondary benefit known as an “implicit rate subsidy.” This benefit relates to the assumption that the
retiree is receiving a more favorable premium rate than they would otherwise be able to obtain if
purchasing insurance on their own, due to being included in the same pool with the City’s younger and
statistically healthier active employees.
For police officers or firefighters disabled in the line-of-duty, Minnesota Statutes require the City to
continue payment of the employer’s contribution toward health coverage for the police officer or
firefighter and their spouse, if the spouse was covered at the time of disability, until age 65.
C. Contributions
The required contribution is based on projected pay-as-you-go financing requirements, with additional
amounts to prefund benefits as determined periodically by the City. The City’s current year required
pay-as-you-go contributions to finance the benefits described in the previous section totaled $62,128.
D. Membership
Membership in the plan consisted of the following as of the latest actuarial valuation:
Retirees and beneficiaries receiving benefits 6
Active plan members 128
Total members 134
E. Total OPEB Liability of the City
The City’s total OPEB liability of $1,983,168 as of year-end was measured as of January 1, 2018, and
was determined by an actuarial valuation as of that date.
F. Actuarial Methods and Assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2018, using the
entry-age normal cost method and the following actuarial assumptions, applied to all periods included in
the measurement, unless otherwise specified:
Discount rate 3.44%
20-year municipal bond yield 3.44%
Inflation rate 2.75%
Salary increases 3.50%
Healthcare trend rate 10.00%, grading to 5.00% over 10 years
The actuarial assumptions used in the latest valuation were based on those used to value pension liabilities
for Minnesota city employees. The state pension plans base their assumptions on periodic experience
studies. Economic assumptions are based on input from a variety of published so urces of historical and
projected future financial data. Each assumption was reviewed for reasonableness with the source
information, as well as for consistency with the other economic assumptions.
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NOTE 7 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
Since the plan is not funded by an irrevocable trust, the discount rate is equal to the 20 -year municipal
bond yield rate of 3.44 percent, which was set by considering published rate information for 20-year high
quality, tax-exempt, general obligation municipal bonds as of the measurement date. The City discount
rate used in the prior measurement date was 4.50 percent.
Mortality rates were based on the RP-2014 Mortality Table, adjusted for white collar and mortality
improvements using projection scale MP-2015 from a base year of 2014 (adjusted using projection scale
MP-2016 from a base year of 2006 for police and fire personnel).
Future retirees electing coverage is assumed to be 55 percent. Married future retirees electing spouse
coverage is assumed to be 40 percent (60 percent for police and fire personnel).
G. Changes in the Total OPEB Liability
Total OPEB
Liability
Beginning balance – January 1, 2018 1,800,103$
Changes for the year
Service cost 133,055
Interest 71,708
Changes of assumptions 50,539
Benefit payments (72,237)
Total net changes 183,065
Ending balance – December 31, 2018 1,983,168$
H. Total OPEB Liability Sensitivity to Discount and Healthcare Cost Trend Rate Changes
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability
would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point
higher than the current discount rate:
Discount rate 3.44%
Total OPEB liability $ 2,137,160 $ 1,837,437
2.44%4.44%
1% Decrease in 1% Increase in
Discount Rate Discount Rate
Discount
Rate
1,983,168$
The following presents the net OPEB liability of the City, as well as what the City’s total OPEB liability
would be if it were calculated using healthcare cost trend rates that are 1 percentage point lower or
1 percentage point higher than the current healthcare cost trend rates:
Healthcare cost trend rate
Total OPEB liability $ 1,816,366 $ 2,150,128
4.00% over 5 years 6.00% over 5 years5.00% over 5 years
$ 1,983,168
1% Decrease in 1% Increase in
Cost Trend Rate Cost Trend Rate
9.00%, decreasing to 11.00%, decreasing to
Healthcare Cost
Trend Rate
10.00%, decreasing to
Healthcare Healthcare
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NOTE 7 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
I. OPEB Expense and Related Deferred Outflows of Resources and Deferred Inflows of Resources
For the current year ended, the City recognized OPEB expense of $210,077. As of year-end, the City
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the
following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Changes in assumptions 45,225$ –$
Contributions subsequent to the measurement date 62,128 –
Changes of assumptions 107,353$ –$
Deferred outflows of resources reported $62,128 related to OPEB 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, 2019. Other amounts reported as deferred outflows and inflows of
resources related to pensions will be recognized in pension expense as follows:
OPEB
Year Ending Expense
June 30,Amount
2019 $ 5,314
2020 $ 5,314
2021 $ 5,314
2022 $ 5,314
2023 $ 5,314
Thereafter $ 18,655
NOTE 8 – PENSION PLANS
Employees of the City participate in three defined benefit pension plans. Two of the plans are state-wide,
cost-sharing, multiple-employer defined benefit pension plans administered by the PERA of
Minnesota: the General Employees Retirement Fund (GERF) and the Public Employees Police and Fire
Fund (PEPFF). The third is a single-employer defined benefit pension plan administered through the
Golden Valley Fire Department Relief Association (the Association). Members of the City Council also
participate in the Public Employees Defined Contribution Plan (PEDCP), a multiple-employer defined
contribution pension plan administered by the PERA of Minnesota. The details of the City’s participation
in each of these plans are presented later in these notes. The following table summarizes the impact of
these plans on the City’s government-wide financial statements:
Golden Valley
Fire Department
Relief Total
GERF PEPFF PEDCP Total Association All Plans
Net pension asset –$ –$ –$ –$ 2,180,799$ 2,180,799$
Deferred outflows 1,168,273$ 4,637,663$ –$ 5,805,936$ 329,035$ 6,134,971$
Net pension liability 6,035,778$ 3,365,037$ –$ 9,400,815$ –$ 9,400,815$
Deferred inflows 1,609,514$ 6,619,887$ –$ 8,229,401$ 501,695$ 8,731,096$
Pension expense 584,739$ 386,506$ 2,144$ 973,389$ 32,241$ 1,005,630$
State-Wide PERA Pension Plans
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NOTE 9 – 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 of Minnesota. The PERA’s defined benefit pension plans are established and
administered in accordance with Minnesota Statutes, Chapters 353 and 356. The PERA’s defined benefit
pension plans are tax-qualified plans under Section 401(a) of the Internal Revenue Code (IRC).
1. General Employees Retirement Fund (GERF)
All full-time and certain part-time employees of the City are covered by the GERF. The GERF
members belong to the Coordinated Plan. Coordinated Plan members are covered by Social
Security.
2. Public Employees Police and Fire Fund (PEPFF)
The PEPFF, originally established for police officers and firefighters not covered by a local relief
association, now covers all police officers and firefighters hired since 1980. Effective July 1,
1999, the PEPFF also covers police officers and firefighters belonging to local relief associations
that elected to merge with and transfer assets and administration to the PERA.
B. Benefits Provided
The PERA provides retirement, disability, and death benefits. Benefit provisions are established by state
statutes and can only be modified by the State Legislature. Vested, terminated employees who are entitled
to benefits but are not receiving them yet, are bound by the provisions in effect at the time they last
terminated their public service.
1. GERF Benefits
Benefits are based on a member’s highest average salary for any five successive years of
allowable service, age, and years of credit at termination of service. Two methods are used to
compute benefits for the PERA’s Coordinated Plan members. Members hired prior to July 1,
1989, receive the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members
hired after June 30, 1989. Under Method 1, the accrual rate for Coordinated Plan members is
1.2 percent of average salary for each of the first 10 years of service, and 1.7 percent of average
salary for each additional year. Under Method 2, the accrual rate for Coordinated Plan members
is 1.7 percent of average salary for all years of service. For members hired prior to July 1, 1989, a
full annuity is available when age plus years of service equal 90, and normal retirement age is 65.
For members hired on or after July 1, 1989, normal retirement age is the age for unreduced Social
Security benefits capped at age 66.
Benefit increases are provided to benefit recipients each January. Increases are related to the
funding ratio of the plan. If the GERF is at least 90.0 percent funded for two consecutive years,
benefit recipients are given a 2.5 percent increase. If the plan has not exceeded 90.0 percent
funded, or has fallen below 80.0 percent, benefit recipients are given a one percent increase. A
benefit recipient who has been receiving a benefit for at least 12 full months as of June 30 will
receive a full increase. Members receiving benefits for at least one month, but less than 12 full
months as of June 30, will receive a pro rata increase.
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NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
2. PEPFF Benefits
Benefits for the PEPFF members first hired after June 30, 2010 but before July 1, 2014, vest on a
prorated basis from 50 percent after five years, up to 100 percent after 10 years of credited
service. Benefits for the PEPFF members first hired after June 30, 2014 vest on a prorated basis
from 50 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. A full, unreduced pension is
earned when members are age 55 and vested, or for members who were first hired prior to July 1,
1989, when age plus years of service equal at least 90.
Benefit increases are provided to benefit recipients each January. PEPFF benefit recipients
receive a future annual 1.0 percent increase. An annual adj ustment will equal 2.5 percent any time
the plan exceeds a 90.0 percent funded ratio for two consecutive years. If the adjustment is
increased to 2.5 percent and the funded ratio falls below 80.0 percent for one year, or 85.0 percent
for two consecutive years, the post-retirement benefit increase will be lowered to 1.0 percent. A
benefit recipient who has been receiving a benefit for at least 12 full months as of June 30, will
receive a full increase. Members receiving benefits for at least one month, but less than 12 full
months as of June 30, will receive a pro rata increase. For retirements after May 31, 2014, the
first increase will be delayed two years.
C. Contributions
Minnesota Statutes, Chapter 353 sets the rates for employer and employee contributions. Contribution
rates can only be modified by the State Legislature.
1. GERF Contributions
Coordinated Plan members were required to contribute 6.50 percent of their annual covered
salary in fiscal year 2018. The City was required to contribute 7.50 percent for Coordinated Plan
members. The City’s contributions to the GERF for the year ended December 31, 2018 were
$580,703. The City’s contributions were equal to the required contributions as set by state
statutes.
2. PEPFF Contributions
Plan members were required to contribute 10.80 percent of their annual covered salary in fiscal
year 2018. The City was required to contribute 16.20 percent of pay for members. The City’s
contributions to the PEPFF for the year ended December 31, 2018 were $550,962. The City’s
contributions were equal to the required contributions as set by state statutes.
D. Pension Costs
1. GERF Pension Costs
At December 31, 2018, the City reported a liability of $6,035,778 for its proportionate share of
the GERF’s net pension liability. The net pension liability was measured as of June 30, 201 8, 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, 2017 through June 30, 2018, relative to the total employer contributions
received from all of the PERA’s participating employers. The City’s proportionate share was
0.1088 percent at the end of the measurement period and 0.1107 percent for the beginning of the
period.
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NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
The City’s net pension liability reflected a reduction, due to the state of Minnesota’s contribution
of $16 million to the fund in 2018. The state of Minnesota is considered a nonemployer
contributing entity and the state’s contribution meets the definition of a special funding situation.
The amount recognized by the City as its proportionate share of the net pension liability, the
direct aid, and total portion of the net pension liability that was associated with the Ci ty were as
follows:
City’s proportionate share of the net pension liability 6,035,778$
State’s proportionate share of the net pension liability
associated with the City 198,039$
For the year ended December 31, 2018, the City recognized pension expense of $538,557 for its
proportionate share of the GERF’s pension expense. In addition, the City recognized an
additional $46,182 as pension expense (and grant revenue) for its proportionate share of the state
of Minnesota’s contribution of $16 million to the GERF.
At December 31, 2018, the City reported its proportionate share of the GERF’s deferred outflows
of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual economic experience 162,421$ 173,449$
Changes in actuarial assumptions 568,091 686,291
Differences between projected and actual investment earnings – 641,960
Changes in proportion 142,091 107,814
Contributions paid to the PERA subsequent to the
measurement date 295,670 –
Total 1,168,273$ 1,609,514$
Deferred outflows of resources reported $295,670 related to pensions resulting from city
contributions subsequent to the measurement date that will be recognized as a reduction of the net
pension liability in the year ending December 31, 2019. Other amounts reported as deferred
outflows and deferred inflows of resources related to pensions will be recognized in pension
expense as follows:
Pension
Year Ending Expense
December 31,Amount
2019 212,583$
2020 (298,292)$
2021 (525,225)$
2022 (125,977)$
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NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
2. PEPFF Pension Costs
At December 31, 2018, the City reported a liability of $3,365,037 for its proportionate share of
the PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2018 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, 2017 through June 30, 2018, relative to the total employer contributions
received from all of the PERA’s participating employers. The City’s proportionate share was
0.3157 percent at the end of the measurement period, and 0.3190 percent for the beginning of the
period.
For the year ended December 31, 2018, the City recognized pension expense of $358,093 for its
proportionate share of the PEPFF’s pension expense. The City also recognized $28,413 for the
year ended December 31, 2018 as revenue and an offsetting reduction of net pension liability for
its proportionate share of the state of Minnesota’s on-behalf contributions to the PEPFF.
Legislation passed in 2013 required the state of Minnesota to begin contributing $9 million to the
PEPFF each year, starting in fiscal year 2014.
At December 31, 2018, the City reported its proportionate share of the PEPFF’s deferred outflows
of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual economic experience 136,452$ 837,105$
Changes in actuarial assumptions 4,227,308 5,004,377
Differences between projected and actual investment earnings – 704,151
Changes in proportion – 74,254
Contributions paid to the PERA subsequent to the
measurement date 273,903 –
Total 4,637,663$ 6,619,887$
Deferred outflows of resources reported $273,903 related to pensions resulting from city
contributions subsequent to the measurement date that will be recognized as a reduction of the net
pension liability in the year ending December 31, 2019. Other amounts reported as deferred
outflows and inflows of resources related to pensions will be recognized in pension expense as
follows:
Pension
Year Ending Expense
December 31,Amount
2019 (102,571)$
2020 (262,432)$
2021 (506,209)$
2022 (1,366,396)$
2023 (18,519)$
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NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
E. Actuarial Assumptions
The total pension liability in the June 30, 2018 actuarial valuation was determined using an individual
entry-age normal actuarial cost method and the following actuarial assumptions:
Inflation 2.50% per year
Active member payroll growth 3.25% per year
Investment rate of return 7.50%
Salary increases were based on a service-related table. Mortality rates for active members, retirees,
survivors, and disabilitants for all plans were based on RP-2014 tables for males and females, as
appropriate, with slight adjustments to fit the PERA’s experience. Cost of living benefit increases after
retirement for retirees are assumed to be 1.25 percent per year for the GERF, and 1.00 percent per year for
the PEPFF.
Actuarial assumptions used in the June 30, 2018 valuation were based on the results of actuarial
experience studies. The most recent six-year experience study in the GERF was completed in 2015. The
most recent four-year experience study for PEPFF was completed in 2016. Economic assumptions were
updated in 2017 based on a review of inflation and investment return assumptions.
The following changes in actuarial assumptions occurred in 2018:
1. GERF
• The mortality projection scale was changed from MP-2015 to MP-2017.
• The assumed post-retirement benefit increase was changed from 1.00 percent per year
through 2044, and 2.50 percent per year thereafter, to 1.25 percent per year.
2. PEPFF
• The mortality projection scale was changed from MP-2016 to MP-2017.
• As set by state statutes, the assumed post-retirement benefit increase was changed from
1.0 percent per year through 2064, and 2.5 percent per year thereafter, to 1.0 percent for all
years with no trigger.
The State Board of Investment, which manages the investments of the PERA, prepares an analysis of the
reasonableness on a regular basis of the long-term expected rate of return using a building-block method
in which best-estimate ranges of expected future rates of return are developed for each major asset class.
These ranges are combined to produce an expected long-term rate of return by weighting the expected
future rates of return by the target asset allocation percentages. The target allocation and best -estimates of
geometric real rates of return for each major asset class are summarized in the following table:
Asset Class
Domestic stocks 36 %5.10 %
International stocks 17 5.30 %
Bonds 20 0.75 %
Alternative assets 25 5.90 %
Cash 2 – %
100 %
Target Long-Term Expected
Allocation Real Rate of Return
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NOTE 9 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
F. Discount Rate
The discount rate used to measure the total pension liability in 2018 was 7.50 percent. The projection of
cash flows used to determine the discount rate assumed that contributions from plan members and
employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net
positions of the GERF and the PEPFF were projected to be available to make all projected future benefit
payments of current plan members. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the total pension
liability.
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 page, 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
6.50%7.50%8.50%
The City’s proportionate share of
the GERF net pension liability 9,808,912$ 6,035,778$ 2,921,164$
The City’s proportionate share of
the PEPFF net pension liability 7,214,850$ 3,365,037$ 181,401$
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; by writing to the PERA at 60 Empire
Drive, Suite 200, St. Paul, Minnesota 55103; or by calling (651) 296-7460 or (800) 652-9026.
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NOTE 10 – DEFINED CONTRIBUTION PENSION PLAN – STATE-WIDE
Council members of the City are covered by the Public Employees Defined Contribution Plan (PEDCP),
a multiple-employer deferred compensation plan administered by the PERA. The PEDCP is a tax
qualified plan under Section 401(a) of the IRC, and all contributions by or on behalf of employees are tax
deferred until time of withdrawal.
Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less
administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the
employee and employer contribution rates for those qualified personnel who elect to participate. An
eligible elected official who decides to participate contributes 5 percent of their salary, which is matched
by the elected official’s employer. For ambulance service personnel, employer contributions are
determined by the employer, and for salaried employees, contributions must be a fixed percentage of
salary. Employer contributions for volunteer personnel may be a unit value for each call or period of alert
duty. Employees who are paid for their services may elect to make member contributions in an amount
not to exceed the employer share. Employee and employer 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 25 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 Rate
Employee Employer Employee Employer for Employees
2016 1,561$ 1,561$ 5%5%5%
2017 1,572$ 1,572$ 5%5%5%
2018 2,144$ 2,144$ 5%5%5%
Contribution Amount Percentage of Covered Payroll
NOTE 11 – DEFINED BENEFIT PENSION PLAN – FIRE RELIEF ASSOCIATION
A. Plan Description
All members of the Golden Valley Fire Department (the Department) are covered by a defined benefit
plan administered by the Association. As of December 31, 2016, the plan covered 53 active firefighters
and 10 vested terminated firefighters whose pension benefits are deferred. The plan is a single -employer
retirement plan and is established and administered in accordance with Minnesota Statutes, Chapter 69.
The Association maintains a separate Special Fund to accumulate assets to fund the retirement benefits
earned by the Department’s membership. Funding for the Association is derived from an insurance
premium tax in accordance with the Volunteer Firefighter’s Relief Association Financing Guidelines Act
of 1971 (Chapter 261 as amended by Chapter 509 of Minnesota Statutes 1980). Funds are also derived
from investment income.
B. Benefits Provided
A firefighter who completes at least 20 years as an active member of the Department is entitled, after
age 50, to a full service pension upon retirement.
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NOTE 11 – DEFINED BENEFIT PENSION PLAN – FIRE RELIEF ASSOCIATION
(CONTINUED)
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 nonforfeitable percentage of pension.
C. Contributions
Minnesota Statutes, Chapters 424 and 424A authorize pension benefits for volunteer fire relief
associations. The plan is funded by fire state aid, investment earnings, and, if necessary, employer
contributions as specified in Minnesota Statutes and voluntary city contributions (if applicable). The
firefighters have no obligation to contribute to the plan. Nonemployer pension contributions include state
aid from the state of Minnesota and municipal contributions from the City. On -behalf of state aid
payments from the state of Minnesota are received initially by the City and subsequently remitte d to the
Association. These on-behalf of state aid payments are recognized as revenues and expenditures in the
City’s General Fund during the period received.
For the year ended December 31, 2018, the City recognized pension expense of $32,241. The City’s
statutorily-required contributions to the plan for the year were $0. The City recognized $161,767 as
revenue for the state of Minnesota’s on-behalf contributions to the Department.
D. Pension Costs
At December 31, 2018, the City reported a net pension asset of $2,180,799 for the plan. The net pension
asset was measured as of December 31, 2017. The total pension liability used to calculate the net pension
asset in accordance with GASB Statement No. 68 was determined by applying an actuarial formula to
specific census data certified by the Department as of December 31, 2016.
The following table presents the changes in net pension liability (asset) during the year:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability (Asset)
Beginning balance – January 1, 2018 3,259,079$ 4,876,016$ (1,616,937)$
Changes for the year
Service cost 165,540 – 165,540
Interest on pension liability (asset)244,540 – 244,540
Changes in assumptions 24,168 – 24,168
Contributions (state and local)– 161,767 (161,767)
Net investment income – 849,121 (849,121)
Benefit payments, including
member contribution refunds (328,180) (328,180) –
Administrative costs – (12,778) 12,778
Total net changes 106,068 669,930 (563,862)
Ending balance – December 31, 2018 3,365,147$ 5,545,946$ (2,180,799)$
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NOTE 11 – DEFINED BENEFIT PENSION PLAN – FIRE RELIEF ASSOCIATION
(CONTINUED)
At December 31, 2018, the City reported deferred inflows and outflows of resources related to pensions
from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Difference between expected and actual liability 139,929$ –$
Change of assumptions 21,500 31,591
Net difference between projected and actual earnings on
plan investments – 302,498
State aid to the City subsequent to the measurement date 167,606 167,606
Total 329,035$ 501,695$
Deferred outflows and inflows of resources totaling $167,606 related to pensions resulting from the City’s
contributions of state aid received and passed through to the plan subsequent to the measurement date will
be recognized in the year ending December 31, 2019. Other amounts reported as deferred outflows and
inflows of resources related to the plan will be recognized in pension expense as follows:
Pension
Year Ending Expense
December 31,Amount
2019 (32,548)$
2020 (26,937)$
2021 (96,049)$
2022 (82,227)$
2023 16,183$
Thereafter 48,918$
E. Actuarial Assumptions
The total pension liability at December 31, 2017 was determined using the entry-age normal actuarial cost
method and the following actuarial assumptions:
Retirement eligibility at 100 percent service pension at age 50 with 20 years of
service, early vested retirement at age 50 with 10 years of service vested at
60 percent and increased by 4 percent for each additional year of service up to
20, and eligibility for deferred service pension payable at age 50 with 20 years
of service
Inflation rate 2.75%
Future interest rate on deferred member benefits 5.00%
Investment rate of return 7.25%
20-year municipal bond yield 3.31%
The expected investment rate of return and single discount rate decreased from 7.50 percent used in the
previous study to 7.25 percent to reflect updated capital market assumptions.
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NOTE 11 – DEFINED BENEFIT PENSION PLAN – FIRE RELIEF ASSOCIATION
(CONTINUED)
The 4 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 65.49 %5.39 %8.14 %
International equity 12.02 5.20 7.95
Fixed income 20.22 1.98 4.73
Real estate and alternatives 0.17 4.25 7.00
Cash and equivalents 2.10 0.79 3.54
Total 100.00 %7.25 %
Allocation
Target
Rate of Return
Expected Nominal
Long-TermLong-Term
Expected Real
Rate of Return
F. Discount Rate
The discount rate used to measure the total pension liability was 7.25 percent. The projection of cash
flows used to determine the discount rate assumed that contributions to the plan will be made as specified
in statutes. Based on that assumption and considering the funding ratio of the plan, the fiduciary net
position was projected to be available to make all projected future benefit payments of current active and
inactive members. Therefore, the long-term expected rate of return on pension plan investments was
applied to all periods of projected benefit payments to determine the total pension liability.
G. Pension Liability (Asset) Sensitivity
The following presents the City’s net pension liability (asset) for the plan, calculated using the discount
rate disclosed in the preceding page, as well as what the City’s net pension liability (asset) would be if it
were calculated using a discount rate 1 percent lower or 1 percent higher than the current discount rate:
1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
6.25%7.25%8.25%
Defined benefit plan (2,081,413)$ (2,180,799)$ (2,275,845)$
H. Pension Plan Fiduciary Net Position
The Association issues a publicly available financial report that includes financial statements and required
supplementary information. This report may be obtained at the Golden Valley City Hall.
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NOTE 12 – FLEXIBLE BENEFIT PLAN
The City offers three types of flexible spending accounts: medical premiums, medical expenses, and
dependent care expenses. Eligible employees can elect to participate by contributing pretax dollars
withheld from payroll checks to the plan for healthcare and dependent care benefits. Payments are made
from the plan to participating employees upon submitting a request for reimbursement of eligible
expenses actually incurred by the participant.
Before the beginning of the plan year, which is from January 1 to December 31, each participant
designates a total amount of pretax dollars to be contributed to the plan during the year . For the medical
expense account, the City is contingently liable for claims against the total amount of participants’ annual
contributions to the plan, whether or not such contributions have been made.
All plan activity is recorded in the City’s General Fund. Assets of the plan are held in the City’s payroll
checking account. Amounts withheld to pay for employee medical insurance premiums are administered
and paid out directly by the City’s finance department. Medical expense and dependent care expense
accounts are administered by the Stanton Group—a benefit consulting firm. Claims are made directly to
the Stanton Group by plan participants. The Stanton Group then reimburses the participants and bills the
City for these reimbursements.
All plan property and income attributable to that property is solely the property of the Ci ty subject to the
claims of the City’s general creditors. Participants’ rights under the plan are equal to those of general
creditors of the City in an amount equal to the eligible healthcare and dependent care expenses incurred
by the participants. The City believes it unlikely that it will use the assets to satisfy the claims of general
creditors in the future.
NOTE 13 – TAX INCREMENT FINANCING DISTRICTS AND TAX ABATEMENTS
The City is the administering authority for the following TIF districts:
North Wirth Highway 55 Cornerstone Winnetka/
Redevelopment West Creek Medicine Lake
District No. 1505 District No. 1506 District No. 1507 District No. 1508
Authorizing law M.S. 469 M.S. 469 M.S. 469 M.S. 469
Year established 2004 2013 2015 2015
First tax increment 2005 2017 2018 2018
Duration of district 25 years 15 years 25 years 25 years
Tax capacity – taxes payable 2018
Original 6,650$ 53,990$ 8,870$ 51,288$
Current 32,350 285,115 42,176 242,438
Captured – retained 25,700$ 231,125$ 33,306$ 191,150$
G.O. tax increment bonds issued –$ 1,170,000$ –$ –$
Principal payments – – – –
Outstanding at December 31, 2018 –$ 1,170,000$ –$ –$
The creation of TIF districts as authorized under Minnesota Statutes, Chapter 469.178, is a common
economic development vehicle used by the City to spur economic development and redevelopment. In
these districts, tax increment revenue is generated on the incremental increase in value of the improved
property above a base value established on the date that the TIF district is created, which may be used to
assist in financing the improvements to the property within the TIF district.
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NOTE 13 – TAX INCREMENT FINANCING DISTRICTS AND TAX ABATEMENTS
(CONTINUED)
The City may enter into private development and redevelopment agreements to encourage the
construction, expansion, or improvement of new or existing properties and buildings or clean-up and
redevelop blighted areas within these areas. These agreements may in substance be tax abatements
depending on their individual circumstances. The City currently has two such agreement s that would be
considered a tax abatement under GASB Statement No. 77.
In 2009, the City entered into a development agreement with a private developer for a property in the
North Wirth Redevelopment Tax Increment District. As part of this agreement, the City has agreed to
reimburse the developer for certain environmental remediation costs through a pay-as-you-go tax
increment note. The note provides for the payment of principal equal to the developer ’s costs, plus
interest at 6 percent. Payments of the note will be made at the lesser of the scheduled note payments or
the actual net tax increment received during the period specified in the agreement, ending February 1,
2027. The note will be cancelled at the end of the agreement term, whether it has been fully repaid or not.
This note is not included in the City’s long-term debt, because repayment is required only to the extent
sufficient tax increments are received. The City’s position is that this is an obligation to assign future and
uncertain revenue sources and, as such, is not actual debt in substance. The outstanding principal balance
of this note as of December 31, 2018 is $170,555, and tax increment revenue rebated was $24,905 for
2018.
In 2015, the City entered into a development agreement with a private developer for a property in the
Highway 55 West Tax Increment District. As part of this agreement, the City has agreed to reimburse the
developer for certain environmental remediation costs through a pay-as-you-go tax increment note. The
note provides for the payment of principal equal to the developer’s costs, plus interest at 5.5 percent.
Payments of the note will be made at the lesser of the scheduled note payments or the actual net tax
increment received during the period specified in the agreement. The note will be cancelled at the end of
the agreement term, whether it has been fully repaid or not. This note is not included in the City’s
long-term debt, because repayment is required only to the extent sufficient tax increments are received.
The City’s position is that this is an obligation to assign future and uncertain revenue sources and, as
such, is not actual debt in substance. The outstanding principal balance of this note as of December 31,
2017 is $2,621,755 and tax increment revenue rebated was $109,467 for 2018.
NOTE 14 – JOINT POWERS AGREEMENTS
A. Bassett Creek Water Management Commission
The City is a member of a joint powers agreement, together with the cities of Medicine Lake, Plymouth,
Robbinsdale, Minneapolis, Minnetonka, New Hope, Crystal, and St. Louis Park, which establishes the
authority for the Bassett Creek Water Management Commission (the Commission). The Commission was
created to provide for the improvement and development of Bassett Creek as a storm sewer to channel
storm waters from member communities to the Mississippi River. Each member city is entitled to appoint
one representative to the Commission. The nine-member commission develops a budget for the year each
July 1. Each member city contributes funds to cover the budgeted costs of the operations-based half on
the assessed valuation of all taxable property, and half on the total area each member city has within the
boundaries of the watershed. Any capital costs incurred by the Commission are apportioned to the
members-based half on the real property valuation of each member city within the watershed, and half on
the total area of each member city within the boundaries of the watershed.
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NOTE 14 – JOINT POWERS AGREEMENTS (CONTINUED)
The following financial information is from the Commission’s audited financial statements for the year
ended January 31, 2019, which are available at Golden Valley City Hall:
Total assets 5,635,676$
Total liabilities – all current 469,192
Net position 5,166,484$
Revenue 2,338,904$
Expenses 2,251,061
Change in net position 87,843$
Of the total revenue, $515,050 represented assessments to member cities. The City’s 2019 portion was
$134,649, or 26.1 percent, of total assessments paid by members.
B. Joint Water Commission (JWC)
The City is a member of a joint powers agreement, together with the cities of Crystal and New Hope,
which established a JWC. The JWC was created in 1963 to provide for the creation and maintenance of a
joint water supply, storage, and distribution system through which water purchased from the City of
Minneapolis can be supplied to the population of the member cities.
Each member city is entitled to appoint one member to the JWC. Original construction costs were
allocated to the member cities based on percentages agreed upon in the joint powers agreement. All
subsequent operating and maintenance costs are apportioned to and paid by each member city on the basis
of water usage. Under the terms of the joint powers agreement, upon termination the accumulated as sets
of the JWC shall be divided amongst the member cities in a manner to be determined and unanimously
approved by the member cities. Because the manner in which the JWC’s assets would be divided upon
termination is not specified, it is not practical for the City to determine its portion of JWC assets.
Therefore, the City’s Utility Enterprise Fund does not record any amount as an equity investment or
contributed capital (for construction costs paid by other funds) related to the JWC.
The following financial information is from the JWC’s audited financial statements for the year ended
December 31, 2018, which are available at Golden Valley City Hall:
Total assets 17,402,659$
Total liabilities 662,889
Net position 16,739,770$
Revenue 8,464,766$
Expenses 7,820,254
Change in net position 644,512$
Of the total revenues, $8,238,638 represented assessments paid by member cities. Of the total member
assessments, $3,481,028, or 42.3 percent, was paid by the City.
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NOTE 15 – CONTINGENCIES AND COMMITMENTS
A. Legal Claims
The City has the usual and customary type of miscellaneous legal claims pending at year-end. Although
the outcome of these lawsuits is not presently determinable, the City’s management believes that the City
will not incur any material monetary loss resulting from these claims . No loss has been recorded on the
City’s financial statements relating to these claims.
B. Federal and State Receivables
Amounts recorded or receivable from federal and state agencies are subject to agency audit and
adjustment. Any disallowed claims, including amounts already collected, may constitute a liability of the
applicable funds. The amount, if any, of claims which may be disallowed by the grantor agencies cannot
be determined at this time, although the City expects such amounts, if any, to be immaterial.
C. Tax Increment Districts
The City’s tax increment districts are subject to review by the Office of the State Auditor. Any disallowed
claims or misuse of tax increments could become a liability of the applicable fund. Management has
indicated that they are not aware of any instances of noncompliance, which would have a material effect
on the financial statements.
D. Construction Commitments
At December 31, 2018, the City is committed to various construction contracts for the improvement of
city property. The City’s remaining commitment under these contracts is approximately $965,973.
NOTE 16 – DEFICIT FUND BALANCES/NET POSITION
At December 31, 2018, the Winnetka/Medicine Lake Tax Increment Capital Project Fund reported a
deficit fund balance of $2,164,862. 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, 2018, the Payroll Benefits Internal Service Fund reported a deficit net position of
$11,073,639. The deficit is due to the fund reporting the City’s proportionate share of net pension
liabilities related to two state-wide, multiple-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 17 – SUBSEQUENT EVENTS
In May 2019, the City Council approved the competitive negotiated sale of an estimated $1,970,000 of
General Obligation Improvement Bonds, Series 2019A, with an anticipated sale date of June 18, 2019.
The proceeds of this issue will be used to fund the City’s annual pavement management program.
REQUIRED SUPPLEMENTARY INFORMATION
Proportionate
Share of the
City’s Net Pension
Proportionate Liability and City’s
Share of the the City’s Proportionate Plan Fiduciary
State of Share of the Share of the Net Position
City’s City’s Minnesota’s State of Net Pension as a
PERA Fiscal Proportion Proportionate Proportionate Minnesota’s Liability as a Percentage
Year-End Date of the Net Share of the Share of the Share of the City’s Percentage of of the Total
(Measurement Pension Net Pension Net Pension Net Pension Covered Covered Pension
Date)Liability Liability Liability Liability Payroll Payroll Liability
06/30/2015 0.1085% 5,623,033$ –$ –$ 6,374,138$ 88.22% 78.20%
06/30/2016 0.1072% 8,704,108$ 113,679$ 8,817,787$ 6,649,482$ 130.90% 68.90%
06/30/2017 0.1107% 7,067,015$ 88,825$ 7,155,840$ 7,128,621$ 99.14% 75.90%
06/30/2018 0.1088% 6,035,778$ 198,039$ 6,233,817$ 7,313,615$ 82.53% 79.50%
Contributions Contributions
in Relation to as a
Statutorily the Statutorily Contribution Percentage
Required Required Deficiency Covered of Covered
Contributions Contributions (Excess)Payroll Payroll
509,632$ 509,632$ –$ 6,795,097$ 7.50%
507,606$ 507,606$ –$ 6,768,463$ 7.50%
522,131$ 522,131$ –$ 6,961,749$ 7.50%
580,703$ 580,703$ –$ 7,742,669$ 7.50%
Note:
City Fiscal
Year-End Date
City Fiscal
Year-End Date
12/31/2015
12/31/2016
Schedule of City Contributions
PERA – General Employees Retirement Fund
12/31/2017
December 31, 2018
December 31, 2018
12/31/2018
The City implemented GASB Statement No.68 in fiscal 2015 (using a June 30,2015 measurement date).This schedule is intended to present
10-year trend information. Additional years will be added as they become available.
12/31/2016
CITY OF GOLDEN VALLEY
PERA – General Employees Retirement Fund
Schedule of City’s and Nonemployer Proportionate Share of Net Pension Liability
12/31/2015
12/31/2017
12/31/2018
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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
(Measurement Pension Net Pension Covered Covered Pension
Date)Liability Liability Payroll Payroll Liability
06/30/2015 0.3230% 3,670,036$ 2,955,388$ 124.18% 86.60%
06/30/2016 0.3190% 12,802,028$ 3,072,358$ 416.68% 63.90%
06/30/2017 0.3190% 4,306,880$ 3,274,040$ 131.55% 85.40%
06/30/2018 0.3157% 3,365,037$ 3,327,398$ 101.13% 88.80%
Contributions Contributions
in Relation to as a
Statutorily the Statutorily Contribution Percentage
Required Required Deficiency Covered of Covered
Contributions Contributions (Excess)Payroll Payroll
507,642$ 507,642$ –$ 3,133,590$ 16.20%
506,383$ 506,383$ –$ 3,125,427$ 16.20%
519,363$ 519,363$ –$ 3,205,941$ 16.20%
550,962$ 550,962$ –$ 3,400,997$ 16.20%
Note:
12/31/2016
The City implemented GASB Statement No.68 in fiscal 2015 (using a June 30,2015 measurement date).This
schedule is intended to present 10-year trend information.Additional years will be added as they become
available.
Schedule of City Contributions
City Fiscal
Year-End Date
12/31/2015
12/31/2017
December 31, 2018
12/31/2018
PERA – Public Employees Police and Fire Fund
CITY OF GOLDEN VALLEY
Schedule of City’s Proportionate Share of Net Pension Liability
PERA – Public Employees Police and Fire Fund
City Fiscal
Year-End Date
12/31/2015
12/31/2016
12/31/2017
December 31, 2018
12/31/2018
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City fiscal year-end date 2015 2016 2017 2018
year-end date (measurement date)2014 2015 2016 2017
Total pension liability
Service cost 158,309$ 162,663$ 169,611$ 165,540$
Interest 189,130 198,248 221,030 244,540
Difference between expected and actual experience – – 175,353 –
Changes in assumptions – (44,179) – 24,168
Changes of benefit terms – – 69,254 –
Benefit payments (332,858) (110,208) (307,251) (328,180)
Net change in total pension liability 14,581 206,524 327,997 106,068
Total pension liability – beginning 2,709,977 2,724,558 2,931,082 3,259,079
Total pension liability – ending 2,724,558$ 2,931,082$ 3,259,079$ 3,365,147$
Plan fiduciary net position
Contributions (state and local)143,581$ 148,972$ 153,252$ 161,767$
Net investment income 335,884 (20,626) 414,106 849,121
Benefit payments (332,858) (110,208) (307,251) (328,180)
Administrative costs (16,509) (15,827) (16,889) (12,778)
Net change in plan fiduciary net position 130,098 2,311 243,218 669,930
Total plan fiduciary net position – beginning 4,500,389 4,630,487 4,632,798 4,876,016
Total plan fiduciary net position – ending 4,630,487$ 4,632,798$ 4,876,016$ 5,545,946$
Net pension liability (asset) – ending (1,905,929)$ (1,701,716)$ (1,616,937)$ (2,180,799)$
Plan fiduciary net position as a percentage
of the total pension liability 169.95%158.06%149.61%164.81%
Note: The City implemented GASB Statement No.68 in fiscal 2015 (using a December 31,2014 measurement date).This
schedule is intended to present 10-year trend information. Additional years will be added as they become available.
Golden Valley Fire Department Relief Association
CITY OF GOLDEN VALLEY
Golden Valley Fire Department Relief Association
Schedule of Changes in Net Pension Asset and Related Ratios
December 31, 2018
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Nonemployer
Statutorily Contribution
Required Actual Contribution State 2%
Contributions Contributions Excess Fire Aid
1,141$ 1,141$ –$ 142,440$
–$ –$ –$ 148,972$
–$ –$ –$ 153,252$
–$ –$ –$ 161,767$
–$ –$ –$ 167,606$
Note:
December 31, 2018
CITY OF GOLDEN VALLEY
Golden Valley Fire Department Relief Association
Schedule of City Contributions and Nonemployer Contributing Entities
City Contributions
2016
The City implemented GASB Statement No.68 in fiscal 2015 (using a December 31,2014 measurement date).
This schedule is intended to present 10-year trend information.Additional years will be added as they become
available.
City Fiscal
Year Ended
December 31,
2014
2015
2017
2018
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2018
Total OPEB liability
Service cost 133,055$
Interest 71,708
Changes of assumptions 50,539
Benefit payments (72,237)
Net change in total OPEB liability 183,065
Total OPEB liability – beginning of year 1,800,103
Total OPEB liability – end of year 1,983,168$
Covered payroll 9,700,000$
Total OPEB liability as a percentage of covered payroll 20.45%
Note 2: The City implemented GASB Statement No.75 in fiscal 2018.This schedule is intended to
present 10-year trend information. Additional years will be added as they become available.
CITY OF GOLDEN VALLEY
Schedule of Changes in the City’s Total
OPEB Liability and Related Ratios
Other Post-Employment Benefits Plan
Year Ended December 31, 2018
There are no plan assets accumulated in a trust that meets the criteria in paragraph 4 of
GASB Statement No. 75 to pay these benefits.
Note 1:
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CITY OF GOLDEN VALLEY
Notes to Required Supplementary Information
December 31, 2018
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PERA – GENERAL EMPLOYEES RETIREMENT FUND
2018 CHANGES IN ACTUARIAL ASSUMPTIONS:
• The mortality projection scale was changed from MP-2015 to MP-2017.
• The assumed benefit increase was changed from 1.00 percent per year through 2044, and 2.50 percent
per year thereafter, to 1.25 percent per year.
2017 CHANGES IN PLAN PROVISIONS:
• The state’s special funding contribution increased from $6 million to $16 million.
2017 CHANGES IN ACTUARIAL ASSUMPTIONS:
• The Combined Service Annuity (CSA) loads were changed from 0.80 percent for active members and
60.00 percent for vested and nonvested deferred members. The revised CSA loads are now zero percent
for active member liability, 15.00 percent for vested deferred member liability, and 3.00 percent for
nonvested deferred member liability.
• The assumed post-retirement benefit increase rate was changed from 1.00 percent per year for all years,
to 1.00 percent per year through 2044, and 2.50 percent per year thereafter.
2016 CHANGES IN ACTUARIAL ASSUMPTIONS:
• The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through
2035, and 2.50 percent per year thereafter, to 1.00 percent per year for all years.
• The assumed investment return was changed from 7.90 percent to 7.50 percent. The single discount
rate was changed from 7.90 percent to 7.50 percent.
• Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed
future salary increases, payroll growth, and inflation were decreased by 0.25 percent , to 3.25 percent
for payroll growth, and 2.50 percent for inflation.
2015 CHANGES IN PLAN PROVISIONS:
• On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General
Employees Retirement Fund, which increased the total pension liability by $1.1 billion and increased
the fiduciary plan net position by $892 million. Upon consolidation, state and employer contributions
were revised.
2015 CHANGES IN ACTUARIAL ASSUMPTIONS:
• The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through
2030, and 2.50 percent per year thereafter, to 1.00 percent per year through 2035, and 2.50 percent per
year thereafter.
CITY OF GOLDEN VALLEY
Notes to Required Supplementary Information (continued)
December 31, 2018
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PERA – PUBLIC EMPLOYEES POLICE AND FIRE FUND
2018 CHANGES IN ACTUARIAL ASSUMPTIONS:
• The mortality projection scale was changed from MP-2016 to MP-2017.
• As set by state statutes, the assumed post-retirement benefit increase was changed from 1.00 percent
per year through 2064, and 2.50 percent per year thereafter, to 1.00 percent for all years with no trigger.
2017 CHANGES IN ACTUARIAL ASSUMPTIONS:
• Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The
net effect is proposed rates that average 0.34 percent lower than the previous rates.
• Assumed rates of retirement were changed, resulting in fewer retirements.
• The CSA load was 30.00 percent for vested and nonvested deferred members. The CSA has been
changed to 33.00 percent for vested members, and 2.00 percent for nonvested members.
• The base mortality table for healthy annuitants was changed from the RP-2000 Fully Generational
Table to the RP-2014 Fully Generational Table (with a base year of 2006), with male rates adjusted by
a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The
base mortality table for disabled annuitants was changed from the RP -2000 Disabled Mortality Table
to the mortality tables assumed for healthy retirees.
• Assumed termination rates were decreased to 3.00 percent for the first three years of service. Rates
beyond the select period of three years were adjusted, resulting in more expected terminations overall.
• Assumed percentage of married female members was decreased from 65.00 percent to 60.00 percent.
• Assumed age difference was changed from separate assumptions for male members (wives assumed to
be three years younger) and female members (husbands assumed to be four years older) to the
assumption that males are two years older than females.
• The assumed percentage of female members electing joint and survivor annuities was increased.
• The assumed post-retirement benefit increase rate was changed from 1.00 percent for all years, to
1.00 percent per year through 2064, and 2.50 percent thereafter.
• The single discount rate changed from 5.60 percent to 7.50 percent.
CITY OF GOLDEN VALLEY
Notes to Required Supplementary Information (continued)
December 31, 2018
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PERA – PUBLIC EMPLOYEES POLICE AND FIRE FUND (CONTINUED)
2016 CHANGES IN ACTUARIAL ASSUMPTIONS:
• The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through
2037, and 2.50 percent thereafter, to 1.00 percent per year for all future years.
• The assumed investment return was changed from 7.90 percent to 7.50 percent. The single discount
rate changed from 7.90 percent to 5.60 percent.
• The assumed future salary increases, payroll growth, and inflation were decreased by 0.25 percent to
3.25 percent for payroll growth, and 2.50 percent for inflation.
2015 CHANGES IN PLAN PROVISIONS:
• The post-retirement benefit increase to be paid after attainment of the 90.00 percent funding threshold
was changed from inflation up to 2.50 percent, to a fixed rate of 2.50 percent.
2015 CHANGES IN ACTUARIAL ASSUMPTIONS:
• The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through
2030, and 2.50 percent per year thereafter, to 1.00 percent per year through 2037, and 2.50 percent per
year thereafter.
GOLDEN VALLEY FIRE DEPARTMENT RELIEF ASSOCIATION
2018 CHANGES IN ACTUARIAL ASSUMPTIONS:
• The actuarial assumptions for the single discount rate decreased from 7.50 percent to 7.25 percent.
2017 CHANGES IN PLAN PROVISIONS:
• The plan benefit level increased from $7,500 to $8,000 per year of service.
2016 CHANGES IN ACTUARIAL ASSUMPTIONS:
• The actuarial assumptions for the single discount rate increased from 7.00 percent to 7.50 percent.
OTHER POST-EMPLOYMENT BENEFIT PLAN
2018 CHANGES IN ACTUARIAL ASSUMPTIONS:
• The actuarial assumptions for the single discount increased 4.50 percent to 3.44 percent.
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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.
Cemetery – used to account for monies received from cemetery plot sales. These funds are restricted for
maintenance of the City-owned cemetery.
DWI Enforcement – used to account for monies received from DWI-related fines and forfeitures. These
funds are restricted for DWI enforcement and education.
VOTF – used to account for grants and other funding restricted for the Violent Offenders Task Force.
HRA General – used to account for the general activities of the City’s HRA, a blended component unit.
Brookview – used to account for the revenues and expenditures of the Brookview Community Center
facility.
Lodging Tax – used to account for lodging taxes submitted by hotels and motels in the City and the
disbursement of those taxes.
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.
Brookview Lease Revenue Bonds – used to account for accumulation of, resources for, and payment of
debt service on bonds sold to finance the construction of the Brookview Community Center.
Douglas Drive Reconstruction Bonds – used to account for accumulation of, resources for, and payment
of debt service on bonds sold to finance the reconstruction of Douglas Drive.
Highway 55 West Bonds – used to account for accumulation of, resources for, and payment of debt
service on bonds sold to finance improvements on Highway 55 West.
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CAPITAL PROJECT FUNDS
Building Fund – used to provide financing for major capital improvements made to the City’s buildings.
Street Reconstruction Capital Project Fund – 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.
Brookview Fund – This fund is used to account for the construction of the City’s new Brookview
Community Center.
HRA Capital Project Funds – used to account for the activity of the City’s HRA housing program and
the redevelopment activity in the City’s tax increment districts: North Wirth No. 1505, Highway 55 West
No. 1506, and Cornerstone Creek No. 1507.
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Special Revenue Debt Service Capital Project Totals
Assets
Cash and temporary investments 1,164,207$ 3,726,084$ 13,681,262$ 18,571,553$
Receivables
Special assessments –270,931 408,404 679,335
Accounts 107,650 –569,110 676,760
Due from other funds –66,398 157,568 223,966
Due from other governmental units 5,761 –253,203 258,964
Total assets 1,277,618$ 4,063,413$ 15,069,547$ 20,410,578$
Liabilities
Accounts payable 26,998$ –$ 63,064$ 90,062$
Contracts payable – – 326,815 326,815
Due to other governmental units 2,966 – 642 3,608
Deposits 381,691 –209,774 591,465
Due to other funds – – 252,278 252,278
Unearned revenue – – 48,399 48,399
Total liabilities 411,655 –900,972 1,312,627
Deferred inflows of resources
Unavailable revenue – special assessments –270,931 408,404 679,335
Fund balances
Restricted 652,339 3,792,482 7,586,194 12,031,015
Committed 213,624 – – 213,624
Assigned – – 6,173,977 6,173,977
Total fund balances 865,963 3,792,482 13,760,171 18,418,616
Total liabilities, deferred inflows of
resources, and fund balances 1,277,618$ 4,063,413$ 15,069,547$ 20,410,578$
CITY OF GOLDEN VALLEY
Nonmajor Governmental Funds
Combining Balance Sheet
December 31, 2018
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Special Revenue Debt Service Capital Project Totals
Revenue
Ad valorem taxes –$ 1,218,300$ –$ 1,218,300$
Tax increments – – 380,304 380,304
Special assessments – 59,506 312,512 372,018
Franchise taxes – 370,000 356,780 726,780
Intergovernmental revenue 47,277 – 2,246,503 2,293,780
Charges for services 394,069 – –394,069
Investment income 11,642 40,755 239,907 292,304
Other revenue
Lawful gambling proceeds 41,551 – – 41,551
Miscellaneous 160,940 – 430,183 591,123
Total revenue 655,479 1,688,561 3,966,189 6,310,229
Expenditures
Current
General government 88,166 – – 88,166
Public safety 58,998 – – 58,998
Parks and recreation 400,001 – – 400,001
Capital outlay 5,315 – 12,500,997 12,506,312
Debt service
Principal – 1,820,000 125,000 1,945,000
Interest and fiscal charges – 828,576 59,981 888,557
Total expenditures 552,480 2,648,576 12,685,978 15,887,034
Excess (deficiency) of revenue
over expenditures 102,999 (960,015) (8,719,789) (9,576,805)
Other financing sources (uses)
Sale of capital assets – – 239,795 239,795
Bonds issued – – 2,897,595 2,897,595
Transfers in 69,222 927,526 4,249,661 5,246,409
Transfers (out)(152,572) – (1,600,014) (1,752,586)
Total other financing sources (uses)(83,350) 927,526 5,787,037 6,631,213
Net change in fund balances 19,649 (32,489) (2,932,752) (2,945,592)
Fund balances
Beginning of year 846,314 3,824,971 16,692,923 21,364,208
End of year 865,963$ 3,792,482$ 13,760,171$ 18,418,616$
CITY OF GOLDEN VALLEY
Nonmajor Governmental Funds
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances
Year Ended December 31, 2018
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Human DWI
Service Cemetery Enforcement VOTF
Assets
Cash and temporary investments 215,243$ 85,466$ 21,307$ 107,874$
Receivables
Accounts 4,011 – – –
Due from other
governmental units – – – 5,761
Total assets 219,254$ 85,466$ 21,307$ 113,635$
Liabilities
Accounts payable 5,630$ –$ 250$ –$
Deposits – – – –
Due to other governmental units – – – –
Total liabilities 5,630 – 250 –
Fund balances
Restricted for cemetery maintenance – 85,466 – –
Restricted for DWI enforcement – –21,057 –
Restricted for VOTF – –– 113,635
Restricted for redevelopment – –– –
Restricted for Brookview – –– –
Restricted for lodging tax – –– –
Committed for human service needs 213,624 – – –
Total fund balances 213,624 85,466 21,057 113,635
Total liabilities and fund balances 219,254$ 85,466$ 21,307$ 113,635$
CITY OF GOLDEN VALLEY
Nonmajor Special Revenue Funds
Combining Balance Sheet
December 31, 2018
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HRA Lodging
General Brookview Tax Totals
428,271$ 277,401$ 28,645$ 1,164,207$
– 92,064 11,575 107,650
– – – 5,761
428,271$ 369,465$ 40,220$ 1,277,618$
–$ 721$ 20,397$ 26,998$
251,564 130,127 – 381,691
– 2,966 – 2,966
251,564 133,814 20,397 411,655
– – – 85,466
– – – 21,057
– – – 113,635
176,707 – – 176,707
– 235,651 – 235,651
– –19,823 19,823
– –– 213,624
176,707 235,651 19,823 865,963
428,271$ 369,465$ 40,220$ 1,277,618$
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Human DWI
Service Cemetery Enforcement VOTF
Revenue
Intergovernmental revenue –$ –$ –$ 47,277$
Charges for services – – – –
Investment income 3,322 1,283 903 486
Other revenue
Lawful gambling proceeds 41,551 – – –
Miscellaneous 31,118 2,000 88,833 –
Total revenue 75,991 3,283 89,736 47,763
Expenditures
Current
General government
Operating supplies 17,641 – – –
Professional services 58,250 – – –
Public safety
Salaries – – 1,201 –
Operating supplies – – 54,447 3,350
Parks and recreation
Salaries – – – –
Operating supplies – – – –
Capital outlay – – 5,315 –
Total expenditures 75,891 – 60,963 3,350
Excess (deficiency) of
revenue over expenditures 100 3,283 28,773 44,413
Other financing sources (uses)
Transfers in – – – 69,222
Transfers (out)– – (152,572)–
Total other financing sources (uses)– – (152,572) 69,222
Net change in fund balances 100 3,283 (123,799) 113,635
Fund balances
Beginning of year 213,524 82,183 144,856 –
End of year 213,624$ 85,466$ 21,057$ 113,635$
CITY OF GOLDEN VALLEY
Nonmajor Special Revenue Funds
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances
Year Ended December 31, 2018
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HRA Lodging
General Brookview Tax Totals
–$ –$ –$ 47,277$
– 394,069 – 394,069
1,655 3,791 202 11,642
– – – 41,551
– 28,343 10,646 160,940
1,655 426,203 10,848 655,479
– – – 17,641
12,275 – – 70,525
– – – 1,201
– – – 57,797
– 315,024 – 315,024
– 84,977 – 84,977
– –– 5,315
12,275 400,001 – 552,480
(10,620) 26,202 10,848 102,999
– – – 69,222
– – – (152,572)
– – – (83,350)
(10,620) 26,202 10,848 19,649
187,327 209,449 8,975 846,314
176,707$ 235,651$ 19,823$ 865,963$
-87-
Certificates Tax Brookview Douglas Drive
of Abatement Lease Revenue Reconstruction Hwy 55 West
Indebtedness Bonds Bonds Bonds Bonds Totals
Assets
Cash and temporary investments 660,636$ 729,451$ 1,406,179$ 631,806$ 298,012$ 3,726,084$
Receivables
Special assessments – – – – 270,931 270,931
Due from other funds – – – – 66,398 66,398
Total assets 660,636$ 729,451$ 1,406,179$ 631,806$ 635,341$ 4,063,413$
Deferred inflows of resources
Unavailable revenue –
special assessments – – – – 270,931 270,931
Fund balances
Restricted for debt service 660,636 729,451 1,406,179 631,806 364,410 3,792,482
Total deferred inflows of
resources and fund balances 660,636$ 729,451$ 1,406,179$ 631,806$ 635,341$ 4,063,413$
CITY OF GOLDEN VALLEY
Nonmajor Debt Service Funds
Combining Balance Sheet
December 31, 2018
-88-
Certificates Tax Brookview Douglas Drive
of Abatement Lease Revenue Reconstruction Hwy 55 West
Indebtedness Bonds Bonds Bonds Bonds Totals
Revenue
Ad valorem taxes –$ –$ 1,218,300$ –$ –$ 1,218,300$
Special assessments – – – – 59,506 59,506
Franchise taxes – – – 370,000 – 370,000
Investment income 10,153 11,545 10,228 5,012 3,817 40,755
Total revenue 10,153 11,545 1,228,528 375,012 63,323 1,688,561
Expenditures
Debt service
Principal 780,000 340,000 475,000 225,000 – 1,820,000
Interest and fiscal charges 51,567 6,250 574,811 148,662 47,286 828,576
Total expenditures 831,567 346,250 1,049,811 373,662 47,286 2,648,576
Excess (deficiency) of
revenue over expenditures (821,414) (334,705) 178,717 1,350 16,037 (960,015)
Other financing sources
Transfers in 882,580 – – – 44,946 927,526
Net change in fund balances 61,166 (334,705) 178,717 1,350 60,983 (32,489)
Fund balances
Beginning of year 599,470 1,064,156 1,227,462 630,456 303,427 3,824,971
End of year 660,636$ 729,451$ 1,406,179$ 631,806$ 364,410$ 3,792,482$
CITY OF GOLDEN VALLEY
Nonmajor Debt Service Funds
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances
Year Ended December 31, 2018
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Street Cable Park Capital Equipment
Building Reconstruction Improvement Improvement Replacement
Assets
Cash and temporary investments 1,146,083$ 5,177,060$ 286,716$ 376,586$ 3,142,855$
Receivables
Special assessments – – – – –
Accounts – 550,917 – – 1,000
Due from other funds – – – – –
Due from other governmental units – – – – –
Total assets 1,146,083$ 5,727,977$ 286,716$ 376,586$ 3,143,855$
Liabilities
Accounts payable 1,132$ 55,905$ –$ 3,540$ 2,487$
Contracts payable 21,827 101,426 – 57,380 –
Due to other governmental units – – – – –
Deposits – 30,125 – – –
Due to other funds – – – – –
Unearned revenue – – – – –
Total liabilities 22,959 187,456 – 60,920 2,487
Deferred inflows of resources
Unavailable revenue –
special assessments – – – – –
Fund balances
Restricted for redevelopment – – – – –
Restricted for street improvements – 4,620,594 – – –
Assigned for cable improvements – – 286,716 – –
Assigned for park improvements – – – 315,666 –
Assigned for equipment replacement – – – – 3,141,368
Assigned for street improvements – 919,927 – – –
Assigned for capital improvements 1,123,124 – – – –
Total fund balances 1,123,124 5,540,521 286,716 315,666 3,141,368
Total liabilities, deferred inflows
of resources, and fund balances 1,146,083$ 5,727,977$ 286,716$ 376,586$ 3,143,855$
CITY OF GOLDEN VALLEY
Nonmajor Capital Project Funds
Combining Balance Sheet
December 31, 2018
-90-
North Wirth Cornerstone
State Aid HRA Capital No. 3 Hwy 55 West Creek
Construction Brookview Project Tax Increment Tax Increment Tax Increment Totals
2,991,282$ –$ 104,252$ 25,988$ 407,727$ 22,713$ 13,681,262$
408,404 – – – – – 408,404
17,193 – – – – – 569,110
157,568 – – – – – 157,568
226,375 – – 4,121 – 22,707 253,203
3,800,822$ –$ 104,252$ 30,109$ 407,727$ 45,420$ 15,069,547$
–$ –$ –$ –$ –$ –$ 63,064$
146,182 – – – – – 326,815
642 – – – – – 642
– – – 25,347 110,013 44,289 209,774
– – – 597 251,086 595 252,278
48,399 – – – – – 48,399
195,223 – – 25,944 361,099 44,884 900,972
408,404 – – – – – 408,404
– – 104,252 4,165 46,628 536 155,581
2,810,019 – – – – – 7,430,613
– – – – – – 286,716
– – – – – – 315,666
– – – – – – 3,141,368
387,176 – – – – – 1,307,103
– – – – – – 1,123,124
3,197,195 – 104,252 4,165 46,628 536 13,760,171
3,800,822$ –$ 104,252$ 30,109$ 407,727$ 45,420$ 15,069,547$
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Street Cable Park Capital Equipment
Building Reconstruction Improvement Improvement Replacement
Revenue
Tax increments –$ –$ –$ –$ –$
Special assessments – – – – –
Franchise taxes – 356,780 – – –
Intergovernmental revenue – – – – –
Investment income 18,006 68,019 4,058 9,888 56,042
Other revenue
Miscellaneous – 152,920 38,668 174,100 23,763
Total revenue 18,006 577,719 42,726 183,988 79,805
Expenditures
Capital outlay
Street – 2,977,090 – – –
City buildings and grounds 324,722 – – 1,043,345 –
Equipment – – – – 2,422,497
HRA projects – – – – –
Total capital outlay 324,722 2,977,090 – 1,043,345 2,422,497
Debt service
Principal – – – – –
Interest and fiscal charges – – – – –
Total debt service – – – – –
Total expenditures 324,722 2,977,090 – 1,043,345 2,422,497
Excess (deficiency) of
revenue over expenditures (306,716) (2,399,371) 42,726 (859,357) (2,342,692)
Other financing sources (uses)
Sale of capital assets – – – – 239,795
Bonds issued – 2,897,595 – – –
Transfers in 351,132 2,183,155 – 300,000 130,000
Transfers (out)– – – – –
Total other financing
sources (uses)351,132 5,080,750 – 300,000 369,795
Net change in fund balances 44,416 2,681,379 42,726 (559,357) (1,972,897)
Fund balances
Beginning of year 1,078,708 2,859,142 243,990 875,023 5,114,265
End of year 1,123,124$ 5,540,521$ 286,716$ 315,666$ 3,141,368$
CITY OF GOLDEN VALLEY
Nonmajor Capital Project Funds
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances
Year Ended December 31, 2018
-92-
North Wirth Cornerstone
State Aid HRA Capital No. 3 Hwy 55 West Creek
Construction Brookview Project Tax Increment Tax Increment Tax Increment Totals
–$ –$ –$ 19,750$ 315,141$ 45,413$ 380,304$
312,512 – – – – – 312,512
– – – – – – 356,780
2,246,503 – – – – – 2,246,503
53,495 10,313 396 44 19,639 7 239,907
31,907 8,825 – – – – 430,183
2,644,417 19,138 396 19,794 334,780 45,420 3,966,189
3,675,153 – – – – – 6,652,243
– 1,741,749 – – – – 3,109,816
– – – – – – 2,422,497
– – – 25,502 246,055 44,884 316,441
3,675,153 1,741,749 – 25,502 246,055 44,884 12,500,997
125,000 – – – – – 125,000
59,981 – – – – – 59,981
184,981 – – – – – 184,981
3,860,134 1,741,749 – 25,502 246,055 44,884 12,685,978
(1,215,717) (1,722,611) 396 (5,708) 88,725 536 (8,719,789)
– – – – – – 239,795
– – – – – – 2,897,595
1,265,281 20,093 – – – – 4,249,661
– (1,132) – – (1,598,882)– (1,600,014)
1,265,281 18,961 – – (1,598,882) – 5,787,037
49,564 (1,703,650) 396 (5,708) (1,510,157) 536 (2,932,752)
3,147,631 1,703,650 103,856 9,873 1,556,785 – 16,692,923
3,197,195$ –$ 104,252$ 4,165$ 46,628$ 536$ 13,760,171$
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2017
Final Over (Under)
Budget Actual Budget Actual
Revenue
Taxes
Ad valorem 17,253,460$ 17,160,214$ (93,246)$ 14,822,062$
Penalties and interest – 21,223 21,223 31,559
Total taxes 17,253,460 17,181,437 (72,023) 14,853,621
Special assessments 10,000 6,156 (3,844) 14,506
Licenses and permits
Licenses 220,980 240,215 19,235 249,439
Permits 1,001,433 1,538,106 536,673 2,892,471
Total licenses and permits 1,222,413 1,778,321 555,908 3,141,910
Intergovernmental revenue
Federal grants – 21,427 21,427 19,785
State grants 52,375 88,508 36,133 350,477
Total intergovernmental revenue 52,375 109,935 57,560 370,262
Charges for services
General government 25,250 33,476 8,226 50,794
Police 116,900 162,794 45,894 105,499
Fire 44,000 33,398 (10,602) 46,546
Physical development 163,600 195,484 31,884 151,526
Parks and recreation 415,550 417,045 1,495 384,840
Other funds 691,500 779,122 87,622 766,528
Total charges for services 1,456,800 1,621,319 164,519 1,505,733
Fines and forfeitures 320,000 379,708 59,708 400,233
Investment income 75,000 180,776 105,776 102,007
Other revenue
Rents 173,200 234,067 60,867 187,545
Miscellaneous 9,800 12,411 2,611 20,606
Total other revenue 183,000 246,478 63,478 208,151
Total revenue 20,573,048$ 21,504,130$ 931,082$ 20,596,423$
2018
CITY OF GOLDEN VALLEY
General Fund
Schedule of Revenue – Budget and Actual
Year Ended December 31, 2018
(With Comparative Actual Amounts for the Year Ended December 31, 2017)
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Final Personal Supplies and
Budget Services Services Capital Outlay
Expenditures
General government
City Council 370,935$ 191,784$ 133,324$ –$
City manager 839,100 686,222 61,495 –
Legal service 209,655 201,477 – –
Total general government 1,419,690 1,079,483 194,819 –
Administrative services 1,986,970 985,408 977,755 –
Casualty insurance 310,000 – 318,934 –
Public safety
Police 6,204,575 4,829,375 794,627 8,486
Fire 1,561,150 1,037,348 312,402 7,601
Total public safety 7,765,725 5,866,723 1,107,029 16,087
Physical development
Administration 309,505 282,832 9,963 –
Building operations 732,680 53,435 607,507 11,414
Engineering 776,095 419,420 321,591 5,130
Street maintenance 1,790,925 866,600 917,715 –
Park maintenance 1,215,945 842,609 327,361 –
Inspections 811,280 608,508 143,520 –
Planning 409,655 296,036 25,288 –
Total physical development 6,046,085 3,369,440 2,352,945 16,544
Parks and recreation
Administration 737,210 616,326 98,940 –
Recreation programs 445,385 160,126 220,745 –
Total parks and recreation 1,182,595 776,452 319,685 –
Total expenditures 18,711,065$ 12,077,506$ 5,271,167$ 32,631$
2018
Actual
CITY OF GOLDEN VALLEY
General Fund
Schedule of Expenditures – Budget and Actual
Year Ended December 31, 2018
(With Comparative Actual Amounts for the Year Ended December 31, 2017)
-95-
2017
Over (Under)
Total Budget Actual
325,108$ (45,827)$ 306,907$
747,717 (91,383) 726,963
201,477 (8,178) 206,807
1,274,302 (145,388) 1,240,677
1,963,163 (23,807) 1,860,542
318,934 8,934 225,617
5,632,488 (572,087) 5,544,701
1,357,351 (203,799) 1,348,890
6,989,839 (775,886) 6,893,591
292,795 (16,710) 293,559
672,356 (60,324) 533,166
746,141 (29,954) 733,272
1,784,315 (6,610) 1,408,173
1,169,970 (45,975) 1,153,229
752,028 (59,252) 714,043
321,324 (88,331) 317,174
5,738,929 (307,156) 5,152,616
715,266 (21,944) 738,561
380,871 (64,514) 352,646
1,096,137 (86,458) 1,091,207
17,381,304$ (1,329,761)$ 16,464,250$
2018
Actual
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INTERNAL SERVICE FUNDS
Workers’ Compensation Fund – used to account for the financing of all of the City’s workers’
compensation benefits.
Payroll Benefits Fund – used to account for the financing of all of the City’s employee benefits, such as
compensated absences, pension contributions, other-post-employment benefits, and termination pay.
Vehicle Maintenance Fund – used to account for the maintenance of motor vehicles of all departments
and related costs.
Workers’Payroll Vehicle
Compensation Benefits Maintenance Totals
Assets
Current assets
Cash and temporary investments 156,052$ 2,241,509$ 63,417$ 2,460,978$
Receivables
Accounts – 7,008 – 7,008
Inventory – –84,563 84,563
Total current assets 156,052 2,248,517 147,980 2,552,549
Noncurrent assets
Net pension asset – fire relief – 2,180,799 – 2,180,799
Capital assets
Machinery and equipment – – 259,406 259,406
Less accumulated depreciation – – (170,253) (170,253)
Total noncurrent assets – 2,180,799 89,153 2,269,952
Total assets 156,052 4,429,316 237,133 4,822,501
Deferred outflows of resources
Pension plan deferments – PERA – 5,805,936 – 5,805,936
Pension plan deferments – fire relief – 329,035 – 329,035
OPEB plan deferments – 107,353 – 107,353
Total deferred outflows of resources – 6,242,324 – 6,242,324
Total assets and deferred outflows of resources 156,052$ 10,671,640$ 237,133$ 11,064,825$
Liabilities
Current liabilities
Accounts payable –$ 3,628$ 15,759$ 19,387$
Accrued compensated absences – current – 1,153,639 – 1,153,639
Due to other governmental units – –122 122
Deposits – 9,432 – 9,432
Total current liabilities – 1,166,699 15,881 1,182,580
Noncurrent liabilities
Accrued compensated absences – 463,501 – 463,501
Net pension liability – PERA – 9,400,815 – 9,400,815
Total OPEB liability – 1,983,168 – 1,983,168
Total noncurrent liabilities – 11,847,484 – 11,847,484
Total liabilities – 13,014,183 15,881 13,030,064
Deferred inflows of resources
Pension plan deferments – PERA – 8,229,401 – 8,229,401
Pension plan deferments – fire relief – 501,695 – 501,695
Total deferred inflows of resources – 8,731,096 – 8,731,096
Net position
Net investment in capital assets – – 89,153 89,153
Restricted for fire relief pensions – 2,008,139 – 2,008,139
Unrestricted 156,052 (13,081,778) 132,099 (12,793,627)
Total net position 156,052 (11,073,639) 221,252 (10,696,335)
Total liabilities, deferred inflows
of resources, and net position 156,052$ 10,671,640$ 237,133$ 11,064,825$
CITY OF GOLDEN VALLEY
Internal Service Funds
Combining Statement of Net Position
December 31, 2018
-98-
Workers’Payroll Vehicle
Compensation Benefits Maintenance Totals
Operating revenue
Charges to other funds 420,000$ 5,830,243$ 413,266$ 6,663,509$
Payroll benefits charged to employees – 1,389,314 – 1,389,314
Total operating revenue 420,000 7,219,557 413,266 8,052,823
Operating expenses
Workers’ compensation charges 406,615 – – 406,615
Payroll benefits charges – 7,497,690 – 7,497,690
Vehicle maintenance operations – –388,369 388,369
Depreciation – –25,751 25,751
Total operating expenses 406,615 7,497,690 414,120 8,318,425
Operating income (loss)13,385 (278,133) (854) (265,602)
Nonoperating revenue
Intergovernmental revenue – 521,576 – 521,576
Investment income – 35,723 854 36,577
Other income – 18,316 – 18,316
Total nonoperating revenue – 575,615 854 576,469
Change in net position 13,385 297,482 – 310,867
Net position
Beginning of year, as previously reported 142,667 (10,621,601) 221,252 (10,257,682)
Change in accounting principle – (749,520) – (749,520)
Beginning of year, as restated 142,667 (11,371,121) 221,252 (11,007,202)
End of year 156,052$ (11,073,639)$ 221,252$ (10,696,335)$
CITY OF GOLDEN VALLEY
Internal Service Funds
Combining Statement of Revenue, Expenses, and Changes in Net Position
Year Ended December 31, 2018
-99-
Workers’Payroll Vehicle
Compensation Benefits Maintenance Totals
Cash flows from operating activities
Receipts from customers and users –$ 1,389,314$ –$ 1,389,314$
Receipts from interfund services provided 420,000 5,848,296 413,266 6,681,562
Paid to suppliers/service providers (406,615) (5,440,657) (135,099) (5,982,371)
Paid to employees – (2,272,846) (276,054) (2,548,900)
Net cash flows from operating activities 13,385 (475,893) 2,113 (460,395)
Cash flows from investing activities
Interest received on investments – 35,723 854 36,577
Cash flows from noncapital financing activities
Intergovernmental revenue – 521,576 – 521,576
Net increase (decrease) in cash and
temporary investments/cash equivalents 13,385 81,406 2,967 97,758
Cash and temporary investments/cash equivalents
Beginning of year 142,667 2,160,103 60,450 2,363,220
End of year 156,052$ 2,241,509$ 63,417$ 2,460,978$
Reconciliation of operating income (loss) to net
cash flows from operating activities
Operating income (loss)13,385$ (278,133)$ (854)$ (265,602)$
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities
Depreciation – – 25,751 25,751
Other income – 18,316 – 18,316
Changes in assets, liabilities,
and deferred outflows/inflows
Accounts receivable – (263) – (263)
Inventory – –(1,977) (1,977)
Net pension asset – fire relief – (563,862) – (563,862)
Deferred outflows – pension and OPEB plans – 2,204,946 – 2,204,946
Accounts payable – (3,648) (20,872) (24,520)
Due to other governmental units – –65 65
Deposits – 1,160 – 1,160
Accrued compensated absences – 31,518 – 31,518
Net pension liability – PERA – (1,973,080) – (1,973,080)
Total OPEB liability – 183,065 – 183,065
Deferred inflows – pension and OPEB plans – (95,912) – (95,912)
Net cash from operating activities 13,385$ (475,893)$ 2,113$ (460,395)$
CITY OF GOLDEN VALLEY
Internal Service Funds
Combining Statement of Cash Flows
Year Ended December 31, 2018
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OTHER CITY INFORMATION
Accounted for Current Amount
Budget in Prior Years Year Remaining
Sources of funds
Tax increments received 920,000$ 305,423$ 19,750$ 594,827$
Real estate sales 575,000 523,431 – 51,569
Interest earnings – 3,910 44 (3,954)
Total sources of funds 1,495,000 832,764 19,794 642,442
Uses of funds
Land and building acquisition – 180,640 24,905 (205,545)
Site preparation and improvements 1,000,000 621,721 597 377,682
Administrative costs – 16,058 – (16,058)
Interest and fiscal costs 495,000 4,472 – 490,528
Total uses of funds 1,495,000 822,891 25,502 646,607
Funds remaining (deficit)–$ 9,873$ (5,708)$ (4,165)$
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 $567,685 original purchase price that was paid by the
North Wirth Parkway No. 1501 Tax Increment Financing District prior to the establishment of this district.
CITY OF GOLDEN VALLEY
Schedule of Sources and Uses of Public Funds
for North Wirth Parkway No. 1505, a Tax Increment Financing District
Year Ended December 31, 2018
Real estate sales
-101-
Accounted for Current Amount
Budget in Prior Years Year Remaining
Sources of funds
Bond proceeds –$ 2,008,681$ –$ (2,008,681)$
Tax increments received 8,814,808 – 315,141 8,499,667
Special assessments – 237,277 59,506 (296,783)
Interest earnings – 6,450 23,456 (29,906)
Total sources of funds 8,814,808 2,252,408 398,103 6,164,297
Uses of funds
Site acquisition and improvements 4,545,891 374,454 1,799,045 2,372,392
Administrative costs 881,480 1,078 946 879,456
Interest and fiscal costs 3,387,437 16,664 47,286 3,323,487
Total uses of funds 8,814,808 392,196 1,847,277 6,575,335
Funds remaining (deficit)–$ 1,860,212$ (1,449,174)$ (411,038)$
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, 2018
-102-
Accounted for Current Amount
Budget in Prior Years Year Remaining
Sources of funds
Tax increments received 1,535,716$ –$ 45,413$ 1,490,303$
Interest earnings – – 7 (7)
Total sources of funds 1,535,716 – 45,420 1,490,296
Uses of funds
Site acquisition and improvements 687,975 – 44,884 643,091
Administrative costs 171,571 – –171,571
Interest and fiscal costs 676,170 – –676,170
Total uses of funds 1,535,716 – 44,884 1,490,832
Funds remaining (deficit)–$ –$ 536$ (536)$
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, 2018
-103-
Accounted for Current Amount
Budget in Prior Years Year Remaining
Sources of funds
Tax increments received 19,052,584$ –$ 266,201 18,786,383$
Uses of funds
Site improvements – utilities 7,913,693 1,000,536 1,315,666 5,597,491
Administrative costs 1,945,145 – – 1,945,145
Interest and fiscal costs 9,193,746 66,111 48,750 9,078,885
Total uses of funds 19,052,584 1,066,647 1,364,416 16,621,521
Funds remaining (deficit)–$ (1,066,647)$ (1,098,215)$ 2,164,862$
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, 2018
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STATISTICAL SECTION
(UNAUDITED)
Page
Contents:
Financial Trends 106
Revenue Capacity 118
Debt Capacity 123
Demographic and Economic Information 131
Operating Indicators 133
Source: Unless otherwise noted, the information in these schedules is derived from the CAFR for the relevant year.
These schedules contain service and infrastructure data to help the reader understand how the information
in the City’s financial report relates to the services the City provides, and the activities it performs.
STATISTICAL SECTION (UNAUDITED)
This part of the City of Golden Valley,Minnesota’s (the City) 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.
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Fiscal Year
2009 2010 2011 2012
Governmental activities
Net investment in capital assets 24,388,008$ 21,635,548$ 22,753,481$ 22,622,764$
Restricted 28,061,624 22,187,677 23,045,045 26,673,032
Unrestricted (3,510,363) 5,812,640 5,903,464 7,499,559
Total governmental activities net position 48,939,269$ 49,635,865$ 51,701,990$ 56,795,355$
Business-type activities
Net investment in capital assets 23,564,184$ 24,838,885$ 27,268,683$ 27,416,740$
Unrestricted 16,572,658 17,231,676 16,430,056 17,508,592
Total business-type activities net position 40,136,842$ 42,070,561$ 43,698,739$ 44,925,332$
Primary government
Net investment in capital assets 47,952,192$ 46,474,433$ 50,022,164$ 50,039,504$
Restricted 28,061,624 22,187,677 23,045,045 26,673,032
Unrestricted 13,062,295 23,044,316 22,333,520 25,008,151
Total primary government net position 89,076,111$ 91,706,426$ 95,400,729$ 101,720,687$
Note 1:
Note 2:
Note 3:
The City implemented GASB Statement No.68 in 2015,resulting in a restatement of beginning net position for the
effects of implementing this standard. Net position for previous years has not been restated.
The City implemented GASB Statement No.75 in 2018,resulting in a restatement of beginning net position for the
effects of implementing this standard. Net position for previous years has not been restated.
CITY OF GOLDEN VALLEY
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
The City implemented GASB Statement No.65 in 2012.Net position for 2011 was restated for the effect of
implementing this standard. Net position for previous years has not been restated.
-106-
2013 2014 2015 2016 2017 2018
21,829,745$ 21,499,939$ 24,816,606$ 23,527,470$ 24,239,358$ 27,973,471$
29,535,846 29,553,484 17,942,353 18,567,757 21,342,170 24,401,665
9,306,292 14,349,901 15,401,264 12,900,989 14,755,485 11,015,315
60,671,883$ 65,403,324$ 58,160,223$ 54,996,216$ 60,337,013$ 63,390,451$
28,427,621$ 29,588,257$ 30,101,294$ 31,809,835$ 35,854,260$ 36,950,518$
18,562,323 16,164,578 14,010,619 17,561,589 16,068,264 19,689,949
46,989,944$ 45,752,835$ 44,111,913$ 49,371,424$ 51,922,524$ 56,640,467$
50,257,366$ 51,088,196$ 54,917,900$ 55,337,305$ 60,093,618$ 64,923,989$
29,535,846 29,553,484 17,942,353 18,567,757 21,342,170 24,401,665
27,868,615 30,514,479 29,411,883 30,462,578 30,823,749 30,705,264
107,661,827$ 111,156,159$ 102,272,136$ 104,367,640$ 112,259,537$ 120,030,918$
-107-
Fiscal Year
2009 2010 2011 2012
Expenses
Governmental activities
General government 3,271,352$ 3,801,269$ 3,319,661$ 3,121,543$
Public safety 6,298,431 6,585,990 6,490,371 6,906,449
Physical development 8,322,099 9,864,540 9,720,753 9,758,495
Parks and recreation 1,476,771 1,338,155 1,335,562 1,692,346
Interest and fiscal charges 3,544,117 3,272,726 2,930,757 2,724,495
Total governmental activities expenses 22,912,770 24,862,680 23,797,104 24,203,328
Business-type activities
Water and sewer 6,952,047 6,561,335 8,474,883 8,023,803
Storm sewer 1,299,813 1,239,080 1,176,603 1,383,594
Golf course 1,770,491 1,736,551 1,708,984 1,724,174
Motor vehicle licensing 409,032 423,423 260,583 154,492
Recycling 349,100 290,818 218,145 299,809
Total business-type activities expenses 10,780,483 10,251,207 11,839,198 11,585,872
Total primary government expenses 33,693,253$ 35,113,887$ 35,636,302$ 35,789,200$
Program revenues
Governmental activities
Charges for services
General government 264,357$ 273,318$ 277,901$ 263,035$
Public safety 1,194,484 1,311,914 1,609,601 1,628,076
Physical development 352,630 337,146 360,307 400,773
Parks and recreation 340,072 379,356 438,349 614,164
Operating grants and contributions 294,902 410,767 413,826 464,187
Capital grants and contributions 1,097,097 1,831,662 2,498,297 3,595,000
Total governmental activities program
revenues 3,543,542 4,544,163 5,598,281 6,965,235
Business-type activities
Charges for services
Water and sewer 7,638,314 7,391,493 8,636,333 8,217,582
Storm sewer 2,265,937 2,279,840 2,279,633 2,256,336
Golf course 1,719,611 1,676,136 1,580,954 1,765,186
Motor vehicle licensing 534,559 531,074 138,936 92,626
Recycling 220,829 220,809 266,858 276,190
Operating grants and contributions 139,432 177,601 463,650 128,893
Capital grants and contributions 56,081 – 191,686 32,162
Total business-type activities program
revenues 12,574,763 12,276,953 13,558,050 12,768,975
Total primary government program revenues 16,118,305$ 16,821,116$ 19,156,331$ 19,734,210$
CITY OF GOLDEN VALLEY
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
-108-
2013 2014 2015 2016 2017 2018
2,914,823$ 3,066,025$ 11,327,689$ 4,182,777$ 3,260,989$ 3,633,644$
7,310,946 6,831,136 6,907,661 8,213,351 8,128,614 7,979,009
10,325,068 11,396,748 13,448,443 11,274,790 11,539,091 12,019,371
1,588,798 1,545,616 1,486,218 1,736,619 2,205,615 2,710,862
2,633,359 2,456,490 2,066,076 2,172,554 2,321,780 1,947,173
24,772,994 25,296,015 35,236,087 27,580,091 27,456,089 28,290,059
7,611,927 9,867,531 9,867,731 8,327,113 8,395,036 9,374,281
1,589,410 1,944,935 1,795,260 1,685,494 2,526,607 1,861,392
1,645,728 1,693,028 1,848,745 2,172,621 2,348,327 3,235,267
326,382 326,201 349,019 401,363 405,407 399,060
410,808 393,280 392,239 407,664 389,472 408,286
11,584,255 14,224,975 14,252,994 12,994,255 14,064,849 15,278,286
36,357,249$ 39,520,990$ 49,489,081$ 40,574,346$ 41,520,938$ 43,568,345$
279,725$ 276,782$ 263,205$ 223,237$ 238,339$ 267,543$
1,861,481 1,837,076 1,985,746 2,155,832 3,460,736 2,132,083
407,938 342,809 415,395 400,351 565,550 663,328
594,142 534,821 594,130 489,959 443,632 981,624
559,246 538,956 600,264 643,970 1,444,260 1,261,435
1,882,698 2,028,250 6,377,610 1,578,699 2,689,043 3,140,938
5,585,230 5,558,694 10,236,350 5,492,048 8,841,560 8,446,951
7,831,307 7,751,250 8,266,107 8,814,629 9,574,647 10,482,578
2,274,549 2,278,128 2,281,125 2,241,536 2,328,336 2,446,828
1,502,897 1,543,151 2,071,141 2,106,472 2,059,405 2,956,984
304,424 347,382 395,718 457,275 453,215 435,698
276,099 323,184 331,630 378,934 389,894 391,131
495,451 701,605 209,831 167,557 966,871 395,134
852,075 – – 1,561,135 1,227,470 398,387
13,536,802 12,944,700 13,555,552 15,727,538 16,999,838 17,506,740
19,122,032$ 18,503,394$ 23,791,902$ 21,219,586$ 25,841,398$ 25,953,691$
-109-(continued)
Fiscal Year
2009 2010 2011 2012
Net (expense) revenue
Governmental activities (19,369,228)$ (20,318,517)$ (18,198,823)$ (17,238,093)$
Business-type activities 1,794,280 2,025,746 1,718,852 1,183,103
Total primary government net expense (17,574,948)$ (18,292,771)$ (16,479,971)$ (16,054,990)$
General revenues and other changes in net position
Governmental activities
Property taxes 20,727,498$ 20,143,891$ 19,752,048$ 20,946,972$
Franchise taxes – – 581,600 621,585
Unrestricted grants and contributions 13,693 27,386 27,386 –
Other general revenues 263,702 350,183 336,139 353,033
Investment earnings 552,835 250,723 300,813 214,493
Gain on sale of capital assets 55,611 44,330 156,161 76,852
Transfers 267,000 198,600 198,600 118,523
Total governmental activities 21,880,339 21,015,113 21,352,747 22,331,458
Business-type activities
Franchise taxes – – – –
Other general revenues – 5,330 558 65,978
Investment earnings 219,267 101,243 142,204 96,035
Transfers (267,000) (198,600) (198,600) (118,523)
Total business-type activities (47,733) (92,027) (55,838) 43,490
Total primary government 21,832,606$ 20,923,086$ 21,296,909$ 22,374,948$
Changes in net position
Governmental activities 2,511,111$ 696,596$ 3,153,924$ 5,093,365$
Business-type activities 1,746,547 1,933,719 1,663,014 1,226,593
Total primary government 4,257,658$ 2,630,315$ 4,816,938$ 6,319,958$
CITY OF GOLDEN VALLEY
Changes in Net Position (continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
-110-
2013 2014 2015 2016 2017 2018
(19,187,764)$ (19,737,321)$ (24,999,737)$ (22,088,043)$ (18,614,529)$ (19,843,108)$
1,952,547 (1,280,275) (697,442) 2,733,283 2,934,989 2,228,454
(17,235,217)$ (21,017,596)$ (25,697,179)$ (19,354,760)$ (15,679,540)$ (17,614,654)$
21,757,173$ 22,616,003$ 21,934,817$ 19,473,750$ 21,419,195$ 22,825,055$
904,928 1,048,227 1,028,368 402,017 687,773 836,780
– – – – – –
338,245 286,108 372,590 347,543 291,837 264,266
112,817 347,197 221,237 313,888 522,746 788,823
24,735 71,227 18,337 56,838 3,775 80,997
(73,606) 100,000 100,000 (1,670,000) 1,030,000 (1,149,855)
23,064,292 24,468,762 23,675,349 18,924,036 23,955,326 23,646,066
– – – 700,000 400,000 1,000,000
– – – – – –
38,459 142,866 122,591 156,228 246,111 339,634
73,606 (100,000) (100,000) 1,670,000 (1,030,000) 1,149,855
112,065 42,866 22,591 2,526,228 (383,889) 2,489,489
23,176,357$ 24,511,628$ 23,697,940$ 21,450,264$ 23,571,437$ 26,135,555$
3,876,528$ 4,731,441$ (1,324,388)$ (3,164,007)$ 5,340,797$ 3,802,958$
2,064,612 (1,237,409) (674,851) 5,259,511 2,551,100 4,717,943
5,941,140$ 3,494,032$ (1,999,239)$ 2,095,504$ 7,891,897$ 8,520,901$
-111-
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Ad Valorem
Property Taxes Tax Increments Franchise Taxes Total
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
19,449,023 24,727 402,017 19,875,767
21,398,275 20,920 687,773 22,106,968
22,178,550 646,505 836,780 23,661,835
Fiscal Year
2015
2009
2010
2011
2012
2013
2014
2016
2017
2018
CITY OF GOLDEN VALLEY
Governmental Activities Tax Revenues by Source
Last Ten Fiscal Years
(Accrual Basis of Accounting)
-112-
Fiscal Year
2009 2010 2011 2012
General Fund
Reserved –$ 90,000$ –$ –$
Unreserved 8,985,030 8,913,423 – –
Nonspendable – – 45,000 –
Assigned – – 1,778,352 1,560,000
Unassigned – – 7,395,646 7,756,057
Total General Fund 8,985,030$ 9,003,423$ 9,218,998$ 9,316,057$
All other governmental funds
Reserved 13,598,736$ 9,673,542$ –$ –$
Unreserved, reported in
Special revenue funds 159,243 183,065 – –
Capital project funds 14,296,961 14,216,671 – –
Debt service funds 14,391,151 12,624,401 – –
Nonspendable – – – –
Restricted – – 29,472,220 33,693,776
Committed – – 928,337 687,458
Assigned – – 7,345,999 8,106,763
Unassigned, reported in
Capital project funds – – – –
Total all other governmental funds 42,446,091$ 36,697,679$ 37,746,556$ 42,487,997$
Note: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
(Modified Accrual Basis of Accounting)
-113-
2013 2014 2015 2016 2017 2018
–$ –$ –$ –$ –$ –$
– – – – – –
– 1,256 7,617 18,822 3,610 –
1,500,000 1,500,000 2,000,000 2,000,000 2,000,000 2,045,000
8,207,985 8,640,108 8,719,447 8,954,274 10,400,239 11,014,502
9,707,985$ 10,141,364$ 10,727,064$ 10,973,096$ 12,403,849$ 13,059,502$
–$ –$ –$ –$ –$ –$
– – – – – –
– – – – – –
– – – – – –
– – 285 – – –
43,287,123 47,308,126 33,222,298 44,457,090 32,513,969 26,311,344
718,723 743,633 202,270 208,846 213,524 213,624
7,032,562 7,224,030 11,357,732 11,702,718 13,355,185 10,183,554
– – (41,288) (1,023,153) (1,066,647) (2,164,862)
51,038,408$ 55,275,789$ 44,741,297$ 55,345,501$ 45,016,031$ 34,543,660$
-114-
Fiscal Year
2009 2010 2011 2012
Revenues
Taxes 15,316,495$ 15,760,353$ 15,791,136$ 16,378,425$
Tax increments 5,322,240 4,344,739 3,993,985 4,627,924
Special assessments 1,781,804 1,415,935 1,389,200 1,273,820
Franchise taxes – – 581,600 621,585
Licenses and permits 839,306 872,669 1,161,906 1,223,848
Intergovernmental 741,496 643,328 951,285 3,452,180
Charges for services 1,808,325 1,722,697 1,631,110 1,876,117
Fines and forfeits 210,181 284,600 303,908 351,413
Investment income 510,028 236,086 281,770 201,966
Other revenue 555,088 678,249 637,606 617,366
Total revenues 27,084,963 25,958,656 26,723,506 30,624,644
Expenditures
General government 1,377,347 1,774,439 1,379,620 1,297,470
Administrative services 1,423,084 1,460,063 1,460,704 1,513,689
Casualty insurance 223,209 277,016 255,536 237,152
Public safety 5,824,971 5,879,957 6,010,214 6,462,507
Physical development 3,854,331 3,732,546 3,901,808 4,083,857
Parks and recreation 1,039,353 1,033,593 1,068,002 1,183,579
Capital outlay – not capitalized 420,753 1,432,608 1,049,696 1,003,343
Construction/acquisition of capital assets 8,336,626 4,646,495 3,659,158 5,533,344
Debt service
Principal retirement 7,085,000 7,620,000 6,235,000 5,185,000
Interest and fiscal charges 3,520,776 3,517,239 3,110,626 2,944,445
Total expenditures 33,105,450 31,373,956 28,130,364 29,444,386
Excess of revenues
over (under) expenditures (6,020,487) (5,415,300) (1,406,858) 1,180,258
Other financing sources (uses)
Sale of capital assets 90,075 82,420 236,593 83,669
Bonds issued 8,055,000 4,530,000 2,495,000 2,300,000
Refunding bonds issued 10,345,000 – 4,870,000 5,960,000
Premiums (discounts) on debt issues 448,103 109,261 291,117 166,050
Payments to refunded bond escrow agent – (4,935,000) (5,420,000) (4,970,000)
Transfers in 6,290,970 4,650,385 3,402,570 4,448,233
Transfers (out)(6,023,970) (4,751,785) (3,203,970) (4,329,710)
Total other financing sources (uses)19,205,178 (314,719) 2,671,310 3,658,242
Net change in fund balances 13,184,691$ (5,730,019)$ 1,264,452$ 4,838,500$
Debt service as a percentage of noncapital
expenditures 42.8%41.7%38.2%34.0%
CITY OF GOLDEN VALLEY
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
-115-
2013 2014 2015 2016 2017 2018
16,847,769$ 17,334,800$ 21,874,958$ 19,539,516$ 21,388,915$ 22,175,461$
4,834,563 5,184,262 23,439 24,727 20,920 646,505
1,223,120 1,217,205 1,060,839 806,891 1,106,697 1,050,049
904,928 1,048,227 1,028,368 402,017 687,773 836,780
1,496,453 1,479,304 1,626,113 1,859,208 3,141,910 1,778,321
984,620 1,410,427 4,717,848 1,554,964 2,181,104 3,032,083
1,889,478 1,718,592 1,607,143 1,544,898 1,577,194 2,070,277
366,059 310,318 354,066 283,483 400,233 379,708
107,763 328,554 209,866 302,230 503,416 752,246
650,750 716,133 879,395 727,904 679,913 883,449
29,305,503 30,747,822 33,382,035 27,045,838 31,688,075 33,604,879
1,268,041 1,310,190 9,340,987 1,299,871 1,325,205 1,362,468
1,558,386 1,682,784 1,712,183 1,812,545 1,860,542 1,963,163
222,559 240,918 169,213 154,842 225,617 318,934
6,594,376 6,156,396 6,116,997 6,563,064 6,937,709 7,048,837
4,142,979 5,051,206 4,790,646 5,188,881 5,152,616 5,738,929
1,183,263 1,028,809 1,092,198 1,078,032 1,192,679 1,496,138
1,575,739 1,779,425 3,943,954 1,262,482 1,501,845 2,025,000
4,623,106 5,043,790 8,312,307 10,192,081 22,281,092 11,046,962
6,295,000 8,720,000 9,320,000 4,960,000 4,905,000 5,715,000
2,833,093 2,695,660 2,405,710 2,305,673 2,460,593 2,426,163
30,296,542 33,709,178 47,204,195 34,817,471 47,842,898 39,141,594
(991,039) (2,961,356) (13,822,160) (7,771,633) (16,154,823) (5,536,715)
80,875 222,432 53,442 80,627 143,274 239,795
2,485,000 3,085,000 2,670,000 25,130,000 5,330,000 2,950,000
9,100,000 3,950,000 6,600,000 – 4,100,000 –
452,503 274,684 164,926 1,026,242 537,832 31,117
(2,085,000) – (5,715,000) (6,945,000) (3,885,000) (6,345,000)
6,448,710 6,545,710 5,742,041 2,551,950 4,144,838 5,276,409
(6,548,710) (6,445,710) (5,642,041) (3,221,950) (3,114,838) (6,432,324)
9,933,378 7,632,116 3,873,368 18,621,869 7,256,106 (4,280,003)
8,942,339$ 4,670,760$ (9,948,792)$ 10,850,236$ (8,898,717)$ (9,816,718)$
35.6%39.8%30.1%29.5%28.8%29.0%
-116-
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Ad Valorem
Property Tax Tax Increments Franchise Tax Total
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
19,539,516 24,727 402,017 19,966,260
21,388,915 20,920 687,773 22,097,608
22,175,461 646,505 836,780 23,658,746
Fiscal Year
2015
2009
2010
2011
2012
2013
2014
2016
2017
2018
CITY OF GOLDEN VALLEY
General Governmental Tax Revenues by Source
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
-117-
Net Decrease
From Fiscal Decrease From
Real Property Personal Property Disparities Tax Increments
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)
40,233,072 433,290 (5,880,892) (21,325)
42,748,968 472,938 (6,636,623) (21,692)
45,436,776 505,617 (6,748,649) (472,613)
(1)
Source:Hennepin County
2014
CITY OF GOLDEN VALLEY
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
2009
Tax Capacities (1)
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
2013
2015
2016
2012
2011
2010
2018
2017
-118-
Total City Tax
Applied Capacity Estimated Actual
Tax Capacity Rate Applied Taxable Value
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
34,764,145 54.45 3,097,563,064 1.12
36,563,591 56.11 3,271,878,353 1.12
38,721,131 55.15 3,523,108,955 1.10
Value as a
AssessedTax Capacities (1)
Actual Value
Percentage of
-119-
Total Direct
and
Hennepin Special Overlapping
General Levy Debt Levy City Total County ISD No. 281 Districts Rates
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
39.72 14.73 54.45 45.36 33.83 10.43 144.07
39.08 17.03 56.11 44.09 31.61 10.20 142.01
42.87 12.28 55.15 42.81 31.96 8.98 138.90
Total Direct
and
Hennepin Special Overlapping
General Levy Debt Levy City Total County ISD No. 270 Districts Rates
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
39.72 14.73 54.45 45.36 28.51 10.43 138.75
39.08 17.03 56.11 44.09 25.61 10.20 136.01
42.87 12.28 55.15 42.81 29.03 8.98 135.97
(1)
(2)
Source:Hennepin County
Direct Rates
Year
2011
2016
Overlapping rates are those of local and county governments that apply to property owners within the City.Not all
overlapping rates apply to all city property owners (e.g.,the rates for special districts apply only to the proportion of the
government’s property owners whose property is located within the geographic boundaries of the special district).
2012
2013
2014
2015
Overlapping Rates
CITY OF GOLDEN VALLEY
Property Tax Rates (1)
Direct and Overlapping (2) Governments
Last Ten Fiscal Years
Year
For the City/ISD No. 281
Overlapping RatesDirect Rates
2009
2010
2017
2018
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.
2009
2010
2013
2016
2015
2014
2012
2017
2018
For the City/ISD No. 270
2011
-120-
Net Tax Net Tax
Capacity Rank Capacity Rank
General Mills, Inc.1,930,320$ 1 5.0 %2,302,740$ 1 6.9 %
Allianz Life Insurance Company 1,561,430 2 4.0 1,604,470 2 4.8
DRA Advisors, LLC 1,474,910 3 3.8 – – –
Golden Jack, LLC 1,118,645 4 2.9 666,910 4 2.0
Menards, Inc.379,250 5 1.0 – – –
TCA Real Estate, LLC 336,890 6 0.9 – – –
UnitedHealthcare 305,490 7 0.8 560,010 6 1.7
North Wirth Associates 280,090 8 0.7 – – –
Honeywell Incorporated 274,750 9 0.7 – – –
The Luther Company, LLP 273,890 10 0.7 467,130 7 1.4
Teacher’s Insurance and Annuity – – – 1,012,696 3 3.0
Hines REIT – – – 567,050 5 1.7
Valley Creek Development, LLC – – – 397,550 8 1.2
Lupient Enterprises – – – 389,680 9 1.2
G.H. Tennant Company – – – 337,700 10 1.0
Total 7,935,665$ 20.5 %8,305,936$ 24.9 %
Source:Hennepin County
Current Year and Nine Years Ago
Principal Property Taxpayers
CITY OF GOLDEN VALLEY
Percentage of
2018 2009
Percentage of
Applied Tax
CapacityTaxpayerCapacity
Applied Tax
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Total Tax Collections in
Levy for Subsequent
Fiscal Year (2)Amount (3)Years (4)Amount
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 99.1 151,812 16,929,626 100.0
17,403,839 17,242,324 99.1 159,610 17,401,934 100.0
18,546,364 18,391,561 99.2 129,666 18,521,227 99.9
19,603,886 19,511,104 99.5 82,085 19,593,189 100.0
21,314,250 21,246,826 99.7 37,026 21,283,852 99.9
22,365,161 22,297,307 99.7 – 22,297,307 99.7
(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.
2018
2017
Total Collections to Date
Property Tax Levies and Collections (1)
2016
2014
Last Ten Fiscal Years
of Levy
Ended
2012
2011
2015
2010
2013
2009
December 31,
Percentage
Collected Within the
CITY OF GOLDEN VALLEY
Fiscal Year
of Levy
Percentage
Fiscal Year of the Levy
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Special Street Certificates Tax Tax Lease
Assessment Reconstruction of Abatement Increment State Aid Revenue
Bonds Bonds Indebtedness Bonds Bonds Street Bonds Bonds
62,125,000$ –$ 2,235,000$ 3,405,000$ 18,580,000$ 2,385,000$ –$
58,205,000 – 2,190,000 3,080,000 14,940,000 2,290,000 –
56,640,000 – 2,100,000 2,750,000 12,735,000 2,190,000 –
56,350,000 – 2,095,000 2,420,000 11,565,000 2,090,000 –
62,230,000 – 2,145,000 2,075,000 9,290,000 1,985,000 –
65,320,000 – 2,205,000 1,705,000 4,935,000 1,875,000 –
64,860,000 – 2,295,000 1,360,000 – 1,760,000 –
55,455,000 5,630,000 2,350,000 1,015,000 – 1,640,000 17,410,000
55,340,000 5,630,000 2,400,000 670,000 1,170,000 1,520,000 17,410,000
48,175,000 5,405,000 1,620,000 330,000 1,170,000 1,395,000 16,935,000
(1)
Note:
Last Ten Fiscal Years
Ratios of Outstanding Debt by Type
CITY OF GOLDEN VALLEY
2016
2011
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.
Governmental Activities
2009
2012
2013
2014
2015
2017
2018
Fiscal Year
2010
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Net Net
Premiums Utility Premiums Total Primary
(Discounts)Total Revenue Bonds (Discounts)Total Government Per Capita (1)
562,329$ 89,292,329$ 3,750,000$ –$ 3,750,000$ 93,042,329$ 8.10 %4,581$
590,508 81,295,508 3,470,000 – 3,470,000 84,765,508 7.70 4,161
785,719 77,200,719 3,175,000 – 3,175,000 80,375,719 7.16 3,935
819,122 75,339,122 2,870,000 – 2,870,000 78,209,122 6.59 3,789
1,116,249 78,841,249 2,550,000 – 2,550,000 81,391,249 6.68 3,935
1,221,767 77,261,767 1,040,000 – 1,040,000 78,301,767 6.21 3,766
1,200,577 71,475,577 910,000 – 910,000 72,385,577 5.25 3,356
2,043,531 85,543,531 2,580,000 41,745 2,621,745 88,165,276 6.27 4,090
2,352,017 86,492,017 2,580,000 39,688 2,619,688 89,111,705 6.11 4,117
2,084,966 77,114,966 2,580,000 37,631 2,617,631 79,732,597 5.18 3,683
Business-Type
ActivitiesGovernmental Activities
Percentage
Income (1)
of Personal
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Less Amounts
General Restricted for
Obligation Repaying
Bonds (1)Principal (2)Total Per Capita (4)
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 2,014
85,543,531 21,578,026 63,965,505 2.07 2,967
86,492,017 23,277,113 63,214,904 1.93 2,920
77,114,966 16,334,331 60,780,635 1.73 2,808
(1)
(2)
(3)
(4)
Note:
2009
2012
of Property (3)
2014
Fiscal Year
2010
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.
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
2016
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.
2017
2018
CITY OF GOLDEN VALLEY
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Taxable Value
Estimated Actual
Percentage of
-125-
Estimated
Debt Share of
Outstanding (1)Overlapping Debt
Direct debt
City of Golden Valley 77,114,966$ 100.00 %77,114,966$
Overlapping debt
ISD No. 270, Hopkins 178,684,351 19.27 34,432,474
ISD No. 281, Robbinsdale 189,776,056 19.19 36,418,025
ISD No. 283, St. Louis Park 120,593,922 0.03 36,178
Hennepin County 1,056,890,798 2.49 26,316,581
Hennepin Suburban Park District 43,575,708 3.48 1,516,435
Hennepin Regional RR Authority 24,600,380 3.48 856,093
Metropolitan Council 75,902,689 1.18 895,652
Total overlapping debt 1,690,023,904$ 100,471,438
Total direct and overlapping debt 177,586,404$
Percentage
Governmental Unit
Source:
Applicable (1)
Note:
(1)Special assessment, tax abatement, tax increment, lease revenue, and state-aid street bonds have been included in
this table because property taxes will be used to pay the debt on these issues should other revenue sources fail to
provide adequate amounts.
Overlapping governments are those that coincide,at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the
residents and businesses of the City. This process recognizes that, when considering the City’s ability to issue and
repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account.
However, this does not imply that every taxpayer is a resident and, therefore, responsible for repaying the debt of
each overlapping government.
Hennepin County Taxpayer Services
CITY OF GOLDEN VALLEY
Direct and Overlapping Governmental Activities Debt
as of December 31, 2018
Estimated
-126-
Fiscal Year
2009 2010 2011 2012
Debt limit 102,771,441$ 98,227,905$ 90,147,258$ 84,881,071$
Total net debt applicable to the limit 1,987,568 1,918,389 1,793,550 1,784,770
Legal debt margin 100,783,873$ 96,309,516$ 88,353,708$ 83,096,301$
Total net debt applicable to the limit
as a percentage of the debt limit 1.93% 1.95% 1.99% 2.10%
Note:Under state finance law,the City’s outstanding general obligation debt should not exceed 3 percent of total market
property value.By law,the general obligation debt subject to the limitation may be offset by amounts set aside for
repaying general obligation bonds.
CITY OF GOLDEN VALLEY
Legal Debt Margin Information
Last Ten Fiscal Years
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2013 2014 2015 2016 2017 2018
82,331,677$ 81,576,962$ 88,034,330$ 92,926,892$ 98,156,351$ 105,693,269$
2,927,363 2,833,906 1,712,141 7,032,733 6,800,074 5,732,558
79,404,314$ 78,743,056$ 86,322,189$ 85,894,159$ 91,356,277$ 99,960,711$
3.56% 3.47% 1.94% 7.57% 6.93% 5.42%
Market value 3,523,108,955$
Debt limit (3% of market value)105,693,269
Total bonded debt 77,610,000$
Less
Debt not payable primarily from tax levies
Special assessment bonds 48,175,000
Tax abatement bonds 330,000
Tax increment bonds 1,170,000
State aid street bonds 1,395,000
Lease revenue bonds 16,935,000
Utility revenue bonds 2,580,000
Fund balances available for tax supported debt 1,292,442
Total net debt applicable to the limit 5,732,558
Legal debt margin 99,960,711$
Legal Debt Margin Calculation for Fiscal Year 2018
-128-
Less Operating Net Available
Gross Revenue Expenses Revenue Principal Interest
2,350,982$ 1,121,715$ 1,229,267$ 270,000$ 165,227$
2,321,983 1,074,191 1,247,792 280,000 154,595
2,755,829 1,037,944 1,717,885 295,000 140,299
2,384,379 1,269,110 1,115,269 305,000 128,123
2,502,536 1,470,273 1,032,263 320,000 118,749
2,483,612 1,871,604 612,008 1,510,000 (2)94,968
2,455,263 1,748,165 707,098 130,000 41,718
2,406,073 1,567,226 838,847 910,000 (3)90,099
3,330,505 2,465,516 864,989 – 50,191
2,952,615 1,803,506 1,149,109 – 63,950
(1)
(2)
(3)
(4)
Note:
2017
2009
CITY OF GOLDEN VALLEY
Pledged Revenue Coverage
Last Ten Fiscal Years
Fiscal Year
Debt Service
Details regarding the City’s outstanding debt can be found in the notes to basic financial statements.Gross revenue
includes investment earnings and intergovernmental grants. Operating expenses do not include interest.
Excludes principal refunded from the proceeds of refunding bond issues.
Revenue Bonds (1)
In 2014,the City used available funds to exercise an early call provision and retire $1,180,000 of utility revenue
bonds before their stated maturity dates.
Utility revenue bonds, payable from the Storm Sewer Utility Fund.
In 2016,the City used available funds to exercise an early call provision and retire $775,000 of utility revenue bonds
before their stated maturity dates.
2016
2015
2014
2013
2012
2011
2010
2018
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Special
Assessment
Coverage Collections Principal (4)Interest Coverage
2.82 1,733,879$ 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
0.84 667,606 3,750,000 1,826,001 0.12
17.23 1,039,971 3,675,000 1,510,438 0.20
17.97 731,351 3,770,000 1,404,916 0.14
Special Assessment Bonds
Debt Service
-130-
Per Capita
Personal Personal School
Population (1)Income (2)Income (3)Enrollment (4)
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
21,571 1,378,408,471 63,901 2,115 3.2
21,556 1,406,119,436 65,231 1,994 3.6
21,646 1,459,524,842 67,427 2,074 2.9
21,646 1,538,316,282 71,067 2,085 2.8
Sources:
(1)Metropolitan Council – Regional Statistics and Data except for 2018 – City estimate.
(2)
(3)
(4)
(5)
2009
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.
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.
2016
2017
2018
CITY OF GOLDEN VALLEY
Rate (5)
UnemploymentFiscal
Demographic and Economic Statistics
Last Ten Fiscal Years
Year
-131-
Employees Rank Employees Rank
General Mills, Inc.3,000 1 8.6 %5,000 1 15.1 %
Allianz Life Insurance Company 1,800 2 5.2 2,000 2 6.0
OptumHealth 1,700 3 4.9 – – –
Honeywell Incorporated 1,033 4 3.0 1,377 3 4.1
G.H. Tennant Company 900 5 2.6 400 6 1.2
M.A. Mortenson 730 6 2.1 575 5 1.7
Lubrication Technologies 450 7 1.3 – – –
Breck School 439 8 1.3 265 10 0.8
Courage Center 430 9 1.2 380 7 1.1
Preferred One 350 10 1.0 – – –
United Healthcare – – – 1,000 4 3.0
Liberty Carton – – – 320 8 1.0
McKesson Corporation – – – 300 9 0.9
Total 10,832 31.2 %11,617 35.0 %
Source:Metropolitan Council – Regional Statistics and Data
Employer Employment
CITY OF GOLDEN VALLEY
Employment
of Total City
Percentage
2009
Percentage
Current Year and Nine Years Ago
2018
of Total City
Principal Employers
-132-
Fiscal Year
2009 2010 2011 2012
Function
General government 18.10 18.10 17.60 17.10
Public safety 51.25 52.25 50.75 50.75
Physical development 31.91 30.91 29.91 30.66
Parks and recreation 5.80 5.80 5.50 5.50
Water and sewer 10.59 10.59 10.59 11.34
Storm sewer 1.00 1.00 1.00 –
Golf course 7.00 7.00 7.00 7.00
Motor vehicle licensing 5.00 5.00 5.00 4.00
Total 130.65 130.65 127.35 126.35
Source: Various city departments
CITY OF GOLDEN VALLEY
Full-Time Equivalent City Government Employees by Function
Last Ten Fiscal Years
-133-
2013 2014 2015 2016 2017 2018
23.10 23.10 23.50 23.50 23.50 24.25
44.75 47.25 47.25 47.25 47.50 47.50
31.66 30.66 29.66 29.66 29.66 29.66
5.50 5.50 5.50 5.50 7.50 7.50
12.34 12.34 12.34 12.34 12.34 12.34
– 1.00 1.00 1.00 1.00 1.00
7.00 7.00 7.00 7.00 8.50 8.50
4.00 4.00 4.00 4.00 4.00 4.00
128.35 130.85 130.25 130.25 134.00 134.75
-134-
Fiscal Year
2009 2010 2011 2012
Function
1,025 1,338 1,177 1,399
106 80 107 70
Citations written 2,847 3,184 5,036 3,828
Fire
693 715 726 648
4.2 2.7 1.1 1.2
Water
New (removed) connections 11 (7)1 (5)
Water main breaks 18 17 27 26
Average daily consumption
(thousands of gallons)2,759 2,433 2,561 2,765
Source:Various city departments
CITY OF GOLDEN VALLEY
Operating Indicators by Function
Last Ten Fiscal Years
Street resurfacing (miles)
Adult arrests
Juvenile arrests
Number of calls answered
Highways and streets
Police
-135-
2013 2014 2015 2016 2017 2018
1,103 905 1,025 1,027 817 906
61 38 33 20 29 41
3,524 3,488 3,138 2,659 4,761 3,465
797 631 711 747 649 643
1.0 1.2 1.2 0.5 1.2 1.3
2 8 (1)9 46 37
10 30 28 15 11 22
2,518 2,213 2,156 2,106 2,171 2,275
-136-
Fiscal Year
2009 2010 2011 2012
Function
Public safety
Police
Stations 1 1 1 1
Patrol units 8 8 8 8
Fire stations 3 3 3 3
Highways and streets
Streets (miles)144 144 144 144
Streetlights 1,830 1,830 1,830 1,838
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 7,150 7,143 7,144 7,139
Sewer
Connections 7,172 7,175 7,174 7,169
Source:Various city departments
CITY OF GOLDEN VALLEY
Capital Asset Statistics by Function
Last Ten Fiscal Years
-137-
2013 2014 2015 2016 2017 2018
1 1 1 1 1 1
8 8 8 8 8 8
3 3 3 3 3 3
144 144 144 144 144 144
1,840 1,840 1,840 1,836 1,813 1,942
462 462 462 462 462 462
30 30 30 30 30 30
9 9 9 9 9 9
2 2 2 2 2 2
7,141 7,149 7,148 7,157 7,203 7,240
7,179 7,188 7,234 7,205 7,249 7,288
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