Comprehensive Annual Financial Report - 2017Comprehensive
Annual Financial Report
For the Fiscal Year Ended December 31, 2017 • Golden Valley, Minnesota
photo by Thomas Eickhoff, 2017 Views of the Valley
CITY OF GOLDEN VALLEY
HENNEPIN COUNTY, MINNESOTA
Comprehensive Annual Financial Report
for Year Ended
December 31, 2017
Prepared by
Finance Department
Sue Virnig – Finance Director
Sue Watson – Accounting Coordinator
Wanita Williams – Accountant
THIS PAGE INTENTIONALLY LEFT BLANK
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 36–70
REQUIRED SUPPLEMENTARY INFORMATION
Other Post-Employment Benefits Plan
Schedule of Funding Progress 71
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
Notes to Required Supplementary Information 76–78
CITY OF GOLDEN VALLEY
HENNEPIN COUNTY, MINNESOTA
Table of Contents
Page
SUPPLEMENTAL INFORMATION
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Nonmajor Governmental Funds 79–80
Combining Balance Sheet 81
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances 82
Nonmajor Special Revenue Funds
Combining Balance Sheet 83
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances 84
Nonmajor Debt Service Funds
Combining Balance Sheet 85
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances 86
Nonmajor Capital Project Funds
Combining Balance Sheet 87–88
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances 89–90
General Fund
Schedule of Revenue – Budget and Actual 91
Schedule of Expenditures – Budget and Actual 92–93
Internal Service Funds 94
Combining Statement of Net Position 95
Combining Statement of Revenue, Expenses, and Changes in Net Position 96
Combining Statement of Cash Flows 97
OTHER CITY INFORMATION
Schedules of Sources and Uses of Public Funds for Tax Increment Financing Districts
North Wirth Parkway No. 1505 98
Highway 55 West No. 1506 99
Cornerstone Creek No. 1507 100
Winnetka/Medicine Lake (Liberty Crossing) No. 1508 101
STATISTICAL SECTION (UNAUDITED)102
Net Position by Component 103–104
Changes in Net Position 105–108
Governmental Activities Tax Revenues by Source 109
Fund Balances of Governmental Funds 110–111
Changes in Fund Balances of Governmental Funds 112–113
General Governmental Tax Revenues by Source 114
Assessed Value and Estimated Actual Value of Taxable Property 115–116
Property Tax Rates 117
Principal Property Taxpayers 118
Property Tax Levies and Collections 119
Ratios of Outstanding Debt by Type 120–121
Ratios of General Bonded Debt Outstanding 122
Direct and Overlapping Governmental Activities Debt 123
Legal Debt Margin Information 124–125
Pledged Revenue Coverage 126–127
Demographic and Economic Statistics 128
Principal Employers 129
Full-Time Equivalent City Government Employees by Function 130–131
Operating Indicators by Function 132–133
Capital Asset Statistics by Function 134–135
CITY OF GOLDEN VALLEY
HENNEPIN COUNTY, MINNESOTA
Table of Contents (continued)
INTRODUCTORY SECTION
-i-
Term Expires
Shep Harris Mayor 12/31/2019
Joanie Clausen Councilmember 12/31/2019
Larry Fonnest Councilmember 12/31/2017
Steve Schmidgall Councilmember 12/31/2019
Andy Snope Councilmember 12/31/2017
Timothy Cruikshank City Manager Appointed
Sue Virnig Finance Director Appointed
Best and Flanagan City Attorney Appointed
Springsted, Inc.Bond Consultants Appointed
CITY COUNCIL
CITY OFFICIALS
CITY CONSULTANTS
CITY OF GOLDEN VALLEY
HENNEPIN COUNTY, MINNESOTA
City Council and Other Officials
Year Ended December 31, 2017
Board of Zoning
Appeals
Environmental
Commission
Civil Service
Commission
Human Rights
Commission
Planning
Commission
Human Services
Fund Open Space &
Recreation Commission
Police FirePhysical
DevelopmentPark & RecreationFinance
Recycling
Street & Vehicle
Maintenance
Elections
General Services
Golf Operations
Utilities
Maintenance
Park
Maintenance
Accounting Golf Maintenance
Inspections
Engineering
Recreation
Computer Services
Motor Vehicle
Licensing
Planning
Maintenance
Building
Operations Forestry
Organization Chart
City Council/
HRA
Citizens of
Golden Valley
City Manager
-ii-
-iii-
June 4, 2018
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, 2017. 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,
2017 are free of material misstatement. The independent audit involved examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and evaluating the overall financial
statement presentation. The independent auditor concluded, based upon the audit, that there was a
reasonable basis for rendering an unmodified opinion that the City’s financial statements for the fiscal
year ended December 31, 2017, 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.
-iii-
-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 21,556. The City is a Statutory
Plan B form of government, governed by a City Council composed of the mayor and four
councilmembers. The City Council is responsible for setting policies and ordinances that govern the City
and for appointing the city manager and city attorney. The city manager is responsible for carrying out
the policies and hiring the employees that oversee the day-to-day operations of the City.
Police services are provided by 31 sworn officers, which include the police chief, 2 commanders and
7 sergeants. Fire services are provided by 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 2017–2018 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. In 2017, the City made significant efforts to plan the
infrastructure renewal program with many public meetings. This program will follow the pavement
management program that is planned to end in 2023.
In 2017, a stable economy resulted in the highest valuation of building permits the City has experienced
in the last decade, which coincided with significantly higher building permit revenues than budgeted.
With this unanticipated revenue, Council approved a “positive performance” budget transfer to the
equipment fund to pay for future purchases of equi pment instead of selling certificates of indebtedness.
This action met one of the top priorities of the Council to reduce long-term debt.
Retirements, cost containment, and a dividend on insurance helped keep total overall expenditures under
budget in 2017.
The City will once again take a conservative approach for the 2018 budget year.
-v-
The following table shows the City’s building activity for the last 10 years:
Year Number Value
2008 3,556 67,452,357$
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$
Total Permits
The following major projects were started or completed throughout the City in 2017:
Residential
Single-Family Homes:
• 15 new with values ranging from $220,000 to $1,500,000.
• 22 remodel/addition projects with values greater than $100,000.
• 921 remodel/addition project with a total value of $14,292,067.
The Liberty Apartments:
• Two Apartment Buildings (2448 and 2450 Winnetka Avenue North) – A 187-unit apartment
building and clubhouse with valuation of $27,586,035.
• Townhomes:
o Twenty-eight of fifty-five townhomes in the second phase have been permitted. Total
value to date is $4,822,000.
o Twelve additional townhomes have been permitted. Total value of these units is
$2,069,820.
Talo Apartment Building (5100 Wayzata Boulevard) – This 303-unit apartment that will have
46 one-bedroom, 80 two-bedroom, 11 three-bedroom, and 46 studio apartments. Valuation is
$50,500,000.
The Xenia Apartment Building (770 Xenia Avenue South) – Total permit valuation of this
354-apartment complex is $51,605,755.
Laurel Ponds:
• Issued building permits for the first four homes in a 24-home development, valuation of
$1,378,000.
• Twenty more homes to be developed, with an average valuation of $375,000 in 2018.
Schuett Senior Building (9000 Golden Valley Road) – Foundation, valuation of $16,870,000.
Global Pointe Senior Living (5200 Wayzata Boulevard) – Foundation, valuation of $2,500,000.
-vi-
Commercial
General Mills (1 General Mills Boulevard):
• Remodel east wing, valuation of $115,000.
• Kitchen remodel, valuation of $414,697.
General Mills (9000 Plymouth Avenue) – Remodel of data center building, valuation of
$37,586,000.
Luther Company (9000 10th Avenue) – Remodel building located at 9000 10th Avenue into office
space, car storage, car repair, and IT center, valuation of $4,500,000.
Courage Kenny (3915 Golden Valley Road) – Addition of fitness center to existing rehabilitation
center, valuation of $2,348,000.
Noble School (2601 Noble Avenue North) – Addition to school building, valuation of $1,357,000.
Olson School (1751 Kelly Drive) – Addition to school building, valuation of $1,424,000.
Borton Volvo – Demolition and reconstruction of car showroom, valuation of $2,741,000.
Sandburg School (2400 Sandburg Road) – Addition to school building, valuation of $1,463,000.
Brookview Center (316 Brookview Parkway) – New golf clubhouse, children’s play center, banquet
center, restaurant, and golf pro shop, valuation of $12,200,000.
RJM Construction – Remodel for new office use, valuation of $2,564,000.
Bell Bank – Remodel, valuation of $350,000.
Honeywell:
• Remodel, valuation of $135,000.
• Reroof, valuation of $267,000.
• Lab remodel, valuation of $180,000.
701 Lilac Drive North – Remodel, valuation of $490,000.
Under Pressure Brewing – Remodel for new brewery and taproom, valuation of $81,000.
Game Show Battle Rooms – Remodel for interactive game show experience, valuation of $49,000.
Global Adult Day Services – Remodel for an adult day care, valuation of $56,910.
-vii-
LONG-TERM FINANCIAL PLANNING
An unassigned fund balance goal in the General Fund of 60 percent of current year budgeted General
Fund expenditures was approved in the fund balance policy adopted by the City Council for budgetary
and planning purposes. The City strongly believes maintaining this higher level of fund balance is
prudent, due to its debt load and the increased uncertainty of its revenue sources . This practice is also
supported by the City’s bond rating agency.
Through its Pavement Management Program, in 1995 the City began reconstructing its streets that did
not meet standards. At the end of 2017, the City has completed 111.30 of 120.00 miles. The City plans to
construct 1.24 miles in 2018.
The new Brookview Center opened in December of 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. This building will hopefully bring the enjoyment of
many gatherings of all kinds.
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 the future
capital needs such as replacing the 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 project 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,
and will continue to do more projects as feasible to increase the capacity for flood storage.
-viii-
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, 2016.
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 2017 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
-ix-
THIS PAGE INTENTIONALLY LEFT BLANK
FINANCIAL SECTION
C ERTIFIED
A CCOUNTANTS
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
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
-1-
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, 2017, 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)
-2-
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, 2017, and the
respective changes in financial position and, where applicable, cash flows thereof, and the budgetary
comparison for the General Fund for the year then ended, in accordance with accounting principles
generally accepted in the United States of America.
OTHER MATTERS
Required Supplementary Information
Accounting principles generally accepted in the United 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 Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to
the RSI in accordance with auditing standards generally accepted in the United States of America, which
consisted of inquiries of management about the methods of preparing the information and comparing the
information for consistency with management’s responses to our inquiries, the basic financial statements,
and other knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
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 o f 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)
-3-
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated June 4, 2018 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
June 4, 2018
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF GOLDEN VALLEY
Management’s Discussion and Analysis
Year Ended December 31, 2017
-4-
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, 2017. 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 2017 by $112,259,537 (net position). The City’s
government-wide net position increased $7,891,897 in 2017. 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.
• At the end of the fiscal year, the unassigned fund balance for the City’s General Fund was
$10,400,239, which represents 54.2 percent of total General Fund expenditures and transfers out
for 2017.
• The City sold two new bonds in 2017. The City’s long-term bonded debt increased $640,000 in
2017, 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).
-5-
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 26 individual governmental funds. Information is presented separately in the basic
financial statements for the General, Street Reconstruction Debt Service, Brookview Capital Project,
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 course, motor vehicle licensing, and recycling
enterprise operations, all of which are considered to be major funds of the City.
Internal service funds are an accounting device used to accumulate and allocate costs internally among
the City’s various functions. The City uses internal service funds to account for workers’ compensation,
payroll benefits, and vehicle maintenance activities. Because these internal service fund activities
predominantly benefit governmental rather than business-type functions, they have been included within
governmental activities in the government-wide financial statements.
-6-
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 OPEB 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 $112,259,537 at the end of the 2017 fiscal year, which represents an increase in
overall net position of $7,891,897 from the previous year.
Net Position – The City has 53.5 percent of its total net position invested in capital assets (land, land
improvements, buildings and improvements, machinery and equipment, infrastructure , and construction
in progress) less any related debt used to acquire those assets that is still outstanding . The City uses these
capital assets to provide services to citizens; consequently, these assets are not available for future
spending. Although the City’s investment in its capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources, since the capital
assets themselves cannot liquidate these liabilities. An additional 19.0 percent of the City’s net position
represents resources that are subject to external restrictions on how they may be used. The remaining
27.5 percent of net position is unrestricted and may be used to meet the City’s ongoing obligations.
The following is a summary of the City’s net position at the end of the last two fiscal years:
2017 2016 2017 2016 2017 2016
Current and other assets 71,904,691$ 78,839,003$ 19,534,233$ 20,761,134$ 91,438,924$ 99,600,137$
Capital assets 95,095,374 79,395,088 38,473,948 34,431,580 133,569,322 113,826,668
Total assets 167,000,065 158,234,091 58,008,181 55,192,714 225,008,246 213,426,805
Deferred outflows of resources
Pension plan deferments 8,375,033 13,326,183 – – 8,375,033 13,326,183
Noncurrent liabilities
(including current portion)100,429,880 109,484,786 2,619,688 2,621,745 103,049,568 112,106,531
Other liabilities 5,781,197 4,337,990 3,465,969 3,199,545 9,247,166 7,537,535
Total liabilities 106,211,077 113,822,776 6,085,657 5,821,290 112,296,734 119,644,066
Deferred inflows of resources
Pension plan deferments 8,827,008 2,741,282 – – 8,827,008 2,741,282
Net position
Net investment in capital assets 24,239,358 23,527,470 35,854,260 31,809,835 60,093,618 55,337,305
Restricted 21,342,170 18,567,757 – – 21,342,170 18,567,757
Unrestricted 14,755,485 12,900,989 16,068,264 17,561,589 30,823,749 30,462,578
Total net position 60,337,013$ 54,996,216$ 51,922,524$ 49,371,424$ 112,259,537$ 104,367,640$
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:
2017 2016 2017 2016 2017 2016
Revenues
Program revenues
Charges for services 4,708,257$ 3,269,379$ 14,805,497$ 13,998,846$ 19,513,754$ 17,268,225$
Operating grants and
contributions 1,444,260 643,970 966,871 167,557 2,411,131 811,527
Capital grants and
contributions 2,689,043 1,578,699 1,227,470 1,561,135 3,916,513 3,139,834
General revenues
Property taxes 21,419,195 19,473,750 – – 21,419,195 19,473,750
Franchise taxes 687,773 402,017 400,000 700,000 1,087,773 1,102,017
Other general revenues 291,837 347,543 – – 291,837 347,543
Investment earnings 522,746 313,888 246,111 156,228 768,857 470,116
Gain on sale of capital assets 3,775 56,838 – – 3,775 56,838
Total revenues 31,766,886 26,086,084 17,645,949 16,583,766 49,412,835 42,669,850
Expenses
General government 3,260,989 4,182,777 – – 3,260,989 4,182,777
Public safety 8,128,614 8,213,351 – – 8,128,614 8,213,351
Physical development 11,539,091 11,274,790 – – 11,539,091 11,274,790
Parks and recreation 2,205,615 1,736,619 – – 2,205,615 1,736,619
Interest and fiscal charges 2,321,780 2,172,554 – – 2,321,780 2,172,554
Water and sewer – – 8,395,036 8,327,113 8,395,036 8,327,113
Storm sewer – – 2,526,607 1,685,494 2,526,607 1,685,494
Golf course – – 2,348,327 2,172,621 2,348,327 2,172,621
Motor vehicle licensing – – 405,407 401,363 405,407 401,363
Recycling – – 389,472 407,664 389,472 407,664
Total expenses 27,456,089 27,580,091 14,064,849 12,994,255 41,520,938 40,574,346
Change in net position
before transfers 4,310,797 (1,494,007) 3,581,100 3,589,511 7,891,897 2,095,504
Transfers – capital assets – (1,000,000) – 1,000,000 – –
Transfers – internal activities 1,030,000 (670,000) (1,030,000) 670,000 – –
Change in net position 5,340,797 (3,164,007) 2,551,100 5,259,511 7,891,897 2,095,504
Net position – beginning 54,996,216 58,160,223 49,371,424 44,111,913 104,367,640 102,272,136
Net position – ending 60,337,013$ 54,996,216$ 51,922,524$ 49,371,424$ 112,259,537$ 104,367,640$
TotalGovernmental Activities Business-Type Activities
Governmental Activities – Governmental activities net position increased by $5,340,797. Key elements
of this net increase include:
• Revenue from charges for services increased $1,438,878 from the prior year, due to an increase
in licenses and permits issued for building construction.
• Operating grants and contributions were $800,290 higher than last year, due to the
reimbursement from the Golden Valley–Crystal–New Hope Joint Water Commission for its
share of the Douglas Drive street improvement project costs.
• Capital grants and contributions increased by $1,110,344 from the prior year, due to $425,000 of
park and recreation grants received, and an increase in special assessment collections.
• Revenue from property taxes increased $1,945,445 from the prior year, due to an increase in the
adopted levy from the prior year.
• General government expenses decreased $921,788, due to City Hall lower level remodeling and
roof replacement projects in the prior year.
• The City’s business-type activities also transferred $1,030,000 to the government-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
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 $2,551,100. Key elements
of this net increase include:
• Charges for services increased $806,651, mainly in water and sewer utility charges.
• Operating grants were $799,314 higher than last year, mainly in storm water due to a large
reimbursement received from the Metropolitan Council for its portion of the Liberty Crossing
project.
• Business-type activities expenses were $1,070,594 higher than the previous year, mainly due to
increased storm sewer costs related to the Liberty Crossing project.
• The Water and Sewer Utility Fund also transferred $1,000,000 to the Douglas Drive
Improvement Capital Project Fund during the year.
-10-
Expenses and Program Revenues – Business-Type Activities
$–
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
Water and
Sewer
Storm Sewer Brookview Golf
Course
Motor Vehicle Recycling
Expenses Program Revenues
Revenue by Source – Business-Type Activities
-11-
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
Governmental Funds – At the end of the fiscal year, the City’s governmental funds reported combined
ending fund balances of $57,419,880, a decrease of $8,898,717 in comparison with the prior year. The
unassigned portion of fund balance is $9,333,592, which may be used for any approved public purpose.
The remainder of the fund balance is either: 1) not in spendable form ($3,610), 2) restricted by various
externally imposed constraints ($32,513,969), 3) internally committed for particular purposes ($213,524),
or 4) internally assigned for particular purposes ($15,355,185).
General Fund – The fund balance of the General Fund increased by $1,430,753 to $12,403,849 at
December 31, 2017.
General Fund operating results can be summarized as follows:
2017 2016
Fund balance – beginning of year 10,973,096$ 10,727,064$
Additions
Revenue 20,596,423 18,397,103
Other sources 30,000 30,000
Total additions 20,626,423 18,427,103
Deductions
Expenditures 16,464,250 15,960,121
Other uses 2,731,420 2,220,950
Total deductions 19,195,670 18,181,071
Fund balance – end of year 12,403,849$ 10,973,096$
Of the total fund balance, $3,610 representing prepaid expenditures is classified as nonspendable. The
City has assigned $2,000,000 of fund balance in the General Fund for self-insurance, to finance the
potential risk related to insurance deductibles or settlements in excess of comme rcial insurance limits.
The unassigned fund balance at December 31, 2017 of $10,400,239 is equal to 54.2 percent of total 2017
expenditures and other financing uses in the General Fund, which puts the fund in an excellent financial
position. These reserves are needed for working capital to help pay for expenditures during the first half
of the year, since the City does not receive any significant money from its main revenue
source—property taxes—until July of each year.
-12-
General Fund Revenues – The following is an analysis of 2017 General Fund revenue:
Original Final Over (Under)
Revenue Budget Budget Actual Final Budget
Ad valorem taxes 14,814,685$ 14,814,685$ 14,853,621$ 38,936$ 0.3 %
Licenses 217,365 217,365 249,439 32,074 14.8
Permits 840,475 1,128,790 2,892,471 1,763,681 156.2
Intergovernmental 268,380 268,380 370,262 101,882 38.0
Charges for services 1,500,825 1,500,825 1,505,733 4,908 0.3
Fines and forfeits 300,000 300,000 400,233 100,233 33.4
Investment income 75,000 75,000 102,007 27,007 36.0
Other revenue 233,000 233,000 222,657 (10,343) (4.4)
Totals 18,249,730$ 18,538,045$ 20,596,423$ 2,058,378$ 11.1
(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 grants.
Fines and forfeits were over budget because of an increase in fines passed through from the county.
General Fund Expenditures – The following is an analysis of 2017 General Fund expenditures:
Original Final Over (Under)
Expenditure Budget Budget Actual Final Budget
General government 1,311,525$ 1,394,525$ 1,240,677$ (153,848)$ (11.0) %
Administrative services 1,869,145 1,874,665 1,860,542 (14,123) (0.8)
Casualty insurance 305,000 305,000 225,617 (79,383) (26.0)
Public safety 7,222,090 7,379,885 6,893,591 (486,294) (6.6)
Physical development 5,583,155 5,625,155 5,152,616 (472,539) (8.4)
Parks and recreation 1,138,815 1,138,815 1,091,207 (47,608) (4.2)
Totals 17,429,730$ 17,718,045$ 16,464,250$ (1,253,795)$ (7.1)
(Under) Budget
Percent Over
General government expenditures were under budget, due to savings in personal services and contracted
services. Casualty insurance was lower than budget , due to a more favorable premium adjustment than
anticipated. Public safety expenditures were under budget , due to personal service cost savings from
staffing changes. Physical development expenditures were under budget in personal service costs and
street maintenance.
-13-
Other Major Governmental Funds – The City reported five other major governmental funds for 2017.
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 $19,452,142 accumulated for future debt service. Fund balance increased by $636,189 in
2017, due to a $4,100,000 crossover refunding bond issue and offset by a crossover debt refunding paid
from the proceeds of bonds issued in a prior year.
The Brookview Capital Project Fund is used to account for the construction of a new recreation center.
At year-end, this fund had a fund balance of $1,703,650, a decrease of $14,275,418. The decrease was
due to the spend down of prior year bond proceeds for capital improvements.
The Winnetka/Medicine Lake Tax Increment Capital Project Fund ended the year with a fund balance
deficit of $1,066,647. In the prior year, this fund paid $1,000,000 to purchase capital assets, financed
through an interfund loan, that were subsequently contributed to the Storm Sewer Enterprise Fund. 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 $3,899,825, a decrease of $262,563. The decrease
was due to capital outlay expenditures exceeding revenues for the year.
The Douglas Drive Improvement Capital Project Fund, used to account for a major street reconstruction
project, ended the year with a fund balance of $1,366,503, a decrease of $1,170,650. The decrease was
due to the spend down of prior year bond proceeds for capital improvements.
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 $54,316,819 at year-end, of which $18,462,559
was unrestricted. The total net position of these funds improved by $2,709,035 during 2017.
Utility Fund net position increased $720,921, due to operating income of $1,296,542 and the allocation
of $400,000 of franchise taxes to this fund in 2017.
Storm Sewer Utility Fund net position increased $2,048,755, mainly due to $1,227,470 of capital
contributions received from other governmental units for the Liberty Crossing and 10th Avenue projects.
The Brookview Operating (Golf Course) Fund had a decrease in net position of $180,512, mainly due to
an increase in operating costs for the golf course and grill, as well as a decrease in green fee and lawn
bowling revenue.
The Motor Vehicle Operating Fund had an increase in net position of $42,433.
The Recycling Fund had an increase in net position of $77,438, mainly due to a decrease in expenditures
for contractual services.
-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, 2017 amounts to $133,569,322. This
balance represents a net increase of $19,742,654 from the prior year. The City’s capital assets for the last
two years are as follows:
2017 2016 2017 2016 2017 2016
Land 3,527,685$ 3,527,685$ 857,044$ 857,044$ 4,384,729$ 4,384,729$
Land improvements 5,853,690 5,633,820 3,155,215 3,181,536 9,008,905 8,815,356
Buildings and improvements 12,877,507 13,848,345 788,151 667,657 13,665,658 14,516,002
Machinery and equipment 13,831,531 12,445,321 4,667,866 4,347,647 18,499,397 16,792,968
Infrastructure 117,122,058 115,651,073 43,190,504 41,546,632 160,312,562 157,197,705
Construction in progress 29,714,190 11,266,803 8,408,414 5,195,792 38,122,604 16,462,595
Less accumulated
depreciation (87,831,287) (82,977,959) (22,593,246) (21,364,728) (110,424,533) (104,342,687)
Net total 95,095,374$ 79,395,088$ 38,473,948$ 34,431,580$ 133,569,322$ 113,826,668$
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 Brookview Center, which was still in process at year-end. 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
$23,277,113 of fund balance restricted for debt service in the governmental funds. The revenue bonds
will be paid from the designated business activity of the Storm Sewer Utility Enterprise Fund. The
following table presents the City’s long-term liabilities as of the last two year-ends:
2017 2016 2017 2016 2017 2016
G.O. special assessment bonds 55,340,000$ 55,455,000$ –$ –$ 55,340,000$ 55,455,000$
G.O. improvement bonds 5,630,000 5,630,000 – – 5,630,000 5,630,000
HRA lease revenue bonds 17,410,000 17,410,000 – – 17,410,000 17,410,000
G.O. certificates of indebtedness 2,400,000 2,350,000 – – 2,400,000 2,350,000
G.O. tax abatement bonds 670,000 1,015,000 – – 670,000 1,015,000
G.O. tax increment bonds 1,170,000 – – – 1,170,000 –
G.O. state aid street bonds 1,520,000 1,640,000 – – 1,520,000 1,640,000
Revenue bonds – – 2,580,000 2,580,000 2,580,000 2,580,000
Unamortized premiums 2,352,017 2,043,531 39,688 41,745 2,391,705 2,085,276
Compensated absences 1,585,622 1,575,785 – – 1,585,622 1,575,785
Net pension liability – PERA 11,373,895 21,506,136 – – 11,373,895 21,506,136
Net OPEB obligation 978,346 859,334 – – 978,346 859,334
Total 100,429,880$ 109,484,786$ 2,619,688$ 2,621,745$ 103,049,568$ 112,106,531$
TotalGovernmental Activities Business-Type Activities
-15-
In 2017, the City sold the following bond issues:
1) $7,495,000 G.O. Improvement and Equipment Bonds, Series 2017A – The proceeds of this
issue are being used to finance the City’s annual pavement program, refund G.O. Improvement
Bonds, Series 2009A, and acquire various items of capital equipment, and will be repaid from a
combination of special assessments and property taxes.
2) $1,935,000 G.O. Tax Increment and Improvement Bonds, Series 2017B – The proceeds of
this issue are being used to finance public improvements in the Highway 55 West Tax Increment
Financing District, and will be repaid from a combination of special assessments spread against
benefited properties and tax increment revenue from the District.
In addition to regularly scheduled bond principal and interest payments, the City re deemed $3,885,000 of
its 2007C Improvement Bonds during the year through a crossover refunding.
Additional details of long-term liabilities activity for the year can be found in Note 5 of the notes to basic
financial statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
Economic factors affect the preparation of annual budgets . The following factors were considered in
preparing the 2018 budget:
• The City’s 2018 budgeted tax levy went up by 4.1 percent from 2017. The City strives for a
balanced budget with revenues equal to expenditures.
• The City will maintain fund balance for working capital in the General Fund at 60.0 percent of
the current year’s adopted expenditures.
REQUESTS FOR INFORMATION
Questions concerning any of the information provided in this report or requests for addition al
information should be addressed by writing to the City of Golden Valley, Attention: Finance Director,
7800 Golden Valley Road, Golden Valley, Minnesota 55427 or by calling (763) 593-8010.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
Governmental Business-Type
Activities Activities Total
Assets
Cash and temporary investments 50,044,355$ 18,538,437$ 68,582,792$
Delinquent taxes receivable 153,003 – 153,003
Special assessments receivable (net of allowance)3,165,577 377,267 3,542,844
Accounts and interest receivable 673,556 2,337,428 3,010,984
Due from other governmental units 276,069 837,456 1,113,525
Internal balances 2,774,424 (2,774,424) –
Inventory 82,586 33,876 116,462
Prepaid items 3,610 184,193 187,803
Restricted assets – temporarily restricted
Cash and temporary investments 13,061,080 – 13,061,080
Interest receivable 53,494 – 53,494
Net pension asset – fire relief 1,616,937 – 1,616,937
Capital assets
Not depreciated 33,241,875 9,265,458 42,507,333
Depreciated, net of accumulated depreciation 61,853,499 29,208,490 91,061,989
Total assets 167,000,065 58,008,181 225,008,246
Deferred outflows of resources
Pension plan deferments – PERA 7,915,804 – 7,915,804
Pension plan deferments – fire relief 459,229 – 459,229
Total deferred outflows of resources 8,375,033 – 8,375,033
Total assets and deferred outflows of resources 175,375,098$ 58,008,181$ 233,383,279$
Liabilities
Accounts and contracts payable 1,855,128$ 648,563$ 2,503,691$
Accrued interest payable 1,026,513 26,460 1,052,973
Accrued salaries and employee benefits 386,766 – 386,766
Due to other governmental units 567,891 534,509 1,102,400
Deposits 1,944,899 2,256,437 4,201,336
Long-term liabilities
Due within one year 13,258,894 – 13,258,894
Due in more than one year 87,170,986 2,619,688 89,790,674
Total liabilities 106,211,077 6,085,657 112,296,734
Deferred inflows of resources
Pension plan deferments – PERA 8,630,455 – 8,630,455
Pension plan deferments – fire relief 196,553 – 196,553
Total deferred inflows of resources 8,827,008 – 8,827,008
Net position
Net investment in capital assets 24,239,358 35,854,260 60,093,618
Restricted for
Debt service 14,650,397 – 14,650,397
Redevelopment 305,151 – 305,151
Capital improvements 4,270,995 – 4,270,995
Fire relief pensions 1,879,613 – 1,879,613
Other purposes 236,014 – 236,014
Unrestricted 14,755,485 16,068,264 30,823,749
Total net position 60,337,013 51,922,524 112,259,537
Total liabilities, deferred inflows of resources, and net position 175,375,098$ 58,008,181$ 233,383,279$
CITY OF GOLDEN VALLEY
Statement of Net Position
December 31, 2017
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 3,260,989$ 238,339$ 74,928$ –$
Public safety 8,128,614 3,460,736 569,332 –
Physical development 11,539,091 565,550 800,000 2,264,043
Parks and recreation 2,205,615 443,632 – 425,000
Interest and fiscal charges 2,321,780 – – –
Total governmental activities 27,456,089 4,708,257 1,444,260 2,689,043
Business-type activities
Water and sewer 8,395,036 9,574,647 – –
Storm sewer 2,526,607 2,328,336 859,292 1,227,470
Golf course 2,348,327 2,059,405 41,197 –
Motor vehicle licensing 405,407 453,215 55 –
Recycling 389,472 389,894 66,327 –
Total business-type activities 14,064,849 14,805,497 966,871 1,227,470
Total governmental and
business-type activities 41,520,938$ 19,513,754$ 2,411,131$ 3,916,513$
General revenues
Property taxes
Franchise taxes
Other general revenues
Investment earnings
Gain on sale of capital assets
Transfers – internal activities
Total general revenues and transfers
Change in net position
Net position – beginning
Net position – ending
Program Revenues
CITY OF GOLDEN VALLEY
Statement of Activities
Year Ended December 31, 2017
See notes to basic financial statements -17-
Governmental Business-Type
Activities Activities Total
(2,947,722)$ –$ (2,947,722)$
(4,098,546) – (4,098,546)
(7,909,498) – (7,909,498)
(1,336,983) – (1,336,983)
(2,321,780) – (2,321,780)
(18,614,529) – (18,614,529)
– 1,179,611 1,179,611
– 1,888,491 1,888,491
– (247,725) (247,725)
– 47,863 47,863
– 66,749 66,749
– 2,934,989 2,934,989
(18,614,529) 2,934,989 (15,679,540)
21,419,195 – 21,419,195
687,773 400,000 1,087,773
291,837 – 291,837
522,746 246,111 768,857
3,775 – 3,775
1,030,000 (1,030,000) –
23,955,326 (383,889) 23,571,437
5,340,797 2,551,100 7,891,897
54,996,216 49,371,424 104,367,640
60,337,013$ 51,922,524$ 112,259,537$
Revenue and Changes in Net Position
Net (Expenses)
-18-
THIS PAGE INTENTIONALLY LEFT BLANK
FUND FINANCIAL STATEMENTS
THIS PAGE INTENTIONALLY LEFT BLANK
Street
Reconstruction Brookview
General Debt Service Capital Project
Assets
Cash and temporary investments 13,688,278$ 8,717,384$ 283,738$
Cash held with trustee – 10,682,364 2,378,716
Receivables
Delinquent taxes 153,003 – –
Special assessments 10,466 2,820,974 –
Accounts 58,695 – –
Accrued interest 118,032 53,494 –
Due from other funds 12,475 – –
Advances to other funds – – –
Due from other governmental units 197,491 – 3,393
Prepaid items 3,610 – –
Total assets 14,242,050$ 22,274,216$ 2,665,847$
Liabilities
Accounts payable 303,606$ –$ 159,099$
Contracts payable – – 792,645
Accrued salaries payable 386,766 – –
Due to other governmental units 286,208 – 10,453
Deposits 698,152 1,100 –
Due to other funds – – –
Advances from other funds – – –
Total liabilities 1,674,732 1,100 962,197
Deferred inflows of resources
Unavailable revenue – property taxes 153,003 – –
Unavailable revenue – special assessments 10,466 2,820,974 –
Total deferred inflows of resources 163,469 2,820,974 –
Fund balances (deficits)
Nonspendable 3,610 – –
Restricted – 19,452,142 590,066
Committed – – –
Assigned 2,000,000 – 1,113,584
Unassigned 10,400,239 – –
Total fund balances (deficits)12,403,849 19,452,142 1,703,650
Total liabilities, deferred inflows of
resources, and fund balances 14,242,050$ 22,274,216$ 2,665,847$
CITY OF GOLDEN VALLEY
Balance Sheet
Governmental Funds
December 31, 2017
See notes to basic financial statements -19-
Winnetka/
Medicine Lake Capital Douglas Drive
Tax Increment Improvement Improvement
Capital Project Capital Project Capital Project Nonmajor Totals
–$ 3,495,602$ 1,243,146$ 20,252,987$ 47,681,135$
– – – – 13,061,080
– – – – 153,003
– 850 – 333,287 3,165,577
– 156,770 267,768 65,546 548,779
– – – – 171,526
– 186,240 – 66,398 265,113
– 1,260,000 – – 1,260,000
– – – 75,185 276,069
– – – – 3,610
–$ 5,099,462$ 1,510,914$ 20,793,403$ 66,585,892$
–$ 5,091$ 2,845$ 251,198$ 721,839$
– 26,154 141,566 129,017 1,089,382
– – – – 386,766
– 271,021 – 152 567,834
– 896,521 – 340,854 1,936,627
66,647 – – 78,337 144,984
1,000,000 – – – 1,000,000
1,066,647 1,198,787 144,411 799,558 5,847,432
– – – – 153,003
– 850 – 333,287 3,165,577
– 850 – 333,287 3,318,580
– – – – 3,610
– – 1,337,475 11,134,286 32,513,969
– – – 213,524 213,524
– 3,899,825 29,028 8,312,748 15,355,185
(1,066,647) – – – 9,333,592
(1,066,647) 3,899,825 1,366,503 19,660,558 57,419,880
–$ 5,099,462$ 1,510,914$ 20,793,403$ 66,585,892$
-20-
THIS PAGE INTENTIONALLY LEFT BLANK
Total fund balances – governmental funds 57,419,880$
Capital assets used in governmental activities are not financial resources and,therefore,are not
reported as assets in governmental funds.
Cost of capital assets 182,701,916
Less accumulated depreciation (87,721,446)
Long-term liabilities,including bonds payable,are not due or payable in the current period and,
therefore,are not reported as liabilities in governmental funds.Long-term liabilities at year-end
consist of:
Bonds and certificates of indebtedness payable (84,140,000)
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.3,318,580
Accrued interest payable is included in net position,but is excluded from fund balances until due
and payable.(1,026,513)
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 (10,257,682)
Add internal service balances allocated to business-type activities 2,394,295
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.(2,352,017)
Total net position – governmental activities 60,337,013$
Amounts reported for governmental activities in the Statement of Net Position are different because:
December 31, 2017
CITY OF GOLDEN VALLEY
Reconciliation of the Balance Sheet to the
Statement of Net Position
Governmental Funds
See notes to basic financial statements -21-
Street
Reconstruction Brookview
General Debt Service Capital Project
Revenue
Ad valorem taxes 14,853,621$ 4,465,375$ –$
Tax increments – – –
Special assessments 14,506 802,694 –
Franchise taxes – – –
Licenses and permits 3,141,910 – –
Intergovernmental revenue 370,262 – –
Charges for services 1,505,733 – –
Fines and forfeits 400,233 – –
Investment income 102,007 131,993 25,599
Other revenue 208,151 – –
Total revenue 20,596,423 5,400,062 25,599
Expenditures
Current
General government 1,240,677 – –
Administrative services 1,860,542 – –
Casualty insurance 225,617 – –
Public safety 6,893,591 – –
Physical development 5,152,616 – –
Parks and recreation 1,091,207 – –
Capital outlay – – 14,301,017
Debt service
Principal – 3,675,000 –
Interest and fiscal charges – 1,607,292 –
Total expenditures 16,464,250 5,282,292 14,301,017
Excess (deficiency) of revenue over expenditures 4,132,173 117,770 (14,275,418)
Other financing sources (uses)
Sale of capital assets – – –
Bonds issued – – –
Refunding bonds issued – 4,100,000 –
Paid to refunded bond escrow agent – (3,885,000) –
Premiums on bonds issued – 303,419 –
Transfers in 30,000 – –
Transfers (out)(2,731,420) – –
Total other financing sources (uses)(2,701,420) 518,419 –
Net change in fund balances 1,430,753 636,189 (14,275,418)
Fund balances (deficits)
Beginning of year 10,973,096 18,815,953 15,979,068
End of year 12,403,849$ 19,452,142$ 1,703,650$
CITY OF GOLDEN VALLEY
Statement of Revenue, Expenditures, and Changes in Fund Balances
Governmental Funds
Year Ended December 31, 2017
See notes to basic financial statements -22-
Winnetka/
Medicine Lake Capital Douglas Drive
Tax Increment Improvement Improvement
Capital Project Capital Project Capital Project Nonmajor Totals
–$ 2,221$ –$ 2,067,698$ 21,388,915$
– – – 20,920 20,920
– – – 289,497 1,106,697
– – 297,773 390,000 687,773
– – – – 3,141,910
– 34,872 800,000 975,970 2,181,104
– 49,232 – 22,229 1,577,194
– – – – 400,233
– 74,717 24,152 144,948 503,416
– – – 471,762 679,913
– 161,042 1,121,925 4,383,024 31,688,075
– – – 84,528 1,325,205
– – – – 1,860,542
– – – – 225,617
– – – 44,118 6,937,709
– – – – 5,152,616
– – – 101,472 1,192,679
536 433,644 3,282,536 5,765,204 23,782,937
– – – 1,230,000 4,905,000
44,028 – – 809,273 2,460,593
44,564 433,644 3,282,536 8,034,595 47,842,898
(44,564) (272,602) (2,160,611) (3,651,571) (16,154,823)
– – – 143,274 143,274
– – – 5,330,000 5,330,000
– – – – 4,100,000
– – – – (3,885,000)
– – – 234,413 537,832
– 10,039 1,000,000 3,104,799 4,144,838
– – (10,039) (373,379) (3,114,838)
– 10,039 989,961 8,439,107 7,256,106
(44,564) (262,563) (1,170,650) 4,787,536 (8,898,717)
(1,022,083) 4,162,388 2,537,153 14,873,022 66,318,597
(1,066,647)$ 3,899,825$ 1,366,503$ 19,660,558$ 57,419,880$
-23-
THIS PAGE INTENTIONALLY LEFT BLANK
Total net change in fund balances – governmental funds (8,898,717)$
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 22,281,092
Depreciation expense (6,517,054)
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 (139,499)
The amount of bond proceeds used to finance the acquisition of capital assets is reported in the
governmental funds as a source of financing.Bond proceeds are not revenues in the Statement of
Activities, but rather constitute long-term liabilities.(9,430,000)
Repayment of long-term liabilities is an expenditure in the governmental funds,but the repayment
reduces long-term liabilities in the Statement of Net Position.8,790,000
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.(90,533)
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.(308,486)
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.362,500
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 (866,441)
Add back internal service fund activity allocated to business-type activities 157,935
Change in net position – governmental activities 5,340,797$
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, 2017
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 14,814,685$ 14,814,685$ 14,853,621$ 38,936$
Special assessments 10,000 10,000 14,506 4,506
Licenses and permits 1,057,840 1,346,155 3,141,910 1,795,755
Intergovernmental revenue 268,380 268,380 370,262 101,882
Charges for services 1,500,825 1,500,825 1,505,733 4,908
Fines and forfeits 300,000 300,000 400,233 100,233
Investment income 75,000 75,000 102,007 27,007
Other revenue 223,000 223,000 208,151 (14,849)
Total revenue 18,249,730 18,538,045 20,596,423 2,058,378
Expenditures
Current
General government 1,311,525 1,394,525 1,240,677 (153,848)
Administrative services 1,869,145 1,874,665 1,860,542 (14,123)
Casualty insurance 305,000 305,000 225,617 (79,383)
Public safety 7,222,090 7,379,885 6,893,591 (486,294)
Physical development 5,583,155 5,625,155 5,152,616 (472,539)
Parks and recreation 1,138,815 1,138,815 1,091,207 (47,608)
Total expenditures 17,429,730 17,718,045 16,464,250 (1,253,795)
Excess of revenue over expenditures 820,000 820,000 4,132,173 3,312,173
Other financing sources (uses)
Transfers in 30,000 30,000 30,000 –
Transfers (out)(850,000) (850,000) (2,731,420) (1,881,420)
Total other financing sources (uses)(820,000) (820,000) (2,701,420) (1,881,420)
Net change in fund balances –$ –$ 1,430,753 1,430,753$
Fund balances
Beginning of year 10,973,096
End of year 12,403,849$
CITY OF GOLDEN VALLEY
Statement of Revenue, Expenditures, and Changes in Fund Balances
General Fund – Budget and Actual
Year Ended December 31, 2017
See notes to basic financial statements -25-
Storm Sewer Brookview Motor Vehicle
Utility Utility Operating Operating
Assets
Current assets
Cash and temporary investments 8,214,466$ 7,407,412$ 1,020,325$ 691,977$
Receivables
Special assessments 421,063 – – –
Accounts 1,998,195 334,783 4,450 –
Allowance for uncollectibles (43,796) – – –
Due from other governmental units 105,561 729,033 374 –
Due from other funds – 243,328 – –
Inventory 22,036 – 11,840 –
Prepaid items 183,698 390 105 –
Total current assets 10,901,223 8,714,946 1,037,094 691,977
Noncurrent assets
Advances to other funds – 2,032,000 – –
Net pension asset – fire relief – – – –
Capital assets
Land – – 857,044 –
Land improvements 30,054 – 3,125,161 –
Buildings and improvements 602,827 – 185,324 –
Machinery and equipment 2,279,896 946,419 1,414,617 26,934
Infrastructure – distribution and
collection systems 22,969,161 20,221,343 – –
Construction in progress 371,072 8,037,342 – –
Total capital assets 26,253,010 29,205,104 5,582,146 26,934
Less accumulated depreciation (12,052,924) (6,570,422) (3,955,419) (14,481)
Capital assets, net 14,200,086 22,634,682 1,626,727 12,453
Total noncurrent assets 14,200,086 24,666,682 1,626,727 12,453
Total assets 25,101,309 33,381,628 2,663,821 704,430
Deferred outflows of resources
Pension plan deferments – PERA – – – –
Pension plan deferments – fire relief – – – –
Total deferred outflows
of resources – – – –
Total assets and deferred
outflows of resources 25,101,309$ 33,381,628$ 2,663,821$ 704,430$
Business-Type Activities – Enterprise Funds
CITY OF GOLDEN VALLEY
Statement of Net Position
Proprietary Funds
December 31, 2017
See notes to basic financial statements -26-
Governmental
Activities
Recycling Totals Internal Service
1,204,257$ 18,538,437$ 2,363,220$
– 421,063 –
– 2,337,428 6,745
– (43,796) –
2,488 837,456 –
– 243,328 –
– 33,876 82,586
– 184,193 –
1,206,745 22,551,985 2,452,551
– 2,032,000 –
– – 1,616,937
– 857,044 –
– 3,155,215 –
– 788,151 –
– 4,667,866 224,745
– 43,190,504 –
– 8,408,414 –
– 61,067,194 224,745
– (22,593,246) (109,841)
– 38,473,948 114,904
– 40,505,948 1,731,841
1,206,745 63,057,933 4,184,392
– – 7,915,804
– – 459,229
– – 8,375,033
1,206,745$ 63,057,933$ 12,559,425$
-27-(continued)
Storm Sewer Brookview Motor Vehicle
Utility Utility Operating Operating
Liabilities
Current liabilities
Accounts payable 63,635$ 9,536$ 101,315$ 65$
Contracts payable 16,362 432,457 – –
Accrued interest payable – 26,460 – –
Accrued compensated absences –
current – – – –
Due to other governmental units 498,484 16,202 3,945 –
Due to other funds 363,457 – – –
Deposits 66,235 2,189,234 968 –
Total current liabilities 1,008,173 2,673,889 106,228 65
Noncurrent liabilities
Advances from other funds 2,292,000 – – –
Accrued compensated absences – – – –
Net pension liability – PERA – – – –
Net OPEB obligation – – – –
Bonds payable – long-term – 2,619,688 – –
Total noncurrent liabilities 2,292,000 2,619,688 – –
Total liabilities 3,300,173 5,293,577 106,228 65
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 14,200,086 20,014,994 1,626,727 12,453
Restricted for fire relief pensions – – – –
Unrestricted 7,601,050 8,073,057 930,866 691,912
Total net position 21,801,136 28,088,051 2,557,593 704,365
Total liabilities, deferred inflows
of resources, and net position 25,101,309$ 33,381,628$ 2,663,821$ 704,430$
Total net position – enterprise funds
Adjustment to reflect the consolidation of internal service fund
activity related to enterprise funds
Net position – business-type activities
Business-Type Activities – Enterprise Funds
CITY OF GOLDEN VALLEY
Statement of Net Position (continued)
Proprietary Funds
December 31, 2017
See notes to basic financial statements -28-
Governmental
Activities
Recycling Totals Internal Service
25,193$ 199,744$ 43,907$
– 448,819 –
– 26,460 –
– – 1,198,894
15,878 534,509 57
– 363,457 –
– 2,256,437 8,272
41,071 3,829,426 1,251,130
– 2,292,000 –
– – 386,728
– – 11,373,895
– – 978,346
– 2,619,688 –
– 4,911,688 12,738,969
41,071 8,741,114 13,990,099
– – 8,630,455
– – 196,553
– – 8,827,008
– 35,854,260 114,904
– – 1,879,613
1,165,674 18,462,559 (12,252,199)
1,165,674 54,316,819 (10,257,682)
1,206,745$ 63,057,933$ 12,559,425$
54,316,819$
(2,394,295)
51,922,524$
-29-
Storm Sewer Brookview Motor Vehicle
Utility Utility Operating Operating
Operating revenue
Charges for services 9,544,015$ 2,328,336$ 1,238,963$ 453,215$
Sales and rentals 30,632 – 869,368 –
Less sales tax and credit card fees – – (48,926) –
Total operating revenue 9,574,647 2,328,336 2,059,405 453,215
Operating expenses
Enterprise operations 7,455,715 1,710,339 2,125,063 384,625
Other services – – – –
Depreciation 822,390 755,177 110,443 1,629
Total operating expenses 8,278,105 2,465,516 2,235,506 386,254
Operating income (loss)1,296,542 (137,180) (176,101) 66,961
Nonoperating revenue (expense)
Franchise taxes 400,000 – – –
Intergovernmental revenue – 859,292 – –
Investment income 76,461 142,877 10,667 5,417
Other income – – 41,197 55
Gain (loss) on sale of capital assets 24,288 17,800 (56,275) –
Interest expense (76,370) (61,504) – –
Total nonoperating revenue (expense)424,379 958,465 (4,411) 5,472
Income (loss) before capital
contributions and transfers 1,720,921 821,285 (180,512) 72,433
Capital contributions – 1,227,470 – –
Transfers (out)(1,000,000) – – (30,000)
Change in net position 720,921 2,048,755 (180,512) 42,433
Net position
Beginning of year 21,080,215 26,039,296 2,738,105 661,932
End of year 21,801,136$ 28,088,051$ 2,557,593$ 704,365$
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, 2017
See notes to basic financial statements -30-
Governmental
Activities
Recycling Totals Internal Service
389,894$ 13,954,423$ 7,869,578$
– 900,000 –
– (48,926) –
389,894 14,805,497 7,869,578
389,472 12,065,214 –
– – 9,200,929
– 1,689,639 14,154
389,472 13,754,853 9,215,083
422 1,050,644 (1,345,505)
– 400,000 –
56,806 916,098 459,734
10,689 246,111 19,330
9,521 50,773 –
– (14,187) –
– (137,874) –
77,016 1,460,921 479,064
77,438 2,511,565 (866,441)
– 1,227,470 –
– (1,030,000) –
77,438 2,709,035 (866,441)
1,088,236 51,607,784 (9,391,241)
1,165,674$ 54,316,819$ (10,257,682)$
2,709,035$
(157,935)
2,551,100$
-31-
Storm Sewer Brookview Motor Vehicle
Utility Utility Operating Operating
Cash flows from operating activities
Receipts from customers and users 9,125,639$ 2,150,249$ 2,149,721$ 453,270$
Receipts from interfund services provided – – – –
Paid to suppliers/service providers (5,870,030) (1,060,505) (755,223) (34,328)
Paid to employees (1,129,350) (296,553) (1,295,645) (320,622)
Payments for interfund services (275,000) (200,000) (85,000) (30,000)
Net cash flows from operating activities 1,851,259 593,191 13,853 68,320
Cash flows from capital and related financing activities
Acquisition of capital assets (834,393) (4,754,036) (196,392) (12,668)
Capital grants – 1,227,470 – –
Repayment of advances (352,000) 172,000 – –
Interest (paid) received on advances (77,896) 35,030 – –
Proceeds from sale of capital assets 26,700 17,800 6,795 –
Interest paid on capital debt – (50,191) – –
Net cash flows from capital and
related financing activities (1,237,589) (3,351,927) (189,597) (12,668)
Cash flows from investing activities
Interest received on investments 76,461 64,565 10,667 5,417
Cash flows from noncapital financing activities
Operating grants – 859,292 – –
Franchise taxes 400,000 – – –
Transfers (out)(1,000,000) – – (30,000)
Net cash flows from noncapital
financing activities (600,000) 859,292 – (30,000)
Net increase (decrease) in cash and temporary
investments/cash equivalents 90,131 (1,834,879) (165,077) 31,069
Cash and temporary investments/cash equivalents
Beginning of year 8,124,335 9,242,291 1,185,402 660,908
End of year 8,214,466$ 7,407,412$ 1,020,325$ 691,977$
CITY OF GOLDEN VALLEY
Business-Type Activities – Enterprise Funds
Year Ended December 31, 2017
Proprietary Funds
Statement of Cash Flows
See notes to basic financial statements -32-
Governmental
Activities
Recycling Totals Internal Service
398,846$ 14,277,725$ 1,280,721$
– – 6,590,168
(345,302) (8,065,388) (5,490,334)
– (3,042,170) (2,552,950)
(51,500) (641,500) –
2,044 2,528,667 (172,395)
– (5,797,489) (89,901)
– 1,227,470 –
– (180,000) –
– (42,866) –
– 51,295 –
– (50,191) –
– (4,791,781) (89,901)
10,689 167,799 19,330
56,806 916,098 459,734
– 400,000 –
– (1,030,000) –
56,806 286,098 459,734
69,539 (1,809,217) 216,768
1,134,718 20,347,654 2,146,452
1,204,257$ 18,538,437$ 2,363,220$
-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)1,296,542$ (137,180)$ (176,101)$ 66,961$
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities
Depreciation 822,390 755,177 110,443 1,629
Other income – – 41,197 55
Changes in assets, liabilities, and deferred
outflows/inflows
Special assessments receivable (24,928) – – –
Accounts receivable (319,444) (334,783) (4,429) –
Due from other governmental units (104,636) 156,696 – –
Inventory 745 – 4,622 –
Prepaid items (19,917) 130,880 320 –
Net pension asset – fire relief – – – –
Deferred outflows – pension plan deferments – – – –
Accounts payable 43,602 (43,602) 22,546 (325)
Contracts payable (100,482) 120,293 12,382 –
Due to other governmental units 280,274 (13,234) 2,873 –
Deposits (22,887) (41,056) – –
Accrued compensated absences – – – –
Net pension liability – PERA – – – –
Net OPEB obligation – – – –
Deferred inflows – pension plan deferments – – – –
Net cash flows from operating activities 1,851,259$ 593,191$ 13,853$ 68,320$
Schedule of noncash capital and related
financing activities
Net book value of capital asset disposals 2,412$ –$ 63,070$ –$
Business-Type Activities – Enterprise Funds
CITY OF GOLDEN VALLEY
Statement of Cash Flows (continued)
Proprietary Funds
Year Ended December 31, 2017
See notes to basic financial statements -34-
Governmental
Activities
Recycling Totals Internal Service
422$ 1,050,644$ (1,345,505)$
– 1,689,639 14,154
9,521 50,773 –
– (24,928) –
– (658,656) 1,311
(569) 51,491 –
– 5,367 20,824
– 111,283 –
– – 84,779
– – 4,951,150
6,228 28,449 21,000
– 32,193 –
(13,558) 256,355 57
– (63,943) (2,499)
– – 9,837
– – (10,132,241)
– – 119,012
– – 6,085,726
2,044$ 2,528,667$ (172,395)$
–$ 65,482$ –$
-35-
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF GOLDEN VALLEY
Notes to Basic Financial Statements
December 31, 2017
-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 2017
fiscal year, the City paid LOGIS $673,420 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 measure ment 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.
-38-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2. Recording of Expenditures – Expenditures are generally recorded when a liability is incurred,
except for principal and interest on long-term debt and other long-term liabilities, which are
recognized as expenditures to the extent they have matured. Capital asset acquisitions are
reported as capital outlay expenditures in the governmental funds.
Proprietary fund financial statements are reported using the economic resources measurement focus and
accrual basis of accounting, similar to the government-wide financial statements. Proprietary funds
distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses
generally result from providing services and producing and delivering goods in connection with a
proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise
funds and internal service funds are charges to customers for sales and services . The operating expenses
for the enterprise funds and internal service funds include the cost of sales and services, administrative
expenses, and depreciation on capital assets. All revenues and expenses that do not meet this definition
are reported as nonoperating revenues and expenses.
Aggregated information for the internal service funds is reported in a single column in the proprietary
fund financial statements. Because the principal user of the internal services is the City’s governmental
activities, the financial statements of the internal service funds are consolidated into the governmental
column when presented in the government-wide financial statements. The cost of these services is
reported in the appropriate functional activity.
Description of Funds
The City reports the following major governmental funds:
General Fund – This is the general operating fund of the City. It is used to account for all financial
resources except those required to be accounted for in another fund.
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.
Brookview Capital Project Fund – This fund is used to account for the construction of the City’s
new Brookview Community Center.
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.
-39-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Brookview Operating Fund – This fund is used to account for the operation, maintenance, and
improvement of the City’s 18-hole regulation and 9-hole par three golf course facilities.
Motor Vehicle Operating Fund – This fund is used to account for the operation and maintenance of
the City’s Deputy Registrar function.
Recycling Fund – This fund is used to account for the operation of the City’s recycling, spring brush
pickup, and fall leaf drop-off programs.
The City also reports the following fund type:
Internal Service Funds – These funds are used to account for the City’s vehicle maintenance
operation, workers’ compensation insurance, and payroll benefits. Internal service funds operate in a
manner similar to enterprise funds; however, they provide services primarily to other departments
within the City.
E. Budgets and Budgetary Accounting
Each fall, 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.
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. 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 at amortized cost. The fund has no restrictions on withdrawals.
The City categorizes its fair value measurements within the fair value hierarchy established by accounting
principles generally accepted in the United States of America. The hierarchy is based on the valuation
inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for
identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant
unobservable inputs. Debt securities classified in Level 2 of the fair value hierarchy are valued using a
matrix pricing technique. Matrix pricing is used to value securities based on the securities’ relationship to
benchmark quoted prices. See Note 2 for the City’s recurring fair value measurements as of the current
year-end.
-40-
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 r ecord 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 inflow of
resources in the governmental fund financial statements.
Special assessments receivable at December 31, 2017 consist of the following:
Enterprise
Funds
Street Capital
Reconstruction Improvement
General Debt Service Capital Project Nonmajor Utility
Special assessments receivable
Delinquent 3,095$ 12,689$ 850$ –$ 43,796$
Deferred 7,371 2,808,285 – 333,287 377,267
Total 10,466 2,820,974 850 333,287 421,063
Allowance for uncollectible – – – – (43,796)
Net of allowance 10,466$ 2,820,974$ 850$ 333,287$ 377,267$
Governmental Funds
-41-
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. Prepaid Items
Certain payments to vendors that reflect costs applicable to future periods are reported as prepaid items.
In the governmental funds, prepaid items are reported using the consumption method.
M. Capital Assets
Capital assets, which include property, buildings, improvements, equipment, and infrastructure assets
(roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business-type
activities columns in the government -wide financial statements. Such assets are capitalized at historical
cost, or estimated historical cost for assets where actual historical cost is not available . Donated assets are
recorded as capital assets at their estimated acquisition value on the date of donation. The City defines
capital assets as those with an initial, individual cost of $5,000 or more with an estimated useful life in
excess of one year. The cost of normal maintenance and repairs that do not add to the value of the asset or
materially extend asset lives are not capitalized.
Capital assets are recorded in the government-wide and proprietary fund financial statements, but are not
reported in the governmental fund financial statements. Interest incurred during the construction phase of
capital assets for business-type activities is included as part of the capitalized value of the assets
constructed. Capital assets are depreciated using the straight-line method over their estimated useful lives.
Land and construction in progress are not depreciated. Useful lives vary from 10 to 50 years for land
improvements and buildings and improvements, 3 to 20 years for machinery and equipment, and
20 to 50 years for infrastructure.
N. Deferred Outflows/Inflows of Resources
In addition to assets and liabilities, statements of financial position or balance sheets will sometimes
report separate sections for 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 unavailable
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.
-42-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Deferred outflows and inflows of resources related to pensions 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, changes of assumptions, differences
between projected and actual earnings on pension plan investments, and contributions to the plan
subsequent to the measurement date and before the end of the reporti ng period. These amounts are
deferred and amortized as required under pension standards.
O. Long-Term Liabilities
In the government-wide and proprietary fund financial statements, long-term debt and other long-term
obligations are reported as liabilities. Bond premiums and discounts are deferred and amortized over the
life of the bonds using the straight-line method.
In the fund financial statements, governmental fund types recognize bond premiums and discounts during
the current period. The face amount of debt issued is reported as other financing sources. Premiums or
discounts on debt issuances are reported as other financing sources or uses, respectively.
P. Compensated Absences
Substantially all regular full-time and part-time city employees hired before January 1, 2009 earn vacation
and sick leave at various rates based on longevity. Unused vacation may be accumulated up to a
maximum of two times the employee’s annual vacation allowance. Unused sick leave may be
accumulated up to a maximum of 800 hours. Employees in good standing are paid for any unused
vacation time upon termination. After five years of service, employees in good standing are also paid for
one-third of any unused sick leave upon termination. Employees hired on or after January 1, 2009 earn
personal time off (PTO) rather than vacation and sick leave. PTO may be accumulated up to various
maximum amounts as specified by contract. Employees in good standing are paid for any unused PTO
upon termination. All such benefits are payable at the employee’s current rate of pay at the time their
employment with the City terminates. These benefits are accrued as they vest in the Payroll Benefits
Internal Service Fund and are funded as they accrue from the City’s General Fund and enterprise funds.
Q. 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.
R. Use of Estimates
The preparation of financial statements, in conformity with accounting principles generally accepted in
the United States of America, requires management to make estimates and assumptions that affect the
amounts reported at the date of the financial statements during the reporting period. Actual results could
differ from those estimates.
-43-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
S. Risk Management
The City is exposed to various risks of loss related to torts: theft of, damage to, and destruction of assets;
errors and omissions; and natural disasters. The City participates in the League of Minnesota Cities
Insurance Trust (LMCIT), a public entity risk pool for its general property and casualty, workers ’
compensation, and other miscellaneous insurance coverage. The LMCIT operates as a common risk
management and insurance program for a large number of cities in Minnesota. The City pays an annual
premium to the LMCIT for insurance coverage. The LMCIT agreement provides that the trust will be
self-sustaining through member premiums and will reinsure through commercial companies for claims in
excess of certain limits. The City also carries commercial insurance for certain other risks of loss. Settled
claims resulting from these risks did not exceed insurance coverage in any of the last three fiscal years.
There were no significant reductions in insurance coverage in the current year.
T. Fund Balance Classifications
In the fund financial statements, governmental funds report fund balance in classifications that disclose
constraints for which amounts in those funds can be spent. These classifications are as follows:
• Nonspendable – Consists of amounts that are not in spendable form, such as prepaid items,
inventory, and other long-term assets.
• Restricted – Consists of amounts related to externally imposed constraints established by
creditors, grantors, or contributors; or constraints imposed by state statutory provisions.
• Committed – Consists of internally imposed constraints established by resolution of the City
Council, which cannot be used for any other purpose unless the City Council removes or changes
the specified use by taking the same type of action employed to previously commit those
amounts.
• Assigned – Consists of internally imposed constraints representing amounts intended to be used
by the City for specific purposes that do not meet the criteria to be classified as restricted or
committed. Assigned amounts represent intended uses established by the governing body itself or
by an official to which the governing body delegates the authority. Pursuant to City Council
resolution, the City Council is authorized to establish assignments of fund balance.
• Unassigned – The residual classification for the General Fund, which also reflects negative
residual amounts in other funds.
When both restricted and unrestricted resources are available for use, it is the City’s policy to first use
restricted resources, and then use unrestricted resources as needed. When committed, assigned, or
unassigned resources are available for use, it is the City’s policy to use resources in the following
order: 1) committed, 2) assigned, and 3) unassigned.
The City’s fund balance policy includes a fund balance goal in the General Fund of maintaining an
unassigned fund balance of 60 percent of current year budgeted General Fund expenditures.
-44-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
U. Net Position
In the government-wide and proprietary fund financial statements, net position represents the difference
between assets, deferred outflows of resources, liabilities, and deferred inflows of resources. Net position
is displayed in three components:
• Net Investment in Capital Assets – Consists of capital assets, net of accumulated depreciation,
reduced by any outstanding debt attributable to acquire capital assets.
• Restricted Net Position – Consists of net position restricted when there are limitations imposed
on its use through external restrictions imposed by creditors, grantors, or laws or regulations of
other governments.
• Unrestricted Net Position – All other elements of net position that do not meet the definition of
“restricted” or “net investment in capital assets.”
The City applies restricted resources first when an expense is incurred for which both restricted and
unrestricted resources are available.
NOTE 2 – CASH AND INVESTMENTS
A. Components of Cash and Investments
Cash and investments at year-end consist of the following:
Deposits 4,948,362$
Investments 76,690,145
Cash on hand 5,365
Total 81,643,872$
Cash and investments are presented in the financial statements as follows:
Government-Wide Statement of Net Position
Cash and temporary investments 68,582,792$
Restricted assets – cash and temporary investments 13,061,080
Total 81,643,872$
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.
-45-
NOTE 2 – CASH AND INVESTMENTS (CONTINUED)
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 $4,948,362, while the balance on the
bank records was $5,375,513. At December 31, 2017, all deposits were fully covered by federal
depository insurance or collateral held by the City’s agent in the City’s name.
C. Investments
In vestments 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 invest ments.
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 $10,000,000; that are a
primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; or
certain Minnesota securities broker-dealers. The City’s investment policies do not further address
credit risk.
-46-
NOTE 2 – CASH AND INVESTMENTS (CONTINUED)
The City has the following investments at year-end:
Fair Value Concentration
Measurements Risk
Investment Type Rating Agency Using No Maturity Less Than 1 1 to 5 Total > 5 Percent
U.S. treasuries AAA Moody Level 1 –$ 31,957$ –$ 31,957$ N/A
U.S. agency debt securities
Federal Home Loan Bank AA S&P Level 2 – 1,369,726 5,466,905 6,836,631 Yes
Federal Home Loan Mortgage Corporation AA S&P Level 2 – 4,999,650 10,038,971 15,038,621 Yes
Federal National Mortgage Association AA S&P Level 2 – – 5,331,839 5,331,839 Yes
Federal Farm Credit Bank AA S&P Level 2 – 999,230 1,978,080 2,977,310 No
Local government debt securities AA S&P Level 2 – – 4,120,727 4,120,727 No
Local government debt securities AA Moody’s Level 2 – – 1,470,215 1,470,215 No
Local government debt securities A Moody’s Level 2 – 479,345 1,942,040 2,421,385 No
Negotiable certificates of deposit Level 2 – 1,239,159 4,906,614 6,145,773 No
Investment pool/mutual funds
4M Fund Not Applicable 29,936,971 – – 29,936,971 N/A
First American Government Obligations AAA S&P Level 2 2,378,716 – – 2,378,716 N/A
Total investments 32,315,687$ 9,119,067$ 35,255,391$ 76,690,145$
N/A – Not Applicable
Not Rated
Credit Risk Maturity Duration in Years
Interest Risk –
Not Rated
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 536$ Short-term cash flow
General Nonmajor governmental 11,939 Short-term cash flow
Nonmajor governmental Nonmajor governmental 66,398 Short-term cash flow
Storm Sewer Utility Enterprise Utility Enterprise 177,217 Current portion of advance (1)
Capital Improvement Capital Project Utility Enterprise 186,240 Current portion of advance (2)
Storm Sewer Utility Enterprise Winnetka/Medicine Lake
Tax Increment Capital Project 66,111 Current portion of advance (3)
508,441
Advances to/from other funds
Storm Sewer Utility Enterprise Utility Enterprise 1,032,000 Advance (1)
Capital Improvement Capital Project Utility Enterprise 1,260,000 Advance (2)
Storm Sewer Utility Enterprise Winnetka/Medicine Lake
Tax Increment Capital Project 1,000,000 Advance (3)
3,292,000
Total interfund balances reported on fund financial statements 3,800,441
Interfund activity eliminated from government-wide financial statements (3,420,312)
Internal service fund activities related to business-type activities 2,394,295
Internal balances reported on government-wide financial statements 2,774,424$
-47-
NOTE 3 – INTERFUND BALANCES AND TRANSFERS (CONTINUED)
B. Descriptions of Advances
1) In 2014, the Storm Sewer Utility Enterprise Fund advanced $1,720,000 to the Utility Enterprise
Fund to finance an emergency water supply project. The advance will be repaid through annual
payments due each October 31 from 2015 through 2024, consisting of $172,000 principal plus
interest on the outstanding balance at 2.6 percent. Interest for 2017 was $5,218.
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 2017 was $6,241.
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 2017 was $36,668.
C. Interfund Transfers
Interfund transfers for the 2017 fiscal year were as follows:
Capital Douglas Drive
General Improvement Improvement Nonmajor Total
Governmental Funds
General –$ –$ –$ 2,731,420$ (1)2,731,420$
Douglas Drive Improvement – 10,039 (1)– – 10,039
Nonmajor – – – 373,379 (2)373,379
Enterprise Funds
Utility – – 1,000,000 (1)– 1,000,000
Motor Vehicle Operating 30,000 (3)– – – 30,000
Total 30,000$ 10,039$ 1,000,000$ 3,104,799$ 4,144,838$
(1)Transfers to finance current or future capital purchases or construction.
(2)Transfers to allocate bond proceeds to cover project costs incurred prior to bond sale or to meet debt service needs.
(3)Transfer to support General Fund budget.
Transfers In
Transfers Out
Governmental Funds
-48-
NOTE 4 – CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2017 was as follows:
A. Changes in Capital Assets Used in Governmental Activities
Transfers and
Beginning Completed
of Year Additions Deletions Construction End of Year
Capital assets, not depreciated
Land 3,527,685$ –$ –$ –$ 3,527,685$
Construction in progress 11,266,803 20,026,536 – (1,579,149) 29,714,190
Total capital assets, not depreciated 14,794,488 20,026,536 – (1,579,149) 33,241,875
Capital assets, depreciated
Land improvements 5,633,820 252,590 (32,720) – 5,853,690
Buildings and improvements 13,848,345 145,019 (1,115,857) – 12,877,507
Machinery and equipment 12,445,321 1,898,416 (668,802) 156,596 13,831,531
Infrastructure 115,651,073 48,432 – 1,422,553 117,122,058
Total capital assets, depreciated 147,578,559 2,344,457 (1,817,379) 1,579,149 149,684,786
Less accumulated depreciation on
Land improvements (3,437,803) (181,888) 24,385 – (3,595,306)
Buildings and improvements (10,721,591) (247,427) 1,036,775 – (9,932,243)
Machinery and equipment (6,495,122) (1,005,418) 616,720 – (6,883,820)
Infrastructure (62,323,443) (5,096,475) – – (67,419,918)
Total accumulated depreciation (82,977,959) (6,531,208) 1,677,880 – (87,831,287)
Net capital assets, depreciated 64,600,600 (4,186,751) (139,499) 1,579,149 61,853,499
Total capital assets, net 79,395,088$ 15,839,785$ (139,499)$ –$ 95,095,374$
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 5,195,792 4,806,494 – (1,593,872) 8,408,414
Total capital assets, not depreciated 6,052,836 4,806,494 – (1,593,872) 9,265,458
Capital assets, depreciated
Land improvements 3,181,536 41,868 (68,189) – 3,155,215
Buildings and improvements 667,657 130,723 (10,229) – 788,151
Machinery and equipment 4,347,647 768,404 (448,185) – 4,667,866
Infrastructure – distribution
and collection systems 41,546,632 50,000 – 1,593,872 43,190,504
Total capital assets, depreciated 49,743,472 990,995 (526,603) 1,593,872 51,801,736
Less accumulated depreciation on
Land improvements (2,581,658) (57,656) 14,785 – (2,624,529)
Buildings and improvements (500,361) (19,090) 9,664 – (509,787)
Machinery and equipment (3,001,480) (311,147) 436,672 – (2,875,955)
Infrastructure – distribution
and collection systems (15,281,229) (1,301,746) – – (16,582,975)
Total accumulated depreciation (21,364,728) (1,689,639) 461,121 – (22,593,246)
Net capital assets, depreciated 28,378,744 (698,644) (65,482) 1,593,872 29,208,490
Total capital assets, net 34,431,580$ 4,107,850$ (65,482)$ –$ 38,473,948$
-49-
NOTE 4 – CAPITAL ASSETS (CONTINUED)
C. Depreciation Expense by Function
Depreciation expense for the year ended December 31, 2017 was charged to the following functions:
Governmental activities
General government 93,590$
Public safety 465,282
Physical development 5,590,344
Parks and recreation 367,838
Capital assets held by the City’s internal service funds – charged
to the various functions based on usage of the assets 14,154
Total depreciation expense – governmental activities 6,531,208$
Business-type activities
Utility (water and sewer)822,390$
Storm sewer utility 755,177
Brookview (golf course) operating 110,443
Motor vehicle operating 1,629
Total depreciation expense – business-type activities 1,689,639$
-50-
NOTE 5 – LONG-TERM LIABILITIES
A. Long-Term Liabilities
The City’s long-term liabilities at December 31, 2017 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 2008A 6,680,000$ 3.50–4.25%06/15/2008 02/01/2018 6,420,000$
Improvement Bonds of 2009A 7,305,000$ 2.00–4.00%05/01/2009 02/01/2020 5,330,000
Improvement Refunding Bonds of 2009D 5,465,000$ 2.00–4.00%08/19/2009 02/01/2018 880,000
Improvement Bonds of 2010A 3,845,000$ 2.00–4.00%06/15/2010 02/01/2030 2,235,000
Improvement Bonds of 2011A 1,840,000$ 2.00–4.00%05/15/2011 02/01/2031 1,365,000
Improvement Refunding Bonds of 2011C 4,870,000$ 2.00–3.00%05/15/2011 02/01/2019 1,305,000
Improvement Bonds of 2012A 1,575,000$ 2.00–3.00%05/15/2012 02/01/2032 1,180,000
Improvement Refunding Bonds of 2012C 5,960,000$ 2.00–2.25%05/15/2012 02/01/2025 5,510,000
Improvement Bonds of 2013A 1,735,000$ 1.25–3.00%05/21/2013 02/01/2033 1,320,000
Improvement Refunding Bonds of 2013B 7,025,000$ 2.00%05/21/2013 02/01/2026 6,755,000
Improvement Bonds of 2014A 2,335,000$ 1.00–3.40%06/19/2014 02/01/2035 2,235,000
Improvement Refunding Bonds of 2014C 3,950,000$ 2.00–4.00%06/19/2014 02/01/2027 3,950,000
Improvement Bonds of 2015A 1,870,000$ 3.00–3.50%07/15/2015 02/01/2036 1,595,000
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 1,215,000
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
55,340,000
General obligation street reconstruction bonds
Street Reconstruction Bonds of 2016C 5,630,000$ 2.13–4.00%07/07/2016 02/01/2037 5,630,000
General obligation certificates of indebtedness
Equipment Certificates of 2014B 750,000$ 0.40–0.90%06/19/2014 02/01/2018 250,000
Equipment Certificates of 2015B 800,000$ 2.00%07/15/2015 02/01/2019 535,000
Equipment Certificates of 2016B 800,000$ 2.00%07/07/2016 02/01/2020 800,000
Equipment Certificates of 2017A 815,000$ 3.00%07/20/2017 02/01/2021 815,000
2,400,000
General obligation tax abatement bonds
Tax Abatement Refunding Bonds of 2013A 2,075,000$ 1.25%05/21/2013 02/01/2019 670,000
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 1,520,000
Lease Revenue Bonds
2016C Lease Revenue Bonds (Brookview
Community Center)17,410,000$ 2.00–4.00%10/19/2016 02/01/2037 17,410,000
Unamortized premiums 2,352,017
Compensated absences payable 1,585,622
Net pension liability – PERA 11,373,895
Net OPEB obligation 978,346
Total governmental activity long-term liabilities 100,429,880
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 39,688
Total business-type activity long-term liabilities 2,619,688
Total government-wide long-term liabilities 103,049,568$
-51-
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 2014C – These bonds were used to refund the 2018
through 2027 maturities of the City’s G.O. Improvement Bonds, Series 2007C, on their
February 1, 2017 call date. This “crossover refunding” reduced the City’s total future debt
service payments by $394,750 and resulted in a present value savings of $343,445.
o Improvement Refunding Bonds of 2015C – These bonds will be 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. Until the call date, the City will make all debt service payments
on the 2008A issue, and all debt service on the 2015C issue will be paid from the refunding
escrow account. This “crossover refunding” will reduce the City’s total future debt service
payments by $617,605 and result in a present value savings of $553,034.
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 four 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.
-52-
NOTE 5 – LONG-TERM LIABILITIES (CONTINUED)
• HRA Lease Revenue Bonds – The 2016C Lease Revenue Bonds were issued to finance the
construction of the new Brookview Community Center. The bonds were issued by the HRA, a
blended component unit of the City.
The funding for the debt is provided through a lease agreement between the City (as lessee) and
the HRA (as lessor), that requires the City to make rental payments sufficient to pay the debt
service on the bonds. Therefore, this bond issue has been included as an obligation of the City.
Title to the facility will transfer to the City upon completion of the lease agreement and
repayment of the related debt.
• Utility Revenue Bonds – These bonds were issued for improvements or projects that directly
benefit the Storm Sewer Utility 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 post-employment benefits (OPEB), as described
elsewhere in these notes. These benefits are paid from the Payroll Benefits Internal Service Fund.
C. Minimum Debt Payments
Minimum annual payments to retire bonds and certificates of indebtedness are as follows:
Year Ending
December 31,Principal Interest Principal Interest Principal Interest Principal Interest
2018 10,115,000$ 1,404,916$ 225,000$ 148,213$ 780,000$ 47,722$ –$ 28,559$
2019 7,610,000 1,090,624 225,000 143,713 800,000 31,225 15,000 27,563
2020 3,220,000 935,818 230,000 139,163 540,000 15,150 120,000 26,212
2021 3,450,000 859,873 235,000 134,513 280,000 4,200 120,000 23,813
2022 3,770,000 747,454 240,000 129,763 – – 125,000 21,362
2023–2027 19,670,000 2,435,229 1,295,000 554,338 – – 650,000 61,319
2028–2032 5,715,000 595,924 1,475,000 371,894 – – 140,000 1,750
2033–2037 1,660,000 131,808 1,705,000 131,175 – – – –
2038 130,000 2,112 – – – – – –
55,340,000$ 8,203,758$ 5,630,000$ 1,752,772$ 2,400,000$ 98,297$ 1,170,000$ 190,578$
General Obligation
Certificates of IndebtednessSpecial Assessment Bonds Street Reconstruction Bonds
General Obligation
Tax Increment Bonds
Governmental Activities
General ObligationGeneral Obligation
Year Ending
December 31,Principal Interest Principal Interest Principal Interest
2018 340,000$ 6,250$ 125,000$ 59,531$ 475,000$ 573,050$
2019 330,000 2,063 130,000 54,431 650,000 558,550
2020 – – 135,000 49,131 670,000 538,750
2021 – – 145,000 43,531 690,000 518,350
2022 – – 150,000 37,538 710,000 493,800
2023–2027 – – 835,000 88,791 3,960,000 2,049,400
2028–2032 – – – – 4,685,000 1,313,650
2033–2037 – – – – 5,570,000 427,500
670,000$ 8,313$ 1,520,000$ 332,953$ 17,410,000$ 6,473,050$
Tax Abatement Bonds State Aid Street Bonds Lease Revenue Bonds
General Obligation General Obligation HRA
Governmental Activities
-53-
NOTE 5 – LONG-TERM LIABILITIES (CONTINUED)
Year Ending
December 31,Principal Interest
2018 –$ 63,500$
2019 – 63,500
2020 120,000 62,300
2021 120,000 59,900
2022 125,000 57,450
2023–2027 655,000 248,075
2028–2032 735,000 163,628
2033–2037 825,000 62,484
2,580,000$ 780,837$
Business-Type Activities
Utility Revenue Bonds
D. Revenue Pledged
Future revenue pledged for the payment of long-term debt is as follows:
Percent of Remaining Principal Pledged
Use of Total Term of Principal and Interest Revenue
Bond Issue Proceeds Type Debt Service Pledge and Interest Paid Received
Utility Revenue Bonds,Storm sewer
Series 2016D improvements Utility charges 100%2016–2037 3,360,837$ 50,191$ 2,328,336$
Revenue Pledged Current Year
E. Changes in Long-Term Debt
Balance –
Beginning Balance –Due Within
of Year Additions Deletions End of Year One Year
Governmental activities
G.O. special assessment bonds 55,455,000$ 7,445,000$ 7,560,000$ 55,340,000$ 10,115,000$
G.O. street reconstruction bonds 5,630,000 – – 5,630,000 225,000
G.O. certificates of indebtedness 2,350,000 815,000 765,000 2,400,000 780,000
G.O. tax abatement bonds 1,015,000 – 345,000 670,000 340,000
G.O. tax increment bonds – 1,170,000 – 1,170,000 –
G.O. state aid street bonds 1,640,000 – 120,000 1,520,000 125,000
HRA lease revenue bonds 17,410,000 – – 17,410,000 475,000
Unamortized premiums 2,043,531 537,832 229,346 2,352,017 –
Compensated absences 1,575,785 1,047,711 1,037,874 1,585,622 1,198,894
Net pension liability – PERA 21,506,136 2,453,190 12,585,431 11,373,895 –
Net OPEB obligation 859,334 184,064 65,052 978,346 –
Total governmental activities 109,484,786 13,652,797 22,707,703 100,429,880 13,258,894
Business-type activities
Utility revenue bonds 2,580,000 – – 2,580,000 –
Unamortized premiums 41,745 – 2,057 39,688 –
Total business-type activities 2,621,745 – 2,057 2,619,688 –
Total 112,106,531$ 13,652,797$ 22,709,760$ 103,049,568$ 13,258,894$
-54-
NOTE 5 – LONG-TERM LIABILITIES (CONTINUED)
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, 2017, the
following conduit debt issues were outstanding:
Principal
Number Outstanding
Type of Debt Years Issued of Issues at Year-End
Multi-family housing revenue bonds 1999–2006 2 8,553,659$
Governmental/nonprofit revenue bonds 2007–2009 2 2,262,508
4 10,816,167$
NOTE 6 – COMPONENTS OF FUND BALANCE
At December 31, 2017, the City had the following fund balances:
Winnetka/
Street Medicine Lake Capital Douglas Drive
Reconstruction Brookview Tax Increment Improvement Improvement
General Debt Service Capital Project Capital Project Capital Project Capital Project Nonmajor Total
Nonspendable
Prepaid items 3,610$ –$ –$ –$ –$ –$ –$ 3,610$
Restricted
Debt service – 19,452,142 – – – – 3,824,971 23,277,113
Redevelopment – – – – – – 1,857,841 1,857,841
Street improvements – – – – – 1,337,475 5,006,011 6,343,486
Brookview – – 590,066 – – – 209,449 799,515
Lodging tax – – – – – – 8,975 8,975
Cemetery maintenance – – – – – – 82,183 82,183
DWI enforcement – – – – – – 144,856 144,856
Total restricted – 19,452,142 590,066 – – 1,337,475 11,134,286 32,513,969
Committed
Human service needs – – – – – – 213,524 213,524
Assigned
Street improvements – – – – – 29,028 1,000,762 1,029,790
Cable improvements – – – – – – 243,990 243,990
Park improvements – – – – – – 875,023 875,023
Brookview – – 1,113,584 – – – – 1,113,584
Equipment replacement – – – – – – 5,114,265 5,114,265
Capital improvements – – – – 3,899,825 – 1,078,708 4,978,533
Self-insurance 2,000,000 – – – – – – 2,000,000
Total assigned 2,000,000 – 1,113,584 – 3,899,825 29,028 8,312,748 15,355,185
Unassigned 10,400,239 – – (1,066,647) – – – 9,333,592
Total 12,403,849$ 19,452,142$ 1,703,650$ (1,066,647)$ 3,899,825$ 1,366,503$ 19,660,558$ 57,419,880$
-55-
NOTE 7 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN
A. Plan Description
The City provides post-employment benefits to certain eligible employees through the City’s OPEB Plan,
a single-employer defined benefit plan administered by the City. All post-employment benefits are based
on contractual agreements with employee groups. These contractual agreements do not include any
specific contribution or funding requirements. The plan does not issue a publicly available financial
report. These benefits are summarized as follows:
Post-Employment Insurance Benefits – All retirees of the City have the option under state law to
continue their medical insurance coverage through the City from the time of retirement until the
employee reaches the age of eligibility for Medicare. For members of all employee groups, the retiree
must pay the full premium to continue coverage for medical and dental insurance. The City is legally
required to include any retirees for whom it provides health insurance coverage in the same insurance
pool as its active employees, whether the premiums are paid by the City or the retiree. Consequently,
participating retirees are considered to receive a benefit known as an “implicit rate subsidy.” This
benefit relates to the assumption that the retiree receives a more favorable premium rate than they
would otherwise be able to obtain if purchasing insurance on their own, due to being included in the
same pool with the City’s younger and statistically healthier active employees.
Termination Pay Benefits – Certain employee groups may also become eligible to earn a
termination pay benefit payable at retirement in an amount equal to one day of pay per year of service
multiplied by their daily rate of pay at retirement. Eligibility for this benefit is based on years of
service and/or minimum age requirements. These benefits generally are paid into a post -retirement
healthcare savings plan administered by the Minnesota State Retirement System.
B. Funding Policy
The required contribution is based on projected pay-as-you-go financing requirements, with additional
amounts to prefund benefits as determined annually by the City.
C. Annual OPEB Cost and Net OPEB Obligation
The City’s annual OPEB cost (expense) is calculated based on annual required contributions (ARC) of the
City, an amount determined on an actuarially determined basis in accordance with the parameters of
Governmental Accounting Standards Board (GASB) Statement Nos. 43 and 45. The ARC represents a
level funding that, if paid on an ongoing basis, is projected to cover normal costs each year and amortize
any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The annual
OPEB cost is accrued in the Payroll Benefits Internal Service Fund. The liability is funded through
payments from the City’s General Fund and enterprise funds.
The following table shows the components of the City’s annual OPEB cost for the year, the amount
actually contributed to the plan, and the changes in the City’s net OPEB obligation to the plan:
ARC 178,942$
Interest on net OPEB obligation 38,670
Adjustment to ARC (33,548)
Annual OPEB cost (expense)184,064
Contributions made 65,052
Increase in net OPEB obligation 119,012
Net OPEB obligation – beginning of year 859,334
Net OPEB obligation – end of year 978,346$
-56-
NOTE 7 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net
OPEB obligation for the current and preceding year are as follows:
Percentage of
Fiscal Year Ended Annual Employer Annual OPEB Net OPEB
December 31,OPEB Cost Contribution Cost Contributed Obligation
2015 184,537$ 93,155$ 50.5%715,375$
2016 177,143$ 33,184$ 18.7%859,334$
2017 184,064$ 65,052$ 35.3%978,346$
D. Funded Status and Funding Progress
As of January 1, 2016, the most recent actuarial valuation date, the actuarial accrued liability for benefits
and unfunded actuarial accrued liability (UAAL) were both $1,460,308, as the plan was unfunded. The
covered payroll (annual payroll of active employees covered by the plan) was $9,238,970 and the ratio of
the UAAL to the covered payroll was 15.8 percent.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability occurrence of events far into the future. Examples include assumptions
about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the
funded status of the plan and ARC of the employer are subject to continual revision as actual results are
compared with past expectations and new estimates are made about the future. The Schedule of Funding
Progress immediately following the notes to basic financial statements presents multi -year trend
information about whether the actuarial value of plan assets is increasing or decreasing over time relative
to the actuarial accrued liabilities for benefits.
E. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and the plan members) and include the types of benefits provided at the time
of each valuation and the historical pattern of sharing of benefit costs between the employer and plan
members to that point. The actuarial methods and assumptions used include techniques that are designed
to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of
assets, consistent with the long-term perspective of the calculations.
In the January 1, 2016 actuarial valuation, the projected unit credit actuarial cost method was used. The
actuarial assumptions included: a 4.5 percent investment rate of return (net of administrative expenses)
based on the City’s own investments; an annual payroll growth rate of 3.5 percent; and an ann ual
healthcare trend rate of 9.0 percent initially, reduced by decrements to an ultimate rate of 5.0 percent after
12 years. The UAAL is being amortized on a level dollar basis over a closed period. The remaining
amortization period at January 1, 2016 was 30 years.
-57-
NOTE 8 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE
A. Plan Description
The City participates in the following cost-sharing, multiple-employer defined benefit pension plans
administered by the PERA 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. GERF
members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are
covered by Social Security and Basic Plan members are not. The Basic Plan was closed to new
members in 1967. All new members must participate in the Coordinated Plan.
2. Public Employees Police and Fire Fund (PEPFF)
The 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.
Benefit increases are provided to benefit recipients each January. Increases are related to the funding ratio
of the plan. Members in plans that are at least 90.0 percent funded for two consecutive years are given
2.5 percent increases. Members in plans that have not exceeded 90.0 percent funded, or have fallen below
80.0 percent, are given 1.0 percent increases.
The benefit provisions stated in the following paragraphs of this section are current provisions and apply
to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving
them yet are bound by the provisions in effect at the time they last terminated their public service.
1. GERF Benefits
Benefits are based on a member’s highest average salary for any five successive years of
allowable service, age, and years of credit at termination of service. Two methods are used to
compute benefits for the PERA’s Coordinated and Basic Plan members. The retiring member
receives the higher of a step-rate benefit accrual formula (Method 1) or a level accrual formula
(Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of
average salary for each of the first 10 years of service and 2.7 percent for each remaining year.
The annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each
of the first 10 years and 1.7 percent for each remaining year. Under Method 2, the annuity accrual
rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan
members for each year of service. For members hired prior to July 1, 1989, a full annuity is
available when age plus years of service equal 90 and normal retirement age is 65. For members
hired on or after July 1, 1989, normal retirement age is the age for unreduced Social Security
benefits capped at age 66.
-58-
NOTE 8 – 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. For the PEPFF members who were
first hired prior to July 1, 1989, a full annuity is available when age plus years of service equal at
least 90.
C. Contributions
Minnesota Statutes, Chapter 353 sets the rates for employer and employee contributions. Contribution
rates can only be modified by the State Legislature.
1. GERF Contributions
Basic Plan members and Coordinated Plan members were required to contribute 9.10 percent and
6.50 percent, respectively, of their annual covered salary in calendar year 2017. The City was
required to contribute 11.78 percent of pay for Basic Plan members and 7.50 percent for
Coordinated Plan members in calendar year 2017. The City’s contributions to the GERF for the
year ended December 31, 2017 were $522,131. 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
calendar year 2017. The City was required to contribute 16.20 percent of pay for members in
calendar year 2017. The City’s contributions to the PEPFF for the year ended December 31, 2017
were $519,363. 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, 2017, the City reported a liability of $7,067,015 for its proportionate share of
the GERF’s net pension liability. The net pension liability was measured as of June 30, 2017, 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, 2016 through June 30, 2017, relative to the total employer contributions
received from all of the PERA’s participating employers. The City’s proportionate share was
0.1107 percent at the end of the measurement period and 0.1072 percent for the beginning of t he
period.
The City’s net pension liability reflected a reduction due to the state of Minnesota’s contribution
of $6 million to the fund. The state of Minnesota is considered a nonemployer contributing entity
and the state’s contribution meets the definition of a special funding situation. The amount
recognized by the City as its proportionate share of the net pension liability, the direct aid, and
total portion of the net pension liability that was associated with the City were as follows:
City’s proportionate share of net pension liability 7,067,015$
State’s proportionate share of the net pension liability
associated with the City 88,825$
-59-
NOTE 8 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
For the year ended December 31, 2017, the City recognized pension expense of $967,220 for its
proportionate share of the GERF’s pension expense. In addition, the City recognized an
additional $2,565 as pension expense (and grant revenue) for its proportionate share of the state
of Minnesota’s contribution of $6 million to the GERF.
At December 31, 2017, the City reported its proportionate share of the GERF’s deferred outflows
of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual economic experience 232,907$ 441,397$
Changes in actuarial assumptions 1,136,181 708,469
Differences between projected and actual investment earnings 9,451 –
Changes in proportion 213,137 158,170
Contributions paid to the PERA subsequent to the
measurement date 263,489 –
Total 1,855,165$ 1,308,036$
Deferred outflows of resources reported $263,489 related to pensions resulting from city
contributions subsequent to the measurement date that will be recognized as a reduction of the net
pension liability in the year ending December 31, 2018. Other amounts reported as deferred
outflows and deferred inflows of resources related to pensions will be recognized in pension
expense as follows:
Pension
Year Ending Expense
December 31,Amount
2018 218,844$
2019 437,827$
2020 (73,048)$
2021 (299,983)$
2. PEPFF Pension Costs
At December 31, 2017, the City reported a liability of $4,306,880 for its proportionate share of
the PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2017 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, 2016 through June 30, 2017, relative to the total employer contributions
received from all of the PERA’s participating employers. The City’s proportionate share was
0.3190 percent at the end of the measurement period, and 0.3190 percent for the beginning of the
period.
-60-
NOTE 8 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
For the year ended December 31, 2017, the City recognized pension expense of $1,051,841 for its
proportionate share of the PEPFF’s pension expense. The City also recognized $28,710 for the
year ended December 31, 2017 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 $9 million to the
PEPFF each year, starting in fiscal year 2014.
At December 31, 2017, the City reported its proportionate share of the PEPFF’s deferred outflows
of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual economic experience 99,136$ 1,155,818$
Changes in actuarial assumptions 5,636,411 6,114,700
Differences between projected and actual investment earnings 63,112 –
Changes in proportion – 51,901
Contributions paid to the PERA subsequent to the
measurement date 261,980 –
Total 6,060,639$ 7,322,419$
Deferred outflows of resources reported $261,980 related to pensions resulting from city
contributions subsequent to the measurement date that will be recognized as a reduction of the net
pension liability in the year ending December 31, 2018. Other amounts reported as deferred
outflows and inflows of resources related to pensions will be recognized in pension expense as
follows:
Pension
Year Ending Expense
December 31,Amount
2018 60,713$
2019 60,713$
2020 (99,148)$
2021 (342,925)$
2022 (1,203,113)$
E. Actuarial Assumptions
The total pension liability in the June 30, 2017 actuarial valuation was determined using 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 were based on RP-2014 tables for all plans for males or females, as
appropriate, with slight adjustments to fit the PERA’s experience. Cost of living benefit increases for
retirees are assumed to be 1.0 percent per year for the GERF through 2044, and the PEPFF through 2064,
and then 2.5 percent thereafter for both plans.
-61-
NOTE 8 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
Actuarial assumptions used in the June 30, 2017 valuation were based on the results of actuarial
experience studies. The most recent four-year experience study in the GERF was completed in 2015. The
most recent five-year experience study for the PEPFF was completed in 2016.
The following changes in actuarial assumptions occurred in 2017:
1. GERF
• The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active
members and 60.0 percent for vested and nonvested deferred members. The revised CSA
loads are now zero percent for active member liability, 15.0 percent for vested deferred
member liability, and 3.0 percent for nonvested deferred member liability.
• The assumed post-retirement benefit increase rate was changed from 1.0 percent per year for
all years, to 1.0 percent per year through 2044, and 2.5 percent per year thereafter.
2. PEPFF
• 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 percent for vested and nonvested deferred members. The CSA has
been changed to 33 percent for vested members and 2 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 3.0 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 percent to
60 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.
-62-
NOTE 8 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
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 39 %5.10 %
International stocks 19 5.30 %
Bonds 20 0.75 %
Alternative assets 20 5.90 %
Cash 2 – %
100 %
Target Long-Term Expected
Allocation Real Rate of Return
F. Discount Rate
The discount rate used to measure the total pension liability in 2017 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 10,961,465$ 7,067,015$ 3,878,700$
The City’s proportionate share of
the PEPFF net pension liability 8,111,111$ 4,306,880$ 1,166,277$
H. Pension Plan Fiduciary Net Position
Detailed information about the GERF’s fiduciary net position is available in a separately issued PERA
financial report. 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.
-63-
NOTE 9 – DEFINED CONTRIBUTION PENSION PLAN – STATE-WIDE
Councilmembers of the City are covered by the Public Employees Defined Contribution Plan (PEDCP), a
multiple-employer deferred compensation plan administered by the PERA. The PEDCP is a tax-qualified
plan under Section 401(a) of the IRC, and all contributions by or on behalf of employees are tax-deferred
until time of withdrawal.
Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less
administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the
employee and employer contribution rates for those qualified personnel who elect to participate. An
eligible elected official who decides to participate contributes 5 percent of their salary, which is matched
by the elected official’s employer. For ambulance service personnel, employer contributions are
determined by the employer, and for salaried employees, contributions must be a fixed percentage of
salary. Employer contributions for volunteer personnel may be a unit value for each call or period of alert
duty. Employees who are paid for their services may elect to make member contributions in an amount
not to exceed the employer share. Employer and employee contributions are combined and used to
purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund.
For administering the plan, the PERA receives 2 percent of employer contributions and twenty-five
hundredths of 1 percent (0.0025) of the assets in each member’s account annually.
Total contributions made by the City for the last three fiscal years were:
Required Rate
Employee Employer Employee Employer for Employees
2015 1,500$ 1,500$ 5%5%5%
2016 1,561$ 1,561$ 5%5%5%
2017 1,572$ 1,572$ 5%5%5%
Contribution Amount Percentage of Covered Payroll
NOTE 10 – DEFINED BENEFIT PENSION PLAN – FIRE RELIEF ASSOCIATION
A. Plan Description
All members of the Golden Valley Fire Department (the Department) are covered by a defined benefit
plan administered by the Golden Valley Fire Department Relief Association (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.
-64-
NOTE 10 – 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). Required
employer contributions are calculated annually based on statutory provisions. The City’s
statutorily-required contributions to the plan for the year ended December 31, 2017 were $0. The City’s
contributions were equal to the required contributions as set by state statutes. The City made no voluntary
contributions to the plan. Furthermore, the firefighter has no obligation to contribute to the plan.
D. Pension Costs
At December 31, 2017, the City reported a net pension liability (asset) of ($1,616,937) for the plan. The
net pension liability (asset) was measured as of December 31, 2016. The total pension liability used to
calculate the net pension liability (asset) in accordance with GASB Statement No. 68 was determined by
Van Iwaarden Associates applying an actuarial formula to specific census data certified by the
Department as of December 31, 2016.
For the year ended December 31, 2017, the City recognized pension expense of $194,990. The City also
recognized $153,252 as revenue for the state of Minnesota’s on-behalf contributions to the Department.
The following table presents the changes in net pension liability (asset) during the year:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability (Asset)
Beginning balance – January 1, 2017 2,931,082$ 4,632,798$ (1,701,716)$
Changes for the year
Service cost 169,611 – 169,611
Interest on pension liability (asset)221,030 – 221,030
Difference between expected
and actual experience 175,353 – 175,353
Changes of benefit terms 69,254 – 69,254
Contributions (state and city)– 153,252 (153,252)
Net investment income – 414,106 (414,106)
Benefit payments, including
member contribution refunds (307,251) (307,251) –
Administrative costs – (16,889) 16,889
Total net changes 327,997 243,218 84,779
Ending balance – December 31, 2017 3,259,079$ 4,876,016$ (1,616,937)$
-65-
NOTE 10 – DEFINED BENEFIT PENSION PLAN – FIRE RELIEF ASSOCIATION
(CONTINUED)
At December 31, 2017, 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 157,641$ –$
Change of assumptions – 35,786
Net difference between projected and actual earnings on
plan investments 140,821 –
State aid to the City subsequent to the measurement date 160,767 160,767
Total 459,229$ 196,553$
Deferred outflows and inflows of resources totaling $160,767 related to pensions resulting from the City’s
contributions of state aid received and passed through to the plan subsequent to the measurement date will
be recognized in the year ending December 31, 2018. Other amounts reported as deferred outflows and
inflows of resources related to the plan will be recognized in pension expense as follows:
Pension
Year Ending Expense
December 31,Amount
2018 63,194$
2019 63,194$
2020 68,805$
2021 (307)$
2022 13,516$
Thereafter 54,274$
E. Actuarial Assumptions
The total pension liability at December 31, 2016 was determined using the entry age normal actuarial cost
method and the following actuarial assumptions:
Retirement eligibility at 100 percent service pension at age 50 with 20 years of
service, early vested retirement at age 50 with 10 years of service vested at
60 percent and increased by 4 percent for each additional year of service up to
20, and eligibility for deferred service pension payable at age 50 with 20 years
of service
Salary increases 2.50% per year
Cost of living increases 0.00% per year
Investment rate of return 4.00%
20-year municipal bond yield 3.50%
There were no changes in actuarial assumptions in 2016, however, the plan benefit level was increased
from $7,500 to $8,000 per year of service.
-66-
NOTE 10 – 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 64.35 %5.58 %8.33 %
International equity 10.76 5.71 8.46
Fixed income 22.99 2.27 5.02
Real estate and alternatives 0.36 4.44 7.19
Cash and equivalents 1.54 0.84 3.59
Total 100.00 %7.50 %
Allocation
Target
Rate of Return
Expected Nominal
Long-TermLong-Term
Expected Real
Rate of Return
F. Discount Rate
The discount rate used to measure the total pension liability was 7.5 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
6.50%7.50%8.50%
Defined benefit plan (1,513,227)$ (1,616,937)$ (1,716,208)$
H. Pension Plan Fiduciary Net Position
The Association issues a publicly available financial report that includes financial statements and required
supplementary information. This report may be obtained at Golden Valley City Hall.
-67-
NOTE 11 – FLEXIBLE BENEFIT PLAN
The City offers three types of flexible spending accounts: medical premiums, medical expenses, and
dependent care expenses. Eligible employees can elect to participate by contributing pretax dollars
withheld from payroll checks to the plan for healthcare and dependent care benefits. Payments are made
from the plan to participating employees upon submitting a request for reimbursement of eligible
expenses actually incurred by the participant.
Before the beginning of the plan year, which is from January 1 to December 31, each participant
designates a total amount of pretax dollars to be contributed to the plan during the year . For the medical
expense account, the City is contingently liable for claims against the total amount of participants’ annual
contributions to the plan, whether or not such contributions have been made.
All plan activity is recorded in the City’s General Fund. Assets of the plan are held in the City’s payroll
checking account. Amounts withheld to pay for employee medical insurance premiums are administered
and paid out directly by the City’s finance department. Medical expense and dependent care expense
accounts are administered by the Stanton Group—a benefit consulting firm. Claims are made directly to
the Stanton Group by plan participants. The Stanton Group then reimburses the participants and bills the
City for these reimbursements.
All plan property and income attributable to that property is solely the property of the City subject to the
claims of the City’s general creditors. Participants’ rights under the plan are equal to those of general
creditors of the City in an amount equal to the eligible healthcare and dependent care expenses incurred
by the participants. The City believes it unlikely that it will use the assets to satisfy the claims of general
creditors in the future.
NOTE 12 – 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 2017
Original 6,650$ 65,390$ 8,438$ 81,310$
Current 33,700 69,041 8,438 81,310
Captured – retained 27,050$ 3,651$ –$ –$
G.O. tax increment bonds issued –$ 1,170,000$ –$ –$
Principal payments – – – –
Outstanding at December 31, 2017 –$ 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.
-68-
NOTE 12 – 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, 2017 is $196,643, and tax increment revenue rebated was $20,396 for
2017.
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 $2,622,070. No tax increment revenue was rebated under this
agreement in 2017.
NOTE 13 – JOINT POWERS AGREEMENTS
A. Bassett Creek Water Management Commission
The City is a member of a joint powers agreement, together with the cities of Medicine Lake, Plymouth,
Robbinsdale, Minneapolis, Minnetonka, New Hope, Crystal, and St. Louis Park, which establishes the
authority for the Bassett Creek Water Management Commission (the Commission). The Commission was
created to provide for the improvement and development of Bassett Creek as a storm sewer to channel
storm waters from member communities to the Mississippi River. Each member city is entitled to appoint
one representative to the Commission. The nine-member commission develops a budget for the year each
July 1. Each member city contributes funds to cover the budgeted costs of the operations-based half on
the assessed valuation of all taxable property, and half on the total area each member city has within the
boundaries of the watershed. Any capital costs incurred by the Commission are apportioned to the
members-based half on the real property valuation of each member city within the watershed, and half on
the total area of each member city within the boundaries of the watershed.
-69-
NOTE 13 – JOINT POWERS AGREEMENTS (CONTINUED)
The following financial information is from the Commission’s audited financial statements for the year
ended January 31, 2018, which are available at Golden Valley City Hall:
Total assets – all current 5,612,281$
Total liabilities – all current 533,640
Net position 5,078,641$
Revenue 2,096,215$
Expenses 1,055,069
Change in net position 1,041,146$
Of the total revenue, $500,001 represented assessments to member cities. The City’s 2017 portion was
$131,270, or 26.3 percent, of total assessments paid by members.
B. Joint Water Commission (JWC)
The City is a member of a joint powers agreement, together with the cities of Crystal and New Hope,
which established a JWC. The JWC was created in 1963 to provide for the creation and maintenance of a
joint water supply, storage, and distribution system through which water purchased from the City of
Minneapolis can be supplied to the population of the member cities.
Each member city is entitled to appoint one member to the JWC. Original construction costs were
allocated to the member cities based on percentages agreed upon in the joint powers agreement. All
subsequent operating and maintenance costs are apportioned to and paid by each member city on the basis
of water usage. Under the terms of the joint powers agreement, upon termination the accumulated as sets
of the JWC shall be divided amongst the member cities in a manner to be determined and unanimously
approved by the member cities. Because the manner in which the JWC’s assets would be divided upon
termination is not specified, it is not practical for the City to determine its portion of JWC assets.
Therefore, the City’s Utility Enterprise Fund does not record any amount as an equity investment or
contributed capital (for construction costs paid by other funds) related to the JWC.
The following financial information is from the JWC’s audited financial statements for the year ended
December 31, 2017, which are available at Golden Valley City Hall:
Total assets 16,667,382$
Total liabilities 572,124
Net position 16,095,258$
Revenue 7,893,535$
Expenses 7,417,031
Change in net position 476,504$
Of the total revenues, $7,749,748 represented assessments paid by member cities. Of the total member
assessments, $3,269,302, or 42.2 percent, was paid by the City.
-70-
NOTE 14 – CONTINGENCIES AND COMMITMENTS
A. Legal Claims
The City has the usual and customary type of miscellaneous legal claims pending at year -end. Although
the outcome of these lawsuits is not presently determinable, the City’s management believes that the City
will not incur any material monetary loss resulting from these claims . No loss has been recorded on the
City’s financial statements relating to these claims.
B. Federal and State Receivables
Amounts recorded or receivable from federal and state agencies are subject to agency audit and
adjustment. Any disallowed claims, including amounts already collected, may constitute a liability of the
applicable funds. The amount, if any, of claims which may be disallowed by the grantor agencies cannot
be determined at this time, although the City expects such amounts, if any, to be immaterial.
C. Tax Increment Districts
The City’s tax increment districts are subject to review by the Office of the State Auditor. Any disallowed
claims or misuse of tax increments could become a liability of the applicable fund. Management has
indicated that they are not aware of any instances of noncompliance which would have a material effect
on the financial statements.
D. Construction Commitments
At December 31, 2017, the City is committed to various construction contracts for the improvement of
city property. The City’s remaining commitment under these contracts is approximately $6,617,277.
NOTE 15 – DEFICIT FUND BALANCES/NET POSITION
At December 31, 2017, the Winnetka/Medicine Lake Tax Increment Capital Project Fund reported a
deficit fund balance of $1,066,647. 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, 2017, the Payroll Benefits Internal Service Fund reported a deficit net position of
$10,621,601. The deficit is due to the fund reporting the City’s proportionate share of net pension
liabilities related to two state-wide, multi-employer, cost-sharing defined benefit pension plans
administered by the PERA, as described earlier in these notes. This deficit will be eliminated through the
future funding of these liabilities.
NOTE 16 – SUBSEQUENT EVENTS
In May 2018, the City Council approved the sale of $2,950,000 of General Obligation Improvement
Bonds, Series 2018A. The proceeds of this issue will be used to fund the City’s annual pavement
management program. The bonds bear interest rates ranging from 3.000 percent to 3.375 percent and have
a final maturity of February 1, 2038.
THIS PAGE INTENTIONALLY LEFT BLANK
REQUIRED SUPPLEMENTARY INFORMATION
(Unfunded)Unfunded
Actuarial Actuarial Actuarial Liability as a
Valuation Date –Accrued Actuarial Value Accrued Covered Percentage of
January 1,Liability of Plan Assets Liability Payroll Payroll
2012 1,710,953$ –$ 1,710,953$ – %8,136,559$ 21.0%
2014 1,714,926$ –$ 1,714,926$ – %8,825,950$ 19.4%
2016 1,460,308$ –$ 1,460,308$ – %9,238,970$ 15.8%
Ratio
Funded
Schedule of Funding Progress
CITY OF GOLDEN VALLEY
Other Post-Employment Benefits Plan
December 31, 2017
-71-
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%
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%
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, 2017
December 31, 2017
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
-72-
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%
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%
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, 2017
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, 2017
-73-
City fiscal year-end date 2015 2016 2017
year-end date (measurement date)2014 2015 2016
Total pension liability
Service cost 158,309$ 162,663$ 169,611$
Interest 189,130 198,248 221,030
Difference between expected and actual experience – – 175,353
Changes in assumptions – (44,179) –
Changes of benefit terms – – 69,254
Benefit payments (332,858) (110,208) (307,251)
Net change in total pension liability 14,581 206,524 327,997
Total pension liability – beginning 2,709,977 2,724,558 2,931,082
Total pension liability – ending 2,724,558$ 2,931,082$ 3,259,079$
Plan fiduciary net position
Contributions (state and local)143,581$ 148,972$ 153,252$
Net investment income 335,884 (20,626) 414,106
Benefit payments (332,858) (110,208) (307,251)
Administrative costs (16,509) (15,827) (16,889)
Net change in plan fiduciary net position 130,098 2,311 243,218
Total pension liability – beginning 4,500,389$ 4,630,487$ 4,632,798$
Total pension liability – ending 4,630,487$ 4,632,798$ 4,876,016$
Net pension liability (asset) – ending (1,905,929)$ (1,701,716)$ (1,616,937)$
Plan fiduciary net position as a percentage
of the total pension liability 169.95%158.06%149.61%
Note: The City implemented GASB Statement No.68 in fiscal 2015 (using a December 31,2014 measurement date).This
schedule is intended to present 10-year trend information. Additional years will be added as they become available.
CITY OF GOLDEN VALLEY
Golden Valley Fire Department Relief Association
Schedule of Changes in Net Pension Asset and Related Ratios
December 31, 2017
Golden Valley Fire Department Relief Association
-74-
Nonemployer
Statutorily Contribution
Required Actual Contribution State 2%
Contributions Contributions Excess Fire Aid
1,141$ 1,141$ –$ 142,440$
–$ –$ –$ 148,972$
–$ –$ –$ 153,252$
–$ –$ –$ 160,767$
Note:
December 31, 2017
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
-75-
CITY OF GOLDEN VALLEY
Notes to Required Supplementary Information
December 31, 2017
-76-
PERA – GENERAL EMPLOYEES RETIREMENT FUND
2017 CHANGES IN ACTUARIAL ASSUMPTIONS:
• The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members and
60 percent for vested and nonvested deferred members. The revised CSA loads are now zero percent
for active member liability, 15.0 percent for vested deferred member liability, and 3.0 percent for
nonvested deferred member liability.
• The assumed post-retirement benefit increase rate was changed from 1.0 percent per year for all years,
to 1.0 percent per year through 2044, and 2.5 percent per year thereafter.
2016 CHANGES IN ACTUARIAL ASSUMPTIONS:
• The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2035,
and 2.5 percent per year thereafter, to 1.0 percent per year for all years.
• The assumed investment return was changed from 7.9 percent to 7.5 percent. The single discount rate
was changed from 7.9 percent to 7.5 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 1.0 percent per year through 2030,
and 2.5 percent per year thereafter, to 1.0 percent per year through 2035, and 2.5 percent per year
thereafter.
CITY OF GOLDEN VALLEY
Notes to Required Supplementary Information (continued)
December 31, 2017
-77-
PERA – PUBLIC EMPLOYEES POLICE AND FIRE FUND
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 percent for vested and nonvested deferred members. The CSA has been changed
to 33 percent for vested members, and 2 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 3.0 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 percent to 60 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.
2016 CHANGES IN ACTUARIAL ASSUMPTIONS:
• The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2037,
and 2.5 percent thereafter, to 1.0 percent per year for all future years.
• The assumed investment return was changed from 7.9 percent to 7.5 percent. The single discount rate
changed from 7.9 percent to 5.6 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.
CITY OF GOLDEN VALLEY
Notes to Required Supplementary Information (continued)
December 31, 2017
-78-
PERA – PUBLIC EMPLOYEES POLICE AND FIRE FUND (CONTINUED)
2015 CHANGES IN PLAN PROVISIONS:
• The post-retirement benefit increase to be paid after attainment of the 90 percent funding threshold was
changed from inflation up to 2.5 percent, to a fixed rate of 2.5 percent.
2015 CHANGES IN ACTUARIAL ASSUMPTIONS:
• The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2030,
and 2.5 percent per year thereafter, to 1.0 percent per year through 2037, and 2.5 percent per year
thereafter.
GOLDEN VALLEY FIRE DEPARTMENT RELIEF ASSOCIATION
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 increased 7.00 percent to 7.50 percent.
THIS PAGE INTENTIONALLY LEFT BLANK
SUPPLEMENTAL INFORMATION
-79-
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.
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.
-80-
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.
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, Cornerstone Creek No. 1507, and Winnetka-Medicine Lake No. 1508.
THIS PAGE INTENTIONALLY LEFT BLANK
Special Revenue Debt Service Capital Project Totals
Assets
Cash and temporary investments 1,122,416$ 3,758,573$ 15,371,998$ 20,252,987$
Receivables
Special assessments – 314,681 18,606 333,287
Accounts 55,731 – 9,815 65,546
Due from other funds – 66,398 – 66,398
Due from other governmental units 11,522 – 63,663 75,185
Total assets 1,189,669$ 4,139,652$ 15,464,082$ 20,793,403$
Liabilities
Accounts payable 34,502$ –$ 216,696$ 251,198$
Contracts payable – – 129,017 129,017
Due to other governmental units – – 152 152
Deposits 301,498 – 39,356 340,854
Due to other funds 7,355 – 70,982 78,337
Total liabilities 343,355 – 456,203 799,558
Deferred inflows of resources
Unavailable revenue – special assessments – 314,681 18,606 333,287
Fund balances
Restricted 632,790 3,824,971 6,676,525 11,134,286
Committed 213,524 – – 213,524
Assigned – – 8,312,748 8,312,748
Total fund balances 846,314 3,824,971 14,989,273 19,660,558
Total liabilities, deferred inflows of
resources, and fund balances 1,189,669$ 4,139,652$ 15,464,082$ 20,793,403$
CITY OF GOLDEN VALLEY
Nonmajor Governmental Funds
Combining Balance Sheet
December 31, 2017
-81-
Special Revenue Debt Service Capital Project Totals
Revenue
Ad valorem taxes –$ 2,067,698$ –$ 2,067,698$
Tax increments – – 20,920 20,920
Special assessments – 237,277 52,220 289,497
Franchise taxes – 390,000 – 390,000
Intergovernmental revenue 23,043 – 952,927 975,970
Charges for services 22,229 – – 22,229
Investment income 6,480 21,054 117,414 144,948
Other revenue
Lawful gambling proceeds 37,560 – – 37,560
Miscellaneous 125,203 53,192 255,807 434,202
Total revenue 214,515 2,769,221 1,399,288 4,383,024
Expenditures
Current
General government 84,528 – – 84,528
Public safety 44,118 – – 44,118
Parks and recreation 101,472 101,472
Capital outlay 6,809 – 5,758,395 5,765,204
Debt service
Principal – 1,110,000 120,000 1,230,000
Interest and fiscal charges – 678,935 130,338 809,273
Total expenditures 236,927 1,788,935 6,008,733 8,034,595
Excess (deficiency) of revenue
over expenditures (22,412) 980,286 (4,609,445) (3,651,571)
Other financing sources (uses)
Sale of capital assets – – 143,274 143,274
Bonds issued – 8,931 5,321,069 5,330,000
Premiums on bonds issued – 73,681 160,732 234,413
Transfers in – – 3,104,799 3,104,799
Transfers (out)– – (373,379) (373,379)
Total other financing sources (uses)– 82,612 8,356,495 8,439,107
Net change in fund balances (22,412) 1,062,898 3,747,050 4,787,536
Fund balances
Beginning of year 868,726 2,762,073 11,242,223 14,873,022
End of year 846,314$ 3,824,971$ 14,989,273$ 19,660,558$
CITY OF GOLDEN VALLEY
Nonmajor Governmental Funds
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances
Year Ended December 31, 2017
-82-
Human DWI HRA Lodging
Service Cemetery Enforcement General Brookview Tax Totals
Assets
Cash and temporary
investments 218,008$ 82,183$ 136,019$ 447,843$ 222,880$ 15,483$ 1,122,416$
Receivables
Accounts 4,040 – – – 36,858 14,833 55,731
Due from other
governmental units – – 11,522 – – – 11,522
Total assets 222,048$ 82,183$ 147,541$ 447,843$ 259,738$ 30,316$ 1,189,669$
Liabilities
Accounts payable 8,024$ –$ 2,685$ –$ 2,452$ 21,341$ 34,502$
Deposits 500 – – 253,161 47,837 – 301,498
Due to other funds – – – 7,355 – – 7,355
Total liabilities 8,524 – 2,685 260,516 50,289 21,341 343,355
Fund balances
Restricted for cemetery
maintenance – 82,183 – – – – 82,183
Restricted for
DWI enforcement – – 144,856 – – – 144,856
Restricted for redevelopment – – – 187,327 – – 187,327
Restricted for Brookview – – – – 209,449 – 209,449
Restricted for lodging tax – – – – – 8,975 8,975
Committed for human
service needs 213,524 – – – – – 213,524
Total fund balances 213,524 82,183 144,856 187,327 209,449 8,975 846,314
Total liabilities and
fund balances 222,048$ 82,183$ 147,541$ 447,843$ 259,738$ 30,316$ 1,189,669$
CITY OF GOLDEN VALLEY
Nonmajor Special Revenue Funds
Combining Balance Sheet
December 31, 2017
-83-
Human DWI HRA Lodging
Service Cemetery Enforcement General Brookview Tax Totals
Revenue
Intergovernmental revenue –$ –$ 23,043$ –$ –$ –$ 23,043$
Charges for services – – – – 22,229 – 22,229
Investment income 2,019 770 1,036 – 2,602 53 6,480
Other revenue
Lawful gambling proceeds 37,560 – – – – – 37,560
Miscellaneous 37,381 3,000 75,900 – – 8,922 125,203
Total revenue 76,960 3,770 99,979 – 24,831 8,975 214,515
Expenditures
Current
General government
Operating supplies 12,565 – – – – – 12,565
Professional services 59,717 – – 12,246 – – 71,963
Public safety
Salaries – – 977 – – – 977
Operating supplies – – 43,141 – – – 43,141
Parks and recreation
Salaries – – – – 71,020 – 71,020
Operating supplies – – – – 30,452 – 30,452
Capital outlay – – 6,809 – – – 6,809
Total expenditures 72,282 – 50,927 12,246 101,472 – 236,927
Net change in
fund balances 4,678 3,770 49,052 (12,246) (76,641) 8,975 (22,412)
Fund balances
Beginning of year 208,846 78,413 95,804 199,573 286,090 – 868,726
End of year 213,524$ 82,183$ 144,856$ 187,327$ 209,449$ 8,975$ 846,314$
CITY OF GOLDEN VALLEY
Nonmajor Special Revenue Funds
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances
Year Ended December 31, 2017
-84-
Certificates Tax Brookview Douglas Drive
of Abatement Lease Revenue Reconstruction Hwy 55 West
Indebtedness Bonds Bonds Bonds Bonds Totals
Assets
Cash and temporary investments 599,470$ 1,064,156$ 1,227,462$ 630,456$ 237,029$ 3,758,573$
Receivables
Special assessments – – – – 314,681 314,681
Due from other funds – – – – 66,398 66,398
Total assets 599,470$ 1,064,156$ 1,227,462$ 630,456$ 618,108$ 4,139,652$
Deferred inflows of resources
Unavailable revenue –
special assessments – – – – 314,681 314,681
Fund balances
Restricted for debt service 599,470 1,064,156 1,227,462 630,456 303,427 3,824,971
Total deferred inflows of
resources and fund balances 599,470$ 1,064,156$ 1,227,462$ 630,456$ 618,108$ 4,139,652$
CITY OF GOLDEN VALLEY
Nonmajor Debt Service Funds
Combining Balance Sheet
December 31, 2017
-85-
Certificates Tax Brookview Douglas Drive
of Abatement Lease Revenue Reconstruction Hwy 55 West
Indebtedness Bonds Bonds Bonds Bonds Totals
Revenue
Ad valorem taxes 849,398$ –$ 1,218,300$ –$ –$ 2,067,698$
Special assessments – – – – 237,277 237,277
Franchise taxes – – – 390,000 – 390,000
Investment income 643 10,431 5,060 4,718 202 21,054
Other revenue
Miscellaneous – 53,192 – – – 53,192
Total revenue 850,041 63,623 1,223,360 394,718 237,479 2,769,221
Expenditures
Debt service
Principal 765,000 345,000 – – – 1,110,000
Interest and fiscal charges 36,157 10,761 454,410 160,943 16,664 678,935
Total expenditures 801,157 355,761 454,410 160,943 16,664 1,788,935
Excess (deficiency) of
revenue over expenditures 48,884 (292,138) 768,950 233,775 220,815 980,286
Other financing sources
Bonds issued – – – – 8,931 8,931
Premium on bonds issued – – – – 73,681 73,681
Total other financing sources – – – – 82,612 82,612
Net change in fund balances 48,884 (292,138) 768,950 233,775 303,427 1,062,898
Fund balances
Beginning of year 550,586 1,356,294 458,512 396,681 – 2,762,073
End of year 599,470$ 1,064,156$ 1,227,462$ 630,456$ 303,427$ 3,824,971$
CITY OF GOLDEN VALLEY
Nonmajor Debt Service Funds
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances
Year Ended December 31, 2017
-86-
Street
Reconstruction Cable Park Capital
Building Capital Project Improvement Improvement
Assets
Cash and temporary investments 1,080,277$ 3,070,708$ 243,990$ 926,513$
Receivables
Special assessments – – – –
Accounts – 5,612 – –
Due from other governmental units – – – –
Total assets 1,080,277$ 3,076,320$ 243,990$ 926,513$
Liabilities
Accounts payable 417$ 59,188$ –$ 51,490$
Contracts payable 1,152 127,865 – –
Due to other governmental units – – – –
Deposits – 30,125 – –
Due to other funds – – – –
Total liabilities 1,569 217,178 – 51,490
Deferred inflows of resources
Unavailable revenue – special assessments – – – –
Fund balances
Restricted for redevelopment – – – –
Restricted for street improvements – 2,160,154 – –
Assigned for cable improvements – – 243,990 –
Assigned for park improvements – – – 875,023
Assigned for equipment replacement – – – –
Assigned for street improvements – 698,988 – –
Assigned for capital improvements 1,078,708 – – –
Total fund balances 1,078,708 2,859,142 243,990 875,023
Total liabilities, deferred inflows of
resources, and fund balances 1,080,277$ 3,076,320$ 243,990$ 926,513$
CITY OF GOLDEN VALLEY
Nonmajor Capital Project Funds
Combining Balance Sheet
December 31, 2017
-87-
North Wirth
Equipment State Aid HRA Capital No. 3 Hwy 55 West
Replacement Construction Project Tax Increment Tax Increment Totals
5,185,445$ 3,115,967$ 103,856$ 17,516$ 1,627,726$ 15,371,998$
– 18,606 – – – 18,606
– 4,203 – – – 9,815
– 62,034 – 1,629 – 63,663
5,185,445$ 3,200,810$ 103,856$ 19,145$ 1,627,726$ 15,464,082$
71,180$ 34,421$ –$ –$ –$ 216,696$
– – – – – 129,017
– 152 – – – 152
– – – 8,686 545 39,356
– – – 586 70,396 70,982
71,180 34,573 – 9,272 70,941 456,203
– 18,606 – – – 18,606
– – 103,856 9,873 1,556,785 1,670,514
– 2,845,857 – – – 5,006,011
– – – – – 243,990
– – – – – 875,023
5,114,265 – – – – 5,114,265
– 301,774 – – – 1,000,762
– – – – – 1,078,708
5,114,265 3,147,631 103,856 9,873 1,556,785 14,989,273
5,185,445$ 3,200,810$ 103,856$ 19,145$ 1,627,726$ 15,464,082$
-88-
Street
Reconstruction Cable Park Capital
Building Capital Project Improvement Improvement
Revenue
Tax increments –$ –$ –$ –$
Special assessments – 43,223 – –
Intergovernmental revenue – – – 425,000
Investment income 9,784 30,077 2,397 9,226
Other revenue
Miscellaneous – 126,640 37,254 80,517
Total revenue 9,784 199,940 39,651 514,743
Expenditures
Capital outlay
Street – 3,047,266 – –
City buildings and grounds 146,324 – – 968,297
Equipment – – – –
HRA projects – – – –
Total capital outlay 146,324 3,047,266 – 968,297
Debt service
Principal – – – –
Interest and fiscal charges – 56,131 – –
Total expenditures 146,324 3,103,397 – 968,297
Excess (deficiency) of revenue
over expenditures (136,540) (2,903,457) 39,651 (453,554)
Other financing sources (uses)
Sale of capital assets – – – –
Bonds issued – 2,580,000 – –
Premium on bonds issued – 123,067 – –
Transfers in 300,000 300,000 – 250,000
Transfers (out)– – – –
Total other financing sources (uses)300,000 3,003,067 – 250,000
Net change in fund balances 163,460 99,610 39,651 (203,554)
Fund balances (deficits)
Beginning of year 915,248 2,759,532 204,339 1,078,577
End of year 1,078,708$ 2,859,142$ 243,990$ 875,023$
CITY OF GOLDEN VALLEY
Nonmajor Capital Project Funds
Combining Statement of Revenue, Expenditures, and Changes in Fund Balances
Year Ended December 31, 2017
-89-
North Wirth
Equipment State Aid HRA Capital No. 3 Hwy 55 West
Replacement Construction Project Tax Increment Tax Increment Totals
–$ –$ –$ 20,920$ –$ 20,920$
– 8,997 – – – 52,220
– 527,927 – – – 952,927
31,156 28,531 – – 6,243 117,414
11,396 – – – – 255,807
42,552 565,455 – 20,920 6,243 1,399,288
– 344,073 – – – 3,391,339
– – – – – 1,114,621
1,230,961 – – – – 1,230,961
– – – 20,396 1,078 21,474
1,230,961 344,073 – 20,396 1,078 5,758,395
– 120,000 – – – 120,000
8,476 65,731 – – – 130,338
1,239,437 529,804 – 20,396 1,078 6,008,733
(1,196,885) 35,651 – 524 5,165 (4,609,445)
143,274 – – – – 143,274
815,000 – – – 1,926,069 5,321,069
37,665 – – – – 160,732
1,881,420 373,379 – – – 3,104,799
– – – – (373,379)(373,379)
2,877,359 373,379 – – 1,552,690 8,356,495
1,680,474 409,030 – 524 1,557,855 3,747,050
3,433,791 2,738,601 103,856 9,349 (1,070)11,242,223
5,114,265$ 3,147,631$ 103,856$ 9,873$ 1,556,785$ 14,989,273$
-90-
THIS PAGE INTENTIONALLY LEFT BLANK
2016
Final Over (Under)
Budget Actual Budget Actual
Revenue
Taxes
Ad valorem 14,814,685$ 14,822,062$ 7,377$ 14,092,737$
Penalties and interest – 31,559 31,559 84,204
Total taxes 14,814,685 14,853,621 38,936 14,176,941
Special assessments 10,000 14,506 4,506 10,496
Licenses and permits
Licenses 217,365 249,439 32,074 255,165
Permits 1,128,790 2,892,471 1,763,681 1,604,043
Total licenses and permits 1,346,155 3,141,910 1,795,755 1,859,208
Intergovernmental revenue
Federal grants – 19,785 19,785 18,359
State grants 268,380 350,477 82,097 286,559
Total intergovernmental revenue 268,380 370,262 101,882 304,918
Charges for services
General government 19,000 50,794 31,794 36,042
Police 114,175 105,499 (8,676) 127,127
Fire 40,000 46,546 6,546 49,384
Physical development 150,800 151,526 726 189,543
Parks and recreation 385,350 384,840 (510) 370,709
Other funds 791,500 766,528 (24,972) 728,480
Total charges for services 1,500,825 1,505,733 4,908 1,501,285
Fines and forfeitures 300,000 400,233 100,233 283,483
Investment income 75,000 102,007 27,007 56,518
Other revenue
Rents 213,200 187,545 (25,655) 187,195
Miscellaneous 9,800 20,606 10,806 17,059
Total other revenue 223,000 208,151 (14,849) 204,254
Total revenue 18,538,045$ 20,596,423$ 2,058,378$ 18,397,103$
2017
CITY OF GOLDEN VALLEY
General Fund
Schedule of Revenue – Budget and Actual
Year Ended December 31, 2017
(With Comparative Actual Amounts for the Year Ended December 31, 2016)
-91-
Final Personal Supplies and
Budget Services Services Capital Outlay
Expenditures
General government
City Council 362,710$ 190,889$ 116,018$ –$
City manager 816,815 671,073 55,890 –
Legal service 215,000 206,807 – –
Total general government 1,394,525 1,068,769 171,908 –
Administrative services 1,874,665 933,571 926,971 –
Casualty insurance 305,000 – 225,617 –
Public safety
Police 5,885,265 4,725,904 790,302 28,495
Fire 1,494,620 997,797 288,328 62,765
Total public safety 7,379,885 5,723,701 1,078,630 91,260
Physical development
Administration 304,310 283,155 10,404 –
Building operations 583,635 12,805 520,361 –
Engineering 803,380 383,121 350,151 –
Street maintenance 1,609,730 784,975 623,198 –
Park maintenance 1,170,340 817,218 336,011 –
Inspections 791,310 581,993 132,050 –
Planning 362,450 306,022 11,152 –
Total physical development 5,625,155 3,169,289 1,983,327 –
Parks and recreation
Administration 719,970 646,145 92,416 –
Community center – – – –
Recreation programs 418,845 164,740 187,906 –
Total parks and recreation 1,138,815 810,885 280,322 –
Total expenditures 17,718,045$ 11,706,215$ 4,666,775$ 91,260$
2017
Actual
CITY OF GOLDEN VALLEY
General Fund
Schedule of Expenditures – Budget and Actual
Year Ended December 31, 2017
(With Comparative Actual Amounts for the Year Ended December 31, 2016)
-92-
2016
Over (Under)
Total Budget Actual
306,907$ (55,803)$ 322,400$
726,963 (89,852) 762,151
206,807 (8,193) 138,215
1,240,677 (153,848) 1,222,766
1,860,542 (14,123) 1,812,545
225,617 (79,383) 154,842
5,544,701 (340,564) 5,256,970
1,348,890 (145,730) 1,246,085
6,893,591 (486,294) 6,503,055
293,559 (10,751) 290,377
533,166 (50,469) 526,229
733,272 (70,108) 688,519
1,408,173 (201,557) 1,499,793
1,153,229 (17,111) 1,122,114
714,043 (77,267) 735,455
317,174 (45,276) 326,394
5,152,616 (472,539) 5,188,881
738,561 18,591 675,467
– – 80,176
352,646 (66,199) 322,389
1,091,207 (47,608) 1,078,032
16,464,250$ (1,253,795)$ 15,960,121$
2017
Actual
-93-
THIS PAGE INTENTIONALLY LEFT BLANK
-94-
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 142,667$ 2,160,103$ 60,450$ 2,363,220$
Receivables
Accounts – 6,745 – 6,745
Inventory – – 82,586 82,586
Total current assets 142,667 2,166,848 143,036 2,452,551
Noncurrent assets
Net pension asset – fire relief – 1,616,937 – 1,616,937
Capital assets
Machinery and equipment – – 224,745 224,745
Less accumulated depreciation – – (109,841) (109,841)
Total noncurrent assets – 1,616,937 114,904 1,731,841
Total assets 142,667 3,783,785 257,940 4,184,392
Deferred outflows of resources
Pension plan deferments – PERA – 7,915,804 – 7,915,804
Pension plan deferments – fire relief – 459,229 – 459,229
Total deferred outflows of resources – 8,375,033 – 8,375,033
Total assets and deferred outflows
of resources 142,667$ 12,158,818$ 257,940$ 12,559,425$
Liabilities
Current liabilities
Accounts payable –$ 7,276$ 36,631$ 43,907$
Accrued compensated absences – current – 1,198,894 – 1,198,894
Due to other governmental units – – 57 57
Deposits – 8,272 – 8,272
Total current liabilities – 1,214,442 36,688 1,251,130
Noncurrent liabilities
Accrued compensated absences – 386,728 – 386,728
Net pension liability – PERA – 11,373,895 – 11,373,895
Net OPEB obligation – 978,346 – 978,346
Total noncurrent liabilities – 12,738,969 – 12,738,969
Total liabilities – 13,953,411 36,688 13,990,099
Deferred inflows of resources
Pension plan deferments – PERA – 8,630,455 – 8,630,455
Pension plan deferments – fire relief – 196,553 – 196,553
Total deferred inflows of resources – 8,827,008 – 8,827,008
Net position
Net investment in capital assets – – 114,904 114,904
Restricted for fire relief pensions – 1,879,613 – 1,879,613
Unrestricted 142,667 (12,501,214) 106,348 (12,252,199)
Total net position 142,667 (10,621,601) 221,252 (10,257,682)
Total liabilities, deferred inflows
of resources, and net position 142,667$ 12,158,818$ 257,940$ 12,559,425$
CITY OF GOLDEN VALLEY
Internal Service Funds
Combining Statement of Net Position
December 31, 2017
-95-
Workers’Payroll Vehicle
Compensation Benefits Maintenance Totals
Operating revenue
Charges to other funds 250,000$ 5,895,584$ 443,273$ 6,588,857$
Payroll benefits charged to employees – 1,280,721 – 1,280,721
Total operating revenue 250,000 7,176,305 443,273 7,869,578
Operating expenses
Workers’ compensation charges 362,091 – – 362,091
Payroll benefits charges – 8,408,601 – 8,408,601
Vehicle maintenance operations – – 430,237 430,237
Depreciation – – 14,154 14,154
Total operating expenses 362,091 8,408,601 444,391 9,215,083
Operating income (loss)(112,091) (1,232,296) (1,118) (1,345,505)
Nonoperating revenue
Intergovernmental revenue – 459,734 – 459,734
Investment income 1,015 17,197 1,118 19,330
Total nonoperating revenue 1,015 476,931 1,118 479,064
Change in net position (111,076) (755,365) – (866,441)
Net position
Beginning of year 253,743 (9,866,236) 221,252 (9,391,241)
End of year 142,667$ (10,621,601)$ 221,252$ (10,257,682)$
CITY OF GOLDEN VALLEY
Internal Service Funds
Combining Statement of Revenue, Expenses, and Changes in Net Position
Year Ended December 31, 2017
-96-
Workers’Payroll Vehicle
Compensation Benefits Maintenance Totals
Cash flows from operating activities
Receipts from customers and users –$ 1,280,721$ –$ 1,280,721$
Receipts from interfund services provided 250,000 5,896,895 443,273 6,590,168
Paid to suppliers/service providers (362,091) (5,000,792) (127,451) (5,490,334)
Paid to employees – (2,285,379) (267,571) (2,552,950)
Net cash flows from operating activities (112,091) (108,555) 48,251 (172,395)
Cash flows from capital and related financing activities
Acquisition of capital assets – – (89,901) (89,901)
Cash flows from investing activities
Interest received on investments 1,015 17,197 1,118 19,330
Cash flows from noncapital financing activities
Intergovernmental revenue – 459,734 – 459,734
Net increase (decrease) in cash and temporary
investments/cash equivalents (111,076) 368,376 (40,532) 216,768
Cash and temporary investments/cash equivalents
Beginning of year 253,743 1,791,727 100,982 2,146,452
End of year 142,667$ 2,160,103$ 60,450$ 2,363,220$
Reconciliation of operating income (loss) to net
cash flows from operating activities
Operating income (loss)(112,091)$ (1,232,296)$ (1,118)$ (1,345,505)$
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities
Depreciation – – 14,154 14,154
Changes in assets, liabilities,
and deferred outflows/inflows
Accounts receivable – 1,311 – 1,311
Inventory – – 20,824 20,824
Net pension asset – fire relief – 84,779 – 84,779
Deferred outflows – pension plan deferments – 4,951,150 – 4,951,150
Accounts payable – 6,666 14,334 21,000
Due to other governmental units – – 57 57
Deposits – (2,499) – (2,499)
Accrued compensated absences – 9,837 – 9,837
Net pension liability – PERA – (10,132,241) – (10,132,241)
Net OPEB obligation – 119,012 – 119,012
Deferred inflows – pension plan deferments – 6,085,726 – 6,085,726
Net cash from operating activities (112,091)$ (108,555)$ 48,251$ (172,395)$
CITY OF GOLDEN VALLEY
Internal Service Funds
Combining Statement of Cash Flows
Year Ended December 31, 2017
-97-
OTHER CITY INFORMATION
Accounted for Current Amount
Budget in Prior Years Year Remaining
Sources of funds
Tax increments received 920,000$ 284,503$ 20,920$ 614,577$
Real estate sales 575,000 523,431 – 51,569
Interest earnings – 3,910 – (3,910)
Total sources of funds 1,495,000 811,844 20,920 662,236
Uses of funds
Land and building acquisition – 160,830 19,810 (180,640)
Site preparation and improvements 1,000,000 621,135 586 378,279
Administrative costs – 16,058 – (16,058)
Interest and fiscal costs 495,000 4,472 – 490,528
Total uses of funds 1,495,000 802,495 20,396 672,109
Funds remaining (deficit)–$ 9,349$ 524$ (9,873)$
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 $567,685 original purchase price that was paid by the
North Wirth Parkway No. 1501 Tax Increment Financing District prior to the establishment of this district.
CITY OF GOLDEN VALLEY
Schedule of Sources and Uses of Public Funds
for North Wirth Parkway No. 1505, a Tax Increment Financing District
Year Ended December 31, 2017
Real estate sales
-98-
Accounted for Current Amount
Budget in Prior Years Year Remaining
Sources of funds
Bond proceeds –$ –$ 2,008,681$ (2,008,681)$
Tax increments received 8,814,808 – – 8,814,808
Special assesments – – 237,277 (237,277)
Interest earnings – 5 6,445 (6,450)
Total sources of funds 8,814,808 5 243,722 6,562,400
Uses of funds
Site acquisition and improvements 4,545,891 1,075 373,379 4,171,437
Administrative costs 881,480 – 1,078 880,402
Interest and fiscal costs 3,387,437 – 16,664 3,370,773
Total uses of funds 8,814,808 1,075 391,121 8,422,612
Funds remaining (deficit)–$ (1,070)$ (147,399)$ (1,860,212)$
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, 2017
-99-
Accounted for Current Amount
Budget in Prior Years Year Remaining
Sources of funds
Tax increments received 1,535,716$ –$ –$ 1,535,716$
Uses of funds
Site acquisition and improvements 687,975 – – 687,975
Administrative costs 171,571 – – 171,571
Interest and fiscal costs 676,170 – – 676,170
Total uses of funds 1,535,716 – – 1,535,716
Funds remaining (deficit)–$ –$ –$ –$
CITY OF GOLDEN VALLEY
Schedule of Sources and Uses of Public Funds
for Cornerstone Creek No. 1507, a Tax Increment Financing District
Year Ended December 31, 2017
-100-
Accounted for Current Amount
Budget in Prior Years Year Remaining
Sources of funds
Tax increments received 19,052,584$ –$ –$ 19,052,584$
Uses of funds
Site improvements – utilities 7,913,693 1,000,000 536 6,913,157
Administrative costs 1,945,145 – – 1,945,145
Interest and fiscal costs 9,193,746 22,083 44,028 9,127,635
Total uses of funds 19,052,584 1,022,083 44,564 17,985,937
Funds remaining (deficit)–$ (1,022,083)$ (44,564)$ 1,066,647$
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, 2017
-101-
THIS PAGE INTENTIONALLY LEFT BLANK
STATISTICAL SECTION
(UNAUDITED)
Page
Contents:
Financial Trends 103
Revenue Capacity 115
Debt Capacity 120
Demographic and Economic Information 128
Operating Indicators 130
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.
-102-
2008 2009 2010 2011
Governmental activities
Net investment in capital assets 23,613,301$ 24,388,008$ 21,635,548$ 22,753,481$
Restricted 30,192,456 28,061,624 22,187,677 23,045,045
Unrestricted (7,377,599) (3,510,363) 5,812,640 5,903,464
Total governmental activities net position 46,428,158$ 48,939,269$ 49,635,865$ 51,701,990$
Business-type activities
Net investment in capital assets 22,427,619$ 23,564,184$ 24,838,885$ 27,268,683$
Unrestricted 15,962,676 16,572,658 17,231,676 16,430,056
Total business-type activities net position 38,390,295$ 40,136,842$ 42,070,561$ 43,698,739$
Primary government
Net investment in capital assets 46,040,920$ 47,952,192$ 46,474,433$ 50,022,164$
Restricted 30,192,456 28,061,624 22,187,677 23,045,045
Unrestricted 8,585,077 13,062,295 23,044,316 22,333,520
Total primary government net position 84,818,453$ 89,076,111$ 91,706,426$ 95,400,729$
Note 1:
Note 2:
CITY OF GOLDEN VALLEY
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year
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.
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.
-103-
2012 2013 2014 2015 2016 2017
22,622,764$ 21,829,745$ 21,499,939$ 24,816,606$ 23,527,470$ 24,239,358$
26,673,032 29,535,846 29,553,484 17,942,353 18,567,757 21,342,170
7,499,559 9,306,292 14,349,901 15,401,264 12,900,989 14,755,485
56,795,355$ 60,671,883$ 65,403,324$ 58,160,223$ 54,996,216$ 60,337,013$
27,416,740$ 28,427,621$ 29,588,257$ 30,101,294$ 31,809,835$ 35,854,260$
17,508,592 18,562,323 16,164,578 14,010,619 17,561,589 16,068,264
44,925,332$ 46,989,944$ 45,752,835$ 44,111,913$ 49,371,424$ 51,922,524$
50,039,504$ 50,257,366$ 51,088,196$ 54,917,900$ 55,337,305$ 60,093,618$
26,673,032 29,535,846 29,553,484 17,942,353 18,567,757 21,342,170
25,008,151 27,868,615 30,514,479 29,411,883 30,462,578 30,823,749
101,720,687$ 107,661,827$ 111,156,159$ 102,272,136$ 104,367,640$ 112,259,537$
-104-
2008 2009 2010 2011
Expenses
Governmental activities
General government 3,265,940$ 3,271,352$ 3,801,269$ 3,319,661$
Public safety 6,091,866 6,298,431 6,585,990 6,490,371
Physical development 8,282,504 8,322,099 9,864,540 9,720,753
Parks and recreation 1,331,180 1,476,771 1,338,155 1,335,562
Interest and fiscal charges 3,329,662 3,544,117 3,272,726 2,930,757
Total governmental activities expenses 22,301,152 22,912,770 24,862,680 23,797,104
Business-type activities
Water and sewer 6,038,783 6,952,047 6,561,335 8,474,883
Storm sewer 1,313,173 1,299,813 1,239,080 1,176,603
Golf course 1,819,557 1,770,491 1,736,551 1,708,984
Motor vehicle licensing 420,911 409,032 423,423 260,583
Recycling 139,970 349,100 290,818 218,145
Total business-type activities expenses 9,732,394 10,780,483 10,251,207 11,839,198
Total primary government expenses 32,033,546$ 33,693,253$ 35,113,887$ 35,636,302$
Program revenues
Governmental activities
Charges for services
General government 255,249$ 264,357$ 273,318$ 277,901$
Public safety 1,827,820 1,194,484 1,311,914 1,609,601
Physical development 335,906 352,630 337,146 360,307
Parks and recreation 348,536 340,072 379,356 438,349
Operating grants and contributions 285,576 294,902 410,767 413,826
Capital grants and contributions 3,288,594 1,097,097 1,831,662 2,498,297
Total governmental activities program
revenues 6,341,681 3,543,542 4,544,163 5,598,281
Business-type activities
Charges for services
Water and sewer 7,428,721 7,638,314 7,391,493 8,636,333
Storm sewer 2,245,005 2,265,937 2,279,840 2,279,633
Golf course 1,766,714 1,719,611 1,676,136 1,580,954
Motor vehicle licensing 598,635 534,559 531,074 138,936
Recycling 221,261 220,829 220,809 266,858
Operating grants and contributions 76,039 139,432 177,601 463,650
Capital grants and contributions 846,164 56,081 – 191,686
Total business-type activities program
revenues 13,182,539 12,574,763 12,276,953 13,558,050
Total primary government program revenues 19,524,220$ 16,118,305$ 16,821,116$ 19,156,331$
CITY OF GOLDEN VALLEY
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year
-105-
2012 2013 2014 2015 2016 2017
3,121,543$ 2,914,823$ 3,066,025$ 11,327,689$ 4,182,777$ 3,260,989$
6,906,449 7,310,946 6,831,136 6,907,661 8,213,351 8,128,614
9,758,495 10,325,068 11,396,748 13,448,443 11,274,790 11,539,091
1,692,346 1,588,798 1,545,616 1,486,218 1,736,619 2,205,615
2,724,495 2,633,359 2,456,490 2,066,076 2,172,554 2,321,780
24,203,328 24,772,994 25,296,015 35,236,087 27,580,091 27,456,089
8,023,803 7,611,927 9,867,531 9,867,731 8,327,113 8,395,036
1,383,594 1,589,410 1,944,935 1,795,260 1,685,494 2,526,607
1,724,174 1,645,728 1,693,028 1,848,745 2,172,621 2,348,327
154,492 326,382 326,201 349,019 401,363 405,407
299,809 410,808 393,280 392,239 407,664 389,472
11,585,872 11,584,255 14,224,975 14,252,994 12,994,255 14,064,849
35,789,200$ 36,357,249$ 39,520,990$ 49,489,081$ 40,574,346$ 41,520,938$
263,035$ 279,725$ 276,782$ 263,205$ 223,237$ 238,339$
1,628,076 1,861,481 1,837,076 1,985,746 2,155,832 3,460,736
400,773 407,938 342,809 415,395 400,351 565,550
614,164 594,142 534,821 594,130 489,959 443,632
464,187 559,246 538,956 600,264 643,970 1,444,260
3,595,000 1,882,698 2,028,250 6,377,610 1,578,699 2,689,043
6,965,235 5,585,230 5,558,694 10,236,350 5,492,048 8,841,560
8,217,582 7,831,307 7,751,250 8,266,107 8,814,629 9,574,647
2,256,336 2,274,549 2,278,128 2,281,125 2,241,536 2,328,336
1,765,186 1,502,897 1,543,151 2,071,141 2,106,472 2,059,405
92,626 304,424 347,382 395,718 457,275 453,215
276,190 276,099 323,184 331,630 378,934 389,894
128,893 495,451 701,605 209,831 167,557 966,871
32,162 852,075 – – 1,561,135 1,227,470
12,768,975 13,536,802 12,944,700 13,555,552 15,727,538 16,999,838
19,734,210$ 19,122,032$ 18,503,394$ 23,791,902$ 21,219,586$ 25,841,398$
(continued)
-106-
2008 2009 2010 2011
Net (expense) revenue
Governmental activities (15,959,471)$ (19,369,228)$ (20,318,517)$ (18,198,823)$
Business-type activities 3,450,145 1,794,280 2,025,746 1,718,852
Total primary government net expense (12,509,326)$ (17,574,948)$ (18,292,771)$ (16,479,971)$
General revenues and other changes in net position
Governmental activities
Property taxes 19,464,163$ 20,727,498$ 20,143,891$ 19,752,048$
Franchise taxes – – – 581,600
Unrestricted grants and contributions 27,385 13,693 27,386 27,386
Other general revenues 498,523 263,702 350,183 336,139
Investment earnings 1,328,642 552,835 250,723 300,813
Gain on sale of capital assets 54,025 55,611 44,330 156,161
Transfers 175,000 267,000 198,600 198,600
Total governmental activities 21,547,738 21,880,339 21,015,113 21,352,747
Business-type activities
Franchise taxes – – – –
Other general revenues – – 5,330 558
Investment earnings 541,141 219,267 101,243 142,204
Transfers (175,000) (267,000) (198,600) (198,600)
Total business-type activities 366,141 (47,733) (92,027) (55,838)
Total primary government 21,913,879$ 21,832,606$ 20,923,086$ 21,296,909$
Changes in net position
Governmental activities 5,588,267$ 2,511,111$ 696,596$ 3,153,924$
Business-type activities 3,816,286 1,746,547 1,933,719 1,663,014
Total primary government 9,404,553$ 4,257,658$ 2,630,315$ 4,816,938$
Note:
Changes in Net Position (continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
The City implemented GASB Statement No.65 in 2012.Change in net position for 2011 was restated for the effect of
implementing this standard. Change in net position for previous years has not been restated.
CITY OF GOLDEN VALLEY
Fiscal Year
-107-
2012 2013 2014 2015 2016 2017
(17,238,093)$ (19,187,764)$ (19,737,321)$ (24,999,737)$ (22,088,043)$ (18,614,529)$
1,183,103 1,952,547 (1,280,275) (697,442) 2,733,283 2,934,989
(16,054,990)$ (17,235,217)$ (21,017,596)$ (25,697,179)$ (19,354,760)$ (15,679,540)$
20,946,972$ 21,757,173$ 22,616,003$ 21,934,817$ 19,473,750$ 21,419,195$
621,585 904,928 1,048,227 1,028,368 402,017 687,773
– – – – – –
353,033 338,245 286,108 372,590 347,543 291,837
214,493 112,817 347,197 221,237 313,888 522,746
76,852 24,735 71,227 18,337 56,838 3,775
118,523 (73,606) 100,000 100,000 (1,670,000) 1,030,000
22,331,458 23,064,292 24,468,762 23,675,349 18,924,036 23,955,326
– – – – 700,000 400,000
65,978 – – – – –
96,035 38,459 142,866 122,591 156,228 246,111
(118,523) 73,606 (100,000) (100,000) 1,670,000 (1,030,000)
43,490 112,065 42,866 22,591 2,526,228 (383,889)
22,374,948$ 23,176,357$ 24,511,628$ 23,697,940$ 21,450,264$ 23,571,437$
5,093,365$ 3,876,528$ 4,731,441$ (1,324,388)$ (3,164,007)$ 5,340,797$
1,226,593 2,064,612 (1,237,409) (674,851) 5,259,511 2,551,100
6,319,958$ 5,941,140$ 3,494,032$ (1,999,239)$ 2,095,504$ 7,891,897$
-108-
THIS PAGE INTENTIONALLY LEFT BLANK
Ad Valorem
Property Taxes Tax Increments Franchise Tax Total
14,877,502$ 4,586,661$ –$ 19,464,163$
15,337,158 5,390,340 – 20,727,498
15,901,115 4,242,776 – 20,143,891
15,807,735 3,944,313 581,600 20,333,648
16,219,048 4,627,924 621,585 21,468,557
16,922,610 4,834,563 904,928 22,662,101
17,431,741 5,184,262 1,048,227 23,664,230
21,911,378 23,439 1,028,368 22,963,185
19,449,023 24,727 402,017 19,875,767
21,398,275 20,920 687,773 22,106,968
Fiscal Year
2008
2015
2009
2010
2011
2012
2013
2014
2016
2017
CITY OF GOLDEN VALLEY
Governmental Activities Tax Revenues by Source
Last Ten Fiscal Years
(Accrual Basis of Accounting)
-109-
2008 2009 2010 2011
General Fund
Reserved –$ –$ 90,000$ –$
Unreserved 8,894,990 8,985,030 8,913,423 –
Nonspendable – – – 45,000
Assigned – – – 1,778,352
Unassigned – – – 7,395,646
Total General Fund 8,894,990$ 8,985,030$ 9,003,423$ 9,218,998$
All other governmental funds
Reserved 1,795,677$ 13,598,736$ 9,673,542$ –$
Unreserved, reported in
Special revenue funds 145,519 159,243 183,065 –
Capital project funds 14,304,072 14,296,961 14,216,671 –
Debt service funds 13,106,172 14,391,151 12,624,401 –
Nonspendable – – – –
Restricted – – – 29,472,220
Committed – – – 928,337
Assigned – – – 7,345,999
Unassigned, reported in
Capital project funds – – – –
Total all other governmental funds 29,351,440$ 42,446,091$ 36,697,679$ 37,746,556$
Note:
CITY OF GOLDEN VALLEY
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
The City implemented GASB Statement No.54 in 2011,which changed fund balance classifications.Fund
balances for previous years have not been restated.
Fiscal Year
-110-
2012 2013 2014 2015 2016 2017
–$ –$ –$ –$ –$ –$
– – – – – –
– – 1,256 7,617 18,822 3,610
1,560,000 1,500,000 1,500,000 2,000,000 2,000,000 2,000,000
7,756,057 8,207,985 8,640,108 8,719,447 8,954,274 10,400,239
9,316,057$ 9,707,985$ 10,141,364$ 10,727,064$ 10,973,096$ 12,403,849$
–$ –$ –$ –$ –$ –$
– – – – – –
– – – – – –
– – – – – –
– – – 285 – –
33,693,776 43,287,123 47,308,126 33,222,298 44,457,090 32,513,969
687,458 718,723 743,633 202,270 208,846 213,524
8,106,763 7,032,562 7,224,030 11,357,732 11,702,718 13,355,185
– – – (41,288) (1,023,153) (1,066,647)
42,487,997$ 51,038,408$ 55,275,789$ 44,741,297$ 55,345,501$ 45,016,031$
-111-
2008 2009 2010 2011
Revenues
Taxes 14,842,187$ 15,316,495$ 15,760,353$ 15,791,136$
Tax increments 4,663,365 5,322,240 4,344,739 3,993,985
Special assessments 1,693,632 1,781,804 1,415,935 1,389,200
Franchise taxes – – – 581,600
Licenses and permits 1,432,351 839,306 872,669 1,161,906
Intergovernmental 417,463 741,496 643,328 951,285
Charges for services 1,769,064 1,808,325 1,722,697 1,631,110
Fines and forfeits 223,317 210,181 284,600 303,908
Investment income 1,195,453 510,028 236,086 281,770
Other revenue 681,185 555,088 678,249 637,606
Total revenues 26,918,017 27,084,963 25,958,656 26,723,506
Expenditures
General government 1,322,117 1,377,347 1,774,439 1,379,620
Administrative services 1,374,942 1,423,084 1,460,063 1,460,704
Casualty insurance 214,600 223,209 277,016 255,536
Public safety 5,722,290 5,824,971 5,879,957 6,010,214
Physical development 3,853,075 3,854,331 3,732,546 3,901,808
Parks and recreation 1,066,232 1,039,353 1,033,593 1,068,002
Capital outlay – not capitalized 822,165 420,753 1,432,608 1,049,696
Construction/acquisition of capital assets 7,519,949 8,336,626 4,646,495 3,659,158
Debt service
Principal retirement 6,930,000 7,085,000 7,620,000 6,235,000
Interest and fiscal charges 3,363,075 3,520,776 3,517,239 3,110,626
Total expenditures 32,188,445 33,105,450 31,373,956 28,130,364
Excess of revenues
over (under) expenditures (5,270,428) (6,020,487) (5,415,300) (1,406,858)
Other financing sources (uses)
Sale of capital assets 72,915 90,075 82,420 236,593
Bonds issued 7,430,000 8,055,000 4,530,000 2,495,000
Refunding bonds issued – 10,345,000 – 4,870,000
Premiums (discounts) on debt issues 80,530 448,103 109,261 291,117
Payments to refunded bond escrow agent – – (4,935,000) (5,420,000)
Transfers in 6,177,000 6,290,970 4,650,385 3,402,570
Transfers (out)(6,002,000) (6,023,970) (4,751,785) (3,203,970)
Total other financing sources (uses)7,758,445 19,205,178 (314,719) 2,671,310
Net change in fund balances 2,488,017$ 13,184,691$ (5,730,019)$ 1,264,452$
Debt service as a percentage of noncapital
expenditures 41.7%42.8%41.7%38.2%
Fiscal Year
CITY OF GOLDEN VALLEY
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
-112-
2012 2013 2014 2015 2016 2017
16,378,425$ 16,847,769$ 17,334,800$ 21,874,958$ 19,539,516$ 21,388,915$
4,627,924 4,834,563 5,184,262 23,439 24,727 20,920
1,273,820 1,223,120 1,217,205 1,060,839 806,891 1,106,697
621,585 904,928 1,048,227 1,028,368 402,017 687,773
1,223,848 1,496,453 1,479,304 1,626,113 1,859,208 3,141,910
3,452,180 984,620 1,410,427 4,717,848 1,554,964 2,181,104
1,876,117 1,889,478 1,718,592 1,607,143 1,544,898 1,577,194
351,413 366,059 310,318 354,066 283,483 400,233
201,966 107,763 328,554 209,866 302,230 503,416
617,366 650,750 716,133 879,395 727,904 679,913
30,624,644 29,305,503 30,747,822 33,382,035 27,045,838 31,688,075
1,297,470 1,268,041 1,310,190 9,340,987 1,299,871 1,325,205
1,513,689 1,558,386 1,682,784 1,712,183 1,812,545 1,860,542
237,152 222,559 240,918 169,213 154,842 225,617
6,462,507 6,594,376 6,156,396 6,116,997 6,563,064 6,937,709
4,083,857 4,142,979 5,051,206 4,790,646 5,188,881 5,152,616
1,183,579 1,183,263 1,028,809 1,092,198 1,078,032 1,192,679
1,003,343 1,575,739 1,779,425 3,943,954 1,262,482 1,501,845
5,533,344 4,623,106 5,043,790 8,312,307 10,192,081 22,281,092
5,185,000 6,295,000 8,720,000 9,320,000 4,960,000 4,905,000
2,944,445 2,833,093 2,695,660 2,405,710 2,305,673 2,460,593
29,444,386 30,296,542 33,709,178 47,204,195 34,817,471 47,842,898
1,180,258 (991,039) (2,961,356) (13,822,160) (7,771,633) (16,154,823)
83,669 80,875 222,432 53,442 80,627 143,274
2,300,000 2,485,000 3,085,000 2,670,000 25,130,000 5,330,000
5,960,000 9,100,000 3,950,000 6,600,000 – 4,100,000
166,050 452,503 274,684 164,926 1,026,242 537,832
(4,970,000) (2,085,000) – (5,715,000) (6,945,000) (3,885,000)
4,448,233 6,448,710 6,545,710 5,742,041 2,551,950 4,144,838
(4,329,710) (6,548,710) (6,445,710) (5,642,041) (3,221,950) (3,114,838)
3,658,242 9,933,378 7,632,116 3,873,368 18,621,869 7,256,106
4,838,500$ 8,942,339$ 4,670,760$ (9,948,792)$ 10,850,236$ (8,898,717)$
34.0%35.6%39.8%30.1%29.5%28.8%
-113-
THIS PAGE INTENTIONALLY LEFT BLANK
Ad Valorem
Property Tax Tax Increments Franchise Tax Total
14,842,187$ 4,663,365$ –$ 19,505,552$
15,316,495 5,322,240 – 20,638,735
15,760,353 4,344,739 – 20,105,092
15,791,136 3,993,985 581,600 20,366,721
16,378,425 4,627,924 621,585 21,627,934
16,847,769 4,834,563 904,928 22,587,260
17,334,800 5,184,262 1,048,227 23,567,289
21,874,958 23,439 1,028,368 22,926,765
19,539,516 24,727 402,017 19,966,260
21,388,915 20,920 687,773 22,097,608
Fiscal Year
2008
2015
2009
2010
2011
2012
2013
2014
2016
2017
CITY OF GOLDEN VALLEY
General Governmental Tax Revenues by Source
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
-114-
Net Decrease
From Fiscal Decrease From
Real Property Personal Property Disparities Tax Increments
43,508,495$ 302,601$ (5,766,544)$ (4,303,310)$
44,352,919 294,419 (6,586,685) (4,739,865)
42,049,838 284,789 (6,796,278) (3,536,203)
38,371,218 311,502 (6,220,733) (3,227,508)
36,478,494 320,766 (5,875,187) (3,242,617)
35,693,380 416,456 (5,460,857) (3,275,801)
35,543,286 413,722 (5,888,222) (3,352,209)
37,743,877 423,575 (5,994,022) (20,214)
40,233,072 433,290 (5,880,892) (21,325)
42,748,968 472,938 (6,636,623) (21,692)
(1)
Source:Hennepin County
2017
CITY OF GOLDEN VALLEY
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
2009
2014
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
2008
2016
2012
2011
2010
-115-
Total City Tax
Applied Capacity Estimated Actual
Tax Capacity Rate Applied Taxable Value
33,741,242$ 42.99 3,400,157,300$ 0.99 %
33,320,788 45.91 3,425,714,700 0.97
32,002,146 48.20 3,274,263,500 0.98
29,234,479 53.06 3,004,908,600 0.97
27,681,456 55.80 2,829,369,027 0.98
27,373,178 58.21 2,744,389,240 1.00
26,716,577 61.84 2,719,232,050 0.98
32,153,216 54.63 2,934,477,667 1.10
34,764,145 54.45 3,097,563,064 1.12
36,563,591 56.11 3,271,878,353 1.12
Value as a
AssessedTax Capacities (1)
Actual Value
Percentage of
-116-
Total Direct
and
Hennepin Special Overlapping
General Levy Debt Levy City Total County ISD No. 281 Districts Rates
33.13 9.86 42.99 38.57 27.24 8.05 116.85
34.85 11.06 45.91 40.41 27.21 7.69 121.22
36.94 11.26 48.20 42.64 28.62 8.83 128.29
40.65 12.41 53.06 45.84 34.39 9.87 143.16
41.82 13.98 55.80 48.23 32.81 10.14 146.98
43.00 15.21 58.21 49.46 32.35 10.93 150.95
45.51 16.33 61.84 49.96 34.78 11.30 157.88
40.46 14.17 54.63 46.40 33.22 10.56 144.81
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
Total Direct
and
Hennepin Special Overlapping
General Levy Debt Levy City Total County ISD No. 270 Districts Rates
33.13 9.86 42.99 38.57 19.22 8.05 108.83
34.85 11.06 45.91 40.41 20.08 7.69 114.09
36.94 11.26 48.20 42.64 23.05 8.83 122.72
40.65 12.41 53.06 45.84 26.46 9.87 135.23
41.82 13.98 55.80 48.23 29.27 10.14 143.44
43.00 15.21 58.21 49.46 29.73 10.93 148.33
45.51 16.33 61.84 49.96 32.36 11.30 155.46
40.46 14.17 54.63 46.40 30.34 10.56 141.93
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
(1)
(2)
Source:Hennepin County
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).
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
2008
2012
2013
2014
2015
2009
Direct Rates
Year
2008
For the City/ISD No. 270
2011
Overlapping Rates
2011
2016
2010
2017
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
-117-
Net Tax Net Tax
Capacity Rank Capacity Rank
Golden Jack, LLC 1,902,152$ 1 5.2 %609,670$ 4 1.8 %
Allianz Life Insurance Company 1,847,330 2 5.1 1,547,130 2 4.6
General Mills, Inc.1,834,320 3 5.0 2,507,520 1 7.4
DRA Advisors, LLC 1,474,910 4 4.0 – – –
UnitedHealthcare 402,130 5 1.1 560,010 5 1.7
Menards, Inc.379,250 6 1.0 – – –
TCA Real Estate, LLC 336,890 7 0.9 – – –
Honeywell Incorporated 314,750 8 0.9 – – –
The Luther Company, LLP 279,890 9 0.8 398,330 7 1.2
Trach Properties, Inc.262,370 10 0.7 – – –
Teacher’s Insurance and Annuity – – – 1,013,750 3 3.0
Hines RIET – – – 441,850 6 1.3
Lupient Enterprises – – – 389,680 8 1.2
Valley Creek Development, LLC – – – 361,330 9 1.1
G.H. Tennant Company – – – 293,660 10 0.9
Total 9,033,992$ 24.7 %8,122,930$ 24.1 %
Source:Hennepin County
Current Year and Nine Years Ago
Principal Property Taxpayers
CITY OF GOLDEN VALLEY
Percentage of
2017 2008
Percentage of
Applied Tax
CapacityTaxpayerCapacity
Applied Tax
-118-
THIS PAGE INTENTIONALLY LEFT BLANK
Total Tax Collections in
Levy for Subsequent
Fiscal Year (2)Amount (3)Years (4)Amount
15,192,449$ 15,039,110$ 99.0 %153,339$ 15,192,449$ 100.0 %
15,980,242 15,801,948 98.9 178,294 15,980,242 100.0
16,306,687 16,084,726 98.6 221,961 16,306,687 100.0
16,379,567 16,190,773 98.9 188,794 16,379,567 100.0
16,395,177 16,274,052 99.3 121,125 16,395,177 100.0
16,932,407 16,777,814 99.1 145,593 16,923,407 100.0
17,403,839 17,242,324 99.1 138,735 17,381,059 99.9
18,546,364 18,391,561 99.2 117,977 18,509,538 99.8
19,603,886 19,511,104 99.5 68,501 19,579,605 99.9
21,314,250 21,246,826 99.7 – 21,246,826 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.
2017
Total Collections to Date
Property Tax Levies and Collections (1)
2016
2014
Last Ten Fiscal Years
2008
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
-119-
Special Street Certificates Tax Tax Lease
Assessment Reconstruction of Abatement Increment State Aid Revenue
Bonds Bonds Indebtedness Bonds Bonds Street Bonds Bonds
47,610,000$ –$ 2,195,000$ 3,725,000$ 21,410,000$ 2,475,000$ –$
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
(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
Fiscal Year
2010
2008
-120-
Net Net
Premiums Utility Premiums Total Primary
(Discounts)Total Revenue Bonds (Discounts)Total Government Per Capita (1)
175,490$ 77,590,490$ 4,020,000$ –$ 4,020,000$ 81,610,490$ 7.12 %4,015$
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 6.13 4,134
Business-Type
ActivitiesGovernmental Activities
Percentage
Income (1)
of Personal
-121-
Less Amounts
General Restricted for
Obligation Repaying
Bonds (1)Principal (2)Total Per Capita (4)
77,590,490$ 13,106,172$ 64,308,828$ 1.89 %3,158$
89,292,329 25,069,221 63,660,779 1.86 3,132
81,295,508 18,126,689 63,168,819 1.93 3,101
77,200,719 16,425,889 60,774,830 2.02 2,975
75,339,122 18,481,388 56,857,734 2.01 2,754
78,841,249 28,063,240 50,778,009 1.85 2,455
77,261,767 32,650,606 44,611,161 1.64 2,146
71,475,577 28,040,782 43,434,795 1.48 2,014
85,543,531 21,578,026 63,965,505 2.07 2,967
86,492,017 23,277,113 63,214,904 1.93 2,933
(1)
(2)
(3)
(4)
Note:
2009
2012
of Property (3)
2014
Fiscal Year
2010
2008
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
CITY OF GOLDEN VALLEY
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Taxable Value
Estimated Actual
Percentage of
-122-
Estimated
Debt Share of
Outstanding (1)Overlapping Debt
Direct debt
City of Golden Valley 86,492,017$ 100.00 %86,492,017$
Overlapping debt
ISD No. 270, Hopkins 140,286,562 18.85 26,444,017
ISD No. 281, Robbinsdale 194,613,893 19.15 37,268,561
ISD No. 283, St. Louis Park 33,819,742 0.03 10,146
Hennepin County 911,083,511 2.30 20,954,921
Hennepin Suburban Park District 45,784,829 3.21 1,469,693
Hennepin Regional RR Authority 26,942,546 3.21 864,856
Metropolitan Council 12,606,580 1.17 147,497
Total overlapping debt 1,365,137,663$ 87,159,691
Total direct and overlapping debt 173,651,708$
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, 2017
Estimated
-123-
Fiscal Year
2008 2009 2010 2011
Debt limit 102,004,719$ 102,771,441$ 98,227,905$ 90,147,258$
Total net debt applicable to limit 1,964,316 1,987,568 1,918,389 1,793,550
Legal debt margin 100,040,403$ 100,783,873$ 96,309,516$ 88,353,708$
Total net debt applicable to limit
as a percentage of debt limit 1.93% 1.93% 1.95% 1.99%
Note:
CITY OF GOLDEN VALLEY
Legal Debt Margin Information
Last Ten Fiscal Years
Under state finance law,the City’s outstanding general obligation debt should not exceed 3 percent 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.
-124-
2012 2013 2014 2015 2016 2017
84,881,071$ 82,331,677$ 81,576,962$ 88,034,330$ 92,926,892$ 98,156,351$
1,784,770 2,927,363 2,833,906 1,712,141 7,032,733 6,800,074
83,096,301$ 79,404,314$ 78,743,056$ 86,322,189$ 85,894,159$ 91,356,277$
2.10% 3.56% 3.47% 1.94% 7.57% 6.93%
Market value 3,271,878,353$
Debt limit (3% of market value)98,156,351
Total bonded debt 86,720,000$
Less
Debt not payable primarily from tax levies
Special assessment bonds 55,340,000
Tax abatement bonds 670,000
Tax increment bonds 1,170,000
State aid street bonds 1,520,000
Lease revenue bonds 17,410,000
Utility revenue bonds 2,580,000
Fund balances available for tax supported debt 1,229,926
Total net debt applicable to limit 6,800,074
Legal debt margin 91,356,277$
Legal Debt Margin Calculation for Fiscal Year 2017
-125-
Less Operating Net Available
Gross Revenue Expenses Revenue Principal Interest
3,299,370$ 1,122,250$ 2,177,120$ 265,000$ 175,562$
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
(1)
(2)
(3)
(4)
Note:
2009
2008
CITY OF GOLDEN VALLEY
Pledged Revenue Coverage
Last Ten Fiscal Years
Fiscal Year
Debt Service
2017
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 $775,000 of utility revenue
bonds before their stated maturity dates.
2016
2015
2014
2013
2012
2011
2010
-126-
Special
Assessment
Coverage Collections Principal (4)Interest Coverage
4.94 1,594,627$ 3,070,000$ 1,846,084$ 0.32
2.82 1,733,879 3,135,000 2,008,648 0.34
2.87 1,364,381 2,830,000 2,343,345 0.26
3.95 1,334,959 2,855,000 2,051,651 0.27
2.57 1,142,945 2,855,000 1,975,259 0.24
2.35 1,223,120 2,880,000 1,955,697 0.25
0.38 1,124,414 3,195,000 2,047,723 0.21
4.12 980,375 3,215,000 1,999,619 0.19
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
Special Assessment Bonds
Debt Service
-127-
Per Capita
Personal Personal School
Population (1)Income (2)Income (3)Enrollment (4)
20,326 1,145,973,360$ 56,280$ 2,163 5.9 %
20,312 1,148,927,968 56,564 2,147 6.7
20,371 1,100,196,968 54,008 2,111 6.1
20,427 1,122,443,223 54,949 2,137 5.2
20,642 1,186,419,592 57,476 2,078 4.8
20,683 1,218,187,334 58,898 2,088 4.1
20,790 1,259,894,790 60,601 2,074 3.2
21,571 1,378,408,471 63,901 2,115 3.2
21,556 1,406,119,436 65,231 1,994 3.6
21,556 1,453,456,412 67,427 2,074 2.9
Sources:
(1)Metropolitan Council – Regional Statistics and Data except for 2017 – City estimate.
(2)
(3)
(4)
(5)
2009
2008
2013
Bureau of Economic Analysis,U.S.Department of Commerce –Hennepin County.The per capita personal income
used is for that of Hennepin County,in which the City resides,the smallest region applicable to the City that this
information is available for.
2010
Minnesota Department of Economic Security – Hennepin County.
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
CITY OF GOLDEN VALLEY
Rate (5)
UnemploymentFiscal
Demographic and Economic Statistics
Last Ten Fiscal Years
Year
-128-
Employees Rank Employees Rank
General Mills, Inc.3,000 1 8.6 %5,400 1 16.0 %
Allianz Life Insurance Company 1,859 2 5.3 2,500 2 7.4
OptumHealth 1,700 3 4.9 – – –
Honeywell Incorporated 1,033 4 3.0 2,500 2 7.4
G.H. Tennant Company 900 5 2.6 745 5 2.2
M.A. Mortenson 730 6 2.1 600 6 1.8
Courage Center 585 7 1.7 400 7 1.2
Lubrication Technologies 450 8 1.3 – – –
Breck School 426 9 1.2 – – –
Preferred One 335 10 1.0 – – –
UnitedHealthcare – – – 1,100 4 3.3
Liberty Carton – – – 335 8 1.0
McKesson Corporation – – – 300 9 0.9
Syngenta Seeds, Incorporated – – – 300 9 0.9
Total 11,018 31.7 %14,180 42.1 %
Source:Metropolitan Council – Regional Statistics and Data
Employer Employment
CITY OF GOLDEN VALLEY
Employment
of Total City
Percentage
2008
Percentage
Current Year and Nine Years Ago
2017
of Total City
Principal Employers
-129-
2008 2009 2010 2011
Function
General government 18.10 18.10 18.10 17.60
Public safety 52.25 51.25 52.25 50.75
Physical development 31.91 31.91 30.91 29.91
Parks and recreation 5.80 5.80 5.80 5.50
Water and sewer 10.59 10.59 10.59 10.59
Storm sewer 1.00 1.00 1.00 1.00
Golf course 7.00 7.00 7.00 7.00
Motor vehicle licensing 5.75 5.00 5.00 5.00
Total 132.40 130.65 130.65 127.35
Source: Various city departments
Fiscal Year
CITY OF GOLDEN VALLEY
Full-Time Equivalent City Government Employees by Function
Last Ten Fiscal Years
-130-
2012 2013 2014 2015 2016 2017
17.10 23.10 23.10 23.50 23.50 23.50
50.75 44.75 47.25 47.25 47.25 47.50
30.66 31.66 30.66 29.66 29.66 29.66
5.50 5.50 5.50 5.50 5.50 7.50
11.34 12.34 12.34 12.34 12.34 12.34
– – 1.00 1.00 1.00 1.00
7.00 7.00 7.00 7.00 7.00 8.50
4.00 4.00 4.00 4.00 4.00 4.00
126.35 128.35 130.85 130.25 130.25 134.00
-131-
2008 2009 2010 2011
Function
1,025 1,025 1,338 1,177
106 106 80 107
Citations written 2,847 2,847 3,184 5,036
Fire
693 693 715 726
4.2 4.2 2.7 1.1
Water
New (removed) connections 11 11 (7)1
Water main breaks 18 18 17 27
Average daily consumption
(thousands of gallons)2,759 2,759 2,433 2,561
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
Fiscal Year
-132-
2012 2013 2014 2015 2016 2017
1,399 1,103 905 1,025 1,027 817
70 61 38 33 20 29
3,828 3,524 3,488 3,138 2,659 4,761
648 797 631 711 747 649
1.2 1.0 1.2 1.2 0.5 1.2
(5)2 8 (1)9 46
26 10 30 28 15 11
2,765 2,518 2,213 2,156 2,106 2,171
-133-
2008 2009 2010 2011
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 1,830
Parks and recreation
Parks acreage 462 462 462 462
Parks and nature areas 30 30 30 30
Tennis court locations 9 9 9 9
Community centers 2 2 2 2
Water
Connections 7,139 7,150 7,143 7,144
Sewer
Connections 7,164 7,172 7,175 7,174
Source:Various city departments
CITY OF GOLDEN VALLEY
Capital Asset Statistics by Function
Last Ten Fiscal Years
Fiscal Year
-134-
2012 2013 2014 2015 2016 2017
1 1 1 1 1 1
8 8 8 8 8 8
3 3 3 3 3 3
144 144 144 144 144 144
1,838 1,840 1,840 1,840 1,836 1,813
462 462 462 462 462 462
30 30 30 30 30 30
9 9 9 9 9 9
2 2 2 2 2 2
7,139 7,141 7,149 7,148 7,157 7,203
7,169 7,179 7,188 7,234 7,205 7,249
-135-
THIS PAGE INTENTIONALLY LEFT BLANK