2022 Annual Comprehensive Financial Report

CITY OF EDEN PRAIRIE, MINNESOTA

Annual Comprehensive

Financial Report

For the Fiscal Year Ended December 31, 2022

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ANNUAL COMPREHENSIVE FINANCIAL REPORT of the CITY OF EDEN PRAIRIE MINNESOTA

For The Fiscal Year Ended December 31, 2022 Rick Getschow, City Manager Prepared by THE FINANCE DIVISION

Tammy Wilson, Chief Financial Officer

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City of Eden Prairie, Minnesota For the Year Ended December 31, 2022 Table of Contents

Introductory Section

Page

Letter of Transmittal................................................................................................................................................... 8 GFOA Certificate of Achievement.........................................................................................................................15 Organizational Chart.................................................................................................................................................16 List of Principal Officials..........................................................................................................................................17

Financial Section

Independent Auditors’ Report..............................................................................................................................20 Management’s Discussion and Analysis............................................................................................................24 Basic Financial Statements Government-wide Financial Statements Statement of Net Position ............................................................................................................................38 Statement of Activities ..................................................................................................................................40 Fund Financial Statements Balance Sheet-Governmental Funds........................................................................................................44 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ..........................................................................................................47 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ..............................................................................................48 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities.................................50 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund......................................................................51 Statement of Net Position – Proprietary Funds...................................................................................54 Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds.........55 Statement of Cash Flows – Proprietary Funds.....................................................................................56 Statement of Fiduciary Net Position .......................................................................................................58 Statement of Changes in Fiduciary Net Position .................................................................................59 Notes to Financial Statements .........................................................................................................................62 Required Supplemental Information Modified Approach for Infrastructure Assets....................................................................................... 106 Schedule of Changes in the City’s Total OBEB Liability and Related Ratios ............................. 107 Schedule of Proportionate Share of Net Pension Liability Public Employees General Employees Retirement Fund................................................................. 108 Public Employees Police and Fire Fund .................................................................................................. 109 Eden Prairie Fire Relief.................................................................................................................................. 110 Schedule of Contributions Public Employees General Employees Retirement Fund................................................................. 111 Public Employees Police and Fire Fund .................................................................................................. 112 Eden Prairie Fire Relief.................................................................................................................................. 113 4

City of Eden Prairie, Minnesota For the Year Ended December 31, 2022

Notes to Required Supplemental Information Notes to Schedule of Changes in Net Pension Liabilities and Related Ratios........................... 114 Combining Fund Statements Combining Balance Sheet – Nonmajor Governmental Funds......................................................... 129 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds ........................................................................... 134 Combining Statement of Net Position – Internal Service Funds.................................................... 140 Combining Statement of Revenues, Expenses and Changes in Net Position – Internal Service Funds.................................................................................................. 142 Combining Statement of Cash Flows – Internal Service Funds...................................................... 144 Combining Statement of Fiduciary Net Position ................................................................................ 150 Combining Statement of Changes in Fiduciary Net Position .......................................................... 151

Statistical Section

Government-wide Net Position by Category......................................................................................... 155 Changes in Net Position - Total................................................................................................................... 156 Changes in Net Position – Governmental Activities ........................................................................... 157 Changes in Net Position – Business-type Activities............................................................................ 158 Fund Balances – Governmental Funds .................................................................................................... 159 Changes in Fund Balances – Governmental Funds ............................................................................. 160 Assessed/Tax Capacity Value and Estimated Market Value of Property ................................... 161 Direct and Overlapping Property Tax Rates.......................................................................................... 162 Principal Property Taxpayers ..................................................................................................................... 163 Property Tax Levies and Collections........................................................................................................ 164 Legal Debt Margin............................................................................................................................................ 165 Ratios of Outstanding Debt by Type......................................................................................................... 166 Ratios of General Bonded Debt Outstanding......................................................................................... 167 Computation of Direct and Overlapping Bonded Debt ..................................................................... 168 Demographic and Economic Statistics .................................................................................................... 169 Principal Employers........................................................................................................................................ 170 Employees by Function ................................................................................................................................. 171 Operating Indicators....................................................................................................................................... 172 Capital Assets Statistics by Function........................................................................................................ 173

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INTRODUCTORY SECTION

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April 19, 2023 To the Honorable Mayor, Members of the City Council and the Citizens of the City of Eden Prairie:

The annual comprehensive financial report of the City of Eden Prairie, Minnesota, for the year ended December 31, 2022, is hereby submitted. The report was prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) as established by the Governmental Accounting Standards Board and meets the requirements of the State Auditor’s Office.

The report consists of management’s representations concerning the finances of the City.

Consequently, management assumes full responsibility for the completeness and reliability of all information presented within this report. To provide a reasonable basis for making these representations, management of the City has established internal controls designed to protect the City’s assets from loss, theft or misuse and to provide sufficient information for the preparation of these financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh the benefits, the City’s internal controls have been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatements. As management, we assert that to the best of our knowledge and belief this financial report is complete and reliable in all material respects.

The City’s financial statements have been audited by BerganKDV, Ltd, Certified Public Accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the year ended December 31, 2022, 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 used by management; and evaluating the overall financial statement presentation. Based upon the audit, the independent auditor concluded that there was reasonable basis for rendering an unmodified opinion that the City’s financial statements, for the year ended December 31, 2022, are fairly presented in conformity with GAAP. The independent auditors’ report is present in the financial section of this report.

GAAP requires 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 in the financial section of this report immediately following the report of the independent auditors.

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City Profile

Eden Prairie is a suburban community of 64,198 people located in the southwest corner of Hennepin County in a setting of rolling hills and picturesque lakes and creeks. Eden Prairie has a convenient location, a comprehensive system of highways, and is a short distance from downtown Minneapolis and St. Paul and the Minneapolis-St. Paul International Airport.

Incorporated in 1974 as a city, the City of Eden Prairie operates under a Statutory Plan B form of government. Policymaking and legislative authorities are vested in the governing council, which consists of a mayor and a four-member council. The governing council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees and hiring the government's manager and attorney. The council is elected on a nonpartisan basis. The mayor and council members are elected to four-year staggered terms. The City Manager is responsible for carrying out the policies and ordinances of the governing council, for overseeing the day-to-day operations of the government, and to assign appropriate responsibility and authority to City staff for the efficient and effective delivery of City services.

With a staff of around 285 regular, full-time equivalent employees, the City provides its residents and businesses with a full range of municipal services consisting of police and fire protection, street maintenance, recreation programs, park maintenance, community and economic development, building inspections, and a water, wastewater and storm water services.

The City is also financially accountable for the Housing and Redevelopment Authority (HRA), which is included in the City’s financial statements as a blended component unit.

Additional information on the HRA is located in Note 1 in the notes to the financial statements.

The biennial budget serves as the foundation for the City’s financial planning and control.

Departments submit budget requests to Finance in May and the City Manager presents the proposed budget to the City Council for review prior to September 30th of each year. A budget workshop is usually held with the City Council in June or July. The City Council holds a public meeting on the proposed budget and adopts the final budget in December each year.

During the first year of the two-year budget process, both years’ budgets are developed and the City Council adopts the first year’s budget. During the second year of the two-year budget process, budget work is minimized. Staff updates the budget for any significant budget developments and the council then reviews and adopts the second year budget.

The budget is prepared by department and division. The City’s directors and division managers may make transfers of appropriations within a division. Transfers of appropriations between departments require the approval of the City Manager. Any changes in the total budget must be approved by the City Council.

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Economic Conditions and Outlook

Eden Prairie is a suburban community located in the southwest corner of the Minneapolis/St. Paul Metropolitan area. With the last update of the comprehensive plan and the trend towards condensed multi-family housing along the LRT corridor and other multi-family projects in other locations within the City, it is expected that Eden Prairie’s population will grow to 82,400 by 2040 an increase 28% from 2022.

The Coronavirus Disease (COVID-19) took a toll on the City once again in 2022. Financially, we felt the impact of revenue reductions but we also received federal funding to cover the revenue loss. The City was able to end the year with positive financial performance.

Below summarizes the City’s market value since 2014.

Market Value $14,000,000,000 $12,000,000,000 ~ $10,000,000,000

::,

~

$8,000,000,000

.

$6,000,000,000

.... ~

~

::? $4,000,000,000 $2,000,000,000 $0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

The City’s tax base increased from $11.4 billion to $11.8 billion from 2021 to 2022. In 2023, the market value increased to $13.4 billion. The real estate market has seen significant increases nationwide. Eden Prairie’s unemployment rate is 1.7%, which is less than the State rate of 2.7% and the Federal rate of 3.6%.

We had another strong year in licenses and permits and Inspections issued permits with a value of $217,069,997. The largest project was The Ellie Apartments with a value of $47,801,749. The City also had 7 new commercial/industrial buildings versus 4 in 2021.

The valuations of these new buildings ranged from $750,000 to $5,500,000.

Eden Prairie serves as the corporate headquarters location for many national and international businesses including CH Robinson World Wide, Tennant Company, Optum, numerous multi-tenant office building partnerships, Lifetouch/ShutterFly Inc., United Natural Foods Inc. (UNFI), American Family Mutual Insurance, Starkey Labs, MTS systems Corporation, and others.

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Eden Prairie also has key locations for retailing including the City’s mall which has approximately 1.5 million square feet of shopping. The mall is part of the City’s “Major Center Area” or downtown. Stores include a 160,000 square foot Von Maur Department Store, Scheels, a Barnes and Noble Bookstore, an 18-screen AMC Movie Theater, and numerous restaurants.

Due to its strong and healthy local economy, Moody’s Investors Service has assigned a rating of Aaa to the City of Eden Prairie’s (MN) bond for every debt issue since 2003, the highest rating from Moody’s. Standard & Poor’s has also assigned a rating of AAA to the City of Eden Prairie’s bonds outstanding, their highest rating as well. This ensures the City receives the most competitive interest rates. The City’s bond ratings reflect Eden Prairie’s large, growing tax base, very healthy operating reserves, low direct debt burden, and strong financial management.

Long-term Financial Planning

The City has implemented various financial policies to guide the Council and staff when making financial decisions. This helps to ensure the long-term stability and flexibility of City finances and operations. These policies include the following: • • • • • •

The original budget should be balanced with revenues equal to expenditures, One-time revenues will be used for one-time expenditures, The City will maintain fund balance for working capital in the general fund at 50% of the next year’s budgeted tax revenue, The City will also maintain 10% of the next year’s budget in fund balance for budget stabilization and 5% of the next year’s budget for budget balancing in the general fund, The City will confine long-term debt to capital improvements or projects that cannot be financed from current revenues, and The City will maintain a ten-year capital improvement plan to provide for capital asset acquisition, maintenance, replacement, and retirement.

The City has consistently followed our financial policies.

Major Initiatives

The Ellie Housing TIF District

On 7/21/2022 The Ellie was certified to the County as a TIF Housing District. The Ellie Apartments are located east of Eden Prairie Road and south of State Highway 5. The project is the redevelopment of seven single family homes to a 4 story 239 mixed-income apartment building with underground parking. 20% of the units (48 of the 239 total units) will be affordable to residents earning at or below 50% of the Area Median Income (AMI). An additional 12 units will be affordable to residents earning at or below 80% of the AMI. The 11

remaining 179 units will be market rate. A building permit was issued in 2022 for the construction of these apartments.

Blue Stem/GTS Housing TIF District

On 7/21/22 The Blue Stem/GTS development was certified to the County as a Tif Housing District. Blue Stem/GTS was created for the construction of a 425-unit mixed income apartment development located at 6901 Flying Cloud Drive. The property is located at the corner of W. 70th Street and Flying cloud Drive just west of the Golden Triangle LRT Station.

The project will be developed in two phases. The first phase is a 4 and 5 story, 237-unit building in which 20% of the units (49 units) will be affordable to residents earning at or below 50% of the Area Median Income (AMI). An additional 12 units will be inclusionary housing units as required by City Code and will be affordable to residents earning at or below 80% of AMI. The remaining 176 units will be market rate. The second phase is a 6story, 188-unit building in which 20% of the units (38 units) will be affordable to residents earning at or below 50% of AMI, and an additional 9 units will be inclusionary housing units affordable to residents earning at or below 80% of AMI. The remaining 141 units will be market rate. The proposal also includes pedestrian connections to the LRT station through existing and new trails and sidewalks.

Eden Prairie Cemetery

On November 13, 2021, members of the Eden Prairie Cemetery Board met and unanimously passed a resolution authorizing the transfer of the land and operation of the cemetery to the City of Eden Prairie, with transfer of the property taking place in 2022. The Eden Prairie Cemetery, located at 8810 Eden Prairie Road was originally surveyed in May of 1864 by Wm. A Fuller and filed with R.R. Bryant, Register of Deeds, on February 9, 1865, and was known as Eden Prairie Cemetery.

Affordable Housing Trust Fund (AHTF)

In April 2022, the City established an Affordable Housing Trust Fund to support the production and preservation of affordable housing and create new housing opportunities for new or current residents. AHTFs are intended to be a consistent, flexible resource for housing within a local jurisdiction and enable communities to prioritize developments that maximize benefit to the local community.

Water Meter Change Out

Eden Prairie’s water meters at residential and commercial locations were last installed in the late 1990s/early 2000s, and the batteries powering the transmitters are becoming too weak to reliably broadcast billing information to our remote data collection system.

HydroCorp Inc. was contracted for the removal and reinstallation of New Cellular AMI Water Meters, for conducting water safety surveys at each location, and for conducting meter inventories and cross-connection surveys at all non-residential water customer locations. The upgraded meters include monitoring capabilities through a smart phone app

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or computer to help customers conserve water by tracking water usage on customizable dashboard and also has the capability to send alters for possible water leaks. The project started in 2021 and is anticipated to take 3 years to change over all the meters within the City. Approximately 65% of the meters have been changed out. In 2021 the City issued $5.8M in bonds to pay for the project.

Certificate of Achievement

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Eden Prairie for its Annual Comprehensive Financial Report for the fiscal year ended December 31, 2021.

The Certificate of Achievement is a prestigious national award-recognizing conformance with the highest standards for preparation of state and local government financial reports.

In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report whose contents conform to program standards. Such comprehensive annual financial report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year. The City of Eden Prairie has received a Certificate of Achievement every year since 1990. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA. In addition, the Government Finance Officers Association of the United States and Canada (GFOA) presented the Distinguished Budget Presentation award to the City of Eden Prairie for its Two Year Budget for the fiscal years beginning January 1, 2022 and 2023. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan and a communications device. The award is valid for a period of two years only. The City of Eden Prairie has received a Distinguished Budget Presentation award for every budget since 1998.

Also, the Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to the City of Eden Prairie for its Popular Annual Financial Report for the fiscal year ended December 31, 2021. The Award for Outstanding Achievement in Popular Annual Financial Reporting is a national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creativity, presentation, understandability, and reader appeal. An Award for Outstanding Achievement in Popular Annual Financial Reporting is valid for a period of one year only. The City of Eden Prairie has received the award annually since 1998. We believe our current report continues to conform to the Popular Annual Financial Reporting requirements, and we are submitting it to GFOA. 13

Acknowledgements

We would like to thank the Mayor and Council Members for their continued support in planning and conducting the financial operations of the City in a responsible and progressive manner. We would also like to express our appreciation to the employees of the Finance Division for their contribution to the preparation of this report.

Respectfully submitted,

Rick Getschow City Manager

Tammy Wilson Chief Financial Officer

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• Government Finance Officers Association

Certificate of Achievement for Excellence in Financial Reporting Presented to

City of Eden Prairie Minnesota For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2021

Executive Director/CEO

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City of Eden Prairie, Minnesota For the Year Ended December 31, 2022

City Council

City Manager

Community Development

Administration

Administrative Services

Police

Fire

Parks & Recreation

Assessing

Engineering

Investigations

Building Inspections

Community Center

City Clerk

Economic Development

Fleet Services

Patrol

Fire Prevention

Parks & Natural Resources

Facilities

Housing & Community Services

Streets Maintenance

Support

Fire Suppresion

Recreation Services

Human Resources & Support Services

Planning

Utilities

Communications

Finance & Liquor Operations

Public Works

Information Technology

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City of Eden Prairie, Minnesota For the Year Ended December 31, 2022 Principal Officials Elected Officials: Mayor Council Member Council Member Council Member Council Member

Appointed Officials:

(Term expiration 12/31/26) (Term expiration 12/31/26) (Term Expiration 12/31/24) (Term expiration 12/31/26) (Term expiration 12/31/24)

Ron Case Mark Freiberg PG Narayanan Kathy Nelson Lisa Toomey

City Manager City Attorney

Rick Getschow Maggie Neuville

Chief of Police Community Development Director Fire Chief Parks and Recreation Director Public Works Director

Matt Sackett Julie Klima Scott Gerber Jay Lotthammer Robert Ellis

Departments:

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FINANCIAL SECTION

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berganK□v Independent Auditor's Report Honorable Mayor and Members of the City Council City of Eden Prairie Eden Prairie, Minnesota Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Eden Prairie, Minnesota, as of and for the year ended December 31, 2022, and the related notes to the basic financial statements, which collectively comprise City's basic financial statements as listed in the Table of Contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Eden Prairie, Minnesota, as of December 31, 2022, 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.

Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Eden Prairie and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter – Implementation of GASB 87 The City has adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. Our opinion is not modified with respect to this matter.

Report on Summarized Comparative Information We have previously audited the City's 2021 financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information, and we expressed unmodified opinions on those financial statements in our report dated April 20, 2022. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2021, is consistent, in all material respects, with the audited financial statements from which it has been derived.

BERGANKDV, LTD.

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Responsibilities of Management for the Financial Statements The City of Eden Prairie's management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Eden Prairie's ability to continue as a going concern for one year beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:  



 

Exercise professional judgment and maintain professional skepticism throughout the audit.

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed.

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

BERGANKDV , LTD.

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Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, which follows this report letter, and Required Supplementary information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the (GASB), who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the Required Supplementary Information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Eden Prairie's basic financial statements. The accompanying supplementary information identified in the Table of Contents is presented for purposes of additional analysis and are not a required part of the basic financial statements.

Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the accompanying supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information Management is responsible for the other information included in the Annual Comprehensive Financial Report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

BERGANKDV, LTD.

I BERGANKDV.COM I DO MORE.

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Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April 19, 2023, on our consideration of the City of Eden Prairie's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Eden Prairie's internal control over financial reporting and compliance.

Minneapolis, Minnesota April 19, 2023

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City of Eden Prairie, Minnesota Management’s Discussion and Analysis

As management of the City of Eden Prairie, this section of the City’s comprehensive annual financial report presents a discussion and analysis of the City’s financial activities during the fiscal year ended December 31, 2022. This discussion and analysis should be read in conjunction with the transmittal letter in the introductory section of this report.

Financial Highlights The City as a Whole •

•

•

The assets and deferred outflow of resources of the City exceeded liabilities and deferred inflows of resources by $432,580,747. Of this amount, $98,179,677 (unrestricted net position) may be used to meet the City’s ongoing obligations to citizens and creditors, $318,110,915 is invested in capital assets, and $16,290,155 is restricted.

The City’s total net position increased by $4,846,037 or 1.1%. The key factors in this increase were positive General Fund results and increased Parks and Recreation program revenue. The City was able to transfer positive General Fund results to the Capital Improvement and Maintenance Fund as one-time revenue to support the Capital Improvement Plan.

The City’s total long-term liabilities increased by $20,662,904 or 30.2% in comparison with the prior year. Contributing to the overall increase was an increase in the net pension liability.

Offsetting the increase was a decrease in bonds payable as $13.1M of refunding bonds were paid off in 2022. GASB Statement No. 87 was implemented in 2022 with the recognition of long-term leases and their related principal payments. These leases are for copy machines and the City’s municipal liquor stores.

Using This Annual Report

This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities provide information about the activities of the City as a whole and present a longer-term view of the City’s finances. For governmental activities, the fund financial statements tell how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the City’s operations in more detail than the government-wide statements by providing information about the City’s most significant funds. The remaining statements provide financial information about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the government.

Reporting the City as a Whole

The Statement of Net Position and the Statement of Activities

One of the most important questions asked about the City’s finances is “Is the City as a whole better off or worse off as a result of the year’s activities?” The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities in a way that helps answer this question. These statements include all assets, deferred outflows of resources, liabilities and deferred inflows of resources using the accrual basis of accounting, which is similar to the 24

City of Eden Prairie, Minnesota Management’s Discussion and Analysis

accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid.

These two statements report the City’s net position and changes in them. You can think of the City’s net position – the difference between assets, deferred outflows of resources, liabilities, and deferred inflows of resources – as one way to measure the City’s financial health, or financial position. Over time, increases or decreases in the City’s net position is one indicator of whether its financial health is improving or deteriorating. You will need to consider other nonfinancial factors, however, such as changes in the City’s property tax base and the condition of the City’s roads, to assess the overall health of the City.

In the Statement of Net Position and the Statement of Activities, we divide the City into two kinds of activities: • •

Governmental Activities – Most of the City’s basic services are reported here, including general government, public safety, public works, and parks and recreation. Property taxes, charges for services, and capital grants and contributions finance most of these activities.

Business-type Activities – The City charges a fee to customers to help it cover all or most of the cost of certain services it provides. The City’s utility system (Water, Wastewater and Stormwater Funds) and liquor operations are reported here.

Reporting the City’s Most Significant Funds Fund Financial Statements

The fund financial statements provide detailed information about the most significant funds – not the City as a whole. Some funds are required to be established by State law and by bond covenants.

However, the City Council establishes many other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain grants and other money. The City’s two kinds of funds – governmental and proprietary – use different accounting approaches.

•

Governmental funds – Most of the City’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps to determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. We describe the relationship between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds in a reconciliation provided after the fund financial statements.

25

City of Eden Prairie, Minnesota Management’s Discussion and Analysis •

Proprietary funds – When the City charges customers for the services it provides – these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities.

The City of Eden Prairie maintains two different types of proprietary funds.

• •

Enterprise funds are the same as the business-type activities reported in the governmentwide statements but provide more detail and additional information, such as cash flows.

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 activities pertaining to employee benefits, workers compensation, personal time off accruals, property insurance, facilities, fleet services, and information technology.

The City as Trustee

Reporting the City’s Fiduciary Responsibilities

All of the City’s fiduciary activities are reported in a separate Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position. The City is fiduciary for resources collected and owed to others including developers and governmental agencies. We exclude these activities from the City’s other financial statements because the City cannot use these assets to finance operations.

The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. The accounting used for fiduciary funds is much like that used for proprietary funds.

The City as a Whole

The City’s combined net position increased from $427,734,710 to $432,580,747 and maintained its financial position. A large part of this increase was due to positive General Fund performance and increased Parks and Recreation program revenue. In 2021 and 2022 the City received $3,723,700 in American Recovery Plan funding which was used to reimburse General Fund costs related to the Coronavirus Disease (COVID-19). In addition the General Fund had positive performance in licenses and permits, property tax revenue, and charges for services. By far the largest portion of the City of Eden Prairie’s net position, $318,110,915 (approximately 73%) reflects its investment in capital assets (e.g. land, buildings, machinery, and equipment) less any related debt used to acquire those assets that is still outstanding. The City of Eden Prairie 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, the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

An additional portion of the City’s net position $16,290,155 (approximately 4%), represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position, $98,179,677 (approximately 23%), may be used to meet the City’s ongoing obligations to citizens and creditors.

26

City of Eden Prairie, Minnesota Management’s Discussion and Analysis

At the end of the current fiscal year, the City is able to report positive balances in all of the categories of net position reported for the government as a whole.

The following schedule provides a summary of the City’s net position as of December 31, 2022 (in thousands): Governmental Activities 2022 202 1 Current and Other Assets Capital Assets Total Assets Deferred Outflows Total Assets and Deferred Outflows

$

118,805 232,059 350,865 28,120 378,984

$

118,964 232 ,309 35 1,273 16 ,216 367,489

Business-Type Activities 2022 202 1 $

46,335 111 ,070 157,405 1,439 158,845

$

45,836 114,899 160,735 1,887 162,62 1

Tota l 2022 $

165 ,140 343 ,130 508 ,270 29 ,559 537 ,829

202 1 $

164,801 347,207 512,008 18,102 530,110

Long-Term Liabilities Outstanding Other Liabilities Total Liabilities Deferred Inflows Total Liabilities and Deferred Inflows

71,304 6,930 78,234 6,578 84,812

53 ,578 5,281 58 ,860 23 ,704 82 ,563

17,857 1,877 19,734 701 20,435

14,920 2,452 17,372 2,44 1 19,812

89 ,161 8,808 97 ,969 7,279 105 ,248

68,498 7,733 76,231 26,144 102,376

Invested in Capital Assets Restricted Unrestricted Total Net Position

212,853 16,290 65,028 294,171

209 ,098 16,431 59 ,397 284 ,926

105,258

114,899

318,111 16,290 98 ,180 432 ,58 1

323,997 16,431 87,307 427,735

$

$

$

33,152 138,409

$

27,910 142,809

$

$

Key elements of these changes are shown on the following page.

27

City of Eden Prairie, Minnesota Management’s Discussion and Analysis vernmental Activities 2022 2021

Revenues: Program Revenues Charges for Services Operating Grants an d Contributions Capital Grants and Contributions General Revenues Prope rty Taxes Tax Increment Grants an d Contributions Investment Income Total Revenues

$

13,343 6,799 8,995

$

12,694 6,510 10,638

43,333 2,750 972 ( 1,512) 74 ,681

40,478 2,681 1,836 (335) 74 ,503

5,752 5,98 7 17,956 5,689 16,585 17,932 ( 126)

4,680 5,198 14,150 6,475 14,706 15,218 777

Business-Type Activities 2022 2021

$

34,364 107 2,339

(691 ) 36,120

Expenses: Administration Community Development Police Fire Public W orks Parks and Recreation Interest on Long Term Debt W ater W astew ater Stormw ater Liquor Total Expenses

69,774

6 1,205

13,549 8,375 3,170 11 ,085 36,180

Changes in Net Position Before Transfers Internal Transfers Change in Net Position

4,906 4,339 9,246

13,298 1,6 11 14,910

(60) (4,339) (4,400)

Net Position, January 1 Net Position, December 31

$

284 ,926 294 ,171

$

270,016 284 ,926

$

$

142,809 138,409

$

33,6 98 68 1,752

Total 2022

$

47,707 6,906 11 ,334

2021

$

46 ,393 6,578 12,390

( 16 8) 35,351

43,333 2,750 972 (2,202) 110,800

40,478 2,6 81 1,836 (503) 109,854

12,434 7,504 2,894 10,926 33,759

5,752 5,987 17,956 5,6 89 16,585 17,932 (126) 13,549 8,375 3,170 11 ,085 105,954

4,6 80 5,198 14,150 6,475 14,706 15,218 777 12,434 7,504 2,894 10,926 94,963

1,593 (1,6 11 ) (19)

4,846

14,891

4,846

14,891

142,828 142,809

$

427,735 432,581

$

412,844 427,735

28

City of Eden Prairie, Minnesota Management’s Discussion and Analysis Governmental Activities Revenue by Source

Governmental Activity - Revenue by Source Other 5%

Charges for Services

Grants and Contributions 20%

Property Taxes and Tax Increment 58%

• • • •

For the year, property taxes totaled $43,333,223 which is an increase of $2,854,941 or 7.1% from 2021. For 2022, the City budgeted for a 4.8% increase in property taxes. The increase in taxes over the budgeted amount is due to the change in delinquent taxes owed.

Charges for services increased by $648,926 or 5.1% from 2021 due mainly to increased parks and recreation program revenue.

Operating grants and contributions were consistent with 2021.

Capital grants and contributions decreased as in 2021 we received grant money for the construction of the Southwest Light Rail Transit line and the Town Center Station.

29

City of Eden Prairie, Minnesota Management’s Discussion and Analysis Expenses by Program

Governmental Activity - Expenses by Source

Oth er Administration 1% 8%

Parks and Recreation

Community Development 8%

Police 26%

24%

Expenses and Program Revenues - Governmental Activities (In Thousands) $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $-

II I. Administration

Community Development

■ Police ■ Expenses

II Fire

Public Works

■ Program Revenues

Parks and Recreation

Interest on Long Term Debt

Business-type Activities

For the business-type activities, charges for services accounts for 93% of revenues. The Water Fund, Wastewater Fund and Stormwater Fund had a change to net position of $(1,637,884), $(799,216) and $(2,059,317). The water fund’s decrease in net position is mainly due to expenses from the 30

City of Eden Prairie, Minnesota Management’s Discussion and Analysis

water meter change out project and a transfer to the Eden Prairie Road Connect to Flying Cloud Drive fund to assist with capital improvements. The Wastewater Fund’s decreased net position is due to expenses associated with rehabilitating sewer lift stations and repairing manholes to reduce inflow and infiltration, and a transfer to the Eden Prairie Road Connect to Flying Cloud Drive fund to assist with capital improvements. The Stormwater Fund’s decreased net position is due to an transfer to the Duck Lake Road Reconstruction fund to cover stormwater expenses related to the project. The Liquor operations had a positive change in net position of $139,124.

Expenses and Program Revenues - Business-type Activities (In Thousands) $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000

$Water

Wastewater ■ Expenses

Stormwater

Liquor

■ Program Revenues

31

City of Eden Prairie, Minnesota Management’s Discussion and Analysis The City’s Funds

The General fund is the chief operating fund of the City of Eden Prairie. Fund balance increased by $4,112,772. The City was able to maintain balances in accordance with its fund balance policy.

2022

Fund Balance Nonspendable Restricted Unassigned Total Fund Balance

2021

Difference

$

180,596

$

187,378

$

(6 ,782)

$

33 ,252 ,089 33,432 ,685

$

29,132,535 29,319,913

$

4,119,554 4,112,772

Nonspendable Balances

The balances classified as nonspendable consist of balances that are not in spendable form, such as prepaid assets.

Restricted Balances

The balances classified as restricted consist of balances related to externally imposed constraints established by creditors, grantors/contributors, or state statutory provisions.

Unassigned Balances

The unassigned fund balance consists of the residual classification for the general fund. The City maintained an unassigned fund balance in accordance with the City’s fund balance policy.

32

City of Eden Prairie, Minnesota Management’s Discussion and Analysis Other Major Funds

The GO Tax Abate 2014A/20A fund balance decreased by $13,245,731 in 2022. Revenue of $1,333,452 was collected which consisted mainly of general property taxes. There was also $13,165,000 of GO Tax Abatement Bonds 2014A that were refunded in 2022.

The Public Improvement Construction fund balance increased by $29,964 in 2022. Revenue of $112,839 was collected which consisted mainly of special assessments. Construction costs include Flying Cloud Drive and the Prairie Center Drive and Singletree Lane intersection. These projects will be repaid with future special assessments, grants and state aid. There was also a transfer in of $230,238 for the Hennepin Town Road turn lane.

The Capital Improvement Maintenance fund balance decreased by $114,754 in 2022. Revenue of $948,393 was collected which consists mainly of general property taxes and building rental income.

Expenditures for the year include trail maintenance, hard court maintenance, Miller Park lighting, the Round Lake park building reconstruction, and the Riverview Road Guardrail. Transfers in include $800,000 and $1,000,000 from the Liquor fund and the General fund respectively due to positive operating results. There was also $173,134 transferred from the Park Improvement fund for Riley Lake Playground. $400,000 was transferred out for the Capital Improvement Maintenance’s Fund share of trail maintenance.

The Shady Oak Road North fund balance decreased by $18,252 in 2022. The Shady Oak Road North project reconstructed Shady Oak Road from Rowland Road through the Highway 62 interchange.

This project is substantially complete and is expected to be closed out in 2023.

The Eden Prairie Rd Connect to Flying Cloud increased by $791,418. Special Assessments of $31,608 were collected. This project is for the construction of road from Frederick Place to north of Riley Creek. There was also a $771,899 transfer from the utility funds. This project will be repaid with future special assessments and transfers from the utility funds.

The General LRT fund increased by $14,093. Revenues of $363,391 were collected which consisted of the City’s share of a Federal Transit grant managed by the Metropolitan Council. Expenditures in this fund are for construction related to the Light Rail Transit line. The SWLRT construction in the City is expected to be completed in 2023. Passenger service on the Light Rail is projected to begin in 2027 or 2028 due to construction challenges in neighboring cities. In 2022 this fund was closed with the remaining balance transferred to the Transportation Fund.

The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.

Water fund sales through December 31, 2022 totaled $11,008,837, which is an increase of $325,892 or 3.1% from 2021. Water usage decreased from 2.43 billion gallons to 2.41 billion gallons. The change in sales can be attributed to an increase in rates offset by a decrease in consumption.

33

City of Eden Prairie, Minnesota Management’s Discussion and Analysis

Wastewater fund sales through December 31, 2022 totaled $7,517,471, which is an increase of $56,721 or 0.1% from 2021. Sewer usage decreased from 1.42 billion gallons to 1.36 billion gallons.

The change in sales can be attributed to an increase in rates offset by a decrease in consumption.

Stormwater fund sales through December 31, 2022 totaled $3,770,562, which is an increase of $139,193 or 3.8% from 2021. The increase is due to the rate increase.

Liquor operations profit of $800,000 was transferred to the Capital Improvement Maintenance Fund. Sales totaled $11,753,806 which is an increase of $111,518 or 1.0% over 2021. The operation continues to provide value to customers and maintain customer loyalty.

Budgetary Highlights

The net change in fund balance to the General fund was $4,112,772. Revenues of $55,637,307 were recorded which is $1,191,240 more than budgeted. Property tax revenue and licenses and permits performed better than expected. Charges for services underperformed slightly due to continuing effects of COVID 19 on community center memberships and organized athletics. Total expenditures equaled $51,385,814 or 97.5% of the budget. All departments have spent less than 100% of the amounts budgeted except for Fire. The Fire overage is due to the turn out gear lease. Due to the positive General Fund performance, $1,000,000 was transferred to the Capital Improvement and Maintenance Fund to support the Capital Improvement Program.

Capital Assets and Debt Administration Capital Assets

At the end of 2022, the city had $343 million invested in capital assets. Major capital assets added during the current fiscal year by fund include the following: Fund

Project Name

2022 Additions

Duck Lake Road

Duck Lake Road Reconstruction

$ 2,961,489

Fleet Capital

Vehicle and Equipment Replacements

527,990

Water Capital Park Improvement

Well 17 Nesbitt Splash Pad

348,362 305,225

Total

$4,143,066

34

City of Eden Prairie, Minnesota Management’s Discussion and Analysis

Capital Assets (net of depreciation/amortization, in thousands) Land & Land lmprov.

Infrastructu re Work in Progress Distribution System Buildings Leased Buildings Leased Equipment Machinery & Equipment Autos Other Assets Total

Governmental Activities 2022 202 1 $ 33,498 $ 34,691 139,375 139,189 5,409 2,362 44,914

47,184

98 1,003 3,838 3,924 $ 232,059

513 4,422 3,948 $232 ,309

Business-ty~e Activities 2022 202 1 $ 1,332 $ 1,364 348 84,549 19,588 1,279

55 88,4 14 20,751

2,772 239 963 $ 11 1,070

3,015 271 1,029 $ 11 4,899

Total 2022 202 1 $ 34,830 $ 36,055 139,375 139,189 5,757 2,4 17 84,549 88,4 14 64,502 67,935 1,279 98 3,775 3,528 4,077 4,693 4,887 4,977 $343,129 $347,208

The City has chosen to maintain infrastructure using the modified approach. This means the City does not depreciate the cost of infrastructure but maintains the system at a “very good condition” level or higher. Additional information on the modified approach can be found in Note 1 of this report and additional information on the City’s capital assets can be found in Note 4 of this report.

The City’s policy is to achieve an average rating of 70 (very good condition) for all streets and trails. In the summer of 2022, the City conducted a physical condition assessment. This assessment will be performed every three years. As of December 31, 2022, the City’s infrastructure system was rated at a Pavement Condition Index (PCI) of 85.3%, which is higher than the City’s policy level. The City’s infrastructure is constantly deteriorating resulting from the following factors: (1) traffic using the system; (2) the sun’s ultra-violet rays drying out and breaking down the top layer of pavement; (3) utility company/private development trenching operations; (4) water damage from natural precipitation; and (5) frost heave. The City is continuously taking actions to prolong the life of the system through short-term maintenance activities such as pothole patching, crack sealing, seal coating, and overlaying. The City expended $6,008,581 on infrastructure maintenance for the year ending December 31, 2022. These expenditures delayed deterioration; and, the overall condition of the system was improved through these maintenance expenditures. The City has estimated that the amount of annual expenditures required to maintain the City’s infrastructure at the average PCI rating of very good is approximately $5,000,000.

Debt

At year-end, the City had approximately $89 million in bonds and other long-term liabilities outstanding compared to $68 million last year. Long term liabilities increased due to an increase in the net pension liability. This was offset by a decrease in debt as $13.1M of refunding bonds were paid off in 2022. Refer to Note 10 – Long Term Debt.

35

City of Eden Prairie, Minnesota Management’s Discussion and Analysis Economic Factors and Next Year’s Budgets

The City’s elected officials consider many factors when adopting the budget and determining fees for service and fees that will be charged for the business-type activities. These factors include service levels, the tax impact on the median value home, commercial/industrial and household growth, and inflation.

Currently, the 2023 general fund budgeted appropriations are $54,442,407 which is an increase of $1,778,017 or 3.4% from the 2022 budget. Revenues less expenses for 2023 are ($1,100,000). The City anticipates using American Recovery Plan funding to offset the revenue shortfalls.

Contacting the City’s Financial Management

This financial report is designed to provide a general overview of the City’s finances for those interested in the government’s finances. If you have questions about this report or need additional financial information, contact the Finance Division at City of Eden Prairie, 8080 Mitchell Road, Eden Prairie, MN 55344.

36

GOVERNMENT -WIDE STATEMENTS

37

City of Eden Prairie, Minnesota Statement of Net Position December 31, 2022 Primary Government Governmental Business-type Activities Activities ASSETS Cash and Investments Receivables Accounts (net of allow for uncollectible) Investment Interest Lease Receivable Interest Due From Other Governments Unremitted Taxes Delinquent Taxes Unremitted Special Assessments Delinquent Special Assessments Special Assessments Unavailable Special Assessments Inventory Net Pension Asset Prepaid Items Lease Receivable Due Within One Year Due in More Than One Year Land Held for Resale Capital Assets Nondepreciable/Nonamortizable Land Infrastructure Work in Progress Depreciable/Amortizable Buildings, Property and Equipment, Net Total Assets DEFERRED OUTFLOWS OF RESOURCES Refunding of Debt Other Post Employment Benefits Pensions Total Deferred Outflows of Resources Total Assets and Deferred Outflows of Resources

$

Total

98,078,172 $

38,882,652 $

136,960,824

2,510,884 261,676 17,484 3,057,447 237,290 790,140 193 1,770 2,370,059 1,319,588 187,671 5,780,395 908,243

3,770,671 120,202 1,630 92,292 16,135 375,727 599,955 287,500 1,138,600 447,464

6,281,555 381,878 19,114 3,149,739 237,290 790,140 16,328 377,497 2,970,014 1,607,088 1,326,271 5,780,395 1,355,707

458,574 2,084,682 741,000

109,900 492,087 -

568,474 2,576,769 741,000

22,068,182 139,374,845 5,409,234

1,057,955 348,360

23,126,137 139,374,845 5,757,594

65,207,056 350,864,585

109,664,008 157,405,138

174,871,064 508,269,723

262,289 949,405 26,908,067 28,119,761

69,546 1,369,881 1,439,427

262,289 1,018,951 28,277,948 29,559,188

378,984,346

158,844,565

537,828,911

The notes to the financial statements are an integral part of this statement 38

City of Eden Prairie, Minnesota Statement of Net Position December 31, 2022

Governmental Activities LIABILITIES Accounts and Contracts Payable Salaries Payable Investment Interest Payable Bond Interest Payable Lease Interest Payable Due to Other Governments Unearned Revenue Total Other Post Employment Benefits Liability Due in More Than One Year Net Pension Due in More Than One Year Lease Liability Payable Due Within One Year Due in More Than One Year Bonds Payable Due Within One Year Due in More Than One Year Finance Purchases From Direct Borrowing Due Within One Year Due in More Than One Year Compensated Absences Due Within One Year Due in More Than One Year Total Liabilities

Total Liabilities and Deferred Inflows

$

Total

4,010,785 1,085,063 6,895 190,513 276 289,208 1,347,749

1,404,970 188,277 88,471 3,560 183,726 8,409

5,415,755 1,273,340 6,895 278,984 3,836 472,934 1,356,158

3,256,902

255,087

3,511,989

46,202,184

4,634,169

50,836,353

22,838 75,603

163,601 1,150,738

186,439 1,226,341

2,471,000 16,480,960

620,000 10,652,267

3,091,000 27,133,227

92,200 325,937

DEFERRED INFLOWS OF RESOURCES Other Post Employment Benefits Pensions Deferred Inflows of Resources Related to Lease Receivable Total Deferred Inflows of Resources

NET POSITION Net Investment in Capital Assets Restricted for Perpetual Care, Nonexpendable Restricted for Debt Service Restricted for Special Assessments Restricted for Tax Increment Restricted for Police Restricted for Public Works Restricted for Parks and Recreation Restricted for Historical and Cultural Unrestricted Total Net Position

Primary Government Business-type Activities

-

92,200 325,937

1,144,701 1,232,043 78,234,857

183,441 197,438 19,734,154

1,328,142 1,429,481 97,969,011

484,778 3,594,788

35,370 77,646

520,148 3,672,434

2,498,525 6,578,091

588,046 701,062

3,086,571 7,279,153

84,812,948

20,435,216

105,248,164

212,853,068 192,139 4,510,005 7,126 3,592,224 271,714 2,744,536 4,937,149 35,262 65,028,175 294,171,398 $

105,257,847 33,151,502 138,409,349 $

318,110,915 192,139 4,510,005 7,126 3,592,224 271,714 2,744,536 4,937,149 35,262 98,179,677 432,580,747

The notes to the financial statements are an integral part of this statement

39

City of Eden Prairie, Minnesota Statement of Activities For the Year Ended December 31, 2022

Expenses FUNCTIONS/PROGRAMS Primary Government Governmental Activities Administration Community Development Police Fire Public Works Parks and Recreation Interest on Long Term Debt Total Governmental Activities Business-Type Activities Water Wastewater Stormwater Liquor Total Business-Type Activities Total Primary Government

$

Charges for Services

Program Revenue Operating Capital Grants and Grants and Contributions Contributions

5,751,886 $ 897,992 $ 3,747,412 $ 5,986,996 85,127 629,603 17,956,084 1,022,601 1,056,452 5,689,004 3,948,568 559,653 16,584,584 336,140 500,000 17,931,630 7,052,917 305,688 (125,817) 69,774,367 13,343,345 6,798,808

13,549,136 8,375,360 3,170,444 11,084,984 36,179,924 $ 105,954,291 $

11,008,837 53,648 7,517,471 39,762 3,770,562 8,067 12,067,226 6,016 34,364,096 107,493 47,707,441 $ 6,906,301 $

923,000 162,571 7,825,102 84,422 8,995,095 1,658,522 642,347 37,777 2,338,646 11,333,741

General Revenues Taxes Property Taxes, Levied for General Purposes Property Taxes, Levied for Debt Service Tax Increment Grants and Contributions Not Restricted to Specific Programs Investment Income Transfers Total General Revenues and Transfers Change in Net Position Net Position - Beginning Net Position - Ending

The notes to the financial statements are an integral part of this statement 40

Net (Expense) Revenue and Changes in Net Position Governmental Activities

$

$

Business-type Activities

Total

(1,106,482) $ (4,349,266) (15,714,460) (1,180,783) (7,923,342) (10,488,603) 125,817 (40,637,119)

-

(40,637,119)

(828,129) (175,780) 645,962 988,258 630,311 630,311

(828,129) (175,780) 645,962 988,258 630,311 (40,006,808)

40,796,786 2,536,437 2,750,448 971,536 (1,511,717) 4,339,262 49,882,752

(690,645) (4,339,262) (5,029,907)

40,796,786 2,536,437 2,750,448 971,536 (2,202,362) 44,852,845

9,245,633 284,925,765 294,171,398

(4,399,596) 142,808,945 138,409,349 $

4,846,037 427,734,710 432,580,747

$

$

(1,106,482) (4,349,266) (15,714,460) (1,180,783) (7,923,342) (10,488,603) 125,817 (40,637,119)

The notes to the financial statements are an integral part of this statement 41

This page is intentionally left blank

42

FUND FINANCIAL STATEMENTS

43

City of Eden Prairie, Minnesota Balance Sheet Governmental Funds December 31, 2022 Debt Service

ASSETS Cash and Investments Receivables Accounts Investment Interest Lease Receivable Interest Due From Other Governments Unremitted Taxes Delinquent Taxes Unremitted Special Assessments Delinquent Special Assessments Deferred Special Assessments Special Deferred Special Assessments Due From Other Funds Prepaid Items Lease Receivable Land Held for Resale Notes Receivable (net of allow for uncollectible) Total Assets LIABILITIES Accounts and Contracts Payable Salaries Payable Investment Interest Payable Due to Other Governments Due to Other Funds Unearned Revenue Total Liabilities

General

General Obligation Tax Abatement Bonds 2014A/20A

$

34,885,681

$

1,125,163

$

527,193 75,886 163,971 183,136 782,345 1,355 28,465 180,596 36,828,628

$

4,563 6,093 1,135,819

$

DEFERRED INFLOWS OF RESOURCES Deferred Inflow of Resource Related to Lease Receivable Unavailable Revenue Unavailable Revenue - State Shared Taxes Unavailable Revenue-Property Taxes Unavailable Revenue-Special Assessments Total Deferred Inflows of Resources

1,349,278 980,195 47,063 154,386 2,530,922

$

52,856 782,345 29,820 865,021

FUND BALANCES Nonspendable Restricted Assigned Unassigned Total Fund Balance Total Liabilities, Deferred Inflows of Resources, and Fund Balance

Capital Projects

36,828,628

$

-

$

7,255 133,124 159,706 300,085

$

-

180,596 33,252,089 33,432,685

$

395 395

1,135,424 1,135,424

$

1,135,819

Public Improvement Construction

$

245,893 1,166 173,802 420,861

Capital Improvement Maintenance

$

23,790,588

$

75,621 15,454 1,220,502 1,785 7,795 247 134,880 61,582 1,079,683 25,648 2,129,899 28,543,684

$

204,487 111,755 316,242

Shady Oak Road North

$

669,820

$

2,051 671,871

$

10,126 10,126

292,830 292,830

2,095,122 1,220,502 7,795 196,709 3,520,128

-

(413,606) (413,606)

25,648 24,681,666 24,707,314

661,745 661,745

300,085

$

28,543,684

$

671,871

The notes to the financial statements are an integral part of this statement

44

City of Eden Prairie, Minnesota Balance Sheet Governmental Funds December 31, 2022 Capital Projects

Eden Prairie Rd Connect to Flying Cloud ASSETS Cash and Investments Receivables Accounts Investment Interest Lease Receivable Interest Due From Other Governments Unremitted Taxes Delinquent Taxes Unremitted Special Assessments Delinquent Special Assessments Deferred Special Assessments Special Deferred Special Assessments Due From Other Funds Prepaid Items Lease Receivable Land Held for Resale Notes Receivable (net of allow for uncollectible) Total Assets LIABILITIES Accounts and Contracts Payable Salaries Payable Investment Interest Payable Due to Other Governments Due to Other Funds Unearned Revenue Total Liabilities

$

-

$

245,156 157,185 402,341

$

63,733 5,212 905,881 974,826

Other Governmental Funds

General LRT

$

-

$

-

$

-

$

23,579,711

$

872,465 61,293 1,030 1,643,868 46,276 193 168 1,828,434 941,115 67,041 80,525 380,255 741,000 1,078,189 31,321,563

$

1,440,408 14,292 517 28,861 67,041 1,080,973 2,632,092

Total Governmental Funds

$

84,050,963

$

1,406,913 219,414 16,484 3,028,341 237,290 790,140 193 1,770 2,370,059 1,319,588 1,146,724 286,769 2,510,154 741,000 1,078,189 99,203,991

$

3,314,320 994,487 6,895 75,924 1,146,724 1,347,114 6,885,464

DEFERRED INFLOWS OF RESOURCES Deferred Inflow of Resource Related to Lease Receivable Unavailable Revenue Unavailable Revenue - State Shared Taxes Unavailable Revenue-Property Taxes Unavailable Revenue-Special Assessments Total Deferred Inflows of Resources

402,341 402,341

-

371,156 525 2,769,717 3,141,398

2,466,278 53,381 1,220,502 790,140 3,691,417 8,221,718

FUND BALANCES Nonspendable Restricted Assigned Unassigned Total Fund Balance

(974,826) (974,826)

-

272,664 13,309,002 12,036,082 (69,675) 25,548,073

478,908 15,106,171 36,717,748 31,793,982 84,096,809

Total Liabilities, Deferred Inflows of Resources, and Fund Balance

$

402,341

$

-

$

31,321,563

$

99,203,991

The notes to the financial statements are an integral part of this statement

45

This page is intentionally left blank

46

City of Eden Prairie, Minnesota Governmental Funds Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position December 31, 2022

Amounts Reported for Governmental Activities in the Statement of Net Position are Different Because: Total Fund Balance - Governmental Funds

$

84,096,809

1. Capital assets used in Governmental Activities are not financial resources and therefore are not reported as assets in governmental funds.

Cost of Capital Assets Less Accumulated Depreciation

280,687,342 (54,604,733)

2. Long term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds.

Long-term liabilities at year end consist of: Bond Principal Payable Net Finance Purchases From Direct Borrowing Deferred Gain on Refunding

(18,951,960) (418,137) 262,289

3. The City's net pension liability, net pension asset and related deferred outflows and inflows of resources are recorded only on the Statement of Net Position Balances at year end are: Net Pension Asset Deferred Outflows of Resources related to pensions Net Pension Liability Deferred Inflows of Resources related to pensions

5,780,395 26,908,067 (46,202,184) (3,594,788)

4. Taxes and special assessment receivable will be collected in future years, but are not available soon enough to pay for the current period's expenditures and therefore are deferred in the funds.

4,481,557

5. Receivable will be collected in future years, but are not available soon enough to pay for the current period's expenditures and therefore are deferred in the funds.

1,273,883

6. Governmental funds do not report a liability for accrued interest on long-term debt until due and payable.

(190,513)

7. Internal Service Funds are used by management to charge the costs of employee benefits to individual funds. The assets and liabilities of the Internal Service Fund are included in Governmental Activities in the Statement of Net Position.

14,241,204

8. Internal Service Funds are used by management to charge the costs of employee benefits to individual funds. The assets and liabilities of the Internal Service Fund are included in Business-type Activities in the Statement of Net Position.

402,167

Net Position - Governmental Activities

$

294,171,398

The notes to the financial statements are an integral part of this statement

47

City of Eden Prairie, Minnesota Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2022 Debt Service General Obligation Tax Abatement Bonds 2014A/21A

General REVENUES General Property Taxes Special Assessments Penalties and Interest Licenses and Permits Intergovernmental Revenue Charges for Services Fines and Forfeits Investment Income Lease Income Rental Other Total Revenues

$

EXPENDITURES Current Administration Community Development Police Fire Public Works Parks and Recreation Capital Outlay Administration Police Fire Public Works Parks and Recreation Debt Service Principal Interest Fiscal Agent Fees Total Expenditures

Capital Projects

39,685,634 $ 19,068 22,551 5,303,467 5,345,840 5,201,248 296,757 (468,510) 231,252 55,637,307

4,880,588 2,412,940 17,032,495 6,841,419 6,562,592 13,635,118 -

Public Improvement Construction

Capital Improvement Maintenance 396,953 $ 14,953 (435,911) 75,317 893,402 3,679 948,393

(15,011) (15,011)

-

419,389 -

-

313,113 -

31,662 122,374 436,632 1,594,916

3,241 -

1,357,662 $ (24,210) 1,333,452

75,026 785 37,028 112,839

-

$

Shady Oak Road North

18,819 1,843 51,385,814

925,000 487,138 2,045 1,414,183

313,113

2,604,973

3,241

4,251,493

(80,731)

(200,274)

(1,656,580)

(18,252)

OTHER FINANCING SOURCES (USES) Issuance of Debt Payment to Refunded Bond Transfers In Transfers Out Total Other Financing Sources (Uses)

436,955 444,324 (1,020,000) (138,721)

(13,165,000) (13,165,000)

230,238 230,238

1,973,134 (431,308) 1,541,826

-

Net Change in Fund Balances

4,112,772

(13,245,731)

29,964

(114,754)

(18,252)

Fund Balance (Deficit) - Beginning

29,319,913

14,381,155

(443,570)

24,822,068

679,997

(413,606) $

24,707,314

Excess of Revenues Over (Under) Expenditures

Fund Balance (Deficit) - Ending

$

33,432,685

$

1,135,424

$

$

661,745

The notes to the financial statements are an integral part of this statement

48

City of Eden Prairie, Minnesota Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2022 Capital Projects

Eden Prairie Rd Connect to Flying Cloud REVENUES General Property Taxes Special Assessments Penalties and Interest Licenses and Permits Intergovernmental Revenue Charges for Services Fines and Forfeits Investment Income Lease Income Rental Other Total Revenues

$

EXPENDITURES Current Administration Community Development Police Fire Public Works Parks and Recreation Capital Outlay Administration Police Fire Public Works Parks and Recreation Debt Service Principal Interest Fiscal Agent Fees Total Expenditures

31,608 31,035 62,643

Other Governmental Funds

General LRT $

360,185 3,206 363,391

$

Total Governmental Funds

4,127,159 $ 606,809 3,335,913 7,711,329 1,927,572 925 (356,144) 13,395 78,134 870,455 18,315,547

45,567,408 747,464 22,551 8,639,380 13,417,354 7,128,820 297,682 (1,264,760) 88,712 971,536 1,142,414 76,758,561

-

-

3,409,570 274,033 77,737 49,062

5,299,977 5,822,510 17,306,528 6,841,419 6,640,329 13,684,180

43,124 -

499,908 -

53,706 10,630,596 636,132

53,706 31,662 122,374 11,926,614 2,231,048

43,124

499,908

1,753,170 89,539 6,688 16,980,233

2,696,989 578,520 8,733 73,244,589

19,519

(136,517)

1,335,314

3,513,972

OTHER FINANCING SOURCES (USES) Issuance of Debt Payment to Refunded Bond Transfers In Transfers Out Total Other Financing Sources (Uses)

771,899 771,899

150,610 150,610

2,720,000 (499,635) 2,220,365

436,955 (13,165,000) 6,290,205 (1,950,943) (8,388,783)

Net Change in Fund Balances

791,418

14,093

3,555,679

(4,874,811)

(1,766,244)

(14,093)

21,992,394

88,971,620

Excess of Revenues Over (Under) Expenditures

Fund Balance (Deficit) - Beginning Fund Balance (Deficit) - Ending

$

(974,826) $

-

$

25,548,073

$

84,096,809

The notes to the financial statements are an integral part of this statement

49

City of Eden Prairie, Minnesota Reconciliation of the Statement of Revenues and Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended December 31, 2022 Total net change in fund balances - governmental funds

$

(4,874,811)

Amounts Reported for Governmental Activities in the Statement of Activities are Different Because: Capital outlays are reported in Governmental Funds as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over the estimated useful life's as depreciation expense.

Capital Outlays Depreciation/Amortization Expense The net effect of the disposal of capital assets Disposals Accumulated Depreciation/Amortization on Disposals

4,220,751 (4,027,327) (619,886) 385,910

Principal payments of long-term debt consumes the current financial resources of Governmental Funds, However they have no effect on Net Position.

2,649,818

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 thus requires 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.

95,283

The issuance of long-term debt provides current financial resources to Governmental Funds and has no effect on Net Position. These amounts are reported in the Governmental Funds as a source of financing. These amounts are not shown as revenue in the Statement of Activities, but rather constitute long-term liabilities in the Statement of Net Position.

(436,955)

Governmental Funds report debt issuance premiums and discounts as another financing source or use at the time of issuance. Premiums and discounts are reported as an unamortized asset or liability in the Government-wide financial statements.

Amortization of Premiums/Discounts

402,669

Debt service bonds were refunded during the year. The amount paid off with the new funding is reported in the governmental funds as a use of financing. However, the payments are not expenditures in the statement of activities, but rather a reduction on long-term liabilities in the statement of net position.

13,165,000

Refunding gains/(losses) are recognized when paid in the governmental funds but amortized over the life of the debt in the Statement of Activities.

Deferred Gain Amortization of Deferred Gain

284,146 (21,857)

Taxes and special assessments receivable will be collected in future years, but are not available soon enough to pay for the current period's expenditures, and therefore are deferred in the funds.

(79,318)

Receivable will be collected in future years, but are not available soon enough to pay for the current period's expenditures, and therefore are deferred in the funds.

(1,747,766)

Some pension expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore are not reported as expenditures.

Change in Net Pension Asset/Liability and Related Deferred Outflows/Inflows of Resources

(216,599)

Internal Service Funds are used by management to charge the costs of employee benefits to individual funds. The net revenue of these activities is reported in Governmental Activities.

24,272

Internal Service Funds are used by management to charge the costs of employee benefits to individual funds. The net revenue of these activities is reported in Business Type Activities.

42,303

Change in Net Position - Governmental Activities

$

9,245,633

The notes to the financial statements are an integral part of this statement

50

City of Eden Prairie, Minnesota General Fund Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended December 31, 2022 With Comparative Actual Amounts For the Year Ended December 31, 2021

2021

2022 Budget Original

Budget Final

Actual

39,346,562 $ 25,000 39,371,562

39,346,562 $ 25,000 39,371,562

39,704,702 $ 22,551 39,727,253

311,650 55,425 2,524,975 791,000

311,650 55,425 2,524,975 791,000

298,029 39,036 3,836,375 759,370

(13,621) (16,389) 1,311,400 (31,630)

293,205 32,999 4,409,481 782,619

207,000 113,500 38,150 4,041,700

207,000 113,500 38,150 4,041,700

209,223 119,744 41,690 5,303,467

2,223 6,244 3,540 1,261,767

159,983 136,923 43,249 5,858,459

610,000 494,000 124,600 65,000 25,000 3,793,701 9,000 5,121,301

610,000 494,000 124,600 65,000 25,000 3,793,701 9,000 5,121,301

651,068 542,833 124,600 65,963 16,820 3,935,576 8,980 5,345,840

41,068 48,833 963 (8,180) 141,875 (20) 224,539

593,687 511,566 120,430 65,944 151,758 3,900,846 8,988 5,353,219

171,047

171,047

213,151

42,104

138,747

3,898,557 496,500 206,400 72,100 70,000 103,700 82,000 43,300 38,500 27,000 5,600 5,043,657

3,898,557 496,500 206,400 72,100 70,000 103,700 82,000 43,300 38,500 27,000 5,600 5,043,657

3,845,607 471,568 154,295 59,178 84,818 201,829 80,085 36,941 21,742 31,764 270 4,988,097

(52,950) (24,932) (52,105) (12,922) 14,818 98,129 (1,915) (6,359) (16,758) 4,764 (5,330) (55,560)

3,060,429 424,309 176,347 24,153 64,129 127,412 61,864 38,285 17,235 21,911 2,100 4,018,174

5,214,704

5,214,704

5,201,248

(13,456)

4,156,921

Fines and Forfeits

367,000

367,000

296,757

(70,243)

319,990

Investment Income

150,000

150,000

(468,510)

(618,510)

(128,825)

Other

179,800

179,800

231,252

51,452

368,319

54,446,067 $

54,446,067 $

55,637,307 $

1,191,240 $

REVENUES Taxes and Special Assessments General Property Taxes and Assessments Penalties and Interest Total Taxes and Special Assessments

$

Licenses and Permits Liquor, Beer and Wine Licenses Other Licenses Building Permits and Fees Cable TV Other Permits Inspection Fees Non-Development Fire Permits Other Total Licenses and Permits Intergovernmental Revenue Police Pension Aid Fire Relief Association Aid School Liaison Police Training Fire Training Grants Local Performance Aid Total Intergovernmental Revenue Charges for Services Public Safety Recreation Community Center Youth Programs Organized Athletics Senior Center Outdoor Center Arts Center Park Facilities Park Maintenance Therapeutic Recreation Arts Special Events Total Recreation Total Charges for Services

Total Revenues

$

Variance Over/(Under)

358,140 $ (2,449) 355,691

Actual

37,805,770 30,416 37,836,186

53,764,269

The notes to the financial statements are an integral part of this statement

51

City of Eden Prairie, Minnesota General Fund Statement of Revenues, Expenditures and Changed in Fund Balance - Budget and Actual For the Year Ended December 31, 2022 With Comparative Actual Amounts For the Year Ended December 31, 2021

Continued

2021

2022 Budget Original

Budget Final

352,284 $ 471,696 559,000 398,627 698,229 932,431 406,056 1,146,265 4,964,588

352,284 $ 471,696 559,000 398,627 698,229 932,431 406,056 1,146,265 4,964,588

377,212 408,807 499,784 358,716 691,641 931,975 389,406 1,223,047 4,880,588

Community Development Assessing Planning Community Development Administration Economic Development Housing & Community Services Total Community Development

1,084,315 722,524 247,615 188,347 363,550 2,606,351

1,084,315 722,524 247,615 188,347 363,550 2,606,351

Police

17,524,711

Fire Fire Inspections Public Safety Communications Total Fire Public Works Engineering Street Maintenance Street Lighting Total Public Works

EXPENDITURES Current Administration Legislative Office of the City Manager Legal Counsel City Clerk Communications Finance Customer Service Human Resources Total Administration

$

Variance Over/(Under)

Actual

Actual

24,928 $ (62,889) (59,216) (39,911) (6,588) (456) (16,650) 76,782 (84,000)

409,268 403,166 689,483 223,709 635,176 898,946 376,205 1,016,538 4,652,491

1,055,993 574,623 231,497 186,083 364,744 2,412,940

(28,322) (147,901) (16,118) (2,264) 1,194 (193,411)

1,039,814 560,622 190,183 166,418 347,953 2,304,990

17,524,711

17,032,495

(492,216)

16,145,234

5,143,593 1,374,226 158,667 6,676,486

5,143,593 1,374,226 158,667 6,676,486

5,369,294 1,327,290 144,835 6,841,419

225,701 (46,936) (13,832) 164,933

5,003,837 1,287,498 129,822 6,421,157

1,341,557 4,454,774 923,500 6,719,831

1,341,557 4,454,774 923,500 6,719,831

1,280,818 4,298,081 983,693 6,562,592

(60,739) (156,693) 60,193 (157,239)

1,226,075 3,962,893 837,355 6,026,323

$

The notes to the financial statements are an integral part of this statement

52

City of Eden Prairie, Minnesota General Fund Statement of Revenues, Expenditures and Changed in Fund Balance - Budget and Actual For the Year Ended December 31, 2022 With Comparative Actual Amounts For the Year Ended December 31, 2021

Continued

2022

2021

Budget Original

Budget Final

Actual

4,705,397 5,688,795 699,624 478,839 466,795 269,535 386,794 349,361 239,252 267,672 162,109 147,556 92,362 104,982 14,059,073

4,705,397 5,708,490 699,624 478,839 466,795 269,535 386,794 349,361 239,252 267,672 162,109 147,556 92,362 104,982 14,078,768

4,808,144 5,351,320 700,406 453,463 444,131 223,960 335,449 431,491 161,265 282,369 161,958 145,431 81,114 54,617 13,635,118

102,747 (357,170) 782 (25,376) (22,664) (45,575) (51,345) 82,130 (77,987) 14,697 (151) (2,125) (11,248) (50,365) (443,650)

4,313,594 4,931,948 565,272 403,205 440,927 193,219 323,404 376,565 157,932 249,905 136,590 106,323 71,150 73,251 12,343,285

Debt Service Principal Interest Total Debt Service

84,550 8,800 93,350

84,550 8,800 93,350

18,819 1,843 20,662

(65,731) (6,957) (72,688)

59,611 1,155 60,766

Total Expenditures

52,644,390

52,664,085

51,385,814

(1,278,271)

47,954,246

1,801,677

1,781,982

4,251,493

2,469,511

5,810,023

442,024 (20,000) 422,024

442,024 (20,000) 422,024

436,955 444,324 (1,020,000) (138,721)

436,955 2,300 (1,000,000) (560,745)

423,527 (3,216,462) (2,792,935)

2,223,701 $

2,204,006

4,112,772

1,908,766

3,017,088

EXPENDITURES (Continued) Current (Continued) Parks and Recreation Park Maintenance Community Center Youth Programs Senior Center Park Administration Organized Athletics Recreation Administration Arts Center Therapeutic Recreation Outdoor Center Arts Special Events Park Facilities Beaches Total Parks and Recreation

Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES / (USES) Issuance of Debt Transfers In Transfers Out Proceeds from Disposition of Capital Assets Total Other Financing Sources / (Uses) Net Change in Fund Balance

$

Fund Balance, January 1 Fund Balance, December 31

Variance Over/(Under)

$

Actual

29,319,913 $

33,432,685

26,302,825 $

29,319,913

The notes to the financial statements are an integral part of this statement

53

City of Eden Prairie, Minnesota Proprietary Funds Statement of Net Position December 31, 2022

Water Fund ASSETS Current Assets: Cash and Investments Receivables: Accounts Lease Receivable Investment Interest Lease Receivable Interest Due From Other Governments Unremitted Special Assessments Delinquent Special Assessments Deferred Special Assessments Special Deferred Special Assessments Inventory Prepaid Items Total Current Assets Noncurrent Assets Lease Receivable Capital Assets: Not Being Depreciated or Amortized Land Work in Progress Depreciated or Amortized Property, Plant and Equipment Leased Building/Equipment Less Accumulated Depreciation/Amortization

$

Wastewater Fund

21,853,794

$

1,597,165 62,955 23,051 15,955 361,059 182,195 115,000 38,108 24,249,282

9,476,152

Stormwater Fund

$

1,407,848 27,631 50,000 180 11,006 273,293 172,500 371,569 11,790,179

5,335,984

Liquor Fund

$

758,835 21,755 19,241 3,662 144,467 5,250 6,289,194

Governmental Activities Internal Service Fund

Totals

2,618,889

$

39,284,819

$

13,625,042

6,823 109,900 7,861 1,630 1,138,600 32,537 3,916,240

3,770,671 109,900 120,202 1,630 92,292 16,135 375,727 599,955 287,500 1,138,600 447,464 46,244,895

25,782 42,262 1,000 29,106 187,671 621,474 14,532,337

-

-

-

492,087

492,087

33,102

410,694 348,360

-

110,602 -

536,659 -

1,057,955 348,360

374,733

140,788,088 (87,598,405)

83,659,938 (54,156,119)

53,348,070 (28,684,615)

2,628,498 1,474,097 (1,795,544)

280,424,594 1,474,097 (172,234,683)

14,349,085 116,896 (8,864,006)

Total Noncurrent Assets

53,948,737

29,503,819

24,774,057

3,335,797

111,562,410

6,009,810

Total Assets

78,198,019

41,293,998

31,063,251

7,252,037

157,807,305

20,542,147

44,991 742,019 787,010

11,481 171,235 182,716

3,797 171,235 175,032

9,277 285,392 294,669

69,546 1,369,881 1,439,427

949,405 949,405

78,985,029

41,476,714

31,238,283

7,546,706

159,246,732

21,491,552

756,125 92,318 88,471 45,347 620,000 102,802 1,705,063

111,262 28,805 27,114 167,181

45,061 22,366 7,789 75,216

492,522 44,788 3,560 138,379 8,409 163,601 45,736 896,995

1,404,970 188,277 88,471 3,560 183,726 8,409 163,601 620,000 183,441 2,844,455

696,465 90,576 276 213,284 635 22,838 1,144,701 2,168,775

158,396 2,510,175 10,652,267 110,646 13,431,484

44,046 579,271 29,183 652,500

21,729 579,271 8,383 609,383

30,916 965,452 1,150,738 49,226 2,196,332

255,087 4,634,169 1,150,738 10,652,267 197,438 16,889,699

3,256,902 75,603 1,232,043 4,564,548

15,136,547

819,681

684,599

3,093,327

19,734,154

6,733,323

22,879 42,058 64,937

5,847 9,706 15,553

1,932 9,706 11,638

4,712 16,176 588,046 608,934

35,370 77,646 588,046 701,062

484,778 32,247 517,025

15,201,484

835,234

696,237

3,702,261

20,435,216

7,250,348

49,450,600 14,332,945 63,783,545

29,503,819 11,137,661 40,641,480

24,774,057 5,767,989 30,542,046

1,529,371 2,315,074 3,844,445

105,257,847 33,553,669 138,811,516

5,878,267 8,362,937 14,241,204

DEFERRED OUTFLOWS OF RESOURCES Other Post Employment Benefits Pensions Total Deferred Outflows of Resources Total Assets and Deferred Outflows of Resources LIABILITIES Current Liabilities: Accounts Payable Salaries Payable Bond Interest Payable Lease Interest Payable Due to Other Governments Unearned Revenue Current Lease Liability Payable Current Portion of Bonds Payable Current Portion of Compensated Absences Total Current Liabilities Noncurrent Liabilities: Total Other Postemployment Benefits Liability Net Pension Liability Lease Liability Payable Bonds Payable Compensated Absences Total Noncurrent Liabilities Total Liabilities DEFERRED INFLOWS OF RESOURCES Other Postemployment Benefits Liability Pensions Deferred Inflow of Resource Related to Lease Receivable Total Deferred Inflows of Resources Total Liabilities and Deferred Inflows of Resources NET POSITION Net Investment in Capital Assets Unrestricted Total Net Position

$

$

Adjustment to Reflect the Consolidation of Internal Service Fund Activities Related to Enterprise Funds Total Net Position-Business-Type Activities

$

$

$

$

(402,167) 138,409,349

The notes to the financial statements are an integral part of this statement

54

City of Eden Prairie, Minnesota Proprietary Funds Statement of Revenues, Expenses and Changes in Net Position For the Year Ended December 31, 2022

Water Fund SALES AND COST OF SALES Sales Cost of Sales Gross Profit

$

OPERATING REVENUE Sales Charges for Services Rental Lease Receivable Interest Other Total Operating Revenues

Wastewater Fund -

$

-

Stormwater Fund $

-

$

Liquor Fund

Total

11,753,806 $ (8,450,887) 3,302,919

11,753,806 $ (8,450,887) 3,302,919

Governmental Activities Internal Service Fund -

10,991,612 17,225 11,008,837

7,517,271 200 7,517,471

3,770,562 3,770,562

246,016 21,135 46,269 313,420

22,279,445 246,016 21,135 63,694 22,610,290

20,424,642 847,308 1,090 21,273,040

3,182,144

945,981

737,343

1,234,454

6,099,922

9,599,300

82,763 11,998 899,955 299,754

12,553 75,459

48,709 100,161

22,488 3,384

166,513 11,998 899,955 478,758

76,992 116,281 495,221 83,917 893,224

475,882 64,614 55,200 370,755 237,192 379,727 1,098,532 65,301 413,782 2,693,850 10,331,449

119,303 64,614 364,433 31,908 4,159,931 65,301 326,011 529,650 6,695,144

458,375 59,098 898 205,312 392,897 2,002,793

328,638 28,224 96,120 60 1,101 90,000 265,161 173,294 115,824 2,358,748

1,382,198 129,228 83,424 370,755 96,120 237,252 804,359 1,221,338 4,159,931 395,763 1,118,399 3,732,221 21,388,134

3,574,236 1,605,732 886,471 194,242 332,269 1,918,731 21,606 562,921 20,361,143

677,388

822,327

1,767,769

1,257,591

4,525,075

911,897

2,948,104

1,663,532

1,148,498

232,829

5,992,963

1,012,931

(2,270,716)

(841,205)

619,271

1,024,762

(1,467,888)

(101,034)

36,621 (356,511) (304,345) 52,569 (1,200) (7,250) 67,559 (512,557)

50,000 (161,037) 115,559 4,522

37,000 (126,493) (361) 8,067 (81,787)

(46,604) (45,050) 6,016 (85,638)

123,621 (690,645) (45,050) (304,345) 52,569 (1,200) (7,611) 197,201 (675,460)

103,645 (250,739) (2,873) 56,477 22,000 196,796 125,306

(2,783,273)

(836,683)

537,484

939,124

(2,143,348)

24,272

Capital Access Charges Capital Contributions From Developers Capital Special Assessments Transfers Out

1,436,610 74,585 96,795 (462,601)

370,810 74,585 71,155 (479,083)

777 (2,597,578)

(800,000)

1,807,420 149,170 168,727 (4,339,262)

-

Change in Net Position

(1,637,884)

(799,216)

(2,059,317)

139,124

(4,357,293)

24,272

65,421,429

41,440,696

32,601,363

3,705,321

143,168,809

14,216,932

63,783,545 $

40,641,480 $

30,542,046 $

3,844,445

138,811,516 $

14,241,204

OPERATING EXPENSE Personnel Services Supplies Supplies Cleaning Supplies Motor Fuel Tires Chemicals Repair and Maintenance Supplies Contractual Services Contractual Services Software Janitorial Services Lime Residual Removal Building Rent Licenses, Permits, Taxes Repair and Maintenance Utilities MCES Fees Bank and Credit Card Fees User Charges Capital Under $25,000 Total Operating Expenses Operating Income (Loss) Before Depreciation/Amortization Depreciation/Amortization Operating Income (Loss) Before Nonoperating Revenue / Expense NONOPERATING REVENUE (EXPENSE) Grants Investment Income Lease Interest Expense Bonds Interest Bond Issuance Cost Fiscal Agent Fees Gain/(Loss) on Disposition of Capital Assets Contributions Miscellaneous Total Nonoperating Revenues (Expenses) Income (Loss) Before Contributions and Transfers

Net Position - Beginning Net Position - Ending

$

Amounts reported for Business Type Activities in the Statement of Activities are Different Because: Adjustment to Reflect the Consolidation of Internal Service Funds Activities Related To Enterprise Funds Change in Net Position of Business-Type Activities

$

(42,303) (4,399,596)

The notes to the financial statements are an integral part of this statement

55

City of Eden Prairie, Minnesota Proprietary Funds Statement of Cash Flows For the Year Ended December 31, 2022

Page 1 of 2

Water Fund

Wastewater Fund

11,285,745 $ (7,401,980) (3,056,184) 17,225 844,806

7,664,398 $ (6,025,128) (888,865) 200 750,605

3,811,370 $ (1,386,546) (716,605) 1,708,219

12,044,856 $ (9,740,324) (1,275,560) 5,564 1,034,536

34,806,369 $ (24,553,978) (5,937,214) 22,989 4,338,166

20,394,300 (11,145,070) (9,508,967) 846,540 586,803

CASH FLOWS FROM INVESTING ACTIVITIES Investment Income Net Cash Provided (Used) By Investing Activities

(376,049) (376,049)

(164,482) (164,482)

(129,541) (129,541)

(46,696) (46,696)

(716,768) (716,768)

(250,940) (250,940)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Grants Miscellaneous Transfers (Out) Net Cash Provided (Used) By Noncapital Financing Activities

36,621 67,559 (462,601) (358,421)

50,000 115,559 (479,083) (313,524)

37,000 8,067 (2,597,578) (2,552,511)

6,016 (800,000) (793,984)

123,621 197,201 (4,339,262) (4,018,440)

103,645 218,796 322,441

CASH FLOWS FROM CAPITAL FINANCING ACTIVITES Acquisition and Construction of Capital Assets Proceeds From Sale of Equipment Access Charges Special Assessments Principal Paid on Debt Interest and Fiscal Agent Paid on Debt Net Cash Provided (Used) By Capital Financing Activities

(369,181) 1,436,610 96,795 (350,000) (251,914) 562,310

370,810 71,155 441,965

(179,755) 777 (178,978)

(159,758) (41,490) (201,248)

(548,936) 1,807,420 168,727 (509,758) (293,404) 624,049

(696,764) 66,100 (18,456) (2,596) (651,716)

Net Increase (Decrease) in Cash and Cash Equivalents

672,646

714,564

(1,152,811)

(7,392)

227,007

6,588

21,181,148

8,761,588

6,488,795

2,626,281

39,057,812

13,618,454

21,853,794 $

9,476,152 $

5,335,984 $

2,618,889 $

39,284,819 $

13,625,042

CASH FLOWS FROM OPERATING ACTIVITIES Receipts From Customers Payments to Vendors Payments to Employees Other Receipts Net Cash Provided (Used) By Operating Activities

$

Cash and Cash Equivalents, January 1 Cash and Cash Equivalents, December 31

The notes to the financial statements are an integral part of this statement

$

Stormwater Fund

Liquor Fund

Governmental Activities Internal Service Fund

Totals

56

City of Eden Prairie, Minnesota Proprietary Funds Statement of Cash Flows For the Year Ended December 31, 2022

Page 2 of 2

Water Fund RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED)

BY OPERATING ACTIVITIES: Operating Income (Loss) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Depreciation/Amortization (Increase) Decrease in Assets and Deferred Outflows: Accounts Receivable Lease Receivable Special Assessments Receivable Due From Other Governments Inventory Prepaid Items Other Post Employment Benefits (Deferred Outflow) Pensions (Deferred Outflow) Increase (Decrease) in Liabilities and Deferred Inflows: Accounts Payable Salaries Payable Unearned Revenue Due to Other Governments Other Post Employment Benefits Net Pension Liability Other Post Employment Benefits (Deferred Inflows) Pensions (Deferred Inflow) Compensated Absences Net Cash Provided (Used) by Operating Activities Noncash Investing, Capital and Financing Activities: Contributions of Capital Assets from Developers Amortization of Bond Premium

The notes to the financial statements are an integral part of this statement

$

$

$

Wastewater Fund

Stormwater Fund

Governmental Activities Internal Service Fund

Liquor Fund

Totals

1,024,762 $

(1,467,888) $

(101,034)

(2,270,716) $

(841,205) $

2,948,104

1,663,532

1,148,498

232,829

5,992,963

1,012,931

289,210 4,923 (11,879) (6,241) (22,646) 220,842

116,294 30,833 (50,000) (24,908) (5,913) 50,963

33,934 6,874 500 (750) (1,508) 50,964

(1,248) (15,571) (71,621) (249) (4,591) 159,006

438,190 (15,571) 42,630 (61,379) (71,621) (32,148) (34,658) 481,775

30,731 (27,415) (36,173) (160,756) (554,566) -

(228,170) 3,190 (6,385) 14,617 1,150,037 11,736 (1,218,016) (33,800) 844,806 $

49,583 6,441 (250,640) 3,813 265,394 3,063 (281,080) 14,435 750,605 $

(118,566) 404 (2,280) 972 265,393 781 (281,080) (15,188) 1,708,219 $

(99,587) 7,928 13 6,314 2,960 337,696 2,378 (565,396) 18,913 1,034,536 $

(396,740) 17,963 13 (252,991) 22,362 2,018,520 17,958 (2,345,572) (15,640) 4,338,166 $

(165,844) 15,674 (61,073) 6,961 645,127 (15,902) 588,661

74,585 $ 52,569

74,585 $ -

-

-

149,170 $ 52,569

-

619,271 $

$

$

57

City of Eden Prairie, Minnesota Fiduciary Funds Statement of Fiduciary Net Position December 31, 2022

Custodial Funds Total ASSETS Cash and Investments Due from Other Governments Prepaids Total Assets

LIABILITIES Accounts Payable Due to Other Governments Total Liabilities

NET POSITION Restricted

$

$

$

605,727 64,053 6,433 676,213

$

2,038 4,970 7,008

$ $

669,205 669,205

The notes to the financial statements are an integral part of this statement 58

City of Eden Prairie, Minnesota Fiduciary Funds Statement of Changes in Fiduciary Net Position For the Year Ended December 31, 2022

Custodial Funds Total ADDITIONS Grants Memberships Investments Earnings Building Permits Other Total Additions

$

DEDUCTIONS Personnel Services Supplies Contractual Services Total Deductions

407,681 21,826 1,139,479 1,568,986

Net Increase (Decrease) in Fiduciary Net Position

(88,393)

Net Position - Beginning Net Position - Ending

303,468 180,178 20,275 976,605 67 1,480,593

757,598 $

669,205

The notes to the financial statements are an integral part of this statement

59

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60

NOTES TO FINANCIAL STATEMENTS

61

City of Eden Prairie, Minnesota Notes to Financial Statements

Note 1—Summary of Significant Accounting Policies

Reporting Entity The City of Eden Prairie is a municipal corporation governed by an elected mayor and fourmember council. The accompanying financial statements consist of the primary government and organizations for which the primary government is financially accountable. In addition, the primary government may determine through exercise of management’s professional judgment that the inclusion of an organization that does not meet the financial accountability criteria is necessary in order to prevent the financial statements from being misleading. The criteria used to determine if the primary government is financially accountable for a potential component unit include 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.

Blended Component Unit The Housing and Redevelopment Authority (H.R.A.) is a body organized and existing under the laws of the State of Minnesota. The Authority was established in 1980 by the City to carry out certain redevelopment projects within the City and is governed by the City Council and the Mayor.

The City also has an operational responsibility for the H.R.A. The H.R.A. has a December 31 yearend and does not issue financial statements. This unit is included within the H.R.A. and Economic Development funds.

Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the nonfiduciary activities of the City. The fiduciary funds are only reported in the statement of fiduciary net position and the statement of changes in fiduciary net position at the fund financial statement level. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on 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, service or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Measurement Focus, Basis of Accounting and Statement Presentation Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual proprietary funds are reported as separate columns in the fund financial statements.

62

City of Eden Prairie, Minnesota Notes to Financial Statements

The financial statements for the government-wide, proprietary funds, fiduciary funds (which include custodial funds) are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Property taxes, licenses, interest and special assessments are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. All other revenue items are considered to be measurable and available only when payment is received by the City.

The City reports the following major governmental funds: • The General fund is the City’s primary operating fund. It accounts for the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service and capital projects.

• The General Obligation Tax Abatement 2014A/21A fund accounts for the accumulation of tax revenues needed to repay bonds issued to finance construction of the Aquatics & Fitness Expansion.

• The Public Improvement Construction fund accounts for proceeds of bonds sold and special assessments collected to finance street, drainage, and lateral utility construction within the City.

• The Capital Improvement Maintenance fund accounts for the accumulation of resources to be used for capital improvements and maintenance of City property.

• The Shady Oak Road North fund accounts for the accumulation of resources to be used for the reconstruction of Shady Oak Road from Rowland Road through the Highway 62 interchange.

• The Eden Prairie Rd Connect to Flying Cloud fund accounts for the accumulation of resources to be used for the construction of road from Frederick Place to north of Riley Creek.

• The General LRT fund accounts for the accumulation of resources to be used for the completion of the Town Center Station, Urban Grid roadway system, extension of Eden 63

City of Eden Prairie, Minnesota Notes to Financial Statements

Road to the station and upgrade/betterments of amenities within Eden Prairie beyond the base product.

The City reports the following major proprietary funds: • The Water fund accounts for the operations of the City water system.

• The Wastewater fund accounts for the operations of the City wastewater service.

• The Stormwater fund accounts for the operations of the City’s stormwater system.

• The Liquor fund accounts for the operations of the City’s three retail liquor stores and the operations of the City-owned Den Road building which is leased to City liquor operations and other tenants.

Additionally, the city reports the following fund types: • Internal Service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis. Internal Service funds include Health & Benefits, Severance, Workers Compensation, Property Insurance, Facilities, Fleet, and Information Technology.

• Fiduciary funds include Custodial funds that account for evidence held by the Police department in the Escrow fund, WAFTA, Metropolitan Council Environmental Services funds (MCES) and the 494 Corridor Commission.

As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this rule are payments in-lieu of taxes and other charges between the City’s water, wastewater, and storm water function and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported from the various functions concerned.

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 revenue of the City’s proprietary funds are charges to customers for sales and services. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance

Cash and Investments Cash and investments, except for small amounts of cash on hand, are deposited in pooled accounts of the City. The City invests cash surpluses in these accounts; and investment earnings, as well as gains and losses on sales of securities, are allocated to the various funds on the basis of average cash balances. Funds with deficit cash balance averages (interfund payable) are charged interest equivalent to the average investment earnings lost in financing the deficits. For purposes of the statement of cash flows, the Proprietary funds consider all unrestricted investments held in the 64

City of Eden Prairie, Minnesota Notes to Financial Statements

pooled accounts of the City to be cash equivalents because this pool is used essentially as a demand deposit account.

Investments are stated at their fair value as determined by quoted market prices, except for money market investments and participating interest-earning investment contracts that have a remaining maturity at time of purchase of one year or less which are recorded at amortized cost, provided that the fair value of those investments is not significantly affected by the impairment of the credit standing of the issuer or by other factors. Money market investments are short-term, highly liquid debt instruments including commercial paper, banker's acceptances, and U.S. Treasury and agency obligations. Investments in external investment pools that meet the criteria of GASB Statement No. 79 are valued at amortized costs. If an external investment pool does not meet the criteria established by this Statement, that pool should apply the provisions in paragraph 16 of Statement No. 31.

Interfund Receivables/Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as “due to/from other funds” (i.e., the current portion of interfund loans) 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.”

Inventories and Prepaid Items Liquor fund inventories are valued at average cost. The Fleet fund’s inventories are valued at cost.

All inventories use the first-in/first-out (FIFO) method. Inventories and prepaids of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.

Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or businesstype activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial individual cost of more than $25,000 and an estimated useful life in excess of 1 year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. Leased assets are recorded based on the measurement of payments applicable to the lease term.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized.

65

City of Eden Prairie, Minnesota Notes to Financial Statements

The City has chosen to use the modified approach for its infrastructure assets which means the following criteria will take place: • • • •

The City will preserve and maintain infrastructure assets at a condition level of 70.

The Engineering department will be in charge of determining the appropriate condition level at which these assets are to be maintained.

The City will maintain an inventory of these assets and perform a condition assessment every 3 years to establish that the condition level of 70 is being maintained.

The City will make annual estimates of the amounts that must be expended to preserve and maintain these assets at the condition level of 70.

Property, plant, and equipment, except for infrastructure, of the City are depreciated or amortized using the straight-line method over the following estimated useful lives: Buildings Land improvements Leasehold improvements Leased Assets Equipment Autos Other assets Distribution system Intangible assets

5-50 years 10-50 years 10-25 years shorter of useful life or lease term 5-30 years 5-20 years 5-30 years 25-50 years 3 years

Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has two items that qualify for reporting in this category. It is the deferred charge for pensions (see Pension section below for explanation) and the deferred charge for OPEB (see OPEB section below for explanation).

In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and will not be recognized as an inflow of resources (revenue) until that time. The City has three items that qualify for reporting in this category. It is the deferred charge for pensions (see Pension section below for explanation), the deferred charge for OPEB (see OPEB section below for explanation), and deferred lease revenue.

Unavailable revenue is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from five sources: property taxes, special assessments, loans, 66

City of Eden Prairie, Minnesota Notes to Financial Statements

state shared taxes and invoices not collected within 60 days. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.

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 the relief association and additions to/deductions from PERA’s and the relief association fiduciary net position have been determined on the same basis as they are reported by PERA and the relief association except that 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. For the governmental activities, the net pension liability will be liquidated through the General fund.

For purposes of measuring the liability, deferred outflows of resources and deferred inflows of resources, and expense associated with the City’s requirement to contribute to the Eden Prairie Firefighter Relief Association, information about the Plan’s fiduciary net position and additions to/deductions from the Eden Prairie Firefighter Relief Association Plan’s fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, benefit payments (including refunds of contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

Postemployment Benefits Other Than Pensions (OPEB) For purposes of measuring the total OPEB liability, deferred outflows/inflows of resources related to OPEB, and OPEB expense, the City recognizes benefit payments when due and payable in accordance with the benefit terms. The City’s benefit payments consist of the implicit rate subsidy, and subsidized premiums for officers injured in the line of duty. Other post-employment benefits are generally liquidated through the Health and Benefits Internal Service funds.

Compensated Absences The City compensates employees upon termination for unused paid time off (PTO). Such pay will be reflected as a liability in the government-wide financial statement and accrued as an expense as it is earned in an internal service fund.

General Property Taxes Property tax levies are set by the City Council in December 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 all levies over taxable property. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Revenues are accrued and recognized in the year collectible, net of delinquencies.

67

City of Eden Prairie, Minnesota Notes to Financial Statements

Real property taxes may be paid by taxpayers in two equal installments on May 15 and October 15. Personal property taxes may be paid on February 28 and June 30. The County provides tax settlements to taxing districts in February, June, and December.

In the governmental fund financial statements, taxes that remain unpaid at December 31 are classified as delinquent taxes receivable and are fully offset by unavailable revenue because they are not available to finance current expenditures.

Special Assessment Levies Special assessments represent the financing for public improvements paid for by the benefiting property owner. In the fund financial statements, special assessment revenue and related interest income is generally recognized in the year collected. Hennepin County acts as the billing and collection agent. Amounts collected by the County during the year that have not yet been remitted to the City are considered collections for purposes of revenue recognition.

Deferred special assessments receivable represents principal amounts due in future years. Special deferred assessments receivable includes Green Acres, disability, senior citizen owned property or other qualified hardship properties. These special assessments are deferred until such time the property loses its exempt status. While these taxes remain a valid receivable, the timing of their collection is uncertain. Interest accrues from the year of the deferment.

Delinquent special assessments receivable represents special assessments principal and interest that are past due. In the governmental fund financial statements, deferred and delinquent special assessments receivable are fully offset by deferred inflows of resources because such assessment revenue is not available currently.

Long-term Obligations In the government-wide financial statements and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the statement of net position.

Bond premiums and discounts are amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums and discounts on debt issuances are reported as other financing sources/uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

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 assets and assets that are legally or contractually required to be maintained intact.

68

City of Eden Prairie, Minnesota Notes to Financial Statements • • •

•

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. These constraints are established by Resolution of the City Council. Only the Council can remove or change the constraints placed on committed fund balances by resolution.

Assigned-consists of internally imposed constraints. These constraints reflect the specific purpose for which it is the City’s intended use. These constraints are established by the City council and/or management. Pursuant to City Council Resolution, the City Manager or Finance Manager is authorized to establish assignments of fund balance.

Unassigned-is the residual classification for the general fund and 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 they are needed. When unrestricted resources are available for use, it is the City’s policy to use resources in the following order: 1) committed 2) assigned 3) unassigned.

•

The City’s fund balance policy requires the unassigned for working capital fund balance component to equal 50% of the next year’s budgeted tax revenue. In recognition that the amount for working capital only covers operating costs for the first six months of the year, the City will maintain an unassigned fund balance component for budget stabilization which is 10% of the next year’s budget in fund balance for budget stabilization and 5% of the next year’s budget for budget balancing in the general fund. If the balance falls below 15%, a plan would be developed and implemented to replenish the fund.

Prior Period Comparative Financial Information/Reclassification The financial statements include certain prior year partial comparative information but not at the level of detail required for a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the City’s financial statements for the year ended December 31, 2021, from which the summarized information was derived. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year’s presentation.

Change in Accounting Principle For the year ended December 31, 2022, the City implemented GASB statement 87, Leases. This statement includes changes in recognition of certain leased assets and liabilities previously classified as operating leases and recognized as inflows/outflows of resources based on lease contract terms. GASB statement 87 establishes a single model for lease accounting. Leases are financings of a right to use asset. A lessee must recognize a lease liability and right to use lease asset. A lessor must recognize a lease receivable and deferred inflow of resources. The implementation of this standard resulted in an adjustment of capital assets and long-term liabilities and the reporting of a new lease receivable.

69

City of Eden Prairie, Minnesota Notes to Financial Statements

Note 2—Stewardship, Compliance and Accountability

Budgetary Information An annual budget is adopted on a basis consistent with generally accepted accounting principles for the General fund. The City does not budget for its Special Revenue funds. All annual appropriations lapse at fiscal year end.

The proposed budget is presented to the City Council for review. The Council then holds truth-intaxation meeting after which a final General Fund annual budget is legally adopted by no later than December 31.

The appropriated budget is prepared by department and division. The City’s directors and division managers may make transfers of appropriations within a division. Transfers of appropriations between departments require the approval of the City Manager. The legal level of budgetary control is the fund level. Any changes in the total budget of each fund must be approved by a majority vote of the City Council. During the year, adjustments between the original and final General fund amended budget resulted in an increase of $19,695. Following are changes made to the original budget during the year: Community Center

Fitness Equipment

$ $

19,695 19,695

General fund expenditures equal $51,329,961 or 97.5% of the annual amount budgeted of $52,664,085. All departments except Fire have spent less than 100% of the amounts budgeted.

Deficit Fund Equity The following governmental funds had deficit fund balance/net position at December 31, 2022: Major Funds: Public Improvement Construction Eden Prairie Rd Connect to Flying Cloud Non-Major Governmental Funds: Dell Road Internal Service Funds: Health and Benefits Severance

$

413,606 974,826 69,545 1,037,826 981,255

The fund balance deficits of these individual Capital Project funds will be financed by municipal state aid, special assessments and other future City planned funding as identified in the City’s Capital Improvement Plan. The fund balance deficit of the Severance Internal Service fund will be financed by user charges. The fund balance deficit of the Health and Benefits fund is due to the OPEB liability which the City will not fund since it pertains only to the Implicit Rate.

70

City of Eden Prairie, Minnesota Notes to Financial Statements Note 3—Cash and Investments

Components of Cash and Investments Cash and investments at year-end consist of the following: Investments Cash on hand Total

$

$

137,536,712 29,839 137,566,551

Cash and investments are presented in the financial statements as follows: Statement of Net Position Cash and cash equivalents Statement of Fiduciary Net Position Cash and investments

$

136,960,824

$

605,727 137,566,551

Deposits In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council, including checking accounts and certificates of deposits.

The following is considered the most significant risk associated with deposits:

Custodial Credit Risk In the case of deposits, this is the risk that in the event of a bank failure, the City’s deposits may be lost.

Minnesota Statutes require that all deposits be protected by federal deposit insurance, corporate surety bond, or collateral. The fair value of collateral pledged must equal 110% 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 obligation rate “A” or better; revenue obligations rate “AA” or better; irrevocable standard letters of credit issued by the Federal Home Loan Bank; and certificated of deposit.

Minnesota Statues 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. It is the City’s policy to limit collateral to what is authorized by Minnesota Statutes.

At year-end, the carrying amount of the City’s deposits was $0 while the balance on the bank records was $0. At December 31, 2022, all deposits were fully covered by federal depository insurance, surety bonds, or by collateral held by the City’s agent in the City’s name.

71

City of Eden Prairie, Minnesota Notes to Financial Statements

Investments As of December 31, 2022, the city had the following investments and maturities:

U.S. Agencies Municipal Bonds Commercial Paper Negotiable Certificate of Deposit Bankers Acceptance Mutual Funds Total

Investment Maturities (in Years) Less 1 to 7 Total Than 1 Year Years* $ 58,738,296 $ 14,980,809 $ 43,757,487 23,352,381 16,348,101 7,004,280 1,986,500 1,986,500 2,853,563 2,618,095 235,468 2,682,698 2,682,698 47,923,274 47,923,274 $ 137,536,712 $ 86,539,477 $ 50,997,235

* The weighted average life of mortgage-backed securities are no more than seven (7) years from the date of purchase.

US Agencies Moody's Aaa Aa1 Aa2

$

Aa3 Mig1 N/A, N/R S&P

47,253,256 $ -

Municipal Bonds

Negotiable Certificate of Deposit

5,979,096 $ 5,491,141 3,447,788

-

-

3,320,882

-

-

500,234

10,393,632

-

Bankers Acceptance $

2,853,563

-

Commercial Paper $

2,682,698

-

Mutual Funds $

1,986,500

Total -

$

47,923,274

53,232,352 5,491,141 3,447,788 3,320,882 500,234 65,839,667

A+

-

174,073

-

-

-

-

174,073

AA

-

965,690

-

-

-

-

965,690

-

-

-

-

1,245,533

AA+

1,091,408

154,125

AAAAA

58,738,296 $

1,166,130 2,153,222 23,352,381 $

$

2,853,563 $

2,682,698 $

1,986,500 $

1,166,130 2,153,222 47,923,274 $ 137,536,712

Moody’s Investors Service was used as the primary agency for the municipal bond ratings, in the case that Moody’s did not provide a rating a Standard & Poor’s was used.

Investments are subject to various risks, the following of which are considered the most significant.

Interest Rate Risk Per City policy, the City will match its investments with anticipated cash flow requirements.

Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than seven (7) years from the date of purchase or for mortgage-backed securities, the weighted average life must be no more than seven (7) years from the date of purchase. The intent to invest in securities with longer maturities will be disclosed to the City Council. Currently, the City does 72

City of Eden Prairie, Minnesota Notes to Financial Statements

not have any investments with an expected average life greater than seven years from the date of purchase.

Credit Risk It is the City’s policy to limit its investments to the following types, which are also authorized by Minnesota Statutes: • Direct obligations or obligations guaranteed by the United States or its agencies, its instrumentalities or organizations created by an act of congress, excluding mortgagebacked securities defined as high risk.

• Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described above or in general obligation tax exempt securities, or repurchase or reverse repurchase agreements.

• Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000: a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; certain Minnesota securities broker-dealers, or, a bank qualified as a depositor.

• Commercial paper issued by United States corporations or their Canadian subsidiaries, of the higher quality, and maturing in 270 days or less.

• Banker’s acceptance of U.S. banks eligible for purchase by the Federal Reserve System.

• General obligations of a state or local government.

• Money market mutual funds meeting the conditions of rule 2a-7 of the Securities and Exchange Commission. The fair value of the position in the pool is the net asset value per share provided by the pool.

Custodial Credit Risk For an investment, custodial credit risk is the risk that in the event of the failure of the counterparty, the city will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City’s investments are held in safe keeping. The City’s investment policy specifically addresses custodial credit risk by requiring investments to be held at the Federal Reserve Bank or any bank authorized under the laws of the United States.

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 policy specifically addresses the City’s desire to limit risk by avoiding over concentration in securities from a specific issuer and by setting allocation guidelines to diversify the types of securities in the portfolio. At year end, the City did hold the following investments in securities with a single issuer which exceeded 5%.

Issuer FHLMC

Percentage 5.1%

73

City of Eden Prairie, Minnesota Notes to Financial Statements

Fair Value Measurements The City uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The City follows an accounting standard that defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and requires expanded disclosures about fair value measurements. In accordance with this standard, the City has categorized its investments, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy.

The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. Financial assets and liabilities recorded on the combined statements of financial position are categorized based on the inputs to the valuation techniques as follows: • Level 1 – Financial assets and liabilities are valued using inputs that are unadjusted quoted prices in active markets accessible at the measurement date of identical financial assets and liabilities.

• Level 2 – Financial assets and liabilities are valued based on quoted prices for similar assets, or inputs that are observable, either directly or indirectly for substantially the full term through corroboration with observable market data.

• Level 3 – Financial assets and liabilities are valued using pricing inputs which are unobservable for the asset, inputs that reflect the reporting entity’s own assumptions about the assumptions market participants and would use in pricing the asset.

U.S. Agencies Municipal Bonds Negotiable Certificates of Deposit

$

$

Investments measured at amortized cost

Level 1

Level 2

42,970,826 $ 42,970,826 $

15,767,470 $ 23,352,381 2,383,041 41,502,892 $

Level 3

Total

-

$

58,738,296 23,352,381 2,383,041 84,473,718

53,062,994 $ 137,536,712

74

City of Eden Prairie, Minnesota Notes to Financial Statements Note 4—Capital Assets

Capital asset activity for the year ended December 31, 2022 was as follows: 2022 Beginning Balance

GOVERNMENTAL ACTIVITIES Capital Assets, Not Depreciated/Amortized Land Infrastructure Work in Progress Total Capital Assets, Not Depreciated/Amortized

$

22,167,497 $ 139,189,479 2,361,968 163,718,944

Change in Accounting Principle

-

Increases

$

70,979 $ 124,988 3,717,973 3,913,940

Decreases

2022 Ending Balance

Transfers

170,294 $ 63,682 233,976

$ 124,060 (670,707) (546,647)

22,068,182 139,374,845 5,409,234 166,852,261

Capital Assets, Depreciated/Amortized Buildings Land Improvements Leased Equipment Leasehold Improvements Machinery and Equipment Autos Other Assets Total Capital Assets, Depreciated/Amortized

74,229,633 24,785,771 77,318 4,616,227 13,288,376 10,560,346 127,557,671

64,501 57,579 122,080

45,900 52,395 546,577 173,133 180,390 998,395

16,870 43,325 231,887 209,254 47,662 548,998

162,062 34,169 350,416 546,647

74,212,763 24,788,346 116,896 77,318 5,150,558 13,286,424 11,043,490 128,675,795

Total Capital Assets, Cost

291,276,615

122,080

4,912,335

782,974

-

295,528,056

Less Accumulated Depreciation/Amortization for Buildings Land Improvements Leased Equipment Leasehold Improvements Machinery and Equipment Autos Other Assets Total Accumulated Depreciation/Amortization

27,046,559 12,262,286 76,562 4,103,683 8,866,099 6,612,667 58,967,856

-

2,269,016 1,139,719 19,458 293 275,302 781,125 555,345 5,040,258

16,870 43,325 231,887 199,631 47,662 539,375

-

29,298,705 13,358,680 19,458 76,855 4,147,098 9,447,593 7,120,350 63,468,739

Total Capital Assets, Depreciated/Amortized, Net

68,589,815

122,080

(4,041,863)

9,623

546,647

65,207,056

232,308,759 $

122,080 $

243,599 $

-

Governmental Activities Capital Assets, Net

$

(127,923) $

$

232,059,317

75

City of Eden Prairie, Minnesota Notes to Financial Statements 2022 Beginning Balance

BUSINESS-TYPE ACTIVITIES Capital Assets, Not Depreciated/Amortized Land Work in Progress Total Capital Assets, Not Depreciated/Amortized

$

1,065,566 $ 55,043 1,120,609

Change in Accounting Principle

-

Increases

$

Decreases

2022 Ending Balance

Transfers

$ 348,362 348,362

7,611 $ 7,611

$ (55,045) (55,045)

1,057,955 348,360 1,406,315

Capital Assets, Depreciated/Amortized Land Improvements Buildings Distribution System Leased Buildings Leasehold Improvements Machinery and Equipment Autos Other Assets Total Capital Assets, Depreciated/Amortized

434,190 59,361,370 211,215,410 702,855 6,170,782 1,064,820 1,071,425 280,020,852

1,474,097 1,474,097

349,745 349,745

1,048 1,048

55,045 55,045

434,190 59,361,370 211,619,152 1,474,097 702,855 6,170,782 1,064,820 1,071,425 281,898,691

Total Capital Assets, Cost

281,141,461

1,474,097

698,107

8,659

-

283,305,006

Less Accumulated Depreciation/Amortization for Land Improvements Buildings Distribution System Leased Buildings Leasehold Improvements Machinery and Equipment Autos Other Assets Total Accumulated Depreciation/Amortization

135,939 38,609,883 122,801,506 702,855 3,156,314 794,364 41,907 166,242,768

25,290 1,162,728 4,269,298 194,808 243,160 31,536 66,143 5,992,963

1,048 1,048

-

161,229 39,772,611 127,069,756 194,808 702,855 3,399,474 825,900 108,050 172,234,683

Total Capital Assets, Depreciated/Amortized, Net

113,778,084

1,474,097

(5,643,218)

-

55,045

109,664,008

114,898,693 $

1,474,097 $

(5,294,856) $

7,611 $

-

Business-Type Activities Capital Assets, Net

$

-

$

111,070,323

76

City of Eden Prairie, Minnesota Notes to Financial Statements

Depreciation/Amortization expense was charged to functions/programs of the City as follows: Governmental Activities Administration Community Development Police Fire Public Works Parks and Recreation Capital Assets Held by the Government's Internal Service Funds are Charged to the Various Functions Based on their Usage of the Assets Total Depreciation/Amortization Expense Business-Type Activities Water Wastewater Stormwater Liquor Total DepreciationAmortization Expense

$

$

$

$

282,370 48,338 166,386 399,990 316,087 2,814,156

1,012,931 5,040,258

2,948,104 1,663,532 1,148,498 232,829 5,992,963

Note 5—Long Term Receivables

Non-Current Lease Receivable The City, as lessor, leases certain real property to several communications companies to install cell towers, as well as tenants to operate retail businesses, provide education and day care services, and for a community solar garden under long-term, non-cancellable lease agreements. These leases expire in various future years with the latest expiration date in 2048. For the year ended 2022, the City received $110,938 in interest revenue and $622,272 in lease revenue per the terms of these contracts. In addition, the City received variable payments for common area maintenance and insurance expenses of $93,895 not included in the measurement of the lease receivable.

Notes Receivable The City has entered into note agreements with Eden Prairie residents to either improve the quality of housing and/or to increase the availability of affordable housing. These note agreements are secured by a secured lien that is placed on the property. The Rehabilitation Assistance notes have a phased repayment plan. If the loan is within 11 years of the loan date, 100% of the principal amount is due. On the 11th anniversary of the loan origination date, 90% of the loan principle is due and declines 10% a year until it is forgiven after 20 years. The Home Buyer notes are interest free and are due either when the home sells or 30 years, whichever occurs first.

77

City of Eden Prairie, Minnesota Notes to Financial Statements

The City has also entered into a note agreement with Climatech to help fund planned renovations through DEED’s Minnesota Investment Fund. The program required the City to apply for the grant on behalf of Climatech and act as a conduit between DEED and the business. If Climatech meets the job creation and wage commitments, $100,000 of the note principal will be forgiven. The remaining $270,000 will be repaid over 6 years at an interest rate of 2.0%.

The City has entered into a $500,000 TIF note agreement with the developer Elevate for site improvement costs to redevelop the vacant Ruby Tuesdays and Anchor Bank. The new six-story building will include 222 apartment units over approximately 13,000 square feet of retail and restaurants. The note will bear simple interest at the rate of 1% per annum.

The interest and principal shall be paid on the earlier of (a) the end of the term of the HUD Mortgage (40 years) or (b) a sale, refinancing or exchange of the Project by the Developer, at which time all principal plus accrued interest shall be paid in a lump sum.

Receivables as of 12/31/22 in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Project

Notes Receivable

Home Buyer Assistance Program Rehabilitation Assistance Program Climatech DEED Elevate Gross Receivables

$ 174,064 589,273 5,686 500,000 1,269,023

Less: allowance for uncollectibles

(190,834)

Net Total Notes Receivable

$ 1,078,189

Note 6—Interfund Receivables and Payables

The composition of due to/from balances as of December 31, 2022, is as follows: Capital Improvement Maintenance Public Improvement Construction Eden Prairie Rd Connect to Flying Cloud Non-Major Governmental Funds Total

Due From Due To Other Funds Other Funds $1,079,683 $ 173,802 905,881 67,041 67,041 $ 1,146,724 $ 1,146,724

The funds will be repaid as special assessment revenue, taxes, grants and other future City planned funding as identified in the City’s Capital Improvement Plan are received.

78

City of Eden Prairie, Minnesota Notes to Financial Statements

Interfund payables and receivables are representative of lending/borrowing arrangements to cover deficit cash balances.

Note 7—Interfund Transfers

The composition of interfund transfers as of December 31, 2022, is as follows: Transfers In General

Transfers Out Water Wastewater Stormwater Non-Major Governmental Funds

Capital Improvement Maintenance

General Liquor Fund Non-Major Governmental Funds

1,000,000 Positive performance 800,000 Positive performance 173,134 Assist with capital improvements

Public Improvement Construction

Capital Improvement Maintenance Water Non-Major Governmental Funds

31,308 Assist with capital improvements 25,339 Assist with capital improvements 173,591 Assist with capital improvements

Eden Prairie Road Connect

Water Wastewater Stormwater

216,250 Assist with capital improvements 324,375 Assist with capital improvements 231,274 Assist with capital improvements

General LRT

Non-Major Governmental Funds

150,610 Assist with capital improvements

Non-Major Governmental Funds

General Capital Improvement Maintenance Stormwater

20,000 Assist with Organized Athletics 400,000 Assist with capital improvements 2,300,000 Assist with capital improvements

Total of transfers

$

$

Amount 221,012 154,708 66,304 2,300

Purpose Annual budgeted transfer Annual budgeted transfer Annual budgeted transfer Assist with park program

6,290,205

Note 8—Pension Plan

Defined Benefit Pension Plans The Health & Benefits and Enterprise Funds typically liquidate the liability related to the pensions.

Plan Description The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA’s defined benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERA’s defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code.

79

City of Eden Prairie, Minnesota Notes to Financial Statements

General Employees Retirement Plan All full-time and certain part-time employees of the City of Eden Prairie are covered by the General Employees Plan. General Employees Plan members belong to the Coordinated Plan. Coordinated Plan members are covered by Social Security.

Public Employees Police and Fire Plan The Police and Fire Plan, 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 Police and Fire Plan also covers police officers and firefighters belonging to local relief associations that elected to merge with and transfer assets and administration to PERA.

Benefits Provided PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only be modified by the state Legislature. Vested, terminated employees who are entitled to benefits, but are not receiving them yet, are bound by the provisions in effect at the time they last terminated their public service.

General Employees Plan Benefits General Employees Plan benefits are based on a member’s highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for PERA's Coordinated Plan members. Members hired prior to July 1, 1989, receive the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after June 30, 1989. Under Method 1, the accrual rate for Coordinated members is 1.2 percent for each of the first 10 years of service and 1.7 percent for each additional year. Under Method 2, the accrual rate for Coordinated members is 1.7 percent for all years of service. For members hired prior to July 1, 1989 a full annuity is available when age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1, 1989, normal retirement age is the age for unreduced Social Security benefits capped at 66.

Benefit increases are provided to benefit recipients each January. The postretirement increase is equal to 50 percent of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1 percent and a maximum of 1.5 percent. Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the increase will receive the full increase. Recipients receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive a reduced prorated increase. For members retiring on January 1, 2024, or later, the increase will be delayed until normal retirement age (age 65 if hired prior to July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring under Rule of 90 are exempt from the delay to normal retirement.

Police and Fire Plan Benefits Benefits for Police and Fire Plan 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 ten years of 80

City of Eden Prairie, Minnesota Notes to Financial Statements

credited service. Benefits for Police and Fire Plan members first hired after June 30, 2014, vest on a prorated basis from 50 percent after ten years up to 100 percent after twenty years of credited service. The annuity accrual rate is 3 percent of average salary for each year of service. For Police and Fire Plan members who were first hired prior to July 1, 1989, a full annuity is available when age plus years of service equal at least 90. Benefit increases are provided to benefit recipients each January. The postretirement increase is fixed at 1 percent. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective date of the increase will receive the full increase. Recipients receiving the annuity or benefit for at least 25 months but less than 36 months as of the June 30 before the effective date of the increase will receive a reduced prorated increase.

Contributions

Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions.

Contribution rates can only be modified by the state Legislature.

General Employees Plan Contributions Coordinated Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2022 and the City was required to contribute 7.50 percent for Coordinated Plan members. The City’s contributions to the General Employees Fund for the year ended December 31, 2022, were $1,399,316. The City’s contributions were equal to the required contributions as set by state statute.

Police and Fire Fund Contributions Police and Fire Plan members were required to contribute 11.80 percent of their annual covered salary in fiscal year 2022 and the City was required to contribute 17.70 percent for Police and Fire Plan members. The City’s contributions to the Police and Fire Fund for the year ended December 31, 2022, were $1,596,141. The City’s contributions were equal to the required contributions as set by state statute.

Pension Costs

General Employees Fund Pension Costs At December 31, 2022, the City reported a liability of $19,309,040 for its proportionate share of the General Employees Fund’s net pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s contribution of $16 million. The State of Minnesota is considered a non-employer contributing entity and the state’s contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate share of the net pension liability associated with the City totaled $565,976.

The net pension liability was measured as of June 30, 2022, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The 81

City of Eden Prairie, Minnesota Notes to Financial Statements

City’s proportionate share of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2021 through June 30, 2022, relative to the total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was 0.2438 percent at the end of the measurement period and 0.2450 percent for the beginning of the period.

City's Proportionate Share of the Net Pension Liability

$

19,309,040

State of Minnesota's Proportionate Share of the Net Pension Liability Assoc iated with the City

565,976

Total

19,875,016

$

For the year ended December 31, 2022, the City recognized pension expense of $2,659,766 for its proportionate share of the General Employees Plan’s pension expense. In addition, the City recognized an additional $84,570 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the General Employees Fund.

At December 31, 2022, the City reported its proportionate share of the General Employees Plan’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflow of Resources

$ Differences Between Expected and Actual Economic Experience Changes in Actuarial Assumptions Net Collective Diffe rence Between Projected and Actual Investment Earnings Changes in Proportion Contributions Paid to PERA Subsequent to the Measureme nt Date Total $

161 ,284 4,390 ,845 293,327 162,721 699 ,658 5,707 ,835

Deferred Inflow of Resources

$

$

207,070 78 ,020 0 38 ,433 0 323 ,523

The $699,658 reported as deferred outflows of resources related to pensions resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2023. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended Dec 31: 2023 2024 2025 2026

Pension Expense Am ount $ 1,791 ,108 1,787,588 (640,255) 1,746,213 $ 4,684,654

82

City of Eden Prairie, Minnesota Notes to Financial Statements

Police and Fire Plan Pension Costs At December 31, 2022, the City reported a liability of $31,527,313 for its proportionate share of the Police and Fire Fund’s net pension liability. The net pension liability was measured as of June 30, 2022, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportionate share of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2021 through June 30, 2022, relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2022, The City’s proportionate share was 0.7260 percent at the end of the measurement period and 0.6933 percent for the beginning of the period.

The State of Minnesota contributed $18 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2022. The contribution consisted of $9 million in direct state aid that does meet the definition of a special funding situation and $9 million in supplemental state aid that does not meet the definition of a special funding situation. The $9 million direct state was paid on October 1, 2021. Thereafter, by October 1 of each year, the state will pay $9 million to the Police and Fire Fund until full funding is reached or July 1, 2048, whichever is earlier. The $9 million in supplemental state aid will continue until the fund is 90 percent funded, or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90 percent funded, whichever occurs later.

The State of Minnesota is included as a non-employer contributing entity in the Police and Fire Retirement Plan Schedule of Employer Allocations and Schedule of Pension Amounts by Employer, Current Reporting Period Only (pension allocation schedules) for the $9 million in direct state aid.

Police and Fire Plan employers need to recognize their proportionate share of the State of Minnesota’s pension expense (and grant revenue) under GASB 68 special funding situation accounting and financial reporting requirements.

For the year ended June 30, 2022, the City recognized pension expense of $2,476,862 for its proportionate share of the Police and Fire Plan’s pension expense. The City recognized $267,706 as grant revenue for its proportionate share of the State of Minnesota’s pension expense for the contribution of $9 million to the Police and Fire Fund.

The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire Pension Plan pension allocation schedules for the $9 million in supplemental state aid. The City recognized $65,339 for the year ended December 31, 2022 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on-behalf contributions to the Police and Fire Fund.

83

City of Eden Prairie, Minnesota Notes to Financial Statements

At December 31, 2022, the City reported its proportionate share of the Police and Fire Plan’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences Between Expected and Actual Economic Experience Changes in Actuarial Assumptions Net Collective Difference Between Projected and Actual Investment Earnings Changes in Proportion Contributions Pa id to PERA Subsequent to the Measurement Date Total

Deferred Outflow of Resources $ 1,901 ,348 18,300,356 813,779 211,407 798,070 $ 22,024,960

Deferred Inflow of Resources $ 190,004 344 ,136 $

534 ,140

The $798,070 reported as deferred outflows of resources related to pensions resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2023. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended Dec 31 : 2023 2024 2025 2026 2027

Pension Expense Amount $ 3,974 ,517 4,022,680 3,616,328 6,408,593 2,670,632 $ 20,692 ,750

Long-Term Expected Return on Investment The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a buildingblock 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 Equity International Equity Fixed Income Private Markets Total

Target Allocation 33.5% 16.5% 25.0% 25.0% 100%

Long-Term Expected Real Rate of Return 5.10% 5.30% 0.75% 5.90%

84

City of Eden Prairie, Minnesota Notes to Financial Statements Actuarial Methods and Assumptions

The total pension liability in the June 30, 2022, actuarial valuation was determined using an individual entry-age normal actuarial cost method. The long-term rate of return on pension plan investments used in the determination of the total liability is 6.5 percent. This assumption is based on a review of inflation and investments return assumptions from a number of national investment consulting firms. The review provided a range of return investment return rates deemed to be reasonable by the actuary. An investment return of 6.5 percent was deemed to be within that range of reasonableness for financial reporting purposes.

Inflation is assumed to be 2.25 percent for the General Employees Plan and 2.25 percent for the Police and Fire Plan. Benefit increases after retirement are assumed to be 1.25 percent for the General Employees Plan. The Police and Fire Plan benefit increase is fixed at 1 percent per year and that increase was used in the valuation.

Salary growth assumptions in the General Employees Plan range in annual increments from 10.25 percent after one year of service to 3.0 percent after 27 years of service. In the Police and Fire Plan, salary growth assumptions range from 11.75 percent after one year of service to 3.0 percent after 24 years of service.

Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality Table. Mortality rates for the Police and Fire Plan are based on the Pub-2010 Public Safety Employee Mortality tables. The tables are adjusted slightly to fit PERA’s experience.

Actuarial assumptions for the General Employees Plan are reviewed every four years. The most recent four-year experience study for the General Employees Plan was completed in 2019. The assumption changes were adopted by the Board and became effective with the July 1, 2020 actuarial valuation. The most recent four-year experience studies for the Police and Fire and the Correctional Plan were completed in 2020 were adopted by the Board and became effective with the July 1, 2021 actuarial valuation.

The following changes in actuarial assumptions and plan provisions occurred in 2022: General Employees Fund

Changes in Actuarial Assumptions: • The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021.

Changes in Plan Provisions: • There were no changes in plan provisions since the previous valuation.

85

City of Eden Prairie, Minnesota Notes to Financial Statements

Police and Fire Fund Changes in Actuarial Assumptions: • The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021.

• The single discount rate changed from 6.50% to 5.40%.

Changes in Plan Provisions: • There were no changes in plan provisions since the previous valuation.

Discount Rate The discount rate for the General Employees Plan used to measure the total pension liability in 2022 was 6.5 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 position of the General Employees Fund was 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.

In the Police and Fire Fund, the fiduciary net position was projected to be available to make all projected future benefit payments of current plan members through June 30, 2060. Beginning in fiscal year ended June 30, 2061, projected benefit payments exceed the funds' projected fiduciary net position. Benefit payments projected after were discounted at the municipal bond rate of 3.69 percent (based on the weekly rate closest to but not later than the measurement date of the Fidelity "20-Year Municipal GO AA Index"). The resulting equivalent single discount rate of 5.40 percent was determined to give approximately the same present value of projected benefits when applied to all years of projected benefits as the present value of projected benefits using 6.5 percent applied to all years of projected benefits through the point of asset depletion and 3.69 percent thereafter.

Pension Liability Sensitivity The following presents the City’s proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate:

86

City of Eden Prairie, Minnesota Notes to Financial Statements

Sensitivity Analysis (In Thousands) Net Pension Liability (Asset) at Different Oisount Rates General Employees Fund Police and Fire Fund 5.50% $ 30,499 ,641 4.40% $ 47 ,746,088 1% Lower 5.40% $ 31 ,527 ,313 6.50% $ 19,309,040 Current Discount Rate 7.50% $ 10,131 ,021 6.40% $ 18,415,405 1% Higher

Pension Plan Fiduciary Net Position Detailed information about each pension plan’s fiduciary net position is available in a separately issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www.mnpera.org.

Public Employees Defined Contribution Plan Five council members are covered by the Defined Contribution Plan, a multiple-employer deferred compensation plan administered by PERA. The Defined Contribution Plan is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal.

Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses; therefore, there is no future liability to the City. 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 five percent of salary which is matched by the elected official's employer. For salaried employees contributions must be a fixed percentage of salary. 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, PERA receives two percent of employer contributions and twenty-five hundredths of one percent (0.25 percent) of the assets in each member's account annually.

Pension expense for the year is equal to the contributions made. Total contributions made by the City during fiscal year 2022 were: Amount Employee Employer $ 3,089 $ 3,089

% of Covered Payroll Employee Employer 5.0% 5.0%

Required Rates 5.0%

Defined Benefit Pension Plans – Volunteer Fire Fighter’s Relief Association

Plan Description Firefighters of the City of Eden Prairie are members of the Eden Prairie Firefighter Relief Association. The Association is the administrator of the single-employer defined benefit pension 87

City of Eden Prairie, Minnesota Notes to Financial Statements

plan available to firefighters. The plan was established in 1968 and operates under the provisions of Minnesota Statutes Chapter 69, Chapter 424A, and the Association’s by-laws. As of December 31, 2021, membership includes 94 active participants, 104 retirees and beneficiaries currently receiving benefits, and 18 terminated employees entitled to but not yet receiving benefits. The plan issues a stand-alone financial statement.

Benefits Provided Authority for payment of pension benefits is established in Minnesota Statutes §69.77 and may be amended only by the Minnesota State Legislature. Each member who is at least 50 years of age, has separated from active service with the Eden Prairie Fire Department, has served at least 10 years of active service with such department before retirement, and has been a member of the Association in good standing for at least 10 years prior to such retirement, shall be entitled to receive a service pension based on the vested amount of service time accrued. Full vesting occurs at 10 years of service, with no provision for partial vesting. Upon retirement, an irrevocable election for one of the following two plan options must be made.

•

•

Monthly Service Pension – Each eligible member electing this plan is entitled to receive a monthly service pension calculated by multiplying $56 times each year that member has been an active firefighter in the Fire Department and member in good standing of the Relief Association, up to a maximum monthly pension of $1,792.

Lump Sum Service Pension – each eligible member electing this plan is entitled to receive a one-time lump sum service pension equivalent to the base sum amount of $12,400 multiplied by the total number of years of active service.

A member of the Association who has completed 10 or more years of active service with the Fire Department and has been an active member in the Association for at least 10 years, but has not reached age 50, shall have the right to retire from the Fire Department without forfeiting the right to a service pension. The member shall be entitled to a deferred service pension, and upon attaining the age of 50, the Association shall, upon application thereof, pay the member’s pension from the date the application is approved.

A member, who is disabled with a fire service related disability, shall be eligible to collect a disability benefit. The member shall be eligible to receive the disability benefit immediately upon approval of the Board of Trustees. The disability benefit amount shall be equal to the service pension amount in effect on the date of the disability for each year of active service. A member must apply for and meet all the requirements for disability as defined in the bylaws in order to receive such benefits. A member currently receiving a disability benefit shall receive all approved increases in the monthly service pension applicable to that member’s number of years of active firefighting service.

In the event of the death of an active or deferred member of the Association, the surviving spouse, if any, shall be paid 100% of the lump sum benefit for each year of service. If such member who 88

City of Eden Prairie, Minnesota Notes to Financial Statements

has no surviving spouse leaves a surviving child or children, such child or children as a group shall be paid 100% of the lump sum benefit for each year of active service. If such member has no spouse and no surviving children but has a designated beneficiary on file, such beneficiary shall be paid 100% of the lump sum benefit for each year of active service. If such member has no spouse, no surviving children, and no designated beneficiary, the member’s estate shall be paid 100% of the lump sum benefit. Such death benefits are payable without regard to minimum or partial vesting requirements.

If an active member dies before completing one year of active service, the Association shall pay a death benefit to his or her surviving spouse, surviving children or designated beneficiary on file in the same order and procedure as describe above of $10,000.

In the event of the death of a retired member of the Association, the surviving spouse, if any, shall be paid until death or remarriage of the surviving spouse, monthly, two-thirds of the monthly service pension for each year of active service. If such member leave a surviving child or children in the addition to a spouse, such child or children, in the aggregate, shall be paid, monthly, the sum of one-third of the monthly service pension. If such member is survived only by a child or children, such child or children, in the aggregate, shall be paid, monthly, the sum of 100% of the monthly service pension for each year of active service.

Minnesota Statutes Section 424A.10 provides for the payment of a supplemental benefit equal to

10% of a regular lump sum distribution up to a maximum of $1,000. The supplemental benefit is in lieu of state income tax exclusion for lump sum distributions and will no longer be available if state tax law is modified to exclude lump sum distributions from state income tax. The Association qualifies for these benefits.

Contributions

Minnesota Statues Chapter 424A.093 specifies minimum support rates required on an annual

basis. The significant actuarial assumptions used to compute the municipal support are the same as those used to compute the accrued pension liability. The minimum contribution from the City of Eden Prairie and state aid is determined as follows: + +

+ =

Normal Cost for the Next Year Estimated Expenses for the Most Recent Year Multiplied by a Factor of 1.035 Interest Amortization of Unfunded Auctuarial Liability as Reported in the Latest Actuarial Valuation Estimated State Aid Rece ived for the Most Recent Year Multiplied by a Factor of 1.035 Contributions by the City in Accordance with Minnesota Statues

The Plan is funded in part by fire state aid and, if necessary, City contributions. The State of Minnesota distributed to the City $542,833 in fire state aid and $4,000 of supplemental benefit paid by the City to the Relief Association for the year ended December 31, 2022. Required employer contributions are calculated annually based on statutory provisions. The City’s statutorily required contribution to the plan for the year ended December 31, 2022 was $2,320.

Pension Costs

89

City of Eden Prairie, Minnesota Notes to Financial Statements

At December 31, 2022, the City reported $5,780,395 for the Association’s net pension asset. The net pension asset was measured as of December 31, 2021, and the total pension asset used to calculate the net pension asset was determined by an actuarial valuation as of January 1, 2022.

As a result of its requirement to contribute to the Relief Association, the City recognized fire expense of ($1,357,234) for the year ended December 31, 2022. At December 31, 2022, the City reported deferred outflows of resources and deferred inflows of resources from the following sources: Deferred Outfl ow of Resources Differences Between Expected and Actual Economic Experience Changes in Actuarial Assumptions Net Difference Between Projected and Actual Earnings on Pension Plan Investments City Contributions Subsequent to the Measurement Date Total

$

Deferred Inflow of Resources 364 ,620 $ 95 ,084 2,355 ,067

$

545 ,153 545 ,153

$ 2,814,771

The City contributions to the Association subsequent to the measurement date of $545,153, reported as deferred outflows of resources, will be recognized as an addition of the net pension asset in the year ended December 31, 2023. Other amounts reported as deferred outflows and inflows of resources related to the Association’s pension will be recognized in pension expense as follows: Year Ended Dec 31: 2023 2024 2025 2026

Pension Expense Amount $ (800 ,11 6) (1 ,301,630) (525 ,781) (1 87 ,244) $ (2,814,771)

Actuarial Assumptions The actuarial total pension liability was determined as of December 31, 2021, using the following actuarial assumptions, applied to all periods included in the measurement: Valuation Date Actuarial Cost Method Amortization Method Actuarial Assumptions: Discount Rate Investment Rate of Return 20-Year Municipal Bond Yield

1/1/22 Entry Age Normal Level Dollar Closed 5.50% 5.50% 3.50%

90

City of Eden Prairie, Minnesota Notes to Financial Statements Age of Service Retirement Mortality

Later of Age 50 or 10 years of service Assumed life expectancies were based on the RP-2014 Generational mortality table projected with Improvement Scale MP-2021 Disability Rate as a percent by age: Age 20: 0.08% Age 30: 0.08% Age 40: 0.20% Age 50: 0.49% Age 55: 0.89% 25% of active disabilities are assumed to be in the line of duty or fire-service related.

Withdrawal Service 0-4 years: 7% Service 5-9 years: 5% Service 10+ years: 10% The Percent Married 85% longterm Age Difference 3 Years Form of Payment 50% Annuity (J&S if married), 50% Lump Sum expected rate of return on pension plan investments was determined using a building-block method in which best-estimates of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These asset class estimates are combined to produce the portfolio long-term expected rate of return by weighting the expected future real rates of return by weighting the expected future real rates of return by the current asset allocation percentage (or target allocation, if available) and by adding expected inflation.

Best estimates of geometric real and nominal rates of return for each major asset class included in the pension plan's asset allocation are summarized in the following table: Asset Class

Cash Fixed Income Equities Other Total Portfolio

Expected Portfolio Weight 4.0% 36.0% 50.0% 10.0% 100.0%

Long-Term Expected Nominal Rate of Return 1.8% 3.1% 7.2% 6.0% 5.5%

Discount Rate The discount rate used to measure the total pension liability was 5.5%. Assets were projected using expected benefit payments and expected asset returns. Expected benefit payments by year were discounted using the expected assets return assumption for years in which the assets were sufficient to pay all benefit payments. Any remaining benefit payments after the trust fund is exhausted are discounted at the municipal bond rate of return. The equivalent single rate is the discount rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members.

91

City of Eden Prairie, Minnesota Notes to Financial Statements

Pension Liability Sensitivity The following presents the City of Eden Prairies proportionate share of the net pension liability of the Association, calculated using the discount rate of 5.50%, as well as what the Association’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower (4.50%) or one percentage point higher (6.50%) than the current rate: Net Pension Liability (Asset) Discount Rate

$

1% Decrease (3,506,021) 4.50%

Selected Discount Rate $ (5,780,395) 5.50%

$

1% Increase (7,670,093) 6.50%

Plan’s Fiduciary Net Position Detailed information about the Plan’s fiduciary’s net position is available in a separately-issued report. That report may be obtained by writing to Eden Prairie Firefighter’s Association, 14800 Scenic Heights Rd., Eden Prairie, MN 55344 or by calling (952)949-8367.

Information about the changes in the Plan’s net pension liability (asset) is as follows:

2020

2021

Total Pension Liability Service Cost Interest Differences Between Expected and Actual Experience Changes of Assumptions Changes of Benefit Terms Benefit Payments, Including Member Conribution Refunds Net Change in Total Pension Liability

(1,993,913) $ (1,021 ,212)

$

Total Pension Liability - Beginning Total Pension Liability - Ending (a)

$21,486,867 $20,465,655

$20,984,545 $21,486,867

$

34,587 516,566 2,293,858 (1,993,913) (21 ,360)

$

$

829,738

$ 2,449,506

Fiduciary Net Position - Beginning Fiduciary Net Position - Ending (b)

$25,416,312 $26,246,050

$22,966,806 $25,416,312

Association's Net Pension Liability/(Asset) - Ending (a) - (b)

$ (5,780,395)

$ (3,929,445)

Plan Fiduciary Net Position Municipal Contributions State Contributions Net Investment Income Benefit Payments Administrative Expenses Other Changes Net Change in Fiduciary Net Position

$

507,405 1,154,852 (546,930) (142,626)

$

495,029 1,149,953

(1,142,660) 502,322

184,172 494,923 2,942,302 (1,142,660) (29,231 )

92

City of Eden Prairie, Minnesota Notes to Financial Statements General Employees Plan

Pension Expense Net Pension Asset Net Pension Liability Deferred Outflows Deferred Inflows

$

2,659,766

$

19,309,040 5,707,835 323,523

Police and Fire $

2,476,862

$

31 ,527,313 22 ,024,960 534,140

Fire Relief $

$

(807,081) 5,780,395 545,153 2,814,771

Total $

$

4 ,329,547 5,780,395 50 ,836,353 28 ,277,948 3,672,434

Note 9—Other Post-Employment Benefits Plan

Plan Description The City's single-employer defined benefit OPEB plan provides OPEB for all permanent full-time employees of the City. The City’s OPEB Plan is administered by the City. The City does not administer a trust and therefore does not issue a separate report.

Benefits Provided 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 secondary benefit known as an “implicit rate subsidy.” This benefit relates to the assumption that the retiree is receiving a more favorable premium rate than they would otherwise be able to obtain if purchasing insurance on their own, due to being included in the same pool with the City’s younger and statistically healthier active employees.

Employees Covered by Benefit Terms At January 1, 2022, membership included 18 retirees and others currently receiving benefits, 5 spouses receiving payments and 273 active plan members.

Contributions All post-employment benefits are based on contractual agreements with employee groups. These contractual agreements do not include any specific contribution or funding requirements.

Total OPEB Liability The City's total OPEB liability was measured as of January 1, 2022, and was determined by an actuarial valuation as of that date. The Health & Benefits and Enterprise Funds typically liquidate the liability related to OPEB. 93

City of Eden Prairie, Minnesota Notes to Financial Statements

Actuarial Assumptions The total OPEB liability in the January 1, 2022, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Inflation Salary Increases Healthcare cost trend rates

2.0% Service graded table 6.5% as of January 1, 2022 grading to 5.00% over 5 years and then to 4.00% over the next 48 years

Mortality rates were based on the Pub-2010 Public Retirement Plans Headcount-Weighted Mortality Tables (General, Safety) with MP-2021 Generational Improvement Scale.

Discount Rate The discount rate used to measure the total OPEB liability was 2.0%. Since the plan is not funded by a trust, the discount rate is equal to the 20-year Municipal Bond Yield.

Changes in the Total OPEB Liability

Total OPEB Liability $

Balances at 12/31/2021 Changes for the Year: Service Cost Interest Changes of Assumptions Plan Changes Difference between Expected and Actual Benefit Payments

3,131 ,833

162,530 64,120 (392,033) 18,823 704,273 (177,557)

Net Changes

380,156

Balances at 12/31/2022

$

3,511 ,989

Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is 1% point lower (1.0%) or 1% point higher (3.0%) than the current discount rate: Total OPEB Liability

1% Decrease (1 .0)% $ 3,848,986

Discount Rate (2.0)% $ 3,511 ,989

1% Increase (3.0)% $3,213,622

94

City of Eden Prairie, Minnesota Notes to Financial Statements

Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1% point lower (5.5% decreasing to 4%) or 1% point higher (7.5% decreasing to 6%) than the current healthcare cost trend rates:

Total OPEB Liability

1% Decrease (5.5% decreasing to 4%)

Healthca re Cost Trend Rates (6.5% decreasing to 5%)

1% Increase (7.5% decreasing to 6%)

$ 3,141 ,096

$ 3,511 ,989

$ 3,951,367

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2022, the City recognized OPEB expense of $285,322. At December 31, 2022, the City reported deferred outflows and inflows of resources related to OPEB from the following sources: Contributions Subseq uent to the Measurement Date Difference Between Expected and Actual Change in Assumptions Total

Deferred Outflows of Resources $ 189,099 616,238 2 13,614 $ 1,018,951

Deferred Inflows of Resources

$

130,864 389,284 $ 520 ,148

The City’s contributions subsequent to the measurement date of $189,099, reported as deferred outflows of resources, will be recognized as a reduction of the total OPEB liability in the City’s fiscal year ended December 31, 2023. Other amounts reported as deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended December 31: 2023 2024 2025 2026 2027 Thereafter

OPES Expense $ 39,849 39,849 39,849 39,849 51,408 98,900 $ 309,704

95

City of Eden Prairie, Minnesota Notes to Financial Statements Note 10—Long Term Debt

Bonds The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both governmental and business-type activities. General obligation bonds are direct obligations and pledge the full faith and credit of the City.

The City also issues assessment debt with governmental commitment to provide funds for the construction of streets and utilities. These bonds will be repaid from amounts levied against the property owners benefited by this construction. In the event that a deficiency exists because of unpaid or delinquent assessments at the time a debt service payment is due, the City must provide resources to cover the deficiency until other resources are received. Assessment debt with governmental commitment has been issued for governmental activities.

The City also issues tax abatement bonds. These bonds and interest thereon are payable from abatements collected from certain property in the City. If abatement revenues are insufficient to meet principal and interest due, the City is required to levy ad valorem taxes without limit as to rate or amount on all taxable property in the City to make up the deficiency.

96

City of Eden Prairie, Minnesota Notes to Financial Statements

Bonds currently outstanding (in thousands of dollars) are as follows: Issue Date Governmental Activity Long-term Liabilities General Obligation Bonds G.O. Refunding Bonds 2020A Assess Debt With Govt Commit G.O. Bonds of 2016A G.O. Refunding Bonds 2020A Tax Abatement Bonds G.O. Tax Abatement Bonds 2021A Total Governmental Activity

10/28/20

Interest Rates

0.85% $

Original Issue

Maturities

2022 Due Amount Within Outstanding One Year

6,081

2025

$

12/29/16 2.30-3.00% 10/28/20 0.85%

2,360 1,336

2032 2025

1,275 812

230 268

12/08/21 2.00-4.00%

11,940

2035

11,940 17,700

755 2,471

Unamortized Bond Premiums Other Long-term Liabilities Finance Purchases Turn out gear Tasers Total Finance Purchases Lease Liability Compensated Absences Total Long-term Liabilities Business Type Activitiy Long-term Liabilities G.O. Bonds of 2016A G.O. Water Bonds 2019A G.O. Water Bonds 2021A Total Business Type Activity

1,218

1,252

01/12/22 01/01/20

2.32% 3.25%

381 95

2027 2024

$

12/29/16 2.30-3.00% 12/05/19 2.00-3.00% 12/08/21 2.00-4.00%

1,580 4,920 5,420 11,920

2027 2039 2037

381 37 418 99 2,377 21,846 $

850 4,345 5,420 10,615

73 19 92 23 1,145 3,731

160 205 255 620

657

Unamortized Bond Premiums Other Long-term Liabilities Finance Purchases Lease Liability Compensated Absences Total Long-term Liabilities

3,673 $

$

1,314 381 12,967 $

163 183 966

97

City of Eden Prairie, Minnesota Notes to Financial Statements

Annual debt service requirements to maturity for governmental and business-type activity bonds (in thousands of dollars) are as follows:

Years G.O.Bonds Ending 12/31 Principal Interest 2023 $ 1,218 $ 31 2024 1,216 21 2025 1,239 11 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Total $ 3,673 $ 63

Governmental Assessment Debt with Govt Commitment Improv Bonds Tax Abatement Bonds Principal Interest Principal Interest $ 498 $ 38 $ 755 $ 378 498 29 830 347 376 22 720 316 105 17 755 286 105 14 775 256 105 12 800 224 1,135 185 100 9 100 7 955 144 100 4 995 110 100 1 1,025 79 1,050 53 1,060 32 1,085 11 $ 2,087 $ 153 $ 11,940 $ 2,421

98

City of Eden Prairie, Minnesota Notes to Financial Statements

Years Governmental Finance Purchases Lease Liability Ending 12/31 Principal Interest Principal Interest 2023 $ 92 $ 10 $ 23 $ 3 2024 92 8 24 2 2025 76 5 24 1 2026 78 4 23 1 2027 80 2 5 1 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 Total $ 418 $ 29 $ 99 $ 8

Business Type Lease Liability Revenue Bonds Principal Interest Principal Interest $ 163 $ 40 $ 620 $ 294 180 35 665 272 188 29 685 249 206 22 710 226 216 15 735 202 207 8 575 180 122 3 595 159 32 1 615 137 640 117 660 100 675 84 685 70 700 56 715 41 735 26 300 15 305 7 $ 1,314 $ 153 $ 10,615 $ 2,235

Finance Purchases From Direct Borrowing In January 2022, the City entered into a financing agreement for the purchase of turn out gear for the Fire department. Payment terms have an interest rate of 2.32% and mature in January 2027.

Upon payment in full of the scheduled debt payments, the lessor’s interest in the equipment is transferred to the City, free and clear of any right or interest of the lessor. The General Fund will be used to liquidate this liability.

In 2020, the City entered into a financing agreement for the purchase of tasers for the Police department. Payment terms have an interest rate of 3.25% and mature in 2025. Upon payment in full of the scheduled debt payments, the lessor’s interest in the equipment is transferred to the City, free and clear of any right or interest of the lessor. The General Fund will be used to liquidate this liability.

Lease Liabilities The City, as lessee, entered into long-term, non-cancellable lease agreements for copy machines and building space for its municipal liquor stores. The copy machine leases are a five-year term with the latest expiration in 2027. The liquor building leases are a ten-year term with the latest expiration in 2030. The interest and discount rate for leases ranges from 3.25% to 3.5%. Variable payments of $204,823 were made during 2022 for copy machine maintenance and common area maintenance at municipal liquor stores. These variable payments are not included in the lease liability.

99

City of Eden Prairie, Minnesota Notes to Financial Statements

The total of the City’s leased assets and accumulated amortization are $1,590,993 and $214,266, respectively, and may be found in Note 4.

Changes in Long Term Debt Long-term debt activity for the year ended December 31, 2022, (in thousands of dollars) was as follows: Change in Beginning Accounting Ending Balance Principle Additions Reductions Balance

Governmental Activity G.O. Bonds $ 4,891 $ Assess. Debt With Govt Commit Improvement Bonds 2,575 Tax Abatement Bonds 26,030 Issuance Premium/Discount 1,655 Total Bonds 35,151 Lease Liability Compensated Absences 2,393 Finance Purchases Total $ 37,544 $ Business Type Activity Revenue Bonds Issuance Premium/Discount Total Bonds Lease Liability Compensated Absences Total

$ 10,965 $ 710 11,675 397 $ 12,072 $

-

$

65 57 122 $

$ 1,474 1,474 $

-

$

1,218 $

488 14,090 403 16,199 52 18 2,111 2,127 380 19 2,543 $ 18,363

$ 360 360 $

350 53 403 160 376 939

3,673

$ 2,087 $ 11,940 $ 1,252 18,952 $ 99 $ 2,377 $ 418 $ 21,846

$ 10,615 $ 657 11,272 $ 1,314 $ 381 $ 12,967

* The remeasurement adjustment was for new lease standard requirements in the current year.

For the governmental activities, the finance purchases payable are generally paid with unassigned fund balances within the General fund.

There are a number of limitations and restrictions contained in the various bond indentures. The City is in compliance with all significant limitations and restrictions. Call provisions are applicable to certain general obligation and special assessment bond issues.

On December 8, 2021, the City issued $17,360,000 of G.O. Water Revenue and Refunding Bonds, Series 2021A. The bonds bear interest at a rate of 2%-4%, and with a maturity in 2035 and 2037.

Of the proceeds, $5,420,000 will be used for the meter change out program and $11,940,000 provided refunding for the G.O. Tax Abatement Bonds 2014A. The 2014A bonds will be refunded in 2022. Future debt service payments will be reduced by $1,937,268 with a net present value benefit of $1,775,629.

100

City of Eden Prairie, Minnesota Notes to Financial Statements

Refunding Issue to be Refunded Date 2014A G.O.Tax Abatement Bonds 1/15/2022

Principal to be Refunded $ 13,165,000

Note 11—Risk Financing and Related Insurance Issues

The City is exposed to various risk of loss related to torts; thefts of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. In order to protect against these risks of loss, the City purchases commercial insurance through the League of Minnesota Cities Insurance Trust, a public entity risk pool, for property insurance and workers compensation. This pool currently operates as a common risk management and insurance program for municipal entities. The City pays an annual premium to the League for its insurance coverage. The League of Minnesota Cities Insurance Trust is self-sustaining through commercial companies for excess claims. The City is covered through the pool for any claims incurred but unreported, however, retains risk for the deductible portion of its insurance policies. The amount of these deductibles is considered immaterial to the financial statements.

During the year ended December 31, 2022, there were no significant reductions in insurance coverage from the prior year. Settled claims have not exceeded the City’s commercial coverage in any of the past three years.

Note 12—Contingencies

The City has been named in various legal actions. At the present time, there is no significant litigation pending that would cause a material effect on the financial statements if unfavorable rulings would result. While it is not possible to provide any probability of success or estimate of potential loss in defending any of these legal actions, the City expects to contest the allegations vigorously and does not believe these actions will have a material effect on the financial statements.

A potential claim may be asserted against the City arising out of its membership in the Western Area Firing Training Academy (WAFTA). WAFTA is a joint powers entity consisting of 11 member cities that was formed in 1974 to purchase property to be used and operated as a fire training facility. In the late 1980’s, WAFTA became aware that the site was contaminated. Since that time, WAFTA has been working with the Minnesota Pollution Control Agency (MPCA) and other responsible parties to address the contamination issues on the site. At this time, there is not an estimated dollar amount of the cost to remediate the site nor has a claim been asserted against WAFTA or the City.

Note 13—Contract Commitments

At December 31, 2022, the City had commitments on various capital projects. These commitments totaled approximately $14,765,409. The breakdown by fund is shown below.

101

City of Eden Prairie, Minnesota Notes to Financial Statements

Fund General Public Improvement Construction Capital Improvement Maintenance Shady Oak Rd North Other Governmental Water Wastewater Stormwater Internal Service

Total $

166,492

60,305 3,263,403 308,906 940,533 3,131,239 23,348 314,328 6,556,855 $ 14,765,409

Note 14—Conduit Debt Obligations

To further economic development in the City, the City has issued bonds that provide capital financing to private-sector entities for the acquisition and construction of industrial and residential facilities. The properties financed are pledged as collateral, and the bonds are payable solely from payments received from the private-sector entities on the underlying mortgage or promissory notes. In addition, no commitments beyond the collateral, the payments from the private-sector entities, and maintenance of the tax-exempt status of the conduit debt obligation were extended by the City for any of those bonds. At December 31, 2022 the bonds have an aggregate outstanding principal amount payable of $19,640,000.

Note 15—Tax Abatements

The City enters into property tax abatement agreements through the use of tax increment financing districts with local businesses under various Minnesota Statutes. Under these statutes the City annually abates taxes collected above the districts’ base tax capacity which is established during adoption of the tax increment district. These agreements are established to foster economic development and redevelopment through creating jobs, removing blight and providing affordable housing. The City uses Minnesota Statutes 469.001 to 469.047 and 469.174 to 469.179 (The Tax Increment Act) to create these districts.

For the fiscal year ended December 31, 2022, the City has one agreement established under Minnesota Statute 469.001 to 469.047 which resulted in property taxes totaling $270,358 being abated. The agreement is a pay as you go note to convert substandard property into an office and retail complex.

For the fiscal year ended December 31, 2022, the City has six agreements established under Minnesota Statute 469.174 to 469.179 (The Tax Increment Act) which resulted in property taxes totaling $2,088,217 being abated. The following agreements each exceeded 10 percent of the total amount abated, during the year: 102

City of Eden Prairie, Minnesota Notes to Financial Statements •

•

•

•

A pay as you go note to finance the cost of a senior rental housing project that provides housing in part for persons or families with low to moderate income. The abatement amount was $645,999.

A pay as you go note to finance the cost of a rental apartment project that provides housing in part for persons or families with low to moderate income. The abatement amount was $397,580.

A pay as you go note to finance the cost of a senior rental housing project that provides housing in part for persons or families with low to moderate income. The abatement amount was $251,110.

A pay as you go note to finance the cost of a rental housing project that provides housing in part for persons or families with low to moderate income. The abatement amount was $689,413.

Note 16—Fund Balance Classification

At December 31, 2022, a summary of the governmental fund balance classifications are as follows: General Nonspendable: Prepaid Items Cemetery Perpetual Care Total Nonspendable Restricted for: Debt Service Special Assessments Park Dedication Fees Franchise Fee Grants Cemetary Police Recycling Historical and Cultural Tax Increment

Assigned to: Capital Projects Improvement Projects Total Assigned Unassigned: Total Fund Balance

$

General Public Obligation Improvement Tax Abatement Bonds 2014A/20A Construction

180,596 $ 180,596

-

-

-

$

1,135,424 1,135,424

-

-

-

-

33,252,089

-

(413,606)

$ 33,432,685 $

1,135,424 $

Capital Improvement Maintenance $

Shady Oak Eden Prairie Rd Road Connect to North Flying Cloud

80,525 $ 192,139 272,664

286,769 192,139 478,908

-

-

661,745 661,745

-

1,720,991 7,126 4,702,967 1,036,475 1,726,973 234,182 203,587 49,215 35,262 3,592,224 13,309,002

2,856,415 668,871 4,702,967 1,036,475 1,726,973 234,182 203,587 49,215 35,262 3,592,224 15,106,171

-

-

5,759,208 6,276,874 12,036,082

30,440,874 6,276,874 36,717,748

-

(974,826)

(69,675)

31,793,982

-

(413,606) $ 24,707,314 $ 661,745 $

-

Total

25,648 $ 25,648

24,681,666 24,681,666

$

Other Govt Funds

$

(974,826) $ 25,548,073 $ 84,096,809

Note 17—New Standards Issued But Not Yet Implemented

GASB Statement No. 96, Subscription-based information technology arrangements (SBITAs) states a government is required to recognize a subscription liability and a right-to-use subscription asset when a contract conveys control of the right to use another party’s information technology software, alone or in combination with tangible capital assets. This statement will be effective for the year ending December 31, 2023.

103

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104

REQUIRED SUPPLEMENTARY INFORMATION

105

City of Eden Prairie, Minnesota Required Supplemental Information Modified Approach for Infrastructure Assets Condition Rating of the City’s Street System:

2022 2019 2016 2013 2010 2007

Average PCI 85.3% 84.4% 76.9% 79.7% 81.1% 82.3%

Comparison of Needed-to-Actual Maintenance/Preservation:

2022 2021 2020 2019 2018 Budget $ 5,050,500 $ 3,735,500 $ 2,949,500 $ 2,954,500 $ 3,372,500 Actual 6,008,581 3,562,681 4,154,944 3,154,439 2,700,544 Difference $ 958,081 $ (172,819) $ 1,205,444 $ 199,939 $ (671,956)

The condition of road pavement is measured using Good Pointe’s Icon pavement management system. Pavements in the City of Eden Prairie are visually inspected using the Paver-based Pavement Condition Index (PCI) methodology. The methodology is based on a numeric rating system ranging from 100 for a newly surfaced pavement to 0 for a failed pavement. The condition index is used to classify roads in excellent condition (85-100), very good condition (70-84), good condition (55-69), fair condition (40-54), poor condition (25-39), very poor condition (10-24) and failed condition (0-9). It is the City’s policy to maintain an average PCI of 70 percent.

106

City of Eden Prairie, Minnesota Required Supplemental Information

Schedule of Changes in the City’s Total OPEB Liability and Related Ratios January 1, 2022 Total OPEB Liability Service Cost $ Interest Changes in Plan Difference Between Expected and Actual Experience Changes of Assumptions Benefit Payments Net Change in Total OPEB Li ability Tota l OPEB Liability - Beginning Tota l OPEB Liability - Ending $

162,530 64 ,120 18,823 704 ,273 (392 ,033) (177 ,557) 380,156 3,131 ,833 3,511 ,989

Total OPEB Liability

$

Covered Employee Payroll

$

City's Total OPEB Liability as a Percentage of the Covered Employee Payroll

January 1, 2021 $

192,408 85,767

$

160,108 109,426

$

(209 ,383) 141 ,690 (156,962) 44 ,879 2,797,269 2,842 ,148

3,131,833

$

23,66 1,024

$

$

166,748 ( 155,238) 289,685 2,842,148 3,131 ,833

3,511 ,989

$

24 ,148,594

$

14.54%

Measurement Date January 1, 2020 January 1, 2019

13.24%

$

135,75 1 94,001 7,200

January 1, 2018 $

143 ,922 91,272

$

(92,512) ( 118,903) 25,537 2,77 1,732 2,797,269

$

(169,360) 65,834 2,705,898 2,77 1,732

2,842 ,148

$

2,797,269

$

2,77 1,732

22,916,246

$

22 ,281 ,528

$

21,632,551

12.40%

12.55%

12.81%

Less than ten years is presented due to information not available. Will add additional years as they become available. No assets are accumulated in a trust to pay related benefits.

107

City of Eden Prairie, M innesota Required Supplemental I nformation Schedule of Proportionate Share of Net Pension Liability Public Employees General Employees Retirement Fund Last Ten Years*

Employer's Proportionate Share of the Net State's Proportionate Pension Liability Share (Amount) and the State's Employer's Proportionate Proportionate of the Net Employer's Share of the Net Pension Proportion Share (Amount) Pension Liability Liability (Percentage) of the of the Net Net Pension Liability Pension Liability Associated with Associated with Fiscal Year (Asset) (a) the City (b) the City (a+b) Ending (Asset) June 30, 2015 0.2525% $ 13,085,860 $ $ 13,085,860 June 30, 2016 0.2482% 20,152,608 263,262 20,415,870 June 30, 2017 0.2536% 16,189,657 203,595 16,393,252 June 30, 2018 0.2419% 13,419,620 440,302 13,859,922 June 30, 2019 0.2365% 13,075,555 406,316 13,481,871 June 30, 2020 0.2422% 14,520,997 447,832 14,968,829 June 30, 2021 0.2450% 10,462,598 319,529 10,782,127 June 30, 2022 0.2438% 19,309,040 565,976 19,875,016

Employer's Covered Payroll** (c) $ 14,836,066 15,161,268 16,339,119 16,251,609 16,728,911 17,272,920 17,641,013 18,207,196

Employer's Proportionate Share of the Net Pension Plan Fiduciary Liability (Asset) as a Net Position as a Percentage of its Percentage of Covered Payroll the Total (a/c) Pension Liability 88.20% 78.2% 132.92% 68.9% 99.09% 75.9% 82.57% 79.5% 78.16% 80.2% 84.07% 79.1% 59.31% 87.0% 109.16% 76.7%

* This schedule is provided prospectively beginning with the fiscal year ended December 31, 2015. **For purposes of this schedule, covered payroll is defined as "pensionable wages."

108

City of Eden Prairie, M innesota Required Supplemental I nformation Schedule of Proportionate Share of Net Pension Liability Public Employees Police and Fire Fund Last Ten Years*

City's Proportionate Share of the Net State Pension Liability Employer's Proportionate and the State's Employer's Proportionate Share (Amount) Proportionate Share (Amount) Share of the Net Employer's Proportion of the Net of the Net Pension Liability Pension Liability Covered (Percentage) of the Fiscal Year Payroll** Net Pension Liability Pension Liability Associated with Associated with Ending the City the City (Asset) (Asset) (a) (b) June 30, 2015 0.7770% $ 8,828,538 N/A $ 8,828,538 $ 7,116,963 June 30, 2016 0.7580% 30,419,859 N/A 30,419,859 7,302,618 June 30, 2017 0.7510% 10,139,393 N/A 10,139,393 7,706,718 June 30, 2018 0.7296% 7,776,785 N/A 7,776,785 7,689,360 June 30, 2019 0.7299% 7,770,523 N/A 7,770,523 7,702,165 June 30, 2020 0.7225% 9,458,299 224,377 9,682,676 8,151,644 June 30, 2021 0.6933% 5,289,145 240,567 5,529,712 8,193,333 June 30, 2022 0.7260% 31,527,313 1,380,114 32,907,427 8,838,760

Employer's Proportionate Share Plan Fiduciary of the Net Pension Liability (Asset) as a Net Position as a Percentage of Percentage of its the Total Covered Payroll (a/b) Pension Liability 124.05% 86.6% 416.56% 63.9% 131.57% 85.4% 101.14% 88.8% 100.89% 89.3% 116.03% 87.2% 64.55% 93.7% 356.69% 70.5%

* This schedule is provided prospectively beginning with the fiscal year ended December 31, 2015. **For purposes of this schedule, covered payroll is defined as "pensionable wages."

109

City of Eden Prairie, Minnesota Required Supplemental Information

Schedule of Proportionate Share of Net Pension Liability Eden Prairie Fire Relief Last Ten Years* 2021

T o!al Pension Liabili1, Service Cost Interest Differences Between Expected and Actual Experience Changes of Assumption Changes of Benefit Terms Benefit P a~ments, Including Member Contribution Refunds Ne! Change in T o!al Pension Liabili1,

(1,142,660) 502,322

(2,326,728) (775,179)

21,486,867 20,465,655

20,884,545 21,486,867

21,759,724 20,984,545

21,008,095 21,759,724

34,587 516,566 2,293,878 (1,883,813) (21,360)

184,172 484,923 2,942,302 (1,142,660) (29,231)

829,758

2,449,506

208,316 476,219 3,828,516 (2,326,728) (29,062) 680 2,158,941

523,283 457,741 (1,274,855) (1,448,720) (30,772) 254 (1,774.0S9)

Fiduciar9 Ne! Posilion - Beginning Fiduciar9 Ne! Posilion - Ending (bl

25,416,312 26,246,o?O

22,966,806 25,416,312

20,807,865 22,866,806

22,581,934 20,807,865

Associalion·s Ne! Pension Liabili1,f(Assel) Ending (a) - (b)

$ (5,780,415)

$(3,929,445)

$ [1,982,261)

$

Fiduciar, Ne! Posilion as a Percenlage of !he To!al Pension Liabili1, (b) I (a)

128.241/.

118.291/.

109.451/.

85.631/.

Covered Pa1roll Ne! Pension Liabili11f(Assel) as a Percenlage of Covered Pa1roll

NIA NIA

NIA NIA

NIA NIA

NIA NIA

2017

2016

2015

2014

To!al Pension Liabili19 - Beginning To!al Pension Liabili19 - Ending (al Plan Fiduciar, Ne! Posi!ion Municipal Contributions State Contributions Net Investment Income Benefit Payments Administrative Expenses Other Chan es Ne! Change in Fiduciar, Ne! Posilion

T o!al Pension Liabili1, Service Cost Interest Differences Between Expected and Actual Experience Changes of Assumption Changes of Benefit Terms Benefit P a~ments, Including Member Contribution Refunds Ne! Change in T o!al Pension Liabilil!

$

485,861 1,123,468

$

434,587 1,151,849 (233,976) 935,047

$

$

485,127 1,158,236 (27,803) (65,011)

2018

(1,883,813) (1,021,212)

$

485,028 1,148,953

2019

488,110 1,147,434 (28,793) 246,754 338,844 (1,448,720) 751,628

$

507,405 1,154,852 (546,830) (142,626)

2020

448,426 1,104,701

$

$

951,859

413,646 1,083,202

(1.084.111) 525,318

(1.135.264) 1,152,243

(1.270,544) 283,583

(1.027.216) 468,632

T o!al Pension Liabili19 - Beginning To!al Pension Liabili19 - Ending (al

20,482,777 21,008,095

19,330,534 20,482,777

19,046,951 18,330,534

18,577,319 18,o46,851

Plan Fiduciar, Ne! Posilion Municipal Contributions State Contributions Net Investment Income Benefit Payments Administrative E,penses Other Changes Ne! Change in Fiduciar, Ne! Posilion

387,665 448,846 2,776,128 (1.0S4,111) (34,700) 671 2,484,498

388,664 448,848 882,o80 (1,137,136) (56,576) 4,426 540,316

398,385 437,948 (383,362) (1,270,544) (26,323) (853,886)

488,073 414,343 646,363 (1,027,216) (37,158) 81,893 566,298

Fiduciar9 Ne! Posilion - Beginning Fiduciar9 Ne! Posilion - Ending (bl

20,087,435 22,581.834

18,547,118 20,087,435

20,401,005 19,547.119

18,834,707 20,401.005

Associalion"s Ne! Pension Liabili11f(Assel) Ending (a) - (b)

$ (1,573,838)

$

(216,585)

$ (1,354,054)

101.121/.

107.111/.

385,342

Fiduciar, Ne! Posilion as a Percenlage of !he To!al Pension Liabilil! (b) I (a)

107.481/.

88.071/.

Covered Pa1roll Ne! Pension Liabili11f(Assel) as a Percenlage of Covered Pa1roll

NIA NIA

NIA NIA

$

NIA NIA

NIA NIA

* This schedule is provided prospectively beginning with the fiscal year ended December 31, 2014.

110

City of Eden Prairie, M innesota Required Supplemental I nformation Schedule of Contributions Public EmployeesGeneral EmployeesRetirement Fund Last Ten Years*

Year Ending December 31, 2015 December 31, 2016 December 31, 2017 December 31, 2018 December 31, 2019 December 31, 2020 December 31, 2021 December 31, 2022

Statutorily Required Contributions (a) $ 1,164,110 1,157,735 1,199,292 1,231,656 1,286,909 1,290,562 1,345,713 1,399,316

Contributions in Relation to the Statutorily Required Contributions (b) $ 1,164,110 1,157,735 1,199,292 1,231,656 1,286,909 1,290,562 1,345,713 1,399,316

Contribution Contributions as Deficiency a Percentage of (Excess) Covered Payroll** Covered Payroll (d) (b/d) (a-b) $ $ 15,528,311 7.50% 15,436,692 7.50% 15,990,664 7.50% 16,470,531 7.48% 17,163,209 7.50% 17,207,493 7.50% 17,940,189 7.50% 18,672,879 7.49%

* This schedule is provided prospectively beginning with the fiscal year ended December 31, 2015. **For purposes of this schedule, covered payroll is defined as "pensionable wages."

111

City of Eden Prairie, M innesota Required Supplemental I nformation Schedule of Contributions Public Employees Police and Fire Fund Last Ten Years*

Year Ending December 31, 2015 December 31, 2016 December 31, 2017 December 31, 2018 December 31, 2019 December 31, 2020 December 31, 2021 December 31, 2022

Statutorily Required Contributions (a) $ 1,215,450 1,188,923 1,224,005 1,260,639 1,342,840 1,464,610 1,543,612 1,596,141

Contributions in Relation to the Statutorily Required Contributions (b) $ 1,215,450 1,188,923 1,224,005 1,260,639 1,342,840 1,464,610 1,543,612 1,596,141

Contribution Deficiency (Excess) (a-b) $ -

Contributions as a Percentage of Covered Covered Payroll Payroll** (d) (b/d) $ 7,509,128 16.2% 7,339,334 16.2% 7,555,723 16.2% 7,780,987 16.2% 7,922,043 16.95% 8,264,270 17.72% 8,720,972 17.70% 9,012,516 17.71%

* This schedule is provided prospectively beginning with the fiscal year ended December 31, 2015. **For purposes of this schedule, covered payroll is defined as "pensionable wages."

112

City of Eden Prairie, Minnesota Required Supplemental Information Schedule of Contributions Eden Prairie Fire Relief Last Ten Years

Statutorily Required Contribution Contributions in Relation to Statutorily Required Contribution

$

2,320 $ (2,320)

Contribution Deficiency (Excess)

$

$

Statutorily Required Contribution Contributions in Relation to Statutorily Required Contribution Contribution Deficiency (Excess)

$

2021

2020

2019

2018

68,174 (68,174)

184,172 (184 ,172)

203,986 (203,986)

517,955 (517,955)

$

$

$

2017

2016

2015

2014

201 3

382 ,336 $ (382,336)

388,664 $ (388,664)

488,073 $ (488,073)

582,972 (582,972)

$

$

398,395 $ (393,065) 5,330 $

$

113

City of Eden Prairie, Minnesota Notes to Required Supplemental Information

Notes to Schedules of Changes in Net Pension Liabilities and Related Ratios

Other Post-Employment Benefits Plan

The City has no assets accumulated in a trust that meets the criteria in GASB 75.

2022 Changes

Changes in Plan Provisions: • There was a liability loss of $600,259 due to updated census data.

• There was a liability loss of $104,014 due to claims and premiums higher than expected.

• Per a special agreement, one retiree is receiving City paid medical and dental premiums until December 2023 or until they are eligible another employer’s health insurance coverage, whichever comes first. This change increased the liability $18,823.

Changes in Actuarial Assumptions: • The health care trend rates were changed to better anticipate short term and long term medical increases.

• The mortality tables were updated from the Pub-2010 Public Retirement Plans HeadcountWeighted Mortality Tables (General, Safety) with MP-2019 Generational Improvement Scale to the Pub-2010 Public Retirement Plans Headcount-Weighted Mortality Tables (General, Safety) with MP-2021 Generational Improvement Scale.

• The salary increase rates were updated to reflect the latest experience study.

• The retirement and withdrawal rates were updated to reflect the latest experience study.

• The inflation rate was changed from 2.50% to 2.00%.

• The subsidized benefit for one officer injured in the line of duty, who is age 60 as of the valuation date, is expected to end at age 65 instead of age 62.

• The percent of future retirees electing coverage was lowered from 50% to 40%.

• These changes decreased the liability $392,033.

2021 Changes

Changes in Actuarial Assumptions: • The discount rate was changed from 2.90% to 2.00%.

2020 Changes

Changes in Actuarial Assumptions: • The health care trend rates, mortality tables, salary increase rates, and subsidy end date of one officer (age 58 as of the valuation date) injured in the line of duty were updated.

• The discount rate was changed from 3.80% to 2.90%.

2019 Changes

Changes in Plan Provisions: • Per a special agreement, one retiree received City paid medical and dental premiums for six months during 2019.

Changes in Actuarial Assumptions: • The discount rate was changed from 3.30% to 3.80%.

114

City of Eden Prairie, Minnesota Notes to Required Supplemental Information General Employees Fund

2022 Changes

Changes in Actuarial Assumptions: • The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021.

Changes in Plan Provisions: • There were no changes in plan provisions since the previous valuation.

2021 Changes

Changes in Actuarial Assumptions: • The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial reporting purposes.

• The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020.

Changes in Plan Provisions: • There were no changes in plan provisions since the previous valuation.

2020 Changes

Changes in Actuarial Assumptions: • The price inflation assumption was decreased from 2.50% to 2.25%.

• The payroll growth assumption was decreased from 3.25% to 3.00%.

• Assumed salary increase rates were changed as recommended in the June 30, 2019 experience study. The net effect is assumed rates that average 0.25% less than previous rates.

• Assumed rates of retirement were changed as recommended in the June 30, 2019 experience study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements.

• Assumed rates of termination were changed as recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than the previous rates for years 2-5 and slightly higher thereafter.

• Assumed rates of disability were changed as recommended in the June 30, 2019 experience study. The change results in fewer predicted disability retirements for males and females.

• The base mortality table for healthy annuitants and employees was changed from the RP2014 table to the Pub-2010 General Mortality table, with adjustments. The base mortality table for disabled annuitants was changed from the RP-2014 disabled annuitant mortality table to the PUB-2010 General/Teacher disabled annuitant mortality table, with adjustments.

• The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.

• The assumed spouse age difference was changed from two years older for females to one year older.

• The assumed number of married male new retirees electing the 100% Joint & Survivor option changed from 35% to 45%. The assumed number of married female new retirees 115

City of Eden Prairie, Minnesota Notes to Required Supplemental Information

electing the 100% Joint & Survivor option changed from 15% to 30%. The corresponding number of married new retirees electing the Life annuity option was adjusted accordingly.

Changes in Plan Provisions • Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations occurring after June 30, 2020.

2019 Changes

Changes in Actuarial Assumptions: • The morality projection scale was changed from MP-2017 to MP-2018.

Changes in Plan Provisions: • The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The State’s special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031.

2018 Changes

Changes in Actuarial Assumptions: • The morality projection scale was changed from MP-2015 to MP-2017.

• The assumed benefit increase was changed from 1.00 percent per year through 2044 and 2.50 percent per year thereafter to 1.25 percent per year.

Changes in Plan Provisions: •

•

•

• •

• •

The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024.

Interest credited on member contributions decreased from 4.00 percent to 3.00 percent, beginning July 1, 2018.

Deferred augmentation was changed to 0.00 percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply.

Contribution stabilizer provisions were repealed.

Postretirement benefit increases were changed from 1.00 percent per year with a provision to increase to 2.50 percent upon attainment of 90.00 percent funding ratio to 50.00 percent of the Social Security Cost of Living Adjustment, not less than 1.00 percent and not more than 1.50 percent, beginning January 1, 2019.

For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches normal retirement age; does not apply to Rule of 90 retirees, disability benefit recipients, or survivors.

Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions.

2017 Changes

Changes in Actuarial Assumptions: • The combined service annuity (CSA) loads were changed from 0.80 percent for active members and 60.00 percent for vested and non-vested deferred members. The revised CSA load are now 0.00 percent for active member liability, 15.00 percent for vested deferred member liability, and 3.00 percent for non-vested deferred member liability.

• The assumed postretirement benefit increase rate was changed for 1.00 percent per year for all years to 1.00 percent per year through 2044 and 2.50 percent per year thereafter.

116

City of Eden Prairie, Minnesota Notes to Required Supplemental Information

Changes in Plan Provisions: • The State’s contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in 2017 and 2018, and $6,000,000 thereafter.

• The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The state’s contribution changed from $16,000,000 to $6,000,000 in calendar years 2019 to 2031.

2016 Changes

Changes in Actuarial Assumptions: • The assumed postretirement benefit increase rate was changed from 1.00 percent per year through 2035 and 2.50 percent per year thereafter to 1.00 percent per year for all years.

• The assumed investment return was changed from 7.90 percent to 7.50 percent. The single discount rate changed from 7.90 percent to 7.50 percent.

• Other assumptions were changed pursuant to the experience study 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.

Changes in Plan Provisions • There have been no changes since the prior valuation.

2015 Changes:

Changes in Actuarial Assumptions: • The assumed postretirement benefit increase rate was changed from 1.00 percent per year through 2030 and 2.50 percent per year thereafter to 1.00 percent per year through 2035 and 2.50 percent per year thereafter.

Changes in Plan Provisions: • On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General Employees Fund, which increased the total pension liability by $1.1 billion and increase the fiduciary plan net position by $892 million. Upon consolidation, state and employer contributions were revised; the State’s contribution of $6.0 million, which meets the special funding situation definition, was due September 2015.

Police and Fire Fund

2022 Changes

Changes in Actuarial Assumptions: • The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021.

• The single discount rate changed from 6.50% to 5.40%.

Changes in Plan Provisions: • There were no changes in plan provisions since the previous valuation.

2021 Changes

Changes in Actuarial Assumptions: • The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial reporting purposes.

117

City of Eden Prairie, Minnesota Notes to Required Supplemental Information • • •

•

• • • • •

The inflation assumption was changed from 2.50 percent to 2.25 percent.

The payroll growth assumption was changed from 3.25 percent to 3.00 percent.

The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the Pub-2010 Public Safety Mortality table. The mortality improvement scale was changed from MP-2019 to MN-2020.

The base mortality table for disabled annuitants was changed from the RP-2014 healthy annuitant mortality table (with future mortality improvement according to Scale MP2019) to the Pub-2010 Public Safety disabled annuitant mortality table (with future mortality improvement according to Scale MP-2020).

Assumed rates of salary increase were modified as recommended in the July 14, 2020 experience study. The overall impact is a decrease in gross salary increase rates.

Assumed rates of retirement were changed as recommended in the July 14, 2020 experience study. The changes result in slightly more unreduced retirements and fewer assumed early retirements.

Assumed rates of withdrawal were changed from select and ultimate rates to servicebased rates. The changes result in more assumed terminations.

Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall, proposed rates result in more projected disabilities.

Assumed percent married for active female members was changed from 60 percent to 70 percent. Minor changes to form of payment assumptions were applied.

Changes in Plan Provisions: • There were no changes in plan provisions since the previous valuation.

2020 Changes

Changes in Actuarial Assumptions • The morality projection scale was changed from MP-2018 to MP-2019.

Changes in Plan Provisions • There have been no changes since the prior valuation.

2019 Changes

Changes in Actuarial Assumptions • The morality projection scale was changed from MP-2017 to MP-2018.

Changes in Plan Provisions • There have been no changes since the prior valuation.

2018 Changes

Changes in Actuarial Assumptions • The morality projection scale was changed from MP-2016 to MP-2017.

Changes in Plan Provisions •

• •

Postretirement benefit increases were changed to 1.00 percent for all years, with no trigger.

An end date of July 1, 2048 was added to the existing $9.0 million state contribution.

New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9.0 million thereafter until the plan reaches 100 percent funding, or July 1, 2048, if earlier.

118

City of Eden Prairie, Minnesota Notes to Required Supplemental Information • •

• •

•

Member contributions were changed from 10.80 percent to 11.30 percent of pay, effective January 1, 2019 and 11.80 percent of pay, effective January 1, 2020.

Employer contributions were changed from 16.20 percent to 16.95 percent of pay, effective January 1, 2019 and 17.70 percent of pay, effective January 1, 2020.

Interest credited on member contributions decreased from 4.00 percent to 3.00 percent, beginning July 1, 2018.

Deferred augmentation was changed to 0.00 percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply.

Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions.

2017 Changes

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 combined service annuity (CSA) load was 30.00 percent for vested and non-vested, deferred members. The CSA has been changed to 33.00 percent for vested members and 2.00 percent for non-vested members.

• The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees.

• Assumed termination rates were decreased to 3.00 percent for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall.

• Assumed percentage of married female members was decreased from 65.00 percent to 60.00 percent.

• Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females.

• The assumed percentage of female members electing joint and survivor annuities was increased.

• The assumed postretirement 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 was changed from 5.60 percent per annum to 7.50 percent per annum.

Changes in Plan Provisions • There have been no changes since the prior valuation.

2016 Changes

Changes in Actuarial Assumptions 119

City of Eden Prairie, Minnesota Notes to Required Supplemental Information •

The assumed postretirement benefit increase rate was changed from 1.00 percent per year through 2037 and 2.50 percent per year thereafter to 1.00 percent per year for all future years.

• The assumed investment return was changed from 7.90 percent to 7.50 percent.

• The single discount rate changed from 7.90 percent to 5.60 percent.

• The assumed future salary increases, payroll growth, and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and 2.50 percent for inflation.

Changes in Plan Provisions • There have been no changes since the prior valuation.

2015 Changes

Changes in Actuarial Assumptions • The assumed postretirement benefit increase rate was changed from 1.00 percent per year through 2030 and 2.50 percent per year thereafter to 1.00 percent per year through 2037 and 2.50 percent per year thereafter.

Changes in Plan Provisions • The postretirement benefit increase to be paid after the attainment of the 90.00 percent funding threshold was changed from inflation up to 2.50 percent, to a fixed rate of 2.50 percent

Fire Relief

2021 Changes • •

The mortality projection scale was updated from MP-2019 to MP-2021 The termination assumption was updated to reflect experience from the last four years

2020 Changes •

No changes since 2019 report

2019 Changes •

The mortality projection scale was updated from MP-2017 to MP-2019

2018 Changes • • • •

The lump sum benefit level was increased from $10,000 to $12,400 The mortality projection scale was updated from MP-2016 to MP-2017 The termination decrement scale was updated to reflect a recent experience study The lump sum election rate was changed from 20% to 50%

2017 Changes •

No changes since 2016 report

2016 Changes •

The base mortality table was updated from the RP-2014 Blue Collar table to the unadjusted RP-2014 table 120

City of Eden Prairie, Minnesota Notes to Required Supplemental Information •

The mortality projection scale was updated from MP-2014 to MP-2016

2015 Changes •

No changes since 2014 report which was the year of implementation so no further changes to note.

121

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122

COMBINING FUND STATEMENTS

123

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124

City of Eden Prairie, Minnesota Nonmajor Governmental Funds Special Revenue Funds

Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects.

Housing Redevelopment Authority (HRA Grant) – This fund accounts for monies received under Title I of the Housing and Community Development Act of 1974 and other related housing activities.

Pleasant Hills Cemetery – This fund accounts for the current operations of the City cemetery including maintenance costs and lot sales.

Eden Prairie Cemetery – This fund accounts for the current operations of the City cemetery including maintenance costs and lot sales.

Grant – This fund accounts for monies received from the State. The grant will fund a police officer who will dedicate his time to decreasing DWI’s.

Recycling – This fund accounts for monies received from Hennepin County's household waste rebate programs. All dollars received are to be spent on eligible recycling programs within Eden Prairie.

Opioid Settlement – This fund accounts for monies received under the National Opioid Settlement.

All dollars received are to be spent to fight the opioid crisis.

Historical and Cultural - This fund accumulates revenue from the sale of a book on Eden Prairie's 100-year history and the sale of old street signs. The book was donated to the City by the Eden Prairie Historical Society, with revenues earmarked for expenditure on the preservation of the history of Eden Prairie.

Debt Service Funds

Debt service funds are used to account for all financial resources that are restricted, committed, or assigned to expenditures for principal and interest.

General Obligation Refunding Bonds 2016A – This fund accounts for the refunding of the G.O. Bonds 2008B which accounted for the accumulation of resources needed to repay bonds issued to finance the construction of streets, lateral utilities, and drainage for the Flying Cloud Drive construction project. The primary sources of repayment on these bonds are special assessments levied on benefited properties.

General Obligation Improvement Bonds 10A/20A – This fund is used to account for the accumulation of tax revenues needed to repay bonds issued to pay the construction costs for the Singletree Lane project. G.O. Bonds 10A were refunded with G.O. Bonds 20A. 125

City of Eden Prairie, Minnesota Nonmajor Governmental Funds Debt Service Funds (Continued)

General Obligation Refunding 11D/20A – This fund accounts for the refunding of the G.O. Improvement Revolving Bonds which accounted for the accumulation of tax revenues needed to repay bonds issued to finance the construction at 212 and Charleston Road. G.O. Bonds 11D were refunded with G.O. Bonds 20A.

General Obligation Refunding 12A/20A – This fund accounts for the refunding of the G.O. Bonds 2005C which accounted for the accumulation of tax revenues needed to repay bonds issued to finance construction projects for various trails, park improvements and the community center. G.O. Bonds 12A were refunded with G.O. Bonds 20A. General Obligation Refunding 12B/20A – This fund accounts for the refunding of the G.O. Bonds 2006B which accounted for the accumulation of tax revenues needed to repay bonds issued to finance construction projects for the new fire station. G.O. Bonds 12B were refunded with G.O. Bonds 20A.

General Obligation Bonds 2016A – This fund is used to account for the accumulation of special assessments needed to repay bonds issued to finance the West 70th project.

Capital Project Funds

Capital projects funds are used to account for all financial resources that are restricted, committed, or assigned to expenditures for capital outlay.

Police - This fund accounts for all confiscated money, and / or property obtained through drugrelated criminal arrests and compliance fines. The funds are earmarked for expenditures on law enforcement operations.

E-911 - This fund accounts for monies received from the State of Minnesota to be used for the E-911 emergency system.

Senior Board/EP Players - This fund was established to account for monies received for Senior Awareness Week and EP Players, a parks and recreation department theater program.

Park Improvement - This fund accounts for the park dedication fees, grants, and other contributions earmarked for expenditure on park acquisition and development.

CIP Trails - This fund accounts for the accumulation of resources to be used for capital improvements and maintenance of City trails.

126

City of Eden Prairie, Minnesota Nonmajor Governmental Funds Capital Project Funds (Continued)

CIP Pavement Management - This fund accounts for the accumulation of resources to be used for capital improvements and maintenance of City streets.

Economic Development – This fund accounts for money set aside to assist in the redevelopment of the City.

Project – This fund accounts for tax increment revenue set aside to assist in the redevelopment of the City.

HRA – This fund accounts for the accumulation of resources to be used for economic development projects.

Tree Replacement – This fund accounts for tree replacement fees that are collected from permittees who have demonstrated that it is not possible or reasonable to plant all or some of the required replacement trees on site. The revenue will be used for planting of trees and natural enhancements within the City.

Transportation - This fund accounts for proceeds of state aid. This revenue is used to finance street improvements.

Cable PEG (Public, Educational, and Government) – This fund accounts for the revenues collected from Comcast. These funds will be used for the production of PEG Access programming.

Homeowners Improvements Area – This fund accounts for the accumulation of resources to be used for Housing Improvements to the Fairway Woods II Condominiums.

Duck Lake Road Construction – This fund accounts for the accumulation of resources to be used to upgrade existing rural roadway to a 2 lane urban roadway.

Dell Road – This fund accounts for accumulation of resources to be used to upgrade a rural section of Dell Road between Crestwood Terrace and County Road 61.

Permanent Funds

Permanent funds are used to account for resources that are restricted to the extent that only earnings, and not principal, may be used for purposes that support the City’s programs that is, for the benefit of the City or its citizens.

Cemetery Perpetual Care - This fund was established to account for funds dedicated for cemetery maintenance in accordance with state statutes.

127

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128

City of Eden Prairie, Minnesota Combining Balance Sheet Nonmajor Governmental Funds December 31, 2022

Page 1 of 5

Special Revenue

HRA Grant

Pleasant Hill Cemetery

$

47,744 $

147,621 $

67,018 $

32,263 $

82,777

$

275 130 48,149 $

406 148,027 $

525 64 67,607 $

122 39,878 72,263 $

82,777

46,306 $ 1,843 48,149

369 $ 1,100 1,469

1,411 $ 1,411

$ 4,136 4,136

33,562 33,562

DEFERRED INFLOWS OF RESOURCES Deferred Inflow of Resource Related to Lease Receivable Unavailable Revenue-Revenue Unavailable Revenue-Special Assessments Total Deferred Inflows of Resources

-

-

525 525

-

-

-

-

FUND BALANCES Nonspendable Restricted Assigned Unassigned Total Fund Balance

130 (130) -

146,558 146,558

65,671 65,671

68,127 68,127

49,215 49,215

89,503 89,503

35,262 35,262

130 454,336 (130) 454,336

48,149 $

148,027 $

67,607 $

72,263 $

82,777

38,596 $

561,922

ASSETS Cash and Investments Receivables Accounts Investment Interest Lease Receivable Interest Due from Other Governments Unremitted Taxes Unremitted Special Assessments Delinquent Special Assessments Deferred Special Assessments Special Deferred Special Assessments Due from Other Funds Prepaid Items Lease Receivable Land Held for Resale Notes Receivable (net of allow for uncollectible) Total Assets LIABILITIES Accounts and Contracts Payable Salaries Payable Investment Interest Payable Due to Other Governments Due to Other Funds Unearned Revenue Total Liabilities

Total Liabilities, Deferred Inflows of Resources, and Fund Balances

$

$

Eden Prairie Cemetery

Grant Fund

Historical and Cultural

Opioid Settlement

Recycling

$

104,494

$

38,473 $

520,390

$

123 38,596 $

525 724 40,153 130 561,922

3,241 $ 93 3,334

84,889 5,979 15,093 1,100 107,061

9

$

$

$

104,503

15,000 15,000

104,503

Total

$

$

525 525

129

City of Eden Prairie, Minnesota Combining Balance Sheet Nonmajor Governmental Funds December 31, 2022

Page 2 of 5

Debt Service General Obligation Refunding Bonds 2016A ASSETS Cash and Investments Receivables Accounts Investment Interest Lease Receivable Interest Due from Other Governments Unremitted Taxes Unremitted Special Assessments Delinquent Special Assessments Deferred Special Assessments Special Deferred Special Assessments Due from Other Funds Prepaid Items Lease Receivable Land Held for Resale Notes Receivable (net of allow for uncollectible) Total Assets LIABILITIES Accounts and Contracts Payable Salaries Payable Investment Interest Payable Due to Other Governments Due to Other Funds Unearned Revenue Total Liabilities

General Obligation Improvement Bonds 10A/20A

General Obligation Refunding Bonds 11D/20A

General Obligation Refunding Bonds 12A/20A

General Obligation Refunding Bonds 12B/20A

General Obligation Bonds 2016A

Total

$

434,175 $

137,914 $

590,706 $

324,500 $

107,179 $

116,413 $

1,710,887

$

1,114 110,000 545,289 $

509 226,418 364,841 $

1,914 168 435,083 120,762 1,148,633 $

1,714 3,906 330,120 $

776 1,247 109,202 $

112 951,672 1,068,197 $

6,139 5,153 168 1,723,173 120,762 3,566,282

198 $ 198

198 $ 198

198 $ 198

198 $ 198

198 $ 198

198 $ 198

1,188 1,188

$

DEFERRED INFLOWS OF RESOURCES Deferred Inflow of Resource Related to Lease Receivable Unavailable Revenue-Revenue Unavailable Revenue-Special Assessments Total Deferred Inflows of Resources

110,000 110,000

226,418 226,418

556,013 556,013

-

-

951,672 951,672

1,844,103 1,844,103

FUND BALANCES Nonspendable Restricted Assigned Unassigned Total Fund Balance

435,091 435,091

138,225 138,225

592,422 592,422

329,922 329,922

109,004 109,004

116,327 116,327

1,720,991 1,720,991

545,289 $

364,841 $

1,148,633 $

330,120 $

109,202 $

1,068,197 $

3,566,282

Total Liabilities, Deferred Inflows of Resources, and Fund Balances

$

130

City of Eden Prairie, Minnesota Combining Balance Sheet Nonmajor Governmental Funds December 31, 2022

Page 3 of 5

Capital Projects

ASSETS Cash and Investments Receivables Accounts Investment Interest Lease Receivable Interest Due from Other Governments Unremitted Taxes Unremitted Special Assessments Delinquent Special Assessments Deferred Special Assessments Special Deferred Special Assessments Due from Other Funds Prepaid Items Lease Receivable Land Held for Resale Notes Receivable (net of allow for uncollectible) Total Assets LIABILITIES Accounts and Contracts Payable Salaries Payable Investment Interest Payable Due to Other Governments Due to Other Funds Unearned Revenue Total Liabilities

Park Improvement

CIP Trails

CIP Pavement Management

Police

E-911

$

60,588 $

101,429 $

15,136 $

5,463,586 $

677,614 $

1,235,411

251 13,715 73,569 188,964 $

-

$

175 60,763 $

50 15,186 $

14,592 5,478,178 $

1,205 60,001 738,820 $

852,584 10,297 2,098,292

4,931 $ 2,011 6,942

-

130 $ 130

38,501 $ 353,248 391,749

3,396 $ 3,396

74,415 74,415

-

-

-

53,821 53,821

73,569 114,084 1,311 188,964

15,056 15,056

4,380,240 706,189 5,086,429

675,423 675,423

756,140 1,267,737 2,023,877

60,763 $

188,964 $

15,186 $

5,478,178 $

738,820 $

2,098,292

$

DEFERRED INFLOWS OF RESOURCES Deferred Inflow of Resource Related to Lease Receivable Unavailable Revenue-Revenue Unavailable Revenue-Special Assessments Total Deferred Inflows of Resources FUND BALANCES Nonspendable Restricted Assigned Unassigned Total Fund Balance Total Liabilities, Deferred Inflows of Resources, and Fund Balances

Senior Board EP Players

$

$

-

60,001 60,001

-

131

City of Eden Prairie, Minnesota Combining Balance Sheet Nonmajor Governmental Funds December 31, 2022

Page 4 of 5

Capital Projects

Economic Development Fund ASSETS Cash and Investments Receivables Accounts Investment Interest Lease Receivable Interest Due from Other Governments Unremitted Taxes Unremitted Special Assessments Delinquent Special Assessments Deferred Special Assessments Special Deferred Special Assessments Due from Other Funds Prepaid Items Lease Receivable Land Held for Resale Notes Receivable (net of allow for uncollectible) Total Assets LIABILITIES Accounts and Contracts Payable Salaries Payable Investment Interest Payable Due to Other Governments Due to Other Funds Unearned Revenue Total Liabilities

HRA

Tree Replacement

Transportation

Cable PEG

$

2,806,187 $

4,368,545 $

319,556 $

321,877 $

657,136 $

274,911

$

412 8,499 1,030 885,000 380,255 741,000 5,686 4,828,069 $

12,897 40,235 1,072,503 5,494,180 $

848 888 321,292 $

850 322,727 $

3,311 193 25,280 820,353 1,506,273 $

18,944 816 6,826 301,497

928,714 $ 3,983 21,625 954,322

35,098 $ 9,785 44,883

$ 6,302 6,302

-

371,156 371,156

-

-

-

845,633 845,633

-

$

DEFERRED INFLOWS OF RESOURCES Deferred Inflow of Resource Related to Lease Receivable Unavailable Revenue-Revenue Unavailable Revenue-Special Assessments Total Deferred Inflows of Resources FUND BALANCES Nonspendable Restricted Assigned Unassigned Total Fund Balance Total Liabilities, Deferred Inflows of Resources, and Fund Balances

Project Fund

$

$

3,382 $ 3,382

-

3,502,591 3,502,591

3,592,224 1,857,073 5,449,297

314,990 314,990

322,727 322,727

657,258 657,258

6,826 280,335 14,336 301,497

4,828,069 $

5,494,180 $

321,292 $

322,727 $

1,506,273 $

301,497

132

City of Eden Prairie, Minnesota Combining Balance Sheet Nonmajor Governmental Funds December 31, 2022

Page 5 of 5

Permanent Fund

Capital Projects

Homeowners Improvements Area ASSETS Cash and Investments Receivables Accounts Investment Interest Lease Receivable Interest Due from Other Governments Unremitted Taxes Unremitted Special Assessments Delinquent Special Assessments Deferred Special Assessments Special Deferred Special Assessments Due from Other Funds Prepaid Items Lease Receivable Land Held for Resale Notes Receivable (net of allow for uncollectible) Total Assets LIABILITIES Accounts and Contracts Payable Salaries Payable Investment Interest Payable Due to Other Governments Due to Other Funds Unearned Revenue Total Liabilities

Duck Lake Road Reconstruction

Dell Road

Total

1,354,331 8,313 517 13,768 67,041 1,079,873 2,523,843

-

-

371,156 925,614 1,296,770

-

371,156 525 2,769,717 3,141,398

80,395 11,111,722 12,036,082 (69,545) 23,158,654

192,139 21,953 214,092

272,664 13,309,002 12,036,082 (69,675) 25,548,073

19,980 19,980

FUND BALANCES Nonspendable Restricted Assigned Unassigned Total Fund Balance

7,126 30 7,156

1,658,846 2,970,267 4,629,113

(69,545) (69,545)

27,137 $

5,597,889 $

-

$

$

872,465 61,293 1,030 1,643,868 46,276 193 168 1,828,434 941,115 67,041 80,525 380,255 741,000 1,078,189 31,321,563

2,461 $ 43 67,041 69,545

-

DEFERRED INFLOWS OF RESOURCES Deferred Inflow of Resource Related to Lease Receivable Unavailable Revenue-Revenue Unavailable Revenue-Special Assessments Total Deferred Inflows of Resources

Total Liabilities, Deferred Inflows of Resources, and Fund Balances

23,579,711

263,303 $ 473 705,000 968,776

$

-

1

$

$

-

705,000 67,041 5,597,889 $

1

$

639 214,092

871,940 53,791 1,030 1,603,715 41,123 193 105,261 820,353 67,041 80,395 380,255 741,000 1,078,189 26,979,267

4,825,848 $

19,980 27,137 $

-

213,453

21,134,981

7,157 $

$

$

Total Nonmajor Governmental Funds

$

$

$

Cemetery Perpetual Care Fund

$

26,979,267

$

$

-

214,092

$

$

1,440,408 14,292 517 28,861 67,041 1,080,973 2,632,092

31,321,563

133

City of Eden Prairie, Minnesota Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2022

Page 1 of 5

Special Revenue

Pleasant Hills Cemetery

HRA Grant REVENUES General Property Taxes Special Assessments Licenses and Permits Intergovernmental Revenue Charges for Services Fines and Forfeits Investment Income Lease Income Rental Other Contributions and Donations Miscellaneous Total Revenues

$

EXPENDITURES Current Community Development Police Public Works Parks and Recreation Capital Outlay Administration Public Works Parks and Recreation Debt Service Principal Interest Fiscal Agent Fees Total Expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total Other Financing Sources (Uses)

Eden Prairie Cemetery

Grant Fund

Historical and Cultural

Opioid Settlement

Recycling

$ 49,730 (2,291) -

$ 62,750 (323) -

$ 127,341 (707) -

115,994 -

628,942

47,439

29,391 91,818

126,634

145 116,139

110,819 110,772

500 5,273 5,047

500 145,628 1,126,791

628,942 -

17,736

26,147

121,805 -

77,737 -

21,269 -

13,649 -

642,591 143,074 77,737 43,883

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

628,942

17,736

26,147

121,805

77,737

21,269

13,649

907,285

-

29,703

65,671

4,829

38,402

89,503

(8,602)

219,506

-

-

-

-

-

-

-

-

628,942 -

$

$

(47) -

$

Total

$ (726) -

872,277 112,480 (4,094) -

Net Change in Fund Balances

-

29,703

65,671

4,829

38,402

89,503

(8,602)

219,506

Fund Balances (Deficit) - Beginning

-

116,855

-

63,298

10,813

-

43,864

234,830

Fund Balances (Deficit) - Ending

$

-

$

146,558

$

65,671

$

68,127

$

49,215

$

89,503

$

35,262

$

454,336

134

City of Eden Prairie, Minnesota Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2022

Page 2 of 5

Debt Service General Obligation Refunding Bonds 2016A REVENUES General Property Taxes Special Assessments Licenses and Permits Intergovernmental Revenue Charges for Services Fines and Forfeits Investment Income Lease Income Rental Other Contributions and Donations Miscellaneous Total Revenues

$

General Obligation Improvement Bonds 10A/20A

General Obligation Refunding Bonds 11D/20A

General Obligation Refunding Bonds 12A/20A

General Obligation Refunding Bonds 12B/20A

General Obligation Bonds 2016A

Total

$ 123,753 (6,634) -

$ 91,329 (3,027) -

$ 195,198 (11,362) -

900,891 $ (11,456) -

277,884 $ (5,326) -

$ 148,043 (645) -

1,178,775 558,323 (38,450) -

117,119

88,302

183,836

889,435

272,558

147,398

1,698,648

-

-

-

-

-

-

-

EXPENDITURES Current Community Development Police Public Works Parks and Recreation Capital Outlay Administration Public Works Parks and Recreation Debt Service Principal Interest

-

-

-

-

-

-

110,000 8,850

94,000 3,179

174,000 6,001

876,000 30,141

342,000 11,432

110,000 29,310

1,706,000 88,913

Fiscal Agent Fees Total Expenditures

598 119,448

598 97,777

598 180,599

598 906,739

598 354,030

3,698 143,008

6,688 1,801,601

(2,329)

(9,475)

3,237

(17,304)

(81,472)

4,390

(102,953)

-

-

-

-

-

-

-

Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances (Deficit) - Beginning Fund Balances (Deficit) - Ending

$

(2,329)

(9,475)

3,237

(17,304)

(81,472)

4,390

(102,953)

437,420

147,700

589,185

347,226

190,476

111,937

1,823,944

592,422 $

329,922 $

109,004 $

116,327 $

1,720,991

435,091

$

138,225

$

135

City of Eden Prairie, Minnesota Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2022

Page 3 of 5

Capital Projects

REVENUES General Property Taxes Special Assessments Licenses and Permits Intergovernmental Revenue Charges for Services Fines and Forfeits Investment Income Lease Income Rental Other Contributions and Donations Miscellaneous Total Revenues

$

EXPENDITURES Current Community Development Police Public Works Parks and Recreation Capital Outlay Administration Public Works Parks and Recreation Debt Service Principal Interest Fiscal Agent Fees Total Expenditures

Senior Board EP Players

E-911

Police

Park Improvement

CIP Pavement Mgmt

CIP Trails

$ (298) -

$ 1,805,472 (83,306) -

$ 19,150 (6,768) -

3,256,802 500,000 (60,863) -

162,571

2,087 3,311 5,100

43,634 1,765,800

12,382

3,695,939

43,812 -

87,147 -

4,839

-

-

-

-

-

636,132

165,229 -

-

-

-

-

-

43,812

87,147

4,839

636,132

165,229

5,193,722 (1,497,783)

$ 10,000 925 (526) -

162,571 -

11,150 21,549

$

(22,263)

75,424

261

1,129,668

(152,847)

OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total Other Financing Sources (Uses)

-

-

(2,300) (2,300)

20,000 (173,134) (153,134)

400,000 400,000

Net Change in Fund Balances

(22,263)

75,424

(2,039)

976,534

247,153

Fund Balances (Deficit) - Beginning

76,084

113,540

17,095

4,109,895

428,270

Excess of Revenues Over (Under) Expenditures

Fund Balances (Deficit) - Ending

$

53,821

$

188,964

$

15,056

$

5,086,429

$

675,423

5,193,722 -

(1,497,783) 3,521,660 $

2,023,877

136

City of Eden Prairie, Minnesota Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2022

Page 4 of 5

Capital Projects

Economic Development Fund REVENUES General Property Taxes Special Assessments Licenses and Permits Intergovernmental Revenue Charges for Services Fines and Forfeits Investment Income Lease Income Rental Other Contributions and Donations Miscellaneous Total Revenues

$

78,626 1,004,285

EXPENDITURES Current Community Development Police Public Works Parks and Recreation Capital Outlay Administration Public Works Parks and Recreation Debt Service Principal Interest

-

Fiscal Agent Fees Total Expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances (Deficit) - Beginning Fund Balances (Deficit) - Ending

$ 885,000 (50,870) 13,395 78,134

$

Project Fund

HRA

Tree Replacement

2,750,448 $ (76,189) -

197,936 $ (5,005) -

2,674,259

192,931

2,574,961 -

Cable PEG

Transportation $ 18,983 (21,055) -

79,111 (4,743) -

113,942 109,082

1,577 (495)

74,368

192,018 -

-

-

-

$ (4,860) -

961,630 -

-

-

-

182,581 -

53,706 -

47,170 626

-

-

-

-

-

-

182,581

53,706

1,009,426

2,574,961

192,018

(5,141)

99,298

913

109,082

(183,076)

20,662

-

-

-

-

(289,238) (289,238)

-

(5,141)

99,298

913

109,082

(472,314)

20,662

3,507,732

5,349,999

314,077

213,645

1,129,572

280,835

3,502,591

$

5,449,297

$

314,990

$

322,727

$

657,258

$

301,497

137

City of Eden Prairie, Minnesota Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2022

Page 5 of 5

Permanent Fund

Capital Projects

Homeowners Improvements Area REVENUES General Property Taxes Special Assessments Licenses and Permits Intergovernmental Revenue Charges for Services Fines and Forfeits Investment Income Lease Income Rental Other Contributions and Donations Miscellaneous Total Revenues

$

10,353 30 -

Duck Lake Road Reconstruction $

10,383

5,281,481 4,418 -

Dell Road $

470,000 5,755,899

Cemetery Perpetual Care Fund

Total 217 -

$

Total Nonmajor Governmental Funds

2,948,384 $ 48,486 3,335,913 6,839,052 1,805,472 925 (309,818) 13,395 78,134

$ 9,620 (3,782) -

4,127,159 606,809 3,335,913 7,711,329 1,927,572 925 (356,144) 13,395 78,134

217

159,663 564,664 15,484,270

5,838

160,163 710,292 18,315,547

-

2,766,979 130,959 4,839

340

3,409,570 274,033 77,737 49,062

34,799 -

53,706 10,630,596 636,132

-

53,706 10,630,596 636,132

47,170 626

-

1,753,170 89,539

EXPENDITURES Current Community Development Police Public Works Parks and Recreation Capital Outlay Administration Public Works Parks and Recreation Debt Service Principal Interest

-

Fiscal Agent Fees Total Expenditures

-

4,092,635

34,799

14,271,007

340

6,688 16,980,233

-

-

-

4,092,635 -

-

-

10,383

1,663,264

(34,582)

1,213,263

5,498

1,335,314

OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total Other Financing Sources (Uses)

-

2,300,000 2,300,000

(34,963) (34,963)

2,720,000 (499,635) 2,220,365

-

2,720,000 (499,635) 2,220,365

Net Change in Fund Balances

10,383

3,963,264

(69,545)

3,433,628

5,498

3,555,679

Fund Balances (Deficit) - Beginning

(3,227)

665,849

-

19,725,026

208,594

21,992,394

(69,545) $

23,158,654

Excess of Revenues Over (Under) Expenditures

Fund Balances (Deficit) - Ending

$

7,156

$

4,629,113

$

$

214,092

$

25,548,073

138

City of Eden Prairie, Minnesota Internal Service Funds Internal Service Funds

Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis.

Health & Benefits – This fund accounts for the activities pertaining to health, dental, life and disability insurance. This fund also accounts for the employer’s portion of pension, FICA and medicare contributions.

Severance – This fund accounts for the payment of unused personal time off for governmental fund employees.

Workers Compensation – This fund accounts for the costs associated with workers’ compensation.

Revenues are primarily charges to other funds, interest earnings and insurance checks.

Expenditures will consist of insurance premiums.

Property Insurance – This fund accounts for the costs associated with the City’s property and casualty insurance program. Revenues are primarily charges to other funds and interest earnings.

Expenditures will consist of insurance premiums.

Facilities – This fund accounts for the costs associated with maintaining city owned buildings.

Revenues are primarily charges to other funds, rental income, and interest earnings.

Fleet – These funds account for the costs associated with maintaining and purchasing vehicles and equipment for the City. Revenues are primarily charges to other funds and interest earnings.

Information Technology – These funds account for the provision of information technology services including infrastructure and applications. Revenues are primarily charges to other funds and interest earnings.

139

City of Eden Prairie, Minnesota Internal Service Funds Combining Statement of Net Position December 31, 2022

Health & Benefits ASSETS Current Assets Cash and Investments Receivables Accounts Investment Interest Lease Receivable Interest Due From Other Governments Inventory Prepaid Items Total Current Assets

$

Noncurrent Assets: Lease Receivable Capital Assets Not Being Depreciated or Amortized Work in Progress Depreciated or Amortized Property, Plant and Equipment Leased Building/Equipment Less Accumulated Depreciation/Amortization Total Noncurrent Assets Total Assets

Total Assets and Deferred Outflows of Resources LIABILITIES Current Liabilities: Accounts Payable Salaries Payable Lease Interest Payable Due to Other Governments Unearned Revenue Current Lease Liability Payable Current Portion of Compensated Absences Total Current Liabilities

Workers Compensation

Property Insurance

1,858,394 $

1,396,679 $

57,941 $

286,191

8,941 6,052 8,378 26,715 1,908,480

4,168 1,400,847

347 176,270 234,558

886 139,997 427,074

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

234,558

427,074

96 96

1,908,480

DEFERRED OUTFLOWS OF RESOURCES Other Post Employment Benefits Total Deferred Outflows of Resources

Severance

1,400,847

923,561 923,561

-

96 96

$

2,832,041 $

1,400,847 $

234,654 $

427,170

$

25,478 $ 210,559 236,037

$ 5,358 1,144,701 1,150,059

$ 1,673 1,673

1,000 1,673 2,673

Noncurrent Liabilities: Total Other Postemployment Benefits Liability Lease Liability Payable Compensated Absences Total Noncurrent Liabilities

3,162,218 3,162,218

1,232,043 1,232,043

608 608

609 609

Total Liabilities

3,398,255

2,382,102

2,281

3,282

50 50

-

DEFERRED INFLOWS OF RESOURCES Other Postemployment Benefits Deferred Inflow of Resource Related to Lease Receivable Total Deferred Inflows of Resources

471,612 471,612

Total Liabilities and Deferred Inflows of Resources

3,869,867

2,382,102

2,331

3,332

(1,037,826) (1,037,826)

(981,255) (981,255)

232,323 232,323

423,838 423,838

2,832,041 $

1,400,847 $

234,654 $

427,170

NET POSITION Net Investment in Capital Assets Unrestricted Total Net Position Total Liabilities and Deferred Inflows of Resources and Net Position

$

-

50 50

140

City of Eden Prairie, Minnesota Internal Service Funds Combining Statement of Net Position December 31, 2022

ASSETS Current Assets Cash and Investments Receivables Accounts Investment Interest Lease Receivable Interest Due From Other Governments Inventory Prepaid Items Total Current Assets

$

Noncurrent Assets: Lease Receivable Capital Assets Not Being Depreciated or Amortized Work in Progress Depreciated or Amortized Property, Plant and Equipment Leased Building/Equipment Less Accumulated Depreciation/Amortization

Information Technology

Facilities

Fleet

Total

3,807,322 $

4,639,068 $

1,579,447 $

13,625,042

10,746 13,030 1,000 20,728 39 3,852,865

1,937 13,514 187,671 1,500 4,843,690

4,158 4,265 276,953 1,864,823

25,782 42,262 1,000 29,106 187,671 621,474 14,532,337

33,102

-

-

33,102

-

341,420

33,313

374,733

3,545,070 (1,271,553)

10,041,760 (6,932,631)

762,255 116,896 (659,822)

14,349,085 116,896 (8,864,006)

2,306,619

3,450,549

252,642

6,009,810

6,159,484

8,294,239

2,117,465

20,542,147

10,587 10,587

9,703 9,703

5,362 5,362

949,405 949,405

$

6,170,071 $

8,303,942 $

2,122,827 $

21,491,552

$

442,552 $ 40,434 635 483,621

95,426 $ 17,535 2,025 114,986

132,009 $ 23,903 276 700 22,838 179,726

696,465 90,576 276 213,284 635 22,838 1,144,701 2,168,775

Noncurrent Liabilities: Total Other Postemployment Benefits Liability Lease Liability Payable Compensated Absences Total Noncurrent Liabilities

37,982 37,982

41,655 41,655

13,830 75,603 89,433

3,256,902 75,603 1,232,043 4,564,548

Total Liabilities

521,603

156,641

269,159

6,733,323

DEFERRED INFLOWS OF RESOURCES Other Postemployment Benefits Deferred Inflow of Resource Related to Lease Receivable Total Deferred Inflows of Resources

5,401 32,247 37,648

4,934 4,934

2,731 2,731

484,778 32,247 517,025

Total Liabilities and Deferred Inflows of Resources

559,251

161,575

271,890

7,250,348

2,273,517 3,337,303 5,610,820

3,450,549 4,691,818 8,142,367

154,201 1,696,736 1,850,937

5,878,267 8,362,937 14,241,204

6,170,071 $

8,303,942 $

2,122,827 $

21,491,552

Total Noncurrent Assets Total Assets DEFERRED OUTFLOWS OF RESOURCES Other Post Employment Benefits Total Deferred Outflows of Resources Total Assets and Deferred Outflows of Resources LIABILITIES Current Liabilities: Accounts Payable Salaries Payable Lease Interest Payable Due to Other Governments Unearned Revenue Current Lease Liability Payable Current Portion of Compensated Absences Total Current Liabilities

NET POSITION Net Investment in Capital Assets Unrestricted Total Net Position Total Liabilities and Deferred Inflows of Resources and Net Position

$

141

City of Eden Prairie, Minnesota Internal Service Funds Combining Statement of Revenues Expenses and Changes in Net Position For the Year Ended December 31, 2022

Health & Benefits OPERATING REVENUE Charges for Services Rental Lease Interest Income Total Operating Revenues

$

Severance

Workers Compensation

Property Insurance

6,878,525 $ 6,878,525

219,586 $ 219,586

766,111 $ 766,111

771,030 771,030

6,845,379

122,568

57,789

57,788

-

-

-

15,466 6,860,845

122,568

939,753 997,542

709,352 767,140

17,680

97,018

(231,431)

3,890

-

-

-

-

17,680

97,018

(231,431)

3,890

(35,613) 9,870 (25,743)

(25,262) (25,262)

(2,468) 108,165 105,697

(5,262) (5,262)

Change in Net Position

(8,063)

71,756

(125,734)

(1,372)

Net Position - Beginning

(1,029,763)

(1,053,011)

358,057

425,210

232,323 $

423,838

OPERATING EXPENSE Personnel Services Supplies Supplies Cleaning Supplies Motor Fuel Tires Repair and Maintenance Supplies Contractual Services Contractual Services Software Janitorial Services Licenses, Permits, Taxes Repair and Maintenance Utilities User Charges Capital Under $25,000 Total Operating Expenses

-

Operating Income (Loss) Before Depreciation/Amortization Depreciation/Amortization Operating Income (Loss) Before Nonoperating Revenue / Expense NONOPERATING REVENUE (EXPENSE) Grants Investment Income Lease Interest Expense Gain/(Loss) on Disposition of Capital Assets Contributions Miscellaneous Total Nonoperating Revenues (Expenses)

Net Position - Ending

$

(1,037,826) $

(981,255) $

142

City of Eden Prairie, Minnesota Internal Service Funds Combining Statement of Revenues Expenses and Changes in Net Position For the Year Ended December 31, 2022

Facilities OPERATING REVENUE Charges for Services Rental Lease Interest Income Total Operating Revenues

$

Fleet

Information Technology

Total

5,559,749 $ 847,308 1,090 6,408,147

3,035,562 $ 3,035,562

3,194,079 $ 3,194,079

20,424,642 847,308 1,090 21,273,040

1,178,306

604,168

733,302

9,599,300

6,468 116,281 10,828 563,656

64,562 484,393 83,917 329,568

5,962 -

76,992 116,281 495,221 83,917 893,224

1,742,268 886,471 190,443 1,724,757 21,606 285,774 6,726,858

19,546 3,799 332,269 3,784 26,023 1,952,029

147,851 1,605,732 190,190 251,124 2,934,161

3,574,236 1,605,732 886,471 194,242 332,269 1,918,731 21,606 562,921 20,361,143

(318,711)

1,083,533

259,918

911,897

79,871

815,542

117,518

1,012,931

(398,582)

267,991

142,400

(101,034)

103,645 (77,791) 22,000 18,320 66,174

(79,410) 56,477 38,912 15,979

(24,933) (2,873) 21,529 (6,277)

103,645 (250,739) (2,873) 56,477 22,000 196,796 125,306

Change in Net Position

(332,408)

283,970

136,123

24,272

Net Position - Beginning

5,943,228

7,858,397

1,714,814

14,216,932

5,610,820 $

8,142,367 $

1,850,937

OPERATING EXPENSE Personnel Services Supplies Supplies Cleaning Supplies Motor Fuel Tires Repair and Maintenance Supplies Contractual Services Contractual Services Software Janitorial Services Licenses, Permits, Taxes Repair and Maintenance Utilities User Charges Capital Under $25,000 Total Operating Expenses Operating Income (Loss) Before Depreciation/Amortization Depreciation/Amortization Operating Income (Loss) Before Nonoperating Revenue / Expense NONOPERATING REVENUE (EXPENSE) Grants Investment Income Lease Interest Expense Gain/(Loss) on Disposition of Capital Assets Contributions Miscellaneous Total Nonoperating Revenues (Expenses)

Net Position - Ending

$

$

14,241,204

143

City of Eden Prairie, Minnesota Internal Service Funds Combining Statement of Cash Flows For the Year Ended December 31, 2022

Health & Benefits CASH FLOWS FROM OPERATING ACTIVITIES Receipts From Customers Payments to Vendors Payments to Employees Other Receipts Net Cash Provided (Used) By Operating Activities

$

CASH FLOWS FROM INVESTING ACTIVITIES Investment Income Net Cash Provided (Used) By Investing Activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Grants Miscellaneous Net Cash Provided (Used) By Noncapital Financing Activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITES Acquisition and Construction of Capital Assets Proceeds From Sale of Equipment Principal Paid on Debt Interest and Fiscal Agent Paid on Debt Net Cash Provided (Used) By Capital and Related Financing Activities

Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents, January 1 Cash and Cash Equivalents, December 31

$

Severance

Workers Compensation

Property Insurance

6,880,386 $ (69,118) (6,757,056) 54,212

219,586 $ (133,112) 86,474

766,111 $ (986,900) (57,730) (278,519)

771,030 (726,898) (57,729) (13,597)

(35,890) (35,890)

(24,691) (24,691)

(2,013) (2,013)

(5,268) (5,268)

9,870 9,870

-

108,165 108,165

-

-

-

-

-

28,192

61,783

(172,367)

(18,865)

1,830,202

1,334,896

230,308

305,056

1,858,394 $

1,396,679 $

57,941 $

286,191

144

City of Eden Prairie, Minnesota Internal Service Funds Combining Statement of Cash Flows For the Year Ended December 31, 2022

Page 1 of 2

Facilities

Fleet

Information Technology

5,532,330 $ (5,735,026) (1,171,254) 846,540 (527,410)

3,034,936 $ (1,389,170) (602,477) 1,043,289

3,189,921 $ (2,237,958) (729,609) 222,354

20,394,300 (11,145,070) (9,508,967) 846,540 586,803

CASH FLOWS FROM INVESTING ACTIVITIES Investment Income Net Cash Provided (Used) By Investing Activities

(77,335) (77,335)

(80,365) (80,365)

(25,378) (25,378)

(250,940) (250,940)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Grants Miscellaneous Net Cash Provided (Used) By Noncapital Financing Activities

103,645 40,320 143,965

38,912 38,912

21,529 21,529

103,645 218,796 322,441

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITES Acquisition and Construction of Capital Assets Proceeds From Sale of Equipment Principal Paid on Debt Interest and Fiscal Agent Paid on Debt Net Cash Provided (Used) By Capital and Related Financing Activities

(153,052) (153,052)

(527,990) 66,100 (461,890)

(15,722) (18,456) (2,596) (36,774)

(696,764) 66,100 (18,456) (2,596) (651,716)

Net Increase (Decrease) in Cash and Cash Equivalents

(613,832)

539,946

181,731

6,588

Cash and Cash Equivalents, January 1

4,421,154

4,099,122

1,397,716

13,618,454

3,807,322 $

4,639,068

1,579,447 $

13,625,042

CASH FLOWS FROM OPERATING ACTIVITIES Receipts From Customers Payments to Vendors Payments to Employees Other Receipts Net Cash Provided (Used) By Operating Activities

Cash and Cash Equivalents, December 31

$

$

$

Total

145

Internal Service Funds Combining Statement of Cash Flows For the Year Ended December 31, 2022

Health & Benefits RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED)

BY OPERATING ACTIVITIES: Operating Income (Loss) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Depreciation/Amortization (Increase) Decrease in Assets: Accounts Receivable Lease Receivable Special Assessments Receivable Due From Other Governments Inventory Prepaid Items Other Post Employment Benefits Increase (Decrease) in Liabilities: Accounts Payable Salaries Payable Unearned Revenue Due to Other Governments Other Post Employment Benefits Compensated Absences Net Cash Provided (Used) by Operating Activities

$

$

Severance

Workers Compensation

Property Insurance

17,680 $

97,018 $

(231,431) $

3,890

-

-

-

-

1,861 (6,687) (26,715) (540,854)

-

(47,147) (64)

(12,936) (64)

(29,061) 8,811 629,177 -

5,358 (15,902)

49 74 -

(4,610) 49 74 -

54,212 $

86,474 $

(278,519) $

(13,597)

146

Internal Service Funds Combining Statement of Cash Flows For the Year Ended December 31, 2022

Page 2 of 2

Facilities RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED)

BY OPERATING ACTIVITIES: Operating Income (Loss) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Depreciation/Amortization (Increase) Decrease in Assets: Accounts Receivable Lease Receivable Special Assessments Receivable Due From Other Governments Inventory Prepaid Items Other Post Employment Benefits Increase (Decrease) in Liabilities: Accounts Payable Salaries Payable Unearned Revenue Due to Other Governments Other Post Employment Benefits Compensated Absences Net Cash Provided (Used) by Operating Activities

$

$

Information Technology

Fleet

(398,582) $

267,991

79,871

$

Total

142,400 $

(101,034)

815,542

117,518

1,012,931

33,654 (1,858) (20,728) (39) (5,936)

(626) (36,173) (4,500)

(4,158) (73,919) (3,148)

30,731 (1,858) (27,415) (36,173) (160,756) (554,566)

(165,347) 6,082 (61,073) (360) 6,906 -

(5,536) 957 400 5,234 -

38,710 3,179 (1,890) 3,662 -

(165,844) 15,674 (61,073) 6,961 645,127 (15,902)

(527,410) $

1,043,289 $

222,354 $

586,803

147

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148

City of Eden Prairie, Minnesota Custodial Funds Custodial Funds

Custodial funds are used to account for assets held by the government as an agent for individuals, private organizations, other governments, or other funds.

WAFTA – This fund accounts for the collection and remittance of expenses pertaining to the fire training facility owned by 11 member cities.

MCES - This fund accounts for the collection and remittance of sewer availability charges to the Metropolitan Council Environmental Services.

Escrow - This fund is used to account for evidence held by the Police Department.

I-494 Corridor Commission – This fund accounts for the collection and remittance of expenses pertaining to the policy work and employer and commuter outreach performed by staff of the I-494 Corridor Commission. The Commission is funded by member cities, a federal Congestion Mitigation & Air Quality grant, and a Telework state grant.

149

City of Eden Prairie, Minnesota Fiduciary Funds Statement of Fiduciary Net Position December 31, 2022

WAFTA ASSETS Cash and Investments Due from Other Governments Prepaids Total Assets

LIABILITIES Accounts Payable Due to Other Governments Total Liabilities

NET POSITION Restricted For: Police Evidence Cash Western Area Fire Training Costs I-494 Corridior Commission Costs

Custodial Funds Total

MCES

Escrow

I-494

$ 340,656 $ $ 340,656 $

4,970 $ 4,970 $

17,914 $ 17,914 $

242,187 $ 64,053 6,433 312,673 $

605,727 64,053 6,433 676,213

$

$ 4,970 4,970 $

-

$

2,038 $ 2,038 $

2,038 4,970 7,008

-

17,914 $ 17,914 $

$ 310,635 310,635 $

17,914 340,656 310,635 669,205

$ $

-

$

$ 340,656 $ 340,656 $ $

$

$

$

150

City of Eden Prairie, Minnesota Fiduciary Funds Statement of Changes in Fiduciary Net Position For the Year Ended December 31, 2022

WAFTA ADDITIONS Grants Memberships Investments Earnings Building Permits Customers Deposits Other Total Additions

$

DEDUCTIONS Personnel Services Supplies Contractual Services Total Deductions Net Increase (Decrease) in Fiduciary Net Position Net Position - Beginning Net Position - Ending

$

MCES

Escrow

$ $ 22,000 9,824 976,605 31,824 976,605

-

$

I-494

Custodial Funds Total

303,468 $ 158,178 10,451 67 472,164

303,468 180,178 20,275 976,605 67 1,480,593

929 929

976,605 976,605

1,357 1,357

407,681 21,826 160,588 590,095

407,681 21,826 1,139,479 1,568,986

30,895

-

(1,357)

(117,931)

(88,393)

309,761

-

19,271

428,566

757,598

340,656 $

-

17,914 $

310,635 $

669,205

$

151

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152

STATISTICAL SECTION

153

City of Eden Prairie, Minnesota Statistical Section (Unaudited)

This part of the City of Eden Prairie’s annual comprehensive financial report presents detailed information as a context for understanding this year’s financial statements, note disclosures, and supplementary information. This information has not been audited by the independent auditor.

Contents

Page --

Financial Trends....................................................................................................................................................155-160 These tables contain trend information that may assist the reader in assessing the City’s current financial performance by placing it in historical perspective.

Revenue Capacity........................................................................................................................................... 161-164 These tables contain information that may assist the reader in assessing the viability of the City’s most significant “own-source” revenue, the property tax.

Debt Capacity..........................................................................................................................................................165-168 These tables present information that may assist the reader in analyzing the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

Demographic and Economic Information ...................................................................................................169-170 These tables offer economic and demographic indicators that are commonly used for financial analysis and that can increase one’s understanding of the City’s present and ongoing financial status.

Operating Information ........................................................................................................................................171-173 These tables contain service and infrastructure indicators that can increase one’s understanding of how the information in the City’s financial statements relates to the services the City provides and the activities it performs.

Source:

Unless otherwise noted, the information in these tables is derived from the annual comprehensive financial reports for the relevant year.

154

City of Eden Prairie, Minnesota Government-wide Net Position by Category (accrual basis of accounting) Last Ten Years 2013

GOVERNMENTAL ACTIVITIES Net Investment in Capital Assets Restricted Unrestricted Governmental Activities Net Position

$

2014

2015

2016

2017

2018

2019

2020

2021

2022

177,981,232 $ 6,175,774 57,276,140 241,433,146

181,975,764 $ 13,773,554 60,341,383 256,090,701

189,217,647 $ 23,112,719 31,911,221 244,241,587

191,675,648 $ 26,405,621 21,694,457 239,775,726

195,150,960 $ 23,186,863 29,707,881 248,045,704

198,061,704 $ 28,343,449 29,069,260 255,474,413

204,564,164 $ 20,531,807 33,229,904 258,325,875

207,181,863 $ 18,319,451 44,514,934 270,016,248

209,098,130 $ 16,430,792 59,396,843 284,925,765

212,853,068 16,290,155 65,028,175 294,171,398

BUSINESS-TYPE ACTIVITIES Net Investment in Capital Assets Unrestricted Business-Type Activities Net Position

132,801,426 15,634,317 148,435,743

131,144,305 14,438,525 145,582,830

128,130,738 14,792,266 142,923,004

125,479,624 16,155,406 141,635,030

121,073,703 19,142,578 140,216,281

116,820,164 22,590,071 139,410,235

114,243,631 25,296,848 139,540,479

120,560,158 22,267,651 142,827,809

114,898,693 27,910,252 142,808,945

105,257,847 33,151,502 138,409,349

PRIMARY GOVERNMENT Net Investment in Capital Assets Restricted Unrestricted Primary Government Net Position

310,782,658 6,175,774 72,910,457 389,868,889 $

313,120,069 13,773,554 74,759,133 401,652,756 $

317,348,385 23,112,719 46,703,487 387,164,591 $

317,155,272 26,405,621 37,849,863 381,410,756 $

316,224,663 23,186,863 48,850,459 388,261,985 $

314,881,868 28,343,449 51,659,331 394,884,648 $

318,807,795 20,531,807 58,526,752 397,866,354 $

327,742,021 18,319,451 66,782,585 412,844,057 $

323,996,823 16,430,792 87,307,095 427,734,710 $

318,110,915 16,290,155 98,179,677 432,580,747

$

155

City of Eden Prairie, Minnesota Changes in Net Position-Total (accrual basis of accounting) Last Ten Years Source

EXPENSES Governmental Activities Business-type Activities Total Expenses

2013

$

2014

2015

2016

2017

2018

2019

2020

2021

2022

58,843,210 $ 29,692,124 88,535,334

57,169,862 $ 29,820,423 86,990,285

65,402,641 $ 27,924,045 93,326,686

63,294,429 $ 30,170,309 93,464,738

60,402,652 $ 28,922,085 89,324,737

59,821,696 $ 30,324,121 90,145,817

67,623,543 $ 30,033,843 97,657,386

60,556,153 $ 30,124,648 90,680,801

61,204,663 $ 69,774,367 33,758,571 36,179,924 94,963,234 105,954,291

PROGRAM REVENUES Governmental Activities Business-type Activities Total Program Revenues

16,622,065 32,870,365 49,492,430

33,865,654 28,335,144 62,200,798

31,911,922 27,330,069 59,241,991

18,955,697 29,392,647 48,348,344

19,086,961 28,144,288 47,231,249

23,707,803 30,391,136 54,098,939

26,795,160 29,543,322 56,338,482

26,013,884 33,416,255 59,430,139

29,841,902 35,519,042 65,360,944

29,137,248 36,810,235 65,947,483

Net (Expense) Revenue

(39,042,904)

(24,789,487)

(34,084,695)

(45,116,394)

(42,093,488)

(36,046,878)

(41,318,904)

(31,250,662)

(29,602,290)

(40,006,808)

38,467,292 (1,241,335) 37,225,957

37,961,763 (1,367,634) 36,594,129

37,694,597 336,534 38,031,131

39,872,871 (510,312) 39,362,559

41,618,266 (640,952) 40,977,314

43,542,602 (873,061) 42,669,541

43,679,845 620,765 44,300,610

46,232,642 (4,277) 46,228,365

46,272,278 (1,779,335) 44,492,943

49,882,752 (5,029,907) 44,852,845

(1,816,947) $

11,804,642 $

3,946,436 $

(5,753,835) $

(1,116,174) $

6,622,663 $

2,981,706 $

14,977,703 $

14,890,653 $

4,846,037

GENERAL REVENUES AND TRANSFERS Governmental Activities Business-type Activities Total General Revenues and Transfers Change in Net Position

$

156

City of Eden Prairie, Minnesota Changes in Net Position-Governmental Activities (accrual basis of accounting) Last Ten Years SOURCES EXPENSES Administration Community Development Police Fire Public Works Parks and Recreation Interest on Long Term Debt Total Expenses

2013

$

2014

2015

2016

2017

2018

2019

2020

2021

2022

5,854,425 $ 5,678,694 12,846,206 5,724,342 16,288,862 11,113,811 1,336,870 58,843,210

4,921,044 $ 5,368,762 13,534,150 6,093,772 13,321,459 12,947,006 983,669 57,169,862

5,579,070 $ 7,730,338 14,118,565 6,324,124 17,652,163 12,862,402 1,135,979 65,402,641

5,003,957 $ 5,692,215 17,793,494 7,542,196 11,035,229 15,133,618 1,093,720 63,294,429

4,611,732 $ 6,222,326 15,769,976 6,896,697 10,616,604 15,274,479 1,010,838 60,402,652

5,092,886 $ 4,942,029 14,365,502 6,406,404 10,098,667 18,008,795 907,413 59,821,696

4,827,249 $ 4,771,490 15,021,975 7,191,071 19,518,141 15,458,406 835,211 67,623,543

5,554,966 $ 4,767,416 15,189,099 6,131,926 14,981,533 13,135,532 795,681 60,556,153

4,679,960 $ 5,198,300 14,150,218 6,474,736 14,706,067 15,218,460 776,922 61,204,663

5,751,886 5,986,996 17,956,084 5,689,004 16,584,584 17,931,630 (125,817) 69,774,367

1,176,919 122,263 1,223,836

1,314,271 73,929 1,130,020

1,132,606 93,195 1,063,129

1,442,068 152,708 1,131,502

1,173,177 127,248 1,039,936

1,079,151 161,918 1,115,447

1,052,388 180,443 1,103,269

982,079 142,353 847,564

1,109,882 124,707 989,466

897,992 85,127 1,022,601

Fire Public Works Parks and Recreation Operating Grants and Contributions Capital Grants and Contributions Total Program Revenues

4,236,114 497,720 5,005,917 1,459,859 2,899,437 16,622,065

3,502,952 411,144 5,187,195 1,741,945 20,504,198 33,865,654

2,571,830 975,701 5,229,060 1,818,333 19,028,068 31,911,922

2,315,725 330,709 5,513,331 1,614,263 6,455,391 18,955,697

2,240,351 218,292 6,091,247 1,707,453 6,489,257 19,086,961

3,505,901 274,679 5,854,094 2,457,482 9,259,131 23,707,803

3,580,095 1,070,746 6,004,835 2,461,663 11,341,721 26,795,160

3,609,503 329,277 2,445,386 7,376,216 10,281,506 26,013,884

4,696,599 214,521 5,559,244 6,509,714 10,637,769 29,841,902

3,948,568 336,140 7,052,917 6,798,808 8,995,095 29,137,248

Net (Expense) Revenue

(42,221,145)

(23,304,208)

(33,490,719)

(44,338,732)

(41,315,691)

(36,113,893)

(40,828,383)

(34,542,269)

(31,362,761)

(40,637,119)

32,674,010 3,535,459 -

32,781,740 3,070,936 -

33,708,909 3,249,355 -

34,217,549 3,357,247 -

35,405,930 3,570,703 -

37,338,583 2,320,447 -

38,203,969 1,936,046 -

39,864,882 2,193,637 -

40,478,282 2,681,357 -

43,333,223 2,750,448 -

862,288 137,890 1,257,645 38,467,292

483,914 210,373 1,414,800 37,961,763

741,828 272,989 (278,484) 37,694,597

1,268,257 418,849 610,969 39,872,871

1,545,745 334,305 761,583 41,618,266

1,644,788 988,382 1,250,402 43,542,602

1,718,391 1,747,241 74,198 43,679,845

1,788,293 1,651,912 733,918 46,232,642

1,836,431 (335,188) 1,611,396 46,272,278

971,536 (1,511,717) 4,339,262 49,882,752

(3,753,853) $

14,657,555 $

4,203,878 $

(4,465,861) $

7,428,709 $

2,851,462 $

11,690,373 $

14,909,517 $

9,245,633

PROGRAM REVENUES Charges for Services Administration Community Development Police

GENERAL REVENUES AND TRANSFERS Taxes Property Taxes Tax Increment Gain (Loss) on Sale of Capital Assets Grants and Contributions Not Restricted to Specific Programs Investment Income Transfers Total General Revenues and Transfers Change in Net Position

$

302,575 $

157

City of Eden Prairie, Minnesota Changes in Net Position-Business-type Activities (accrual basis of accounting) Last Ten Years SOURCE

EXPENSES Water Wastewater Stormwater Liquor Total Expenses

2013

$

PROGRAM REVENUES Charges for Services Water Wastewater Stormwater Liquor Operating Grants and Contributions Capital Grants and Contributions Total Program Revenues Net (Expense) Revenue GENERAL REVENUES AND TRANSFERS Grants and Contributions Not Restricted to Specific Programs Investment Income Transfers Total General Revenues and Transfers Change in Net Position

$

2014

2015

2016

2017

2018

2019

2020

2021

2022

9,564,793 $ 6,532,297 2,420,535 11,174,499 29,692,124

9,856,001 $ 6,403,264 2,545,818 11,015,340 29,820,423

8,905,768 $ 6,565,966 2,082,594 10,369,717 27,924,045

10,526,151 $ 7,407,149 1,793,588 10,443,421 30,170,309

9,686,669 $ 6,913,276 2,437,573 9,884,567 28,922,085

10,460,599 $ 7,469,070 2,351,367 10,043,085 30,324,121

9,708,148 $ 7,678,652 2,413,725 10,233,318 30,033,843

9,481,491 $ 7,496,256 2,538,257 10,608,644 30,124,648

12,433,736 $ 7,504,396 2,894,253 10,926,186 33,758,571

13,549,136 8,375,360 3,170,444 11,084,984 36,179,924

9,659,385 6,265,514 1,499,405 12,404,920 3,041,141 32,870,365

7,315,328 5,566,951 1,656,817 12,216,404 131,600 1,448,044 28,335,144

7,162,740 5,661,990 1,933,572 11,312,822 133,195 1,125,750 27,330,069

7,675,337 5,789,584 2,095,629 10,747,887 155,041 2,929,169 29,392,647

7,846,540 5,863,517 2,400,254 10,501,449 238,392 1,294,136 28,144,288

8,422,155 6,356,014 2,786,754 10,848,725 20,665 1,956,823 30,391,136

7,699,582 6,726,548 3,125,251 10,977,643 69,429 944,869 29,543,322

8,987,364 6,895,764 3,376,785 11,711,560 117,123 2,327,659 33,416,255

10,682,945 7,460,750 3,631,369 11,923,359 68,185 1,752,434 35,519,042

11,008,837 7,517,471 3,770,562 12,067,226 107,493 2,338,646 36,810,235

3,178,241

(1,485,279)

(593,976)

(777,662)

(777,797)

67,015

(490,521)

3,291,607

1,760,471

630,311

-

-

-

-

-

-

694,963 (74,198) 620,765

729,641 (733,918) (4,277)

130,244 $

3,287,330 $

-

-

16,310 (1,257,645) (1,241,335)

47,166 (1,414,800) (1,367,634)

58,050 278,484 336,534

100,657 (610,969) (510,312)

120,631 (761,583) (640,952)

1,936,906 $

(2,852,913) $

(257,442) $

(1,287,974) $

(1,418,749) $

377,341 (1,250,402) (873,061) (806,046) $

(167,939) (1,611,396) (1,779,335) (18,864) $

(690,645) (4,339,262) (5,029,907) (4,399,596)

158

City of Eden Prairie, Minnesota Fund Balances-Governmental Funds Last Ten Years 2013

GENERAL FUND Nonspendable Restricted Unassigned Subtotal General Fund

$

General Fund % Change

24,702 $ 21,509,541 21,534,243

2014

2015

2016

39,844 $ 22,947 $ 35,792 $ 286,942 22,292,187 22,859,810 23,171,318 22,332,031 22,882,757 23,494,052

2017

30,037 $ 22,592,160 22,622,197

2018

103,845 $ 24,438,689 24,542,534

2019

69,611 $ 11,148 25,354,724 25,435,483

2020

94,824 $ 10,572 26,197,429 26,302,825

2021

187,378 $ 29,132,535 29,319,913

2022

180,596 33,252,089 33,432,685

2.0%

3.7%

2.5%

2.7%

(3.7%)

8.5%

3.6%

3.4%

11.5%

14.0%

ALL OTHER GOV'T FUNDS Nonspendable Restricted Assigned Unassigned Subtotal All Other Govt' Funds

538,620 20,876,780 28,275,391 (3,859,192) 45,831,599

542,619 23,065,276 28,510,594 (6,295,915) 45,822,574

1,938,628 10,891,614 22,935,181 (6,572,969) 29,192,454

250,970 11,676,546 19,799,434 (5,110,657) 26,616,293

250,290 7,680,713 25,270,027 (2,587,713) 30,613,317

227,197 11,577,849 25,215,825 (4,512,314) 32,508,557

221,019 13,330,982 24,996,835 (2,218,785) 36,330,051

227,706 20,224,326 31,958,975 (3,741,963) 48,669,044

266,408 26,854,736 34,757,827 (2,227,264) 59,651,707

298,312 15,106,171 36,717,748 (1,458,107) 50,664,124

TOTAL GOVT' FUNDS Nonspendable Restricted Assigned Unassigned Total Govt' Funds

563,322 20,876,780 28,275,391 17,650,349 67,365,842 $

582,463 23,065,276 28,510,594 15,996,272 68,154,605 $

1,961,575 10,891,614 22,935,181 16,286,841 52,075,211 $

286,762 11,963,488 19,799,434 18,060,661 50,110,345 $

280,327 7,680,713 25,270,027 20,004,447 53,235,514 $

331,042 11,577,849 25,215,825 19,926,375 57,051,091 $

290,630 13,342,130 24,996,835 23,135,939 61,765,534 $

322,530 20,234,898 31,958,975 22,455,466 74,971,869 $

453,786 26,854,736 34,757,827 26,905,271 88,971,620 $

478,908 15,106,171 36,717,748 31,793,982 84,096,809

(23.6%)

(3.8%)

All Govt' Funds % Change

$

(8.9%)

1.2%

6.2%

7.2%

8.3%

21.4%

18.7%

(5.5%)

159

City of Eden Prairie, Minnesota Changes in Fund Balances-Governmental Funds (modified accrual basis of accounting) Last Ten Years SOURCE REVENUES Taxes and Special Assessments Licenses and Permits Intergovernmental Revenue Charges for Services Fines and Forfeits Investment Income Lease Income Miscellaneous Revenue Total Revenues

2013

$

EXPENDITURES Administration Community Development Police Fire Public Works Parks and Recreation Capital Outlay Miscellaneous Debt Service Principal Interest Other Total Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses)

Net Change in Fund Balance Debt Service as a % of Noncapital Expenditures

$

2014

2015

2016

2017

2018

2019

2020

2021

2022

38,119,497 $ 7,956,114 1,886,954 4,532,269 420,552 140,303 2,265,545 55,321,234

37,189,846 $ 7,084,975 8,582,993 4,841,857 406,210 216,895 1,647,534 59,970,310

44,259,324 $ 6,686,477 6,299,840 4,864,818 344,384 276,176 7,098,463 69,829,482

41,169,891 $ 6,017,523 2,362,417 5,325,932 346,823 417,997 3,249,117 58,889,700

42,262,252 $ 5,810,945 7,787,877 5,744,494 347,285 310,433 2,835,760 65,099,046

42,826,126 $ 7,938,046 2,980,678 5,976,951 416,028 887,536 4,853,894 65,879,259

42,964,367 $ 9,054,415 14,691,473 6,132,338 370,944 1,523,825 4,684,221 79,421,583

44,264,894 $ 8,351,257 10,676,031 2,464,886 231,166 1,458,094 5,166,785 72,613,113

46,176,740 $ 9,207,247 11,176,877 5,680,570 323,965 (279,195) 2,519,176 74,805,380

46,337,423 8,639,380 13,417,354 7,128,820 297,682 (1,264,760) 88,712 2,113,950 76,758,561

3,634,004 5,661,300 12,696,678 5,300,536 5,685,295 9,949,401 13,946,660 7,996

3,946,531 5,224,034 13,079,303 5,664,111 5,915,849 10,255,620 21,000,674 25,547

3,809,732 7,666,282 13,704,796 5,754,747 5,869,727 10,571,858 31,265,363 39,283

4,280,665 5,536,030 13,917,677 5,699,308 5,929,171 11,008,845 15,133,476 49,954

4,036,821 6,102,434 14,183,797 6,145,202 6,194,054 11,309,009 8,779,760 40,019

4,467,514 5,143,042 14,672,312 6,058,619 5,997,312 12,176,110 9,816,539 66,154

4,455,624 4,762,403 15,354,150 5,854,829 6,010,535 12,629,951 24,076,873 65,245

4,547,110 4,975,185 15,537,807 6,378,338 6,090,297 11,137,410 13,411,943 98,137

4,652,491 5,399,337 16,332,800 6,421,157 6,207,912 12,360,785 12,224,168 -

5,299,977 5,822,510 17,306,528 6,841,419 6,640,329 13,684,180 14,365,404 -

3,182,019 1,480,194 8,937 61,553,020

3,178,107 1,127,862 144,530 69,562,168

3,974,224 1,304,947 22,517 83,983,476

3,415,369 1,148,544 66,043 66,185,082

5,657,828 1,068,403 23,500 63,540,827

3,869,824 975,631 16,848 63,259,905

3,436,793 895,435 10,838 77,552,676

3,743,793 815,351 64,875 66,800,246

4,956,848 688,156 137,719 69,381,373

2,696,989 578,520 8,733 73,244,589

(6,231,786)

(9,591,858)

(14,153,994)

(7,295,382)

1,558,219

2,619,354

1,868,907

5,812,867

5,424,007

3,513,972

(360,000)

10,380,621

(1,925,400)

5,330,516

1,566,950

1,196,223

2,845,536

7,393,468

8,575,744

(8,388,783)

(16,079,394) $

(1,964,866) $

3,125,169 $

3,815,577 $

4,714,443 $

13,206,335 $

13,999,751 $

(4,874,811)

11.4%

8.0%

6.4%

(6,591,786) $

8.0%

788,763 $

7.5%

7.9%

8.1%

7.2%

8.3%

4.7%

160

City of Eden Prairie, Minnesota Assessed/Tax Capacity Value and Estimated Market Value of Property Last Ten Years Tax Capacity

Tax Payable Dec. 31

2013 $ 2014 2015 2016 2017 2018 2019 2020 2021 2022

Personal Property

Residential

Apartments

Commercial & Industrial

Farm & Other

1,480,936 $ 1,536,795 1,581,718 1,659,596 1,778,971 1,317,656 1,995,250 1,947,874 2,051,756 1,161,844

59,466,380 $ 59,699,056 63,907,631 68,205,510 69,180,068 72,149,265 75,815,471 79,500,899 80,291,885 83,981,033

5,959,818 $ 6,723,391 7,045,373 7,667,144 8,887,941 9,758,671 10,394,693 11,243,928 12,786,587 13,846,793

36,840,974 $ 37,928,219 38,765,135 40,928,173 41,710,414 41,957,995 42,523,027 43,474,992 45,576,586 45,217,108

51,531 $ 75,620 49,597 45,052 44,200 43,813 44,602 46,519 46,926 47,063

Tax Capacity Before Deductions

Less: Fiscal Disparities

Less: Tax Increment

Total Assessed Value

103,799,639 $ 105,963,081 111,349,454 118,505,475 121,601,594 125,227,400 130,773,043 136,214,212 140,753,740 144,253,841

14,637,037 $ 14,732,733 15,719,259 15,104,618 16,281,768 16,415,817 16,343,594 17,538,211 17,487,960 18,644,565

2,990,202 $ 3,137,785 2,933,721 3,126,571 3,209,405 2,208,824 1,869,603 2,121,042 2,669,795 2,767,772

86,172,400 88,092,563 92,696,474 100,274,286 102,110,421 106,602,759 112,559,846 116,554,959 120,595,985 122,841,504

17.0% 16.7% 17.0% 15.1% 15.9% 15.4% 14.5% 15.0% 14.5% 15.2%

3.5% 3.6% 3.2% 3.1% 3.1% 2.1% 1.7% 1.8% 2.2% 2.3%

Total Direct Tax Rate 34.617 $ 34.709 33.954 32.327 32.667 32.526 31.690 31.676 31.589 32.475

Estimated Market Value 8,483,358,400 8,627,122,700 9,078,339,200 9,633,243,700 9,872,802,500 10,209,614,900 10,663,264,100 11,121,835,000 11,432,806,600 11,797,011,500

Annual % Change (1.9%) 1.7% 5.2% 6.1% 2.5% 3.4% 4.4% 4.3% 2.8% 3.2%

Percentages 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

1.4% 1.5% 1.4% 1.4% 1.5% 1.1% 1.5% 1.4% 1.5% 0.8%

57.3% 56.3% 57.4% 57.6% 56.9% 57.6% 58.0% 58.4% 57.0% 58.2%

5.7% 6.3% 6.3% 6.5% 7.3% 7.8% 7.9% 8.3% 9.1% 9.6%

35.5% 35.8% 34.8% 34.5% 34.3% 33.5% 32.5% 31.9% 32.4% 31.3%

0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Source: City Assessing Department and Hennepin County

161

City of Eden Prairie, Minnesota Direct and Overlapping Property Tax Rate Last Ten Years

Tax Capacity Rates

Direct Rates Year Ended Dec. 31 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

City Rate 34.397 34.493 33.749 32.137 32.480 32.348 31.521 31.513 31.432 32.322

HRA Rate 0.220 0.216 0.205 0.190 0.187 0.178 0.169 0.163 0.157 0.153

Total City Rate 34.617 34.709 33.954 32.327 32.667 32.526 31.690 31.676 31.589 32.475

Hennepin County 49.461 49.959 46.398 45.356 44.087 42.808 41.861 41.084 38.210 38.535

Special Districts (1) 10.089 10.561 9.785 9.530 9.319 8.973 8.550 8.219 7.813 7.849

School District #270 29.730 32.358 30.340 28.514 25.611 29.035 27.022 27.190 26.478 26.783

Overlapping Rates School School District District #272 #276 29.067 24.487 27.817 24.374 22.030 25.093 20.948 22.887 21.865 22.770 20.525 23.133 20.756 21.209 21.555 21.167 21.717 20.923 20.995 21.002

Watershed Watershed District District #1 #2 1.394 0.634 1.490 0.759 1.315 0.686 1.233 0.598 1.257 0.718 1.204 0.659 1.164 0.527 1.111 0.574 1.020 0.550 0.981 0.541

Watershed District #4 1.561 1.880 1.855 1.745 1.992 2.269 2.204 2.160 1.992 1.968

Market Value Rates

Year Ended Dec. 31 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

City Direct Rate 0.0146 0.0122 0.0100 0.0091 0.0089 0.0086 0.0080 0.0077 0.0077 0.0077

Overlapping Rates School School School District District District #270 #272 #276 0.162 0.165 0.246 0.197 0.167 0.270 0.179 0.244 0.264 0.187 0.231 0.301 0.180 0.220 0.300 0.150 0.229 0.303 0.147 0.222 0.340 0.162 0.209 0.339 0.144 0.201 0.325 0.140 0.205 0.312

(1) Special Districts include Metropolitan Council, Regional Transit Board, Metropolitan Mosquito Control, County Park Museum, & Hennepin Suburban Parks 162

City of Eden Prairie, Minnesota Principal Property Taxpayers For the Year Ended December 31, 2022 and 2013 2022

Tax Capacity

Taxpayer United Healthcare Serv. Inc. (United Healthcare) FPACP3 Eden LLC (Arrive Eden Prairie Apts) WPT Land 2 LP (Kroll Ontrack) Reep-MF Fountain PL MN LLC (Fountain Place Apts) Eden Prairie Center LLC ( Eden Prairie Mall)(Part of) Virtus Technology MOB LLC RH Eden Prairie LLC (Renew Apts) TP Elevate LLC ( Elevate Apts) Park at City West Apartments FPACP3 Watertower LLC (Watertower Apts)

2,639,250 1,836,263 1,713,180 1,168,752 1,078,910 897,190 839,188 836,105 700,738 653,650

1.8% 1.3% 1.2% 0.8% 0.7% 0.6% 0.6% 0.6% 0.5% 0.5%

Total Principal Taxpayers

12,363,226

All Other Taxpayers Total

$

Percentage of Total Tax Capacity

2013 Tax Capacity

Taxpayer Liberty Property Limited Partnership Eden Prairie Mall LLC AGNL Health CPE Holding 32607 LLC, Etal PRIT Core Realty Holdings LLC United Healthcare Serv Inc Lifetouch Inc. Gelco Corp.

Windsor Plaza LLC IRET Properties

$

Percentage of Total Tax Capacity

2,705,640 2,374,250 797,210 692,690 635,001 595,900 579,512 553,240 536,304 508,990

2.6% 2.3% 0.8% 0.7% 0.6% 0.6% 0.6% 0.5% 0.5% 0.5%

8.6%

9,978,737

9.6%

131,890,615

91.4%

93,820,902

90.4%

$ 144,253,841

100.0%

$ 103,799,639

100.0%

Source: City of Eden Prairie Assessing Department

163

City of Eden Prairie, Minnesota Property Tax Levies and Collections Last Ten Years Year Ended Dec. 31

Taxes Levied

2013 $ 32,749,320 $ 2014 33,220,111 2015 33,992,311 2016 34,860,874 2017 35,911,841 2018 37,349,820 2019 38,478,724 2020 39,821,102 2021 41,214,490 2022 43,302,554 Source: Hennepin County

Collected Within the Current Year Levy % of Amount Levy 32,519,542 32,881,280 33,675,337 34,512,035 35,480,742 37,319,709 38,167,003 39,406,040 40,801,607 42,959,885

99.30% $ 98.98% 99.07% 99.00% 98.80% 99.92% 99.19% 98.96% 99.00% 99.21%

Collections in Subsequent Years (104,201) $ (114,233) (150,676) (95,506) (47,615) (105,641) (18,075) (45,288) (28,794) -

Total Collections to Date % of Amount Levy 32,415,341 32,767,047 33,524,661 34,416,529 35,433,127 37,214,068 38,148,928 39,360,752 40,772,813 42,959,885

98.98% 98.64% 98.62% 98.73% 98.67% 99.64% 99.14% 98.84% 98.93% 99.21%

164

City of Eden Prairie, Minnesota Legal Debt Margin Last Ten Years 2013 Estimated Market Value

2014

2015

2016

2017

2018

2019

2020

2021

2022

$ 8,483,358,400 $ 8,627,122,700 $ 9,078,339,200 $ 9,633,243,700 $ 9,872,802,500 $ 10,209,614,900 $ 10,663,264,100 $ 11,121,835,000 $ 11,432,806,600 $ 11,797,011,500

Legal Debt Margin: Debt Limit: 3% of Market Value Amount of Debt Applicable to Debt Limit: General Obligation Bonds Tax Abatement Bonds Deductions: Amt Available for Repayment of Bonds (1) Total Debt Applicable to Limit Legal Debt Margin As a % of Debt Limit

$

254,500,752

258,813,681

272,350,176

288,997,311

296,184,075

306,288,447

319,897,923

333,655,050

342,984,198

353,910,345

29,464,744 -

17,906,759 17,598,269

13,499,232 17,575,537

12,036,705 17,552,806

10,648,354 17,180,074

9,211,190 16,697,342

8,191,241 16,229,610

13,227,541 15,306,879

4,891,000 27,653,135

3,673,000 13,168,934

2,650,363 26,814,381

1,715,750 33,789,278

2,032,109 29,042,660

2,303,895 27,285,616

2,336,132 25,492,296

2,296,320 23,612,212

2,682,004 21,738,847

8,730,968 19,803,452

14,651,101 17,893,034

1,407,790 15,434,144

227,686,371 $

225,024,403 $

243,307,516 $

261,711,695 $

270,691,779 $

282,676,235 $

298,159,076 $

313,851,598 $

325,091,164 $

338,476,201

89.5%

86.9%

89.3%

90.6%

91.4%

92.3%

93.2%

94.1%

94.8%

95.6%

1 - Amt Available for Repayment of Bonds only includes "Restricted Debt" of General Obligation and Tax Abatement Bonds

165

City of Eden Prairie, Minnesota Ratios of Outstanding Debt by Type Last Ten Years Year Ended Dec. 31

General Obligation Bonds

2013 $ 29,464,744 $ 2014 17,906,759 2015 13,499,232 2016 12,036,705 2017 10,648,354 2018 9,211,190 2019 8,191,241 2020 13,227,541 2021 4,891,000 2022 3,673,000

Tax Abatement Bonds $ 17,598,269 17,575,537 17,552,806 17,180,074 16,697,342 16,229,610 15,306,879 27,653,135 13,168,934

Total General Bonded Debt

Governmental Activities Special Lease Assessments Revenue Improvement Bonds Bonds

29,464,744 $ 35,505,028 31,074,769 29,589,511 27,828,428 25,908,532 24,420,851 28,534,420 32,544,135 16,841,934

1,360,000 $ 1,290,000 1,220,000 1,145,000 -

15,658,107 $ 14,834,596 12,289,647 12,799,455 10,021,959 8,054,154 6,101,720 4,320,627 2,606,494 2,110,026

Business-Type Activities

Finances Purchases 132,700 $ 89,593 45,369 286,942 231,734 175,457 118,090 59,611 418,137

Lease Liability $ 98,441

Total Govt' Bonds 46,615,551 51,719,217 44,629,785 43,820,908 38,082,121 34,138,143 30,640,661 32,914,658 35,150,629 19,468,538

$

Revenue Bonds

Lease Liability

Total BusinessType

Total

Percentage of Personal Income (1)

3,383,723 $ 2,927,476 2,466,230 3,631,427 3,143,967 2,511,507 6,960,748 6,088,767 11,674,835 11,272,267

$ 1,314,339

3,383,723 $ 2,927,476 2,466,230 3,631,427 3,143,967 2,511,507 6,960,748 6,088,767 11,674,835 12,586,606

49,999,274 54,646,693 47,096,015 47,452,335 41,226,088 36,649,650 37,601,409 39,003,425 46,825,464 32,055,144

* * * * * * * * * *

Per Capita (2) 806 871 752 751 653 575 593 612 729 500

(1) See Demographic and Economic Statistics for personal income (2) See Demographic and Economic Statistics for population * Information is not available

166

City of Eden Prairie, Minnesota Ratios of General Bonded Debt Outstanding Last Ten Years Year Ended Dec. 31

General Obligation Debt (1)

2013 $ 29,464,744 $ 2014 17,906,759 2015 13,499,232 2016 12,036,705 2017 10,648,354 2018 9,211,190 2019 8,191,241 2020 13,227,541 2021 4,891,000 2022 3,673,000

Tax Abatement Bonds

Total General Bonded Debt

$ 17,598,269 17,575,537 17,552,806 17,180,074 16,697,342 16,229,610 15,306,879 27,653,135 13,168,934

29,464,744 $ 35,505,028 31,074,769 29,589,511 27,828,428 25,908,532 24,420,851 28,534,420 32,544,135 16,841,934

Less Amounts Available in Debt Service Fund (1) 2,650,363 $ 1,715,750 2,032,109 2,303,895 2,336,132 2,296,320 2,682,004 8,730,968 14,651,101 1,407,790

Net General Bonded Debt

Ratio of Net Bonded Debt to Estimated Market Value (2)

Per Capita (3)

26,814,381 33,789,278 29,042,660 27,285,616 25,492,296 23,612,212 21,738,847 19,803,452 17,893,034 15,434,144

0.32% 0.39% 0.32% 0.28% 0.26% 0.23% 0.20% 0.18% 0.16% 0.13%

432 539 464 432 404 371 343 311 279 241

(1) Amount Does not Include Special Assessment Improvement or Revenue Bonds.

(2) See "Taxable Assessed Value and Estimated Actual Value of Property" for Market Value (3) See Demographic and Economic Statistics for Population

167

City of Eden Prairie, Minnesota Computation of Direct and Overlapping Bonded Debt December 31, 2022 Debt Outstanding

Governmental Unit

Percent of Debt Applicable to City (1)

Net Debt Applicable to City

Direct Debt: $

19,333,061

100.00%

$

19,333,061

$

151,301,118

4.19%

$

6,339,517

Eden Prairie ISD 272

89,222,670

97.56%

87,045,637

Minnetonka ISD 276

113,278,276

2.90%

3,285,070

Hennepin County

1,018,886,023

5.80%

59,095,389

Henn Suburban Park District

47,650,901

8.04%

3,831,132

Henn Regional RR Authority

85,464,798

5.80%

4,956,958

Metropolitan Council

83,059,397

3.16%

2,624,677

Total Overlapping Debt

1,588,863,183

City of Eden Prairie Overlapping Debt: Hopkins ISD 270

Total Direct and Overlapping Debt

$ 1,608,196,244

167,178,380

$

186,511,441

Notes: 1- The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of the county's taxable assessed value that is within the City's boundaries and dividing it by the county's total taxable assessed value.

168

City of Eden Prairie, Minnesota Demographic and Economic Statistics Last Ten Years

Governmental Activities

Year

Population (1)

Household Median Income

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

62,004 62,729 62,593 63,187 63,163 63,726 63,456 63,726 64,198 64,142

* * * * * * * * * *

Per Capita Income

Median Age * * * * * * * * * *

School Enrollment * * * * * * * * * *

9,046 9,011 8,941 8,844 8,835 8,780 8,861 8,759 8,534 8,748

Unemployment Rate 4.0% 2.4% 2.3% 2.9% 2.4% 2.6% 2.2% 3.4% 2.8% 1.7%

Sources: City of Eden Prairie Planning Department Minnesota Department of Employment and Economic Development Eden Prairie School District 272 - Enrollment History Website * Data is not available 1) Using Met Council numbers

169

City of Eden Prairie, Minnesota Principal Employers For the Year Ended December 31, 2022 and 2013 Employer

2022 Percentage of Total Employees City Employment

Optum Eden Prairie Mall EP Schools CH Robinson United Natural Foods Inc. Starkey Labs Emerson Process Management Tennant Company Element Fleet Management MTS Systems

3,312 2,329 2,329 2,200 2,000 1,500 1,500 1,500 1,200 1,000

5.7% 4.0% 4.0% 3.8% 3.5% 2.6% 2.6% 2.6% 2.1% 1.7%

Total Principal Employer

18,870

Other Employers Total Employers

Employer Optum CH Robinson EP Schools Starkey Labs Cigna Eaton SuperValu Stores Inc. Kroll On-Track MTS Systems Corp.

Dell-Compellent

2013 Percentage of Total Employees City Employment 4,000 1,517 1,500 1,440 950 850 850 808 808 750

7.9% 3.0% 3.0% 2.8% 1.9% 1.7% 1.7% 1.6% 1.6% 1.5%

32.7%

13,473

26.6%

38,776

67.3%

37,129

73.4%

57,646

100.0%

50,602

100.0%

Source: Official Bonds Statement for G.O. Water Revenue Bonds, Series 2021A

170

City of Eden Prairie, Minnesota Employees by Function Last Ten Years Administration Office of City Manager City Clerk Human Resources Communications Finance Liquor Stores Information Technology Facilities Community Development Administration Assessing Planning Economic Development Housing & Community Services Parks and Recreation Administration Park Maintenance Recreation Services Community Center Police Administration Officers Fire Administration Building Inspections Public Works Engineering Street Maintenance Utilities Fleet Services Grand Total

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2 1 8.8 3.5 5.5 9 7 8.5

2 1 9.7 3.5 5.5 9 7 9.88

2 1 9.7 3.5 5.5 9 7 9.88

2 1 9.8 3.5 5.5 9 6 9.88

2 1 9.8 3.5 5.5 9 6 10

2 1 9.8 3.5 5.5 9 6 10

2 1 9.8 3.5 5.5 9 6 10

2 2 9.8 3.5 5.5 9 6 10

2 2 9.8 3.5 5.5 9 6.5 10

2 1 9.8 3.5 5.5 9 6.5 10

2 7 4.6 1 2

2 7 4.6 1 1.75

2 7 4.7 1 1.75

2 7 4.7 1 1.75

2 7 4.7 1 1.75

2 7 4.7 1 1.75

2 7 4.7 1 2

2 7 4.8 1 2

2 7 4.8 1 2

2 7 5 1 2

2 20 7.6 5.5

2 20 7.6 5.5

2 20 7.6 5.5

2 20 7.6 6.5

2 20 7.6 6.5

2 20 7.6 6.5

2 20 7.6 6.5

2 20 7.6 6.5

2 20 7.6 6.5

2 21 7.6 6.5

25 66

25 66

25 66

25 67

25 68

25 68

24 69

24 69.5

24 70.5

25 71

9 9

9 9

9 9

9 9

9 9

9 9

9 9

9 9

9 9

11 9

8.3 8.3 9.3 10.3 10.3 7.5 15 14.5 14.5 14 14 14 34.7 34.7 34.7 35.7 35.7 39.5 6 6.5 5.5 5 5 5 270 272.03 272.13 274.23 275.35 276.35

7.5 15 39.5 5 277.6

7.5 15 39.5 5 279.2

7.5 15 39.5 5 280.7

7.5 15 40 5 284.9

Source: Human Resource department

171

City of Eden Prairie, Minnesota Operating Indicators Last Ten Years 2013

General Government Bond Rating - Moody's Investor Service Bond Rating - Standard & Poors Housing and Human Services Number of Residents Served Assessing: Number of Appraisals Completed Parks and Recreation Avg Monthly Community Center Memberships Program Registrations (Excludes Leagues) Public Safety Fire Number of Calls Inspection Permits Issued Building permit revenue Police Number of Calls Public Works: Patching Materials (Tons) Overlays (Tons) Crack Filling Materials (Lbs) Seal Coating (Sq Yards) - Chips Sealed Placed Seal Coating (Sq Yards) - Fog Seal/Reclamite Placed Water System: Number of Connections Water Main Repairs Number of Hydrant Flushed Average Daily Usage Sewer System: Number of Connections Miles of Sanitary Sewer Cleaned Storm System: Number of Storm Sumps Maintained

2014

2015

2016

2017

2018

2019

2020

2021

2022

Aaa n/a

Aaa AAA

Aaa AAA

Aaa AAA

Aaa AAA

Aaa AAA

Aaa AAA

Aaa AAA

Aaa AAA

Aaa AAA

3,300

3,500

3,500

3,500

3,750

3,975

5,700

9,200

14,300

6,105

5,002

5,291

5,320

5,066

5,061

4,908

4,912

5,267

4,842

5,195

n/a 17,783

n/a 18,269

n/a 17,531

2,511 15,701

2,688 17,161

2,608 17,972

2,486 19,931

1,683 6,022

1,346 14,848

1,744 15,877

1,601 9,500 $4,410,616

1,614 7,469 $3,496,417

1,617 6,405 $3,059,075

1,615 5,997 $2,303,405

1,742 6,227 $2,066,787

1,908 6,436 $3,388,529

1,875 6,438 $3,646,332

2,915 7,766 $3,578,799

2,909 8,883 $4,409,481

3,426 7,117 $3,836,375

53,746

50,380

49,921

50,741

46,319

52,278

50,909

40,564

42,801

43,363

2,500 24,000 200,000 400,000 n/a

2,400 26,488 154,944 375,500 n/a

1,555 29,602 32,000 411,700 n/a

2,370 23,070 68,000 381,600 n/a

1,650 28,856 42,000 405,425 n/a

1,700 29,852 31,920 365,907 n/a

1,976 31,503 50,007 327,998 276,296

1,739 35,988 66,175 364,854 470,020

1,164 33,164 6,340 66,892 602,335

1,019 45,456 34,570 N/A 502,598

19,195 15 4,217 7.9 MGD

19,269 9 4,326 7.25 MGD

19,312 28 4,311 6.99 MGD

19,362 53 4,515 7.07 MGD

19,426 30 4,360 7.06 MGD

19,426 18 4,395 7.08 MG

19,426 24 4,274 6.25 MG

19,541 33 6.95 MG

19,526 24 4,273 7.72 MG

19,568 27 4,470 7.4 MG

18,525 65

18,578 75

18,644 81

18,707 81

18,865 76

18,925 65

18,955 50

19,016 10

19,022 51

19,072 65

61

103

78

91

88

97

48

40

60

52

Sources: Various City Departments MGD - Million Gallons Daily N/A - Not Available

172

City of Eden Prairie, Minnesota Capital Assets Statistics by Function Last Ten Years 2013

Public Safety Fire Protection Number of Stations Number of Volunteer Firefighters Police Protection Number of Stations Public Works Miles of City Streets Parks and Recreation City Parks Conservation Areas Historic Sites Special Use Areas Miles of Trails Water System Number of Wells Total Pumping Capacity Total Storage Capacity Miles of Water Mains Sewer System Miles of Sanitary Sewer Miles of Storm Sewer

2014

2015

2016

2017

2018

2019

2020

2021

2022

4 95

4 90

4 92

4 99

4 101

4 95

4 92

4 94

4 93

4 95

1

1

1

1

1

1

1

1

1

1

232

233

234

234

234

235

235

235

236

235

43 15 5 5 122

43 15 5 5 128

43 15 5 5 128

43 15 5 5 128

43 15 5 5 134

43 15 5 5 134

43 15 5 5 134.5

43 15 5 5 134.5

43 15 5 5 134.5

43 15 5 5 134.5

15 28 MGD 8.5M gals 323

15 28 MGD 8.5 MG 326

15 28 MGD 8.5 MG 326

15 28 MGD 8.5 MG 328

15 28 MGD 8.5 MG 326

15 28 MGD 8.5 MG 326

15 28 MGD 8.5 MG 327

258 180

262 186

264 189

264 193

263 193

263 193

264 195

15 15 15 28 MGD 28 MGD 28 MGD 12.5 MG 12.5 MG 12.5 MG 326 322 399 265 198

262 200

262 209

Sources: Various City Departments Note: No Capital Asset Indicators are Available for the General Government Functions.

MGD - Million Gallons Daily

173