## City Council Meeting Agenda June 16, 2026, 7:00 PM Edina City Hall, Council Chambers, 4801 W. 50th St. Participate in the meeting: Watch the meeting on cable TV or YouTube.com/EdinaTV. Provide feedback during Community Comment by calling 312-535-8110. Enter access code 2632 590 3626 . Password is 5454. Press *3 on your telephone keypad when you would like to get in the queue to speak. A staff member will unmute you when it is your turn to speak. ## Accessibility Support: The City of Edina wants all residents to be comfortable being part of the public process. If you need assistance in the way of hearing amplification, an interpreter, large-print documents or something else, please call 952-927-8861 at least 72 hours in advance of the meeting. 1. Call to Order ## 2. Roll Call 3. Pledge of Allegiance ## 4. Approval of Meeting Agenda ## 5. Community Comment During "Community Comment," the Mayor will invite residents to share issues or concerns that are not scheduled for a future public hearing. Items that are on tonight's agenda may not be addressed during Community Comment. Individuals must limit their comments to three minutes. The Mayor may limit the number of speakers on the same issue in the interest of time and topic. Individuals should not expect the Mayor or Council to respond to their comments tonight. The City Manager will respond to questions raised during Community Comments at the next meeting. ## 5.1. City Manager's Response to Community Comments ## 6. Adoption of Consent Agenda All agenda items listed on the Consent Agenda will be approved by one motion. There will be no separate discussion of items unless requested to be removed by a Council Member. If removed the item will be considered immediately following the adoption of the Consent Agenda. (Favorable roll call vote of majority of Council Members present to approve, unless otherwise noted in consent item.) 6.1. Minutes: Retreat, April 28, Work Session and Regular, June 2, 2026 Page 1 of 401 6.2. Payment of Claims ## 6.3. Approve 2026-2027 City Insurance Renewal ## 6.4. Compensation and Classification Study Consulting Services Contract ## 6.5. Liability Coverage Statutory Limits ## 6.6. Purchase Request: Demo Old Fire Station #2 ## 6.7. Purchase Request: CloverRide Service Contract 6.8. Traffic Safety Report of April 28, 2026 and Petition Responses ## 6.9. Purchase Request: 2026 Watermain Pipe Condition Assessment Professional Services 6.10. Purchase Request: Canadian Pacific Railroad At-Grade Crossing Improvements at Dewey ## Hill Road 6.11. Resolution 2026-33: Amending MnDOT Agreement No.1062130 for Rosland Park Pedestrian ## Bridge to include Noise Wall Installation 6.12. Resolution 2026-34 Supporting the City of Edina's Metropolitan Council Active Transportation ## Grant Application for Vernon Avenue (CSAH 158) Multi-Modal Improvements 6.13. Resolution 2026-35 Supporting the City of Edina's Metropolitan Council Bridge Connections ## Grant Application for the Wooddale Avenue Bridge Replacement Project ## 6.14. Purchase Request: Fred Richards Wetland Impact Replacement ## 6.15. Purchase Request: Wooddale Park Trail Replacement ## 6.16. Purchase Request: Weber Park Basketball Court Replacement ## 6.17. Purchase Request: Edinborough Park Facility Study ## 6.18. Purchase Request: Braemar Arena Rink Flooring ## 7. Special Recognitions and Presentations ## 7.1. Railroad Crossing Safety & Quiet Zone Study Page 2 of 401 ## 7.2. 2025 Traffic Safety Summary Report ## 8. Public Hearings During "Public Hearings," the Mayor will ask for public testimony after staff and/or applicants make their presentations. The following guidelines are in place to ensure an efficient, fair, and respectful hearing; limit your testimony to three minutes and to the matter under consideration; the Mayor may modify times, as deemed necessary; avoid repeating remarks or points of view made by previous speakers. The use of signs, clapping, cheering or booing or any other form of verbal or nonverbal communication is not allowed. ## 8.1. Bojae's Liquor License Suspension 8.2. Ordinance 2026-9 Amendment Regarding Parking Requirements for the 50th & France ## District 9. Reports/Recommendations ## 9.1. Resolution 2026-36: Accepting Donations 9.2. Annual Comprehensive Financial Report for the Year Ended December 31, 2025 9.3. Resolution 2026-31: Awarding the Sale of $9,315,000 General Obligation Bonds, Series 2026A 9.4. Resolution 2026-32: Awarding the Sale of $12,215,000 Taxable General Obligation Sales Tax ## Revenue Bonds, Series 2026B 9.5. ## Zoning Ordinance Amendment, Rezoning & Site Plan for 4200 76 th ## Street West (Salvation ## Army) A. Ordinance 2026-8: Amending Chapter 36, Article VIII, Division 8, Section 36-609 ## B. Resolution 2026-27: Rezoning & Site Plan ## 9.6. Ordinance 2026-10 Amendment Regarding Reasonable Accommodations ## 10. Commission Correspondence ## 10.1. Advisory Communication: Wooddale Avenue Bike Lane Project ## 11. Manager's Comments ## 12. Mayor and Council Comments 13. Adjournment Page 3 of 401 Page 4 of 401 ## Item Report June 16, 2026 ## City Council ## Item Number: 5.1 Department: Administration ## Item Activity: Information Prepared By: Sharon Allison, City Clerk ## Item Title: City Manager's Response to Community Comments ## Action Requested: None, information only. ## Information/Background: Responses to questions posed during Community Comment at the last meeting were posted on the City’s website at https://www.edinamn.gov/2051/Responses-to-Community-Comment. City Manager Neal will provide summaries of those responses during the meeting. ## Supporting Documentation: ## None Page 5 of 401 ## Item Report June 16, 2026 ## City Council ## Item Number: 6.1 Department: Administration ## Item Activity: Action Prepared By: Sharon Allison, City Clerk Item Title: Minutes: Retreat, April 28, Work Session and Regular, June 2, 2026 ## Action Requested: Approve minutes as presented. ## Information/Background: ## Supporting Documentation: 1. Minutes: Retreat, April 28, 2026 ## 2. Minutes: Work Session, June 2, 2026 3. Minutes; Regular, June 2, 2026 Page 6 of 401 ## MINUTES ## OF THE EDINA CITY COUNCIL RETREAT ## SOUTH METRO PUBLIC SAFETY TRAINING FACILITY ## TUESDAY, APRIL 28, 2026 ## 6:00 PM ## CALL TO ORDER Mayor Hovland called the meeting to order at 6:05 p.m. ## ATTENDANCE ## Council Members Agnew, Jackson, Pierce, Risser and Mayor Hovland Staff in attendance: Scott Neal, City Manager; Ari Lenz, Deputy City Manager; Jennifer ## Bennerotte, Communications Director; Cary Teague, Community Development Director; Pa Thao, Finance Director; Andrew Slama, Fire Chief; Jessica Nikunen, HR Director; Ryan ## Browning, Information Technology Director; Perry Vetter, Parks & Recreation Director; Todd Milburn, Police Chief; Chad Millner, Public Works and Engineering Director; Derik Otten, Facilities and Fleet Manager; Asad Masood, City Management Fellow; Liz Moore, Executive Assistant. ## Also in attendance: Dave Unmacht ## INTRODUCTION City Manager Neal welcomed Council Members to the retreat. ## BUDGET WORK PLAN UPDATE Deputy City Manager Lenz, Finance Director Thao, Facilities and Fleet Manager Otten, and Parks Director Vetter presented various aspects of the budget, state of the facilities, horizon parks and recreation projects, and 2027-2032 CIP and 2027 Budget. ## CITY MANAGER SEARCH Dave Unmacht presented an update on the City Manager search. Council Members asked staff questions, and provided feedback, priorities and next steps. Respectfully submitted, ________________________ ## Liz Moore, Executive Assistant ________________________ ## James B. Hovland, Mayor Minutes approved by the Edina City Council, June 16, 2026 Page 7 of 401 ## MINUTES ## OF THE EDINA CITY COUNCIL ## WORK SESSION ## COMMUNITY ROOM, CITY HALL ## TUESDAY, JUNE 2, 2026 ## 5:30 P.M. ## 1.0 CALL TO ORDER Mayor Hovland called the meeting to order at 5:30 p.m. ## 2.0 ROLL CALL Answering roll call were Members Agnew, Jackson, Pierce, Risser, and Mayor Hovland. Staff in attendance: Scott Neal, City Manager; MJ Lamon, Special Project and Community ## Engagement Manager; Jeff Brown, Community Health Administration; Jennifer Bennerotte, Communications Director; Perry Vetter, Parks & Recreation Director; Laura Fulton, Recreation Supervisor; Asad Masood, City Management Fellow; and Sharon Allison, City Clerk. ## 3.0 MEETING TOPICS ## 3.1 2027-2028 COMMISSION WORK PLAN KICK-OFF Staff introduced the kickoff for the 2026–2027 commission work plan process. The purpose was to provide Council direction to inform upcoming commission work plans. Discussion emphasized ensuring commission work is focused, relevant, and aligned with Council priorities. Council provided feedback on priorities, scope, and alignment with City goals and values. Commissions will use Council input to develop draft work plans for submission in Fall 2026. ## 3.2 HUMAN RIGHTS & ENGAGEMENT TASK FORCE AND COMMISSION ## REVIEW Staff provided an update on the Human Rights & Engagement Task Force recommendations and broader advisory body review. Key themes from the review were clarity of purpose, alignment with Council priorities, communication and feedback gaps, and effectiveness of current advisory structure. Staff outlined potential areas for future consideration, including commission structure, work plans, meeting flexibility, and commission size. Council supported not moving forward with a standalone advisory body at this time. Council emphasized maintaining clarity on any ongoing responsibilities and ensuring continued inclusion of lived experience in decision-making. No action was requested; staff will return to review pilot concepts in Fall 2026. ## 4. ADJOURNMENT Mayor Hovland adjourned the meeting at 6:49 p.m. Respectfully submitted, Page 8 of 401 ## Sharon Allison, City Clerk ## James B. Hovland, Mayor Minutes approved by Edina City Council, June 2, 2026. Audio copy of the work session available. Page 9 of 401 Page 1 ## MINUTES ## OF THE REGULAR MEETING OF THE ## EDINA CITY COUNCIL ## HELD AT CITY HALL ## JUNE 2, 2026 ## 7:00 P.M. ## I.0 CALL TO ORDER Mayor Hovland called the meeting to order at 7:00 p.m. ## 2.0 ROLLCALL Answering rollcall were Members Agnew, Jackson, Pierce, Risser, and Hovland. ## 3.0 PLEDGE OF ALLEGIANCE ## 4.0 MEETING AGENDA – APPROVED Member Pierce made a motion, seconded by Member Jackson, tabling item 6.6, Bag Fee Policy Report, until the July 21, 2026, City Council meeting. Ayes: Agnew, Jackson, Pierce, Risser, Hovland. Motion carried. Member Jackson made a motion, seconded by Member Pierce, approving the meeting agenda as published with the exception of item 6.6, Bag Fee Policy Report. Ayes: Agnew, Jackson, Pierce, Risser, Hovland. Motion carried. ## 5.0 COMMUNITY COMMENT Ralph Zickert stated that the 2026 General Levy did little to reduce the tax burden on residents. Mr. Zickert expressed his concerns and opinions on the unsustainable budget practices of the City. Taylor Bruhschwein discussed his support of the Wooddale Avenue bike lanes, showed what a protected bike lane looks like, and noted the benefits of them. Jake Vandelist expressed his support for the Wooddale Avenue bike lanes and noted that he believes that Edina is not on track to implement the Bike and Pedestrian Master Plan. Greta Kamps expressed her support for a protected bike lane on Wooddale Avenue and noted that she thinks it is very important to do things the right way when it comes to this, to enhance safety. Jay Felds stated that trying to own a car is becoming more expensive, while bikes are cheaper, and he thinks that bike lanes on Wooddale Avenue will provide more access in the City. Will Maddrey stated that Wooddale Avenue deserves a protected bike lane and noted that he prefers a two-way bike lane that replaces car parking. Myriam Trepanier expressed concerns regarding the recent voting records of councilmembers and requested that the councilmembers remain steadfast in their positions and adhere to the platforms they were elected to. Matt Dahlien asked for consistency within the Braemar Master Plan that the community has voted to invest in, and discussed the banner inconsistencies at the baseball fields. Mr. Dahlien requested a narrow amendment to Section 36-1675. Page 10 of 401 Page 2 Matthew Perry noted that over the last several months, employees from Edina Family Physicians Clinic have been using Pinewood Trail as their parking lot and have been disrupting the normal, calm, dead-end street. Mr. Perry asked that the Council determine a short-term and long-term fix to address the parking issues at the clinic. David Frenkel noted that there should be conscience decision whether the new bike lanes will have snow removal in the winter. Mr. Frenkel stated that the heavy equipment working in the Fred Richards Park is driving over the 9 Mile Creek trail, and there has been some damage. Mr. Frenkel also noted that there are a lot of dead trees in Edina parks, and they need to be cleaned out before people get hurt. Darrell Krieger stated that 247 people participated in the feedback on Better Together regarding the bike lanes on Wooddale Avenue, and 180 people were opposed to eliminating parking on Wooddale Avenue, 54 people were in favor, and only 1 of the people in favor actually lived on Wooddale Avenue. Mr. Krieger noted that having a dedicated bike lane will not make people feel safer about riding on a street with cars. Ann Kasid recommended a no vote on the upcoming vote on the Wooddale Avenue bike lanes project and discussed many reasons why. Brian Mismash noted that he opposes eliminating parking on Wooddale Avenue for both safety and equity reasons. Rand Howe noted that he supports efforts to expand bike infrastructure and expressed concern that the current proposal and a small group of residents would absorb a significant burden without clear evidence that eliminating parking is necessary to achieve the City’s safety goals. ## 5.1. CITY MANAGER’S RESPONSE TO COMMUNITY COMMENTS City Manager Neal responded to Community Comments from current and past meetings. ## 6.0 CONSENT AGENDA – ADOPTED Member Jackson made a motion, seconded by Member Agnew, approving the consent agenda as follows: 6.1. Approve regular and work session meeting minutes of May 5, 2026 6.2. Approve Claims for Payment for Check Register Pre-List Dated April 30, 2026, totaling $666,616,00 (1011), Check Register Claims Pre-List Dated May 1, 2026, totaling $3,151,286.54, Check Register Claims Pre-List Dated May 8, 2026, totaling $1,576,66.88, Check Register Claims Pre-List Dated May 15, 2026, totaling $1,268,917.77, and Check Register Claims Pre-List Dated May 22, 2026, totaling $1,133,439.44 6.3. Request for Purchase, DriSteem Electric Humidifier for City Hall and Police, awarding the bid to the recommended low bidder, Gilbert Mechanical, at $39,268 6.4. Request for Purchase, City Owned Parking Ramp Condition Assessments, awarding the bid to the recommended low bidder, Kimley-Horn Associates, at $27,500 ## 6.5. Sustainable Building Policy Amendment #2 ## 6.6. Bag Fee Policy Report 6.7. Request for Purchase, Change Order for Professional Services for Wooddale Avenue Bridge, awarding the bid to the recommended low bidder, Short Elliot Hendrickson, at $48,500 Page 11 of 401 Page 3 6.8. Request for Purchase, 50th & France Paver Replacement, awarding the bid to the recommended low bidder, All Around Concrete, at $58,895 6.9. Request for Purchase, Change Orders #1-4 Construction Services for Hennepin County Library and Senior Center Exterior Improvements, awarding the bid to the recommended low bidder, Acme Tuckpointing Restoration, at $10,408 6.10. Request for Purchase, Streetlights for Woodland Road & Brookview Avenue, awarding the bid to the recommended low bidder, Xcel Energy, at $22,138.39 6.11. Receive Petition for Stop Controls at Garrison Lane/Ashcroft Lane and St. Johns ## Avenue 6.12. Request for Purchase, Braemar Golf Dome Parking Lot Expansion Construction, awarding the bid to the recommended low bidder, Northwest Asphalt Inc, at $830,037.31 6.13. Request for Purchase, Braemar Golf Dome Parking Lot Expansion Construction Oversight, awarding the bid to the recommended low bidder, Short Elliot Hendrickson, at $156,120 6.14. Request for Purchase, Braemar Park EV Charging Stations at Braemar Golf Dome, awarding the bid to the recommended low bidder, Carbon Day EV Charging, at $34,202 6.15. Waive Permit Fees Braemar Park Braemar Golf Dome Parking Lot Expansion 6.16 Request for Purchase, Yorktown Master Planning, awarding the bid to the recommended low bidder, Confluence, at $37,200 6.17. Request for Purchase, Recreation Enterprise Digital Advertising Services, awarding the bid to the recommended low bidder, Star Tribune Media, at $74,100 6.18. Request for Purchase, Change Order to Braemar Ice Arena Pre-Construction Services, awarding the bid to the recommended low bidder, Knutson Construction Services, at $137,000 6.19. Request for Purchase, Braemar Ice Arena Phase 2 Rink Improvements, awarding the bid to the recommended low bidder, All American Ice LLC, at $4,053,742 6.20. Waive Permit Fees for Braemar Ice Arena Phase 2 Rink Improvements 6.21. Request for Purchase, Institution Community Work Crew Contract, awarding the bid to the recommended low bidder, State of Minnesota, at $216,300 6.22. Cancellation of the Scheduled TEFRA Public Hearing for the 2026B Sales Tax ## Revenue Bonds 6.23. Request for Purchase, Microsoft Enterprise Agreement Change Order, awarding the bid to the recommended low bidder, LOGIS (Insight), at $45,314.44 6.24. Request for Purchase, Fiber Expansion at Centennial Lakes Park, awarding the bid to the recommended low bidder, LOGIS, at $73,318 6.25. Request for Purchase, 2026 Toyota Grand Highlander Hybrid, awarding the bid to the recommended low bidder, Nation Auto Fleet Group, at $44,286.44 6.26. Request for Purchase, 2026 Kia Sorento Hybrid, awarding the bid to the recommended low bidder, Bloomington Luther Kia, at $37,020 6.27. Special Use Permit to Serve Alcohol on City Property at the Edina Art Fair, June 5-7 ## 6.28. Out-of-State Travel for Mayor Hovland Ayes: Agnew, Jackson, Pierce, Risser, Hovland. Motion carried. Page 12 of 401 Page 4 ## 7.0 SPECIAL RECOGNITIONS AND PRESENTATIONS ## 7.1. LEAGUE OF MINNESOTA CITIES TO RECOGNIZE CITY MANAGER SCOTT ## NEAL – RECOGNIZED League of MN Cities Executive Director Luke Fischer gave a background on what the League of Minnesota Cities does and thanked City Manager Neal for all his hard work. Board President Wendy Berry discussed all of City Manager Neal’s hard work on the Board and noted that they are grateful for his contributions. 8.0 PUBLIC HEARINGS HELD – Affidavits of Notice presented and ordered placed on file. ## 8.1. ZONING ORDINANCE AMENDMENT, PRELIMINARY REZONING & SITE PLAN FOR 4200 76th STREET WEST (SALVATION ARMY) - CONTINUED TO JUNE 16, 2026 Community Development Director Teague stated that this item pertains to a proposed remodel and reuse of the existing 28,000 square foot building into an 18,425 square foot Salvation Army retail store with a 9,434 square foot warehouse and indoor drop off. Mr. Teague presented information regarding the land use map, site location, land use description for office residential, existing building, proposed site plan, proposed landscape plan, requirements of the request, pyramid of discretion, zoning ordinance compliance table, and primary issues. Mr. Teague noted that staff supports the Planning Commission recommendation to amend the Ordinance to allow secondhand stores to exceed 2,500 square feet in the PCD-2 and PCD-3 Districts, and leave the restriction on the size requirement in the PCD-1 District. Mr. Teague added that a comprehensive plan amendment would not be needed for this project. Joe Backer, Carlson Partners, introduced himself and highlighted that this building would provide a valuable community resource and is an adapted reuse. Tom Canfield, Salvation Army, stated that they intend to serve the community, employing up to 30 Edina residents and keeping 1 million pounds of textiles out of landfills at this location. The Council asked about the frequency of overnight/after-hours drop-offs. Mr. Canfield noted that the frequency of outside-of-hours drop-offs is dependent on the location, but also noted that employees come in at 7 a.m. each morning and take any drop-offs inside at that time. Mayor Hovland opened the public hearing at 8:12 p.m. ## Public Testimony Janey Westin addressed the Council. Nadine Reiser addressed the Council. Dianne Kelley addressed the Council. Page 13 of 401 Page 5 Ed Terhaar, Stantec, stated that they collected new traffic data and got information from the applicant regarding the number of trips to this site. Mr. Terhaar noted that there is adequate capacity at the intersections. Member Jackson made a motion, seconded by Member Pierce, to close the in-person public hearing, keep public comment open until Sunday, June 7, and continue action to consider approval of a zoning ordinance amendment, preliminary rezoning, and site plan for 4200 76th Street West, to the June 16, 2026, City Council meeting. Ayes: Agnew, Jackson, Pierce, Risser, Hovland. Motion carried. ## 8.2. COMPREHENSIVE PLAN AMENDMENT, SITE PLAN, AND VARIANCES FOR ## 6016 VERNON AVENUE, EV CHARGING STATION – DENIED Community Development Director Teague stated that this item pertains to a proposal from Ionna Rechargery to remodel the existing Kee’s auto repair shop at 6016 Vernon Avenue into an electric vehicle charging station. Mr. Teague gave a presentation that included information regarding the zoning map, site location, land use map, proposed charging station, floor plan, requirements of the request, neighborhood nodes, pyramid of discretion, site plan, rendering from Vernon Avenue, zoning ordinance compliance table, and primary issues. The Council asked questions regarding the Planning Commission's vote, the zoning ordinance compliance table, and the intent of the variance. The Council expressed concerns regarding the lack of alignment with Section 24-130 of the City Code about curb cuts on collector streets. Chad Millner, Engineer Director, noted that Vernon Avenue is operated and managed by Hennepin County, not Edina City Code. The Council also expressed further concerns regarding the legal buildable area on the site and safety. Mr. Teague stated that they are proposing the canopy to be at a setback of 0 feet. Andres Villacres, Ionna Rechargery, gave a brief presentation regarding the proposed IONNA experience in Edina, updated site plan, site improvements, landscaping plan, and site details. Declan Wilkerson, Ionna Rechargery, continued the presentation, discussing the canopy details, visual impact, walk-out convenience store, public access, visuals of other sites, and 24/7 surveillance. The Council asked questions regarding other sites being surrounded by residential homes, the QR code, and the number of users estimated per day. Mr. Villacres noted that they estimate about 13 users at peak a.m. and p.m. hours. Mayor Hovland opened the public hearing at 9:14 p.m. ## Public Testimony Matthew Pepper addressed the Council. David Lillehaug addressed the Council. Bob Melander addressed the Council. CJ Cashman addressed the Council. Page 14 of 401 Page 6 Pam Allen addressed the Council. Ron Webber addressed the Council. Janey Westin addressed the Council. Roger Conlon addressed the Council. Michael Cashman addressed the Council. Krin Reid addressed the Council. Mary Melander addressed the Council. Member Jackson made a motion, seconded by Member Pierce, to close the public hearing at 9:40 p.m. Ayes: Agnew, Jackson, Pierce, Risser, Hovland. Motion carried. Vince Barker, Kimley-Horn, noted that there are additional parking stalls on the southwest corner of the property, which would be used for snow storage in the winter, and the boulevards would be used for snow removal of the existing sidewalk along Vernon Avenue. Mr. Teague discussed how the City Code defines a gas station and noted that staff determined that electricity can be defined as an alternative motor fuel for transportation, making this a permitted use. David Kendall, City Attorney, stated that it seems that it will serve at least some people in the surrounding neighborhood. The Council gave feedback regarding having more confidence from staff regarding the legal questions/concerns brought up by residents. The Council asked questions regarding canopy lighting and noise. Mr. Villacres stated that they can post signage to attempt to limit any excessive noise coming from users. The Council expressed concerns regarding this not being the right site for a project like this, not being a community gathering site, and the multiple setback variances requested. The Council discussed prior proposals for this site and the desire that this is not seen or heard by neighboring residents. Mr. Teague discussed the meaning of the potential neighborhood node designation. Mr. Teague clarified that the Comprehensive Plan amendment requires a 4/5 vote to be approved, and the site plan and variances require a 3/5 vote. Member Jackson introduced and moved the adoption of Resolution No. 2026-28, Comprehensive Plan Amendment for 6016 Vernon Avenue. Member Pierce seconded the motion. Ayes: Jackson, Pierce, Hovland. Nays: Agnew, Risser. Motion failed. Member Jackson introduced and moved the denial of Resolution No. 2026-29, Site Plan and Variances for 6016 Vernon Avenue. Member Pierce seconded the motion. Ayes: Agnew, Jackson, Pierce, Risser, Hovland. Motion carried. Page 15 of 401 Page 7 ## 9.0 REPORTS / RECOMMENDATIONS ## 9.1. RESOLUTION NO. 2026-30 ACCEPTING DONATIONS – ADOPTED Mayor Hovland explained that to comply with State Statutes; all donations to the City must be adopted by Resolution and approved by four favorable votes of the Council accepting the donations. Member Jackson introduced and moved adoption of Resolution No. 2026-30 accepting various grants and donations. Member Pierce seconded the motion. Ayes: Agnew, Jackson, Pierce, Risser, Hovland. Motion carried. ## 9.2. RECOMMENDATION TO LIMIT IN-PERSON PRIMARY ELECTION VOTING ## TO THE 18-DAY EARLY VOTING PERIOD – ADOPTED City Clerk Allison stated that staff recommends limiting in-person voting at City Hall for Primary Elections to the statutory 18-day Early Voting period rather than offering the full 46-day in-person voting period. Ms. Allison noted that this is based on operational efficiency, staffing sustainability/capacity, fiscal responsibility, historical voter usage trends, and preservation of City Hall operations and resources. She noted that this recommendation applies only to the Primary election and does not change the General Election voting operations. The Council asked questions regarding federal changes that may impact absentee voting. Ms. Allison noted that she does not foresee federal changes impacting them at the local level and that this only applies to the 2026 Primary Election and does not automatically apply to subsequent years. Member Agnew made a motion, seconded by Member Pierce, to approve limiting in- person Primary Election voting at City Hall for the statutory 18-day Early Voting period for the 2026 Primary Election. Ayes: Agnew, Jackson, Pierce, Risser, Hovland. Motion carried. ## 10.0 MANAGER’S COMMENTS – Received ## 10.1 QUARTERLY FINANCIAL REPORT AND STRATEGIC PLAN UPDATES - Q1 2026 ## 11.0 MAYOR AND COUNCIL COMMENTS – Received ## 12.0 ADJOURNMENT Member Jackson made a motion, seconded by Member Agnew, to adjourn the meeting at 10:46 p.m. Ayes: Agnew, Jackson, Pierce, Risser, Hovland. Motion carried. Respectfully submitted, ## Sharon Allison, City Clerk ## James B. Hovland, Mayor Minutes approved by Edina City Council, June 16, 2026. Video Copy of the June 2, 2026, meeting available. Page 16 of 401 ## Item Report June 16, 2026 ## City Council ## Item Number: 6.2 Department: Finance ## Item Activity: Action Prepared By: Pa Thao, Finance Director ## Item Title: Payment of Claims ## Action Requested: Approve claims for payment ## Information/Background: For security purposes and to meet ADA Web Content Accessibility Guidelines (URL), the detailed claims reports are not included in the public packet but they are available to City Council through a secure Board Portal. To request the claims reports, please submit a data request (URL). ## List of Payment Claims: ## 1. Check Register Claims Pre-List Dated 05.29.2026 Total $2,235,439.64 ## 2. Check Register Claims Pre-List Dated 05.31.2026 Total $22,837.27 (1011) ## 3. Check Register Claims Pre-List Dated 05.31.2026 Total $114,010.93 ## 4. Check Register Claims Pre-List Dated 06.05.2026 Total $2,812,463.06 Page 17 of 401 ## Item Report June 16, 2026 ## City Council ## Item Number: 6.3 Department: Human Resources Item Activity: Action Prepared By: Amy Murray, Risk & Safety Manager ## Item Title: Approve 2026-2027 City Insurance Renewal ## Action Requested: Approve renewal of City's insurance coverage and payment for 2026-2027 policy. ## Information/Background: Staff has worked with our insurance broker, Marsh McLennan, and League of Minnesota Cities Insurance Trust (LMCIT) to analyze cost and options. Staff recommends renewal of the City's 2026- 2027 insurance policies to include workers' compensation, auto, property and liability insurance lines. Resources/Financial Impacts:Workers' compensation premium reduced by 29% while comprehensive property, auto and municipal liability were reduced by .4%. ## COMPREHENSIVE COVERAGE 2025-2026 Premium 2026-2027 Premium Premium ## Change Workers’ Compensation Premium ($50K Ded) $1,164,421 $831,824 -29% Property/Cyber/Auto/Liability/Other $802,177 $798,940 -.4% ## Relationship to City Policies/Plans/Budget Pillars: Insurance helps create a strong foundation for reliable service by transferring human, operational, and financial risks. ## Strong Foundation ## Reliable Service ## Values Impact: ## Supporting Documentation: Documents marked with "Board Portal" do not meet ADA Web Content Accessibility Guidelines (URL) and are not included in the public packet. To request a board portal document, please submit a data request (URL). ## None Page 18 of 401 ## Item Report June 16, 2026 ## City Council ## Item Number: 6.4 Department: Human Resources ## Item Activity: Action Prepared By: Jessica Nikunen, Human Resources Director ## Item Title: Compensation and Classification Study Consulting Services Contract ## Action Requested: Authorize staff to enter into an agreement with MGT Impact Solutions, LLC (MGT) to provide compensation and classification study professional services in an amount not to exceed $100,000. ## Information/Background: In early 2026, the Executive Leadership Team established City-Wide goals for the 2026-2027 period. Among these goals is a comprehensive classification and compensation study covering all full-time and extended part-time positions. The City has relied on its current position classification method since 2013, when the last full study was completed. While smaller re-classifications and market studies have taken place in the interim, a thorough review is now necessary to address the evolving needs of the organization. Over the past thirteen years, significant changes have occurred in the job market. The primary objective of the upcoming study is to update job classifications and pay structures to ensure both fairness and competitiveness. Achieving these goals is essential for the City to retain talented employees and remain in alignment with broader market trends. Additionally, the study will confirm that all positions are classified in accordance with Minnesota Pay Equity requirements. To initiate this project, the City issued a Request for Proposal (RFP) for professional services to conduct the classification and compensation study. Proposals were due on May 22nd, and the City received a total of 15 responses. After thoroughly reviewing all submissions, staff narrowed the selection to four firms, which were subsequently interviewed. Based on these evaluations, staff recommends and seeks authorization to enter into an agreement with MGT to provide the required services, with a contract amount not to exceed $100,000. The agreement with MGT will encompass several key elements: job data collection and analysis; updates to job descriptions; market data collection and analysis; review and recommendations regarding compensation philosophy; development of a classification framework and job family structure; assessment of compensation structure, internal equity, compression, and Minnesota pay equity; provision of recommendations and guidance for implementation; and delivery of a job valuation/job pointing tool for the City to use in future position reviews and to maintain the established framework and structure. ## Resources/Financial Impacts: Consulting services will not exceed $100,000 budgeted within the general fund. ## Relationship to City Policies/Plans/Budget Pillars: Page 19 of 401 ## Reliable Service ## Values Impact: ## Stewardship A modernized job classification and pay structure ensure fairness and competitiveness, which helps attract and retain top-tier talent. This attraction and retention is essential for delivering the high-quality services that residents and business owners expect. ## Supporting Documentation: Documents marked with "Board Portal" do not meet ADA Web Content Accessibility Guidelines (URL) and are not included in the public packet. To request a board portal document, please submit a data request (URL). ## None Page 20 of 401 ## Item Report June 16, 2026 ## City Council ## Item Number: 6.5 Department: Human Resources Item Activity: Action Prepared By: Amy Murray, Risk & Safety Manager ## Item Title: Liability Coverage Statutory Limits ## Action Requested: Motion refusing to waive municipal tort liability limits. ## Information/Background: For 2026-2027 municipal liability insurance policy, City Council must decide whether to waive or refuse to waive the municipal tort liability limits per Minnesota Statutes 466.04. Claims to which the tort limits do not apply are not affected by this decision. If the City does not waive the statutory tort limits, an individual claimant could recover no more than $500,000 on any claim to which the statutory tort limits apply. The total all claimants could recover for a single occurrence to which the statutory tort limits apply would be limited to $1,500,000. If the City waives the statutory tort limits, a single claimant could recover up to $2,000,000 for a single occurrence. The total all claimants could recover for a single occurrence to which the statutory tort limits apply would also be limited to $2,000,000, regardless of the number of claimants. Staff recommends Council does not waive the municipal tort liability limits. ## Resources/Financial Impacts: Motion to refuse to waive municipal tort liability limits reduces financial liability. ## Relationship to City Policies/Plans/Budget Pillars: Motion to refuse to waive municipal tort liability limits reduces financial liability. ## Strong Foundation ## Values Impact: ## Supporting Documentation: Documents marked with "Board Portal" do not meet ADA Web Content Accessibility Guidelines (URL) and are not included in the public packet. To request a board portal document, please submit a data request (URL). ## None Page 21 of 401 ## Purchase Request June 16, 2026 ## City Council ## Item Number: 6.6 Department: Public Works ## Item Activity: Action Prepared By: Steven Weiers, Facility Manager ## Item Title: Purchase Request: Demo Old Fire Station #2 ## Action Requested: Approve Purchase Request to Demo Old Fire Station #2 with Fratallone Companies in the amount of $80,093.00. ## Requisition Number: 12600175 ## Vendor: Frattalone Companies ## Equipment Status: NA ## Funding Source: CIP Cost: $80,093.00 ## Information/Background: With the opening of new Fire Station #2 in the fall of 2025, the existing building needs to be decommissioned and the site prepared for future use as a water treatment plant. ## Resources/Financial Impacts: Capital Improvement Funds from Fire Station #2 construction. ## Relationship to City Policies/Plans/Budget Pillars: When buildings and structures are no longer in use, it's important to remove the structure to prevent unintended uses and possibly liabilities that come with those uses. ## Strong Foundation ## Reliable Service ## Livable City ## Better Together ## Values Impact: ## Stewardship Preparing the site for future use will allow the planning and implementation of a new water treatment plant. ## Supporting Documentation: Documents marked with "Board Portal" do not meet ADA Web Content Accessibility Guidelines (URL) and are not included in the public packet. To request a board portal document, please submit a data request (URL). ## None Page 22 of 401 ## Purchase Request June 16, 2026 ## City Council ## Item Number: 6.7 Department: Public Works ## Item Activity: Action Prepared By: Andrew Scipioni, Transportation Planner ## Item Title: Purchase Request: CloverRide Service Contract ## Action Requested: Approve Purchase Request for CloverRide Service Contract with DARTS for $35,000. ## Requisition Number: 12600187 ## Vendor: DARTS ## Equipment Status: N/A ## Funding Source: Public Works Department Transportation Division operating budget Cost: $35,000 ## Information/Background: Since June 2018, the City has been engaged in a service contract with DARTS to provide a fixed-route circulatory bus in the Southdale District (CloverRide). The primary goal of this service is to provide mobility and access for residents and visitors to the City who can't or choose not to drive. CloverRide operates Fridays from 10:00 a.m. to 3:30 p.m. on a one-hour loop, traveling to fixed stops that include senior residential properties, grocers and retailers. Riders can also request additional stops within two blocks of the regular route. Staff recommends renewing the service contract with DARTS for another year to continue this essential service for residents. The compensation for continuing service is $7,500 higher than the previous service year (or 27%). This increase is primarily due to increases in fuel prices. ## Resources/Financial Impacts: CloverRide is funded through the operating budget of the Transportation Division of the Public Works Department. The cost of the service is within the available budget. ## Relationship to City Policies/Plans/Budget Pillars: This service supports goals in the Comprehensive Plan to improve mobility for residents, visitors and businesses with a balanced system of transportation alternatives and to support reliable transit service and connections. ## Reliable Service ## Livable City ## Better Together ## Values Impact: Page 23 of 401 ## Health CloverRide promotes the mental and social well-being of people who live, work or visit Edina. ## Supporting Documentation: Documents marked with "Board Portal" do not meet ADA Web Content Accessibility Guidelines (URL) and are not included in the public packet. To request a board portal document, please submit a data request (URL). ## None Page 24 of 401 ## Item Report June 16, 2026 ## City Council ## Item Number: 6.8 Department: Public Works Item Activity: Action Prepared By: Nick Bauler, Traffic Safety Coordinator, Andrew ## Scipioni, Transportation Planner Item Title: Traffic Safety Report of April 28, 2026 and Petition Responses ## Action Requested: Approve the recommendations of the Traffic Safety Committee. ## Information/Background: The Traffic Safety Committee recommends action on four items. Items A1 and A2 also respond to petitions received by the City on December 16, 2025 and June 2, 2026, respectively. The Transportation Commission reviewed the reports at their May 28 regular meeting. See attached report and petitions. ## Resources/Financial Impacts: Traffic control signage and pavement markings within the public right-of-way are owned and maintained by the Public Works Department. Changes or additions to signage or markings will be funded through the Streets Division operating budget or the Pedestrian and Cyclist Safety (PACS) Fund. ## Relationship to City Policies/Plans/Budget Pillars: The recommendations in these reports support the goal in the Transportation Chapter of the Comprehensive Plan to "manage, maintain and operate roadways to maximize, wherever possible, the safety and mobility of all users and all modes." ## Reliable Service ## Livable City ## Values Impact: ## Engagement Members of the public are given opportunities to provide additional information to the Transportation Commission and City Council. ## Equity The Traffic Safety Committee's recommendations are guided by the ## Minnesota Manual on Uniform Traffic Control Devices (MnMUTCD) and the City's local traffic policies. Staff strives to apply this guidance equitably to all areas of the City. ## Health The Traffic Safety Committee recommendations promote the physical wellbeing of all people who live, work or visit Edina. Page 25 of 401 ## Supporting Documentation: Documents marked with "Board Portal" do not meet ADA Web Content Accessibility Guidelines (URL) and are not included in the public packet. To request a board portal document, please submit a data request (URL). 1. Traffic Safety Report of April 28, 2026 Page 26 of 401 ## Staff Report Date: 6/ 16/2026 ## To: Mayor and City Council ## From: Nick Bauler ## Subject: Traffic Safety Report of April 28, 2026 ## Information/Background: The Traffic Safety Committee (TSC) review of traffic safety matters occurred on April 28. The Traffic Safety Coordinator, Engineering/Public Works Director, Police Sargeant and Traffic Safety Specialist were in attendance for this meeting. On each of the items, persons involved have been contacted and the staff recommendation has been discussed with them. They were informed that if they disagree with the recommendation or have additional facts to present, they can submit correspondence to the Transportation Commission and/or to City Council prior to the June 16 meeting. Section A: Items on which the Traffic Safety Committee recommends action ## A1. Stop Sign request at W 55 th ## St and Brookview Ave Description Received traffic safety request and petition from neighborhood to replace east/west Yield controls to stop controls. ADT Brookview: 196 (2026) ## W 55 th : 135 (2026) 85% Speed Brookview: 25.7 MPH (2026) ## W 55 th St: 21.6 MPH (2026) Crashes Two right-angle crashes in past ten years (2016 & 2018). Previous Review Reviewed by staff in 2002, 2010, 2018 and 2023. In 2010 east/west Yield control was added. Sightlines Vegetation, fences and elevation changes impact sight lines. The City also received a petition for two-way stop control at this intersection on December 16, 2025. Staff recommends all-way stop controls due to impacted sight lines. ## W 55 th ## St at Brookview Ave Page 27 of 401 ## Memo A2. Request for stop signs at St. Johns Ave and Garrison/Ashcroft Description Received traffic safety request during 2024 street reconstruction project. The current two-way yield isn’t adequate. ## ADT St. Johns Ave: 467 (2026) Garrison Ln: 151 (2026) ## 85% Speed St. Johns: 29.3 MPH (2026) Crashes Eastbound bus collided with fire hydrant in February 2016. ## Previous ## Requests Same request for stop signs in 2020, council approved staff’s recommendation of no action. Other complaints include vehicle speeds on St. Johns. Sightlines Vegetation, fences and elevation changes impact sight lines. The City also received a petition for two-way stop control at this intersection on June 2, 2026. Staff recommends replacing Yield signs with Stop signs to establish right-of-way. A3. Request for crosswalk markings over Grandview Square driveway Description Resident within Grandview Sq states its unsafe crossing driveway with traffic levels entering and exiting from Eden Ave. ## AADT 8,749 (2025) Crashes One in 2018, eastbound ran off road hit light pole. ## Bike & Ped ## Crosses 96 total with peak hour of 22 crosses at 1 PM (April 2025). ## Crossing ## Distance 55 feet ## Past & Future ## Work Grandview overlaid in 2022. Overlay is scheduled for Sherwood Rd in 2026. ## Unique ## Circumstances Driveway connects a sidewalk to the west and a shared-use path to the east. Staff recommends crosswalk markings connecting the sidewalk and shared-use path. ## Grandview Square Driveway at Eden Ave ## St. Johns at Ashcroft/Garrison Page 28 of 401 ## Memo ## A4. Street parking on Pinewood Trail Description Resident on Pinewood is requesting parking restrictions to prevent clinic workers from parking on Pinewood. ## ADT N/A Crashes None reported in past ten years. Future Work Anticipated overlay in 2031. Miscellaneous Clinic policy restricts workers from parking in parking lot. Workers have parked in ‘hammer-head’ exceeding 6-hour City ordinance. Police responded for enforcement. Staff recommends an end of road ‘9-button’ sign and parking restriction at end of Pinewood to allow turnarounds. Staff has further review of parking designations along Sherwood Rd from May 2026, with an upcoming review by the Transportation Commission in June 2026. Section D: Other traffic safety items handled D1. A complaint of speeds on W 66 th St between Valley View Rd and HWY 100. The portable speed display sign was placed to raise awareness of speeds. Collected data is shared with the EPD for targeted enforcement. D2. Complaints of driver speeds on Benton Ave near Johnson Dr. The temporary speed display sign was used to raise driver awareness. D3. A resident requested a speed limit sign for Eden Ave west of Arcadia Ave. A speed limit sign was installed by Public Works. D4. A developer at 5115 Eden Ave requested temporary three-hour parking restrictions on Arcadia Ave to allow parking for patrons at the Hilltop restaurant. Temporary restriction signs were installed by Public Works. D5. A complaint of pedestrian signals not working properly at Valley View Rd and Wooddale Ave. Staff reviewed the signals and were operating properly. D6. Complaints regarding traffic signals along Hennepin County roads. Hennepin County staff was notified and fixed the issues. D7. A resident was concerned with visibility of westbound drivers on Vernon Ave near Interlachen Court apartment complex. Visibility was reviewed and no crashes were reported at the location. No action is warranted. D8. A resident requested traffic signals on Vernon Ave at W 53 rd St stating inadequate gaps to turn left onto eastbound Vernon. Traffic signals do not meet warrants, but this was sent to Hennepin County for review. ## Pinewood Trail Page 29 of 401 ## Memo D9. A resident requested a crosswalk at the northern corner of Grandview Square connecting to the sidewalk towards Eden Ave. Peak crosses were 13 in one hour with 250 vehicles. Crosswalks do not meet warrants, no action. Page 30 of 401 ## Purchase Request June 16, 2026 ## City Council ## Item Number: 6.9 Department: Public Works ## Item Activity: Action Prepared By: Aaron Ditzler, Assistant City Engineer Item Title: Purchase Request: 2026 Watermain Pipe Condition Assessment Professional Services ## Action Requested: Approve Purchase Request for 2026 Watermain Pipe Condition Assessment Professional Services to ## Short Elliott Hendrickson, Inc for $111,100.00 ## Requisition Number: 12600176 Vendor: Short Elliott Hendrickson, Inc. ## Equipment Status: N/A ## Funding Source: Watermain Cost: $111,100.00 ## Information/Background: This contract includes professional services to assess approximately 16,300 linear feet of watermain pipe conditions in future roadway reconstruction project areas, which has occurred since September 2014. The non-invasive watermain testing provides staff with more data about the condition of the City's watermain system similar to closed circuit televising does for sanitary sewer trunk pipes. This data, plus water main break historical data proves to be a powerful tool in determining where to spend our watermain funds to get the greatest value to our watermain system. ## Resources/Financial Impacts: The improvement is listed in the 2025-2030 Capital Improvement Plan (CIP) under CIP number 19- 351. The services will be funded by the water utility fund. ## Relationship to City Policies/Plans/Budget Pillars: This project aligns with the Comprehensive Plan and is included in the Capital Improvement Plan. ## Strong Foundation ## Reliable Service ## Livable City ## Better Together ## Values Impact: ## Stewardship Replacing aging infrastructure at the appropriate time is sound asset management practice. ## Supporting Documentation: Documents marked with "Board Portal" do not meet ADA Web Content Accessibility Guidelines (URL) and are not included in the public packet. To request a board portal document, please submit a data request (URL). Page 31 of 401 ## None Page 32 of 401 ## Purchase Request June 16, 2026 ## City Council ## Item Number: 6.10 Department: Public Works ## Item Activity: Action Prepared By: Aaron Ditzler, Assistant City Engineer Item Title: Purchase Request: Canadian Pacific Railroad At-Grade Crossing Improvements at Dewey ## Hill Road ## Action Requested: Approve Purchase Request for Canadian Pacific Railroad At-Grade Crossing Improvements at Dewey Hill Road for $56,000.00. ## Requisition Number: 12600178 ## Vendor: Canadian Pacific Railroad ## Equipment Status: N/A ## Funding Source: Bridge Maintenance Cost: $56,000.00 ## Information/Background: The existing rubberized at-grade crossing on Dewey Hill Road between Cahill Road and Bush Lake Road has reached the end of its useful life. Canadian Pacific Railroad will install the new concrete railroad crossing and the City will furnish the materials associated with the installation. ## Resources/Financial Impacts: The improvements will be funded by Bridge Maintenance funds. Canadian Pacific Railroad will maintain the crossing. ## Relationship to City Policies/Plans/Budget Pillars: This project aligns with the Comprehensive Plan, Pedestrian & Bicycle Master Plan and Climate Action Plan. ## Strong Foundation ## Reliable Service ## Livable City ## Better Together ## Values Impact: ## Stewardship Replacing aging infrastructure at the appropriate time is sound asset management practice. ## Supporting Documentation: Documents marked with "Board Portal" do not meet ADA Web Content Accessibility Guidelines (URL) and are not included in the public packet. To request a board portal document, please submit a data request (URL). Page 33 of 401 ## None Page 34 of 401 ## Item Report June 16, 2026 ## City Council ## Item Number: 6.11 Department: Public Works Item Activity: Action Prepared By: Chad Millner, Director of Public Works and City ## Engineer Item Title: Resolution 2026-33: Amending MnDOT Agreement No.1062130 for Rosland Park Pedestrian ## Bridge to include Noise Wall Installation ## Action Requested: Approve Resolution 2026-33: Amending MnDOT Agreement No.1062130 for Rosland Park Pedestrian ## Bridge to include Noise Wall Installation ## Information/Background: The City recently suggested to MnDOT that they provide funding to the City to install a portion of their noise wall project with the Rosland Park Pedestrian Bridge Project. There are many benefits of doing this work at the same time versus MnDOT coming back after the City bridge project in 2028. MnDOT has agreed with the idea. They have also secured funding to do so. The City’s contractor is aware of this change order to the contract. Construction plans are being developed now to determine location, cost and approvals. This amendment to the City / MnDOT Cooperative Agreement is required. This additional work should not impact the schedule of the bridge project. The goal would be to install all or a portion of the noise wall identified between the trail and 6302 Rose Court. In 2028, MnDOT will return to finish the noise wall as part of the auxiliary lane project. ## Resources/Financial Impacts: MnDOT is funding the additional noise wall portion of the project up to $800,000. ## Relationship to City Policies/Plans/Budget Pillars: This project aligns with the Comprehensive Plan, Pedestrian & Bicycle Master Plan and Climate Action Plan. ## Strong Foundation ## Better Together ## Values Impact: ## Engagement Residents have voiced many concerns about the lack of an ADA compliant bridge over Highway 62 at Rosland Park. ## Equity Residents have voiced many concerns about the lack of an ADA compliant bridge over Highway 62 at Rosland Park. Page 35 of 401 ## Health The non-car transportation options this project will promote inherently improve residents' health by giving them more opportunities to walk and bike. ## Stewardship Replacing aging infrastructure at the appropriate time is sound asset management practice. ## Sustainability Providing pedestrian and bicycle transportation options should reduce vehicle miles traveled. ## Supporting Documentation: Documents marked with "Board Portal" do not meet ADA Web Content Accessibility Guidelines (URL) and are not included in the public packet. To request a board portal document, please submit a data request (URL). ## None Page 36 of 401 ## Resolution 2026-33: Amending MnDOT Agreement ## No.1062130 for Rosland Park Pedestrian Bridge to ## include Noise Wall Installation Whereas the City of Edina and Minnesota Department of Transportation (MnDOT) have executed agreement 1062130. Whereas the City of Edina and Minnesota Department of Transportation (MnDOT) have agreed to remove and replace the Rosland Park Pedestrian Bridge with an ADA compliant bridge. Whereas the City of Edina has agreed to own and operate the new bridge. Whereas $3 million dollars was part of a legislative earmark and $3.2 million was promised from MnDOT to cover the estimated project cost. Whereas the City of Edina and MnDOT have agreed to include installation of a 20-ft tall noise wall along the north pedestrian bridge on ramp to simplify MnDOT’s future noise wall installation associated with the Highway 62 Auxiliary Lane Project. Whereas the City of Edina has agreed to include this work via change order into the city held contract with Lunda Construction. Whereas the City of Edina will secure approval of the noise wall plans and specifications from MnDOT. Whereas MnDOT will provide up to $800,000 to fund labor, materials, installation and construction administration of the noise wall. Now, therefore, be it resolved that the City of Edina City Council and MnDOT will amend Agreement No. 1062130 with the State of Minnesota, Department of Transportation for the following purposes: To include construction of a portion of MnDOT noise wall adjacent to the north pedestrian onramp to the pedestrian bridge adjacent to Trunk Highway No. 62 from 3,000 feet east of Trunk Highway No. 100 to 900 feet west of Valley View Road within the corporate City limits under State Aid Project No.120-010- 013 and State Project No. 2774-30. To provide for payment by the State to the City for labor, materials, installation and construction administration for installation of a noise wall. Dated: June 16, 2026 Page 37 of 401 ## Item Report June 16, 2026 ## City Council ## Item Number: 6.12 Department: Public Works Item Activity: Action Prepared By: Chad Millner, Director of Public Works and City ## Engineer Item Title: Resolution 2026-34 Supporting the City of Edina's Metropolitan Council Active ## Transportation Grant Application for Vernon Avenue (CSAH 158) Multi-Modal Improvements ## Action Requested: Approve Resolution 2026-34 Supporting the City of Edina's Metropolitan Council Active ## Transportation Grant Application for Vernon Avenue (CSAH 158) Multi-Modal Improvements ## Information/Background: Vernon Avenue Multi-Modal Improvements from approximately Interlachen Boulevard to Eden Avenue is scheduled for 2027. Staff were successful in an intial grant application from Hennepin County for a portion of this work. Staff would like to expand the limits and scale of the project and is applying for additional grant funding as part of the Met Council's Active Transportation solicitation to do so. ## Resources/Financial Impacts: Results of this grant application will determine project scale and funding. ## Relationship to City Policies/Plans/Budget Pillars: This project aligns with the Comprehensive Plan, Pedestrian & Bicycle Master Plan and Climate Action Plan. ## Strong Foundation ## Livable City ## Better Together ## Values Impact: ## Engagement Residents have voiced many concerns about the lack of an ADA facilities along Vernon Avenue. ## Equity Residents have voiced many concerns about the lack of an ADA facilities along Vernon Avenue. ## Health The non-car transportation options this project will promote inherently improve residents' health by giving them more opportunities to walk and bike. ## Stewardship Replacing aging infrastructure at the appropriate time is sound asset management practice. ## Sustainability Providing pedestrian and bicycle transportation options should reduce vehicle miles traveled. Page 38 of 401 ## Supporting Documentation: Documents marked with "Board Portal" do not meet ADA Web Content Accessibility Guidelines (URL) and are not included in the public packet. To request a board portal document, please submit a data request (URL). ## None Page 39 of 401 ## Resolution 2026-34 Supporting the City of Edina's ## Metropolitan Council Active Transportation Grant ## Application for Vernon Avenue (CSAH 158) Multi- ## Modal Improvements WHEREAS, Hennepin County manages Vernon Avenue (CSAH 158) within the Grandview District; and, WHEREAS, the existing road does not meet today’s multi-model transportation needs and warrants improvements; and, WHEREAS, the City’s and County's guiding documents detail many unmet bicycle and pedestrian needs within the Grandview District; and, WHEREAS, the City of Edina, through the Metropolitan Council, is submitting an application to obtain funding for the Vernon Avenue Multi-Modal Improvements from approximately Interlachen Boulevard to Villa Way in the Grandview District; and, WHEREAS, safe and inviting pedestrian and bicycle facilities can be created by completing roadway improvements of Vernon Avenue; and, WHEREAS, Hennepin County supports this grant application for multi-modal improvements and will be a design partner; and, WHEREAS, the funding would be available for the year 2027; and NOW THEREFORE, BE IT RESOLVED, the City of Edina City Council supports submitting a Metropolitan Council Active Transportation grant application for multi-modal improvements along Vernon Avenue within the Grandview District. Dated: June 16, 2026 Page 40 of 401 ## Item Report June 16, 2026 ## City Council ## Item Number: 6.13 Department: Public Works Item Activity: Action Prepared By: Chad Millner, Director of Public Works and City ## Engineer ## Item Title: Resolution 2026-35 Supporting the City of Edina's Metropolitan Council Bridge Connections Grant ## Application for the Wooddale Avenue Bridge Replacement Project ## Action Requested: Approve Resolution 2026-35 Supporting the City of Edina's Metropolitan Council Bridge Connections Grant Application for the Wooddale Avenue Bridge Replacement Project. ## Information/Background: The Wooddale Avenue Bridge is due for replacement. All required approvals from historical agencies have been secured. Public engagement and final design are complete. The City is trying to secure funding for construction from multiple sources. This resolution supports a grant application with the Met Council in the Bridge Connections category. The City is also submitting a request with the state for local bridge funds. ## Resources/Financial Impacts: The results of this grant application will determine project funding. ## Relationship to City Policies/Plans/Budget Pillars: This project aligns with the Comprehensive Plan, Pedestrian & Bicycle Master Plan and Climate Action Plan. ## Strong Foundation ## Reliable Service ## Livable City ## Better Together ## Values Impact: ## Engagement Residents and adjacent property owners have been part of the design process. Equity The new bridge will have ADA compliant sidewalks on both sides. ## Health The non-car transportation options this project will promote inherently improve residents' health by giving them more opportunities to walk and bike. Page 41 of 401 ## Stewardship Replacing aging infrastructure at the appropriate time is sound asset management practice. ## Sustainability Providing pedestrian and bicycle transportation options should reduce vehicle miles traveled. ## Supporting Documentation: Documents marked with "Board Portal" do not meet ADA Web Content Accessibility Guidelines (URL) and are not included in the public packet. To request a board portal document, please submit a data request (URL). ## None Page 42 of 401 ## Resolution 2026-35 Supporting the City of Edina's ## Metropolitan Council Bridge Connections Grant ## Application for the Wooddale Avenue Bridge ## Replacement Project WHEREAS, the City of Edina is a political subdivision, organized and existing under the laws of the State of Minnesota; and, WHEREAS, the Wooddale Avenue Bridge has been identified as high priority and requires replacement within the next 5-years; WHEREAS, the Wooddale Avenue Bridge has obtained approval for replacement from state historical agencies; and WHEREAS, the existing bridge does not meet today’s multi-modal transportation needs and warrants improvements; and, WHEREAS, the City’s guiding documents detail many unmet bicycle and pedestrian needs at the bridge; and, WHEREAS, the City of Edina conducted public participation regarding the replacement of the Wooddale Avenue Bridge and adjacent landowners have worked with the City on the design; and, WHEREAS, the City of Edina, through the Metropolitan Council, is submitting an application to obtain funding for the replacement of the bridge in the Bridge Connections category; and, NOW THEREFORE, BE IT RESOLVED, the City of Edina City Council supports submitting a Metropolitan Council Bridge Connections grant application for the replacement of the Wooddale Avenue Bridge. Dated: June 16, 2026 Page 43 of 401 ## Purchase Request June 16, 2026 ## City Council ## Item Number: 6.14 Department: Parks & Recreation ## Item Activity: Action Prepared By: Rachel DeVries, Park Planner ## Item Title: Purchase Request: Fred Richards Wetland Impact Replacement ## Action Requested: Approve Purchase Request for Fred Richards Park Wetland Replacement Credits Purchase for $42,624 with Peterson Farm Holding #3. ## Requisition Number: 12600186 ## Vendor: Peterson Farm Holding #3 ## Equipment Status: Replacement ## Funding Source: LOST Capital Cost: $42,626 ## Information/Background: As a part of the 43-acre Fred Richards Park project, a known unavoidable Wetland Conservation Act (WCA) impact approval is currently pending from Nine Mile Creek Watershed District. The proposed Fred Richards Park Plan and construction would impact permanent wetlands for construction of the new entry drive and installation of replacement stormwater infrastructure. These impacts were initially planned to be replaced using new credits generated by a wetland bank establishment. On November 18, 2025 City Council approved the shift from wetland banking to the creation of a wetland preserve. Since banking is no longer being pursued, wetland impacts need to be mitigated with the purchase and transfer of wetland bank credits from an approved source. The purchase of 0.46 credits is required for replacement. Peterson Farm Holdings #3 is a Hennepin County Wetland Bank as required by Hennepin County for approvals. Staff also evaluated project specific impact mitigation on site but the establishment of a historic restoration and conservation easement created conflicts with site goals, project budget, and project timing. ## Resources/Financial Impacts: ## Funded with Local Option Sales Tax Funding ## Relationship to City Policies/Plans/Budget Pillars: This is part of Fred Richards Park Capital Plan improvements. These impacts were required for access and transportation and City of Edina worked with regulators to reduce any additional wetland impacts created by original designs. ## Values Impact: ## Strong Foundation ## Reliable Service Page 44 of 401 ## Livable City ## Supporting Documentation: Documents marked with "Board Portal" do not meet ADA Web Content Accessibility Guidelines (URL) and are not included in the public packet. To request a board portal document, please submit a data request (URL). ## None Page 45 of 401 ## Purchase Request June 16, 2026 ## City Council ## Item Number: 6.15 Department: Parks & Recreation Item Activity: Action Prepared By: Tom Swenson, Asst Dir-Parks & Nat Res ## Item Title: Purchase Request: Wooddale Park Trail Replacement ## Action Requested: Approve Purchase Request for Wooddale Park trail surface replacement with Bituminous Roadways for $80,225.96 ## Requisition Number: 12600173 ## Vendor: Bituminous Roadways ## Equipment Status: N/A ## Funding Source: General Fund Cost: $80,225.96 ## Information/Background: This project will remove and replace the trail surface at Wooddale Park. The trail is deteriorated and beyond its useful life. ## Resources/Financial Impacts: Resurfacing reduces staff time and cost inputs for patch and crack repairs. Replacement priority and schedule is created based on a yearly inventory of conditions, wear, and predicted usage. ## Relationship to City Policies/Plans/Budget Pillars: ## Strong Foundation ## Reliable Service ## Values Impact: ## Health Safe shared use paths promote accessible physical health and active recreation. ## Stewardship Maintaining assets in good working order allows for their continued use for future generations. ## Equity Trail connections to the larger Edina park and trail systems promotes accessible recreational connections to neighborhoods in Edina. ## Supporting Documentation: Documents marked with "Board Portal" do not meet ADA Web Content Accessibility Guidelines (URL) and are not included in the public packet. To request a board portal document, please submit a data request (URL). Page 46 of 401 ## None Page 47 of 401 ## Purchase Request June 16, 2026 ## City Council ## Item Number: 6.16 Department: Parks & Recreation Item Activity: Action Prepared By: Tom Swenson, Asst Dir-Parks & Nat Res ## Item Title: Purchase Request: Weber Park Basketball Court Replacement ## Action Requested: Approve Purchase Request for Weber basketball court surface replacement with Bituminous Roadways for $85,590.46 ## Requisition Number: 12600172 ## Vendor: Bituminous Roadways ## Equipment Status: N/A ## Funding Source: General Fund Cost: $85,590.46 ## Information/Background: This project will remove and replace the playing surface of the basketball court at Weber Park. This includes new paint and new basketball hoops. The court is deteriorated and is beyond its useful life. ## Resources/Financial Impacts: Resurfacing reduces staff time and cost inputs for patch and crack repairs. Replacement priority and schedule is created based on a yearly inventory of conditions, wear, and predicted usage. ## Relationship to City Policies/Plans/Budget Pillars: ## Strong Foundation ## Reliable Service ## Values Impact: ## Health Safe playing surfaces promote physical health and active recreation. Active recreation also optimizes the user experince including teamwork and socialization. ## Stewardship Maintaining assets in good working order allows for their continued use for future generations and a reduction in repairs and maintenance costs. ## Supporting Documentation: Documents marked with "Board Portal" do not meet ADA Web Content Accessibility Guidelines (URL) and are not included in the public packet. To request a board portal document, please submit a data request (URL). Page 48 of 401 ## None Page 49 of 401 ## Purchase Request June 16, 2026 ## City Council ## Item Number: 6.17 Department: Parks & Recreation Item Activity: Action Prepared By: Tracy Petersen, Assistant Director Parks & ## Recreation ## Item Title: Purchase Request: Edinborough Park Facility Study ## Action Requested: Approve Purchase Request for Professional Services for Edinborough Park Facility Study with I & S Group (ISG) for $103,000. ## Requisition Number: 12600184 ## Vendor: I & S Group, Inc. (ISG) ## Equipment Status: N/A ## Funding Source: 2024 Construction Fund Budget Surplus Cost: $103,000.00 ## Information/Background: Edinborough Park is an almost 40-year-old, one-of-a-kind, unique destination indoor recreation facility which is home to Adventure Peak indoor PlayPark, The Summit play area, amphitheater, pool and fitness & track area. As part of the 2026-2027 Budget Work Plan, a facility study was recommended in order to help frame future next steps, strategic planning and policy discussions. The study will complete a facility assessment to address current conditions, the remaining useful service life & functional performance of the facility. It will also evaluate the building envelope, all mechanical, electrical & plumbing systems, life safety systems, ADA accessibility & compliance and pool infrastructure & support spaces. In addition, a full programming and future visions analysis will be completed taking into account limitations imposed by the existing footprint, adjacent property partners, funding constraints and other physical barriers. This will also include analysis of unmet needs, market gaps, evolving recreation trends that will help define the park's future identity and strategic role. Finally, the report will define a base scenario focused on reinvestment to modern standards with minimal change, identify 2 or 3 future focused alternatives that include concept level designs, high- level capital cost ranges, revenue & staffing implications and benchmarking of surrounding facilities. Information from a final report will provide a baseline guidance to move forward with a vision for the future of Edinborough Park. ## Resources/Financial Impacts: Study is being funded by 2024 Construction Fund Budget Surplus. No additional fiscal or operation impacts. Page 50 of 401 ## Relationship to City Policies/Plans/Budget Pillars: The Edinborough Park Study is an overall City 2026-2027 Budget Work Plan as well as a Parks & Recreation Department Work Plan item. This horizon project was also discussed at the City Council's most recent retreat. ## Strong Foundation ## Reliable Service ## Livable City ## Better Together ## Values Impact: ## Equity Potential improvements promote indoor physical, mental and social well-being and activity by making recreation more accessible to all. ## Health Evaluation and study of future options and designs for the park will promote physical play, community well-being, gathering space and support programming opportunities. ## Stewardship Improvements will be studied to meet parks & recreation programming and service needs while maximizing energy efficiencies and opportunities and financial resources. ## Sustainability Studied improvements would exceed sustainability standards and help Conservation & Sustainability Plan goals and initiatives. Design study recommendations will consider sustainable building policy guidelines, applicable health codes and energy efficiencies. ## Supporting Documentation: Documents marked with "Board Portal" do not meet ADA Web Content Accessibility Guidelines (URL) and are not included in the public packet. To request a board portal document, please submit a data request (URL). ## 1. Edinborough Park Facility Study Proposal (Board Portal) Page 51 of 401 ## Purchase Request June 16, 2026 ## City Council ## Item Number: 6.18 Department: Parks & Recreation Item Activity: Action Prepared By: Perry Vetter, Parks & Recreation Director ## Item Title: Purchase Request: Braemar Arena Rink Flooring ## Action Requested: Approve Purchase Request for Braemar Ice Arena South and East Flooring with Becker Arena Products Inc. for $88,408. ## Requisition Number: 2026/12600185 Vendor: Becker Arena Products Inc. ## Equipment Status: New ## Funding Source: LOST Funded Project Cost: $88,408 ## Information/Background: This purchase is in support of the Braemar Park Master Plan and the Braemar Ice Arena renovation and expansion project. The request includes new rubber flooring in the rink floor common areas for the south (over 3,300 sf) and east (approximately 3,800 sf) rinks to compliment the new rink floors and dasher boards. this also includes flooring for the lower east and south restrooms. These improvements were part of the infrastructure plans as identified in the project needs summary for capital asset replacement. Approval of this request would allow work to begin after installation of the dasher board systems. ## Resources/Financial Impacts: This is being funded by the Local Option Sales Tax referendums that occurred in 2022 and 2023 that provided $45.2M for the project. ## Relationship to City Policies/Plans/Budget Pillars: The Braemar Park Master Plan was adopted by the Edina City Council in 2018 and amended in 2022. ## Strong Foundation ## Reliable Service ## Livable City ## Better Together ## Values Impact: ## Engagement ## This project directly impacts the Edina High School, Edina Hockey ## Association, Braemar City of Lakes Figure Skating Club, Breakaway ## Academy, General Sports, Ikola Cup members and Da Beauty League feedback. Page 52 of 401 ## Equity The primary focus for this project is to improve and expand for all users as an athlete first facility. ## Stewardship This project will provide needed upgrades to the physical capital infrastructure that will operate more efficiently, saving energy, reducing carbon use and support aspects of the Climate Action Plan. ## Sustainability This project is to improve and expand Braemar Ice Arena by improving the quality of the ice, adding a fourth indoor rink and improving the user experience with a focus on being an athlete first facility. This is being funded by the Local Option Sales Tax referendums that occurred in 2022 and 2023 that provided $45.2M for the project. ## Supporting Documentation: Documents marked with "Board Portal" do not meet ADA Web Content Accessibility Guidelines (URL) and are not included in the public packet. To request a board portal document, please submit a data request (URL). ## None Page 53 of 401 ## Item Report June 16, 2026 ## City Council ## Item Number: 7.1 Department: Public Works Item Activity: Discussion Prepared By: Chad Millner, Director of Public Works and City ## Engineer ## Item Title: Railroad Crossing Safety & Quiet Zone Study ## Action Requested: Information only ## Information/Background: Recall, a request for proposal was issued on September 3, 2025 for a Railroad Crossing Safety and Quiet Zone Study. This came from community feedback regarding night train operations. We hired SRF in October 2025. SRF is also conducting a similar study for St. Louis Park. The goal of this study is to evaluate existing railroad crossings within the city for potential safety improvements and assess the feasibility of establishing one or more Quiet Zones in accordance with Federal Railroad Administration regulations. The study is complete and we will present the results for discussion. ## Resources/Financial Impacts: The study identified railroad crossing safety improvements that are required before quiet zones can be implemented. Staff included unfunded projects for the construction years noted to give an idea of the scale of funding needed. ## Unfunded CIP Projects ## 2027 Segment C - Valley Lane $1.4M ## 2028 Segment D - Dewey Hill $1.5 M ## 2029 Segment B - Hansen Road $1.8M 2030 Segment A - North Crossings $3.5M (requires partnership with St. Louis Park) ## Relationship to City Policies/Plans/Budget Pillars: This project aligns with the Comprehensive Plan. ## Strong Foundation ## Reliable Service ## Livable City ## Better Together ## Values Impact: ## Engagement Residents have voiced many concerns with night-time train horns. This project will start to identify how to improve the quality of life of residents near the railroad tracks. ## Equity Residents have voiced many concerns with night-time train horns. This project will start to identify how to improve the quality of life of residents Page 54 of 401 near the railroad tracks. ## Supporting Documentation: Documents marked with "Board Portal" do not meet ADA Web Content Accessibility Guidelines (URL) and are not included in the public packet. To request a board portal document, please submit a data request (URL). ## 1. V2 Edina QZ Assessment Memorandum ## 2. v2 Edina Quiet Zone Council Presentation Page 55 of 401 ## CITY OF EDINA RAILROAD CROSSING SAFETY AND ## QUIET ZONE ASSESSMENT ## City of Edina, Hennepin County, Minnesota Prepared by: June 2026 ## SRF Project No. 19553 Page 56 of 401 ## City of Edina: Railroad Safety & Quiet Zone Assessment ## Table of Contents Overview .............................................................................................................................................................................................1 Study Purpose and Background ............................................................................................................................................1 Existing Conditions .....................................................................................................................................................................3 Quiet Zone Analysis ........................................................................................................................................................................4 Diagnostic Meeting Crossing Review ......................................................................................................................................5 Brunswick Ave South Pedestrian Crossing - 690988T (St. Louis Park) ...................................................................5 Alabama Avenue – 854241 (St. Louis Park) .......................................................................................................................5 Excelsior Boulevard - 854242E (St. Louis Park) ................................................................................................................5 ## W 41 st Street - 854243L (St. Louis Park) .............................................................................................................................6 ## W 42 nd Street - 854244T (St. Louis Park) ............................................................................................................................6 Brookside Avenue - 854245A (St. Louis Park) ..................................................................................................................7 Yosemite Avenue - 854246G (St. Louis Park) ...................................................................................................................7 Private Road - 854247N ...........................................................................................................................................................7 Brookside Terrace - 854248V .................................................................................................................................................8 ## W 49 th Street - 854249C ...........................................................................................................................................................8 Hansen Road - 854251D ..........................................................................................................................................................9 Valley Lane - 854252K ...............................................................................................................................................................9 Dewey Hill Road - 854253S .....................................................................................................................................................9 FRA Risk Calculator .......................................................................................................................................................................10 Quiet Zone Scenarios ..................................................................................................................................................................11 Subzone A ...................................................................................................................................................................................12 Implementation without ASM Improvements ....................................................................................................................12 Implementation with ASM Improvements ...........................................................................................................................13 Subzone B ....................................................................................................................................................................................15 Implementation ..............................................................................................................................................................................15 Subzone C ...................................................................................................................................................................................17 Implementation ..............................................................................................................................................................................17 Subzone D ...................................................................................................................................................................................19 Implementation without ASM Improvements ....................................................................................................................19 Implementation with ASM Improvements ...........................................................................................................................19 Page 57 of 401 ## City of Edina: Railroad Safety & Quiet Zone Assessment All Subzones ...............................................................................................................................................................................21 Implementation without ASM Improvements ....................................................................................................................21 Implementation with ASM Improvements ...........................................................................................................................22 Subzone BCD ..............................................................................................................................................................................25 Implementation without ASM Improvements ....................................................................................................................25 Implementation with ASM Improvements ...........................................................................................................................25 Next Steps ........................................................................................................................................................................................28 Submit a Notice of Intent or Public Authority Application ......................................................................................28 Conclusion ...................................................................................................................................................................................29 ## Table of Figures Figure 1: Railroad Crossings Reviewed to Establish a Quiet Zone in Edina .........................................................2 Figure 2: Subzone A .................................................................................................................................................................14 Figure 3: Subzone B .................................................................................................................................................................16 Figure 4: Subzone C .................................................................................................................................................................18 Figure 5: Subzone D ................................................................................................................................................................20 Figure 6: All Subzones ............................................................................................................................................................24 Figure 7: Subzone BCD ...........................................................................................................................................................27 ## Table of Tables Table 1: Crossing Characteristics ..........................................................................................................................................3 Table 2: Implementation Options ......................................................................................................................................11 Table 3: Subzone A without ASMs .....................................................................................................................................12 Table 4: Subzone A with ASMs ............................................................................................................................................13 Table 3: Subzone B Improvements ....................................................................................................................................15 Table 3: Subzone C Improvements ....................................................................................................................................17 Table 3: Subzone D without ASMs ....................................................................................................................................19 Table 4: Subzones D with ASMs .........................................................................................................................................19 Table 3: All Subzones without ASMs .................................................................................................................................21 Table 4: All Subzones with ASMs .......................................................................................................................................22 Table 5: Subzone BCD without ASMs ...............................................................................................................................25 Table 6: Subzone BCD with ASMs ......................................................................................................................................25 Page 58 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 1 of 34 ## OVERVIEW ## Study Purpose and Background The City of Edina, MN (the City) is leading a study to investigate options to improve safety and minimize the impacts of train horn noise. The Federal Railroad Administration’s (FRA’s) Train Horn Rule, issued in June 2005, provides an opportunity to accomplish this objective. The Train Horn Rule specifies the procedures and actions necessary to establish a quiet zone for at-grade highway-rail crossings. SRF Consulting Group, Inc. (SRF) was retained to conduct a Rail Crossing Safety Study to analyze current safety risk levels and evaluate the safety measures required to compensate for the loss of routine train horn sounding if a federally approved quiet zone were established in the City. Through the assessment process, 14 at-grade rail crossings (12 public and two private) along the Canadian Pacific Kansas City (CPKC) railroad were reviewed. ## • Brunswick South Pedestrian Crossing ## • Alabama Avenue ## • Excelsior Boulevard ## • W 41 st ## Street ## • W 42 nd ## Street ## • Brookside Avenue ## • Yosemite Avenue ## • Private Road ## • Brookside Terrace ## • W 49 th ## Street ## • Edina Public Works Access ## • Hansen Road ## • Valley Lane ## • Dewey Hill Road This document outlines the recommended crossing improvements for quiet zone implementation at those 14 crossings. A map of the corridor with the locations of the rail crossings evaluated for the quiet zone is shown in Figure 1 on the following page. This assessment included a field diagnostic review of the crossings with representatives from the City of Edina, CPKC, the FRA, Minnesota Department of Transportation (MnDOT), and SRF. This report summarizes the Quiet Zone Assessment methodology, discussion items, and proposed improvement scenarios with planning-level cost estimates. Page 59 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 2 of 29 Figure 1: Railroad Crossings Reviewed to Establish a Quiet Zone in Edina Page 60 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 3 of 29 ## Existing Conditions Prior to determining the necessary improvements for the quiet zone, the study team examined the existing characteristics and rail safety features of each crossing using the up to date FRA inventory forms. For a public at-grade rail crossing to be eligible for a quiet zone, the crossing must meet pre-qualifying criteria which means it includes flashing lights, two-quadrant vehicle gates, constant warning time (CWT) detection, and power out indicators. According to FRA inventory forms at the time of the diagnostic meeting, the crossings at Alabama Avenue, Brookside Avenue, and Yosemite Avenue meet the pre-qualifying criteria. Pedestrian and private crossings do not have the same infrastructure requirements as public crossings so the Brunswick South Pedestrian Crossing, Private Road crossing, and the Edina Public Works Access also meet the requirements to be part of a quiet zone. Table 1 below summarizes each crossing’s current characteristics. Seven crossings in St. Louis Park are included in this assessment because of the specifications outlined in the FRA’s Train Horn Rule. The rule requires that if there is a public at-grade crossing within a quarter mile of another crossing, it must be included in the quiet zone. This spacing requirement continues until there is not another crossing within a quarter mile. There are many nearby crossings in the southern part of St. Louis Park and the northern portion of Edina that requires the crossings to be part of a quiet zone together. ## Table 1: Crossing Characteristics Crossing location ## Number of trains per day ## Maximum train speed ## Average ## Daily Traffic ## Volume (Year) ## Pairs of ## Lights ## Gates ## Train ## Detection ## System ## Crossing meets pre- qualifying criteria ## Brunswick South ## Pedestrian Crossing ## 2 15 N/A 4 None None YES Alabama Avenue 2 15 1,963 (2024) 4 2 Roadway CWT YES Excelsior Boulevard 2 15 21,087 (2024) 12 2 Roadway ## Motion ## Detection ## NO ## W 41 st Street 2 15 775 (2025) 0 None None NO ## W 42 nd Street 2 15 325 (2025) 0 None None NO Brookside Avenue 2 15 1,162 (2024) 4 2 Roadway CWT YES Yosemite Avenue 2 15 4,075 (2025) 5 2 Roadway CWT YES ## Private Road 2 15 N/A 0 None None YES Brookside Terrace 2 15 1,162 (2024) 0 None None NO ## W 49 th Street 2 15 600 (2025) 0 None None NO ## Edina Public Works ## Access 2 15 N/A 0 0 None YES Hansen Road 2 15 2,170 (2025) 8 None None NO Valley Lane 2 15 4,775 (2025) 4 2 Roadway ## Motion ## Detection ## NO Dewey Hill Road 2 15 3,281 (2025) 4 None None NO Page 61 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 4 of 29 ## QUIET ZONE ANALYSIS A diagnostic team meeting was held on October 21st, 2025, to review crossings in St. Louis Park and on December 16th to review crossing in Edina. Representatives from the City, CPKC, FRA, MnDOT, and SRF Consulting Group attended. The diagnostic team met at the City of Edina Public Works Building to discuss background information on the crossings, the Quiet Zone Assessment process, future City and CPKC rail plans, and safety protocols when reviewing each crossing. The diagnostic team then completed a field inspection of each crossing and discussed possible Supplemental Safety Measures (SSMs) and Alternative Safety Measures (ASMs) improvement options at each crossing. At some crossings, neither SSMs nor ASMs were determined to be necessary as the corridor’s risk score is below certain thresholds which are described later. SSMs are crossing safety improvements designated as effective substitutes for negating train whistles at highway-rail crossings. SSMs deemed acceptable by the FRA for quiet zone implementation, in addition to the minimum crossing requirements (as identified earlier), include non-traversable medians, four-quadrant vehicle gates, channelization delineators, one-way pairs, and street closures. ASMs are highway-rail crossing safety improvements not pre-approved for implementation per the Final Rule and are subject to approval upon application review by the FRA Associate Administrator of Safety. This application process is more time-consuming; however, it is an acceptable alternative to establishing a quiet zone using SSMs. Common examples of ASMs are three-quadrant vehicle gates, non-traversable medians less than 60 feet, programmed/photo enforcement, public awareness education, and other geometric improvements. The suitability of a particular SSM or ASM depends on various rail crossing factors like cost and geometric constraints at crossings. Commonly proposed SSM treatments include four-quadrant vehicle gates which are a highly effective measure but also have high associated costs. Another common SSM is the installation of non-traversable medians which have a lower relative cost and are also effective in reducing risk. Non- traversable medians, however, are sometimes not a preferred safety improvement because they can reduce or eliminate access for existing driveways along the roadway. Another safety improvement includes channelization delineators, which also have a low relative cost, but can have significant costs due to ongoing maintenance. During the diagnostic team's field review of the crossings, the feasibility and constructability of various SSM/ASMs were evaluated. The quiet zone diagnostic meeting was also an opportunity to identify or discuss other concerns or issues related to the crossing, such as safety, traffic operations, etc. The following sections summarize the field review and assessment at each crossing. In addition to vehicular safety, participants discussed pedestrian safety improvements, including lights, bells, gates, and channelization strategies that could be implemented at crossings. These should be considered in quiet zones with high volumes of pedestrian traffic. Bicycle and pedestrian safety in quiet zones are a significant safety concern for meeting participants, especially where there are no audible or visual warnings or other safety issues that may warrant pedestrian crossing improvements. Page 62 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 5 of 29 ## DIAGNOSTIC MEETING CROSSING REVIEW The following section includes the notes taken for each crossing during the diagnostic meetings on October 21 st and December 16 th , 2025. The notes include characteristics about each crossing, identified changes that could made to improve crossing safety, and recommended improvements required to qualify to be part of a quiet zone. ## Brunswick Ave South Pedestrian Crossing - 690988T (St. Louis Park) This crossing meets the requirements of being part of a quiet zone because pedestrian crossings are not required to have the prequalifying elements that public crossings are. This crossing does not have lights, gates, or any warning detection system although lights are listed as present in the current inventory form. This crossing has two tracks for pedestrians and bicyclists to cross, the CPKC line, and an industry track that splits to the west on the south side of the crossing. This crossing could be used as part of a future north south regional trail. The city also has long term plans for converting the westbound industry track to a regional trail. The crossings have a single rubber panel for the crossing which are in adequate condition. The diagnostic team recommended widening the crossing to include two panels. The diagnostic team discussed using stop signs rather than yield signs as the traffic control device at the crossing and decided that stop signs should be used. The diagnostic team recommended keeping vegetation clear from the crossing to maintain sight lines. ## Alabama Avenue – 854241 (St. Louis Park) This crossing meets the requirements of being part of a quiet zone by having the prequalifying elements of lights, gates, and Constant Warning Time detection. This crossing is equipped with four pairs of flashing lights. Alabama Avenue has 1,963 vehicles traversing the crossing each day and is 36 feet wide at the crossing with parking on both sides of the street. There is a driveway within the gate area in both the northeast and southwest quadrants. This is an alternative route for a future north/ south regional trail. The vehicle surface at the crossing is in good condition and while the pedestrian surface is in good condition although ADA compliant advanced warnings are missing at all quadrants. The diagnostic meeting recommended clearing vegetation at the crossing to improve visibility, and to make the crossing ADA compliant. The team discussed adding medians to the crossing, but because of the driveways there would be no risk reduction benefit. The diagnostic team also discussed the FRA recommendation for how far parking should be prohibited from crossings to maintain visibility. No risk reduction treatment was mentioned as an option. ## Excelsior Boulevard - 854242E (St. Louis Park) This crossing does not currently meet the requirements of being part of a quiet zone by having lights, gates, and Constant Warning Time detection. The crossing has 12 pairs of lights with cantilevers but lacks CWT detection system. Excelsior Boulevard has 21,087 vehicles traversing the crossing each day and has two lanes in each direction with an existing median the length of the block between the two lanes. Bunny’s, a popular bar and restaurant, is in northwest quadrant. There is a vacant building which was formally a gas station in the Page 63 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 6 of 29 northeast quadrant, a functioning gas station in the southwest quadrant and a multi-tenant office and retail building in the southeast quadrant. All these businesses have driveways near the crossing. There is an informal pedestrian path between Bunny’s entrance and the gas station about 70 feet north of the crossing, but it is likely unused since the gas station closed. The vehicle and pedestrian crossing surfaces are in good condition. The diagnostic team mentioned adding fencing along the northern section of track between Bunny’s and the gas station building but did not make a recommendation because the building is vacant and the path is unlikely used. The team recommended the city investigate what the plans for the building are. If the building is used as a gas station in the future, fencing should be considered. The diagnostic team acknowledged the existing medians and noted that the city may take credit for the portion that has risk reduction value. The team noted that with the current driveway configuration, little risk reduction safety improvements could be made. No risk reduction treatment other than installing CWT detection system was mentioned as an option. ## W 41 st Street - 854243L (St. Louis Park) This crossing does not currently meet the minimum requirements of being part of a quiet zone by having lights, gates, and Constant Warning Time detection. The crossing does not have any lights, gates, or CWT detection system. ## W 41 st Street has 775 vehicles traversing the crossing each day. The street is 26.5 feet wide on the east side of the crossing and 24 feet wide about 100 feet west of the crossing. There is a driveway in the northeast quadrant 77 feet from future gate arm locations. On the east side, the intersection with Zarthan Avenue S is 26 feet from the crossing. 41 st Street has a significant downhill slope for eastbound traffic. There is a sidewalk on the south side of the street without ADA compliant advanced warnings. During the meeting people were clearing brush in the northeast quadrant and mentioned that a driveway to the retail and industrial building on Excelsior Boulevard was going to be added there. The diagnostic team recommended installing ADA compliant advanced warnings and clearing vegetation near the crossing. The group highlighted that trees from a house in the southwest quadrant were blocking the view of the eastbound stop sign. The group discussed closure or conversion to a pedestrian crossing as an option for either this crossing or the crossing at W 42 nd Street as both have very low volumes and require expensive upgrades. ## W 42 nd Street - 854244T (St. Louis Park) This crossing does not currently meet the requirements of being part of a quiet zone by having lights, gates, and Constant Warning Time detection. The crossing does not have any lights, gates, or CWT detection system. ## W 42 nd Street has 325 vehicles traversing the crossing each day. The street is 21 feet wide and does not have sidewalks. The crossing is slightly humped and there was evidence of vehicles scraping the crossing surface. On the southwest side of the crossing there is a driveway access to a small park 21 feet from future gate arm locations. On the east side, the intersection with Zarthan Avenue S is 21 feet from the crossing. The diagnostic team recommended clearing vegetation especially along the south side of the crossing. The group discussed closure or conversion to a pedestrian crossing was mentioned as an option for either this crossing or the crossing at W 41 st Street as both have very low volumes and require expensive upgrades. Page 64 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 7 of 29 ## Brookside Avenue - 854245A (St. Louis Park) This crossing meets the requirements of being part of a quiet zone by having lights, gates, and Constant Warning Time detection. The crossing is equipped with four pairs of flashing lights. Brookside Avenue has 1,162 vehicles traversing the crossing each day. There is an upcoming street project to improve the street near this crossing. The project could include installing a sidewalk along the north side of the street. Brookside Avenue currently only has a sidewalk on the south side of the street. There is a driveway directly outside the gate arm area in the northeast quadrant and an alley in the southwest quadrant. Trespassing was mentioned as an issue at this crossing as people walk along the bridge as a shortcut to cross Minnehaha Creek instead of using Yosemite Ave S. The diagnostic team recommended clearing vegetation on all sides of the crossing and to make the pedestrian crossings ADA compliant. The team mentioned ASM medians as an option but recognized the existing driveways would limit the risk reduction value. ## Yosemite Avenue - 854246G (St. Louis Park) This crossing meets the minimum requirements of being part of a quiet zone by having lights, gates, and Constant Warning Time detection. This crossing is equipped with five flashing lights. Yosemite Avenue S has 4,075 vehicles traversing the crossing each day. The crossing is at the top of a hill and at a curve in the street. The street has a sidewalk on the north side which does not have ADA compliant advanced warnings. There is also a driveway in the southeast quadrant. The group discussed the possibility of rerouting the driveway to connect to the private road just south of the crossing or to close the private road and its crossing by routing those driveways to this driveway. Both options had benefits and drawbacks, and the team did not conclude that either option would have a significant safety benefit. The team also discussed adding medians to the crossing, but because of the slope on the east side of the crossing and the curve on the west side, delineator posts should be added if that option is pursued. Additionally, because of the existing driveway on the east side, a median on that side would not have any risk reduction credit and would require the driveway to be right in right out. The team recommended clearing vegetation near the crossing to improve sightlines and that no risk reduction treatment was an option. Private Road - 854247N This crossing meets the requirements of being part of a quiet zone because private crossings are not required to have the prequalifying elements that public crossings are. This crossing does not have lights, gates, or any warning detection system. The Private Road crossing has 15 vehicles traversing the crossing each day and is a humped gravel crossing in poor condition. The signage is in poor condition and there is overgrown vegetation around the crossing. As discussed in the Yosemite Avenue crossing summary, the diagnostic team discussed closing this crossing and rerouting driveways to the driveway at the crossing is an option. The team discussed adding private crossing signage and replacing the signs with new ones. The team also noted that because this is a private crossing, nothing is required to be done. The team noted that because this is a private crossing, nothing is required to be done. Page 65 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 8 of 29 Brookside Terrace - 854248V This crossing does not currently meet the requirements of being part of a quiet zone by having lights, gates, and Constant Warning Time detection. The crossing does not have any lights, gates, or CWT detection system. Brookside Terrace has 50 vehicles traversing the crossing each day. This crossing is a humped gravel crossing that serves about a dozen homes on the east side of the crossing. The street makes an “L” shape and connects to W 44th Street on the north side and Brookside Avenue on the south. The crossing seems to exist largely for emergency vehicle access in and out of the area as the street is narrow and there is not enough space to easily turn around. The diagnostic team recommended following up with emergency responders to understand their needs at the crossing. One member discussed the possibility of temporarily closing the crossing and making it only available to emergency vehicles. The group also mentioned that the signage is in poor condition and that vegetation should be cleared. The team noted that no risk reduction treatment was also an option. ## W 49 th Street - 854249C This crossing does not currently meet the requirements of being part of a quiet zone by having lights, gates, and Constant Warning Time detection. The crossing does not have any lights, gates, or CWT detection system. ## W 49 th Street has 600 vehicles traversing the crossing each day. The crossing at W 49 th Street is about 50 feet east of the intersection with Brookside Avenue. On the east side of the crossing there are newer multifamily buildings and single family homes. There is a sidewalk on the south side of the street that abruptly ends before the crossing. There is an informal pedestrian path in the southwest quadrant that parallels the tracks going up the hill to the commercial area there. There are trees and vegetation that limit the visibility at the crossing. The stop and crossbuck signs are warned. The diagnostic team determined that ASM medians could be possible at this crossing. It would be possible to fit a 60-foot median on the east side and a 50-foot median on the west side of the crossing. The diagnostic team recommended connecting the sidewalk to the sidewalk on Brookside Avenue. They also recommended clearing vegetation and upgrading signs to improve maintain visibility. ## Public Works Access - 854250W This crossing meets the requirements of being part of a quiet zone because private crossings are not required to have the prequalifying elements that public crossings are. This crossing does not have lights, gates, or CTW detection system. The crossing has a public parking ramp on the west side of the crossing where a driveway connects south to Eden Avenue. On the east side of the crossing is the former facility for the Public Works Department but is now planned to be used for a mixed use development. There is a new pedestrian bridge that connects the commercial area on the east side to Arcadia Avenue directly over the crossing. There is a commercial business that has driveway access on the northwest quadrant of the crossing. It appears that new pavement was recently laid to access the loading dock at the building. This crossing is the last crossing in St. Louis Park’s proposed quiet zone. The Train Horn Rule formally requires that a quiet zone does not end on a private crossing, but the FRA representative in the meeting mentioned that they received directive that quiet zones can end at private crossings if the crossing is within Page 66 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 9 of 29 a quarter mile of the last public crossing. Because this is a private crossing, no improvements need to be made, but the group recommended that the new development in the southeast quadrant should not use this access. Hansen Road - 854251D The Hansen Road crossing does not currently meet the requirements of being part of a quiet zone as the crossing does not have gates, power-out indicators, or CWT detection. The crossing is currently equipped with cantilever mounted flashing lights. Hansen Road has 2,170 vehicles traversing the crossing each day. The crossing at Hansen Road is on the east side of Yancey Park just north of the intersection with W 56th Street. The street has one lane in each direction with parking prohibited on both sides of the street. There is a sidewalk on the west side of the street and on the south side of W 56th Street. The diagnostic team recommended adding gates, CWT detection, and power-out indicators to the crossing. The diagnostic team determined that either a third gate for westbound traffic on W 56th Street would be needed or for W 56th Street to be closed to vehicle traffic as the intersection is too close to the crossing to be safely managed with only two gates. If W 56th Street were closed, the driveway for the house at the SE corner would need to be reconfigured to reach the end of W 56th Street, not Hansen Road. For the northbound gate on Hansen Road, the diagnostic team recommend placing the gate so the pedestrian crossing across Hansen Road would be south of the gate arm. For the southbound gate on Hansen Road, the diagnostic team acknowledges that the gate arm may need to block the sidewalk as there is limited space to reconfigure the sidewalk to be outside the gate arm with the retaining wall. Valley Lane - 854252K The Valley Lane crossing does not currently meet the requirements of being part of a quiet zone as the crossing does not have CWT detection. The crossing has four pairs of flashing lights and two roadway gates but uses Motion Detection for train detection. Valley Lane has 4,775 vehicles traversing the crossing. The crossing has one travel lane in each direction along with a sidewalk and parallel parking on the south side of the street. The crossing is on top of a slight incline and on a curve, so visibility is reduced. The roadway is wide enough for non-traversable medians if parking was prohibited. The diagnostic team recommended upgrading the crossing to have CWT detection and clearing vegetation so signs are visible. ## Dewey Hill Road - 854253S The Dewey Hill Road crossing does not currently meet the requirements of being part of a quiet zone as the crossing does not have gates or CWT detection. Dewey Hill Road has 3,281 vehicles traversing the crossing each day. The crossing is in an industrial area of the city without any residential buildings immediately adjacent to the crossing. There are commercial driveways in all four quadrants of the crossing. The rubber crossing was in good condition. The diagnostic team recommended upgrading the crossings to have two quadrant gates and CWT. The diagnostic team also mentioned non-traversable medians and wayside horns as possible safety improvements. The medians would have to be reduced in length because of the driveways near the crossing and may not be appropriate as the vehicles using the driveways could be too large to make turns around the medians. Wayside horns may cause less disruption at this crossing compared to others as there are not residential properties nearby. Page 67 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 10 of 29 ## FRA RISK CALCULATOR Using diagnostic team input, the next step in the quiet zone analysis was to evaluate the crossings using the FRA’s online risk calculator. The FRA has made the calculator available to determine the risk reduction benefits achieved by various Supplemental Safety Measures (SSMs). Because Alternative Safety Measures (ASMs) are not pre-approved and have no established effectiveness rating, they cannot be evaluated using the web calculator and must be calculated via an Excel spreadsheet. For the SSM improvements to be considered effective, they must reduce or maintain the rail corridor’s Quiet Zone Risk Index (QZRI) to below the Risk Index With Horns (RIWH) or the Nationwide Significant Risk Threshold (NSRT). The QZRI is the risk to the motoring public after the corridor’s risk level is adjusted for the increased risk due to a lack of locomotive horn sounding and the reduced risk due to the implementation of acceptable safety measures. The RIWH is the level of risk that exists today when horns are sounded at every public crossing. The NSRT is a measure of risk, calculated on a nationwide basis, which reflects the average level of risk to the motoring public at public rail crossings equipped with vehicle gates and flashing lights, and at which the locomotive horns are sounded. The NSRT, established by the FRA, is currently 15,488. Page 68 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 11 of 29 ## QUIET ZONE SCENARIOS The following scenarios outline the improvements recommended for each crossing and the associated costs for a quiet zone to be established. The scenarios are broken into subzones, or smaller quiet zones with fewer crossings which were identified based on distance between crossings that meet FRA quiet zone requirements of being spaced more than ¼ mile from the next at-grade crossing. Establishing subzones allows the city to make targeted safety improvements and establish quiet zones at certain crossings before every crossing has been upgraded with the prerequisite infrastructure. Many of the crossings in St. Louis Park require upgrades which the City of Edina cannot control. The southern three crossings are spread out, which allows the crossings to be quiet zones individually or grouped together as shown in Table 2. Generally, it is not advised to have only one crossing in a zone because of how risk is averaged across all crossings in a quiet zone, but it can be done. A downside of a quiet zone with only one crossing is that the risk index may increase to a level that makes a zone noncompliant if a crash takes place or traffic volumes at the crossing increase significantly over time. ## Table 2: Implementation Options ## City Subzone Street Pairs of ## Flashing ## Lights ## Gates Detection Type ## Meets ## Minimum ## Requirement ## A ## Brunswick South Ped ## Crossing ## 4 None None ## Yes ## A Alabama Ave 4 2 Roadway CWT ## Yes ## A Excelsior Blvd 12 2 Roadway ## Motion ## Detection ## No ## A W 41 st ## St 0 None None ## No ## A W 42 nd ## St 0 None None ## No ## A Brookside Ave 4 2 Roadway CWT ## Yes ## St. Louis Park ## A Yosemite Ave 5 2 Roadway CWT ## Yes ## A Private Rd 0 None None ## Yes ## A Brookside Ter 0 None None ## No ## A W 49 th ## St 0 None None ## No ## A Public Works Access 0 None None ## Yes - - - - - - ## B / BCD Hansen Road 8 None None ## No - - - - - - ## C / BCD Valley Lane 4 2 Roadway ## Motion ## Detection ## No - - - - - - ## Edina ## D/ BCD Dewey Hill Road 4 None None ## No Page 69 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 12 of 29 ## Subzone A Subzone A is a potential future quiet zone that includes 11 crossings shown in Figure 2. Four of the southern crossings are in the City of Edina while the northern seven are in the City of St. Louis Park. If this subzone were established, trains would not routinely use their horn from the southern Brunswick Avenue pedestrian crossing in St. Louis Park to the Public Works Access crossing in the City of Edina. To create a subzone including these crossings, both cities would need to make the necessary improvements before the zone could be established. Potential ASM treatments were indentifeid at some crossings during the diagnostic meeting so the cities can weigh the importance of addinal risk reduction credit when determining how to move forward with implementation. The City has budgeted $3,506,942 in the 2030 Capital Improvemetn Plan to make the nessesary improvemetns at the the Brookside Terrace and 49 th Street crossings. The budgeted amount is larger than the estimated cost to account for year-over-year inflation until the year of construction, administrative costs, and contingency. ## Implementation without ASM Improvements Error! Reference source not found. below depicts the improvements needed to be made to the crossings in Subzones A to be part of a quiet zone. In this scenario, the QZRI would be 4,004 which is below the NSRT, but above the RIWH (2,401). ## Table 3: Subzone A without ASMs ## Crossing Location Subzone Improvement Estimated Cost ## Brunswick South ## Ped Crossing A Improve crossing surface, signage, and markings $15,000 Alabama Ave A Improve sidewalks, signage, and markings $10,000 ## Excelsior Blvd A ## Install CWT Improve sidewalks, signage, and markings $1,005,000 ## W 41 st ## St A ## Install Lights, Gates, and CWT Improve sidewalks, signage, and markings $1,010,000 ## W 42 nd ## St A ## Install Lights, Gates, and CWT Improve sidewalks, signage, and markings $1,010,000 Brookside Ave A Improve crossing surface, signage, and markings $10,000 Yosemite Ave S A Improve sidewalks, signage, and markings $10,000 ## Private Crossing A None $0 ## Brookside Terr A ## Install Lights, Gates, and CWT Improve signage and markings $1,010,000 ## W 49 th ## St A Install Lights, Gates, and CWT. Improve sidewalks, signage, and markings $1,010,000 Page 70 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 13 of 29 ## Crossing Location Subzone Improvement Estimated Cost ## Public Works ## Access ## A None $0 Page 71 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 14 of 29 ## Implementation with ASM Improvements Some ASM treatments were discussed in the diagnostic meeting. Error! Reference source not found. shows the improvements needed to be made for the crossings in Subzones A along with ASM treatments that slightly reduce the risk level. In this scenario, the QZRI would be 3,186 which is below the NSRT (15,488), but still above the RIWH (2,401). The City could also construct the ASMs that were identified in the diagnostic meeting but not take the risk reduction credit for them. Doing so would not extend the implementation timeline of the quiet zone while still actualizing the safety improvement. This can be done for any of the following subzone implementation plan with ASM improvements as the risk is low throughout the corridor. ## Table 4: Subzone A with ASMs ## Crossing Location Subzone Improvement ## Estimated ## Cost ## Brunswick South Ped ## Crossing A Improve crossing surface, signage, and markings $15,000 Alabama Ave A Improve sidewalks, signage, and markings $10,000 ## Excelsior Blvd A ## Install CWT Take credit from existing medians Improve sidewalks, signage, and markings $1,005,000 ## W 41 st ## St A ## Install Lights, Gates, and CWT Improve sidewalks, signage, and markings $1,010,000 ## W 42 nd ## St A ## Install Lights, Gates, and CWT Improve sidewalks, signage, and markings $1,010,000 Brookside Ave A Improve crossing surface, signage, and markings $10,000 ## Yosemite Ave S A Improve sidewalks, signage, and markings Install 97-foot median on south side of crossing $58,500.00 ## Private Crossing A None $0 ## Brookside Terr A ## Install Lights, Gates, and CWT Improve signage and markings $1,010,000 ## W 49 th ## St A Install Lights, Gates, and CWT. Install 50-foot median on west side of crossing and a 60- foot median on the east side Improve sidewalks, signage, and markings $1,065,000 ## Public Works Access A None $0 Page 72 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 15 of 29 ## Figure 2: Subzone A Page 73 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 16 of 29 ## Subzone B Subzone B is a potential future quiet zone that includes a single crossing at Hansen Road shown in Figure 3. If only this subzone was established, trains would not routinely use their horn for only this crossing. This crossing is more complex than many of the other crossings in the City of Edina because of how W 56th Street intersects with Hansen Road at the crossing. Additional modifications to the intersection are necessary beyond implementing SSMs or ASMs to make the crossings safe without the routine use of a train horn. These improvements were discussed previously on Page 10. No ASM treatments were discussed at this crossing. The City has budgeted $1,792,634 in the 2029 Capital Improvemetn Plan to make the nessesary improvemetns at the the Hansen Road crossing. The budgeted amount is larger than the estimated cost to account for year-over-year inflation until the year of construction, administrative costs, and contingency. ## Implementation Error! Reference source not found. below depicts the improvements needed to be made for the crossings in Subzone B to be part of a quiet zone. In this scenario, the QZRI would be 4,151 which is below the NSRT, but above the RIWH (2,489). ## Table 5: Subzone B Improvements ## Crossing ## Location ## Subzone Improvement Estimated Cost ## Hansen Road B ## Install Lights, Gates, and CWT Improve signage and markings ## Realign 56th Street $1,110,000 Page 74 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 17 of 29 ## Figure 3: Subzone B Page 75 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 18 of 29 ## Subzone C Subzone C is a potential future quiet zone that includes a single crossing in the section of the city south of Highway 62 at Valley Lane shown in Figure 4. If only this subzone was established, trains would not routinely use their horn for only at this crossing. This crossing has lights and gates but does not have Constant Warning Time detection. Often times whe n the railroad installs CWT, they also upgrade the lights and gates at the same time. No ASM treatments were discussed at this crossing. The City has budgeted $1,411,475 in the 2027 Capital Improvemetn Plan to make the nessesary improvemetns at the Valley Lane crossing. The budgeted amount is larger than the estimated cost to account for year-over-year inflation until the year of construction, administrative costs, and contingency. ## Implementation Error! Reference source not found. below depicts the improvements needed to be made for the crossings in Subzone C to be part of a quiet zone. In this scenario, the QZRI would be 6,223 which is below the NSRT, but above the RIWH (3,731). ## Table 6: Subzone C Improvements ## Crossing ## Location ## Subzone Improvement Estimated Cost ## Valley Lane C ## Install Lights, Gates, and CWT Improve signage and markings $1,010,000 Page 76 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 19 of 29 ## Figure 4: Subzone C Page 77 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 20 of 29 ## Subzone D Subzone D is a potential future quiet zone that includes a single crossing at Dewey Hill Road in the industrial part of the city north of Interstate 494 and west of Highway 100 shown in Figure 5. If only this subzone was established, trains would not routinely use their horn for only at this crossing. Reduced length non- traversable medians were discussed as an optional ASM treatment at the crossing but are not required to establish the zone. The City has budgeted $1,517,336 in the 2028 Capital Improvemetn Plan to make the nessesary improvemetns at the the Dewey Hill Road crossing. The budgeted amount is larger than the estimated cost to account for year-over-year inflation until the year of construction, administrative costs, and contingency. ## Implementation without ASM Improvements Error! Reference source not found. below depicts the improvements needed to be made for the crossings in Subzone D to be part of a quiet zone. In this scenario, the QZRI would be 4,919 which is below the NSRT, but above the RIWH (2,949). ## Table 7: Subzone D without ASMs ## Crossing ## Location ## Subzone Improvement Estimated Cost ## Dewey Hill ## Road ## D ## Install Lights, Gates, and CWT Improve signage, and markings $1,010,000 ## Implementation with ASM Improvements Some ASM treatments were discussed in the diagnostic meeting. Error! Reference source not found. shows the improvements needed to be made for the crossings in Subzone D along with ASM treatments that lower the risk level. In this scenario, the QZRI would be 2,689 which is below the NSRT and the RIWH (2,949) making the crossing safer than it is today. ## Table 8: Subzones D with ASMs ## Crossing ## Location ## Subzone Improvement Estimated Cost ## Dewey Hill ## Road ## D ## Install Lights, Gates, and CWT Install 40-foot median on west side of crossing and a 28-foot median on the east side Improve signage, and markings $1,044,000 Page 78 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 21 of 29 ## Figure 5: Subzone D Page 79 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 22 of 29 ## All Subzones All Subzones is a potential future quiet zone that includes 14 crossings, with seven crossings in the City of Edina and seven in the City of St. Louis Park, shown in Figure 6. If this subzone were established, trains would not routinely use their horn from the southern Brunswick Avenue pedestrian crossing in St. Louis Park through the entire the City of Edina. To create this quiet zone, both cities would need to make the necessary improvements before the zone could be established or all subzones could be established and then the subzones could be grouped together later to create the entire zone distributing risk across many crossings. Potential ASM treatments were indentifeid at some crossings during the diagnostic meeting so both cities can weigh the importance of additional risk reduction credit when determining how to move forward with implementation. ## Implementation without ASM Improvements Error! Reference source not found. below depicts the improvements needed to be made to all the crossings to be part of a quiet zone. In this scenario, the QZRI would be 4,303 which is below the NSRT, but above the RIWH (2,579). ## Table 9: All Subzones without ASMs ## Crossing Location Subzone Improvement Estimated Cost ## Brunswick South Ped ## Crossing A Improve crossing surface, signage, and markings $15,000 Alabama Ave A Improve sidewalks, signage, and markings $10,000 ## Excelsior Blvd A ## Install CWT Improve sidewalks, signage, and markings $1,005,000 ## W 41 st ## St A ## Install Lights, Gates, and CWT Improve sidewalks, signage, and markings $1,010,000 ## W 42 nd ## St A ## Install Lights, Gates, and CWT Improve sidewalks, signage, and markings $1,010,000 Brookside Ave A Improve crossing surface, signage, and markings $10,000 Yosemite Ave S A Improve sidewalks, signage, and markings $10,000 ## Private Crossing A None $0 ## Brookside Terr A ## Install Lights, Gates, and CWT Improve signage and markings $1,010,000 ## W 49 th ## St A Install Lights, Gates, and CWT. Improve sidewalks, signage, and markings $1,010,000 ## Public Works Access A None $0 ## Hansen Road B ## Install Lights, Gates, and CWT Improve signage and markings Realign 56 th ## Street $1,110,000 Page 80 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 23 of 29 ## Crossing Location Subzone Improvement Estimated Cost ## Valley Lane C ## Install Lights, Gates, and CWT Improve signage and markings $1,010,000 ## Dewey Hill Road D ## Install Lights, Gates, and CWT Improve signage, and markings $1,010,000 ## Implementation with ASM Improvements Some ASM treatments were discussed in the diagnostic meeting. Error! Reference source not found. shows the improvements needed to be made for all the crossings along with ASM treatments that lower the risk level In this scenario, the QZRI would be 3,503 which is below the NSRT, but still above the RIWH (2,579). ## Table 10: All Subzones with ASMs ## Crossing Location Subzone Improvement Estimated Cost ## Brunswick South Ped ## Crossing A Improve crossing surface, signage, and markings $15,000 Alabama Ave A Improve sidewalks, signage, and markings $10,000 ## Excelsior Blvd A ## Install CWT Take credit from existing medians Improve sidewalks, signage, and markings $1,005,000 ## W 41 st ## St A ## Install Lights, Gates, and CWT Improve sidewalks, signage, and markings $1,010,000 ## W 42 nd ## St A ## Install Lights, Gates, and CWT Improve sidewalks, signage, and markings $1,010,000 Brookside Ave A Improve crossing surface, signage, and markings $10,000 Yosemite Ave S A Improve sidewalks, signage, and markings $10,000 ## Private Crossing A None $0 ## Brookside Terr A ## Install Lights, Gates, and CWT Improve signage and markings $1,010,000 ## W 49 th ## St A Install Lights, Gates, and CWT. Install 50-foot median on west side of crossing and a 60- foot median on the east side Improve sidewalks, signage, and markings $1,065,000 ## Public Works Access A None $0 ## Hansen Road B ## Install Lights, Gates, and CWT Improve signage and markings Realign 56 th ## Street $1,110,000 Page 81 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 24 of 29 ## Crossing Location Subzone Improvement Estimated Cost ## Valley Lane C ## Install Lights, Gates, and CWT Improve signage and markings $1,010,000 ## Dewey Hill Road D ## Install Lights, Gates, and CWT Install 40-foot median on west side of crossing and a 28- foot median on the east side Improve signage, and markings $1,044,000 Page 82 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 25 of 29 ## Figure 6: All Subzones Page 83 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 26 of 29 ## Subzone BCD 5Subzone BCD is a potential future quiet zone that includes the three subzones that are exclusive to the City of Edina. If this subzone were established, trains would not routinely use their horn from Hansen Road to Dewey Hill Road shown in Figure 7. To create this quiet zone, the city would need to make the necessary improvements at each of the crossings before the zone could be established or all subzones could be established and then the subzones could be grouped together later to create the entire zone distributing risk across many crossings like described for the “All Subzones” quiet zone. Potential ASM treatments were identified at some crossings during the diagnostic meeting so the city can weigh the importance of additional risk reduction credit when determining how to move forward with implementation. ## Implementation without ASM Improvements The city may want to pursue establishing a quiet zone for the crossing that it has full control over. Table 11 shows the improvements needed to do so. This zone would include three crossings with the QZRI being 5,098. This risk index is below the NSRT, but still above the RIWH (3,098). ## Table 11: Subzone BCD without ASMs ## Crossing ## Location ## Subzone Improvement Cost ## Hansen Road B ## Install Lights, Gates, and CWT Improve signage and markings Realign 56 th ## Street $1,110,000 ## Valley Lane C ## Install Lights, Gates, and CWT Improve signage and markings $1,010,000 ## Dewey Hill ## Road ## D ## Install Lights, Gates, and CWT Improve signage, and markings $1,010,000 ## Implementation with ASM Improvements Table 12 below depicts the improvements needed to be made for the crossings in Subzone B along with ASM treatments that lower the risk level be part of a quiet zone along with ASM treatments that lower the risk level. In this scenario, the QZRI would be 4,354 which is below the NSRT, but still above the RIWH (3,098). ## Table 12: Subzone BCD with ASMs ## Crossing ## Location ## Subzone Improvement Cost ## Hansen Road B ## Install Lights, Gates, and CWT Improve signage and markings Realign 56 th ## Street $1,110,000 ## Valley Lane C ## Install Lights, Gates, and CWT Improve signage and markings $1,010,000 Page 84 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 27 of 29 ## Crossing ## Location ## Subzone Improvement Cost ## Dewey Hill ## Road ## D ## Install Lights, Gates, and CWT Install 40-foot median on west side of crossing and a 28-foot median on the east side Improve signage, and markings $1,044,000 Page 85 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 28 of 29 ## Figure 7: Subzone BCD Page 86 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 29 of 29 ## NEXT STEPS The next steps the City should take is to decide on whether to pursue quiet zone. If the city were to decide to pursue implementation, the quickest way for the City benefit from quieter crossings would be to first establish a quiet zone at the Hansen Road, Valley Lane, and Dewey Hill Road crossings. The QZRI of this quiet zone would be 5,098 which is above the RIWH, but well below the NSRT. While the diagnostic team identified some recommendations that could slightly improve the safety of crossing by constructing reduced length non-traversable medians the risk reduction credit from the medians would be negligible, would not reduce the risk below the RIWH, and would extend the timeline of quiet zone implementation. The City could construct the medians and not take credit for their risk reduction but know that they do have some safety benefit outside of FRA risk calculation. The City is aware of the necessary improvements and has budgeted funds to make the improvements in their Capital Improvement Plan beginning in 2027. The City should also coordinate with the City of St. Louis Park to understand their timeline for making improvements at the crossings in Subzone A. Once both cities make the improvements for that subzone, they can move forward with quiet zone establishment for the joint zone. ## Submit a Notice of Intent or Public Authority Application Once the city decides to move forward with pursuing a quiet zone, the next step of implementing a quiet zone is to submit a Notice of Intent (NOI) or Public Authority Application (PAA). In the process of creating a quiet zone, these documents serve as the formal way a city declares to the FRA, state, and railroad the city’s intent to establish a quiet zone. It is a legally required document under 49 CFR Part 222 that transitions a project from a local idea into a formal federal regulatory process. A NOI is used for proposed quiet zones that use SSMs or no treatments. PAAs are used for proposed quiet zones that use ASMs. PAA review process is much longer than the review process for NOI and can take up to a year and a half to be approved. The NOI essentially starts the 60-day clock. A city cannot establish a quiet zone until at least 60 days have passed since sending the NOI. This ensures that railroads and state agencies have sufficient time to review the safety plans and provide feedback. The NOI or PAA must send to a specific set of stakeholders including: • All railroads operating over the crossings in the proposed zone • The State agency responsible for highway and road safety ## • FRA The NOI or PAA provides the technical "blueprint" for the proposed zone. It must include: A list of all DOT Crossing Inventory numbers and street names involved. The time period of the restriction. A brief explanation of the proposed safety improvements the City intends to install. Contact information for the City’s designated Point of Contact. Page 87 of 401 City of Edina: Railroad Safety & Quiet Zone Assessment Page 30 of 29 Filing a Noice of Intent or Public Authority Application is required before the City can file a Notice of Establishment (NOE). The NOE is the final document that actually stops the horns. The NOE must explicitly affirm that the NOI was sent and that all comments received during the 60-day period were addressed. ## Conclusion The Quiet Zone Assessment for the City of Edina reviewed specific crossing characteristics to create a plan to implement a quiet zone along the CPKC railroad. The analysis indicates that many of the crossings require upgrades to meet the minimum requirements of the FRA, but the corridor is relatively safe requiring no risk reduction treatments beyond having lights, gates, CWT, and power out indicators at every crossing. The City is in good position to establish a quiet zone for the southern three crossings but will need to coordinate with the City of St. Louis Park to implement a quiet zone throughout the entire city. Ultimately, the decision on when to pursue will depend on the City's priorities, balancing the desire to minimize train horn noise with budget constraints and community impacts. Further discussions with stakeholders, including the FRA and CPKC, are recommended to finalize the quiet zone design and implementation plan. Page 88 of 401 ## Railroad Crossing Safety and Quiet Zone Study June 16, 2026 Page 89 of 401 ## Agenda ## Quiet Zone Overview ## Crossings ## Diagnostic Meeting ## Subzones ## Implementation Options ## Next Steps Page 90 of 401 ## Quiet Zone Overview What is a Quiet Zone? A designated section of railroad track where trains are not required to routinely sound their horn at public highway-rail grade crossings What is required for a Quiet Zone? Zone needs to meet minimum safety thresholds Every crossing needs: flashing lights gates ## Constant Warning Time power out indicators Page 91 of 401 ## Crossings Five public highway at-grade crossings and two private at-grade crossings on CPKC railway in Edina Seven crossings in St. Louis Park would need to be included in a quiet zone for all crossings in Edina to be part of a quiet zone. Few trains use railroad each day Trains are traveling very slowly Most crossings are very low risk for crashes Page 92 of 401 ## Diagnostic Meeting `` In October and in December, representatives from ## CPKC, FRA, MnDOT, the City of Edina, the City of St. Louis Park, and SRF went to each crossings. The group determined what needed to be done at each crossing to qualify to be part of a quiet zone Determined other safety improvements that could be made to each crossing that were not required Page 93 of 401 ## Diagnostic Meeting Continued ` None of the public crossings in Edina meet the minimum requirement of having flashing lights, gates, and CWT. Some crossings are spaced in a way that allow for the establishment of separate QZs within the city. Page 94 of 401 ## Crossing Zone Graphic Page 95 of 401 ## Construction Cost Estimates for Crossings Projects included in capital improvement plan but unfunded. Table with estimated costs to meet minimum safety crossing requirements. ## CitySubzoneStreetMeets ## Minimum ## Requirements ## Estimated CostEdina Capital ## Improvement ## Plan Year ## Unfunded ## St Louis ## Park ## AMultipleSome$3,118,500N/A ## EdinaAMultipleSome$3,507,0002030 ## EdinaBHansen RdNo$1,792,6002029 ## EdinaCValley LaneNo$1,411,5002027 ## EdinaDDewey HillNo$1,517,3002028 Page 96 of 401 ## Crossing Zone Details Establishing a quiet zone for Subzone B, C, and D can be done without coordination with other cities. These crossings could be implemented individually, or as a group. Coordinate improvements with St. Louis Park to establish a quiet zone in Subzone A. Page 97 of 401 ## Questions Page 98 of 401 ## Item Report June 16, 2026 ## City Council ## Item Number: 7.2 Department: Public Works ## Item Activity: Information Prepared By: Nick Bauler, Traffic Safety Coordinator ## Item Title: 2025 Traffic Safety Summary Report ## Action Requested: None. ## Information/Background: The Engineering Department received 208 traffic safety requests in 2025. 238 requests were reviewed by the Traffic Safety Committee and completed in 2025, an increase of 91 from the previous year. See attached report. ## Resources/Financial Impacts: Traffic control signage and pavement markings within the public right-of-way are owned and maintained by the Public Works Department. Changes or additions to signage or markings will be funded through the Streets Division operating budget or the Pedestrian and Cyclist Safety (PACS) Fund. ## Relationship to City Policies/Plans/Budget Pillars: The recommendations of the Traffic Safety Committee support the goal in the Transportation Chapter of the Comprehensive Plan to "manage, maintain and operate roadways to maximize wherever possible the safety and mobility of all users and all modes." Their recommendations are also guided by the Minnesota Manual on Uniform Traffic Control Devices and the City's local traffic policies. ## Reliable Service ## Livable City ## Values Impact: ## Engagement Members of the public are given opportunities to provide additional information to the Transportation Commission and City Council. ## Equity The Traffic Safety Committee's recommendations are guided by the ## Minnesota Manual on Uniform Traffic Control Devices (MnMUTCD) and the City's local traffic policies. Staff strives to apply this guidance equitably to all areas of the City. ## Health The Traffic Safety Committee recommendations promote the physical wellbeing of all people who live, work or visit Edina. ## Supporting Documentation: Page 99 of 401 Documents marked with "Board Portal" do not meet ADA Web Content Accessibility Guidelines (URL) and are not included in the public packet. To request a board portal document, please submit a data request (URL). ## 1. 2025 Annual Traffic Safety Summary Report ## 2. Staff Presentation Page 100 of 401 City of Edina • 4801 W. 50 th ## St. • Edina, MN 55424 ## Information / Background: The Engineering Department received 208 traffic safety requests in 2025. Requests are received by phone, mail, email and through the City’s website. 238 requests were reviewed and completed in 2025, an increase of 91 requests from 2024; this includes 94 requests received before 2025. Each request may require data collection and analysis by the Traffic Safety Coordinator prior to review by the Traffic Safety Committee. Requests are assigned to one of five categories; Traffic Calming, Parking and Signage, Intersection Control, Pedestrian Safety or Other (see Figure 1). ## Figure 1. Traffic Safety Requests Reviewed in 2025 After requests are reviewed by the Committee, they are categorized as A (recommended action), B (recommended denial/no change) or C (recommend further study) items in traffic safety reports. Many requests are handled solely by the Traffic Safety Coordinator; these are generally requests for increased police enforcement or for matters governed by existing City policies (crosswalks, signage, traffic signals, etc.). These are categorized as D items. Table 1 shows the full breakdown of requests reviewed in 2025. Date: June 16, 2026 ## To: Mayor and City Council ## From: Nick Bauler, Traffic Safety Coordinator ## Subject: 2025 Traffic Safety Summary Report 26% 18% 20% 20% 16% ## Traffic Calming ## Parking & Signage ## Intersection Control ## Pedestrian Safety ## Other Page 101 of 401 City of Edina • 4801 W. 50 th ## St. • Edina, MN 55424 ## Table 1. 2025 Traffic Safety Requests by Type In total, the Committee recommended action of 26 requests (A items) and denial of 23 (B items). 108 requests were handled by the Traffic Safety Coordinator (D items). Parking and Signage received the highest number of approvals (11), followed by Pedestrian Safety (6), Other (5) and Traffic Calming (4). Figure 2 shows the 2025 traffic safety requests by month received. Requests were highest in June and September, due to shifting traffic patterns at the end and beginning of school year and detouring concerns with France Avenue closures from Metro Transit E Line construction. ## Figure 2. 2025 Traffic Safety Requests by Month Received Request Type Traffic Calming Parking & Signage Intersection Control Pedestrian Safety Other Items Reviewed 63 (26%) 42 (18%) 48 (20%) 48 (20%) 37 (16%) ## Recommendation ## A B D A B D A B D A B D A B D 4 6 18 11 4 13 0 4 29 6 5 24 5 4 24 % 14% 21% 64% 39% 14% 46% 0% 12% 88% 17% 14% 69% 15% 12% 73% 0 5 10 15 20 25 30 35 40 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec # of Requests ## Traffic CalmingParking & SignageIntersection ControlPedestrian SafetyOther Page 102 of 401 City of Edina • 4801 W. 50 th ## St. • Edina, MN 55424 Figures 3 and 4 demonstrate trends from 2021 to 2025. Figure 3 shows the number of requests received by month, which illustrates most requests are received in the spring and summer months and taper off as winter approaches. Figure 3. Traffic Safety Requests Received by Month (2021 – 2025) Figure 4 shows requests submitted by category. All categories continue their five-year trend with only Parking & Signage decreasing. Figure 4. Traffic Safety Requests Received by Category (2021 – 2025) Each request is geolocated so staff can monitor trends and track multiple requests made at the same locations. Table 2 shows the number of requests received from each quadrant of the City and the most requested category. Figures 5 – 8 show the locations of each traffic safety request by quadrant. 0 10 20 30 40 20212022202320242025 0 10 20 30 40 50 60 ## Traffic Calming Parking & ## Signage ## Intersection ## Control ## Pedestrian ## Safety ## Other 20212022202320242025 Page 103 of 401 City of Edina • 4801 W. 50 th ## St. • Edina, MN 55424 ## Table 2. 2025 Traffic Safety Requests by Quadrant ## Quadrant ## Requests ## Received % of Total ## Requests Received ## Most Requested Category Northwest 58 28% Traffic Calming (17) (54 in 2024) Southwest 35 17% Parking & Signage (10) (33 in 2024) Southeast 38 18% Intersection Control (16) (40 in 2024) Northeast 74 35% Traffic Calming (20) (77 in 2024) ## Figure 5. 2025 Traffic Safety Requests Received in Northwest Edina Page 104 of 401 City of Edina • 4801 W. 50 th ## St. • Edina, MN 55424 ## Figure 6. 2025 Traffic Safety Requests Received in Southwest Edina ## Figure 7. 2025 Traffic Safety Requests Received in Southeast Edina Page 105 of 401 City of Edina • 4801 W. 50 th ## St. • Edina, MN 55424 ## Figure 7. 2025 Traffic Safety Requests Received in Southeast Edina Page 106 of 401 City of Edina • 4801 W. 50 th ## St. • Edina, MN 55424 ## Figure 8. 2025 Traffic Safety Requests Received in Northeast Edina Page 107 of 401 ## EdinaMN.gov ## 2025 Traffic Safety Summary Report June 16, 2026 Page 108 of 401 ## Agenda ## •Review 2025 Traffic Safety Requests •Statistics •Trends Page 109 of 401 ## Traffic Safety Request Process ## Traffic Safety ## Request submitted Data collection/ analysis ## Traffic Safety ## Committee reviews, makes recommendation ## Transportation ## Commission reviews and comments ## City Council approves recommendations ## Traffic Safety ## Coordinator follows up with requester Page 110 of 401 ## Traffic Safety Request Categories Requests are put into five categories: ## Parking & SignagePedestrian Safety ## Other ## Traffic Calming ## Intersection ## Control Page 111 of 401 ## 2025 Traffic Safety Requests 208 requests submitted - Phone, mail, email, City website, Edina 311 app ## 238* Requests Reviewed: Traffic Calming – 63 (26%) Intersection Control – 48 (20%) Pedestrian Safety – 48 (20%) Parking & Signage – 42 (18%) Other – 22 (16%) *94 requests submitted in prior years, reviewed in 2025 26% 18% 20% 20% 16% ## Traffic Calming ## Parking & Signage ## Intersection Control ## Pedestrian Safety ## Other ## Traffic Safety Requests Reviewed in 2025 Page 112 of 401 ## Actions Taken Place ## •26 A-items, Recommend Action •11 Parking & Signage ## •6 Pedestrian Safety •5 Other ## •4 Traffic Calming ## •0 Intersection Control ## •24 B-items, Recommend No ## Action ## •110 D-items, Handled by Traffic ## Safety Coordinator ## •22 E-items, Recommended ## Police Enforcement ## Parking near Edina High School ## Hansen Rd at CP Rail Tracks ## W 72 nd ## St, west of France Ave Page 113 of 401 ## TSR – Northwest Edina •58 submitted requests •Two more than 2024 •Most requests: Traffic Calming (17 or 29%) Page 114 of 401 ## TSR – Southwest Edina •35 submitted requests •Two more than 2024 •Most requests: Parking & Signage (10 or 29%) Page 115 of 401 ## TSR – Southeast Edina •40 submitted requests •Two more than 2024 •Most requests: Intersection Control(16 or 40%) Page 116 of 401 ## TSR – Northeast Edina •74 submitted requests •Three less than 2024 •Most requests: Traffic Calming (20 or 27%) Page 117 of 401 ## 2025 TSR Trends •Peak months May & September included traffic pattern shifts from construction projects and school years. •Traffic Calming and ## Pedestrian Safety also peaked together due to construction projects and school years. 0 5 10 15 20 25 30 35 40 ## JanFebMarAprMayJunJulAugSepOctNovDec # of Requests ## Traffic CalmingParking & SignageIntersection ControlPedestrian SafetyOther Page 118 of 401 2021-2025 0 10 20 30 40 50 60 ## Traffic CalmingParking & SignageIntersection ControlPedestrian SafetyOther ## Requests Received by Category 20212022202320242025 Page 119 of 401 Questions? •Thank you Page 120 of 401 ## Item Report June 16, 2026 ## City Council ## Item Number: 8.1 Department: Administration ## Item Activity: Action Prepared By: Sharon Allison, City Clerk ## Item Title: Bojae's Liquor License Suspension ## Action Requested: Approve Bojae's 3-day liquor license suspension and $1,000 fine for their second liquor license offense within 24 months. ## Information/Background: On May 12, alcohol was sold to an under 21-year-old police decoy during an alcohol compliance check by the Edina Police Department. This was Bojae's second offense within 24 months and the presumptive civil penalty is a 3-day liquor license suspension and $1,000 fine. Per City Code, Chapter 4, Alcoholic Beverage, Section 4-14-2, and in accordance with MN Statute 340A.415, the licensee must be given the opportunity for a hearing. Staff recommends Monday-Wednesday, June 22-24, for the 3-day suspension. Staff also recommends that Bojae's decides how to notify their customers of the 3-day suspension, for example, by posting a notice on entry door(s) and also where alcohol is in plain site of customers. Additionally, five other liquor establishments were charged with their first offense within 24 months and have opted to forgo a public hearing and pay the $500 fine. ## Supporting Documentation: ## None Page 121 of 401 ## Item Report June 16, 2026 ## City Council ## Item Number: 8.2 Department: Community Development ## Item Activity: Action Prepared By: Addison Lewis, Community Development ## Coordinator Item Title: Ordinance 2026-9 Amendment Regarding Parking Requirements for the 50th & France ## District ## Action Requested: Approve Ordinance 2026-09 amendment regarding parking requirements for the 50th & France District, grant first reading and waive second reading. ## Information/Background: Section 36-1312 of the Edina Zoning Ordinance allows commercial properties at 50th & France to rely on the public ramps to satisfy their parking requirement up to a floor area ratio (FAR) of 1.0. FAR means the gross floor area of a building divided by the lot area. Buildings that exceed an FAR of 1.0 must provide additional parking for the square footage exceeding an FAR of 1.0. As a policy, Edina has allowed the commercial properties at 50th & France to rely on the parking ramps to meet their parking requirement up to an FAR of 1.0 since 1978. Since the parking is a resource that is shared by all property owners in the district, this was a way to distribute the available parking in a way that was fair. This practice was formally codified in 2022. In the fall of 2025, a variance from this provision was requested at 5036 France Avenue to allow a restaurant to expand up to an FAR of 1.2 without providing additional parking. The variance was strongly supported by the community and, as a result, the City Council provided feedback to staff to explore amending the parking requirement at 50th & France to allow other property owners in the district the same opportunity. Staff have analyzed the parking data for the three ramps and the potential for redevelopment in the district and are proposing an amendment to Section 36-1312 to increase the amount of FAR allowed before additional parking is required from 1.0 to 1.25. The ramps at 50th & France are equipped with technology to count the number of vehicles entering and leaving the ramp. The technology is not perfect but provides an estimate of the utilization of the ramps on any given day and at what time the peak demand occurred. Between the North Ramp, Center Ramp, and South Ramp, there are 1069 parking stalls. Staff analyzed the parking utilization data from March 2023 to March 2026 and found that on an average day, after subtracting the number of spaces occupied at peak demand, there are still about 388 stalls available on an average day. ## 50th & France Parking Ramp Occupancy Based on the City's parking counter technology from 3/1/2023 to 2/28/2026 Page 122 of 401 ## Ramp ## Total Stalls ## Available ## Average Peak ## Occupancy ## Average Peak Occupancy % ## Average Stalls ## Available at Peak ## Occupancy North 547 298.3 54.5% 248.7 Center 114 103.6 90.9% 10.4 South 408 279.4 68.5% 128.6 ## TOTAL 1,069 681.3 63.7% 387.7 When the parking variance at 5036 France Avenue was being considered, staff analyzed the parking availability specifically for Friday and Saturday evening since that was assumed to be the peak time for the restaurant. That analysis found that there should be at least 327 spaces available on an average Friday or Saturday evening. For retail uses, the code requires 1 stall per 250 square feet, with a 10% reduction for areas served by regular transit. If we assume this ratio, then the district could accommodate approximately 108,000 additional square feet of retail on an average day based on 388 stalls available. When the FAR restriction was put into place back in 1978, a ratio of 1 stall per 312.5 square feet of commercial (3.2 spaces / 1,000 sf) was used to account for the mixed-use nature of the district given that the variety of uses will have differing peak times. Using this ratio, the district could accommodate approximately 121,250 additional square feet of commercial. Given the improvements in transit to the area since 1978 and the emergence of e-bikes and ride-hailing services, even this ratio may be conservative. Staff have analyzed the potential for redevelopment in the district. Attached to this report is a table that shows the existing properties in the district, including their existing FAR and how much square footage each could add to get to an FAR of 1.0, 1.25 and 1.5. If every property in the district added commercial square footage up to an FAR of 1.25, this would equate to approximately 310,472 additional square feet, which is more than can be accommodated by the existing parking capacity; however, there are several reasons staff feel comfortable with the proposed code change. 1. Most properties are unlikely to expand. Staff identified several parcels that we believe are the most unlikely to redevelop based on existing site conditions and their ability to expand (shaded in gray on the table). After subtracting these sites, the amount of potential additional square footage is reduced to from 310,472 to 222,268. 2. Of the 222,268 square feet, 101,842 square feet is attributed to the US Bank site at 4100 50th St W and 63,581 square feet to the Lunds site at 3945 50th St W. Neither of these sites is likely to add this much commercial square footage without adding additional parking because investors will require proof of adequate parking and tend to be more conservative. The Nolan Mains project added 139 parking stalls to the district when that development occurred. In the case of other recent development proposals for the Opus headquarters at 5100 Eden Avenue and the Macy’s furniture redevelopment 7235 France Avenue, both projects proposed more parking than required by code. 3. All properties in the district are not going to redevelop at the same time and redevelopment of any individual property will not use up all the remaining parking capacity. If there is major redevelopment, the City can re-evaluate the amount of available parking and change the code Page 123 of 401 again in the future. No comments were received on Better Together Edina. The Edina Planning Commission considered this item at their April 29, 2026 meeting and voted 8-0 (with one abstention) to recommend approval of the ordinance as proposed. ## Supporting Documentation: Documents marked with "Board Portal" do not meet ADA Web Content Accessibility Guidelines (URL) and are not included in the public packet. To request a board portal document, please submit a data request (URL). ## 1. FAR Estimate Table (Board Portal) ## 2. 50th & France District Boundary Map (Board Portal) Page 124 of 401 ## Ordinance 2026-9 Amendment Regarding Parking Requirements for the 50th & France District ## The City Council Of Edina Ordains: Section 1. Chapter 36, Article XII. – SUPPLEMENTARY DISTRICT REGULATIONS, DIVISION 3 – PARKING AND CIRCULATION, SUBDIVISION II – PARKING SPACES of the Edina City Code is amended with the following original text, added text, and deleted text: ## Sec. 36-1312 – Planned Commercial District (2) Planned Commercial District – 2 (PCD-2)(50th and France, area defined in the 50th and France small area plan) Parking for non-residential uses in the 50th and France commercial node may rely on the City Parking Ramps with a floor area ratio up to 1.250 as defined in section 36-10. UsesNon-residential uses exceeding 1.250 must provide additional off-street parking spaces for the square footage above 1.250. Multiresidential uses. At least one fully enclosed parking space for each dwelling unit but no more than 1.5 spaces per dwelling unit. Such parking spaces must be designed for the exclusive use of residents of the dwelling units and their guests. The council may require the provision of exposed parking spaces in addition to the required enclosed spaces as a condition to the issuance of a conditional use permit. Section 2. This ordinance is effective immediately upon passage. ## Summary for Publication: The ordinance will increase the amount of floor area ratio allowed from 1.0 to 1.25 before additional parking is required for commercial properties within the 50th & France District. Page 125 of 401 ## Item Report June 16, 2026 ## City Council ## Item Number: 9.1 Department: Administration ## Item Activity: Action Prepared By: Sharon Allison, City Clerk ## Item Title: Resolution 2026-36: Accepting Donations ## Action Requested: Approve Resolution 2026-36 accepting donations. ## Information/Background: To comply with State Statute, all donations to the City must be accepted by resolution and approved by two-thirds majority of the Council. ## Supporting Documentation: ## None Page 126 of 401 ## Resolution 2026-36: Accepting Donations Whereas Minnesota Statute 465.03 allows cities to accept grants and donations of real or personal property for the benefit of its citizens; and Whereas said donations must be accepted via a resolution of the Council adopted by a two-thirds majority of its members. Now, therefore, be it resolved that the Edina City Council accepts with sincere appreciation the following listed donations on behalf of its citizens. ## Parks & Recreation ## Donna Hipps $6,400 2 Bench Donation ## Dennis Schulstad $5,000 Centennial Lakes Park ## Police Department ## $560.97 Active K9 Expenses ## $1,181.85 Retired K9 Expenses ## $1,177.90 Equipment Expenses ## $1,029.50 Recruitment Expenses ## $288.00 Therapy Dog Expenses ## $1,616.95 Public Safety Banquet Expenses ## $27,215.00 TCO Officer Wellness Expenses ## $5,175.00 Business Foot Patrol Expenses ## First Responders Fund ## Total $55,106.02 Dated: June 16, 2026 Page 127 of 401 ## Item Report June 16, 2026 ## City Council ## Item Number: 9.2 Department: Finance ## Item Activity: Action Prepared By: Nelly Chick-Brewer, Assistant Finance Director Item Title: Annual Comprehensive Financial Report for the Year Ended December 31, 2025 ## Action Requested: ## Receive the 2025 Annual Comprehensive Report (ACFR) ## Information/Background: BerganKDV LTD, a firm of licensed certified public accountants, has issued an unmodified(clean) opinion on the City's financial statements for the year ended December 31, 2025. Meaning in their judgment, the City's financial records and statements are fairly presented, and in accordance with Generally Accepted Accounting Principles (GAAP). Assignments for fund balances and compensated absences are all calculated as specified in the policies. In addition, the City has a $31,253,577 unassigned fund balance in the general fund. It is the policy of the City that, to the extent possible, such excess fund will typically be transferred to the Construction Fund to support capital improvements. This amount is $6,337,486 above the goal range identified in the policy. Andy Grice, CPA, from BerganKDV, the Assurance Shareholder on the audit will present the audit results. ## Resources/Financial Impacts: ## 2025 Budgeted Expense ## Relationship to City Policies/Plans/Budget Pillars: ## Strong Foundation ## Reliable Service ## Livable City ## Better Together ## Values Impact: ## Stewardship As required under Minnesota Statutes 302A.463, annual financial reporting promotes transparency and accountability in managing the city's resources. By offering detailed insights into the city’s financial position, expenditures, and revenues, these reports support informed decision-making and demonstrate responsible stewardship of public funds. Page 128 of 401 ## Supporting Documentation: Documents marked with "Board Portal" do not meet ADA Web Content Accessibility Guidelines (URL) and are not included in the public packet. To request a board portal document, please submit a data request (URL). ## 1. Annual Comprehensive Financial Report - 2025 Edina 2. Communication Letter - 2025 Edina - Final 3. Government Auditing Standards & Legal Compliance- 2025 Edina - Final ## 4. Edina Audit Presentation Page 129 of 401 Page 130 of 401 ## City of Edina, Minnesota ## Annual Comprehensive Financial Report ## Fiscal Year Ended December 31, 2025 Prepared by: ## Department of Finance ## Pa Thao – Finance Director ## Nelly Chick-Brewer – Assistant Finance Director Page 131 of 401 Page 132 of 401 ## City of Edina ## Table of Contents ## Introductory Section ## Elected Officials and Administration 3 ## Organizational Chart 4 Letter of Transmittal 5 ## Certificate of Achievement for Excellence in Financial Reporting 9 ## Financial Section ## Independent Auditor's Report 13 ## Management's Discussion and Analysis 17 ## Basic Financial Statements ## Government-Wide Financial Statements ## Statement of Net Position 32 Statement of Activities 33 ## Fund Financial Statements ## Balance Sheet – Governmental Funds 34 Reconciliation of the Balance Sheet to the Statement of Net Position – Governmental Funds 35 ## Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 36 ## Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities – Governmental Funds 37 ## Statement of Net Position – Proprietary Funds 38 ## Statement of Revenues, Expenses, and Changes in Fund Net Position ## Proprietary Funds 39 ## Statement of Cash Flows – Proprietary Funds 40 ## Statement of Fiduciary Net Position – Custodial Funds 41 Statement of Changes in Fiduciary Net Position – Custodial Funds 41 ## Notes to Basic Financial Statements 45 ## Required Supplementary Information ## Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – General Fund 94 ## Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – Housing and Redevelopment Authority (HRA) Fund 98 ## Schedule of City's Proportionate Share of Net Pension Liability ## – General Employees Retirement Fund 99 ## Schedule of City's Proportionate Share of Net Pension Liability ## – Public Employees Police and Fire Retirement Fund 99 ## Schedule of City Contributions – General Employees Retirement Fund 100 ## Schedule of City Contributions – Public Employees Police and Fire ## Retirement Fund 100 Schedule of Changes in Total OPEB Liability and Related Ratios 101 ## Notes to Required Supplementary Information 112 ## Supplementary Information ## Nonmajor Governmental Funds – Special Revenue Funds 115 ## Combining Balance Sheet 116 Page 133 of 401 ## City of Edina ## Table of Contents ## Supplementary Information (Continued) ## Nonmajor Governmental Funds – Special Revenue Funds (Continued) Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 117 ## Schedule of Revenues, Expenditures, and Changes in Fund Balance ## – Budget and Actual – Community Development Block Grant 118 ## Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Police 119 ## Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Braemar Memorial 120 ## Schedule of Revenues, Expenditures, and Changes in Fund Balance ## Budget and Actual – Pedestrian and Cyclist Safety 121 ## Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Conservation and Sustainability 122 ## Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Opioid Settlement 123 ## Schedule of Revenues, Expenditures, and Changes in Fund Balance ## – Budget and Actual – Public Safety Fund 124 ## Major Governmental Funds 125 ## Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Governmental Fund – Debt Service 126 ## Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Governmental Fund – Construction Capital Projects 127 ## Nonmajor Proprietary Funds - Enterprise Funds 129 ## Combining Statement of Net Position 130 Combining Statement of Revenues, Expenses, and Changes in Net Position 131 ## Combining Statement of Cash Flows 132 ## Fiduciary Funds – Custodial Funds 133 ## Statement of Fiduciary Net Position 134 ## Statement of Changes in Fiduciary Net Position 134 Schedule of Balance Sheet Accounts – Tax Increment Financing Districts 135 ## Schedule of Revenues, Expenditures, and Changes in Fund Balances ## – Tax Increment Financing Districts 136 ## Statistical Section (Unaudited) Table Page ## Financial Trends Net Position by Component 1 140 Change in Net Position 2 141 ## Fund Balances of Governmental Funds 3 142 ## Changes in Fund Balances of Governmental Funds 4 143 ## Revenue Capacity ## Taxable and Estimated Market Values of Taxable Property 5 144 ## Property Tax Rates – Direct and Overlapping Governments 6 145 ## Principal Property Taxpayers 7 146 ## Property Tax Levies and Collations 8 147 ## Debt Capacity ## Legal Debt Margin Information 9 148 Ratios of Outstanding Debt by Type 10 149 ## Direct and Overlapping Governmental Activities Debt 11 150 ## Legal Debt Margin Information 12 151 Page 134 of 401 ## City of Edina ## Table of Contents ## Statistical Section (Unaudited) (Continued) Table Page ## Demographic and Economic Information ## Pledged Revenue Coverage 13 152 Demographic and Economic Statistics 14 153 Principal Employers 15 154 ## Full-Time City Government Employees by Function 16 155 Operating Indicators by Function 17 156 ## Capital Asset Statistics by Function 18 157 Page 135 of 401 Page 136 of 401 1 ## INTRODUCTORY SECTION Page 137 of 401 2 Page 138 of 401 3 ## City of Edina ## Elected Officials and Administration December 31, 2025 ## Elected/Appointed ## Position ## Term Expires ## James Hovland ## Mayor December 31, 2029 ## Carolyn Jackson ## Council Member December 31, 2029 ## James Pierce ## Council Member December 31, 2029 ## Kate Agnew ## Council Member December 31, 2026 ## Julie Risser ## Council Member December 31, 2026 ## Scott Neal ## City Manager ## Appointed ## Pa Thao ## Finance Director/Treasurer ## Appointed ## Sharon Allison ## City Clerk ## Appointed Page 139 of 401 4 ## City of Edina ## Organizational Chart December 31, 2025 Page 140 of 401 June 5, 2026 To the Honorable Mayor, City Council, and Citizens of the City of Edina (City): Minnesota statutes require that every city publish within six months of the close of each fiscal year a complete set of audited financial statements. This report is published to fulfill that requirement for the fiscal year ended December 31,2025. Management assumes full responsibility for the completeness and reliability of all the information presented in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable rather than absolute assurance that the financial statements are free from material misstatement. BerganKDV LTD, a firm of licensed certified public accountants, has issued an unmodified (clean) opinion on the City’s financial statements for the year ended December 31, 2025. The independent auditors’ report is located at the front of the financial section of this report. Management’s Discussion and Analysis (MD&A) immediately follows the independent auditors’ report and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it. Profile of the City The City of Edina is a fully developed first-ring suburb of Minneapolis. The City is home to a residential population of 54,785 and also has strong daytime population with more than 67,000 jobs. The residential population is slowly increasing and the employment conditions are stable. The City occupies a land area of 16 square miles. The majority of the City consists of strong residential neighborhoods (60% of land area). 15% of the City is used for commercial, industrial and public/semi-public uses. 21% of the City is used for parks and open spaces. The balance of the land (4%) is used for roadways. Incorporated in 1888, the City is empowered to levy a property tax on real property located within its boundaries. The City has operated under the Council-Manager form of government since 1955. Policy-making and legislative authority are vested in a City Council (Council) consisting of the Mayor and four other members, all elected on a nonpartisan basis. The Council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and hiring the City Manager. The City Manager is responsible for carrying out the policies and ordinances of the Council, for overseeing the day-to-day operations of the city government, and for appointing the heads of the various departments. Council members serve four-year terms, with two Council members elected every two years. The Mayor also serves a four-year term. The Council and Mayor are elected at large. The City provides a full range of services, including police, fire and emergency medical services; the construction and maintenance of highways, streets, and other infrastructure; water and sewer services and recreational and cultural activities and events. 5 Page 141 of 401 The Council is required to adopt a final budget by no later than the close of the previous fiscal year. The annual budget serves as the foundation for the City’s financial planning and control. The budget is prepared by fund, function (e.g., public safety), and department (e.g., police). Department heads may use resources within a department as they see fit. The City Manager may authorize transfers of budgeted amounts between departments. ## Local Economy The City currently enjoys a favorable economic environment and local indicators point to continued stability. The region, while noted for a strong retail sector, enjoyed considerable re-development in recent years. The re-development consisted of varied manufacturing, medical and high-tech base that adds to the relative stability of the unemployment rate. Major industries with headquarters or divisions within the government’s boundaries or in close proximity include medical services, retail operations and banking services. Edina is home to over 67,000 jobs that are expected to remain stable over the coming years. The City has become known for its quality residential housing stock and attractive neighborhoods. To date, approximately 98% of the available housing stock is in place. Although the emphasis has changed over the years from exclusively single-family housing to a more balanced mix of housing types, the City’s concern for overall quality in residential development remains a top priority. The City enjoys a AAA bond rating and a Aaa bond rating from Standard and Poor’s and Moody’s, respectively. ## Long-Term Financial Planning The Metropolitan Council requires all cities in the seven-county metropolitan area to have a Comprehensive Plan and state law requires cities to update their plans every 10 years. The last plan was adopted in 2020. The Comprehensive Plan guides development and redevelopment and addresses changes likely to occur due to various social and market forces. The City continues to focus on quality-of-life improvements throughout Edina. These efforts cover a broad array of areas including protecting and improving the environment, revitalization of parks and public areas, expanding recreational opportunities, addressing race and equity disparities, and increasing communication between City representatives and the public. The City is working closely with state government, federal government and neighboring communities to improve the area’s state and county transportation network, which includes upgraded highways and well- placed pathways. Funding for most of the transportation improvements will need to come from state, county, and federal sources, with some minor portion supported by the local taxpayers. ## Relevant Financial Policies The City has adopted a set of financial management policies that focus on long-term financial planning. Policies cover areas such as cash and investments, the operating budget, revenue, fund balance, capital outlay, and debt management. Assignments for fund balances and compensated absences are all calculated as specified in the policies. In addition, the City has $31,253,577 unassigned fund balance in the general fund. It is the policy of City that, to the extent possible, such excess fund will typically be transferred to the Construction Fund to support capital improvements. This amount is $6,337,486 above the goal range identified in the policy. 6 Page 142 of 401 ## Pa Thao, ## Finance Directo r ## Major Initiatives The City is continually working to update our aging infrastructure. Our annually adopted six-year Capital Improvement Plan includes spending and financing projections for these projects. ## Awards and Acknowledgements 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 Edina for its Annual Comprehensive Financial Report for the fiscal year ended December 31, 2024. This was the fifteenth consecutive year that the government has achieved this prestigious award. To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report would not have been possible without the dedicated services of the Finance Department staff. We would like to express our appreciation to all members of the department who assisted and contributed to the preparation of this report. Credit also must be given to the Mayor and the City Council for their unfailing support for maintaining the highest standards of professionalism in the management of the City’s finances. Respectfully submitted, ## Nelly Chick-Brewer, Assistant Finance Director 7 Page 143 of 401 8 ## (THIS PAGE LEFT BLANK INTENTIONALLY) Page 144 of 401 9 ## City of Edina ## Certificate of Achievement for Excellence in Financial Reporting Page 145 of 401 10 ## (THIS PAGE LEFT BLANK INTENTIONALLY) Page 146 of 401 11 ## FINANCIAL SECTION Page 147 of 401 12 ## (THIS PAGE LEFT BLANK INTENTIONALLY) Page 148 of 401 13 ## Independent Auditor's Report ## City Council and Management ## City of Edina ## Edina, Minnesota Report on the Audit of the Financial Statements ## Opinions We have audited the accompanying financial statements of the governmental activities, the business- type activities, each major fund, and the aggregate remaining fund information of the City of Edina, as of and for the year ended December 31, 2025, and the related notes to the financial statements, which collectively comprise the City of Edina's basic financial statements as listed in the Table of Contents. In our opinion, the financial statements referred to above 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 Edina, as of December 31, 2025, and the respective changes in financial position, and, where applicable, cash flows thereof 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 Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Edina 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. ## Responsibilities of Management for the Financial Statements 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 Edina's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Page 149 of 401 14 ## 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 auditors' 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. ## 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 Governmental Accounting Standards Board (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 GAAS, 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. Page 150 of 401 15 ## Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Edina's basic financial statements. The accompanying supplementary information identified in the Table of Contents is presented for purposes of additional analysis and is 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 GAAS. 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 report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors' 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. ## Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 5, 2026, on our consideration of the City of Edina'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 the City of Edina's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Edina's internal control over financial reporting and compliance. ## Minneapolis, Minnesota June 5, 2026 Page 151 of 401 16 ## (THIS PAGE LEFT BLANK INTENTIONALLY) Page 152 of 401 17 ## City of Edina ## Management's Discussion and Analysis ## Year Ended December 31,2025 As management of the City of Edina (the City), we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2025. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which precedes this report. ## FINANCIAL HIGHLIGHTS • The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $437,332,256, resulting in a positive net position. Of this amount, $75,631,751 represents unrestricted net position which is available to support the City's ongoing operations and financial obligations in line with its established fund designations and fiscal policies. The City's total net position increased by $49,561,447 compared to the prior year. Of this growth, $38,408,216 resulted from Governmental Activities, while $11,153,231 came from Business-Type Activities. • At the close of the 2025 fiscal year, the City's governmental funds reported combined ending fund balances of $154,019,326, an increase of $2,898,230 from the prior year. The growth was driven primarily by increases in the Housing and Redevelopment Authority fund of $997,036, the construction fund of $14,283,714, and the general fund of $5,027,059, partially offset by a decrease of $16,714,031 in the debt service fund and $695,548 in nonmajor governmental funds. • At the end of the current fiscal year, unassigned fund balance for the general fund was $31,253,577, or 50% of total general fund expenditures. • The City's total bonded debt increased by $2,421,000 during the current fiscal year from $186,366,00 at the end of 2024 due to the debt issuance of General Obligation Bonds, Series 2025A in the amount of $22,345,000 & Series 2025B in the amount of $8,785,000, offset by scheduled principal bond payments which included a $17,000,000 repayment of the 2022B temporary CIP bonds. ## OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements. ## Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private-sector business. Page 153 of 401 18 ## City of Edina ## Management's Discussion and Analysis ## Year Ended December 31,2025 ## OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) ## Government-Wide Financial Statements (Continued) The statement of net position presents information on all of the City's assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference between them reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public works, and parks. The business-type activities of the City include water, sewer, stormwater, recycling, liquor, aquatic center, golf course, arena, and community activity centers. ## Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. ## Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financial requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statement. By doing so, readers may better understand the long-term impact of the City's near-term financial decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and change in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Page 154 of 401 19 ## City of Edina ## Management's Discussion and Analysis ## Year Ended December 31,2025 ## OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) ## Governmental Funds (Continued) The City maintains four individual major governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, Housing and Redevelopment Authority fund, debt service fund, and the construction fund. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds are provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for all governmental and proprietary funds. A budgetary comparison statement has been provided for all governmental funds to demonstrate compliance with these budgets. ## Proprietary Funds The City maintains five major enterprise funds and four internal service funds. Enterprise funds are used to report the same functions presented as business-type activities in the governmental-wide financial statements. The City's major enterprise funds are used to account for its utility, liquor, aquatic center, golf, and arena operations. Data from the other enterprise funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor enterprise funds are provided in the form of combining statements elsewhere in this report. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. ## Internal Service Funds Internal service funds are used as an accounting device to accumulate and allocate costs internally among the City's various functions. The City utilizes four internal service funds to account for insurance and risk management activities, equipment operations, IT services, and facilities management. These services have been allocated proportionately to governmental and business-type activities in the government-wide financial statements. ## Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. ## Notes to the Basic Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government–wide and fund financial statements. Page 155 of 401 20 ## City of Edina ## Management's Discussion and Analysis ## Year Ended December 31,2025 ## OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) ## Other Information The combining and individual fund financial statements and schedules referred to earlier in connection with nonmajor governmental and enterprise funds, as well as internal service funds, are presented immediately following the required supplementary information. Supplementary financial information and the statistical section are the final two items presented. ## GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $437,332,256 at the close of the most recent fiscal year. The largest portion of the City's net position ($269,242,363 or 62%) reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. ## Summary Statements of Net Position 202520242025202420252024 Current and other assets201,698,330$ 206,044,461$ 73,938,627$ 63,712,665$ 275,636,957$ 269,757,126$ Capital assets267,180,136 228,852,218 161,016,387 157,273,833 428,196,523 386,126,051 Total assets468,878,466 434,896,679 234,955,014 220,986,498 703,833,480 655,883,177 Deferred outflows of resources OPEB plan deferments1,854,364 2,089,913 172,264 194,145 2,026,628 2,284,058 Pension plan deferments15,712,087 20,449,008 741,891 835,988 16,453,978 21,284,996 Total deferred outflows of resources17,566,451 22,538,921 914,155 1,030,133 18,480,606 23,569,054 ## Liabilities Long-term liabilities outstanding160,949,380 147,001,883 58,564,995 54,998,335 219,514,375 202,000,218 Other liabilities26,309,768 45,175,059 11,919,526 12,289,340 38,229,294 57,464,399 Total liabilities187,259,148 192,176,942 70,484,521 67,287,675 257,743,669 259,464,617 ## Deferred Inflows of Resources OPEB plan deferments1,594,819 1,793,307 148,154 166,591 1,742,973 1,959,898 Pension plan deferments22,401,571 26,347,538 1,959,081 2,438,183 24,360,652 28,785,721 Leases1,134,536 1,471,186 - - 1,134,536 1,471,186 Total deferred inflows of resources25,130,926 29,612,031 2,107,235 2,604,774 27,238,161 32,216,805 ## Net Position Net invested in capital assets161,526,746 131,971,012 107,715,617 102,429,959 269,242,363 234,400,971 Restricted91,216,438 88,258,611 1,241,704 1,243,768 92,458,142 89,502,379 Unrestricted21,311,659 15,417,004 54,320,092 48,450,455 75,631,751 63,867,459 Total net position274,054,843$ 235,646,627$ 163,277,413$ 152,124,182$ 437,332,256$ 387,770,809$ ## Governmental ActivitiesBusiness-Type ActivitiesTotal Page 156 of 401 21 ## City of Edina ## Management's Discussion and Analysis ## Year Ended December 31,2025 ## GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED) ## Governmental Activities A portion of the City's net position ($92,458,142) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position ($75,631,751) may be used to meet the City's ongoing obligations to citizens and creditors. 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, both for the government as a whole, as well as for its separate governmental and business-type activities. The same situation held true for the prior fiscal year. There was an increase of $11,764,292 in unrestricted net position. This was mainly due to positive operations. The decreases in deferred outflows of resources and deferred inflows of resources relate to the changes in the City's share of state pension plan amounts while the increase in long-term liabilities is primarily attributable to newly issued debt, offset by regular scheduled payments on the City's outstanding bonds. As shown on the following page, the City's net position increased by $49,561,447 during the current fiscal year. Factors contributing to this change are discussed in the next two sections. Page 157 of 401 22 ## City of Edina ## Management's Discussion and Analysis ## Year Ended December 31,2025 ## GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED) ## Governmental Activities (Continued) ## Changes in Net Position 202520242025202420252024 ## Revenues Program revenues Charges for services18,215,168$ 15,612,510$ 59,069,482$ 58,236,983$ 77,284,650$ 73,849,493$ Operating grants and contributions8,615,771 5,653,563 210,066 225,531 8,825,837 5,879,094 Capital grants and contributions18,093,522 10,997,515 54,999 - 18,148,521 10,997,515 General revenues Property taxes57,829,251 53,412,154 - - 57,829,251 53,412,154 Other taxes15,928,102 13,066,883 - 4,875 15,928,102 13,071,758 Gain on disposal of assets262,622 394,009 19,369 52,607 281,991 446,616 Unrestricted investment earnings6,388,002 3,949,750 2,959,530 1,830,869 9,347,532 5,780,619 Total revenues125,332,438 103,086,384 62,313,446 60,350,865 187,645,884 163,437,249 ## Expenses General government13,080,465 19,817,993 - - 13,080,465 19,817,993 Public safety35,649,598 32,565,377 - - 35,649,598 32,565,377 Public works20,630,137 17,270,199 - - 20,630,137 17,270,199 Parks10,217,789 9,035,898 - - 10,217,789 9,035,898 Interest on long-term debt4,457,837 1,993,206 - - 4,457,837 1,993,206 Water- - 7,630,315 6,908,508 7,630,315 6,908,508 Sewer- - 10,022,477 9,258,115 10,022,477 9,258,115 Stormwater- - 5,115,530 4,597,085 5,115,530 4,597,085 Recycling- - 1,810,261 1,884,856 1,810,261 1,884,856 Liquor- - 10,695,186 12,182,004 10,695,186 12,182,004 Aquatic center- - 1,376,667 1,411,631 1,376,667 1,411,631 Golf course- - 5,551,162 5,664,944 5,551,162 5,664,944 Arena- - 3,632,146 3,374,912 3,632,146 3,374,912 Community activity centers- - 5,428,159 5,266,795 5,428,159 5,266,795 Total expenses84,035,826 80,682,673 51,261,903 50,548,850 135,297,729 131,231,523 Increase in Net Position Before Transfers41,296,612 22,403,711 11,051,543 9,802,015 52,348,155 32,205,726 Transfers(101,688) 40,144 101,688 (40,144) - - Increase in net position41,194,924 22,443,855 11,153,231 9,761,871 52,348,155 32,205,726 Net position - beginning, as previously stated 235,646,627 212,918,469 152,124,182 141,998,293 387,770,809 354,916,762 Change in accounting principle- 284,303 - 364,018 - 648,321 Prior period restatement(2,786,708) - - - (2,786,708) - Net position - beginning, as restated 232,859,919 213,202,772 152,124,182 142,362,311 384,984,101 355,565,083 Net position December 31274,054,843$ 235,646,627$ 163,277,413$ 152,124,182$ 437,332,256$ 387,770,809$ ## TotalBusiness-Type ActivitiesGovernmental Activities Governmental activities increased the City's net position by $38,408,216, Key elements of the increase are as follows. • Property tax revenues increased by $4,417,097. The increase is primarily attributed to a 2.8% increase in tax capacity and a 3.4% increase in the market value of real properties. • Other taxes increased by $2,861,219 due to local sales tax. Local sales tax revenue increased year-over-year despite the tax rate remaining unchanged. The increase is primarily due to higher sales driven by increased consumer spending, inflationary price increases, and overall economic expansion within the city. Page 158 of 401 23 ## City of Edina ## Management's Discussion and Analysis ## Year Ended December 31,2025 ## GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED) ## Governmental Activities (Continued) • Investment earnings increased by $2,438,252 due to favorable market conditions. • Other capital grants and contributions increased by $7,096,007 in 2025. The increase is mainly due to multiple grants and funding sources from the state, county, federal government, and local partners in support of the TH100 Tight Diamond interchange project. • Charges for services increased by $2,602,658 due to payment to the Housing and redevelopment authority from Southdale redevelopment agreement, increase in ambulance fees, as well as an increase in licenses and permits. Below are specific graphs which provide comparisons of the governmental activities revenues and expenses: Charges for ## Services 15% ## Operating Grants 7% ## Capital Grants 14% ## Property Taxes 46% ## Other Taxes 13% ## Gain on Disposal of Assets 0% ## Investment ## Earnings 5% ## Revenues by Source -Governmental Activities $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 ## General ## Government ## Public SafetyPublic WorksParksInterest on ## Long-Term ## Debt ## Expenses and Program Revenues - ## Governmental Activities ## ExpensesRevenue Page 159 of 401 24 ## City of Edina ## Management's Discussion and Analysis ## Year Ended December 31,2025 ## GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED) ## Business-Type Activities Business-type activities increased net position by $11,153,231, accounting for 22% of the City's growth in net position. Key elements of the current year increase are as follows: • The utility fund had income before contributions and transfers of $12,304,072 for 2025. This additional equity is used to maintain and invest in the utility infrastructure according to the City's capital improvement plan and utility rate study. • The liquor fund had income before contributions and transfers of $400,127 for 2025. This income is used to subsidize operations at other enterprise facilities. • The golf course had an income before contributions and transfers of $977,386. • The other enterprise funds had a loss before contributions and transfers of $2,943,953 in total. These enterprises had operating expenses that exceeded revenues. Charges for services 95% ## Operating grants and contributions 0% ## Unrestricted investment earnings 5% ## Revenues by Source - ## Business - ## Type Activities $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 ## Expenses and Program Revenues - ## Business-Type Activities ## ExpensesRevenue Page 160 of 401 25 ## City of Edina ## Management's Discussion and Analysis ## Year Ended December 31,2025 ## FINANCIAL ANALYSIS OF THE CITY'S FUNDS As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. ## Governmental Funds The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. At the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $154,019,326, an increase of $2,898,230 in comparison with the prior year. Approximately 20% of this total amount ($30,851,954) constitutes unassigned fund balance. The remainder of the fund balance is 1) restricted by external creditors, grantors, laws, or regulations ($107,656,530) or 2) assigned by internal constraints ($15,331,967), or 3) nonspendable in the form of prepaid items ($178,875). The general fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned fund balance of the general fund was $31,253,577. As a measure of the general fund's liquidity, unassigned fund balance represents 50% of total general fund expenditures. At December 31, 2025, the fund balance of the general fund was $35,964,970, an increase of 16.2%, or $5,027,059, from the 2024 fund balance. Key factors related to this increase include: • Overall, revenues increased $3,950,900, or 6.2%, from the prior year, increasing from $63,301,756 to $67,252,656. Property tax revenue increased by $3,505,940 primarily due to an increase in the tax levy. Property taxes are the main source of revenue for the general fund and with fluctuations in other sources; these funds are more heavily relied upon. Licenses and permits revenue increased $858,880 due to an increase in building permits and rental licenses in 2025. All other categories stayed consistent with the prior years. • General fund expenditures increased by $3,176,274, or 5.4%, from $58,959,511 to $62,135,785. Public safety had the largest increase in expenditures of $3,059,663, or 10.3%, as a result of filling vacant police and fire positions as well as non-capital costs related to the fire station 2 project. General government expenditures decreased $947,879 due to the deed grant repayment ending in 2024 as well as Lincoln and Londonderry Small Area Plan consulting ending in 2024. Parks and recreation expenditures increased $705,294 as a result of hiring a new facilities coordinator and a digital marking coordinator. There were also significantly more part-time rink attendants and part-time maintenance hours paid in 2025. All other categories stayed consistent with the prior years. The Housing and Redevelopment Authority fund balance increased by $997,036 in the current fiscal year due to payment for the Southdale redevelopment agreement. Page 161 of 401 26 ## City of Edina ## Management's Discussion and Analysis ## Year Ended December 31,2025 ## FINANCIAL ANALYSIS OF THE CITY'S FUNDS (CONTINUED) ## Governmental Funds (Continued) The debt service fund has a total fund balance of $7,640,287, all of which is restricted for the payment of debt service. The net decrease in fund balance during the current year in the debt service fund was $16,714,031. The decrease was the result of $5,273,981 in general property taxes, $996,250 in intergovernmental revenue, transfers in of $3,634,644, and premium of bonds of $147,185, offset by $27,033,273 in debt service payments. The construction fund balance increased by $14,283,714 in 2025. The increase was as a result of $5,710,061 in general property taxes, $7,427,094 in general sales tax, $4,388,655 in special assessments, $19,698,830 in intergovernmental revenue, $4,338,706 in investment income, and $22,190,113 from new bonds issued, offset by $47,430,765 in construction expenditures. ## Proprietary Funds The City's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net position of the utility fund at the end of the year amounted to $47,571,834. The total growth in net position from current year operations was $10,818,920. Operating revenues in the utilities fund increased by $2,447,959, or 7.7%, while expenses increased by $1,016,090, or 4.5% in 2025. The revenue increase was due to changes in rates and more water and sewer connection fees in 2025. Expenses increased because of an increase in wastewater fees, the York Avenue pond improvement, and annual storm inspections. This was an increase of $1,431,869 in the operating income reported in 2024. The utility fund cash and investment balance increased $9,019,766 during 2025 while the unrestricted net position increased $5,479,886 during the same time period. The utility fund cash and investments exceeded unrestricted net position due to unspent bond proceeds at the end of the year related to capital projects. Unrestricted net position of the liquor fund at the end of the year amounted to $236,114. The liquor fund reported a decrease of $1,566,866, or 12.4%, in sales from prior year along with decrease in costs of sales of 11.4% or $964,229. Operating expenses in the liquor fund decreased $703,561 due to changes in cost of goods purchasing strategies. The liquor fund gross profit percentage remained consistent to prior year. In 2025, the liquor fund cash and investment balance decreased $788,474 while the unrestricted net position decreased $471,533. The liquor fund continues to transfer profits back into other City funds, including the Art Center, the Braemar Arena, and the Centennial Lakes funds. The liquor fund made transfers totaling $1,000,000 to these other funds in 2025. The transfers out were greater than operating income of $335,019 in 2025, leading to the reduction of $594,899 in net position in the liquor fund in 2025. Unrestricted net position of the aquatic center fund at the end of the year amounted to $967,875 and the restricted net position amounted to $1,241,704. In 2025, the aquatic center fund showed an operating loss of $236,177. Even though there is an operating loss in 2025, there is an $81,199 improvement in the operating loss compared to the prior year. The aquatic center fund experienced an increase in operating revenue of $25,564 as a result of more concession sales during the year. The aquatic center fund operating expenses decreased $55,635 due to less repairs and maintenance. In 2025, the aquatic center fund cash and investment balance decreased $364,946 while the unrestricted net position increased $23,859. Page 162 of 401 27 ## City of Edina ## Management's Discussion and Analysis ## Year Ended December 31,2025 ## FINANCIAL ANALYSIS OF THE CITY'S FUNDS (CONTINUED) ## Proprietary Funds (Continued) Unrestricted net position of the golf course fund at the end of the year amounted to $2,103,885, an improvement of $560,842 from the prior year. In 2025, the fund showed an operating income of $854,675. This is an increase of $348,848 in the operating income from the prior year. The golf course fund experienced an increase in operating revenue of $36,899 as a result of early Spring weather and a demand for outdoor golf. The golf course fund operating expenses decreased $311,949 due to negative pension expense as well as less uniform costs. The golf course fund cash and investment balance increased $812,314 and the increase directly related to operating income. Unrestricted net position of the arena fund at the end of the year amounted to a deficit of ($326,780), an increase in the deficit by $76,650 from the prior year. The arena fund had an operating loss of $816,260, an improvement of $173,360 from the prior year. The arena fund had a decrease in operating revenue of $40,608 due to a decrease in ice rentals as well as a decrease in concession sales. The arena fund operating expenses increased $132,752 as a result of an increase in repairs and maintenance. The arena fund cash and investment balance decreased $22,222. The decrease largely related to operating loss, almost entirely offset by operating transfer in and utility contribution in. ## GENERAL FUND BUDGETARY HIGHLIGHTS For the year ended December 31, 2025, the City adopted a balanced budget, with the usage of $1,000,000 from the budget stabilization fund. Actual revenues and transfers in exceeded expenditures and transfers out by $5,027,059 During the year, revenues were $1,743,785 or 2.7% more than budget, as the continued commercial and residential redevelopment of the City increased our charges for services exceeded budget by $1,250,930 as a result of conservative budgeting. Taxes and assessments revenue was under budget by $1,361,622 due to delinquent balances and less cable franchise taxes than anticipated. Licenses and permit revenue and intergovernmental revenue exceeded the budget by $965,962 and $866,529, respectively, due to conservative budgeting. During the year, expenditures were under budget by $3,180,086 or 4.9%. Public works expenditures were under budget by $1,452,449 due to conservative budgeting for increasing costs. Public safety expenditures were under budget by $1,092,770 as a result of staff vacancies during the year. The other sources of expenditures were relatively consistent with the 2025 budget. Page 163 of 401 28 ## City of Edina ## Management's Discussion and Analysis ## Year Ended December 31,2025 ## CAPITAL ASSET AND DEBT ADMINISTRATION ## Capital Assets The City's investment in capital assets for its governmental and business-type activities as of December 31, 2025, amounted to $428,196,523 (net of accumulated depreciation and amortization). This investment in capital assets included land, land improvements, intangible assets such as easements, infrastructure assets (roads, bridges, sidewalks and similar items), buildings, vehicles, equipment, parks, and construction in progress. The total increase in the City's investment in capital assets for the current fiscal year was $42,070,472. Major capital asset events during the current fiscal year included the following: • Construction in progress for utility infrastructure improvements reached $47,198,328 at fiscal year-end, reflecting ongoing water, sanitary sewer, and storm sewer projects. • Construction in progress for street, sidewalk, and park projects reached $33,462,365 at fiscal year-end, reflecting ongoing work such as the TH100 Diverging Diamond Interchange, Concord B/C, Presidents A/B, and France Ave Sidewalk Phase I. • The City has a number of public improvements underway in the Grandview district including parking garage and roadway enhancements. The construction in progress for these projects total $5,653,840 at the close of the fiscal year. • The new fire station 2 construction was completed in 2025 and the construction in progress at the end of the fiscal year was $41,787,992. • Improvements to Braemar Arena and Fred Richards Park construction in progress was at $5,912,746 at the close of the fiscal year. ## City of Edina's Capital Assets (Net of Depreciation) 2025 2024 2025 2024 2025 2024 Land and land improvements 27,445,727 $ 24,740,033 $ 8,036,730 $ 8,719,256 $ 35,482,457 $ 33,459,289 $ ## Easements 253,000 253,000 35,600 35,600 288,600 288,600 Building and structures 29,795,788 29,798,262 11,403,984 12,898,481 41,199,772 42,696,743 Machinery and equipment 15,644,616 14,597,485 5,378,464 5,410,771 21,023,080 20,008,256 ## Infrastructure 85,177,895 78,634,322 87,297,803 85,506,493 172,475,698 164,140,815 ## Parks 9,060,260 8,249,106 823,826 880,483 9,884,086 9,129,589 Construction in progress 99,268,208 72,473,695 47,594,697 43,187,759 146,862,905 115,661,454 Subscription assets 532,193 - - - 532,193 - Lease assets 2,449 106,315 445,283 634,990 447,732 741,305 ## Total 267,180,136 $ 228,852,218 $ 161,016,387 $ 157,273,833 $ 428,196,523 $ 386,126,051 $ ## Total ## Business-Type Activities ## Governmental Activities Additional information on the City's capital assets can be found in Note 3. ## Long-Term Debt At the end of the current fiscal year, the total long-term debt outstanding is $188,787,000, an increase of $2,421,000 from 2024. $60,590,000 is for general obligation improvement debt that is supported by property tax levies and special assessments. Page 164 of 401 29 ## City of Edina ## Management's Discussion and Analysis ## Year Ended December 31,2025 ## CAPITAL ASSET AND DEBT ADMINISTRATION (CONTINUED) ## Long-Term Debt (Continued) $27,014,000 is for permanent improvement revolving (PIR) bonds, which finances the City's Street reconstruction program. This amount increased from 2024 due to new bond issues offset by regularly scheduled principal payment. Also outstanding is $20,715,000 public project revenue bonds which financed two gymnasiums, the new public works facility, sports dome, outdoor rink at the arena, and improvements to Pamela Park. This amount decreased from 2024 due to regularly scheduled principal payments. $12,140,000 is for tax increment financing bonds, for improvements within tax increment districts. This amount decreased from 2024 due to scheduled bond principal payments. Minnesota state aid street bonds has an outstanding balance of $9,470,000 for Municipal state aid eligible costs repaid from future state-aid allotments. $3,065,000 is for housing improvement area bonds issued to finance common area housing improvements within the Edina West Condominium Association Housing Improvement to be supported by special assessments. ## Outstanding Debt 202520242025202420252024 General Obligation Bonds60,590,000$ 60,315,000$ -$ -$ 60,590,000$ 60,315,000$ Permanent Improvement Bonds27,014,000 26,719,000 - - 27,014,000 26,719,000 Public Project Revenue Bonds20,715,000 21,850,000 - - 20,715,000 21,850,000 Tax Increment Financing Bonds12,140,000 12,410,000 - - 12,140,000 12,410,000 Minnesota State Aid Street Bonds9,470,000 9,980,000 - - 9,470,000 9,980,000 Housing Improvement Area (HIA) Bonds 3,065,000 3,065,000 - - 3,065,000 3,065,000 Revenue Bonds- - 55,793,000 52,027,000 55,793,000 52,027,000 Total132,994,000$ 134,339,000$ 55,793,000$ 52,027,000$ 188,787,000$ 186,366,000$ ## Governmental ActivitiesBusiness-Type ActivitiesTotal The City maintains an Aaa rating from Moody's and an AAA rating from Standard & Poor's. State statutes limit the amount of general obligation debt a Minnesota city may issue up to 3% of total Estimated Market Value. The current debt limitation for the City is $516,568,938. Only $84,370,000 of the City's outstanding debt is counted within the statutory limitation. Additional information on the City's long-term debt can be found in Note 5. ## ECONOMIC FACTORS AND NEXT YEAR'S BUDGET The City strives to provide an uncommonly high quality of life for our residents and businesses, and the relatively healthy local economy helps to make this goal a reality. The unemployment rate in Edina has remained under 4% (not seasonally adjusted) since mid-2013, which is below the state and national levels. The City is home to Southdale Center, the nation's first fully enclosed climate- controlled regional shopping mall, Fairview Southdale hospital, as well as several corporate headquarters. In addition to its healthy economy, Edina is known for excellent public schools, as the Edina school system has been consistently selected as one of the best in the country. Ninety-eight percent of students graduate, with eighty-nine percent pursuing some sort of post-secondary education. Page 165 of 401 30 ## City of Edina ## Management's Discussion and Analysis ## Year Ended December 31,2025 ## ECONOMIC FACTORS AND NEXT YEAR'S BUDGET (CONTINUED) Since 2021, market values have continued to rise. From 2024 to 2025, the City's tax capacity increased by $5,824,183, or 2.8%. During the same period, the estimated market value of real estate grew by 3.4% for taxes payable in 2025 (based on 2024 market values). $13,344,357,600 $13,796,381,100 $15,461,411,000 $16,647,040,500 $17,218,964,600 $164,716,554 $169,928,228 $190,473,325 $205,645,781 $211,469,964 $- $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 $300,000,000 $350,000,000 $400,000,000 $450,000,000 $500,000,000 $- $2,000,000,000 $4,000,000,000 $6,000,000,000 $8,000,000,000 $10,000,000,000 $12,000,000,000 $14,000,000,000 $16,000,000,000 $18,000,000,000 $20,000,000,000 2021 2022 2023 2024 2025 ## Market Value and Tax Capacity Annual Changes ## Market Value ## Tax Capacity The City collects property taxes based on tax capacity, which roughly equals estimated market value multiplied by class rates for different types of parcels (commercial, residential, etc.). Class rates are set by state statute. Tax capacity for real estate increased 3.4% in 2024 for taxes payable in 2025 and remained positive for the eleventh consecutive year. All these factors above were considered in preparing the City's budget for the 2025 fiscal year. The City's adopted 2025 budget includes a property tax levy of $59,010,154 for all funds, an increase of 8.4% from the 2024 levy, with the increase being attributed to the scheduled increase to the street reconstruction levy, which will eventually replace special assessments for road reconstruction. The increased levies are also for the City's equipment replacement expenditures, HRA operating expenditures, and general operating levy. ## Financial Contact This financial report is designed to provide a general overview of the City's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the Finance Director, 4801 West 50th Street, Edina, Minnesota 55424. The City's Annual Comprehensive Financial Report can also be found on the internet at www.edinamn.gov. Page 166 of 401 31 ## BASIC FINANCIAL STATEMENTS Page 167 of 401 See notes to basic financial statements. 32 ## Governmental ## Activities ## Business-Type ## ActivitiesTotal ## Assets Current assets Cash and investments (including cash equivalents) 147,772,753$ 59,210,657$ 206,983,410$ Temporarily restricted cash 6,953,545 - 6,953,545 Accrued interest 1,080,198 360,381 1,440,579 Accounts receivable 1,113,495 8,823,405 9,936,900 Delinquent taxes receivable 224,205 - 224,205 Special assessments receivable 23,815,971 608,314 24,424,285 Due from other governments 4,178,494 - 4,178,494 Lease receivable1,383,486 - 1,383,486 Internal balances(2,678,039) 2,678,039 - Inventory - 1,677,462 1,677,462 Prepaid items 852,920 580,369 1,433,289 Total current assets184,697,028 73,938,627 258,635,655 Noncurrent assets Loan receivable15,230,949 - 15,230,949 Equity interest in joint venture 1,770,353 - 1,770,353 Nondepreciable capital assets121,080,796 47,915,637 168,996,433 Depreciable capital assets (Net)146,099,340 113,100,750 259,200,090 Total noncurrent assets284,181,438 161,016,387 445,197,825 Total assets 468,878,466 234,955,014 703,833,480 ## Deferred Outflows of Resources Defined benefit pension plans15,712,087 741,891 16,453,978 OPEB plan deferments1,854,364 172,264 2,026,628 Total deferred outflows of resources 17,566,451 914,155 18,480,606 ## Liabilities Current liabilities Accounts payable6,053,515 2,591,673 8,645,188 Salaries payable2,803,785 746,575 3,550,360 Accrued interest payable2,012,666 828,482 2,841,148 Contracts payable255,000 307,662 562,662 Due to other governments1,136,519 224,349 1,360,868 Deposits payable2,659,278 - 2,659,278 Unearned revenue 1,685,464 566,726 2,252,190 Total OPEB liability120,423 10,237 130,660 Compensated absences payable2,965,465 490,708 3,456,173 Bonds and loans payable, net6,408,000 5,977,000 12,385,000 Lease liability 2,563 176,114 178,677 Subscription liability 207,090 - 207,090 Total current liabilities26,309,768 11,919,526 38,229,294 Noncurrent liabilities Total OPEB liability4,469,220 416,125 4,885,345 Net pension liability17,133,045 2,900,663 20,033,708 Compensated absences payable4,448,197 736,063 5,184,260 Bonds and loans payable, net134,571,841 54,223,733 188,795,574 Lease liability - 288,411 288,411 Subscriptions payable327,077 - 327,077 Total noncurrent liabilities160,949,380 58,564,995 219,514,375 Total liabilities 187,259,148 70,484,521 257,743,669 ## Deferred Inflows of Resources Defined benefit pension plans22,401,571 1,959,081 24,360,652 OPEB plan deferments1,594,819 148,154 1,742,973 Leases1,134,536 - 1,134,536 Total deferred inflows of resources 25,130,926 2,107,235 27,238,161 ## Net Position Net investment in capital assets 161,526,746 107,715,617 269,242,363 Restricted for Tax increments31,429,140 - 31,429,140 Debt service 7,931,982 1,241,704 9,173,686 Affordable housing4,151,218 - 4,151,218 Highway construction17,653,450 - 17,653,450 Capital projects25,460,909 - 25,460,909 Parkland dedication48,430 - 48,430 Police1,120,734 - 1,120,734 Braemar golf donations133,030 - 133,030 Conservation and sustainablity initiatives1,176,152 - 1,176,152 Public safety1,838,751 - 1,838,751 Opioid epidemic responses272,642 - 272,642 Unrestricted 21,311,659 54,320,092 75,631,751 Total net position 274,054,843$ 163,277,413$ 437,332,256$ ## City of Edina ## Statement of Net Position December 31, 2025 32 Page 168 of 401 See notes to basic financial statements. 33 ## Program Revenues ## Expenses Charges for ## Services ## Operating Grants and ## Contributions ## Capital Grants and ## Contributions ## Governmental ## Activities ## Business-Type ## Activities ## Total Governmental activities General government 13,080,465$ 3,541,521$ 2,244,863$ -$ (7,294,081)$ -$ (7,294,081)$ Public safety 35,649,598 12,547,310 2,625,423 - (20,476,865) - (20,476,865) Public works 20,630,137 1,108,853 3,619,628 18,093,522 2,191,866 - 2,191,866 Parks10,217,789 1,017,484 125,857 - (9,074,448) - (9,074,448) Interest on long-term debt 4,457,837 - - - (4,457,837) - (4,457,837) Total governmental activities 84,035,826 18,215,168 8,615,771 18,093,522 (39,111,365) - (39,111,365) Business-type activities Water 7,630,315 13,473,414 - - - 5,843,099 5,843,099 Sewer10,022,477 12,220,680 - - - 2,198,203 2,198,203 Stormwater5,115,530 6,937,782 - 54,999 - 1,877,251 1,877,251 Recycling1,810,261 1,763,551 201,175 - - 154,465 154,465 Liquor10,695,186 11,074,302 - - - 379,116 379,116 Aquatic Center1,376,667 1,143,074 - - - (233,593) (233,593) Golf Course5,551,162 6,328,908 - - - 777,746 777,746 Arena3,632,146 2,813,362 - - - (818,784) (818,784) Community activity centers5,428,159 3,314,409 8,891 - - (2,104,859) (2,104,859) Total business-type activities 51,261,903 59,069,482 210,066 54,999 - 8,072,644 8,072,644 Total primary government 135,297,729$ 77,284,650$ 8,825,837$ 18,148,521$ (39,111,365) 8,072,644 (31,038,721) General revenues Property taxes 57,829,251- 57,829,251 Franchise fees3,652,054 - 3,652,054 Tax increments4,817,402 - 4,817,402 Lodging taxes31,552 - 31,552 General sales tax7,427,094 - 7,427,094 Unrestricted investment earnings 6,388,002 2,959,530 9,347,532 Gain on sale of capital assets 262,622 19,369 281,991 Transfers (101,688) 101,688 - Total general revenues and transfers 80,306,289 3,080,587 83,386,876 Change in net position 41,194,924 11,153,231 52,348,155 Net position - beginning, as previously stated 235,646,627 152,124,182 387,770,809 Prior period restatement (see note 17)(2,786,708) - (2,786,708) Net position - beginning, as restated 232,859,919 152,124,182 384,984,101 Net position - ending 274,054,843$ 163,277,413$ 437,332,256$ ## Functions/Programs ## City of Edina ## Statement of Activities ## Year Ended December 31, 2025 ## Net (Expense) Revenues ## and Changes in Net Position Page 169 of 401 See notes to basic financial statements. 34 ## General Housing and ## Redevelopment ## Authority ## Debt Service ## Construction ## Nonmajor ## Governmental ## Funds ## Total ## Governmental ## Funds ## Assets Cash and investments 42,440,477 $ 21,508,387 $ 1,423,365 $ 71,410,894 $ 4,244,421 $ 141,027,544 $ Restricted cash and investments - - 6,953,545 - - 6,953,545 Accrued interest 385,895 138,038 23,176 507,748 25,341 1,080,198 Accounts receivable 213,263 19,367 - 93,857 681,201 1,007,688 Taxes receivable 166,389 3,950 22,154 31,712 - 224,205 Special assessments receivable - 4,666,620 1,510,457 17,638,894 - 23,815,971 Leases receivable 1,383,486 - - - - 1,383,486 Due from other funds - - - 373,866 - 373,866 Due from other governments 460,946 137,643 11,951 3,387,137 180,817 4,178,494 Prepaid items 168,043 - - - 10,832 178,875 Loans receivable - 15,230,949 - - - 15,230,949 Total assets 45,218,499 $ 41,704,954 $ 9,944,648 $ 93,444,108 $ 5,142,612 $ 195,454,821 $ ## Liabilities Accounts payable 1,021,075 $ 1,134,312 $ - $ 3,116,621 $ 408,454 $ 5,680,462 $ Salaries payable 2,606,523 9,894 - 7,366 23,963 2,647,746 Contracts payable - - - 218,117 36,883 255,000 Due to other funds - - - - 373,866 373,866 Due to other governments 812,178 251,921 - 32,417 6,683 1,103,199 Deposits payable 2,612,204 47,074 - - - 2,659,278 Unearned revenue 900,624 13,000 771,750 - 90 1,685,464 Total liabilities 7,952,604 1,456,201 771,750 3,374,521 849,939 14,405,015 ## Deferred Inflows of Resources Unavailable revenue - taxes 166,389 3,950 22,154 31,712 - 224,205 Unavailable revenue - special assessments - 4,664,445 1,510,457 17,621,738 - 23,796,640 Unavailable revenue - other - - - 1,732,944 142,155 1,875,099 ## Leases 1,134,536 - - - - 1,134,536 Total deferred inflows of resources 1,300,925 4,668,395 1,532,611 19,386,394 142,155 27,030,480 ## Fund Balances ## Nonspendable 168,043 - - - 10,832 178,875 ## Restricted 48,430 35,580,358 7,640,287 59,846,146 4,541,309 107,656,530 ## Assigned 4,494,920 - - 10,837,047 - 15,331,967 ## Unassigned 31,253,577 - - - (401,623) 30,851,954 Total fund balances 35,964,970 35,580,358 7,640,287 70,683,193 4,150,518 154,019,326 Total liabilities, deferred inflows of resources, and fund balance 45,218,499 $ 41,704,954 $ 9,944,648 $ 93,444,108 $ 5,142,612 $ 195,454,821 $ ## City of Edina ## Balance Sheet - Governmental Funds December 31, 2025 Page 170 of 401 See notes to basic financial statements. 35 ## City of Edina Reconciliation of the Balance Sheet to ## the Statement of Net Position - Governmental Funds December 31, 2025 Total fund balances - governmental funds154,019,326$ Cost of capital assets 450,139,272 Less accumulated depreciation/amortization (184,112,510) Certain revenues are include in net position but are excluded from fund balances until they are available to liquidate liabilities of the current period. Unavailable revenue relating to: Property taxes 224,205 Special assessments 23,796,640 ## Other 1,875,099 Long-term liabilities are included in net position but are excluded from fund balances until due and payable: Bonds payable (132,994,000) Premium on bonds (7,235,841) Loan payable (750,000) Subscription liability (69,683) Lease liability (2,563) Interest payable (2,012,666) Compensated absences payable (7,413,662) Governmental funds do not report long-term amounts relating to OPEB. Deferred outflows of resources and deferred inflows of resources are created as a result of various differences related to OPEB that are not recognized in the governmental funds: Deferred inflows of resources related to OPEB (1,594,819) Deferred outflows of resources related to OPEB 1,854,364 ## Total OPEB liability (4,589,643) Governmental funds do not report long-term amounts relating to pensions. Deferred outflows of resources and deferred inflows of resources are created as a result of various differences related to pensions that are not recognized in the governmental funds: Deferred inflows of resources related to pensions (22,401,571) Deferred outflows of resources related to pensions 15,712,087 Net pension liability (17,133,045) An internal service fund is used by management to charge the costs of insurance to individual funds. The assets and liabilities of the Self-Insurance Internal Service Fund are included in governmental activities in the Statement of Net Position. 4,973,500 Equity interests in underlying capital assets of joint ventures associated with governmental funds are not reported in such funds because they do not represent financial assets: Equity interest in joint venture 1,770,353 Total net position - governmental activities274,054,843$ Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not current financial resources and, therefore, are not reported as assets in governmental funds: Page 171 of 401 See notes to basic financial statements. 36 ## General Housing and ## Redevelopment ## Authority ## Debt Service ## Construction ## Nonmajor ## Governmental ## Funds ## Total ## Governmental ## Funds ## Revenues General property taxes 46,582,974 $ 255,379 $ 5,273,981 $ 5,710,061 $ - $ 57,822,395 $ Tax increment collections - 4,817,402 - - - 4,817,402 Franchise taxes 687,067 - - 206,120 2,758,867 3,652,054 Lodging tax 31,552 - - - - 31,552 General sales tax - - - 7,427,094 - 7,427,094 Special assessments - 278,325 187,805 4,388,655 - 4,854,785 License and permits 6,787,920 - - 55,514 - 6,843,434 ## Intergovernmental 3,320,489 1,037,882 996,250 19,698,830 310,833 25,364,284 Charges for services 7,563,486 - - 291,174 - 7,854,660 Fines and forfeitures 773,992 - - - - 773,992 Investment income 662,952 1,074,395 79,377 4,338,706 232,572 6,388,002 Rental of property 615,976 - - - - 615,976 Other revenues 226,248 1,705,809 - 128,976 354,512 2,415,545 Total revenues 67,252,656 9,169,192 6,537,413 42,245,130 3,656,784 128,861,175 ## Expenditures ## Current General government 10,343,072 3,565,028 - 70,847 - 13,978,947 Public safety 32,793,465 - - 786,182 202,841 33,782,488 Public works 10,846,809 - - 1,444,326 882,731 13,173,866 ## Parks 7,919,530 - - 241,115 6,225 8,166,870 Capital outlay General government 203,057 1,134,638 - 17,689,263 - 19,026,958 Public safety - - - 14,645,983 490,284 15,136,267 Public works - - - 7,212,749 2,770,251 9,983,000 ## Parks - - - 5,340,300 - 5,340,300 ## Debt Service ## Principal 29,750 - 22,705,000 - - 22,734,750 Interest and fiscal charges 102 - 4,328,273 - - 4,328,375 Total expenditures 62,135,785 4,699,666 27,033,273 47,430,765 4,352,332 145,651,821 Revenues over (under) expenditures 5,116,871 4,469,526 (20,495,860) (5,185,635) (695,548) (16,790,646) ## Other Financing Sources (Uses) Transfers in 225,664 - 3,634,644 - - 3,860,308 Transfers out (350,000) (685,782) - (2,948,862) - (3,984,644) Sale of capital assets 34,524 - - 228,098 - 262,622 Bonds issued - - 147,185 21,212,815 - 21,360,000 Premium on bonds issued - - - 977,298 - 977,298 Total other financing sources (uses) (89,812) (685,782) 3,781,829 19,469,349 - 22,475,584 ## Net Increase (Decrease) ## in Fund Balance 5,027,059 3,783,744 (16,714,031) 14,283,714 (695,548) 5,684,938 Fund Balance - beginning, as previously stated 30,937,911 34,583,322 24,354,318 56,399,479 4,846,066 151,121,096 Prior period restatement (see note 17) - (2,786,708) - - - (2,786,708) Fund Balance - beginning, as restated 30,937,911 31,796,614 24,354,318 56,399,479 4,846,066 148,334,388 Fund Balance - end of year 35,964,970 $ 35,580,358 $ 7,640,287 $ 70,683,193 $ 4,150,518 $ 154,019,326 $ ## City of Edina ## Statement of Revenues, Expenditures, and ## Changes in Fund Balances - Governmental Funds ## Year Ended December 31, 2025 Page 172 of 401 See notes to basic financial statements. 37 Reconciliation of the Statement of Revenues, ## Expenditures, and Changes in Fund Balances to ## Year Ended December 31, 2025 5,684,938$ Capital outlays are reported in governmental funds as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense: Capital outlays 49,612,639 Depreciation/amortization expense (11,785,984) Loss on disposal of capital assets (45,487) Revenues relating to delinquent taxes, special assessments, and other unavailable receivables are included in the change in net position but are excluded from the net change in fund balances until they are available to liquidate liabilities of the current period. (4,014,806) The issuance of long-term debt provides current financial resources to governmental funds, while repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds reported the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities: Proceeds from bonds issued (21,360,000) Premium on bonds issued (977,298) Bond principal payments and adjustments 22,705,000 Lease principal payments and adjustments 3,006 Subscription principal payments and adjustments 26,744 Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore, are not reported as expenditures in governmental funds: Amortization of bond premium 804,778 Accrued interest payable (934,240) Compensated absences (307,421) ## OPEB (445,471) Pension costs in governmental funds are recognized when employer contributions are made. On the Statement of Activities pension costs are recognized on the accrual basis. The difference between actual employer contributions and accrual basis pension costs is reflected in pension expense: Pension expense 1,280,433 An internal service fund is used by management to charge the costs of insurance to individual funds. The change in net position of the Self-Insurance Internal Service Fund is included in governmental activities in the Statement of Net Position. 948,093 Change in net position - governmental activities 41,194,924$ Net change in fund balances - governmental funds Amounts reported for governmental activities in the Statement of Activities are different because: ## the Statement of Activities - Governmental Funds ## City of Edina Page 173 of 401 See notes to basic financial statements. 38 ## Governmental ## Activities ## UtilitiesLiquorAquatic CenterGolf CourseArena ## Nonmajor ## Enterprise ## Funds ## Total ## Enterprise ## Funds ## Internal ## Service Funds ## Assets Current assets Cash and investments (including cash equivilants)49,430,052$ 524,749$ 1,852,867$ 4,232,253$ 408,009$ 2,762,727$ 59,210,657$ 6,745,209$ Interest receivable288,978 7,115 15,604 31,457 2,871 14,356 360,381 - Accounts receivable, net8,126,360 108,218 - 68,894 245,811 274,122 8,823,405 105,807 Special assessments receivable608,314 - - - - - 608,314 - Due from other funds- - 394,618 - - - 394,618 - Prepaid expenses579,152 - 521 696 - - 580,369 674,045 Inventory31,034 1,476,586 - 169,842 - - 1,677,462 - Total current assets59,063,890 2,116,668 2,263,610 4,503,142 656,691 3,051,205 71,655,206 7,525,061 Noncurrent assets Net capital assets139,003,413 1,110,119 600,188 8,794,736 4,808,176 6,699,755 161,016,387 1,153,374 Total assets198,067,303 3,226,787 2,863,798 13,297,878 5,464,867 9,750,960 232,671,593 8,678,435 ## Deferred Outflows of Resources OPEB deferred outflows42,154 32,426 - 38,911 18,848 39,925 172,264 - Pension deferred outflows209,668 151,953 7,544 143,357 79,988 149,381 741,891 - Total deferred outflows of resources251,822 184,379 7,544 182,268 98,836 189,306 914,155 - ## Liabilities Current liabilities Accounts payable1,263,618 464,943 - 373,160 268,319 221,633 2,591,673 373,053 Salaries payable215,716 122,349 3,568 141,846 93,857 169,239 746,575 156,039 Accrued interest payable732,209 - 3,250 73,894 19,129 - 828,482 - Contracts payable295,832 - - 11,830 - - 307,662 - Due to other funds- - - - - 394,618 394,618 - Due to other governments29,381 150,863 22 19,526 10,766 13,791 224,349 33,320 Unearned revenue- 17,037 - 523,885 3,634 22,170 566,726 - Compensated absences payable126,714 82,493 2,127 152,156 39,914 87,305 490,708 - Total OPEB liability - current2,5051,927- 2,3121,1202,373 10,237 - Bonds payable - current4,930,000 - 95,000 665,000 287,000 - 5,977,000 - Lease liability - current- - - 167,752 8,362 - 176,114 - Subscription liability- current- - - - - - - 464,484 Total current liabilities7,595,975 839,612 103,967 2,131,361 732,101 911,129 12,314,144 1,026,896 Noncurrent liabilities Total OPEB liability101,829 78,329 - 93,995 45,529 96,443 416,125 - Net pension liability819,768 594,109 29,496 560,498 312,737 584,055 2,900,663 - Compensated absences payable190,070 123,739 3,191 228,233 59,872 130,957 736,063 - Bonds payable, net of unamortized discounts and premiums47,623,758 - 104,639 4,799,953 1,695,383 - 54,223,733 - Lease liability- - - 286,993 1,418 - 288,411 - Total noncurrent liabilities48,735,425 796,177 137,326 5,969,672 2,114,939 811,455 58,564,995 - Total liabilities56,331,400 1,635,789 241,293 8,101,033 2,847,040 1,722,584 70,879,139 1,026,896 ## Deferred Inflows of Resources OPEB deferred inflows36,254 27,888 - 33,465 16,210 34,337 148,154 - Pension deferred inflows553,664 401,256 19,921 378,555 211,220 394,465 1,959,081 - Total deferred intflows of resources589,918 429,144 19,921 412,020 227,430 428,802 2,107,235 - ## Net Position Net investment in capital assets93,825,973 1,110,119 400,549 2,863,208 2,816,013 6,699,755 107,715,617 688,890 Restricted for Edina Law Debt- - 1,241,704 - - - 1,241,704 - Unrestricted47,571,834 236,114 967,875 2,103,885 (326,780) 1,089,125 51,642,053 6,962,649 Total net position141,397,807$ 1,346,233$ 2,610,128$ 4,967,093$ 2,489,233$ 7,788,880 160,599,374$ 7,651,539$ Explanation of different between proprietary funds statement of revenue, expenses, and changes in fund net position and the Statement of Activities. The City uses internal service funds to charge the cost of its risk management, equipment operations, IT, and facilities management to individual funds. This amount represents the total income that has been allocated back to the business-type activities in the government-wide Statement of Activities that is attributable to the City's business-type activities each year. 2,678,039 Net position of business-type activities163,277,413$ ## Business-Type Activities - Enterprise Funds ## City of Edina ## Statement of Net Position - Proprietary Funds December 31, 2025 Page 174 of 401 See notes to basic financial statements. 39 ## Governmental ## Activities ## UtilitiesLiquorAquatic CenterGolf CourseArena ## Nonmajor ## Enterprise ## Funds ## Total ## Enterprise ## Funds ## Internal ## Service Funds ## Operating Revenues Sales - liquor-$ 10,838,729$ -$ -$ -$ -$ 10,838,729$ -$ Sales - retail- 235,573 2,296 426,958 26,393 5,241 696,461 - Sales - utilities31,655,419 - - - - - 31,655,419 - Sales - concessions- - 171,095 8,321 301,272 122,841 603,529 - Memberships- - 277,895 336,885 - 171,713 786,493 - Admissions- - 609,276 1,278,754 17,647 758,273 2,663,950 - Building rental- - 82,512 214,290 2,257,912 798,753 3,353,467 - Rental of equipment- - - 526,388 6,486 437,326 970,200 - Greens fees- - - 2,384,889 - 316,737 2,701,626 - Other fees2,735,789 - - 1,150,215 203,652 669,789 4,759,445 10,003,651 Total operating revenues34,391,208 11,074,302 1,143,074 6,326,700 2,813,362 3,280,673 59,029,319 10,003,651 ## Operating Expenses Cost of sales and services- 7,466,843 92,996 315,200 141,103 48,085 8,064,227 - Personal services3,125,921 1,970,188 661,686 2,610,512 1,341,536 2,616,229 12,326,072 3,224,198 Contractual services11,159,069 671,393 278,407 729,435 1,281,755 1,112,997 15,233,056 4,013,544 Commodities1,212,771 48,486 94,132 418,341 69,486 304,291 2,147,507 1,191,698 Internal services1,642,183 459,007 52,536 457,202 275,494 418,465 3,304,887 - Depreciation and amortization6,432,344 123,366 199,494 941,335 520,248 964,700 9,181,487 335,515 Total operating expenses23,572,288 10,739,283 1,379,251 5,472,025 3,629,622 5,464,767 50,257,236 8,764,955 Operating income (loss)10,818,920 335,019 (236,177) 854,675 (816,260) (2,184,094) 8,772,083 1,238,696 ## Nonoperating Revenues (Expenses) Intergovernmental256,174 - - - - - 256,174 - Investment income2,374,455 65,108 133,851 243,564 22,342 120,210 2,959,530 - Donations- - - - - 35,592 35,592 - Interest and fiscal charges(1,884,397) - (8,100) (179,294) (47,192) - (2,118,983) - Amortization of bond premiums (discounts)720,334 - 5,637 56,233 18,201 - 800,405 - Gain (loss) on sale of capital assets14,367 - - - - 5,002 19,369 660 Miscellaneous4,219 - - 2,208 - 7,035 13,462 - Total nonoperating revenues (expenses)1,485,152 65,108 131,388 122,711 (6,649) 167,839 1,965,549 660 Income (loss) before transfers12,304,072 400,127 (104,789) 977,386 (822,909) (2,016,255) 10,737,632 1,239,356 ## Transfers Transfers in- 4,974 22,726 68,216 531,362 1,090,877 1,718,155 22,648 Transfers out(616,467) (1,000,000) - - - - (1,616,467) - Total transfers(616,467) (995,026) 22,726 68,216 531,362 1,090,877 101,688 22,648 Change in net position11,687,605 (594,899) (82,063) 1,045,602 (291,547) (925,378) 10,839,320 1,262,004 Net position - beginning of year129,710,202 1,941,132 2,692,191 3,921,491 2,780,780 8,714,258 149,760,054 6,389,535 Net position - end of year141,397,807$ 1,346,233$ 2,610,128$ 4,967,093$ 2,489,233$ 7,788,880$ 160,599,374$ 7,651,539$ Explanation of different between proprietary funds statement of revenue, expenses, and changes in fund net position and the statement of activities The City uses internal service funds to charge the cost of its risk management, equipment operations, IT, and facilities management to individual funds. This amount represents the total income that has been allocated back to the business-type activities in the government-wide Statement of Activities that is attributable to the City's business-type activities.313,911$ Change in net position of business-type activities11,153,231$ ## Business-Type Activities - Enterprise Funds ## City of Edina ## Statement of Revenues, Expenses, and Changes ## in Net Position - Proprietary Funds ## Year Ended December 31, 2025 Page 175 of 401 See notes to basic financial statements. 40 ## Governmental ## Activities ## UtilitiesLiquor ## Aquatic ## CenterGolf CourseArena ## Nonmajor ## Enterprise ## Funds ## Totals ## Enterprise ## Funds ## Internal ## Service Funds ## Cash Flows - Operating Activities Receipts from customers33,561,538$ 11,077,798$ 1,145,848$ 6,482,011$ 2,798,900$ 3,186,130$ 58,252,225$ 10,046,283$ Payments to suppliers (14,932,474) (8,613,851) (519,706) (1,716,684) (1,653,226) (1,862,570) (29,298,511) (5,290,699) Payments to employees (3,185,024) (2,327,627) (657,008) (2,699,446) (1,384,018) (2,697,601) (12,950,724) (3,210,776) Net cash flows - operating activities 15,444,040 136,320 (30,866) 2,065,881 (238,344) (1,374,041) 16,002,990 1,544,808 ## Cash Flows - Noncapital ## Financing Activities Grants and contributions 260,391 - - 2,208 - 42,627 305,226 - Transfer from other funds- 4,974 22,726 68,216 531,362 1,090,877 1,718,155 22,648 Transfer to other funds (616,467) (1,000,000) - - - - (1,616,467) - Net cash flows - noncapital financing activities(356,076) (995,026) 22,726 70,424 531,362 1,133,504 406,914 22,648 ## Cash Flows - Capital and Related ## Financing Activities Receipts from due from other funds - - - - - 394,618 394,618 - Payments made on due to other funds - - (394,618) - - - (394,618) - Payments on special assessments (122,859) - - - - - (122,859) - Principal paid on debt(4,995,000) - (90,000) (805,615) (287,150) - (6,177,765) 360,674 Interest paid on debt (1,843,136) - (9,601) (189,044) (50,101) (1,308) (2,093,190) - Bond proceeds 10,853,378 - - - - - 10,853,378 - Proceeds from disposal of capital assets 14,367 - - - - 5,002 19,369 (15,577) Acquisition of capital assets (12,347,964) - - (576,077) - - (12,924,041) (790,088) Net cash flows - capital and related financing activities (8,441,214) - (494,219) (1,570,736) (337,251) 398,312 (10,445,108) (444,991) ## Cash Flows - Investing Activities Interest and dividends received 2,373,016 70,232 137,413 246,745 22,011 123,904 2,973,321 - Net change in cash and cash equivalents 9,019,766 (788,474) (364,946) 812,314 (22,222) 281,679 8,938,117 1,122,465 Cash and cash equivalents, January 1 40,410,286 1,313,223 2,217,813 3,419,939 430,231 2,481,048 50,272,540 5,622,744 Cash and cash equivalents, December 31 49,430,052$ 524,749$ 1,852,867$ 4,232,253$ 408,009$ 2,762,727$ 59,210,657$ 6,745,209$ ## Reconciliation of Operating ## Income (Loss) to Net Cash ## Flows - Operating Activities Operating income (loss) 10,818,920$ 335,019$ (236,177)$ 854,675$ (816,260)$ (2,184,094)$ 8,772,083$ 1,238,696$ Adjustments to reconcile operating income (loss) to net cash flows - operating activities Depreciation expense 6,432,344 123,366 199,494 941,335 520,248 964,700 9,181,487 335,515 Accounts receivable (829,670) 3,506 2,774 43,603 (13,378) (93,294) (886,459) (6,514) Due from other governments - (10) - 111,708 (1,084) (1,249) 109,365 49,146 Prepaid items (21,736) - - 4,070 - 1,982 (15,684) 75,102 Inventory 12,887 46,261 - (20,563) - - 38,585 - Accounts payable (717,424) (3,907) (1,627) 208,586 112,212 33,033 (369,127) (183,735) Contracts payable(171,819) - - 11,830 - (13,747) (173,736) - Due to other governmental units (20,359) (10,476) (8) (429) 2,400 18,381 (10,491) 23,176 Salaries payable 40,627 (29,040) 570 13,371 3,742 - 29,270 13,422 OPEB 10,128 7,791 - 9,347 4,528 9,591 41,385 - Pension related activity (141,384) (307,671) (749) (185,650) (64,422) (116,985) (816,861) - Compensated absences payable 31,526 (28,519) 4,857 73,998 13,670 7,641 103,173 - Total adjustments 4,625,120 (198,699) 205,311 1,211,206 577,916 810,053 7,230,907 306,112 Net cash flows - operating activities 15,444,040$ 136,320$ (30,866)$ 2,065,881$ (238,344)$ (1,374,041)$ 16,002,990$ 1,544,808$ ## Noncash Capital and Related ## Financing Activities Acquisition of capital assets on account295,832$ -$ -$ -$ -$ -$ 295,832$ -$ ## Business-Type Activities - Enterprise Funds ## City of Edina ## Statement of Cash Flows - Proprietary Funds ## Year Ended December 31, 2025 Page 176 of 401 See notes to basic financial statements. 41 ## Custodial ## Funds ## Assets Cash and investments290,800$ Accounts receivable 11 Due from other governments 900,484 Total assets1,191,295 ## Liabilities Cash overdraft 519,320 Accounts payable 49,246 Salaries payable 26,283 Due to other governments 207,254 Unearned revenue 5,087 Total liabilities807,190 ## Net Position Held in custody for other governmental units384,105$ ## Custodial ## Funds ## Additions Collections on behalf of others2,748,672$ ## Deductions Payments on behalf of others2,630,974 Change in net position117,698 ## Net Position Beginning of year 266,407 End of year 384,105$ ## Year Ended December 31, 2025 ## Custodial Funds ## Custodial Funds ## City of Edina ## City of Edina ## Statement of Fiduciary Net Position December 31, 2025 ## Statement of Changes Fiduciary Net Position Page 177 of 401 42 ## (THIS PAGE LEFT BLANK INTENTIONALLY) Page 178 of 401 43 ## NOTES TO BASIC FINANCIAL STATEMENTS Page 179 of 401 44 ## (THIS PAGE LEFT BLANK INTENTIONALLY) Page 180 of 401 45 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Edina (the City) was incorporated in 1888 and operates under the state of Minnesota Statutory Plan B form of government. The governing body consists of a five-member City Council elected by voters of the City. The financial statements of the City have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to governmental units by the Governmental Accounting Standards Board (GASB). The following is a summary of significant accounting policies. ## A. Reporting Entity The City's financial reporting entity consists of (a) the primary government, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. The primary government is financially accountable for the component unit if it appoints a voting majority of the component unit's governing body and is able to impose its will on the component unit or there is a potential for the component unit to provide specific financial benefits to, or impose specific financial burdens on, the primary government. As required by accounting principles generally accepted in the United States of America, the financial statements of the reporting entity include those of the City of Edina (the primary government) and its component units. The component unit discussed below is included in the City's reporting entity because of the significance of its operational or financial relationships with the City. ## Component Unit In conformity with accounting principles generally accepted in the United States of America, the financial statements of the component unit have been included in the financial reporting entity as a blended component unit. The Housing and Redevelopment Authority (HRA) is an entity legally separate from the City. However, for financial reporting purposes, the HRA is reported as if it were part of the City's operations for two reasons. First, the HRA's governing body is substantively the same as the governing body of the City. Specifically, the HRA board consists of five members, all of which are City Council members. Second, management of the City has operational responsibility for the HRA. Specifically, sales of bonds or other obligations of the HRA are approved by the City Council; the HRA follows the budget process for City departments in accordance with City policy; the annual HRA budget is approved by City Council; the HRA submits its plan for development and redevelopment to the City Council for approval; lastly, the administrative structure and management practices and policies of the HRA are approved by the City Council. The activity of the HRA is reported in the Special Revenue Funds. Separate financial statements are not prepared for the HRA. ## B. 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. Governmental activities, which normally are supported by taxes, intergovernmental revenues, and other nonexchange transactions, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Page 181 of 401 46 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ## B. Government-Wide and Fund Financial Statements (Continued) The statement of activities demonstrates the degree to which the direct expenses of a given function or business-type activity are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or business-type activity. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or business-type activity and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or business type activity. Taxes and other items not included among program revenues are reported instead as general revenues. 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 enterprise funds are reported as separate columns in the fund financial statements. Aggregated information for the remaining nonmajor governmental and enterprise funds is reported in a single column in the fund financial statements. ## C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. The City's only fiduciary fund type, custodial funds, are custodial in nature and use the economic resources measurement focus. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of 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 all revenues, except reimbursement grants, 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, other postemployment benefits (OPEB), net pension liabilities, and claims and judgments are recorded only when payment is due. Property taxes, special assessments, intergovernmental revenues, charges for services and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. Page 182 of 401 47 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) The City reports the following major governmental funds: General Fund – This fund is the government's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. Special Revenue Housing and Redevelopment Authority Fund – This fund is used to account for revenues from several sources (property taxes, bond proceeds, investment earnings, etc.) that are restricted for housing and redevelopment. Debt Service Fund – This fund accounts for the payment of principal and interest on General Obligation, Permanent Improvement Revolving, and Public Project Revenue Bonds. Capital Projects Construction Fund – This fund accounts for the various special assessment and state aid projects throughout the City. This fund also provides financing for capital improvements as restricted in the City's capital improvement budget. The City reports the following major proprietary funds: Utilities Fund – This fund accounts for the provision of water, sewer, storm, and recycling services to the City's residents. Liquor Fund – This fund accounts for the operation of the City's three liquor stores. Aquatic Center Fund – This fund accounts for the operation of the City's aquatic center. Golf Course Fund – This fund accounts for the operation of the City's two golf courses and a golf dome. Arena Fund – This fund accounts for the operation of the City's ice arena. Additionally, the City reports the following fund types: Internal Service Funds – The risk management, equipment operations, information technology, and facilities management internal service funds account for costs of insurance and risk management programs, equipment operations, IT services, and facilities management across all municipal departments. Internal service funds operate in a manner similar to enterprise funds; however, it provides services primarily to other departments within the City. Custodial Funds – The Police Seizure, Public Safety Training Facility, and Minnesota Task Force 1 funds account for fees collected for other government agencies. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are transactions that would be treated as revenues, expenditures or expenses if they involved external organizations, such as buying goods and services or payments in lieu of taxes, are similarly treated when they involve other funds of the City of Edina. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Page 183 of 401 48 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary Funds – These funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's enterprise funds and internal service fund are charges to customers for sales and services. Operating expenses for the enterprise funds and internal service fund 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. Aggregated information for the internal service funds is reported in a single column in the proprietary fund financial statements. These services have been allocated proportionately to governmental and business-type activities in the government-wide financial statements. The cost of these services is reported in the appropriate functional activity. Depreciation expense is included in the direct expenses of each function. Interest on long-term debt is considered an indirect expense and is reported separately on the Statement of Activities. D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity 1. Deposits and Investments a. Cash and Investments The cash balances of the City and its component unit are pooled and invested for the purpose of increasing earnings through investment activities. The pool's investments are reported at fair value at year-end, except for investments in external investment pools, which are stated at amortized cost. The City has the ability and intent to hold its investments to maturity. The individual funds' portions of the pool's fair value are presented as "Cash and investments." Earnings from such investments are allocated to the respective funds on the basis of applicable cash balance participation by each fund. The City provides temporary advances to funds that have insufficient cash and investment balances by means of an advance from another fund shown as interfund receivables in the advancing fund, and an interfund payable in the fund with the deficit, until adequate resources are received. These interfund balances are eliminated on the government-wide financial statements. The City categorizes its fair value measurements within the fair value hierarchy established by accounting principles generally accepted in the United States of America. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. Debt securities classified in Level 2 of the fair value hierarchy are valued using evaluations based on various market and industry inputs. The City does not have Level 3 investments. See Note 2 for the City's recurring fair value measurements as of the current year-end. Page 184 of 401 49 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity (Continued) 1. Deposits and Investments (Continued) ## b. Restricted Cash and Investments Restricted cash and investments represent bond proceeds held for specific purposes. Earnings on these investments are allocated directly to these funds. ## c. Cash Equivalents For the purposes of the statement of cash flows, the City considers all highly liquid debt instruments with an original maturity from the time of purchase by the City of three months or less to be cash equivalents. The proprietary funds' portion in the government-wide cash and investment management pool is considered to be cash equivalent. 2. Receivables and Payables During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. Short-term interfund loans are classified as "due to/from other funds." All short-term interfund receivables and payables at December 31, 2025 are planned to be eliminated in 2026. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." Property taxes and special assessments receivables have been reported net of estimated uncollectible accounts. Because utility bills are considered liens on property, no estimated uncollectible amounts are established. Uncollectible amounts are not material for other receivables and have not been reported. ## 3. Property Taxes The City Council annually adopts a tax levy and certifies it to the County in December (levy/assessment date) of each year for collection in the following year. The County is responsible for billing and collecting all property taxes for itself, the City, the local School District, and other taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the County and remitted to the City on or before July 7 and December 2 of the same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. ## a. Government-Wide Financial Statements The City recognizes property tax revenue in the period for which the taxes were levied. Uncollectible property taxes are not material and have not been reported. Page 185 of 401 50 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity (Continued) 3. Property Taxes (Continued) ## b. Governmental Fund Financial Statements The City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes and state credits received by the City in July, December, and January are recognized as revenue for the current year. Taxes collected by the County by December 31 (remitted to the City the following January) and taxes and credits not received at the year-end are classified as delinquent and due from County taxes receivable. The portion of delinquent taxes not collected by the City in January are fully offset by deferred inflows of resources because they are not available to finance current expenditures. ## 4. Special Assessments Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment improvement projects in accordance with state statutes. These assessments are collectible by the City over a term of years usually consistent with the term of the related bond issue. Collection of annual installments (including interest) is handled by the County Auditor in the same manner as property taxes. Property owners are allowed to (and often do) prepay future installments without interest or prepayment penalties. Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by the City Council or court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale. Pursuant to state statutes, a property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural, or seasonal recreational land in which event the property is subject to such sale after five years. ## a. Government-Wide Financial Statements The City recognizes special assessment revenue in the period that the assessment roll was adopted by the City Council. Uncollectible special assessments are not material and have not been reported. Page 186 of 401 51 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity (Continued) 4. Special Assessments (Continued) ## b. Governmental Fund Financial Statements Revenue from special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as revenue for the current year. Special assessments that are collected by the County by December 31 (remitted to the City the following January) are also recognized as revenue for the current year. All remaining delinquent, deferred, and special deferred assessments receivable in governmental funds are completely offset by deferred inflows of resources. The following is a breakdown of special assessments receivable at December 31, 2025: ## Enterprise ## Funds Housing and ## Redevelopment ## Debt ## Authority ## Service ## Construction ## Utilities ## Special Assessments ## Receivable ## Current 2,175 $ - $ 17,156 $ 3,346 $ ## Deliquent 4,848 - 29,284 43,031 ## Deferred 4,659,597 1,510,457 17,592,454 561,937 ## Total 4,666,620 $ 1,510,457 $ 17,638,894 $ 608,314 $ ## Governmental Funds 5. Inventories Inventories of the proprietary funds are stated at cost and are recorded as expenses when consumed rather than when purchased. All inventories use the first-in/first-out (FIFO) method. ## 6. Prepaid Items 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 and are recorded as expenditures or expenses when consumed. ## 7. Capital Assets Capital assets, which include property, buildings, improvements, equipment, parks, infrastructure assets (roads, bridges, sidewalks, and similar items), and intangible assets such as easements, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are also reported in the proprietary fund financial statements but not in the governmental fund financial statements. Page 187 of 401 52 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity (Continued) 7. Capital Assets (Continued) Capital assets are defined by the government as assets with an initial, individual cost of more than $25,000 (amount not rounded) and an estimated useful life in excess of three years. Assets in the aggregate of over $50,000 will be recognized as a capital asset even if the per unit value is under $25,000. Easements with a value of $100,000 or more and a useful life of over one year will be recognized as a capital asset. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated acquisition value at the date of donation. 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. Infrastructure assets include all of the City's assets since inception. Property, plant, and equipment of the primary government are depreciated using the straight-line method over the following estimated useful lives: ## Classification ## Golf Course 10 - 35 ## Land Improvements 15 - 50 ## Building and Structures 15 - 40 ## Furniture and Office Equipment 5 - 10 ## Right-to-Use Assets 3 - 5 ## Vehicles and Equipment 3 - 20 ## Parks 5 - 100 ## Utility Infrastructure 20 - 50 ## Years Capital assets that are not depreciated include land, easements, and construction in progress. Right-to-use lease assets are initially measured at the present value of payments expected to be made during the lease term, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized in a systematic and rational manner over the shorter of the lease term or the useful life of the underlying asset. SBITA assets are initially measured as the sum of the present value of payments expected to be made during the subscription term, payments associated with the SBITA contract made to the SBITA vendor at the commencement of the subscription term, when applicable, and capitalizable implementation costs, less any SBITA vendor incentives received form the SBITA vendor at the commencement of the SBITA term. SBITA assets are amortized in a systematic and rational manner over the shorter of the subscription term or the useful life of the underlying IT assets. Page 188 of 401 53 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity (Continued) 8. Leases The City determines if an arrangement is a lease at inception. Leases are included in lease receivables and deferred inflows of resources in the statements of net position and fund financial statements. Lease receivables represent the City's claim to receive lease payments over the lease term, as specified in the contract, in an exchange or exchange-like transaction. Lease receivables are recognized at commencement date based on the present value of expected lease payments over the lease term, reduced by any provision for estimated uncollectible amounts. Interest revenue is recognized ratably over the contract term. Deferred inflows of resources related to leases are recognized at the commencement date based on the initial measurement of the lease receivable, plus any payments received from the lessee at or before the commencement of the lease term that relate to future periods, less any lease incentives paid to, or on behalf of, the lessee at or before the commencement of the lease term. The deferred inflows related to leases are recognized as lease revenue in a systematic and rational manner over the lease term. The City determines if an arrangement is a lease at inception. Leases are included in lease assets and lease liabilities in the statements of net position. ## 9. Compensated Absences It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All vacation pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. In accordance with the provisions of accounting principles generally accepted in the United States of America no liability is recorded for nonvesting accumulating rights to receive sick pay benefits. However, a liability is recognized in the government-wide and proprietary fund financial statements for that portion of accumulating sick leave benefits that is vested as severance pay or is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. According to City policy, vested sick leave benefits are liquidated into a health care savings plan upon separation. ## 10. State-Wide Pension Plans For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from the PERA's fiduciary net position have been determined on the same basis as they are reported by the PERA except that the PERA's fiscal year-end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Pension liabilities are liquidated by various governmental funds based on where the corresponding employees' salaries are allocated. Page 189 of 401 54 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity (Continued) ## 11. Long-Term Obligations In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bond 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 plus any premium received is reported as other financing sources. Discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. ## 12. 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 so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items which qualifies for reporting in this category. Deferred outflows of resources related to pensions and OPEB are reported in the government- wide and enterprise funds statement of net position. These deferred outflows result from differences between expected and actual experience, changes of assumptions, differences between projected and actual investment earnings, changes in proportion, and contributions to the plan subsequent to the measurement date and before the end of the reporting period. These amounts are deferred and amortized as required under pension and OPEB standards. In addition to liabilities, statements of financial position or balance sheets will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net assets that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time. The City has four items which qualify for reporting in this category. Unavailable revenue is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenue from three sources: property taxes, special assessments, and amounts due from other governments. These amounts are deferred and recognized as an inflow of resources in the period the amounts become available. Deferred inflows of resources related to leases are reported in the government-wide and fund financial statements. These deferred inflows represent future revenues related to long-term lease receivables. Deferred inflows of resources related to pensions and OPEB are reported in the government-wide and enterprise fund statement of net position. These deferred inflows result from differences between expected and actual experience, changes of assumptions, and the difference between projected and actual investment earnings, and are amortized as required under pension and OPEB standards. Page 190 of 401 55 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity (Continued) ## 13. Interfund Transactions Interfund services provided and used are accounted for as revenues, expenditures, or expenses. Transactions that constitute reimbursements to a fund for expenditures/ expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. Interfund loans are reported as an interfund loan receivable or payable which offsets the movement of cash between funds. All other interfund transactions are reported as transfers and are eliminated to the extent possible on the government-wide statements. ## 14. Fund Balance Classification In the fund financial statements, governmental funds report fund balance in classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: Nonspendable – Consists of amounts that are not in spendable form, such as prepaid items, inventory, and other long-term assets. Restricted – Consists of amounts related to externally imposed constraints established by creditors, grantors, or contributors; or constraints imposed by state statutory provisions. Committed – Consists of internally imposed constraints that are established by resolution of the City Council. Those committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action it employed to previously commit those amounts. Assigned – Consists of internally imposed constraints. These constraints consist of amounts intended to be used by the City for specific purposes but do not meet the criteria to be classified as restricted or committed. In the general fund, assigned amounts represent intended uses established by the City Council. In the fund balance policy, authority to assign amounts for specific purposes is limited to the City Council. Unassigned – The residual classification for the general fund which also reflects negative residual amounts in other funds. When both restricted and unrestricted resources are available for use, it is the City's policy to first use restricted resources, then use unrestricted resources as needed. When committed, assigned, or unassigned resources are available for use, it is the City's policy to use resources in the following order: 1) committed, 2) assigned, and 3) unassigned. Page 191 of 401 56 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity (Continued) ## 15. Net Position In the government-wide and proprietary fund financial statements, net position represents the difference between assets, deferred outflows of resources, liabilities, and deferred inflows of resources. Net position is displayed in three components: Net Investment in Capital Assets – Consists of capital assets, net of accumulated depreciation, reduced by the outstanding balance of any long-term debt used to build or acquire the capital assets. Restricted Net Position – Consists of net position restricted when there are limitations imposed on their use through external restrictions imposed by creditors, grantors, or laws or regulations of other governments. Unrestricted Net Position – All other net position that do not meet the definition of "restricted" or "net investment in capital assets." 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. 16. Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates that affect amounts reported in the financial statements during the reporting period. Actual results could differ from such estimates. ## NOTE 2 – DEPOSITS AND INVESTMENTS ## A. Deposits In accordance with applicable Minnesota Statutes, the City maintains deposits at depository banks authorized by the City Council, including checking accounts, savings accounts, and certificates of deposit. The following is considered the most significant risk associated with deposits: Custodial Credit Risk: In the case of deposits, this is the risk that in the event of a bank failure, the City's deposits may be lost. Minnesota Statutes require that all deposits be protected by federal deposit insurance, corporate surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by federal deposit insurance or corporate surety bonds. Authorized collateral includes treasury bills, notes, and bonds; issues of U.S. government agencies; general obligations rated "A" or better; revenue obligations rated "AA" or better; irrevocable standard letters of credit issued by the Federal Home Loan Bank; and certificates of deposit. Minnesota Statutes require that securities pledged as collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. The City's investment policy does not contain further restrictions on the types of collateral required. Page 192 of 401 57 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED) ## A. Deposits (Continued) At year-end, the carrying amount of the City's deposits was $220,783 while the balance on the bank records was $69,436. At December 31, 2025, all of the City's deposits were properly collateralized in accordance with state statutes. ## B. Investments Investments are subject to various risks, the following of which are considered the most significant: Custodial Credit Risk: This is the risk that in the event of a failure of the counterparty to an investment transaction (typically a broker-dealer) the City would not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City's investment policy specifically addresses custodial credit risk, requiring the City to limit its exposure by purchasing insured or registered investments, or by the control of who holds the securities. Credit Risk: This is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Minnesota Statutes limit the City's investments to direct obligations or obligations guaranteed by the United States or its agencies; shares of investment companies registered under the Federal Investment Company Act of 1940 that receive the highest credit rating, are rated in one of the two highest rating categories by a statistical rating agency, and all of the investments have a final maturity of thirteen months or less; general obligations rated "AA" or better; general obligations of the Minnesota Housing Finance Agency rated "A" or better; bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System; commercial paper issued by United States corporations or their Canadian subsidiaries, rated of the highest quality category by at least two nationally recognized rating agencies, and maturing in 270 days or less; Guaranteed Investment Contracts guaranteed by a United States commercial bank, domestic branch of a foreign bank, or a United States insurance company, and with a credit quality in one of the top two highest categories; repurchase or reverse repurchase agreements and securities lending agreements with financial institutions qualified as a "depository" by the government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, that are a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers. The City's investment policies specifically address credit risk, further limiting the City's exposure to credit risk by requiring that all state and local government obligations to be rated "AA" or better by a national rating agency. Concentration Risk: This is the risk associated with investing a significant portion of the City's investment (considered 5% or more) in the securities of a single issuer, excluding U.S. guaranteed investments (such as Treasuries), investment pools, and mutual funds. The City's investment policies specifically address the City's desire to limit concentration risk, but do not set specific guidelines for measurement of this risk. At year-end, there were no required disclosures for concentration risk. Page 193 of 401 58 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED) ## B. Investments (Continued) Interest Rate Risk: This is the risk of potential variability in the fair value of fixed rate investment resulting in changes in interest rates (the longer the period for which an interest rate is fixed, the greater the risk). The City's investment policies specifically address the City's desire to limit interest rate risk, but do not set specific guidelines for measurement of this risk. As of December 31, 2025, the City had the following investments and maturities: ## RatingFair Value Less than 1 year 1-2 years2-5 years5+ years Money MarketNR53,850,130$ 53,850,130$ -$ -$ -$ Certificates of DepositNR13,488,078 5,211,412 2,745,520 5,285,827 245,319 Municipal BondsA+55,977,650 15,346,521 6,262,453 23,743,444 10,625,232 ## AA+90,292,781 37,894,110 7,140,523 21,885,051 23,373,097 Total Investments213,608,639$ 112,302,173$ 16,148,496$ 50,914,322$ 34,243,648$ ## Type of Investments ## Investment Maturities ## Other Government Backed ## Securities As of December 31, 2025, the City had the following fair value measurements: ## Type of Investments ## Total Level 1 Level 2 Level 3 ## Certificates of Deposit 13,488,078 $ - $ 13,488,078 $ - $ ## Municipal Bonds 55,977,650 - 55,977,650 - ## Other Government Backed Securities 90,292,781 - 90,292,781 - Total investments 159,758,509 $ - $ 159,758,509 $ - $ Investments at amortized cost 53,850,130 $ Total investments 213,608,639 $ Page 194 of 401 59 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED) ## B. Investments (Continued) The following summary reconciles cash and investments to the financial statements: ## Deposits 69,436 $ Petty cash 30,360 ## Investments 213,608,639 Total cash and investments 213,708,435 $ ## Statement of Net Position Governmental activities 154,726,298 $ Bunisess-type activities 59,210,657 Fiduciary funds (228,520) Total cash and investments 213,708,435 $ Page 195 of 401 60 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 3 – CAPITAL ASSETS Capital asset activity for the year ended December 31, 2025, was as follows: ## BeginningEnding ## BalanceIncreasesDecreasesBalance Governmental activities Capital assets not being depreciated Land21,405,083$ 154,505$ -$ 21,559,588$ Easements253,000 - - 253,000 Construction in progress72,473,695 46,095,087 (19,300,574) 99,268,208 Total capital assets not being depreciated94,131,778 46,249,592 (19,300,574) 121,080,796 Other capital assets Land Improvements17,406,483 3,611,760 - 21,018,243 Buildings and structures57,743,999 1,514,695 - 59,258,694 Furniture and office equipment4,256,672 1,474,389 - 5,731,061 Vehicles and equipment30,589,090 2,288,527 (588,218) 32,289,399 Infrastructure171,290,045 12,299,249 - 183,589,294 Parks26,373,205 1,709,993 (36,353) 28,046,845 Vehicles and equipment14,205 - - 14,205 Subscription based information technology arrangement assets503,701 631,037 (503,701) 631,037 Total other assets at historical cost308,177,400 23,529,650 (1,128,272) 330,578,778 Less accumulated depreciation for Land Improvements(14,071,533) (1,060,571) - (15,132,104) Buildings and structures(27,945,737) (1,517,169) - (29,462,906) Furniture and office equipment(3,916,359) (116,839) - (4,033,198) Vehicles and equipment(16,331,918) (2,553,451) 542,732 (18,342,637) Infrastructure(92,655,723) (5,755,676) - (98,411,399) Parks(18,124,099) (898,838) 36,353 (18,986,584) Less accumulated amortization for Vehicles and equipment(8,817) (2,939) - (11,756) Subscription based information technology arrangement assets(402,774) (216,019) 519,939 (98,854) Total accumulated depreciation and amortization(173,456,960) (12,121,502) 1,099,024 (184,479,438) Total capital assets being depreciated or amortized, net134,720,440 11,408,148 (29,248) 146,099,340 Governmental activities capital assets, net228,852,218$ 57,657,740$ (19,329,822)$ 267,180,136$ Page 196 of 401 61 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 3 – CAPITAL ASSETS (CONTINUED) Capital asset activity for the year ended December 31, 2025, was as follows: ## BeginningEnding ## BalanceIncreasesDecreasesBalance Business-type activities Capital assets not being depreciated Land285,341$ -$ -$ 285,341$ Easements35,600 - - 35,600 Construction in progress43,187,759 4,406,937 - 47,594,696 Total capital assets not being depreciated43,508,700 4,406,937 - 47,915,637 Other capital assets Land improvements and golf course26,943,278 39,497 - 26,982,775 Buildings and structures48,681,534 - - 48,681,534 Furniture and office equipment228,679 - - 228,679 Vehicles and equipment17,056,716 879,076 (22,101) 17,913,691 Utility infrastructure174,705,075 7,598,531 - 182,303,606 Parks1,133,123 - - 1,133,123 Leased vehciles and equipment779,443 - - 779,443 Total other capital assets at historical cost269,527,848 8,517,104 (22,101) 278,022,851 Less accumulated depreciation for Land improvements and golf course(18,509,363) (722,021) - (19,231,384) Buildings and structures(35,783,053) (1,494,500) - (37,277,553) Furniture and office equipment(197,946) (23,512) - (221,458) Vehicles and equipment(11,676,678) (887,873) 22,101 (12,542,450) Utility infrastructure(89,198,582) (5,807,218) - (95,005,800) Parks(252,640) (56,656) - (309,296) Less accumulated amortization Leased vehicles and equipment(144,453) (189,707) - (334,160) Total accumulated depreciation and amortization(155,762,715) (9,181,487) 22,101 (164,922,101) Total other capital assets being depreciated or amortized, net113,765,133 (664,383) - 113,100,750 Business-type activities capital assets, net157,273,833$ 3,742,554$ -$ 161,016,387$ Page 197 of 401 62 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 3 – CAPITAL ASSETS (CONTINUED) Depreciation and amortization expense was charged to the various functions of the City as follows: Governmental activities General government 656,740 $ Public safety 1,547,247 Public works 8,589,297 ## Parks 1,328,218 Total depreciation and amortization expense - governmental activities 12,121,502 $ Business-type activities ## Utilities 6,432,344 $ ## Liquor 123,366 ## Aquatic Center 199,494 ## Golf Course 941,335 ## Arena 520,248 ## Art Center 3,780 ## Edinborough Park 266,986 ## Centennial Lakes 165,357 ## Sports Dome 528,577 Total depreciation and amortization expense - business-type activities 9,181,487 $ Page 198 of 401 63 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 3 – CAPITAL ASSETS (CONTINUED) ## Construction Commitments At December 31, 2025, the City had construction project contracts in progress. The commitments related to the remaining contract balances are summarized as follows: ## Project ## Number ## Project Description ## ENG25-8 ## Arden Park BMP Maintenance 82,658 $ 19,818 $ ## P&R2308 ## Braemar Park Improvements 324,902 192,778 ## P&R23207 ## Braemar Arena Facility Improvements 90,000 17,327 ## P&R23200 ## Fred Richards Park 728,878 74,931 ## PWK24100 ## Well 10 Replacement 2,212,030 1,915,176 ## ENG22015 ## France Avenue Sidewalk 62nd Street to 60th Street 631,865 6,299 ## FAC25124 ## Braemar Golf Course Restroom 246,800 22,040 ## PWK25104 ## Public Works Fleet - Bio Diesel 259,373 17,726 ## P&R23206 ## Braemar Arena Expansion and Upgrades 472,127 117,327 ## ENG25-11 ## Sanitary Sewer CIP 392,715 392,715 ## ENG25-9 ## York Avenue Sanitary Sewer Extension 2,660,015 43,135 ## P&R25119 ## Aquatic Center Filter Room 5,409,772 3,486,840 ## ENG25-1 ## Presidents A/B Roadway Reconstruction 10,070,059 2,481,182 ## Total 8,787,294 $ ## Contract ## Amount ## Remaining ## Commitment Commitments above that are significant to the applicable fund include the Aquatic Center Filter Room and the Presidents A/B Roadway Reconstruction in the Construction Fund and the Well 10 Replacement Project in the Utilities Fund. ## NOTE 4 – LEASES The City, acting as lessor, leases hockey center space and tower and park spaces for cellular towers under various long-term, non-cancelable lease agreements. The leases expire at various dates through 2049 and contain discount rates ranging from 2.30% to 3.80%. During the year ended December 31, 2025, the City recognized $256,029 and $56,475 in lease revenue and interest revenue, respectively, pursuant to these contracts. Page 199 of 401 64 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 5 – LONG-TERM DEBT ## A. General Obligation Bonds The City has six types of bonded debt outstanding at December 31, 2025: general obligation bonds, permanent improvement revolving bonds, housing improvement area bonds, tax increment financing bonds, public project revenue bonds, and G.O. revenue bonds. The first type is payable from general property taxes. The second type is payable primarily from special assessments with any deficiency to be provided for by general property taxes. The third type is payable from special assessments on properties that received common area housing improvements within the Edina West Condominium Association Housing Improvement Area. The fourth type is payable from future tax increment payments received. The fifth type is payable solely from annual appropriation lease payments received from the City of Edina pursuant to a lease between the Edina Housing and Redevelopment Authority and the City. The sixth type is payable primarily from enterprise revenue with any deficiency to be provided for by general property taxes. The reporting entity's long-term debt is segregated between the amounts to be repaid from governmental activities and amounts to be repaid from business-type activities. Page 200 of 401 65 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 5 – LONG-TERM DEBT (CONTINUED) ## B. Components of Long-Term Liabilities ## Issue ## Interest ## Original ## Final ## Balance ## Date ## Rates ## Issue ## Maturity ## End of Year ## Governmental Activities ## General Obligation Bonds ## General Obligation, 2016A - Refunding 7/6/2016 2.00-3.00% 3,635,000 $ 2/1/2028 1,100,000 $ ## General Obligation, 2017C - Refunding 12/14/2017 2.05-4.00% 8,955,000 2/1/2029 3,695,000 ## General Obligation Equipment Certificate, 2019A 6/13/2019 3.00-5.00% 2,805,000 2/1/2036 1,400,000 ## General Obligation, 2021B - Refunding 12/16/2021 5.00% 2,515,000 2/1/2030 1,980,000 ## General Obligation - Capital Improvement Plan 2024A 8/1/2024 4.00-5.00% 16,660,000 2/1/2054 16,660,000 ## General Obligation, 2024B - Refunding 12/12/2024 4.00-5.00% 16,630,000 2/1/2054 16,630,000 ## General Obligation, 2025A - CIP - Fire Station 2 8/28/2025 4.125-5.00% 10,340,000 2/1/2054 10,340,000 General Obligation, 2025B - CIP - HWY 100 9/2/2025 4.00-5.00% 2,105,000 2/1/2041 2,105,000 ## General Obligation, 2025A - Tax Abatement - Acquatic Center 9/2/2025 4.00-5.00% 6,680,000 2/1/2041 6,680,000 Total general obligation bonds 70,325,000 60,590,000 ## Permanent Improvement Revolving (PIR) Bonds ## Permanent Improvement Revolving, 2015A 7/9/2015 2.00-4.00% 6,545,000 2/1/2032 3,435,000 ## Permanent Improvement Revolving, 2015A - Parking 7/9/2015 2.00-4.00% 2,495,000 2/1/2036 1,560,000 ## Permanent Improvement Revolving, 2016A 7/6/2016 2.00-3.00% 3,940,000 2/1/2033 2,290,000 ## Permanent Improvement Revolving, 2017A 6/29/2017 3.00-4.00% 1,995,000 2/1/2034 1,320,000 ## Permanent Improvement Revolving, 2018A 6/27/2018 3.00-4.00% 2,210,000 2/1/2035 1,590,000 ## Permanent Improvement Revolving, 2019A 6/13/2019 3.00-4.00% 2,195,000 2/1/2036 1,745,000 ## Permanent Improvement Revolving, 2020A 6/25/2020 2.00-4.00% 390,000 2/1/2037 330,000 ## Permanent Improvement Revolving, 2020B 12/30/2020 1.09% 1,601,000 2/1/2029 714,000 ## Permanent Improvement Revolving, 2021A 6/24/2021 2.00-4.00% 5,480,000 2/1/2043 4,910,000 ## Permanent Improvement Revolving, 2021B 12/16/2021 5.00% 1,280,000 2/1/2030 860,000 ## Permanent Improvement Revolving, 2022A 7/14/2022 5.00% 2,145,000 2/1/2039 2,045,000 ## Permanent Improvement Revolving, 2023A 7/13/2023 4.00-5.00% 1,180,000 2/1/2040 1,180,000 ## Permanent Improvement Revolving, 2024A 8/1/2024 4.00-5.00% 2,800,000 2/1/2054 2,800,000 ## Permanent Improvement Revolving, 2024A 8/28/2025 4.125-5.00% 2,235,000 2/1/2054 2,235,000 ## Total PIR bonds 36,491,000 27,014,000 Page 201 of 401 66 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 5 – LONG-TERM DEBT (CONTINUED) ## B. Components of Long-Term Liabilities (Continued) Annual debt service requirements to maturity for the City's governmental activities debt are as follows: ## Year Ending December 31, ## Principal ## Interest ## Principal ## Interest ## Principal ## Interest 2026 1,930,000 $ 2,472,617 $ 2,058,000 $ 1,021,742 $ 1,535,000 $ 823,819 $ 2027 2,665,000 2,481,626 2,275,000 886,712 1,280,000 774,318 2028 3,345,000 2,367,520 2,451,000 802,897 1,330,000 725,288 2029 3,085,000 2,237,913 2,430,000 713,366 1,380,000 673,162 2030 1,850,000 2,127,669 2,410,000 622,006 1,435,000 618,363 2031-2035 8,150,000 9,445,019 9,830,000 1,903,597 8,045,000 2,187,516 2036-2040 10,370,000 7,190,594 4,915,000 531,825 3,885,000 869,875 2041-2045 9,190,000 5,018,484 645,000 21,769 1,825,000 73,700 2046-2050 10,215,000 3,104,188 - - - - 2051-2054 9,790,000 827,524 - - - - ## Total 60,590,000 $ 37,273,154 $ 27,014,000 $ 6,503,914 $ 20,715,000 $ 6,746,041 $ ## Governmental Activities ## Revolving Bonds ## General Obligation Bonds ## Public Project Revenue Bonds ## Permanent Improvement ## Year Ending December 31, ## Principal ## Interest ## Principal ## Interest ## Principal ## Interest 2026 280,000 $ 423,750 $ 535,000 $ 460,125 $ 70,000 $ 154,390 $ 2027 290,000 412,350 560,000 432,750 95,000 149,853 2028 300,000 400,550 590,000 404,000 100,000 144,490 2029 315,000 388,250 620,000 373,750 105,000 138,853 2030 325,000 375,450 650,000 342,000 110,000 132,940 2031-2035 1,820,000 1,696,250 3,770,000 1,175,750 660,000 562,980 2036-2040 5,070,000 1,079,175 2,745,000 210,375 840,000 377,018 2041-2045 3,740,000 206,250 - - 1,085,000 141,625 ## Total 12,140,000 $ 4,982,025 $ 9,470,000 $ 3,398,750 $ 3,065,000 $ 1,802,149 $ ## Governmental Activities ## Tax Increment Financing Bonds ## MSA Bonds ## HIA Bonds Page 202 of 401 67 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 5 – LONG-TERM DEBT (CONTINUED) ## B. Components of Long-Term Liabilities (Continued) ## Year Ending December 31, ## Principal ## Interest ## Principal ## Interest ## Principal ## Interest 2026 2,563 $ 27 $ - $ 15,000 $ 207,090 $ 11,034 $ 2027 - - - 15,000 212,331 5,793 2028 - - - 15,000 114,746 877 2029 - - - 15,000 - - 2030 - - - 15,000 - - 2031-2034 - - 750,000 60,000 - - ## Total 2,563 $ 27 $ 750,000 $ 135,000 $ 534,167 $ 17,704 $ ## Governmental Activities ## Subscriptions Liability ## Direct Borrowing - Loans Payable ## Lease Liability Annual debt service requirements to maturity for the City's business-type activities debt are as follows: ## Year Ending December 31, ## Principal ## Interest ## Principal ## Interest 2026 5,977,000 $ 2,309,388 $ 176,114 $ 5,155 $ 2027 6,940,000 2,085,369 156,863 2,839 2028 6,328,000 1,808,999 128,275 1,067 2029 5,811,000 1,548,779 3,273 20 2030 5,497,000 1,303,536 - - 2031-2035 20,650,000 3,388,844 - - 2036-2038 4,590,000 288,250 - - ## Total 55,793,000 $ 12,733,165 $ 464,525 $ 9,081 $ ## G.O. Improvement Bonds ## Lease Liability ## Business-Type Activies Page 203 of 401 68 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 5 – LONG-TERM DEBT (CONTINUED) ## C. Changes in Long-Term Liabilities Long-term liability activity for the year ended December 31, 2025, was as follows: ## Retirements ## Beginningand OtherEndingDue Within ## BalanceAdditionsReductionsBalanceOne Year Governmental activities Bonds payable General Obligation60,315,000$ 19,125,000$ (18,850,000)$ 60,590,000$ 1,930,000$ Permanent improvement revolving26,719,000 2,235,000 (1,940,000) 27,014,000 2,058,000 Public project revenue21,850,000 - (1,135,000) 20,715,000 1,535,000 Tax increment financing12,410,000 - (270,000) 12,140,000 280,000 Minnesota state aid streets9,980,000 - (510,000) 9,470,000 535,000 Housing improvement area3,065,000 - - 3,065,000 70,000 Less deferred amounts Premiums on bonds7,063,321 977,298 (804,778) 7,235,841 - Total bonds payable141,402,321 22,337,298 (23,509,778) 140,229,841 6,408,000 Loans payable750,000 - - 750,000 - Leases liability5,569 - (3,006) 2,563 2,563 Subscription liability124,297 631,180 (221,310) 534,167 207,090 Compensated absences7,106,241 307,421 - 7,413,662 2,965,465 Total governmental activities Long-term liabilities 149,388,428$ 23,275,899$ (23,734,094)$ 148,930,233$ 9,583,118$ Business-type activities Bonds payable General Obligation Revenue Bonds52,027,000$ 9,770,000$ (6,004,000)$ 55,793,000$ 5,977,000$ Less deferred amounts Premiums on bonds4,124,760 1,083,378 (800,405) 4,407,733 - Total bonds payable56,151,760 10,853,378 (6,804,405) 60,200,733 5,977,000 Leases liability638,290 - (173,765) 464,525 176,114 Compensated absences 1,123,598 103,173 - 1,226,771 490,708 Total business-type activities long-term liabilities57,913,648$ 10,956,551$ (6,978,170)$ 61,892,029$ 6,643,822$ The change in the compensated absences liability is presented as a net change. On August 28, 2025, the City issued $2,235,000 of Permanent Improvement Revolving Bonds, $3,215,000 of Utility Revenue Bonds for Water, $3,600,000 of Utility Revenue Bonds for Sewer, $2,955,000 of Utility Revenue for Storm, and $10,340,000 of Capital Improvement Bonds, Series 2025A. On September 2, 2025, the City issued $6,680,000 of Tax Abatement Bonds and $2,105,000 of Capital Improvement Bonds, Series 2025B. The proceeds from these bonds are being used to finance road reconstruction projects, a new pump house facility supporting the City's Aquatic Center and other facility improvement needs, a Community Health and Safety Center facility, and various utility system infrastructure improvements. The bonds have coupon rates ranging from 4.00% to 5.00%, with final maturity dates from February 1, 2042, to February 1, 2054. The City leases various laundry and golf equipment for various terms under long-term, noncancelable lease agreements. The leases expire at various dates through 2029. Page 204 of 401 69 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 5 – LONG-TERM DEBT (CONTINUED) ## C. Changes in Long-Term Liabilities (Continued) The City has entered into subscription-based-information technology arrangements (SBITAs) for various IT related applications. The SBITA arrangements expire at various dates through 2028. ## Revenue Pledged Future Revenue pledged for the payment of long-term debt is as follows: ## Bonds Issue ## Use of Proceeds ## Type ## 2015B Recreational Facility Bonds ## Golf Course Improvements ## Golf 100 % 2016-2031 1,063,034 $ 176,919 $ 6,328,908 $ ## 2017B Recreational Facility Bonds ## Golf Course Improvements ## Golf 100 2018-2033 4,511,950 566,100 6,328,908 ## 2017B Recreational Facility Bonds ## Pool Improvements ## Pool 100 2018-2027 202,900 99,600 1,143,074 ## 2017D Recreational Facility Bonds ## Arena Improvements ## Arena 100 2018-2030 696,610 154,350 2,813,362 ## 2021C Recreational Facility Bonds ## Arena Improvements ## Arena 100 2023-2033 1,377,925 174,750 2,813,362 ## 2021C Recreational Facility Bonds ## Golf Dome Improvements ## Golf 100 2023-2033 350,100 86,025 6,328,908 ## 2015A Utility Revenue Bonds ## Utility Infastructure ## Utility 100 2016-2025 - 598,850 35,061,152 ## 2016A Utility Revenue Bonds ## Utility Infastructure ## Utility 100 2017-2027 1,992,606 995,613 35,061,152 ## 2017A Utility Revenue Bonds ## Utility Infastructure ## Utility 100 2018-2028 2,361,750 783,800 35,061,152 ## 2018A Utility Revenue Bonds ## Utility Infastructure ## Utility 100 2019-2029 1,556,675 387,450 35,061,152 ## 2019A Utility Revenue Bonds ## Utility Infastructure ## Utility 100 2020-2036 3,683,250 742,125 35,061,152 ## 2020A Utility Revenue Bonds ## Utility Infastructure ## Utility 100 2021-2031 3,352,950 556,000 35,061,152 ## 2022A Utility Revenue Bonds ## Utility Infastructure ## Utility 100 2023-2038 16,647,250 1,334,000 35,061,152 ## 2023A Utility Revenue Bonds ## Utility Infastructure ## Utility 100 2024-2034 10,293,050 1,145,300 35,061,152 ## 2024A Utility Revenue Bonds ## Utility Infastructure ## Utility 100 2025-2035 7,527,500 295,000 35,061,152 ## 2025A Utility Revenue Bonds ## Utility Infastructure ## Utility 100 2026-2036 12,908,613 - 35,061,152 ## Pledged ## Revenue ## Received ## Revenue Pledged ## Current Year Terms of ## Pledge ## Remaining Principal and ## Interest Principal and ## Interest Paid Percent of ## Total Debt ## Service Page 205 of 401 70 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 6 – LEGAL DEBT MARGIN The city is subject to a statutory limitation by the state of Minnesota for bonded indebtedness payable principally from property taxes. The City of Edina's legal debt margin for 2025 is computed as follows: December 31, 2025 Market Value (after fiscal disparities) 17,218,964,600 $ Debt limit (3% of market value) 516,568,938 $ Amount of debt applicable to debt limit Total bonded debt 188,787,000 $ ## Less: Public improvement revolving bonds (27,014,000) Tax increment financing bonds (12,140,000) MSA bonds (9,470,000) Revenue bonds (55,793,000) Total debt applicable to debt limit 84,370,000 Legal debt margin 432,198,938 $ ## NOTE 7 – CONDUIT DEBT OBLIGATIONS As of December 31, 2025, The City of Edina had four series of Housing and Health Care Revenue Bonds, with an aggregate principal amount payable of $24,565,000. The bonds are payable solely from the revenues of the respective organizations and do not constitute an indebtedness of the City and are not a charge against its general credit or taxing power. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. ## NOTE 8 – PENSION PLANS The City participates in various pension plans. Total pension expense for the year ended December 31, 2025 was $2,481,814. The components of pension expense are noted in the following plan summaries. The General Fund and Utility Funds typically liquidate the liability related to the pensions. ## Public Employees' Retirement Association ## A. Plan Description The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by PERA. PERA's defined benefit pension plans are established and administered in accordance with Minnesota Statutes Chapters 353, 353D, 353E, 353G, and 356. Minnesota Statutes Chapter 356 defines each plan's financial reporting requirements. PERA's defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code. Page 206 of 401 71 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 8 – PENSION PLANS (CONTINUED) ## Public Employees' Retirement Association (Continued) ## A. Plan Description (Continued) ## General Employees Retirement Plan Membership in the General Plan includes employees of counties, cities, townships, schools in non- certified positions, and other governmental entities whose revenues are derived from taxation, fees, or assessments. Plan membership is required for any employee who is expected to earn more than $425 in a month, unless the employee meets exclusion criteria. ## Public Employees Police and Fire Plan Membership in the Police and Fire Plan includes full-time, licensed police officers and firefighters who meet the membership criteria defined in Minnesota Statutes § 353.64 and who are not earning service credit in any other PERA retirement plan or a local relief association for the same service. Employers can provide Police and Fire Plan coverage for part-time positions and certain other public safety positions by submitting a resolution adopted by the City's governing body. The resolution must state that the position meets plan requirements. ## B. 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. When a member is vested, they have earned enough service credit to receive a lifetime monthly benefit after leaving public service and reaching an eligible retirement age. Members who retire at or over their Social Security full retirement age with at least one year of service qualify for a retirement benefit. ## General Employees Plan Benefits General Employees Plan requires three years of service to vest. Benefits are based on a member's highest average salary for any 5 successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for General Plan members. Members hired prior to July 1, 1989, receive the higher of Step or Level formulas. Only the Level formula is used for members hired after June 30, 1989. Under the Step formula, General Plan members receive 1.2% of the highest average salary for each of the first 10 years of service and 1.7% for each additional year. Under the Level formula, General Plan members receive 1.7% of the highest average salary for all years of service. For members hired prior to July 1, 1989, a full retirement benefit is available when age plus years of service equal 90 and normal retirement age is 65. Members can receive a reduced requirement benefit as early as age 55 if they have three or more years of service. Early retirement benefits are reduced by .25% for each month under age 65. Members with 30 or more years of service can retire at any age with a reduction of .25% for each month the member is younger than age 62. The Level formula allows General Plan members to receive a full retirement benefit at age 65 if they were first hired before July 1, 1989 or at age 66 if they were hired on or after July 1, 1989. Early retirement begins at age 55 with an actuarial reduction applied to the benefit. Page 207 of 401 72 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 8 – PENSION PLANS (CONTINUED) ## Public Employees' Retirement Association (Continued) ## B. Benefits Provided (Continued) ## General Employees Plan Benefits (Continued) Benefit increases are provided to benefit recipients each January. The postretirement increase is equal to 50% of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1% and a maximum of 1.5%. The 2025 annual increase was 1.25%. 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. ## Police and Fire Plan Benefits Benefits for the Police and Fire Plan members hired before July 1, 2010, are vested after three years of service. Members hired on or after July 1, 2010, are 50% vested after five years of service and 100% vested after 10 years. After five years, vesting increase by 10% each full year of service until members are 100% vested after 10 years. Police and Fire Plan members receive 3% of highest average salary for all years of service. Police and Fire Plan members receive a full retirement benefit when they are 55 and vested, or when their age plus their years of service equals 90 or greater if they were first hired before July 1, 1989. Early retirement starts at age 50, and early retirement benefits are reduced by 0.417% each month members are younger than age 55. Benefit increases are provided to benefit recipients each January. The post-retirement increase is fixed at 1%. 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. ## C. Contributions Minnesota Statutes Chapter 353, 353E, 353G, and 356 set the rates for employer and employee contributions. Contribution rates can only be modified by the state Legislature. ## General Employees Fund Contributions General Plan members were required to contribute 6.5% of their annual covered salary in fiscal year 2025, and the City was required to contribute 7.5% for General Plan members. The City's contributions to the General Employees Fund for the year ended December 31, 2025, were $2,011,368. 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 11.8% of their annual covered salary in fiscal year 2025, and the City was required to contribute 17.7% for Police and Fire Plan members. The City's contributions to the Police and Fire Fund for the year ended December 31, 2025, were $2,461,147. The City's contributions were equal to the required contributions as set by state statute. Page 208 of 401 73 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 8 – PENSION PLANS (CONTINUED) ## Public Employees' Retirement Association (Continued) ## D. Pension Costs ## General Employees Fund Pension Costs At December 31, 2025, the City reported a liability of $9,848,457 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 $237,503. City's proportionate share of the net pension liability 9,848,457 $ State of Minnesota's proportionate share of the net pension liability associated with the City 237,503 ## Total 10,085,960 $ The net pension liability was measured as of June 30, 2025, 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, 2024, through June 30, 2025, relative to the total employer contributions received from all of PERA's participating employers. The City's proportionate share was 0.2940% at the end of the measurement period and 0.2971% for the beginning of the period. For the year ended December 31, 2025, the City recognized pension expense of $(253,447) for its proportionate share of General Employees Plan's pension expense. Included in the amount, the City recognized $(36,430) 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. Page 209 of 401 74 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 8 – PENSION PLANS (CONTINUED) ## Public Employees' Retirement Association (Continued) ## D. Pension Costs (Continued) ## General Employees Fund Pension Costs (Continued) At December 31, 2025, 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: Differences between expected and actual economic experience 943,567 $ - $ Changes in actuarial assumptions 237,216 2,327,485 Net difference between projected and actual investment earnings - 3,977,775 Changes in proportion 331,672 344,264 Contributions paid to PERA subsequent to the measurement date 1,005,684 - ## Total 2,518,139 $ 6,649,524 $ ## Deferred Outflows of ## Resources ## Deferred Inflows of ## Resources Page 210 of 401 75 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 8 – PENSION PLANS (CONTINUED) ## Public Employees' Retirement Association (Continued) ## D. Pension Costs (Continued) ## General Employees Fund Pension Costs (Continued) The $1,005,684 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2026. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: ## Pension ## Year Ending ## Expense December 31, ## Amount 2026 (1,050,138) $ 2027 (2,038,944) 2028 (1,348,159) 2029 (699,828) ## Total (5,137,069) $ ## Police and Fire Fund Pension Costs At December 31, 2025, the City reported a liability of $10,188,251 for its proportionate share of the Police and Fire Fund's net pension liability. The net pension liability was measured as of June 30, 2025, 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, 2024, through June 30, 2025, relative to the total employer contributions received from all of PERA's participating employers. The City's proportionate share was 0.8696% at the end of the measurement period and 0.8868% for the beginning of the period. Page 211 of 401 76 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 8 – PENSION PLANS (CONTINUED) ## Public Employees' Retirement Association (Continued) ## D. Pension Costs (Continued) ## Police and Fire Fund Pension Costs (Continued) The State of Minnesota contributed $18 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2025. The contribution consisted of $9 million in direct state aid that meets 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 aid was paid on October 1, 2024. The direct state aid payment will increase by $17.7 million, which was paid on October 1, 2025. Thereafter, by October 1 of each year, the State will pay $26.7 million to the Police and Fire Fund until the fund is 110% funded for a minimum of three consecutive years (on an actuarial value of assets basis). The $9 million in supplemental state aid will continue until the fund and the State Patrol Plan (administered by the Minnesota State Retirement System) are 100% funded for three consecutive years (on an actuarial value of assets basis). The State of Minnesota's proportionate share of the net pension liability associated with the City totaled $353,175. City's proportionate share of the net pension liability 10,188,251 $ State of Minnesota's proportionate share of the net pension liability associated with the City 353,175 ## Total 10,541,426 $ For the year ended December 31, 2025, the City recognized pension expense of $2,731,548 for its proportionate share of the Police and Fire Plan's pension expense. Included in this amount, the City recognized $170,884 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's 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 because this contribution was not considered to meet the definition of a special funding situation. The City recognized $232,171 for the year ended December 31, 2025, as revenue and an offsetting reduction of the net pension liability for its proportionate share of the State of Minnesota's on-behalf contributions to the Police and Fire Fund. Page 212 of 401 77 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 8 – PENSION PLANS (CONTINUED) ## Public Employees' Retirement Association (Continued) ## D. Pension Costs (Continued) ## Police and Fire Fund Pension Costs (Continued) At December 31, 2025, 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 4,749,510 $ - $ Changes in actuarial assumptions 7,765,539 12,919,761 Net difference between projected and actual investment earnings - 4,598,308 Changes in proportion 190,216 193,059 Contributions paid to PERA subsequent to the measurement date 1,230,574 - ## Total 13,935,839 $ 17,711,128 $ ## Deferred Outflows of ## Resources ## Deferred Inflows of ## Resources Page 213 of 401 78 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 8 – PENSION PLANS (CONTINUED) ## Public Employees' Retirement Association (Continued) ## D. Pension Costs (Continued) ## Police and Fire Fund Pension Costs (Continued) The $1,230,574 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2026. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: ## Pension ## Year Ending ## Expense December 31, ## Amount 2026 2,378,095 $ 2027 (2,285,598) 2028 (5,034,388) 2029 (292,823) 2030 228,851 ## Total (5,005,863) $ ## E. 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 building-block method in which best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: ## Asset Class Domestic equity33.5%5.10% International equity16.55.30 Fixed income25.00.75 Private markets25.05.90 ## Total100.0% ## Target Allocation ## Long-Term ## Expected Real ## Rate of Return Page 214 of 401 79 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 8 – PENSION PLANS (CONTINUED) ## Public Employees' Retirement Association (Continued) ## F. Actuarial Methods and Assumptions The total pension liability for each of the cost-sharing defined benefit plans was determined by an actuarial valuation as of June 30, 2025, using the entry-age normal actuarial cost method. The long- term rate of return on pension plan investments used to determine the total liability is 7.0%. The 7.0% 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 investment return rates considered reasonable by the actuary. An investment return of 7.0% is within that range. Inflation is assumed to be 2.25% for the General Employees Plan and 2.25% for the Police and Fire Plan. Benefit increases after retirement are assumed to be 1.5% for the General Employees Plan and 1% for the Police and Fire Plan. Salary growth assumptions in the General Employees Plan range in annual increments from 11.5% after one year of service to 3.0% after 27 years of service. In the Police and Fire Plan, salary growth assumptions range in annual increments from 10.75% after one year of service to 3.0% after 23 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 General Employees Plan was last reviewed in 2022. The assumption changes were adopted by the Board and became effective with the July 1, 2023, actuarial valuation. The Police and Fire Plan was reviewed in 2024. The assumption changes were adopted by the board and became effective with the July 1, 2025, actuarial valuation. The following changes in actuarial assumptions and plan provisions occurred in 2025: ## General Employees Fund ## Changes in Actuarial Assumptions • The combined service annuity loading factors increased from 15% to 19% for vested terminated members and from 3% to 44% for non-vested, terminated members. The assumed post-retirement benefit increase changed from 1.25% to 1.5%. ## Changes in Plan Provisions • The post-retirement benefit increase formula changed to 100% of the Social Security annual increase, between 1% and 1.75%, beginning January 1, 2026. If the funded ratio (on a market value of assets basis) is less than 85% for the last two consecutive annual valuations or is less than 80% in the most recent actuarial valuation, the maximum is reduced to 1.5%. Previously, the benefit increase was 50% of the Social Security annual increase, between 1% and 1.5%. • The 1% additional employer contribution is eliminated when the plan reaches 98% funded status (on an actuarial value of assets basis); this contribution was previously scheduled to stop when the plan reached 100% funded status. Page 215 of 401 80 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 8 – PENSION PLANS (CONTINUED) ## Public Employees' Retirement Association (Continued) ## F. Actuarial Methods and Assumptions (Continued) ## Police and Fire Fund ## Changes in Actuarial Assumptions • Assumed rates of salary increases were reduced slightly. • Assumed rates of retirement were adjusted, resulting in an overall increase in unreduced (full) retirements and an overall increase in reduced (early) retirements. • Assumed rates of withdrawal were modified; the new rates will increase predicted terminations, especially in the first few years of employment. • Assumed rates of disabled retirement were significantly increased, especially for ages over age 30. • Continued used of Pub-2010 Public Safety Mortality Table with rates adjusted to better fit observed experience. • Percent married assumption for female retirees lowered from 70% to 65%. • Minor changes were made to form of payment assumptions for retirees. • Minor changes were made to assumptions made with respect to missing participant data. • The combined service annuity load changed from 33% to 13% for vested, terminated members and from 2% to 38% for non-vested, terminated members. ## Changes in Plan Provisions • The period of time needed for benefit recipients to receive their first benefit increase was reduced by one year (from 36 months to 24 months for a full increase). • The January 1, 2026, benefit increase changed from 1% to 3%; subsequent January 1 increases will be 1%. • The threshold to end the $9 million annual state aid contribution changed from the earlier of July 1, 2048, or 90% funded for both PERA Police and Fire and MSRS State Patrol for three consecutive years to 100% funded for both PERA Police and Fire and MSRS State Patrol for three consecutive years (on an actuarial value of assets basis). • The threshold to end the additional $9 million annual state aid contribution changed from the earlier of July 1, 2048 or 100% funded for a minimum of three consecutive years to 110% funded for a minimum of three consecutive years (on an actuarial value of assets basis). • An additional $17.7 million in direct state aid will be paid annually each October 1 beginning October 1, 2025, through June 30, 2048. • Joint and survivor actuarial equivalent factors were updated to reflect changes in assumptions. ## G. Discount Rate The discount rate used to measure the total pension liability in 2025 was 7.0%. The projection of cash flows used to determine the discount rate assumed that contributions from Plan members and employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net positions of the General Employees and Police and Fire Plans were projected to be available to make all projected future benefit payments of current Plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Page 216 of 401 81 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 8 – PENSION PLANS (CONTINUED) ## Public Employees' Retirement Association (Continued) ## H. Pension Liability Sensitivity The following presents the City's proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate: 1% Decrease in ## Current 1% Increase in ## Discount ## Discount ## Discount Rate (6.0%) Rate (7.0%) Rate (8.0%) City's proportionate share of ## the General Employees Fund net pension liability 23,913,067 $ 9,848,457 $ (1,566,543) $ 1% Decrease in ## Current 1% Increase in ## Discount ## Discount ## Discount Rate (6.0%) Rate (7.0%) Rate (8.0%) City's proportionate share of ## the Police and Fire Fund net pension liability 26,695,379 $ 10,188,251 $ (3,366,705) $ ## I. 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 (Defined Contribution Plan) Board members of the City are covered by the DCP, a multiemployer deferred compensation plan administered by PERA. The DCP is a tax qualified plan under Section 401(a) of the IRC and all contributions by or on behalf of employees are tax deferred until time of withdrawal. Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expense. Minnesota Statues, Chapter 353D.03, specifies plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes 5.0% of salary which is matched by the elected official's employer. For ambulance service personnel, employer contributions are determined by the employer, and for salaried employees must be a fixed percentage of salary. Page 217 of 401 82 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 8 – PENSION PLANS (CONTINUED) ## Public Employees Defined Contribution Plan (Defined Contribution Plan) The defined contribution plan consists of individual accounts paying a lump-sum benefit. 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 and 356, specifies plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes 5% of salary which is matched by the elected official's employer. For ambulance service personnel, employer contributions are determined by the employer, and for salaried employees must be a fixed percent of salary. Employer contributions for volunteer personnel may be a unit value for each call or period of alert duty. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2% of employer contributions and twenty-five hundredths of 1% (.25%) 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 2025 were: ## Contribution Amount ## Percentage of Covered Payroll ## Employee ## Employer ## Employee ## Employer ## Required Rate 3,712 $ 3,712 $ 5% 5% 5% ## NOTE 9 – MULTIEMPLOYER DEFINED BENEFIT PENSION PLAN City employees belonging to International Union of Operating Engineers (IUOE) are participants in a multiemployer defined benefit pension plan Central Pension Fund of the International Union of Operating Engineers and Participating Employers (CRF) administered by the board of trustees of the Central Pension Fund. The plan is a cost-sharing pension plan that is not a state or local governmental pension plan, is used to provide defined benefit pensions both to employers that are not state or local governmental employers, and has no predominant state or local government employer. The plan issues a publicly available financial report located on their website at www.cpfiuoe.org. The City has 60 employees who are covered by the pension plan. The plan provides benefits such as monthly retirement income, special and early retirement benefits, postretirement surviving spouse benefits, and disability benefits. The CPF is a supplemental Pension Fund authorized by Minnesota Statutes § 356.24, subdivision 1(9). The CPF Plan of Benefits and the Agreement and Declaration of Trust will serve as the governing documents. Page 218 of 401 83 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 9 – MULTIEMPLOYER DEFINED BENEFIT PENSION PLAN (CONTINUED) The City's contributions to the plan are pursuant to a collective bargaining agreement with the IUOE which will expire December 31, 2026. The required contribution rate is $1.25 per hour, which is applied to all compensated hours, and capped at $5,000 per year. Total employer contributions for the year ended December 31, 2025, were $139,333. With regard to withdrawal from the pension plan, the parties agree that the amount that would otherwise be paid in salary or wages will be contributed instead to the CPF as pretax employer contributions. ## NOTE 10 – POST EMPLOYMENT HEALTH CARE PLAN ## A. Plan Description The City provides postemployment insurance benefits to certain eligible employees through its OPEB Plan, a single-employer defined benefit plan administered by the City. All post-employment benefits are based on contractual agreements with employee groups. Eligibility for these benefits is based on years of service and/or minimum age requirements. These contractual agreements do not include any specific contribution or funding requirements. The plan does not issue a publicly available financial report. No plan assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. ## B. Benefits Provided All retirees of the City upon retirement have the option under state law to continue their medical insurance coverage through the City 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. For police officers and firefighters disabled in the line-of-duty, Minnesota Statues require the City to continue payment of the employer's contribution toward health coverage for the police officer or firefighter and their spouse, if the spouse was covered at the time of disability, until age 65. ## C. Contributions The required contribution is based on projected pay-as-you-go financing requirements, with additional amounts to prefund benefits as determined periodically by the City. The City's current year required pay-as-you-go contributions to finance the benefits described in the previous section totaled $189,374. Total OPEB liability will be paid by the general fund and enterprise funds. Page 219 of 401 84 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 10 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED) ## D. Members Membership in the plan consisted of the following as of the latest actuarial valuation: Total employees without coverage 33 Employees with coverage 310 ## Total 343 ## E. Actuarial Assumptions The total OPEB liability was determined by an actuarial valuation measured as of December 31, 2024, using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: ## Discount Rate 4.08% Salary increases including inflation Based on the PERA Plan in which the employee is a participant. Healthcare cost trend increases 7.45% for FY2024, gradually decreasing over ten years to an ultimate rate of 4.0% in FY2043 and later years. Mortality assumption PERA Coordinated: Rates from the most recent PERA experience study from July 1, 2018 through June 30, 2022. PERA Police and Fire: Rates from the most recent PERA experience study from July 1, 2019 through June 30, 2023. Key Methods and Assumptions Used in Valuation of Total OPEB Liability The actuarial assumptions used in the latest valuation were based on those used to value pension liabilities for Minnesota city employees. The state pension plans base their assumptions on periodic experience studies. Economic assumptions are based on input from a variety of published sources of historical and projected future financial data. Each assumption was reviewed for reasonableness with the source information as well as for consistency with the other economic assumptions. Since the plan is not funded by an irrevocable trust, the discount rate is equal to the 20-year municipal bond yield rate of 4.08%, which was set by considering published rate information for 20- year high quality, tax exempt, general obligation municipal bonds as of the measurement date. The City discount rate used in the prior measurement date was 3.77%. Mortality rates were based on the RP-2014 mortality tables adjusted for white collar and mortality improvements using projection scale MP-2018, from a base year of 2014 for GERF members and MP- 2018, from a base year of 2006 for PEPFF members. Page 220 of 401 85 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 10 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED) ## E. Actuarial Assumptions (Continued) Future retirees electing coverage is assumed to 40%. Married future retirees electing spouse coverage is assumed to range from 40% to 60% based on classification of employee. ## F. Total OPEB Liability The City's total OPEB liability was determined by an actuarial valuation as of December 31, 2024. Changes in the total OPEB liability are as follows: ## Total ## OPEB ## Liability Balances at January 1, 20254,569,654$ Changes for the year Service cost560,769 Interest 189,849 Differences between expected and actual economic experience20,345 Changes of assumptions(135,238) Benefit payments(189,374) Net changes446,351 Balances at December 31, 20255,016,005$ Assumption changes since the prior measurement date include the following: • The discount rate was changed from 3.77% to 4.08% ## G. OPEB Liability Sensitivity The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current discount rate: 1% Decrease inCurrent1% Increase in ## Discount RateDiscount RateDiscount Rate (3.08%)(4.08%)(5.08%) 5,465,648$ 5,016,005$ 4,604,512$ ## Total OPEB Liability/(Asset) Page 221 of 401 86 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 10 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED) ## G. OPEB Liability Sensitivity (Continued) 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% lower and 1% higher than the current healthcare cost trend rates. 1% Decrease in ## Current 1% Increase in ## Trend Rate ## Trend Rate ## Trend Rate (6.5% Decreasing to 3.0%) (7.5% Decreasing to 4.0%) (8.5% Decreasing to 5.0%) 4,343,385 $ 5,016,005 $ 5,820,615 $ ## Total OPEB Liability/(Asset) H. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources ## Related to OPEB For the year ended December 31, 2025, the City recognized OPEB expense of $690,191. At December 31, 2025, the City reported deferred outflows of resources and deferred inflows of resources as shown below. ## Deferred ## Deferred Outflows of Inflows of ## Resources ## Resources Differences between expected and actual economic experience 1,378,845 $ 759,957 $ Changes in actuarial assumptions 527,360 983,016 Contributions made subsequent to the measurement date 120,423 - ## Total 2,026,628 $ 1,742,973 $ Page 222 of 401 87 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 10 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED) H. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued) A total of $120,423 reported as deferred outflows of resources related to OPEB resulting from city contributions subsequent to the measurement date will be recognized as a reduction of the total OPEB liability in the year ending December 31, 2026. Other amounts reported as deferred outflows and inflows of resources related to the plan will be recognized in pension expense as follows: ## OPEB ## Expense (60,425)$ (64,896) (60,432) (37,402) 119,357 267,030 ## Total163,232$ 2027 ## Year Ending December 31, 2028 2029 2030 ## Thereafter 2026 Page 223 of 401 88 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 11 – FUND BALANCES ## A. Classifications At December 31, 2025, a summary of the City's governmental fund balance classifications are as follows: ## General ## HRA ## Debt Service ## Construction ## Nonmajor ## Fund ## Fund ## Fund ## Fund ## Funds ## Total Fund balances ## Nonspendable 168,043 $ - $ - $ - $ 10,832 $ 178,875 $ ## Restricted ## Park Dedication 48,430 - - - - 48,430 ## Tax Increments - 31,490,226 - - - 31,490,226 ## Affordable Housing - 4,090,132 - - - 4,090,132 ## Debt Service - - 7,640,287 - - 7,640,287 ## Capital Projects - - - 59,846,146 - 59,846,146 ## Pedestrian and Cyclist ## Improvements - - - - - - ## Forfeitures - - - - 1,120,734 1,120,734 ## Donations - - - - 133,030 133,030 Conservation and ## Sustainability ## Initiatives - - - - 1,176,152 1,176,152 ## Public Safety - - - - 1,838,751 1,838,751 ## Opioid Epidemic Response - - - - 272,642 272,642 Total restricted 48,430 35,580,358 7,640,287 59,846,146 4,541,309 107,656,530 ## Assigned ## Compensated Absences 3,102,051 - - - - 3,102,051 ## Budget Stabilization 1,327,722 - - - - 1,327,722 ## Art and Culture 65,147 - - - - 65,147 ## Special Projects - - - 6,824,397 - 6,824,397 ## Equipment - - - 4,012,650 - 4,012,650 Total assigned 4,494,920 - - 10,837,047 - 15,331,967 ## Unassigned 31,253,577 - - - (401,623) 30,851,954 Total fund balances 35,964,970 $ 35,580,358 $ 7,640,287 $ 70,683,193 $ 4,150,518 $ 154,019,326 $ ## Major Funds Page 224 of 401 89 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 11 – FUND BALANCES (CONTINUED) ## B. Unassigned Fund Balance The City Council has formally adopted a fund balance policy regarding the desired range for unassigned fund balance for the general fund. The policy establishes a goal for unassigned general fund balance of 42% - 47% of the subsequent year's budgeted property tax revenue. As of December 31, 2025, the City has $31,253,577 of unassigned fund balance in the general fund, or 58.95% of 2026 budgeted property tax revenue. This amount is $6,337,487 above the top of the goal identified in the policy. ## NOTE 12 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS ## A. Interfund Receivables and Payables There was an interfund receivable due to the Construction Fund payable from the Pedestrian and Cyclist Safety nonmajor governmental fund for the amount of $373,866 to cover a cash deficit at year end. There was an interfund receivable due to the Aquatic Center Fund payable from the Edinborough Park nonmajor proprietary fund for the amount of $394,618 to cover a cash deficit at year end. ## B. Interfund Transfers ## Transfers OutGeneralDebt Service ## Liquor ## Aquatic ## Center ## Golf CourseArena ## Nonmajor ## Enterprise ## Internal ## Service ## FundsTotal General-$ -$ -$ -$ -$ 350,000$ -$ -$ 350,000$ ## Housing and Redevelopment Authority- 685,782 - - - - - - 685,782 Construction Fund- 2,948,862 - - - - - - 2,948,862 Utilities Fund225,664 - 4,974 22,726 68,216 181,362 90,877 22,648 616,467 Liquor Fund- - - - - - 1,000,000 - 1,000,000 ## Total 225,664$ 3,634,644$ 4,974$ 22,726$ 68,216$ 531,362$ 1,090,877$ 22,648$ 5,601,111$ ## Transfers In Interfund transfers allow the City to allocate financial resources to the funds that receive benefit from services provided by another fund. Some of the City's interfund transfers fall under that category. Nonroutine transfers included the following: 1. The Liquor Fund transferred $300,000 and $700,000 to the Art Center Fund and Centennial Lakes Fund, respectively. 2. General Fund transferred $350,000 to the Braemer Arena Fund for operations, as planned in the 2025 budget. 3. The Housing and Redevelopment Authority Fund and Construction Fund transferred $685,782 and $2,948,862 of PIR assessment revenue to the debt service fund for related debt payments, respectively. 4. The Utilities Fund transferred a total of $616,467 to the General Fund, other enterprise funds, and internal service funds to offset the costs of internal utilities. ## NOTE 13 – TAX INCREMENT DISTRICTS The Housing Redevelopment Authority and City of Edina are administering authorities for the ## following Tax Increment Districts: District No. 1203 (Centennial Lakes) is a decertified redevelopment district. Page 225 of 401 90 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 13 – TAX INCREMENT DISTRICTS (CONTINUED) District No. 1208-1209-1210 (Southdale #2) is a decertified economic development district. District No. 1211 (Pentagon Park) is a redevelopment district established in 2014 pursuant to Minnesota Statutes with a termination date of 2043. District No. 1212-1213 (Grandview 2) is a redevelopment district established in 2016 pursuant to Minnesota Statutes with a termination date of 2045. District No. 1214 (66 West) is an affordable housing district established in 2016 pursuant to Minnesota Statutes with a termination date of 2044. District No. 1215 (50th & France 2) is a redevelopment district established in 2017 pursuant to Minnesota Statutes with a termination date of 2045. District No. 1216 (44th & France 2) is a renewal and renovation district established in 2018 pursuant to Minnesota Statutes with a termination date of 2036. District No. 1217 (West 76th Street) is a special affordable housing district established in 2018 pursuant to Minnesota Statutes with a termination date of 2042. District No. 1218 (72nd & France) is a decertified redevelopment district. District No. 1219 (Amundson Ave) is a special affordable housing district established in 2019 pursuant to Minnesota Statutes with a termination date of 2042. District No. 1220 (4040 W. 70th Street) is a special affordable housing district established in 2021 pursuant to Minnesota Statutes with a termination date of 2045. District No. 1221 (70th & France) is a renewal and renovation district established in 2022 pursuant to Minnesota Statutes with a termination date of 2041. District No. 1222 (Eden Willson) is a redevelopment district established in 2021 pursuant to Minnesota Statutes with a termination date of 2050. District No. 1223 (72nd & France #2) is a redevelopment district established in 2023 pursuant to Minnesota Statutes with a termination date of 2051. The following table reflects values as of December 31, 2025: Pentagon50th and44th andW. 76th ## Amundson 70th and 72nd and Park Grandview 266 WestFrance 2France 2StreetAveWest 70thFranchFrance TIF #1211TIF #1212TIF #1214TIF #1215TIF #1216TIF #1217TIF #1219TIF #1220TIF #1221TIF #1223Total Original Tax Capacity 691,608$ 39,890$ 15,315$ 57,986$ 29,735$ 16,364$ 6,637$ 69,270$ 323,484$ 217,006$ 1,467,295$ Current Tax Capacity2,118,336 866,598 31,456 992,500 300,325 72,599 62,206 79,375 323,484 199,250 5,046,129 ## Tax Capacity Change1,426,728 826,708 16,141 934,514 270,590 56,235 55,569 10,105 - - 3,578,834 ## Retained Captured Tax Capacity1,426,728$ 826,708$ 16,141$ 934,514$ 270,590$ 56,235$ 55,569$ 10,105$ -$ -$ 3,578,834$ Page 226 of 401 91 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 14 – CONTINGENCIES ## A. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. Workers' compensation insurance was provided through the League of Minnesota Cities Insurance Trust. There is a $50,000 deductible per occurrence and $150,000 in aggregate. The City has an annual deposit premium that is subject to adjustment based on the actual audited payroll. A package policy; including property, general liability, and automobile coverage, is provided through the League of Minnesota Cities Insurance Trust. Under this policy, the City pays an annual premium and had a $75,000 per occurrence deductible and is subject to an annual aggregate deductible of $150,000 with a $1,000,000 per occurrence maximum. Liquor liability coverage is provided through the League of Minnesota Cities Insurance Trust. The City pays an annual premium for this coverage and has a $1,000,000 annual maximum. Settlement claims have not exceeded insurance coverage for each of the past three years. There were no significant decreases in insurance coverage during 2025. ## B. Litigation The City attorney has indicated that existing and pending lawsuits, claims, and other actions in which the City is a defendant are either covered by insurance; of an immaterial amount; or, in the judgment of the City attorney, remotely recoverable by plaintiffs. ## C. Federal and State Funds The City receives financial assistance from federal and state governmental agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with the terms and conditions specified in the grant agreements and is subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the applicable fund. However, in the opinion of management, any such disallowed claims will not have a material effect on any of the financial statements of the individual fund types included herein or on the overall financial position of the City at December 31, 2025. ## D. Tax Increment Districts The City's tax increment districts are subject to review by the state of Minnesota Office of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management is not aware of any instances of noncompliance which would have material effect on the financial statements. Page 227 of 401 92 ## City of Edina ## Notes to Basic Financial Statements ## NOTE 15 – JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS ## A. Joint Ventures The City is a participant with the City of Bloomington, the City of Eden Prairie, and the Metropolitan Airport Commission in a joint venture to construct and operate a facility to be used for the training of law enforcement officers and firefighters. The South Metro Public Safety Training Facility Association (PSTF) is governed by a board consisting of one representative from each Member. On Dissolution of the Association, the Facility shall revert to the City of Edina, and all remaining assets shall be divided among the members based on the Cost Sharing Formula. In accordance with the joint venture agreement, each member of the association will share in the cost of the construction and operation based on the Cost Sharing Formula. The City's equity interest in the capital assets of PSTF was $1,770,353. ## NOTE 16 – RELATED PARTY TRANSACTIONS The City pays an annual membership fee to South Metro Public Safety Training Facility as part of the joint venture agreement. The membership fee is paid by the Police and Fire departments and is based on a Cost Sharing Formula. For the year ended December 31, 2025, the City paid a total of $165,048 in memberships fees to the PSTF, equal to 18.3% of membership fees collected for the year. ## NOTE 17 – PRIOR PERIOD RESTATEMENT For the year ended December 31, 2025, an error correction was required to adjust the beginning fund balance in the Housing and Redevelopment Authority Fund in the amount of $2,786,708 related to the HIA loan receivable. Housing and ## Redevelopment ## Authority ## Governmental ## Activities 12/31/2024, as previously stated 34,583,322 $ 235,646,627 $ Error correction (2,786,708) (2,786,708) 12/31/2024, as adjusted or restated 31,796,614 $ 232,859,919 $ ## Reporting Units Affected by Adjustments to and Restatements of ## Beginning Balances ## Government- ## Wide Page 228 of 401 93 ## REQUIRED SUPPLEMENTARY INFORMATION Page 229 of 401 See notes to required supplementary information. 94 ## City of Edina ## Statement of Revenues, Expenditures, and ## Changes in Fund Balances - ## Budget and Actual - General Fund ## Year Ended December 31, 2025 ## OriginalFinal ## Actual Amounts ## Revenues ## Taxes Property taxes47,543,215$ 47,543,215$ 46,582,974$ (960,241)$ Franchise taxes1,100,000 1,100,000 687,067 (412,933) Lodging tax20,000 20,000 31,552 11,552 Total taxes48,663,215 48,663,215 47,301,593 (1,361,622) Licenses and permits5,821,958 5,821,958 6,787,920 965,962 ## Intergovernmental Federal425,830 425,830 756,222 330,392 ## State Municipal state aid195,000 195,000 195,000 - Health programs230,630 230,630 582,365 351,735 Fire aid472,500 472,500 682,728 210,228 Police aid930,000 930,000 920,594 (9,406) Other grants and aids200,000 200,000 183,580 (16,420) Total intergovernmental revenue2,453,960 2,453,960 3,320,489 866,529 Charges for services Administration180,200 180,200 785 (179,415) Communications and technology50,220 50,220 63,403 13,183 Finance1,567,836 1,567,836 1,567,836 - Public works- - 726 726 Engineering61,800 61,800 256,611 194,811 Police948,800 948,800 1,498,706 549,906 Fire2,618,700 2,618,700 3,159,200 540,500 Parks and recreation810,000 810,000 862,177 52,177 Community development75,000 75,000 154,042 79,042 Total charges for services6,312,556 6,312,556 7,563,486 1,250,930 Fine and forfeitures350,000 350,000 773,992 423,992 ## Miscellaneous Investment income 425,000 425,000 662,952 237,952 Rental of property463,182 463,182 615,976 152,794 Other19,000 19,000 226,248 207,248 Total miscellaneous907,182 907,182 1,505,176 597,994 Total revenues64,508,871 64,508,871 67,252,656 2,743,785 Variance with ## Final Budget ## Budgeted Amounts Page 230 of 401 See notes to required supplementary information. 95 ## City of Edina ## Statement of Revenues, Expenditures, and ## Changes in Fund Balances - ## Budget and Actual - General Fund ## Year Ended December 31, 2025 ## OriginalFinal ## Actual Amounts ## Expenditures ## Current General government ## Administration Personal services1,648,488$ 1,648,488$ 1,624,575$ (23,913)$ Contractual services1,221,110 1,221,110 863,305 (357,805) Commodities86,500 86,500 32,103 (54,397) Internal services246,510 246,510 246,510 - Total administration3,202,608 3,202,608 2,766,493 (436,115) ## Communications Personal services1,117,645 1,117,645 1,204,488 86,843 Contractual services439,718 439,718 423,999 (15,719) Commodities34,500 34,500 11,342 (23,158) Internal services193,516 193,516 193,516 - Total communications1,785,379 1,785,379 1,833,345 47,966 Human resouces Personal services1,557,469 1,557,469 1,283,190 (274,279) Contractual services209,760 209,760 391,284 181,524 Commodities36,600 36,600 26,316 (10,284) Internal services79,832 79,832 79,832 - Total human resources1,883,661 1,883,661 1,780,622 (103,039) ## Finance Personal services1,134,413 1,134,413 1,077,912 (56,501) Contractual services346,070 346,070 533,383 187,313 Commodities16,500 16,500 7,749 (8,751) Internal services(130,426) (130,426) (130,426) - Total finance1,366,557 1,366,557 1,488,618 122,061 Community development Personal services2,077,387 2,077,387 2,009,348 (68,039) Contractual services346,000 346,000 250,345 (95,655) Commodities12,500 12,500 591 (11,909) Internal services213,710 213,710 213,710 - Total community development2,649,597 2,649,597 2,473,994 (175,603) Total general government10,887,802 10,887,802 10,343,072 (544,730) Public safety ## Police Personal services15,300,341 15,300,341 14,419,215 (881,126) Contractual services1,367,430 1,367,430 1,323,910 (43,520) Commodities165,500 165,500 118,936 (46,564) Internal services1,841,433 1,841,433 1,841,433 - Total police18,674,704 18,674,704 17,703,494 (971,210) ## Fire Personal services11,377,875 11,377,875 11,006,345 (371,530) Contractual services1,097,480 1,097,480 1,063,265 (34,215) Commodities416,618 416,618 235,866 (180,752) Internal services836,284 836,284 836,284 - Total fire13,728,257 13,728,257 13,141,760 (586,497) ## Budgeted Amounts Variance with ## Final Budget Page 231 of 401 See notes to required supplementary information. 96 ## City of Edina ## Statement of Revenues, Expenditures, and ## Changes in Fund Balances - ## Budget and Actual - General Fund ## Year Ended December 31, 2025 ## OriginalFinal ## Actual Amounts Expenditures (Continued) Current (continued) Public safety (continued) Public health Personal services757,412$ 757,412$ 770,004$ 12,592$ Contractual services622,992 622,992 1,073,599 450,607 Commodities10,300 10,300 12,038 1,738 Internal services92,570 92,570 92,570 - Total public health1,483,274 1,483,274 1,948,211 464,937 Total public safety33,886,235 33,886,235 32,793,465 (1,092,770) Public works Public works Personal services3,307,972 3,307,972 3,142,094 (165,878) Contractual services1,242,006 1,242,006 791,161 (450,845) Commodities1,210,000 1,210,000 922,123 (287,877) Internal services1,467,322 1,467,322 1,467,322 - Total public works7,227,300 7,227,300 6,322,700 (904,600) ## Engineering Personal services2,951,330 2,951,330 2,774,968 (176,362) Contractual services1,542,140 1,542,140 1,217,964 (324,176) Commodities95,700 95,700 48,389 (47,311) Internal services482,788 482,788 482,788 - Total engineering5,071,958 5,071,958 4,524,109 (547,849) Total public works12,299,258 12,299,258 10,846,809 (1,452,449) Parks and recreation Parks and recreation Personal services5,033,727 5,033,727 4,799,792 (233,935) Contractual services2,014,430 2,014,430 1,908,465 (105,965) Commodities454,300 454,300 471,154 16,854 Internal services740,119 740,119 740,119 - Total parks8,242,576 8,242,576 7,919,530 (323,046) Capital outlay General government- - 203,057 203,057 Debt service Principal- - 29,750 29,750 Interest and fiscal changes- - 102 102 Total debt service- - 29,852 29,852 Total expenditures65,315,871 65,315,871 62,135,785 (3,180,086) ## Budgeted Amounts Variance with ## Final Budget Page 232 of 401 See notes to required supplementary information. 97 ## City of Edina ## Statement of Revenues, Expenditures, and ## Changes in Fund Balances - ## Budget and Actual - General Fund ## Year Ended December 31, 2025 ## Original ## Final ## Actual Amounts Expenditures (Continued) Excess of revenues over (under) expenditures (807,000) $ (807,000) $ 5,116,871 $ 5,923,871 $ ## Other Financing Sources Proceeds from sale of capital asset - - 34,524 34,524 Transfers in 157,000 157,000 225,664 68,664 Transfers out (350,000) (350,000) (350,000) - Total other financing sources (193,000) (193,000) (89,812) 103,188 Net change in fund balances (1,000,000) $ (1,000,000) $ 5,027,059 6,027,059 $ ## Fund Balance Beginning of year 30,937,911 End of year 35,964,970 $ ## Budgeted Amounts Variance with ## Final Budget Page 233 of 401 See notes to required supplementary information. 98 ## Original ## Final ## Actual Amounts ## Revenues Property taxes 259,300 $ 259,300 $ 255,379 $ (3,921) $ Tax increments 2,415,000 2,415,000 4,817,402 2,402,402 Special assessments - - 278,325 278,325 ## Intergovernmental - - 1,037,882 1,037,882 Charges for services 800,000 800,000 1,705,809 905,809 Investment income 304,000 304,000 1,074,395 770,395 Total revenues 3,778,300 3,778,300 9,169,192 5,390,892 ## Expenditures ## Current ## Personal Services 182,088 182,088 182,345 257 ## Contractual Services 8,069,640 8,069,640 3,381,448 (4,688,192) ## Commodities 300 300 1,235 935 Capital outlay General government 1,200,000 1,700,000 1,134,638 (565,362) Total expenditures 9,452,028 9,952,028 4,699,666 (5,252,362) u n Net change in fund balances (5,673,728) (6,173,728) 4,469,526 10,643,254 ## Other Financing Sources (Uses) Transfers out - - (685,782) (685,782) Net change in fund balances (5,673,728) $ (6,173,728) $ 3,783,744 9,957,472 $ ## Fund Balance Beginning of year, as previously stated 34,583,322 Prior period restatement (see note 17) (2,786,708) Beginning of year, restated 31,796,614 End of year 35,580,358 $ ## Budgeted Amounts Variance with ## Final Budget ## City of Edina ## Schedule of Revenues, Expenditures, and ## Changes in Fund Balances - ## Budget and Actual ## Housing and Redevelopment Authority (HRA) Fund ## Year Ended December 31, 2025 Page 234 of 401 See notes to required supplementary information. 99 ## City's Covered- employee ## Payroll 20250.2971%9,849,457$ 237,503$ 10,086,960$ 26,907,453$ 36.60%90.78% 20240.2940%10,869,570 281,066 11,150,636 24,884,240 43.68%89.08% 20230.3093%17,149,631 472,717 17,622,348 23,883,249 71.81%83.10% 20220.2927%22,973,466 673,551 23,647,017 21,857,115 105.11%76.67% 20210.2911%12,320,807 379,625 12,700,432 20,898,307 58.96%87.00% 20200.2764%16,405,731 511,142 16,916,873 19,847,440 82.66%79.06% 20190.2694%14,745,577 462,813 15,208,390 19,063,827 77.35%80.23% 20180.2679%14,713,374 482,647 15,196,021 18,007,013 81.71%79.53% 20170.2772%17,519,302 220,299 17,739,601 17,858,560 98.10%75.90% 20160.2656%21,349,748 278,868 21,628,616 16,481,973 129.53%68.91% ## For Fiscal ## Year Ended June 30, ## City's Proportion of the Net ## Pension ## Liability (Asset) ## City's ## Proportionate Share of the Net ## Pension Liability (Asset) ## State's ## Proportionate ## Share (Amount) of the Net ## Pension ## Liability ## Associated with the City ## City's ## Proportionate Share of the Net ## Pension Liability and the State's ## Proportionate Share of the Net ## Pension Liability Associated with the City ## City's Covered- employee ## Payroll ## City's ## Proportionate Share of the ## Net Pension ## Liability (Asset) as a Percentage of its Covered- employee ## Payroll ## Plan Fiduciary ## Net Position as a Percentage of the Total ## Pension ## Liability 20250.8696%10,188,251$ 353,175$ 10,541,426$ 13,196,994$ 77.20%91.78% 20240.8868%11,667,381 444,756 12,112,137 12,280,463 95.01%90.17% 20230.8802%15,199,910 612,293 15,812,203 11,559,197 131.50%86.47% 20220.8758%38,111,357 1,664,806 39,776,163 10,638,687 358.23%70.53% 20210.8688%6,706,215 301,506 7,007,721 10,268,277 65.31%93.66% 20200.8704%11,472,803 270,277 11,743,080 9,819,457 116.84%87.19% 20190.8479%9,026,752 - 9,026,752 9,151,062 98.64%89.26% 20180.8022%8,550,626 - 8,550,626 8,454,142 101.14%88.84% 20170.8110%10,949,465 - 10,949,465 8,322,605 131.56%85.43% 20160.7990%32,065,260 - 32,065,260 7,699,821 416.44%63.88% ## City of Edina ## Schedule of City's Proportionate Share ## of Net Pension Liability ## General Employees Retirement Fund ## Last Ten Years ## Last Ten Years ## For Fiscal ## Year Ended June 30, ## State's ## Proportionate ## Share (Amount) of the Net ## Pension ## Liability ## Associated with the City ## City's ## Proportionate Share of the Net ## Pension Liability and the State's ## Proportionate Share of the Net ## Pension Liability Associated with the City ## Public Employees Police and Fire Retirement Fund ## Schedule of City's Proportionate Share ## of Net Pension Liability ## City's ## Proportionate ## Share (Percentage) of the Net ## Pension ## Liability (Asset) ## City's ## Proportionate Share (Amount) of the Net ## Pension Liability (Asset) ## City's ## Proportionate Share of the ## Net Pension ## Liability (Asset) as a Percentage of its Covered- employee ## Payroll ## Plan Fiduciary ## Net Position as a Percentage of the Total ## Pension ## Liability Page 235 of 401 See notes to required supplementary information. 100 2025 2,011,368 $ 2,011,368 $ - $ 26,818,240 $ 7.50% 2024 1,948,579 1,948,579 - 25,981,053 7.50% 2023 1,866,318 1,866,318 - 24,884,240 7.50% 2022 1,696,759 1,696,759 - 22,623,453 7.50% 2021 1,607,199 1,607,199 - 21,429,320 7.50% 2020 1,518,494 1,518,494 - 20,246,587 7.50% 2019 1,471,059 1,471,059 - 19,614,120 7.50% 2018 1,378,743 1,378,743 - 18,383,240 7.50% 2017 1,317,596 1,317,596 - 17,567,947 7.50% 2016 1,265,817 1,265,817 - 16,877,560 7.50% 2025 2,461,147 $ 2,461,147 $ - $ 13,904,785 $ 17.70% 2024 2,241,459 2,241,459 - 12,663,610 17.70% 2023 2,173,642 2,173,642 - 12,280,463 17.70% 2022 1,953,054 1,953,054 - 11,034,203 17.70% 2021 1,850,353 1,850,353 - 10,453,972 17.70% 2020 1,784,694 1,784,694 - 10,083,017 17.70% 2019 1,595,304 1,595,304 - 9,847,556 16.20% 2018 1,399,053 1,399,053 - 8,625,481 16.22% 2017 1,335,917 1,335,917 - 8,246,401 16.20% 2016 1,272,485 1,272,485 - 7,854,846 16.20% ## City of Edina ## Schedule of City Contributions - ## General Employees Retirement Fund ## Last Ten Years ## Contribution ## Deficiency (Excess) ## Contributions in Relation to the Statutorily ## Required ## Contributions ## City's Covered- employee ## Payroll ## Statutorily ## Required ## Contribution ## Contributions as a Percentage of ## Covered- employee ## Payroll ## Schedule of City Contributions - ## Public Employees Police and Fire Retirement Fund ## Fiscal Year ## Ending December 31, ## Statutorily ## Required ## Contribution ## Contributions in Relation to the Statutorily ## Required ## Contributions ## City's Covered- employee ## Payroll ## Fiscal Year ## Ending December 31, ## Contributions as a Percentage of ## Covered- employee ## Payroll ## Contribution ## Deficiency (Excess) ## Last Ten Years Page 236 of 401 See notes to required supplementary information. 101 December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2017 2018 2019 2020 2021 2022 2023 2024 ## Total OPEB Liability Service cost 270,435 $ 296,634 $ 192,093 $ 239,792 $ 280,452 $ 407,276 $ 313,990 $ 560,769 $ ## Interest 127,096 128,559 154,222 65,302 58,062 77,753 141,664 189,849 Differences between expected and actual experience - - (1,909,627) 9,714 1,503,227 (7,355) 559,438 20,345 Changes of assumptions 87,259 (178,824) 212,364 105,246 (790,776) (483,539) 465,916 (135,238) Benefit payments (133,679) (138,732) (77,801) (90,566) (119,930) (164,310) (190,465) (189,374) Net change in total OPEB liability 351,111 107,637 (1,428,749) 329,488 931,035 (170,175) 1,290,543 446,351 Beginning of year 3,158,764 3,509,875 3,617,512 2,188,763 2,518,251 3,449,286 3,279,111 4,569,654 End of year 3,509,875 $ 3,617,512 $ 2,188,763 $ 2,518,251 $ 3,449,286 $ 3,279,111 $ 4,569,654 $ 5,016,005 $ 23,900,000 $ 24,800,000 $ 25,800,000 $ 26,700,000 $ # 30,100,000 $ 36,100,000 $ 39,100,000 $ 42,400,000 $ 14.7% 14.6% 8.5% 9.4% 11.5% 9.1% 11.7% 11.8% ## and Related Ratios Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available. No assets are accululated in a trust. Covered-employee payroll Total OPEB liability as a percentage of covered-employee payroll ## City of Edina ## Schedule of Changes in Total OPEB Liability Page 237 of 401 102 ## City of Edina ## Notes to Required Supplementary Information December 31, 2025 ## NOTE 1 – LEGAL COMPLIANCE – BUDGETS The City follows these procedures in establishing the budgetary data reflected in the preceding schedules: 1. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is legally enacted by the passage of a resolution by the City Council. 4. Formal budgetary integration is employed as a management control device during the year. 5. Budgets for all governmental funds are adopted on a basis consistent with accounting principles generally accepted in the United States of America. 6. Reported budget amounts are as originally adopted or as amended by Council-approved supplemental appropriations and budget transfers. 7. Expenditures may not legally exceed appropriations by department in the General Fund unless offset by increases in revenues. All unencumbered appropriations lapse at year-end. ## NOTE 2 – EXCESS OF EXPENDITURES OVER APPROPRIATIONS The General Fund is legally adopted on a basis consistent with accounting principles generally accepted in the United Statement of America. The legal level of budgetary control is at the department level for the General Fund. The following is a listing of General Fund departments whose expenditures exceed budget appropriations. ## FinalOver ## BudgetActualBudget ## General Fund ## General Government Communications1,785,379$ 1,833,345$ 47,966$ Finance1,366,557 1,488,618 122,061 ## Public Safety Public Health1,483,274 1,948,211 464,937 Capital Outlay- 203,057 203,057 Debt Service- 29,852 29,852 Excess expenditures were due to slightly higher than anticipated costs. The remaining governmental funds budgets are legally adopted on a basis consistent with accounting principles generally accepted in the United States of America. The legal level of budgetary control is at the fund level for these funds. Page 238 of 401 103 103 ## City of Edina ## Notes to Required Supplementary Information December 31, 2025 ## NOTE 3 – PENSIONS AND OPEB ## General Employees Fund 2025 Changes ## Changes in Actuarial Assumptions • The combined service annuity loading factors increased from 15% to 19% for vested, terminated members and from 3% to 44% for non-vested, terminated members. • The assumed post-retirement benefit increase changed from 1.25% to 1.5%. ## Changes in Plan Provisions • The post-retirement benefit increase formula changed to 100% of the Social Security annual increase, between 1% and 1.75%, beginning January 1, 2026. If the funded ratio (on a market value of assets basis) is less than 85% for the last two consecutive annual valuations or is less than 80% in the most recent actuarial valuation, the maximum is reduced to 1.5%. Previously, the benefit increase was 50% of the Social Security annual increase, between 1% and 1.5%. • The 1% additional employer contribution is eliminated when the plan reaches 98% funded status (on an actuarial value of assets basis); this contribution was previously scheduled to stop when the plan reached 100% funded status. 2024 Changes ## Changes in Actuarial Assumptions • Rates of merit and seniority were adjusted, resulting in slightly higher rates. • Assumed rates of retirement were adjusted as follows: increase the rate of assumed unreduced retirements, slight adjustments to Rule of 90 retirement rates, and slight adjustments to early retirement rates for Tier 1 and Tier 2 members. • Minor increase in assumed withdrawals for males and females. • Lower rates of disability. • Continued use of Pub-2010 general mortality table with slight rate adjustments as recommended in the most recent experience study. • Minor changes to form of payment assumptions for male and female retirees. • Minor changes to assumptions made with respect to missing participant data. ## Changes in Plan Provisions • The workers' compensation offset for disability benefits was eliminated. The actuarial equivalent factors updated to reflect the changes in assumptions. 2023 Changes ## Changes in Actuarial Assumptions • The investment return assumption and single discount rate were changed from 6.5% to 7.0%. ## Changes in Plan Provisions • An additional one-time direct state aid contribution of $170.1 million was contributed to the Plan on October 1, 2023. • The vesting period of those hired after June 30, 2010, was changed from five years of allowable service to three years of allowable service. • The benefit increase delay for early retirements on or after January 1, 2024, was eliminated. • A one-time, non-compounding benefit increase of 2.5% minus the actual 2024 adjustment will be payable in a lump sum for calendar year 2024 by March 31, 2024. Page 239 of 401 104 104 ## City of Edina ## Notes to Required Supplementary Information December 31, 2025 ## NOTE 3 – PENSIONS AND OPEB (CONTINUED) ## General Employees Fund (Continued) 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 have been no changes since the prior valuation. 2021 Changes ## Changes in Actuarial Assumptions • The investment return and single discount rates were changed from 7.5% to 6.5% for financial reporting purposes. • The mortality improvement scale was changed from scale MP-2019 to scale MP-2020. ## Changes in Plan Provisions • There have been no changes since the prior valuation. 2020 Changes ## Changes in Actuarial Assumptions • The price inflation assumption was decreased from 2.5% to 2.25%. • The payroll growth assumption decreased from 3.25% to 3.0%. • 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 changes 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 RP-2014 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 and Survivor option changed from 35% to 45%. The assumed number of married female new retires electing the 100% Joint and 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% thereafter. Augmentation was eliminated for privatizations occurring after June 30, 2020. Page 240 of 401 105 105 ## City of Edina ## Notes to Required Supplementary Information December 31, 2025 ## NOTE 3 – PENSIONS AND OPEB (CONTINUED) ## General Employees Fund (Continued) 2019 Changes ## Changes in Actuarial Assumptions • The mortality 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 mortality projection scale was changed from MP-2015 to MP-2017. • The assumed benefit increase was changed from 1.0% per year through 2044 and 2.5% per year thereafter to 1.25% 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% to 3.00%, beginning July 1, 2018. • Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. • Contribution stabilizer provisions were repealed. • Annual increases were changed from 1.00% per year with a provision to increase to 2.50% upon attainment of 90.00% funding ratio to 50.00% of the Social Security Cost of Living Adjustment, not less than 1.00% and not more than 1.50%, 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. This 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 CSA loads were changed from 0.8% for active members and 60% for vested and non-vested deferred members. The revised CSA loads are now 0.0% for active member liability, 15% for vested deferred member liability and 3% for non-vested deferred member liability. • The assumed annual increase rate was changed from 1.0% per year for all years to 1.0% per year through 2044 and 2.5% per year thereafter. ## 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. Page 241 of 401 106 106 ## City of Edina ## Notes to Required Supplementary Information December 31, 2025 ## NOTE 3 – PENSIONS AND OPEB (CONTINUED) ## General Employees Fund (Continued) 2016 Changes ## Changes in Actuarial Assumptions • The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035 and 2.5% per year thereafter to 1.0% per year for all future years. • The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was changed from 7.9% to 7.5%. • Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary increases, payroll growth, the inflation was decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. ## Changes in Plan Provisions • There have been no changes since the prior valuation. Page 242 of 401 107 107 ## City of Edina ## Notes to Required Supplementary Information December 31, 2025 ## NOTE 3 – PENSIONS AND OPEB (CONTINUED) ## Police and Fire Fund 2025 Changes ## Changes in Actuarial Assumptions • Assumed rates of salary increases were reduced slightly. • Assumed rates of retirement were adjusted, resulting in an overall increase in unreduced (full) retirements and an overall increase in reduced (early) retirements. • Assumed rates of withdrawal were modified; the new rates will increase predicted terminations, especially in the first few years of employment. • Assumed rates of disabled retirement were significantly increased, especially for ages over age 30. • Continued used of Pub-2010 Public Safety Mortality Table with rates adjusted to better fit observed experience. • Percent married assumption for female retirees lowered from 70% to 65%. • Minor changes were made to form of payment assumptions for retirees. • Minor changes were made to assumptions made with respect to missing participant data. • The combined service annuity load changed from 33% to 13% for vested, terminated members and from 2% to 38% for non-vested, terminated members. ## Changes in Plan Provisions • The period of time needed for benefit recipients to receive their first benefit increase was reduced by one year (from 36 months to 24 months for a full increase). • The January 1, 2026, benefit increase changed from 1% to 3%; subsequent January 1 increases will be 1%. • The threshold to end the $9 million annual state aid contribution changed from the earlier of July 1, 2048, or 90% funded for both PERA Police & Fire and MSRS State Patrol for three consecutive years to 100% funded for both PERA Police & Fire and MSRS State Patrol for three consecutive years (on an actuarial value of assets basis). • The threshold to end the additional $9 million annual state aid contribution changed from the earlier of July 1, 2048 or 100% funded for a minimum of three consecutive years to 110% funded for a minimum of three consecutive years (on an actuarial value of assets basis). • An additional $17.7 million in direct state aid will be paid annually each October 1 beginning October 1, 2025, through June 30, 2048. • Joint and survivor actuarial equivalent factors were updated to reflect changes in assumptions. 2024 Changes ## Changes in Plan Provisions • The State contribution of $9.0 million per year will continue until the earlier of 1) both the Police and Fire Plan and the State Patrol Retirement Fund attain 90% funded status for three consecutive years (on an actuarial value of assets basis) or 2) July 1, 2048. The contribution was previously due to expire after attaining a 90% funded status for one year. • The additional $9.0 million contribution will continue until the Police and Fire Plan is fully funded for a minimum of three consecutive years on an actuarial value of assets basis, or July 1, 2048, whichever is earlier. This contribution was previously due to expire upon attainment of fully funded status on an actuarial value of assets basis for one year (or July 1, 2048 if earlier). Page 243 of 401 108 108 ## City of Edina ## Notes to Required Supplementary Information December 31, 2025 ## NOTE 3 – PENSIONS AND OPEB (CONTINUED) ## Police and Fire Fund (Continued) 2023 Changes ## Changes in Actuarial Assumptions • The investment return assumption was changed from 6.5% to 7.0%. • The single discount rate changed from 5.4% to 7.0%. ## Changes in Plan Provisions • Additional one-time direct state aid contribution of 19.4 million will be contributed to the Plan on October 1, 2023. • Vesting requirement for new hires after June 30, 2014, was changed from a graded 20-year vesting schedule to a graded 10-year vesting schedule, with 50% vesting after five years, increasing incrementally to 100% after 10 years. • A one-time, non-compounding benefit increase of 3.0% will be payable in a lump sum for calendar year 2024 by March 31, 2024. • Psychological treatment is required effective July 1, 2023, prior to approval for a duty disability benefit for a psychological condition relating to the member's occupation. • The total and permanent duty disability benefit was increased, effective July 1, 2023. 2022 Changes ## Changes in Actuarial Assumptions • The mortality improvement scale was changed from scale MP-2020 to scale MP-2021. • The single discount rate was changed from 6.5% to 5.4%. ## Changes in Plan Provisions • There have been no changes since the prior valuation. 2021 Changes ## Changes in Actuarial Assumptions • The investment return and single discount rates were changed from 7.5% to 6.5% for financial reporting purposes. • The inflation assumption was changed from 2.5% to 2.25%. • The payroll growth assumption was changed from 3.25% to 3.0%. • 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 MP-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 MP-2019) 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 resulted in slightly more unreduced retirements and fewer assumed early retirements. • Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates. The changes resulted in more assumed terminations. Page 244 of 401 109 109 ## City of Edina ## Notes to Required Supplementary Information December 31, 2025 ## NOTE 3 – PENSIONS AND OPEB (CONTINUED) ## Police and Fire Fund (Continued) 2021 Changes (Continued) ## Changes in Actuarial Assumptions (Continued) • Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall, proposed rates resulted in more projected disabilities. • Assumed % married for active female members was changed from 60% to 70%. Minor changes to form of payment assumptions were applied. ## Changes in Plan Provisions • There have been no changes since the prior valuation. 2020 Changes ## Changes in Actuarial Assumptions • The mortality 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 mortality 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 mortality projection scale was changed from MP-2016 to MP-2017. ## Changes in Plan Provisions • Annual increases were changed to 1.00% 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% funding, or July 1, 2048, if earlier. • Member contributions were changed from 10.80% to 11.30% of pay, effective January 1, 2019, and 11.80% of pay, effective January 1, 2020. • Employer contributions were changed from 16.20% to 16.95% of pay, effective January 1, 2019, and 17.70% of pay, effective January 1, 2020. • Interest credited on member contributions decreased from 4.00% to 3.00%, beginning July 1, 2018. • Deferred augmentation was changed to 0.00%, 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. Page 245 of 401 110 110 ## City of Edina ## Notes to Required Supplementary Information December 31, 2025 ## NOTE 3 – PENSIONS AND OPEB (CONTINUED) ## Police and Fire Fund (Continued) 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% lower than the previous rates. • Assumed rates of retirement were changed, resulting in fewer retirements. • The CSA load was 30% for vested and non-vested deferred members. The CSA has been changed to 33% for vested members and 2% 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% 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% to 60%. • 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 annual benefit increase rate was changed from 1% for all years to 1% per year through 2064 and 2.5% thereafter. • The single discount rate was changed from 5.6% per annum to 7.5% per annum. ## Changes in Plan Provisions • There have been no changes since the prior valuation. 2016 Changes ## Changes in Actuarial Assumptions • The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037 and 2.5% thereafter to 1.0% per year for all future years. • The assumed investment return was changed from 7.9% to 7.5%. The single discount rate changed from 7.9% to 5.6%. • The single discount rate changed from 7.90% to 5.60%. • The assumed future salary increases, payroll growth, and inflation was decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. ## Changes in Plan Provisions • There have been no changes since the prior valuation. Page 246 of 401 111 111 ## City of Edina ## Notes to Required Supplementary Information December 31, 2025 ## NOTE 3 – PENSIONS AND OPEB (CONTINUED) ## Post Employment Health Care Plan 2025 Changes ## Changes in Actuarial Assumptions • The discount rate changed from 3.77% to 4.08%. 2024 Changes ## Changes in Actuarial Assumptions • The discount rate changed from 4.05% to 3.77%. 2023 Changes ## Changes in Actuarial Assumptions • The discount rate changed from 2.06% to 4.05%. 2022 Changes ## Changes in Actuarial Assumptions • The discount rate changed from 2.12% to 2.06%. 2021 Changes ## Changes in Actuarial Assumptions • The discount rate changed from 2.74% to 2.12%. • The payroll growth rate was changed from 3.25% to 2.50%. 2020 Changes ## Changes in Actuarial Assumptions • The discount rate changed from 4.09% to 2.74%. • The payroll growth rate was changed from 3.50% to 3.25%. 2019 Changes ## Changes in Actuarial Assumptions • The discount rate changed from 3.44% to 4.09%. 2018 Changes ## Changes in Actuarial Assumptions • The discount rate changed from 4.50% to 3.44%. Page 247 of 401 112 ## (THIS PAGE LEFT BLANK INTENTIONALLY) Page 248 of 401 113 ## SUPPLEMENTARY INFORMATION Page 249 of 401 114 ## (THIS PAGE LEFT BLANK INTENTIONALLY) Page 250 of 401 115 ## City of Edina ## Nonmajor Governmental Funds ## Special Revenue Funds Special Revenue Funds are used to account for specific revenues that are restricted to expenditures for particular purposes. The following are nonmajor special revenue funds: ## Community Development Block Grant Fund This fund was established to account for funds received under Title I of the Housing and Community Development Act of 1974. ## Police Fund This fund was established to account for funds received for specific purposes within the police department, including E-911 and Forfeiture funds. ## Braemar Memorial Fund This fund was established to account for funds donated to the City for the purpose of enhancing the Braemar golf course with equipment and amenities that might not otherwise be affordable or viewed as necessity to the golf course. ## Pedestrian and Cyclist Safety Fund This fund was established to account for funds received from gas and electric franchise fees to be used for pedestrian and cyclist improvements included in future street reconstruction projects. ## Conservation and Sustainability Fund This fund was established to account for funds received from gas and electric franchise fees to be used for initiatives focused on conservation and sustainability. ## Opioid Settlement Fund This fund was established to account for funds that will be received over the next 18 years for the City's share of national settlement agreements with several pharmaceutical companies related to opioid selling and distribution. These funds are restricted to be used for opioid epidemic response activities. ## Public Safety Fund This fund was established to account for the 2023 Omnibus tax bill that included $210 million in one- time public safety aid to cities across the state. Unlike local government aid, this aid cannot be used for general purposes but instead must be used to "provide public safety". The City received $2,344,327 on December 26, 2023. Page 251 of 401 116 ## Community ## Development ## Block GrantPolice ## Braemar ## Memorial Pedestrian and ## Cyclist Safety ## Conservation and ## Sustainability ## Opioid ## SettlementPublic Safety ## Assets Cash and investments-$ 1,082,485$ 132,156$ -$ 919,888$ 277,667$ 1,832,225$ 4,244,421$ Accrued interest- - 874 374 8,239 1,748 14,106 25,341 Accounts receivable- 551 - 382,886 297,764 - - 681,201 Due from other governments- 38,662 - - - 142,155 - 180,817 Prepaid expenses- 8,372 - - 2,460 - - 10,832 Total assets-$ 1,130,070$ 133,030$ 383,260$ 1,228,351$ 421,570$ 1,846,331$ 5,142,612$ ## Liabilities Accounts payable-$ 964$ -$ 378,240$ 21,670$ -$ 7,580$ 408,454$ Contracts payable- - - 24,165 12,718 - - 36,883 Due to other funds- - - 373,866 - - - 373,866 Due to other governments- - - - - 6,683 - 6,683 Salaries and benefits payable- - - 8,612 15,351 - - 23,963 Unearned revenue- - - - - 90 - 90 Total liabilities- 964 - 784,883 49,739 6,773 7,580 849,939 ## Deferred Inflows of Resources Unavailable revenue- - - - - 142,155 - 142,155 ## Fund Balances Nonspendable- 8,372 - - 2,460 - - 10,832 Restricted- 1,120,734 133,030 - 1,176,152 272,642 1,838,751 4,541,309 Unassigned- - - (401,623) - - - (401,623) Total fund balances- 1,129,106 133,030 (401,623) 1,178,612 272,642 1,838,751 4,150,518 Total liabilities, deferred inflow of resources, and fund balances-$ 1,130,070$ 133,030$ 383,260$ 1,228,351$ 279,415$ 1,846,331$ 5,142,612$ ## Total ## Nonmajor ## Governmental ## Funds ## City of Edina ## Combining Balance Sheet - ## Nonmajor Governmental Funds December 31, 2025 ## Special Revenue Page 252 of 401 117 ## Community ## Development ## Block GrantPolice ## Braemar ## Memorial Pedestrian and ## Cyclist Safety ## Conservation and ## Sustainability ## Opioid ## SettlementPublic Safety ## Revenues Franchise Taxes-$ -$ -$ 1,566,384$ 1,192,483$ -$ -$ 2,758,867$ Intergovernmental- 10,108 - 143,325 113,679 43,721 - 310,833 Investment income- 592 14,588 12,295 73,234 12,874 118,989 232,572 Other revenues95,754 219,914 4,505 - 34,339 - - 354,512 Total revenues95,754 230,614 19,093 1,722,004 1,413,735 56,595 118,989 3,656,784 ## Expenditures ## Current Public safety- 98,434 - - - 21,005 83,402 202,841 Public works- - - 306,964 575,767 - - 882,731 Parks- - 6,225 - - - - 6,225 Capital outlay Public safety- - - - - - 490,284 490,284 Public works- - - 2,076,877 693,374 - - 2,770,251 - Total expenditures- 98,434 6,225 2,383,841 1,269,141 21,005 573,686 4,352,332 Net change in fund balances95,754 132,180 12,868 (661,837) 144,594 35,590 (454,697) (695,548) ## Fund Balances Beginning of year(95,754) 996,926 120,162 260,214 1,034,018 237,052 2,293,448 4,846,066 End of year-$ 1,129,106$ 133,030$ (401,623)$ 1,178,612$ 272,642$ 1,838,751$ 4,150,518$ ## City of Edina ## Total ## Nonmajor ## Governmental ## Funds ## Combining Statement of Revenues, Expenditures, and Changes ## in Fund Balances - Nonmajor Governmental Funds ## Year Ended December 31, 2025 ## Special Revenue Page 253 of 401 118 ## Original ## Final ## Actual Amounts ## Revenues ## Intergovernmental 170,000 $ 170,000 $ - $ (170,000) $ Miscellaneous revenues - - 95,754 95,754 Total revenues 170,000 170,000 95,754 (74,246) ## Expenditures ## Current General government 170,000 170,000 - (170,000) u n Net change in fund balances - $ - $ 95,754 95,754 $ ## Fund Balance Beginning of year (95,754) End of year - $ ## Budgeted Amounts Variance with ## Final Budget ## City of Edina ## Schedule of Revenues, Expenditures, and ## Changes in Fund Balances - ## Budget and Actual ## Special Revenue Fund - Community Development Block Grant ## Year Ended December 31, 2025 Page 254 of 401 119 ## Original ## Final ## Actual Amounts ## Revenues ## Intergovernmental - $ - $ 10,108 $ 10,108 $ Investment income 3,000 3,000 592 (2,408) Miscellaneous revenues 225,000 225,000 219,914 (5,086) Total revenues 228,000 228,000 230,614 2,614 ## Expenditures ## Current Public safety 147,500 147,500 98,434 (49,066) u n Net change in fund balances 80,500 $ 80,500 $ 132,180 51,680 $ ## Fund Balance Beginning of year 996,926 End of year 1,129,106 $ ## Budgeted Amounts Variance with ## Final Budget ## City of Edina ## Schedule of Revenues, Expenditures, and ## Changes in Fund Balances - ## Budget and Actual ## Special Revenue Fund - Police ## Year Ended December 31, 2025 Page 255 of 401 120 ## Original ## Final ## Actual Amounts ## Revenues Investment income 1,000 $ 1,000 $ 14,588 $ 13,588 $ Miscellaneous revenues 2,500 2,500 4,505 2,005 Total revenues 3,500 3,500 19,093 15,593 ## Expenditures ## Current Park and recreation 1,000 1,000 6,225 5,225 u n Net change in fund balances 2,500 $ 2,500 $ 12,868 10,368 $ ## Fund Balance Beginning of year 120,162 End of year 133,030 $ ## Budgeted Amounts Variance with ## Final Budget ## City of Edina ## Schedule of Revenues, Expenditures, and ## Changes in Fund Balances - ## Budget and Actual ## Special Revenue Fund - Braemar Memorial ## Year Ended December 31, 2025 Page 256 of 401 121 ## Original ## Final ## Actual Amounts ## Revenues Franchise taxes 1,230,000 $ 1,230,000 $ 1,566,384 $ 336,384 $ ## Intergovernmental - - 143,325 143,325 Investment income 22,000 22,000 12,295 (9,705) Total revenues 1,252,000 1,252,000 1,722,004 470,004 ## Expenditures ## Current Public works 252,023 252,023 306,964 54,941 Capital outlay Public works 1,594,100 1,594,100 2,076,877 482,777 Total expenditures 1,846,123 1,846,123 2,383,841 537,718 u n Net change in fund balances (594,123) $ (594,123) $ (661,837) (67,714) $ ## Fund Balance Beginning of year 260,214 End of year (401,623) $ ## Budgeted Amounts Variance with ## Final Budget ## City of Edina ## Schedule of Revenues, Expenditures, and ## Changes in Fund Balances - ## Budget and Actual ## Special Revenue Fund - Pedestrian and Cyclist Safety ## Year Ended December 31, 2025 Page 257 of 401 122 ## Original ## Final ## Actual Amounts ## Revenues Franchise taxes 980,000 $ 980,000 $ 1,192,483 $ 212,483 $ ## Intergovernmental - - 113,679 113,679 Investment income 46,000 46,000 73,234 27,234 Miscellaneous revenues 20,000 20,000 34,339 14,339 Total revenues 1,046,000 1,046,000 1,413,735 367,735 ## Expenditures ## Current Public works 624,466 624,466 575,767 (48,699) Capital outlay Public works 1,625,000 1,625,000 693,374 (931,626) Total expenditures 2,249,466 2,249,466 1,269,141 (980,325) u n Net change in fund balances (1,203,466) $ (1,203,466) $ 144,594 1,348,060 $ ## Fund Balance Beginning of year 1,034,018 End of year 1,178,612 $ ## Budgeted Amounts Variance with ## Final Budget ## City of Edina ## Schedule of Revenues, Expenditures, and ## Changes in Fund Balances - ## Budget and Actual ## Special Revenue Fund - Conservation and Sustainability ## Year Ended December 31, 2025 Page 258 of 401 123 ## OriginalFinal ## Actual Amounts ## Revenues Intergovernmental34,622$ 34,622$ 43,721$ 9,099$ Investment income2,000 2,000 12,874 10,874 Total revenues36,622 36,622 56,595 19,973 ## Expenditures ## Current Public safety34,622 34,622 21,005 (13,617) ## E x u n Net change in fund balances2,000$ 2,000$ 35,590 33,590$ ## Fund Balance Beginning of year237,052 End of year272,642$ ## Budgeted Amounts Variance with ## Final Budget ## City of Edina ## Schedule of Revenues, Expenditures, and ## Changes in Fund Balances - ## Budget and Actual ## Special Revenue Fund - Opioid Settlement ## Year Ended December 31, 2025 Page 259 of 401 124 ## Original ## Final ## Actual Amounts ## Revenues Investment income - $ - $ 118,989 $ 118,989 $ ## Expenditures ## Current Public safety - 70,865 83,402 12,537 Capital outlay Public safety - 845,200 490,284 (354,916) Total expenditures - 916,065 573,686 (342,379) u n Net change in fund balances - $ (916,065) $ (454,697) 461,368 $ ## Fund Balance Beginning of year 2,293,448 End of year 1,838,751 $ ## Budgeted Amounts Variance with ## Final Budget ## City of Edina ## Schedule of Revenues, Expenditures, and ## Changes in Fund Balances - ## Budget and Actual ## Special Revenue Fund - Public Safety Fund ## Year Ended December 31, 2025 Page 260 of 401 125 ## City of Edina ## Major Governmental Funds ## Major Governmental Funds ## Debt Service Fund This fund was established to account for the payment of principal and interest on the General Obligation, Permanent Improvement Revolving, and Public Project Revenue. ## Construction Fund This fund was established to account for various special assessment and state aid projects throughout the City. This fund also provides financing for capital improvements as designated in the City's capital improvement budget. Page 261 of 401 126 ## OriginalFinal ## Actual Amounts ## Revenues Property taxes3,481,100$ 5,377,639$ 5,273,981$ (103,658)$ Special assessments- - 187,805 187,805 Intergovernmental- - 996,250 996,250 Investment income- - 79,377 79,377 Total revenues3,481,100 5,377,639 6,537,413 1,159,774 ## Expenditures Debt service Principal22,705,000 22,705,000 22,705,000 - Interest and other charges2,307,344 2,307,344 4,328,273 2,020,929 Total expenditures25,012,344 25,012,344 27,033,273 2,020,929 Excess of revenues over u n (under) expenditures (21,531,244) (19,634,705) (20,495,860) (861,155) ## Other Financing Sources (Uses) Bonds issued - - 147,185 147,185 Transfers in2,948,862 2,948,862 3,634,644 685,782 Total other financing sources (uses)2,948,862 2,948,862 3,781,829 832,967 Net change in fund balances(18,582,382)$ (16,685,843)$ (16,714,031) (28,188)$ ## Fund Balance Beginning of year24,354,318 End of year7,640,287$ ## Budgeted Amounts Variance with ## Final Budget ## City of Edina ## Schedule of Revenues, Expenditures, and ## Changes in Fund Balances - ## Budget and Actual ## Governmental Fund - Debt Service ## Year Ended December 31, 2025 Page 262 of 401 127 ## OriginalFinal ## Actual Amounts ## Revenues Property taxes5,830,000$ 5,830,000$ 5,710,061$ (119,939)$ Special assessments3,723,637 3,723,637 4,388,655 665,018 General sales tax5,436,000 5,436,000 7,427,094 1,991,094 Franchise taxes80,000 80,000 206,120 126,120 Licenses and permits- - 55,514 55,514 Intergovernmental- - 19,698,830 19,698,830 Charges for services- - 291,174 291,174 Investment income382,000 382,000 4,338,706 3,956,706 Miscellaneous revenues- - 128,976 128,976 Total revenues15,451,637 15,451,637 42,245,130 26,793,493 ## Expenditures ## Current General government- - 70,847 70,847 Public safety- - 786,182 786,182 Public works144,413 144,413 1,444,326 1,299,913 Park and recreation- - 241,115 241,115 Capital outlay General government5,477,404 5,477,404 17,689,263 12,211,859 Public safety845,300 845,300 14,645,983 13,800,683 Public works11,449,776 11,449,776 7,212,749 (4,237,027) Park and recreation1,124,300 1,124,300 5,340,300 4,216,000 Total expenditures19,041,193 19,041,193 47,430,765 28,389,572 Excess of revenues over u n (under) expenditures(3,589,556) (3,589,556) (5,185,635) (1,596,079) ## Other Financing Sources (Uses) Proceeds from sale of capital asset- - 228,098 228,098 Bonds issued - - 21,212,815 21,212,815 Premium on bonds issued - - 977,298 977,298 Transfers out(2,948,861) (2,948,861) (2,948,862) (1) Total other financing sources (uses)(2,948,861) (2,948,861) 19,469,349 22,418,210 Net change in fund balances(6,538,417)$ (6,538,417)$ 14,283,714 20,822,131$ ## Fund Balance Beginning of year56,399,479 End of year70,683,193$ ## Budgeted Amounts Variance with ## Final Budget ## City of Edina ## Schedule of Revenues, Expenditures, and ## Changes in Fund Balances - ## Budget and Actual ## Governmental Fund - Construction Capital Projects ## Year Ended December 31, 2025 Page 263 of 401 128 ## (THIS PAGE LEFT BLANK INTENTIONALLY) Page 264 of 401 129 ## City of Edina ## Nonmajor Proprietary Funds ## Enterprise Funds Enterprise funds account for the financing of self-supporting activities of governmental unites which render services to the general public on a user charge basis. The following are nonmajor enterprise funds: ## Art Center Fund This fund accounts for activities related to the City's Art Center. ## Edinborough Park Fund This fund accounts for activities related to Edinborough Park. ## Centennial Lakes Fund This fund accounts for activities related to Centennial Lakes Park. ## Braemar Field Fund This fund accounts for activities related to the Sports Dome. Page 265 of 401 130 ## Art Center ## Edinborough ## Park ## Centennial ## LakesBraemar Field ## Total ## Nonmajor ## Proprietary ## Funds ## Assets Current assets Cash and investments 206,592$ -$ 1,016,019$ 1,540,116$ 2,762,727$ Interest receivable250 - 2,871 11,235 14,356 Accounts receivable4,888 206,155 58,802 4,277 274,122 Total current assets211,730 206,155 1,077,692 1,555,628 3,051,205 Noncurrent assets Capital assets Net capital assets16,044 1,128,044 1,588,601 3,967,066 6,699,755 Total assets227,774 1,334,199 2,666,293 5,522,694 9,750,960 ## Deferred Outflows of Resources OPEB deferred outflows7,904 18,645 13,376 - 39,925 Pension deferred outflows13,904 73,278 46,616 15,583 149,381 Total deferred outflows of resources21,808 91,923 59,992 15,583 189,306 ## Liabilities Current liabilities Accounts payable7,724 48,790 134,612 30,507 221,633 Salaries and benefits payable16,668 80,155 58,137 14,279 169,239 Due to other funds- 394,618 - - 394,618 Due to other governments- 7,008 5,852 931 13,791 Unearned revenue1,648 8,862 11,660 - 22,170 Compensated absences20,408 47,200 18,353 1,344 87,305 Total OPEB liability4701,108795- 2,373 Total current liabilities46,918 587,741 229,409 47,061 911,129 Noncurrent liabilities Compensated absences30,612 70,800 27,530 2,015 130,957 Total OPEB liability19,093 45,039 32,311 - 96,443 Net pension liability54,361 286,504 182,262 60,928 584,055 Total noncurrent liabilities104,066 402,343 242,103 62,943 811,455 Total liabilities150,984 990,084 471,512 110,004 1,722,584 ## Deferred Inflows of Resources OPEB deferred inflows6,798 16,035 11,504 - 34,337 Pension deferred inflows36,715 193,502 123,098 41,150 394,465 Total deferred intflows of resources43,513 209,537 134,602 41,150 428,802 ## Net Position Net investment in capital assets16,044 1,128,044 1,588,601 3,967,066 6,699,755 Unrestricted39,041 (901,543) 531,570 1,420,057 1,089,125 Total net position55,085$ 226,501$ 2,120,171$ 5,387,123$ 7,788,880$ ## City of Edina ## Combining Statement of Net Position - Nonmajor Proprietary Funds December 31, 2025 Page 266 of 401 131 ## Art Center ## Edinborough ## Park ## Centennial ## Lakes ## Braemar Field ## Total ## Nonmajor ## Proprietary ## Funds ## Operating Revenues Sales - retail - $ 5,241 $ - $ - $ 5,241 $ Sales - concessions - 72,311 50,530 - 122,841 ## Memberships - 140,717 - 30,996 171,713 ## Admissions - 758,273 - - 758,273 Building rental - 218,295 86,148 494,310 798,753 Rental of equipment - - 437,326 - 437,326 Greens fees - - 316,737 - 316,737 Class registration and other fees 137,911 216,196 315,394 288 669,789 Total operating revenues 137,911 1,411,033 1,206,135 525,594 3,280,673 ## Operating Expenses Cost of sales and services - 31,924 16,161 - 48,085 Personal services 279,013 1,217,225 869,625 250,366 2,616,229 Contractual services 62,572 404,106 388,078 258,241 1,112,997 ## Commodities 20,616 133,764 144,291 5,620 304,291 ## Internal Services 53,639 180,095 147,321 37,410 418,465 ## Depreciation 3,780 266,986 165,357 528,577 964,700 Total operating expenses 419,620 2,234,100 1,730,833 1,080,214 5,464,767 Operating income (loss) (281,709) (823,067) (524,698) (554,620) (2,184,094) ## Nonoperating Revenues (Expenses) Investment income 3,220 8,728 19,828 88,434 120,210 Gain (loss) on sale of capital assets - - 5,002 - 5,002 ## Donations 8,891 - 26,701 - 35,592 ## Miscellaneous 7,035 - - - 7,035 Total nonoperating revenue (expenses) 19,146 8,728 51,531 88,434 167,839 Income before transfers (262,563) (814,339) (473,167) (466,186) (2,016,255) ## Transfers In 301,672 17,928 769,922 1,355 1,090,877 Change in net position 39,109 (796,411) 296,755 (464,831) (925,378) ## Net Position - Beginning 15,976 1,022,912 1,823,416 5,851,954 8,714,258 Net position - ending 55,085 $ 226,501 $ 2,120,171 $ 5,387,123 $ 7,788,880 $ ## City of Edina ## Combining Statement of Revenues, Expenses, and Changes ## in Net Position - Nonmajor Proprietary Funds ## For the Year Ended December 31, 2025 Page 267 of 401 132 ## Art Center ## Edinborough ## Park ## Centennial ## LakesBraemar Field ## Total Nonmajor ## Proprietary ## Funds ## Cash Flows - Operating Activities Receipts from customers and users136,088$ 1,316,406$ 1,207,118$ 526,518$ 3,186,130$ Payments to suppliers(140,846) (801,124) (606,989) (313,611) (1,862,570) Payments to employees(294,306) (1,221,354) (932,906) (249,035) (2,697,601) Net cash flows - operating activities(299,064) (706,072) (332,777) (36,128) (1,374,041) ## Cash Flows - Noncapital ## Financing Activities Grants and contributions15,926 - 26,701 - 42,627 Change in due to other funds- 394,618 - - 394,618 Transfer from other funds301,672 17,928 769,922 1,355 1,090,877 Net cash flows - noncapital financing activities317,598 412,546 796,623 1,355 1,528,122 ## Cash Flows - Capital and Related ## Financing Activities Interest paid on debt- - (1,308) - (1,308) Proceeds from disposal of capital assets - - 5,002 - 5,002 Net cash flows - capital and related financing activities- - 3,694 - 3,694 ## Cash Flows - Investing Activities Interest and dividends received3,201 11,730 19,420 89,553 123,904 Net change in cash and cash equivalents21,735 (281,796) 486,960 54,780 281,679 Cash and cash equivalents, January 1184,857 281,796 529,059 1,485,336 2,481,048 Cash and cash equivalents, December 31206,592$ -$ 1,016,019$ 1,540,116$ 2,762,727$ ## Reconciliation of Operating ## Income (Loss) to Net Cash ## Flows - Operating Activities Operating income (loss)(281,709)$ (823,067)$ (524,698)$ (554,620)$ (2,184,094)$ Adjustments to reconcile operating income (loss) to net cash flows - operating activities Depreciation expense3,780 266,986 165,357 528,577 964,700 Accounts receivable(1,219) (94,725) 1,716 934 (93,294) Due from other governments(604) 98 (733) (10) (1,249) Prepaid items- - 1,982 - 1,982 Accounts payable(3,960) (47,942) 87,195 (2,260) 33,033 Due to other governmental units(59) (3,293) (315) (10,080) (13,747) Salaries payable2,371 2,865 11,101 2,044 18,381 ## OPEB1,899 4,478 3,214 - 9,591 Pension related activity(23,220) (14,916) (77,425) (1,424) (116,985) Compensated absences payable3,657 3,444 (171) 711 7,641 Total adjustments(17,355) 116,995 191,921 518,492 810,053 Net cash flows - operating activities(299,064)$ (706,072)$ (332,777)$ (36,128)$ (1,374,041)$ ## City of Edina ## Combining Statement of Cash Flows - Nonmajor Proprietary Funds ## Year Ended December 31, 2025 Page 268 of 401 133 ## City of Edina ## Fiduciary Funds ## Custodial Funds Custodial funds are used to report resources held by the City in a purely custodial capacity. The following are custodial funds: ## Police Seizure Fund This fund accounts for assets seized by the Police Department. ## Public Safety Training Facility This fund accounts for assets and liabilities of the South Metro Public Safety Training Facility, which is a joint venture that the City has fiduciary responsibilities for. ## Minnesota Task Force 1 This fund accounts for assets and liabilities of the Minnesota Task Force 1, which is comprised of personnel and equipment from public safety and specialist personnel from supporting entities that operates as part of a joint powers agreement that the City has administrative responsbilities for. Page 269 of 401 134 ## Police Seizure ## Public Safety ## Training ## Facility ## Minnesota Task Force 1 ## Total ## Assets Cash and investments 3,541 $ 287,259 $ - $ 290,800 $ Accounts receivable - 11 - 11 Due from other governments - 83,196 817,288 900,484 Total assets 3,541 370,466 817,288 1,191,295 ## Liabilities Cash overdraft - - 519,320 519,320 Accounts payable - 49,246 - 49,246 Salaries payable - 14,256 12,027 26,283 Due to other governments - 321 206,933 207,254 Unearned revenue - 5,087 - 5,087 Total liabilities - 68,910 738,280 807,190 ## Net Position Held in custody for other governmental units 3,541 $ 301,556 $ 79,008 $ 384,105 $ ## Police Seizure ## Public Safety ## Training ## Facility ## Minnesota Task Force 1 ## Total ## Additions Collections on behalf of others - $ 1,137,920 $ 1,610,752 $ 2,748,672 $ ## Deductions Payments on behalf of others - 1,065,102 1,565,872 2,630,974 Change in net position - 72,818 44,880 117,698 ## Net Position Beginning of year 3,541 228,738 34,128 266,407 End of year 3,541 $ 301,556 $ 79,008 $ 384,105 $ ## Combining Statement of Changes Fiduciary Net Position ## Year Ended December 31, 2025 ## City of Edina ## Combining Statement of Fiduciary Net Position December 31, 2025 ## City of Edina ## Custodial Funds ## Custodial Funds Page 270 of 401 135 ## Centennial ## District No. 1203 Southdale 2 ## District No. 1208 ## Pentagon Park ## District No. 1211 Grandview 2 ## District No. 1212 and 1213 66th West ## District No. 1214 50th and France 2 District No. 1215 44th and France 2 District No. 1216 ## West 76th Street ## District No. 1217 ## Amundson ## Avenue District No. 1219 ## Eden/Wilson ## District No. 1222 ## Total ## Assets Cash and investments 796,984 $ 6,423,200 $ 3,546,506 $ 1,764,354 $ 21,134 $ 630,009 $ 177,093 $ 25,520 $ 161,188 $ 830,244 $ 14,376,232 $ Accrued interest 13,107 43,815 16,103 1,748 9,237 374 999 125 125 1,388 87,021 Loans receivable - 5,669,809 - - - - - - - - 5,669,809 Due from other districts 5,850,000 169,037 - - - - - - - - 6,019,037 Due from other governments - - 137,063 - - - - - - - 137,063 Total assets 6,660,091 $ 12,305,861 $ 3,699,672 $ 1,766,102 $ 30,371 $ 630,383 $ 178,092 $ 25,645 $ 161,313 $ 831,632 $ 26,289,162 $ ## Liabilities Accounts payable - $ - $ 274,882 $ - $ - $ 404,928 $ 126,954 $ 15,129 $ - $ 214,537 $ 1,036,430 $ Due to other districts - - - 500,000 169,037 4,150,000 - - - 1,200,000 6,019,037 Due to other governments - 100,000 4,519 2,202 590 2,190 1,100 637 640 138,277 250,155 Salaries and benefits payable - - 2,271 226 - 445 226 - - 2,045 5,213 Unearned revenue 13,000 - - - - - - - - - 13,000 Total liabilities 13,000 100,000 281,672 502,428 169,627 4,557,563 128,280 15,766 640 1,554,859 7,323,835 ## Fund Balances ## Restricted 6,647,091 12,205,861 3,418,000 1,263,674 (139,256) (3,927,180) 49,812 9,879 160,673 (723,227) 18,965,327 Total liabilities and fund balances 6,660,091 $ 12,305,861 $ 3,699,672 $ 1,766,102 $ 30,371 $ 630,383 $ 178,092 $ 25,645 $ 161,313 $ 831,632 $ 26,289,162 $ ## City of Edina ## Schedule of Balance Sheet Accounts - ## Tax Increment Financing Districts December 31, 2025 Page 271 of 401 136 ## Centennial ## District No. 1203 Southdale 2 ## District No. 1208 ## Pentagon Park ## District No. 1211 Grandview 2 ## District No. 1212 and 1213 66th West ## District No. 1214 50th and France 2 ## District No. 1215 44th and France 2 ## District No. 1216 West 76th ## Street District No. 1217 ## Amundson ## Avenue District No. 1219 ## Eden/Wilson ## District No. 1222 ## Total ## Revenues Tax increments - $ - $ 2,092,482 $ 583,264 $ 10,511 $ 899,840 $ 282,120 $ 33,621 $ 30,326 $ 885,238 $ 4,817,402 $ Investment income 102,646 341,845 102,082 37,980 46,914 5,038 6,143 902 1,980 45,804 691,334 Total revenues 102,646 341,845 2,194,564 621,244 57,425 904,878 288,263 34,523 32,306 931,042 5,508,736 ## Expenditures ## Current General government 29,383 100,000 589,219 29,467 591 843,286 267,943 32,208 641 688,501 2,581,239 Capital outlay General government - - - - - - - - - 1,134,638 1,134,638 ## #REF! Total expenditures 29,383 100,000 589,219 29,467 591 843,286 267,943 32,208 641 1,823,139 3,715,877 Excess of revenues over (under) expenditures 73,263 241,845 1,605,345 591,777 56,834 61,592 20,320 2,315 31,665 (892,097) 1,792,859 ## Other Financing Sources (Uses) Transfers out - - - (466,450) - - - - - (119,898) (586,348) Total other financing sources (uses) - - - (466,450) - - - - - (119,898) (586,348) Net change in fund balances 73,263 241,845 1,605,345 125,327 56,834 61,592 20,320 2,315 31,665 (1,011,995) 1,206,511 ## Fund Balances Beginning of year 6,573,828 11,964,016 1,812,655 1,138,347 (196,090) (3,988,772) 29,492 7,564 129,008 288,768 17,758,816 End of year 6,647,091 $ 12,205,861 $ 3,418,000 $ 1,263,674 $ (139,256) $ (3,927,180) $ 49,812 $ 9,879 $ 160,673 $ (723,227) $ 18,965,327 $ ## City of Edina ## Schedule of Revenues, Expenditures, and Changes in Fund Balances - ## Tax Increment Financing Districts ## Year Ended December 31, 2025 Page 272 of 401 137 ## STATISTICAL SECTION Page 273 of 401 138 ## (THIS PAGE LEFT BLANK INTENTIONALLY) Page 274 of 401 139 ## City of Edina ## Statistical Section (Unaudited) This part of the City of Edina's a n n u a l comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. ## Financial Trends These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time. ## Table 1 – Net Position by Component ## Table 2 – Changes in Net Position ## Table 3 – Fund Balances of Governmental Funds ## Table 4 – Changes in Fund Balances of Governmental Funds ## Revenue Capacity These schedules contain information to help the reader assess the government's most significant local revenue source, property taxes. Table 5 – Taxable and Estimated Market Values of Taxable Property Table 6 – Property Tax Rates – Direct and Overlapping Governments ## Table 7 – Principal Property Taxpayers ## Table 8 – Property Tax Levies and Collations ## Debt Capacity These schedules present information to help the reader assess the affordability of the government's current level of outstanding debt and the government's ability to issue additional debt in the future. ## Table 9 – Legal Debt Margin Information ## Table 10 – Ratios of Outstanding Debt by Type ## Table 11 – Ratios of General Bonded Debt Outstanding ## Table 12 – Direct and Overlapping Governmental Activities Debt ## Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. ## Table 13 – Demographic and Economic Statistics ## Table 14 – Principal Employers ## Table 15 – Full-Time City Government Employees by Function ## Table 16 – Operating Indicators by Function ## Table 17 – Capital Asset Statistics by Function Page 275 of 401 140 Table 1 20162017 2018 a 2019202020212022202320242025 ## Governmental Activities ## Net Investment in Capital Assets 93,247,973$ 96,149,011$ 107,133,225$ 110,670,335$ 117,052,475$ 116,754,295$ 102,453,359$ 112,750,230$ 131,971,012$ 161,526,746$ ## Restricted 20,892,680 22,840,869 25,017,586 36,999,647 60,063,244 76,262,266 70,035,114 67,750,386 88,258,611 91,216,438 ## Unrestricted 22,146,168 26,412,441 31,277,308 27,680,337 16,475,796 15,308,966 29,841,435 32,417,853 15,417,004 21,311,659 ## Total Governmental ## Activities Net Position 136,286,821$ 145,402,321$ 163,428,119$ 175,350,319$ 193,591,515$ 208,325,527$ 202,329,908$ 212,918,469$ 235,646,627$ 274,054,843$ ## Business-Type Activities ## Net Investment in Capital Assets 85,158,869$ 82,338,560$ 81,980,815$ 80,452,583$ 81,135,647$ 86,975,121$ 90,405,666$ 96,982,508$ 102,429,959$ 107,715,617$ ## Restricted 804,393 1,338,276 1,360,336 1,360,336 1,268,479 1,225,093 - 1,245,001 1,243,768 1,241,704 ## Unrestricted 17,300,872 22,443,806 27,285,949 32,045,171 33,086,023 32,253,873 43,289,552 43,770,784 48,450,455 54,320,092 ## Total Business-Type ## Activities Net Position 103,264,134$ 106,120,642$ 110,627,100$ 113,858,090$ 115,490,149$ 120,454,087$ 133,695,218$ 141,998,293$ 152,124,182$ 163,277,413$ ## Primary Government ## Net Investment in Capital Assets 178,406,842$ 178,487,571$ 189,114,040$ 191,122,918$ 198,188,122$ 203,729,416$ 192,859,025$ 209,732,738$ 234,400,971$ 269,242,363$ ## Restricted 21,697,073 24,179,145 26,377,922 38,359,983 61,331,723 77,487,359 70,035,114 68,995,387 89,502,379 92,458,142 ## Unrestricted 39,447,040 48,856,247 58,563,257 59,725,508 49,561,819 47,562,839 73,130,987 76,188,637 63,867,459 75,631,751 ## Total Primary Government ## Net Position 239,550,955$ 251,522,963$ 274,055,219$ 289,208,409$ 309,081,664$ 328,779,614$ 336,025,126$ 354,916,762$ 387,770,809$ 437,332,256$ a The City implemented GASB 75 in fiscal year 2018. Prior year information has not been restated as a result of this change in accounting principle. ## City of Edina ## Net Position by Component ## Last Ten Fiscal Years (accrual basis of accounting) ## Fiscal Year Page 276 of 401 141 Table 2 20162017 2018 a 2019 2020 b 20212022202320242025 ## Expenses ## Governmental Activities: General Government9,587,567$ 9,164,272$ 10,964,266$ 11,252,538$ 11,698,533$ 14,844,785$ 19,199,880$ 19,505,673$ 19,817,993$ 13,080,465$ Public Safety20,243,209 21,815,101 20,971,184 27,496,563 27,058,719 24,288,956 29,290,638 32,790,034 32,565,377 35,649,598 Public Works19,444,472 17,750,505 14,170,463 10,979,180 16,117,060 11,497,445 23,018,094 18,755,764 17,270,199 20,630,137 Parks3,822,716 4,222,431 7,235,405 7,554,919 6,798,866 7,365,756 7,928,925 8,354,807 9,035,898 10,217,789 Interest on Long-Term Debt2,133,474 1,996,354 1,726,901 1,999,318 1,561,462 1,282,299 1,709,865 2,058,881 1,993,206 4,457,837 Total Governmental Activities Expenses55,231,438 54,948,663 55,068,219 59,282,518 63,234,640 59,279,241 81,147,402 81,465,159 80,682,673 84,035,826 ## Business-Type Activities: Water16,780,474 17,361,659 18,045,516 19,303,212 9,592,913 9,094,274 7,449,657 7,500,796 6,908,508 7,630,315 Sewer- - - - 7,641,660 7,690,708 8,612,892 9,155,586 9,258,115 10,022,477 Stormwater- - - - 3,424,049 3,146,475 2,735,091 4,031,428 4,597,085 5,115,530 Recycling- - - - 1,392,003 1,956,546 1,838,148 1,671,424 1,884,856 1,810,261 Liquor12,130,254 12,007,885 11,995,159 11,970,986 11,500,971 13,435,305 13,725,070 12,890,487 12,182,004 10,695,186 Aquatic Center915,560 1,015,328 996,671 979,376 386,026 1,052,346 1,218,383 1,336,122 1,411,631 1,376,667 Golf Course3,041,169 3,469,121 2,464,563 4,009,097 4,257,484 4,822,338 5,282,761 5,889,718 5,664,944 5,551,162 Arena2,842,660 2,961,787 2,996,844 2,982,674 2,876,897 2,882,067 3,214,462 3,522,909 3,374,912 3,632,146 Community Activity Centers3,853,091 4,095,309 4,096,452 4,286,773 3,412,784 3,231,622 4,537,612 5,004,952 5,266,795 5,428,159 Total Business-Type Activities Expenses39,563,208 40,911,089 40,595,205 43,532,118 44,484,787 47,311,681 48,614,076 51,003,422 50,548,850 51,261,903 Total Primary Government Expenses94,794,646$ 95,859,752$ 95,663,424$ 102,814,636$ 107,719,427$ 106,590,922$ 129,761,478$ 132,468,581$ 131,231,523$ 135,297,729$ ## Program Revenues ## Governmental Activities: ## Charges for Services: General Government1,453,009$ 1,142,120$ 2,395,535$ 1,204,947$ 4,172,729$ 2,207,889$ 5,873,349$ 1,893,976$ 2,626,044$ 3,541,521$ Public Safety8,996,046 9,627,122 9,978,816 9,747,031 10,152,772 9,970,031 11,909,539 11,324,457 11,224,257 12,547,310 Other Activities1,289,770 1,288,452 1,202,732 1,265,918 1,007,903 1,351,458 1,670,253 1,490,859 1,762,209 2,126,337 Operating Grants and Contributions2,751,495 2,194,336 4,028,247 4,271,243 7,626,236 2,721,724 6,792,587 6,926,971 5,653,563 8,615,771 Capital Grants and Contributions15,252,861 9,775,184 6,695,172 6,625,040 7,318,687 4,030,108 4,943,744 4,673,918 10,997,515 18,093,522 ## Total Governmental Activities Program Revenues29,743,181 24,027,214 24,300,502 23,114,179 30,278,327 20,281,210 31,189,472 26,310,181 32,263,588 44,924,461 ## Business-Type Activities: ## Charges for Services: Water19,505,905 21,361,972 22,697,468 21,875,655 9,236,665 10,302,974 12,717,867 12,483,445 12,108,941 13,473,414 Sewer- - - - 10,622,411 10,732,193 12,706,062 10,438,055 11,744,821 12,220,680 Stormwater- - - - 4,773,432 5,207,295 5,389,214 5,934,139 6,349,555 6,937,782 Recycling- - - - 1,148,338 1,447,226 1,485,925 1,584,965 1,740,862 1,763,551 Liquor12,937,092 12,991,764 13,401,754 13,094,407 12,117,414 14,280,055 14,427,474 13,330,018 12,641,168 11,074,302 Aquatic Center956,068 962,857 997,727 996,778 - 1,071,692 1,144,569 1,120,598 1,122,688 1,143,074 Golf Course2,809,702 1,254,412 1,396,173 3,395,815 3,968,529 5,290,109 6,080,771 6,306,176 6,289,801 6,328,908 Arena2,314,892 2,508,192 2,629,945 2,516,629 1,638,011 2,347,678 2,551,853 2,749,483 2,861,737 2,813,362 Community Activity Centers3,190,775 3,348,628 3,303,278 3,240,000 1,499,060 2,106,088 2,979,493 3,123,525 3,377,410 3,314,409 Operating Grants and Contributions445,464 179,086 545,682 44,953 47,780 404,419 271,640 428,035 225,531 210,066 Capital Grants and Contributions- 904,201 - 692,281 396,103 - - - - 54,999 ## Total Business-Type Activities Program Revenues42,159,898 43,511,112 44,972,027 45,856,518 45,447,743 53,189,729 59,754,868 57,498,439 58,462,514 59,334,547 ## Total Primary Government Program Revenues71,903,079$ 67,538,326$ 69,272,529$ 68,970,697$ 75,726,070$ 73,470,939$ 90,944,340$ 83,808,620$ 90,726,102$ 104,259,008$ ## Net (Expense) Revenue Governmental Activities(25,488,257)$ (30,921,449)$ (30,767,717)$ (36,168,339)$ (32,956,313)$ (38,998,031)$ (49,957,930)$ (55,154,978)$ (48,419,085)$ (39,111,365)$ Business-Type Activities2,596,690 2,600,023 4,376,822 2,324,400 962,956 5,878,048 11,140,792 6,495,017 7,913,664 8,072,644 Total Primary Government Net Expense(22,891,567)$ (28,321,426)$ (26,390,895)$ (33,843,939)$ (31,993,357)$ (33,119,983)$ (38,817,138)$ (48,659,961)$ (40,505,421)$ (31,038,721)$ ## General Revenues and Other Changes ## in Net Position ## Governmental Activities: Property Taxes31,396,421$ 33,665,029$ 35,616,432$ 37,133,269$ 39,545,279$ 41,826,967$ 45,074,974$ 49,210,670$ 53,412,154$ 57,829,251$ Tax Increment Collections2,779,097 3,422,898 4,997,706 5,447,108 6,452,819 8,295,756 1,720,243 2,078,687 3,176,176 4,817,402 Franchise Taxes2,346,423 2,408,884 2,559,443 2,881,726 3,071,392 3,090,322 3,071,551 3,111,525 3,322,639 3,652,054 Lodging Taxes22,624 21,006 25,298 24,119 8,313 17,214 25,751 28,675 30,240 31,552 General Sales Tax- - - - - - - 5,501,492 6,537,828 7,427,094 Unrestricted Investment Earnings344,277 514,073 901,405 2,037,306 1,835,870 (372,080) (2,903,247) 5,324,618 3,949,750 6,388,002 Gain on Disposal of Capital Assets65,044 - 5,032,815 408,659 - 101,404 53,576 124,585 394,009 262,622 Transfers99,573 5,059 305,428 158,352 283,836 772,460 (3,080,537) 363,287 40,144 (101,688) Total Governmental Activities37,053,459 40,036,949 49,438,527 48,090,539 51,197,509 53,732,043 43,962,311 65,743,539 70,862,940 80,306,289 ## Business-Type Activities: Lodging Taxes- - - - - - - - 4,875 - Unrestricted Investment Earnings136,208 254,990 481,754 1,064,942 945,580 (141,650) (980,198) 2,142,983 1,830,869 2,959,530 Gain (Loss) on Disposal of Capital Assets35,946 6,554 - - 7,359 - - 28,362 52,607 19,369 Transfers(99,573) (5,059) (305,428) (158,352) (283,836) (772,460) 3,080,537 (363,287) (40,144) 101,688 Total Business-Type Activities72,581 256,485 176,326 906,590 669,103 (914,110) 2,100,339 1,808,058 1,848,207 3,080,587 Total Primary Government37,126,040$ 40,293,434$ 49,614,853$ 48,997,129$ 51,866,612$ 52,817,933$ 46,062,650$ 67,551,597$ 72,711,147$ 83,386,876$ ## Change in Net Position Governmental Activities11,565,202$ 9,115,500$ 18,670,810$ 11,922,200$ 18,241,196$ 14,734,012$ (5,995,619)$ 10,588,561$ 22,443,855$ 41,194,924$ Business-Type Activities2,669,271 2,856,508 4,553,148 3,230,990 1,632,059 4,963,938 13,241,131 8,303,075 9,761,871 11,153,231 Total Primary Government14,234,473$ 11,972,008$ 23,223,958$ 15,153,190$ 19,873,255$ 19,697,950$ 7,245,512$ 18,891,636$ 32,205,726$ 52,348,155$ a The City completed a major departmental reorganization in 2018, moving parks maintenance activities from public works to parks. The City also implemented GASB 75 in fiscal year 2018. Prior year information has not been restated as a result of either change. b The City broke out the various functions within the utilities fund for the first time in 2020. Prior year information has not been restated. ## City of Edina ## Changes in Net Position ## Last Ten Fiscal Years (accrual basis of accounting) ## Fiscal Year Page 277 of 401 142 Table 3 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 ## General Fund ## Nonspendable 27,643 $ 13,124 $ - $ 28,403 $ 28,403 $ 85,083 $ 80,509 $ 96,823 $ 157,932 $ 168,043 $ ## Restricted 927,673 961,133 961,133 58,086 58,086 58,086 58,086 58,086 58,086 48,430 ## Assigned 1,612,240 1,739,079 2,105,741 2,093,760 6,679,877 5,627,113 5,592,639 5,684,253 5,247,146 4,494,920 ## Unassigned 14,624,755 15,656,518 16,812,851 16,411,412 20,476,747 18,003,259 19,904,228 21,240,417 25,474,747 31,253,577 ## Total General Fund 17,192,311 $ 18,369,854 $ 19,879,725 $ 18,591,661 $ 27,243,113 $ 23,773,541 $ 25,635,462 $ 27,079,579 $ 30,937,911 $ 35,964,970 $ ## All Other Governmental ## Funds ## Nonspendable - $ - $ - $ - $ - $ 71,784 $ 1,479 $ 2,196 $ 12,960 $ 10,832 $ ## Restricted, Reported in ## Special Revenue Funds 12,673,995 14,453,556 14,755,259 18,653,029 26,862,127 42,538,152 37,788,867 33,803,725 39,512,182 40,121,667 ## Debt Service Funds 11,187,468 17,000,806 7,871,858 8,341,996 9,727,306 11,178,492 6,702,038 6,724,091 24,354,318 7,640,287 ## Construction Funds 209,510 78,702 30,072 - - - - 3,419,009 46,999,685 59,846,146 ## Assigned, Reported in: ## Capital Projects Funds 13,109,438 15,710,621 19,726,343 21,927,249 19,634,745 25,778,679 29,480,869 33,553,682 9,399,794 10,837,047 ## Unassigned, Reported in ## Special Revenue Funds (190,845) - - - (50,610) - - - (95,754) (401,623) ## Total all Other Governmental ## Funds 36,989,566 $ 47,243,685 $ 42,383,532 $ 48,922,274 $ 56,173,568 $ 79,567,107 $ 73,973,253 $ 77,502,703 $ 120,183,185 $ 118,054,356 $ ## City of Edina ## Fund Balances of Governmental Funds ## Last Ten Fiscal Years (modified accrual basis of accounting) ## Fiscal Year Page 278 of 401 143 Table 4 2016201720182019202020212022202320242025 ## Revenues General Property Taxes31,354,023$ 33,696,550$ 35,613,883$ 37,093,074$ 39,509,239$ 41,796,463$ 45,096,245$ 49,156,931$ 53,549,123$ 57,822,395$ Tax Increment Collections2,779,097 3,422,898 4,997,706 5,447,108 6,452,819 8,295,756 1,720,243 2,078,687 3,176,176 4,817,402 Franchise Taxes2,346,423 2,408,884 2,559,443 2,881,726 3,071,392 3,090,322 3,071,551 3,111,525 3,322,639 3,652,054 Lodging Fees22,624 21,006 25,298 24,119 8,313 17,214 25,751 28,675 30,240 31,552 General Sales Tax- - - - - - - 5,450,871 6,537,828 7,427,094 Special Assessments5,276,194 5,330,766 4,747,205 4,741,557 4,629,551 4,130,703 4,426,156 3,609,885 4,761,838 4,854,785 License and Permits5,268,519 5,403,222 5,912,757 5,183,754 6,454,749 6,077,446 7,482,098 5,716,734 6,011,119 6,843,434 Intergovernmental5,775,114 3,687,262 5,124,573 3,687,620 11,218,739 3,321,222 6,459,627 7,718,968 6,147,909 25,364,284 Charges for Services4,689,389 4,917,173 4,898,548 5,431,941 4,968,288 5,980,258 6,254,411 7,121,548 7,969,574 7,854,660 Fines and Forfeitures1,016,817 1,135,986 1,122,426 1,097,122 485,472 460,914 359,680 488,872 621,837 773,992 Investment Income344,344 512,448 889,550 1,989,881 1,835,870 (372,080) (2,903,247) 5,324,618 3,949,750 6,388,002 Rental of Property514,955 459,099 632,011 487,797 479,148 491,579 711,100 34,017 465,411 615,976 Parkland Dedication1,250,000 33,460 - - - - - - - - Other Revenues2,599,830 761,281 990,277 600,905 3,069,269 704,558 4,737,252 975,653 635,253 2,415,545 Total Revenues63,237,329 61,790,035 67,513,677 68,666,604 82,182,849 73,994,355 77,440,867 90,816,984 97,178,697 128,861,175 ## Expenditures General Government6,815,725 7,065,729 8,630,290 8,973,194 8,577,452 12,236,821 17,968,839 14,514,601 14,666,367 13,978,947 Public Safety18,554,507 19,233,386 20,323,076 21,701,254 25,612,596 25,694,255 26,526,855 28,873,158 30,266,189 33,782,488 Public Works10,474,008 11,524,896 8,682,928 8,998,768 8,843,557 10,718,078 11,502,009 12,807,448 13,214,290 13,173,866 Parks1,529,384 1,695,397 5,202,962 5,453,778 4,878,372 5,917,562 6,471,305 6,887,573 7,471,126 8,166,870 Capital Outlay16,787,575 11,053,212 19,752,836 18,558,023 13,056,078 12,203,492 29,567,796 26,544,647 36,473,132 49,486,525 ## Debt Service: Principal5,246,375 5,496,375 5,523,369 5,778,476 5,865,000 8,326,000 9,247,829 4,642,939 5,225,676 22,734,750 Interest and Other Charges2,360,827 2,359,551 2,099,594 1,923,526 2,007,730 1,892,346 2,048,560 2,828,936 2,749,901 4,328,375 Total Expenditures61,768,401 58,428,546 70,215,055 71,387,019 68,840,785 76,988,554 103,333,193 97,099,302 110,066,681 145,651,821 ## Revenues Over (Under) Expenditures1,468,928 3,361,489 (2,701,378) (2,720,415) 13,342,064 (2,994,199) (25,892,326) (6,282,318) (12,887,984) (16,790,646) ## Other Financing Sources (Uses) Utility Contributions from Other Funds- - 37,978 115,494 - - - - - - Transfers In3,504,542 5,130,405 5,464,771 6,738,864 6,260,386 8,408,356 3,823,898 4,775,548 4,086,582 3,860,308 Transfers Out(3,404,969) (5,057,263) (5,139,771) (6,604,736) (5,976,550) (7,639,656) (3,515,998) (4,429,444) (4,064,122) (3,984,644) Sale of Capital Assets65,044 84,388 6,201,630 1,172,391 251,670 3,000,821 106,406 77,700 394,009 262,622 Loans Issued- - - 750,000 - - - - - - Bonds Issued3,940,000 1,995,000 2,210,000 5,000,000 1,991,000 16,820,000 29,610,000 1,180,000 55,620,000 21,360,000 Refunding Bonds Issued3,635,000 8,955,000 - - - - - - - - Premium on Bonds Issued450,409 798,791 74,787 799,080 34,176 2,329,645 1,691,560 95,608 3,390,329 977,298 Discount on Bonds Issued(16,805) (51,148) (18,299) - - - - - - - Payment to Refunding Escrow- (3,785,000) (9,480,000) - - - - - - - ## Total Other Financing Sources (Uses)8,173,221 8,070,173 (648,904) 7,971,093 2,560,682 22,919,166 31,715,866 1,699,412 59,426,798 22,475,584 Net Change in Fund Balances 9,642,149$ 11,431,662$ (3,350,282)$ 5,250,678$ 15,902,746$ 19,924,967$ 5,823,540$ (4,582,906)$ 46,538,814$ 5,684,938$ Debt Service as a Percentage of ## Noncapital Expenditures16.2%15.9%14.6%13.8%13.2%15.6%15.2%10.2%10.8%28.2% ## Fiscal YearFiscal Year ## City of Edina ## Changes in Fund Balances of Governmental Funds ## Last Ten Fiscal Years (modified accrual basis of accounting) Page 279 of 401 144 Table 5 ## City TaxCity ## UsedAdjustedCapacityReferendum ## EstimatedLimitedTaxableTotalfor RateNetRateRate 10,420,339$ 10,420,339$ 10,296,342$ 125,664$ 112,491$ 115,128$ 27.137%0.00550%2.998 10,902,621 10,902,621 10,785,198 132,180 116,854 119,756 28.271%0.00000%3.105 11,655,318 11,655,318 11,547,520 141,934 125,242 128,453 27.849%0.00000%3.069 12,370,205 12,370,205 12,271,673 151,279 132,609 136,083 27.499%0.00000%3.025 12,879,164 12,879,164 12,785,798 157,910 137,611 141,311 28.082%0.00000%3.081 13,344,357 13,344,357 13,255,470 164,716 141,273 145,322 28.939%0.00000%3.151 13,796,381 13,796,381 13,713,197 169,928 151,491 155,998 29.947%0.00000%3.386 15,461,411 15,461,411 15,386,401 190,473 172,188 176,690 28.056%0.00000%3.206 16,647,041 16,647,041 16,576,598 205,646 185,733 190,715 28.412%0.00000%3.255 17,218,965 17,218,965 17,105,865 211,470 189,264 194,635 30.236%0.00000%3.418 a Property in the City is assessed annually. Assessed value is equal to market value, although taxable value may be different, as shown. The City receives reports from Hennepin County showing total market value, but not separated by property classification. b This value is estimated by the City Finance Department by taking City taxes as a rate of estimated market value (rate per $1,000 of assessed value). The property tax system in Minnesota uses a tax capacity system whereby each parcel is assigned a tax capacity based on taxable value and class. In Minnesota, local taxes are usually expressed as a percentage of this calculated tax capacity (see column titled "City Tax Capacity Rate"). Therefore, this rate is only theoretical and shown for comparative purposes only. Source: Hennepin County Taxpayer Services. ## City of Edina ## Assessed Value, Actual Value and Tax Capacity of Taxable Property ## Last Ten Fiscal Years 2019 2018 2021 ## Year 2016 2017 2020 2025 2024 2023 2022 ## Estimated ## Rate b ## Market Value (In Thousands) a ## Tax Capacity (In Thousands) ## FiscalDirect Page 280 of 401 145 Table 6 ## Total ## BasicDebtHRATotal TaxDirect and ## RateRateRateCapacityRMVHennepinTax Cap.RMVOtherOverlap 23.223%3.914%0.000%27.137%0.006%45.356%34.898%0.201%11.254%118.645% 24.348%3.841%0.082%28.271%0.000%44.087%34.798%0.188%11.057%118.213% 24.187%3.564%0.098%27.849%0.000%42.808%30.972%0.222%10.667%112.296% 23.992%3.388%0.119%27.499%0.000%41.861%30.589%0.210%9.714%109.663% 24.690%3.255%0.137%28.082%0.000%41.084%30.589%0.219%9.330%109.085% 26.264%2.515%0.160%28.939%0.000%38.210%31.474%0.211%8.833%107.456% 26.863%2.073%0.152%29.088%0.000%38.535%29.975%0.219%8.830%106.428% 26.229%1.827%0.138%28.194%0.000%34.542%28.093%0.222%7.879%98.708% 26.591%1.821%0.132%28.544%0.000%34.681%28.248%0.205%7.733%99.206% 27.468%2.768%0.134%30.370%0.000%37.081%29.110%0.204%8.411%104.972% ## RMV: Referendum Market Value Geographic boundaries for overlapping district are not identical to the City's boundaries. City boundaries contain six different school districts but only ISD #273 is shown here. Other districts include Mosquito Control, Met Council, Metro Transit, Hennepin Parks, Park Museum and Regional Railroad Authority. In addition, there are two watershed districts in the City, Nine Mile Creek and Minnehaha Creek, and rates for Nine Mile are included in Other. Total rates do not include RMV rates. Source: Hennepin County Taxpayer Services. ## City of Edina ## Direct and Overlapping Tax Capacity Rates ## Last Ten Fiscal Years 2019 ## City RatesOverlapping Rates ## ISD #273 EdinaFiscal ## Year 2018 2016 2017 2025 2024 2023 2021 2020 2022 Page 281 of 401 146 Table 7 ## Percentage ## Percentage of Total of Total ## Tax Capacity ## Rank ## Capacity ## Tax Capacity ## Rank ## Capacity ## Galleria Shopping Center 3,176,910 $ 1 1.50% 2,257,995 $ 2 1.80% ## Southdale Shopping Center 2,669,250 2 1.26% 2,727,650 1 2.17% ## Centennial Lakes Office 2,382,374 3 1.13% ## DNA ## DNA ## DNA ## Centennial Lakes Plaza 1,319,250 4 0.62% ## DNA ## DNA ## DNA ## The Fred 1,236,250 5 0.58% ## DNA ## DNA ## DNA ## Southdale Medical Building 1,209,084 6 0.57% 1,491,755 3 1.19% ## Cedars of Edina 1,202,515 7 0.57% ## DNA ## DNA ## DNA ## The Bower Residences 1,121,250 8 0.53% ## DNA ## DNA ## DNA ## Nolan Mains 949,838 9 0.45% ## DNA ## DNA ## DNA ## 71 France Apartments 916,011 10 0.43% ## DNA ## DNA ## DNA ## Southdale Office Center ## DNA ## DNA ## DNA 906,994 4 0.72% ## Centennial Lakes Retail ## DNA ## DNA ## DNA 859,250 5 0.68% ## Centennial Lakes Phase V ## DNA ## DNA ## DNA 703,404 6 0.56% ## Centennial Lakes Phase IV ## DNA ## DNA ## DNA 689,778 7 0.55% 7700 France ## DNA ## DNA ## DNA 543,365 8 0.43% ## The District ## DNA ## DNA ## DNA 534,756 9 0.43% ## Westin Galleria ## DNA ## DNA ## DNA 507,449 10 0.40% ## Totals 16,182,732 $ 7.65% 11,222,396 $ 8.93% DNA: Data is not available ## Source: City of Edina Assessing Office 2016 2025 ## Taxpayer ## City of Edina ## Principal Property Tax Payers ## Current Year and Nine Years Ago Page 282 of 401 147 Table 8 TotalCollections in ## TaxPercentageSubsequentPercentage ## LevyAmountof LevyYearsAmountof Levy 31,799,123$ 31,383,415$ 98.69%47,887$ 31,431,302$ 98.84% 33,822,369 33,645,085 99.48%(49,937) 33,595,148 99.33% 35,784,777 35,551,096 99.35%(30,283) 35,520,813 99.26% 37,431,021 37,104,274 99.13%71,278 37,175,552 99.32% 39,659,543 39,392,703 99.33%(14,193) 39,378,510 99.29% 42,018,271 41,704,258 99.25%(65,773) 41,638,485 99.10% 45,367,336 45,005,400 99.20%6,557 45,011,957 99.22% 49,855,000 49,423,644 99.13%343,910 49,767,554 99.82% 54,418,565 53,715,582 98.71%347,497 54,063,079 99.35% 59,010,154 57,996,702 98.28%- 57,996,702 98.28% Source: Hennepin County Taxpayer Services. ## City of Edina ## Property Tax Levies and Collections ## Last Ten Fiscal Years ## Total Collections to Date ## Taxes Collected within the ## Fiscal Year of the Levy 2017 ## Payable 2025 2024 2023 2022 2021 2020 2019 2018 2016 Page 283 of 401 148 Table 9 ## General ## Public ## Tax ## Permanent ## EEEP Rec. ## Utility ## Total ## Percentage ## Obligation ## Project ## Increment ## Improvement ## Revenue ## Notes ## Leases ## Subscriptions ## Facility ## Revenue ## Leases ## Primary of Personal ## Per ## Debt ## Revenue ## Bonds ## Revolving ## Bonds ## Payable ## Liability ## Liability ## Bonds ## Bonds ## Payable ## Government ## Income a ## Capita a 28,560 $ 20,395 $ - $ 26,874 $ 28 $ - $ - $ - $ 7,677 $ 36,691 $ - $ 120,225 $ 3.68% 2,321 $ 31,748 19,485 - 26,772 17 - - - 16,946 38,661 - 133,629 3.75% 2,545 20,115 18,434 - 26,415 13 - - - 14,696 36,768 - 116,441 3.35% 2,216 21,211 17,495 - 26,323 - 750 - - 12,423 39,230 - 117,432 3.16% 2,205 18,917 16,363 - 25,559 - 750 - - 12,945 39,618 - 114,152 2.78% 2,134 19,087 14,071 8,293 29,502 - 750 - - 14,241 31,733 - 117,677 3.04% 2,197 43,000 12,976 8,252 28,167 - 750 11 - 10,841 41,025 34 145,057 3.45% 2,684 41,108 11,894 7,935 27,375 - 750 9 365 9,799 46,224 18 145,476 3.20% 2,692 73,418 26,103 13,434 28,475 - 750 6 124 8,736 47,416 638 199,100 4.11% 3,655 73,593 24,889 13,087 28,660 - 750 3 534 7,647 52,554 465 202,181 3.96% 3,690 Details regarding the City's outstanding debt may be found in the notes to the financial statements. All figures are presented net of related premiums, discounts, and adjustments if applicable. a Population and personal income data from U.S. Census Bureau/Metropolitan Council. 2020 2019 ## City of Edina ## Ratios of Outstanding Debt by Type ## Last Ten Fiscal Years (dollars in thousands, except per capita) ## Governmental Activities ## Business-Type Activities 2025 2024 ## Year ## Fiscal 2018 2016 2017 2023 2022 2021 Page 284 of 401 149 Table 10 ## Less: Amounts ## General ## Available ## Percentage ## Obligation in Debt of Property ## Debt a ## Service Fund b ## Total ## Value c ## Per Capita d 27,935 $ 11,187 $ 16,748 $ 0.16% 323 $ 30,630 17,001 13,629 0.13% 260 19,155 7,872 11,283 0.10% 215 19,905 8,342 11,563 0.09% 217 18,917 9,727 9,190 0.07% 172 19,087 11,178 7,909 0.06% 148 43,000 6,702 36,298 0.26% 672 41,108 6,724 34,384 0.22% 636 73,418 24,354 49,064 0.29% 901 73,593 7,640 65,953 0.38% 1,204 Details regarding the City's outstanding debt may be found in the notes to the financial statements. a Presented net of related premiums, discounts, and adjustments. b This is the amount restricted for debt service principal payments. c See statistical schedule titled "Assessed Value, Actual Value and Tax Capacity of Taxable Property" for estimated property value data. d Population from U.S. Census Bureau/Metropolitan Council. ## City of Edina ## Ratio of General Bonded Debt Outstanding ## Last Ten Fiscal Years (dollars in thousands, except per capita) 2020 2019 ## Year ## Fiscal 2018 2016 2017 2025 2024 2023 2022 2021 Page 285 of 401 150 Table 11 ## Net General ## Percentage ## Obligation Bonded ## Applicable ## City Share ## Debt Outstanding in City a of Debt ## Overlapping Debt ## Hennepin County 1,210,482,117 $ 7.28% 88,123,098 $ ## Hennepin Suburban Park District 51,775,077 9.80% 5,073,958 ## Hennepin Regional Rail Authority 71,548,562 7.28% 5,208,735 ## School Districts ISD No. 273 (Edina) 145,229,446 99.09% 143,907,858 ISD No. 270 (Hopkins) 119,349,532 8.29% 9,894,076 ISD No. 271 (Bloomington) 163,631,388 0.01% 16,363 ## ISD No. 272 (Eden Prairie) 95,454,751 0.95% 906,820 ISD No. 280 (Richfield) 113,833,182 29.02% 33,034,389 ## ISD No. 283 (St. Louis Park) 228,707,113 0.03% 68,612 ## Metro Council 73,513,264 3.86% 2,837,612 ## Total Overlapping Debt 2,273,524,432 $ 289,071,522 $ ## City of Edina 141,516,571 $ 100.00% 141,516,571 $ ## Total Overlapping and Direct Debt 2,415,041,003 $ 430,588,093 $ ## Ratio of Debt Per Capita (54,785 Population) 7,860 $ ## Ratio of Debt to Estimated Market Valuation of $17,218,965,000 2.50% a The percentage of overlapping debt applicable is estimated using tax capacity. Applicable percentages were estimated by determining the portion of another governmental unit's tax capacity that is within the City's boundaries and dividing it by each unit's total tax capacity. ## Source: Hennepin County Taxpayer Services ## Direct Debt ## Debt Ratios ## City of Edina ## Direct and Overlapping Governmental Activities Debt As of December 31, 2025 Page 286 of 401 151 Table 12 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 ## Debt Limit 308,890 $ 323,556 $ 346,426 $ 368,150 $ 383,574 $ 400,331 $ 413,891 $ 463,842 $ 499,411 $ 516,569 $ ## Total Net Debt ## Applicable to Limit 48,325 50,115 37,595 37,265 33,970 31,705 53,460 50,910 85,230 84,370 ## Legal Debt ## Margin 260,565 $ 273,441 $ 308,831 $ 330,885 $ 349,604 $ 368,626 $ 360,431 $ 412,932 $ 414,181 $ 432,199 $ ## Total Net Debt Applicable to the Limit as a Percentage of ## Debt Limit 15.64% 15.49% 10.85% 10.12% 8.86% 7.92% 12.92% 10.98% 17.07% 16.33% ## Legal Debt Margin Calculation for Fiscal Year 2025 ## Market Value (After Fiscal Disparities) 17,218,964,600 $ ## Debt Limit (3% of Market Value) 516,568,938 ## Debt Applicable to Limit: ## General Obligation Bonds 60,590,000 ## Public Project Revenue Bonds 23,780,000 ## Total Debt Applicable to Limit 84,370,000 ## Legal Debt Margin 432,198,938 $ ## Fiscal Year ## City of Edina ## Legal Debt Margin Information ## Last Ten Fiscal Years (dollars in thousands) Page 287 of 401 152 Table 13 ## Less: ## OperatingNet Available ## RevenueExpensesRevenuePrincipalInterestTotalCoverage ## Public Project Revenue Bonds (Annual Appropriation Lease Revenue) 20162,499,521$ -$ 2,499,521$ 900,000$ 654,473$ 1,554,473$ 1.61 20172,496,500 - 2,496,500 905,000 633,527 1,538,527 1.62 20182,507,700 - 2,507,700 1,045,000 607,148 1,652,148 1.52 20192,510,900 - 2,510,900 1,080,000 574,566 1,654,566 1.52 20202,506,300 - 2,506,300 1,115,000 540,690 1,655,690 1.51 20211,554,400 - 1,554,400 1,145,000 521,504 1,666,504 0.93 20221,560,000 - 1,560,000 1,040,000 428,269 1,468,269 1.06 20231,558,000 - 1,558,000 1,070,000 400,194 1,470,194 1.06 20241,560,700 - 1,560,700 1,100,000 367,644 1,467,644 1.06 20251,563,000 - 1,563,000 1,135,000 672,590 1,807,590 0.86 ## Tax Increment Bonds 20162,779,097 - 2,779,097 - - - - 20173,422,898 - 3,422,898 - - - - 20184,997,706 - 4,997,706 - - - - 20195,447,108 - 5,447,108 - - - - 20206,452,819 - 6,452,819 - - - - 20218,295,756 - 8,295,756 - - - - 20221,720,243 - 1,720,243 - 245,092 245,092 7.02 20232,078,687 - 2,078,687 250,000 217,250 467,250 4.45 20243,176,176 - 3,176,176 260,000 207,050 467,050 6.80 20254,680,338 - 4,680,338 270,000 434,750 704,750 6.64 ## Permanent Improvement Revolving Bonds (Special Assessment) 20164,727,881 - 4,727,881 1,925,000 705,628 2,630,628 1.80 20174,746,414 - 4,746,414 2,105,000 745,783 2,850,783 1.66 20184,121,203 - 4,121,203 2,480,000 746,023 3,226,023 1.28 20194,097,625 - 4,097,625 2,630,000 745,697 3,375,697 1.21 20204,075,208 - 4,075,208 2,570,000 771,215 3,341,215 1.22 20212,338,866 - 2,338,866 1,961,000 699,572 2,660,572 0.88 20222,167,201 - 2,167,201 2,133,000 840,238 2,973,238 0.73 20232,410,414 - 2,410,414 1,817,000 872,103 2,689,103 0.90 20242,302,560 - 2,302,560 1,794,000 858,888 2,652,888 0.87 20252,510,093 - 2,510,093 1,940,000 1,025,870 2,965,870 0.85 ## Utility Bond 201619,472,645 16,222,211 3,250,434 4,925,000 814,238 5,739,238 0.57 201721,360,262 16,718,288 4,641,974 5,040,000 930,123 5,970,123 0.78 201822,757,745 17,411,983 5,345,762 4,980,000 1,049,101 6,029,101 0.89 201921,846,239 18,457,754 3,388,485 5,685,000 999,754 6,684,754 0.51 202025,731,887 21,401,340 4,330,547 4,580,000 1,169,779 5,749,779 0.75 202127,663,593 21,984,700 5,678,893 6,920,000 1,143,996 8,063,996 0.70 202232,297,449 19,942,083 12,355,366 6,112,000 939,616 7,051,616 1.75 202330,426,494 21,429,025 8,997,469 4,292,000 1,491,444 5,783,444 1.56 202431,943,249 22,556,198 9,387,051 4,735,000 1,759,127 6,494,127 1.45 202534,391,208 23,572,288 10,818,920 4,995,000 1,843,138 6,838,138 1.58 ## Recreational Facility Bonds 20166,080,529 6,593,312 (512,783) 375,000 231,285 606,285 (0.85) 20174,724,288 6,247,649 (1,523,361) 500,000 217,958 717,958 (2.12) 20185,019,374 6,069,584 (1,050,210) 2,197,000 494,192 2,691,192 (0.39) 20196,908,708 7,516,553 (607,845) 849,000 430,733 1,279,733 (0.47) 20205,585,853 7,213,408 (1,627,555) 876,000 404,703 1,280,703 (1.27) 20218,801,478 8,759,248 42,230 909,000 376,723 1,285,723 0.03 20229,740,702 9,505,749 234,953 992,000 353,691 1,345,691 0.17 202310,171,227 10,579,708 (408,481) 939,000 314,108 1,253,108 (0.33) 202410,263,489 10,715,730 (452,241) 832,000 245,850 1,077,850 (0.42) 202510,283,136 10,480,898 (197,762) 1,009,000 248,744 1,257,744 (0.16) ## Debt Service RequirementsFiscal ## Year ## City of Edina ## Pledged Revenue Coverage ## Last Ten Fiscal Years Page 288 of 401 153 Table 14 ## Estimated ## Personal ## Per Capita ## High School ## Income ## Personal ## Graduation ## Unemployment ## Population (In thousands) ## Income ## Rate ## Rate 51,804 3,264,895 $ 63,024 $ 97.7% 3.08% 52,497 3,567,906 67,964 97.9% 2.83% 52,535 3,480,339 66,248 98.0% 2.26% 53,268 3,711,714 69,680 98.2% 2.63% 53,494 4,111,335 76,856 98.2% 5.10% 53,572 3,873,041 72,296 98.4% 2.50% 54,048 4,209,637 77,887 98.5% 2.10% 54,048 4,542,680 84,049 98.4% 2.30% 54,480 4,841,529 88,868 98.5% 2.50% 54,785 5,106,510 93,210 98.3% 3.20% ## Sources: Population data from U.S. Census Bureau/Metropolitan Council. 2024 is the most recent. Personal income and per capita income estimates based on MN Department of Employment and Economic Development Quarterly Census of Employment and Wages. 2024 is the most recent. High school graduation rate data from U.S. Census Bureau for the City of Edina. Unemployment rate data from State of Minnesota Department of Employment and Economic Development. ## City of Edina ## Demographic and Economic Statistics ## Last Ten Fiscal Years 2020 2019 2018 2016 2017 ## Fiscal ## Year 2025 2024 2023 2022 2021 Page 289 of 401 154 Table 15 ## Percentage ## Percentage ## of Total City ## of Total City ## Employees ## Rank ## Employment ## Employees ## Rank ## Employment ## Edina Realty and Edina Realty Title 2,394 1 9.19% 400 6 1.66% ## Edina Public Schools ISD #273 1,713 2 6.58% 1,245 2 5.18% ## Fairview Southdale Hospital 1,624 3 6.23% 2,613 1 10.87% ## City of Edina 1,019 4 3.91% 814 5 3.39% ## BI Worldwide 754 5 2.89% 1,000 3 4.16% ## Western National Insurance Company 624 6 2.40% ## DNA ## DNA ## DNA ## Lund Food Holdings, Inc 500 7 1.92% 360 9 1.50% ## Minneapolis Garage Door Experts 500 8 1.92% ## DNA ## DNA ## DNA ## Dow Water & Process Solutions 375 9 1.44% ## DNA ## DNA ## DNA ## Target 375 10 1.44% ## DNA ## DNA ## DNA ## Regis Corporation ## DNA ## DNA ## DNA 900 4 3.75% International Dairy Queen Inc. ## DNA ## DNA ## DNA 400 7 1.66% ## FilmTec Corporation ## DNA ## DNA ## DNA 375 8 1.56% JC Penny Co. ## DNA ## DNA ## DNA 276 10 1.15% ## Totals 9,878 37.92% 8,383 34.88% DNA: Data is not available ## Sources: Data Axle Reference Solutions, written and telephone survey, and the Minnesota Department of Employment and Economic Development. 2016 data from previous ACFR. 2016 2025 ## Employer ## City of Edina ## Principal Employers ## Current Year and Nine Years Ago Page 290 of 401 155 Table 16 2016 b2017 b201820192020 b20212022202320242025 ## Administration General Fund5.00 5.00 5.00 5.00 7.00 7.00 8.00 8.00 8.00 8.00 ## Communications General Fund6.00 6.00 6.00 6.00 6.80 6.80 7.00 7.00 7.00 7.00 Internal Services- - - - 0.20 0.20 - - - - ## Information Technology Services Internal Services5.00 5.00 6.00 6.00 7.00 7.00 9.00 9.00 9.00 9.00 ## Community Development General Fund12.00 12.00 12.00 12.00 12.00 12.00 12.00 13.00 13.00 13.00 HRA Fund1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 ## Engineering General Fund11.00 11.00 12.00 12.00 17.30 17.30 15.00 15.00 15.00 15.00 PACS Fund1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Utilities Fund1.00 1.00 1.00 1.00 1.35 1.35 1.00 1.00 1.00 1.00 CAS Fund1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 Construction Fund1.10 1.10 1.10 1.10 1.00 1.00 - - - - Internal Services- - - - 4.35 5.35 8.00 8.00 8.00 8.00 ## Finance General Fund5.00 5.00 6.00 6.00 6.00 6.00 7.00 8.00 8.00 8.00 Utilities Fund1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 2.00 2.00 Liquor Fund- - - - - - - - - - ## Fire Protection General Fund45.90 45.90 45.80 49.80 63.35 63.35 66.55 71.55 71.55 77.55 Utilities Fund- - - - 1.65 1.65 1.45 1.45 1.45 1.45 ## Human Resources General Fund5.00 5.00 5.00 5.00 4.00 5.00 5.00 5.00 5.00 5.00 Internal Services- - - - 1.00 1.00 1.00 1.00 1.00 1.00 ## Parks & Recreation General Fund25.05 25.05 25.30 25.30 24.65 24.65 24.00 25.00 25.50 26.00 Aquatic Center0.60 0.60 0.70 0.70 0.70 0.70 0.33 1.03 1.05 1.08 Golf Course8.05 8.05 9.00 9.00 11.00 11.18 12.15 12.15 12.34 12.50 Arena4.85 4.85 6.25 6.25 5.95 6.03 6.58 7.08 7.15 7.23 Sports Dome0.15 0.15 1.00 1.00 1.05 1.08 0.53 0.03 0.03 0.03 Art Center2.00 2.00 2.00 2.00 2.00 2.08 2.08 1.08 1.08 1.08 Edinborough Park5.80 5.80 5.65 5.65 5.65 5.75 6.80 5.10 5.20 5.30 Centennial Lakes5.00 5.00 5.05 5.05 5.00 5.03 5.03 5.03 5.05 5.08 Liquor Fund9.00 9.00 9.00 9.00 8.50 9.50 9.50 9.50 9.60 9.70 Enterprise Funds- - - - 0.50 - - - - - ## Police Protection General Fund72.55 72.55 76.55 76.55 77.00 78.00 78.00 80.00 84.00 86.00 ## Public Works General Fund25.40 25.40 23.30 23.30 19.15 19.15 24.00 26.00 26.00 26.00 Utilities Fund16.85 16.85 18.65 18.65 19.05 20.05 15.00 16.00 16.00 17.00 Internal Services10.25 10.25 10.20 10.20 6.60 6.60 7.00 7.00 7.00 7.00 Enterprise Funds- - - - 0.20 0.20 - - - - Other- - - - - - - - - - Total286.55 286.55 296.55 300.55 324.00 330.00 337.00 349.00 354.00 364.00 a Full-time employee counts do not include Council members, part-time, contract or seasonal employees. In a typical year the City will employ an additional 700-800 people in these categories. b The City completed departmental reorganizations that are reflected on this chart between years 2013-2014, 2016-2017, and 2020. In some cases, data for years before the reorganization has been modified from what was originally reported to improve comparisons. ## Source: City of Edina 2024-2025 Budget Book ## Function ## Budgeted Full-Time Employees for Fiscal Year a ## City of Edina ## Full-Time Equivalent City Government Employees by Function ## Last Ten Fiscal Years Page 291 of 401 156 Table 17 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 ## General Government ## Total City Employees 1,155 1,067 1,136 1,174 953 1,021 1,099 1,148 1,226 1,175 ## Votes Cast a 31,986 11,440 30,774 10,990 36,088 14,881 29,250 5,928 54,801 - ## Public Works ## Asphalt Placed (Tons) 9,298 11,176 14,419 9,847 10,593 10,962 10,300 12,664 9,193 9,656 Concrete (cu. yds.) 897 708 868 963 816 435 455 525 484 469 ## Public Safety ## Fire Calls 1,276 1,220 1,321 1,600 1,265 1,419 1,431 1,577 1,514 1,571 ## Medical Calls 4,063 4,508 4,572 4,727 4,288 5,337 5,811 5,643 5,802 5,922 ## Police Calls for Service d 61,325 71,738 62,981 60,975 47,833 48,757 46,191 36,350 37,699 42,388 ## Internal Services ## Vehicle Fixes 2,721 2,478 2,336 1,910 1,780 1,555 1,048 1,414 1,565 1,660 ## Utilities ## Daily Consumption b 6,047 5,950 6,101 5,394 5,785 6,705 6,587 6,768 5,762 5,767 ## Aquatic Center ## Attendance 108,609 89,318 88,342 83,499 - 88,217 81,184 80,225 70,686 75,179 ## Golf Course ## Total Rounds Played c 61,256 23,241 20,679 60,561 74,180 76,383 75,437 75,684 77,782 81,508 ## N/A Data not available a The City elections department runs general elections in even-numbered years and school district elections in odd-numbered years. Number of votes cast tend to vary between even and odd-numbered years and based on presidential election cycles. b Daily average of water pumped from city wells, measured in thousands of gallons. c 27-hole golf course was closed and reconstructed into an 18-hole championship course from 2017-2018 d Changed from Crimes reported to provide full data of police service calls. In 2023, changed system where only serviced calls are tracked. ## Source: Various City departments ## Function ## City of Edina ## Operating Indicators by Function ## Last Ten Fiscal Years ## Fiscal Year Page 292 of 401 157 Table 18 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 ## Public Works ## Miles of Streets 224 224 224 224 224 224 224 224 230 230 ## City Parking Ramps 4 4 4 4 4 4 4 4 4 4 ## Public Safety ## Fire Stations 2 2 2 2 2 2 2 2 2 2 ## Parks and Recreation ## City Parks 40 40 40 40 40 40 40 40 40 40 ## Acreage of Parks 1,553 1,553 1,553 1,553 1,553 1,553 1,553 1,553 1,553 1,553 ## Park Buildings 27 27 27 27 27 27 27 27 27 27 ## Utilities ## Wells 18 18 18 18 18 18 18 18 18 18 ## Watermain Miles 199 199 199 199 199 199 199 199 225 225 ## Sanitary Sewer Miles 186 186 186 186 186 186 186 186 200 200 ## Sewer Connections 13,979 13,979 13,979 13,979 13,979 13,979 13,979 13,979 13,889 13,889 ## Arena ## Ice Sheets 4 4 4 4 4 4 4 4 4 4 ## Source: Various City departments ## Function ## City of Edina ## Capital Asset Statistics by Function ## Last Ten Fiscal Years ## Fiscal Year Page 293 of 401 Page 294 of 401 ## City of Edina ## Hennepin County, Minnesota ## Communications Letter December 31, 2025 Page 295 of 401 ## City of Edina ## Table of Contents Report on Matters Identified as a Result of the Audit of the Basic Financial Statements 1 ## Material Weakness 3 ## Required Communication 4 ## Financial Analysis 9 ## Emerging Issues 27 Page 296 of 401 1 Report on Matters Identified as a Result of ## the Audit of the Basic Financial Statements ## Honorable Mayor and Members of the City Council ## City of Edina ## Edina, Minnesota In planning and performing our audit of the basic financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Edina, Minnesota, as of and for the year ended December 31, 2025, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that have not been identified. In addition, because of inherent limitations in internal control, including the possibility of management override of controls, misstatements due to error, or fraud may occur and not be detected by such controls. However, as discussed below, we identified a certain deficiency in internal control that we consider to be a material weakness. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the City's basic financial statements will not be prevented, or detected and corrected, on a timely basis. A reasonable possibility exists when the likelihood of an event occurring is either reasonably possible or probable as defined as follows: • Reasonably possible. The chance of the future event or events occurring is more than remote but less than likely. • Probable. The future event or events are likely to occur. The material weakness identified is stated within this letter. The City's written response to the material weakness identified in our audit has not been subjected to audit procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on it. Page 297 of 401 2 The accompanying memorandum also includes financial analysis provided as a basis for discussion. The matters discussed herein were considered by us during our audit and they do not modify the opinion expressed in our Independent Auditor's Report dated June 5, 2026, on such statements. The purpose of this communication, which is an integral part of our audit, is to describe for the Members of the City Council and management and others within the City and state oversight agencies the scope of our testing of internal control and the results of that testing. Accordingly, this communication is not intended to be and should not be used for any other purpose. ## Minneapolis, Minnesota June 5, 2026 Page 298 of 401 3 ## City of Edina ## Material Weakness ## Prior Period Restatement During the audit, a prior period restatement was required to adjust beginning net position and fund balance to correct an error in the prior period financial statements related to the HIA loan receivable balance that was overstated as of December 31, 2024. This could adversely affect the City's ability to present financial statements that are free of material misstatement. Page 299 of 401 ## City of Edina ## Required Communication 4 We have audited the basic financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended December 31, 2025. Professional standards require that we advise you of the following matters related to our audit. ## Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter, our responsibility, as described by professional standards, is to form and express opinions about whether the basic financial statements prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the basic financial statements does not relieve you or management of its respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the basic financial statements are free of material misstatement. An audit of the basic financial statements includes consideration of internal control over financial reporting as a basis for designing 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 over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are also responsible for communicating significant matters related to the audit that are, in our professional judgement, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. Generally accepted accounting principles provide for certain Required Supplementary Information (RSI) to supplement the basic financial statements. Our responsibility with respect to the RSI, which supplements the basic financial statements, is to apply certain limited procedures in accordance with generally accepted auditing standards. However, the RSI was not audited and, because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance, we do not express an opinion or provide any assurance on the RSI. Our responsibility for the supplementary information accompanying the basic financial statements, as described by professional standards, is to evaluate the presentation of the supplementary information in relation to the basic financial statements as a whole and to report on whether the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Our responsibility with respect to the other information in documents containing the audited basic financial statements and auditor's report does not extend beyond the basic financial information identified in the report. We have no responsibility for determining whether this other information is properly stated. This other information was not audited, and we do not express an opinion or provide any assurance on it. Page 300 of 401 ## City of Edina ## Required Communication 5 ## Our Responsibility in Relation to Government Auditing Standards As communicated in our engagement letter, part of obtaining reasonable assurance about whether the basic financial statements are free of material misstatement, we performed tests of the City's compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of basic financial statement amounts. However, the objective of our tests was not to provide an opinion on compliance with such provisions. ## Planned Scope and Timing of the Audit We conducted our audit consistent with the planned scope and timing we previously communicated to you. ## Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, our firm, and our network firms have complied with all relevant ethical requirements regarding independence. ## Significant Risks We addressed the following significant risks of material misstatement identified in our planning procedures: • Management Override of Controls – Management override of internal control is considered a risk in substantially all engagements as management may be incentivized to produce better results. • Misappropriation of Assets – If duties cannot be appropriately segregated, there is a risk of unauthorized disbursements being made by the City. In addition, generally this results in less review taking place as transactions are recorded in the financial statements. • Improper Revenue Recognition – Revenue recognition is considered a fraud risk on substantially all engagements as it generally has a significant impact on the results of the government's operations. In addition, complexities exist surrounding the calculation and recording of various revenue sources. • Pension Valuation – Net Pension Liability, Deferred Outflows of Resources Related to Pensions, and Deferred Inflows of Resources Related to Pensions are generally material to the financial statements and involve significant estimates. • OPEB Valuation – Total OPEB Liability, Deferred Outflows of Resources Related to OPEB, and Deferred Inflows of Resources Related to OPEB are generally material to the financial statements and involve significant estimates. • Lease Valuation – Lease receivable and related deferred inflows of resources are material to the financial statements and involve significant estimates. • Lease Valuation – Lease liability and right-to-use assets are material to the financial statements and involve significant estimates. ## Qualitative Aspects of the City's Significant Accounting Practices ## Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in the notes to the basic financial statements. There have been no initial selection of accounting policies and no changes to significant accounting policies or their application during 2025. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Page 301 of 401 ## City of Edina ## Required Communication 6 ## Qualitative Aspects of the City's Significant Accounting Practices (Continued) ## Significant Accounting Estimates and Related Disclosures Accounting estimates and related disclosures are an integral part of the basic financial statements prepared by management and are based on management's current judgements. Those judgements are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the basic financial statements and because of the possibility that future events affecting them may differ markedly from management's current judgements. The most sensitive estimates affecting the basic financial statements relate to: Total Other Post Employment Benefits (OPEB) Liability, Deferred Outflows of Resources Related to OPEB and Deferred Inflows of Resources Related to OPEB – These balances are based on an actuarial study using the estimates of future obligations of the City for post employment benefits. Net Pension Liability, Deferred Outflows of Resources Related to Pensions and Deferred Inflows of Resources Related to Pensions – These balances are based on an allocation by the pension plans using estimates based on contributions. Lease Receivable, Deferred Inflows of Resources, Lease Liability and Right-to-Use Lease Assets – These balances are based on estimates and judgments determined by the City related to the discount rate, lease term, and lease payments. Subscription Liability and Right-to-Use Subscription Assets – These balances are based on estimates and judgments determined by the City related to the discount rate, subscription term, and subscription payments. We evaluated the key factors and assumptions used to develop the accounting estimates and determined that they are reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units. ## Financial Statement Disclosures Certain basic financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The basic financial statement disclosures are neutral, consistent, and clear. ## Significant Difficulties Encountered during the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. ## Uncorrected and Corrected Misstatements For the purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effects of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the basic financial statements taken as a whole and each applicable opinion unit. Management did not identify, and we did not notify them of any uncorrected financial statement misstatements. Page 302 of 401 ## City of Edina ## Required Communication 7 ## Uncorrected and Corrected Misstatements (Continued) In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. None of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the basic financial statements taken as a whole. ## Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City's basic financial statements or the auditor's report. No such disagreements arose during the course of our audit. ## Representations Requested from Management We have requested certain written representations from management, which are included in the management representation letter. ## Management's Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management has informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. ## Other Significant Matters, Findings, or Issues In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatory conditions affecting the City, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City's auditor. ## Other Information Included in Annual Reports Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in the City's annual reports, does not extend beyond the information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. We applied certain limited procedures to the RSI that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI. With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the basic financial statements or to the basic financial statements themselves. Page 303 of 401 ## City of Edina ## Required Communication 8 ## Other Information Included in Annual Reports (Continued) Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the basic financial statements. Page 304 of 401 ## City of Edina ## Financial Analysis 9 The following pages provide graphic representation of select data pertaining to the financial position and operations of the City for the past five years. Our analysis of each graph is presented to provide a basis for discussion. ## General Fund At December 31, 2025, the General Fund unassigned/assigned fund balance was $35,748,497, an increase of 16.4%, or $5,026,604, from the 2024 unassigned/assigned fund balance. The components of fund balance for the General Fund and fund balance as a percent of subsequent years' budget are depicted in the graphs below and on the following page. 2021 2022 2023 2024 2025 ## Revenue $49,765,528 $54,927,419 $58,049,306 $63,301,756 $67,252,656 ## Expenditures 49,174,600 52,529,966 55,888,013 58,959,511 62,135,785 ## Assigned/Unassigned 23,630,372 25,496,867 26,924,670 30,721,893 35,748,497 $- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 ## General Fund Page 305 of 401 ## City of Edina ## Financial Analysis 10 ## Fund Balance The table and graph below shows the percentage of the next year's expenditures covered by the General Fund's unreserved fund balance for the past five years. (Note: The next year's annual expenditures for 2025 are based on budgeted expenditures for 2026.) ## Percentage ## Year Ended of December 31, ## Fund Balance ## Expenditures ## Expenditures 2021 23,630,372 $ 52,529,966 $ 45.0% 2022 25,496,867 55,888,013 45.6% 2023 26,924,670 58,959,511 45.7% 2024 30,721,893 62,135,785 49.4% 2025 35,748,497 70,780,000 50.5% ## Assigned and Unassigned General Fund Balance ## Compared to Annual Expenditures Assigned and ## Unassigned ## Next Year's ## Annual $52,529,966 $55,888,013 $58,959,511 $62,135,785 $70,780,000 $23,630,372 $25,496,867 $26,924,670 $30,721,893 $35,748,497 $- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 20212022202320242025 ## Unassigned/Assigned General Fund Balance ## Compared to Annual Expenditures ## Next Year's Annual ExpenditureAssigned/Unassigned Page 306 of 401 ## City of Edina ## Financial Analysis 11 ## General Fund Revenues The chart below depicts the General Fund revenues by source for the past five years. Overall, revenues increased $3,950,900, or 6.2%, from the prior year, increasing from $63,301,756 to $67,252,656. Property tax revenue increased by $3,505,940 due primarily to an increase in the tax levy. Property taxes are the main source of revenue for the General Fund and with fluctuations in other sources; these funds are more heavily relied upon. Licenses and permits revenue increased $858,880 due to an increase in building permits and rental licenses in 2025. All other categories stayed consistent with the prior years. 20212022202320242025 ## Other $987,177$84,214$2,153,123$2,361,094$2,279,168 ## Charges for Services 5,536,7865,785,9866,535,1607,752,2237,563,486 ## Licenses and Permits 6,008,2257,403,2065,630,0815,929,0406,787,920 ## Intergovernmental 2,564,3974,321,9863,649,6723,463,7463,320,489 ## Property Taxes 34,668,94337,332,02740,081,27043,795,65347,301,593 $- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 ## General Fund Revenues Page 307 of 401 ## City of Edina ## Financial Analysis 12 ## General Fund Expenditures The chart below presents General Fund expenditures by function for the past five years. In the past year, General Fund expenditures increased by $3,176,274, or 5.4%, from $58,959,511 to $62,135,785. Public safety had the largest increase in expenditures of $3,059,663, or 10.3%, as a result of filling vacant police and fire positions as well as increases in salaries. General government decreased $947,879 due to the deed grant repayment ending in 2024 as well as Lincoln and Londonderry Small Area Plan consulting ending in 2024. Parks and recreation increased $705,294 as a result of hiring a new facilities coordinator and a digital marking coordinator. There were also significantly more part- time rink attendants and part-time maintenance hours paid in 2025. All other categories stayed consistent with the prior years. 20212022202320242025 ## Debt Service $-$3,108$26,179$26,846$29,852 ## Parks and Recreation 5,942,7546,446,8996,692,3657,214,2367,919,530 ## Public Works 8,878,5679,418,7649,780,00910,490,61910,846,809 ## Public Safety 25,527,55626,040,58028,264,84429,733,80232,793,465 ## General Government 8,825,72310,620,61511,124,61611,494,00810,546,129 $- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 ## General Fund Expenditures Page 308 of 401 ## City of Edina ## Financial Analysis 13 ## General Fund Budget to Actual For the year ended December 31, 2025, the City budgeted for expenditures and transfers out from the General Fund to exceed revenues and transfers in by $1,000,000. Actual revenues and transfers in exceeded expenditures and transfers out by $5,027,059. Revenues were over budgeted by $2,743,785, or 4.3%. Taxes and assessment revenue was under budget $1,361,622 due to delinquent balances and less franchise taxes than anticipated. Charges for services revenue were over budget $1,250,930 as a result of conservative budgeting. Licenses and permit revenue and intergovernmental revenue exceeded the budget by $965,962 and $866,529, respectively due to conservative budgeting. Miscellaneous and investment income was over budget by $1,021,986 due to better investment earnings than anticipated in the budget. Overall, expenditures were $3,180,086, or 4.9% under budget. Public works expenditures were under budget by $1,452,449 due to conservative budgeting for increasing costs. Public safety expenditures were under budget by $1,092,770 as a result of staff vacancies during the year. The other sources of expenditures were relatively consistent with the 2025 budget. ## Final ## Actual Over (Under) ## Budget ## Budget ## Amounts ## Budget ## Variance ## Revenue Taxes and assessments 48,663,215 $ 47,301,593 $ (1,361,622) $ -2.8% Licenses and permits 5,821,958 6,787,920 965,962 16.6% ## Intergovernmental 2,453,960 3,320,489 866,529 35.3% Charges for services 6,312,556 7,563,486 1,250,930 19.8% Miscellaneous and investment Income 1,257,182 2,279,168 1,021,986 81.3% Total revenue 64,508,871 67,252,656 2,743,785 4.3% ## Expenditures General government 10,887,802 10,546,129 (341,673) -3.1% Public works 12,299,258 10,846,809 (1,452,449) -11.8% Public safety 33,886,235 32,793,465 (1,092,770) -3.2% Park and recreation 8,242,576 7,919,530 (323,046) -3.9% ## Debt Service - 29,852 29,852 ## NA Total expenditures 65,315,871 62,135,785 (3,180,086) -4.9% ## Other Financing Sources (Uses) Proceeds from sale of capital assets - 34,524 34,524 ## NA Net transfers in (out) (193,000) (124,336) 68,664 -35.6% (193,000) (89,812) 103,188 (0) ## Net Change in Fund Balance (1,000,000) $ 5,027,059 $ 6,027,059 $ ## NA Page 309 of 401 ## City of Edina ## Financial Analysis 14 ## Utilities Operations The following graph illustrates the current operations of the Utilities Fund for the past five years. Operating income is shown with and without depreciation below. Operating revenue increased $2,447,959, or 7.7%, from 2024 due to an increase in rates and consumption. Operating expenses increased by $1,016,090 or 4.5%. The increase is mainly due to an increase in sewer rates to Met Council, the York Ave pond improvement, and annual storm inspections. The net effect of the increased revenues and expenses is an operating income of $10,818,920. This was an increase of $1,431,869 in the operating income reported in 2024. Enterprise funds may be used to account for any activity in which a fee is charged. It is not required to have the fee support the entire activity; however, the basic premise in establishing an enterprise fund is that the activity will be operated similar to a business. Therefore, it is expected the enterprise fund would at least be able to meet its obligations currently and into the future. 2021 2022 2023 2024 2025 ## Operating Revenues $27,663,593 $32,297,449 $30,426,494 $31,943,249 $34,391,208 ## Operating Expenses 21,950,832 19,942,084 21,429,025 22,556,198 23,572,288 ## Operating Income with Depreciation 5,712,761 12,355,365 8,997,469 9,387,051 10,818,920 ## Depreciation 5,931,178 5,935,306 5,999,136 6,202,614 6,432,344 ## Operating Income without Depreciation 11,643,939 18,290,671 14,996,605 15,589,665 17,251,264 $- $3,000,000 $6,000,000 $9,000,000 $12,000,000 $15,000,000 $18,000,000 $21,000,000 $24,000,000 $27,000,000 $30,000,000 $33,000,000 $36,000,000 ## Utilities Operations Page 310 of 401 ## City of Edina ## Financial Analysis 15 ## Utilities Fund 2021 2022 2023 2024 2025 ## Cash and Investments $24,913,241 $36,100,218 $35,468,036 $40,410,286 $49,430,052 ## Unrestricted Net Position 28,521,154 37,571,970 38,861,729 42,091,948 47,571,834 $- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 ## Utilities Fund The above graph shows the cash and investment and unrestricted net position balances as of December 31, for the last five years. The Utilities Fund cash and investment balance has increased $24,516,811 since 2021. The cash and investment balance increased $9,019,766 during 2025 while the unrestricted net position for the Utilities Fund increased $5,479,886 during the same time period. Cash and investments exceeded unrestricted net position due to unspent bond proceeds at the end of the year related to capital projects. Page 311 of 401 ## City of Edina ## Financial Analysis 16 ## Aquatic Center Operations The following graph illustrates the current operations of the Aquatic Center for the past five years. Operating income is shown with and without depreciation below. The Aquatic Center has shown an operating loss in all five years presented. In 2025, the Fund showed an operating loss of $236,177. This is a decrease of $81,199 in the operating loss compared to 2024. The Fund experienced an increase in operating revenue of $25,564 as a result of more concession sales during the year. The expenses decreased $55,635 due to repainting the pool and pool locker rooms in 2024 and not having a similar expense in 2025. 2021 2022 2023 2024 2025 ## Operating Revenues $1,069,724 $1,144,569 $1,120,348 $1,117,510 $1,143,074 ## Operating Expenses 1,079,317 1,212,514 1,333,282 1,434,886 1,379,251 ## Operating Income (Loss) with Depreciation (9,593) (67,945) (212,934) (317,376) (236,177) ## Depreciation 283,470 243,055 202,510 202,799 199,494 ## Operating Income without Depreciation 273,877 175,110 (10,424) (114,577) (36,683) $(400,000) $(200,000) $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 ## Aquatic Center Operations Page 312 of 401 ## City of Edina ## Financial Analysis 17 ## Aquatic Center Fund 2021 2022 2023 2024 2025 ## Cash and Investments $2,239,912 $2,286,277 $2,328,445 $2,217,813 $1,852,867 ## Unrestricted Net Position 1,005,283 2,239,676 1,057,430 944,016 967,875 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 ## Aquatic Center The graph above shows the cash and investment and unrestricted net position balances as of December 31, for the last five years. The Aquatic Center cash and investment balance has decreased $387,045 since 2021. In 2025, the Aquatic Center cash and investment balance decreased $364,946 while the unrestricted net position increased $23,859. Page 313 of 401 ## City of Edina ## Financial Analysis 18 ## Golf Course Operations The following graph illustrates the current operations of the Golf Course for the past five years. Operating income is shown with and without depreciation below. The Golf Course has shown an operating income in all five years presented. In 2025, the Fund showed an operating income of $854,675. This is an increase of $348,848 in the operating income from 2024. The Fund experienced an increase in operating revenue of $36,899 as a result of an early Spring weather and a demand for outdoor golf. The expenses decreased $311,949 due to negative pension expense in 2025 as well as less uniform costs. 2021 2022 2023 2024 2025 ## Operating Revenues $5,384,684 $6,063,172 $6,306,176 $6,289,801 $6,326,700 ## Operating Expenses 4,835,667 5,119,485 5,750,865 5,783,974 5,472,025 ## Operating Income with Depreciation 549,017 943,687 555,311 505,827 854,675 ## Depreciation 894,499 955,346 929,185 937,841 941,335 ## Operating Income without Depreciation 1,443,516 1,899,033 1,484,496 1,443,668 1,796,010 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 ## Golf Course Operations Page 314 of 401 ## City of Edina ## Financial Analysis 19 ## Golf Course Fund 2021 2022 2023 2024 2025 ## Cash and Investments $1,026,830 $1,870,596 $2,662,989 $3,419,939 $4,232,253 ## Unrestricted Net Position (430,403) 297,887 974,326 1,543,043 2,103,885 $(500,000) $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 ## Golf Course The graph above shows the cash and investment and unrestricted net position balances as of December 31, for the last five years. The Golf Course cash and investment balance has increased $3,205,423 since 2021. In 2025, the Golf Course cash and investment balance increased $812,314 while the unrestricted net position increased $560,842. Page 315 of 401 ## City of Edina ## Financial Analysis 20 ## Arena Operations The following graph illustrates the current operations of the Arena for the past five years. Operating income is shown with and without depreciation below. The Arena has shown an operating loss in all five years presented. In 2025, the Fund showed an operating loss of $816,260. This is an increase of $173,360 in the operating loss from 2024. The Fund experienced a decrease in operating revenue of $40,608 due to a decrease in ice rentals as well as a decrease in concession sales. The Arena expenses increased $132,752 as a result of additional repairs and maintenance needs in 2025. 2021 2022 2023 2024 2025 ## Operating Revenues $2,347,070 $2,532,961 $2,748,733 $2,853,970 $2,813,362 ## Operating Expenses 2,846,078 3,173,750 3,495,561 3,496,870 3,629,622 ## Operating Income (Loss) with Depreciation (499,008) (640,789) (746,828) (642,900) (816,260) ## Depreciation 657,745 590,898 522,451 525,837 520,248 ## Operating Income without Depreciation 158,737 (49,891) (224,377) (117,063) (296,012) $(1,000,000) $(500,000) $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 ## Arena Operations Page 316 of 401 ## City of Edina ## Financial Analysis 21 ## Arena Fund 2021 2022 2023 2024 2025 ## Cash and Investments $558,186 $608,097 $428,195 $430,231 $408,009 ## Unrestricted Net Position (47,349) (91,778) (210,076) (250,130) (326,780) $(350,000) $(300,000) $(250,000) $(200,000) $(150,000) $(100,000) $(50,000) $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 $550,000 $600,000 $650,000 ## Arena The graph above shows the cash and investment and unrestricted net position balances as of December 31, for the last five years. The Arena cash and investment balance has decreased $150,177 since 2021. In 2025, the Arena cash and investment balance decreased $22,222 while the unrestricted net position decreased $76,650. In addition to operations, the fund received transfers from other funds of $531,362 in 2025. Page 317 of 401 ## City of Edina ## Financial Analysis 22 ## Liquor Operations The City's liquor stores reported a decrease of $1,566,866, or 12.4%, in sales from 2024 to 2025. Costs of sales decreased by 11.4% or $964,229. Operating expenses in the Liquor Fund decreased $703,561 due to significantly reducing staff in response to the decline in sales and post-covid job market patterns. The City's gross profit percentage remained consistent from 2024 to 2025. The City's gross profit percentage is higher than all the metro stores presented below. 2021 2022 2023 2024 2025 ## Sales and Operating Revenue $14,313,232 $14,427,474 $13,330,018 $12,641,168 $11,074,302 ## Cost of Sales 10,353,194 10,010,262 9,005,523 8,431,072 7,466,843 ## Gross Profit 3,960,038 4,417,212 4,324,495 4,210,096 3,607,459 ## Operating Expenses 3,166,585 3,723,521 3,910,170 3,976,001 3,272,440 ## Operating Income 793,453 693,691 414,325 234,095 335,019 ## Depreciation 120,830 125,293 125,314 125,136 123,366 ## Operating Income without Depreciation 914,283 818,984 539,639 359,231 458,385 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 ## Liquor Operations 2025 City of City of City ofCity of City of ## Edina*Edina*Eden Prairie**Richfield*Savage* Sales and operating revenue11,074,302$ 12,641,168$ 11,967,286$ 14,024,984$ 6,989,478$ Costs of sales7,466,843 8,431,072 8,314,546 9,920,096 5,072,494 Gross profit3,607,459 4,210,096 3,652,740 4,104,888 1,916,984 Operating expenses3,272,440 3,976,001 2,456,519 2,769,762 1,561,298 Operating income335,019 234,095 1,196,221 1,335,126 355,686 Gross profit percentage32.6%33.3%30.5%29.3%27.4% 2024 * Individual metro municipal cities' data obtained from each city's respective 2024 Annual Comprehensive Financial Report. ** Includes building lease activity which can affect comparability of information presented above. Page 318 of 401 ## City of Edina ## Financial Analysis 23 ## Liquor Fund 2021 2022 2023 2024 2025 ## Cash and Investments $2,512,175 $2,098,931 $1,640,746 $1,313,223 $524,749 ## Unrestricted Net Position 1,850,907 1,605,108 1,280,931 707,647 236,114 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 ## Liquor Fund The graph above shows the cash and investment and unrestricted net position balances as of December 31, for the last five years. The Liquor Fund cash and investment balance has decreased $1,987,426 since 2021. In 2025, the Liquor Fund cash and investment balance decreased $788,474 while the unrestricted net position decreased $471,533. In addition to operations, the fund made transfers to other funds of $1,000,000 in 2025. Page 319 of 401 ## City of Edina ## Financial Analysis 24 ## Per Capita Revenues and Expenditures Below is a chart of the per capita trends in selected revenue and expenditure line items. In 2025, the intergovernmental revenue per capita increased due to more construction related grants. The property taxes per capita for 2025 increased due to an increase in property tax levy. Current and total expenditures per capita increased in 2025. 2024** 2025*** Intergovernmental revenues per capita 113 $ 463 $ Property taxes per capita * 983 1,055 Total revenue per capita 1,784 $ 2,352 $ Expenditures per capita (less debt service and capital) 1,204 $ 1,261 $ Total expenditures per capita 2,020 $ 2,659 $ ## Population 54,480 54,785 * Property taxes exclude tax increments ** 2024 per capita data uses 2023 population forecast from Metropolitan Council *** 2025 per capital data uses 2024 population forecast from the Metropolitan Council ## Per Capita Trends ## City of Edina Page 320 of 401 ## City of Edina ## Financial Analysis 25 ## Tax Capacity, Certified Tax Levy, and City Tax Rate The chart below graphs the tax capacity, certified tax levy, and City tax rate for 2021 through 2025. The tax capacity is based on total tax capacity, prior to adjustments for captured Tax Increment Financing (TIF) and fiscal disparities. The certified tax levy amount is also prior to fiscal disparity adjustments. With market values continuing to climb, the City's tax capacity increased from 2024 to 2025, by $5,824,183 or 2.8%. With certified levy increasing at a similar rate to the taxable market value over the last five years, the City's tax rate has increased slightly from 28.8% in 2021 to 30.2% in 2025. $164,716,554 $169,928,228 $190,473,325 $205,645,781 $211,469,964 $41,787,871 $45,130,036 $49,610,600 $54,166,865 $58,750,854 28.8% 28.9% 28.1% 28.4% 30.2% -5% 5% 15% 25% 35% 45% 55% 65% $- $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 2021 2022 2023 2024 2025 ## Tax Capacity, Certified Levy, and City Tax Rate ## Tax Capacity ## Certified Tax Levy ## City Tax Rate * Tax capacity and city tax rate obtained from Hennepin County taxing district information Page 321 of 401 ## City of Edina ## Financial Analysis 26 ## Governmental Activities The chart below presents the minimum annual principal payments required to retire long-term liabilities. 202620272028202920302031-20352036-20402041-20452046-20502051-2054 ## G.O. Bonds $1,930,000$2,665,000$3,345,000$3,085,000$1,850,000$8,150,000$10,370,00$9,190,000$10,215,00$9,790,000 ## PIR Bonds 2,058,0002,275,0002,451,0002,430,0002,410,0009,830,0004,915,000645,000-- ## PPR/HIA Bonds 1,605,0001,375,0001,430,0001,485,0001,545,0008,705,0004,725,0002,910,000-- ## TIF Bonds 280,000290,000300,000315,000325,0001,820,0005,070,0003,740,000-- ## MSA Bonds 535,000560,000590,000620,000650,0003,770,0002,745,000--- $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 ## Debt Service Funds -Maturities Page 322 of 401 ## City of Edina ## Emerging Issues 27 ## Executive Summary The following is an executive summary of financial related updates to assist you in staying current on emerging issues in accounting and finance. This summary will give you a preview of the new standards that have been recently issued and what is on the horizon for the near future. The most recent and significant updates include: • Accounting Standard Update – GASB Statement No. 103 – Financial Reporting Model ## Improvements GASB has issued GASB Statement No. 103 relating to changes in financial reporting requirements. The changes provide clarity, enhance the relevance of information, provide more useful information for decision-making, and provide for greater comparability amongst government entities. • Accounting Standard Update – GASB Statement No. 104 – Disclosure of Certain Capital ## Assets GASB has issued GASB Statement No. 104 relating to capital asset disclosures. The disclosures required by this Statement provide users of the financial statements with essential information about certain types of capital assets. The following are extensive summaries of the current updates. As your continued business partner, we are committed to keeping you informed of new and emerging issues. We are happy to discuss these issues with you further and their applicability to your City. Page 323 of 401 ## City of Edina ## Emerging Issues 28 Accounting Standard Update – GASB Statement No. 103 – Financial Reporting Model ## Improvements The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government's accountability. This Statement also addresses certain application issues. This Statement addresses 5 areas of the financial statements (1) Management's Discussion and Analysis (MD&A), (2) Unusual or Infrequent Items, (3) Presentation of the Proprietary Fund Statement of Revenues, Expenses, and Changes in Fund Net Position, (4) Major Component Unit Information, and (5) Budgetary Comparison Information. This Statement continues the requirement that the MD&A precede the basic financial statements as part of the Required Supplementary Information (RSI). This Statement requires that the information presented in MD&A be limited to the related topics discussed in five sections: (1) Overview of the Financial Statements, (2) Financial Summary, (3) Detailed Analyses, (4) Significant Capital Asset and Long-Term Financing Activity, and (5) Currently Known Facts, Decisions, or Conditions. The Statement stresses that detailed analyses should explain why balances and results of operations changed, rather than stating amounts and "boilerplate" discussions. This Statement describes unusual or infrequent items as transactions and other events that are either unusual in nature or infrequent in occurrence. Furthermore, governments are required to display the inflows and outflows related to each unusual or infrequent item separately as the last presented flow(s) of resources prior to the net change in resource flows in the government-wide, governmental fund, and proprietary fund statements of resource flows. This Statement requires that the proprietary fund statement of revenues, expenses, and changes in fund net position continue to distinguish between operating and nonoperating revenues and expenses. The Statement provides clarification regarding operating and nonoperating revenues and expenses. Also, this Statement requires that a subtotal for operating income (loss) and noncapital subsidies be presented before reporting other nonoperating revenues and expenses. This Statement requires governments to present each major component unit separately in the reporting entity's statement of net position and statement of activities if it does not reduce the readability of the statements. If the readability of those statements would be reduced, combining statements of major component units should be presented after the fund financial statements. This Statement requires governments to present budgetary comparison information using a single method of communication - RSI. Governments also are required to present (1) variances between original and final budget amounts and (2) variances between final budget and actual amounts. An explanation of significant variances is required to be presented in notes to RSI. GASB Statement No. 103 is effective for fiscal years beginning after June 15, 2025. Earlier application is encouraged. Information provided above was obtained from www.gasb.org. Page 324 of 401 ## City of Edina ## Emerging Issues 29 Accounting Standard Update – GASB Statement No. 104 – Disclosure of Certain Capital Assets The objective of this Statement is to provide users of government financial statements with essential information about certain types of capital assets. This Statement requires certain types of capital assets continue to be disclosed separately in the capital assets note disclosures including presentation of capital assets by major class and separate disclosure of lease assets, subscription assets, and intangible right-to-use assets. This Statement requires additional disclosures for capital assets held for sale. A capital asset is held for sale if (a) the government has decided to pursue the sale of the capital asset and (b) it is probable that the sale will be finalized within one year of the financial statement date. Governments should disclose (1) the ending balance of capital assets held for sale, with separate disclosure for historical cost and accumulated depreciation by major class of asset, and (2) the carrying amount of debt for which the capital assets held for sale are pledged as collateral for each major class of asset. GASB Statement No. 104 is effective for fiscal years beginning after June 15, 2025. Earlier application is encouraged. Information provided above was obtained from www.gasb.org. Page 325 of 401 ## City of Edina ## Hennepin County, Minnesota ## Reports on Internal Control and Compliance with ## Government Auditing Standards and ## Legal Compliance December 31, 2025 Page 326 of 401 Page 327 of 401 ## City of Edina ## Table of Contents ## Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in ## Accordance with Government Auditing Standards 1 ## Minnesota Legal Compliance 3 Schedule of Findings and Responses on Internal Control and Legal Compliance 4 Page 328 of 401 Page 329 of 401 1 ## Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of ## Financial Statements Performed in Accordance with ## Government Auditing Standards ## Independent Auditor's Report ## Honorable Mayor and Members of the City Council ## City of Edina ## Edina, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards), the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Edina, Minnesota as of and for the year ended December 31, 2025, and the related notes to financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated June 5, 2026. ## Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the City's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did identify certain deficiencies in internal control, described in the accompanying Schedule of Findings and Responses on Internal Control that we consider to be a material weakness as audit finding 2025-001. Page 330 of 401 ## Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. ## City's Response to Finding Government Auditing Standards requires the auditor to perform limited procedures on the City's response to the finding identified in our audit is described in the accompanying Schedule of Findings and Responses on Internal Control. The City's response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. ## Minneapolis, Minnesota June 5, 2026 Page 331 of 401 3 ## Minnesota Legal Compliance ## Honorable Mayor and Members of the City Council ## City of Edina ## Edina, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Edina, Minnesota as of and for the year ended December 31, 2025, and the related notes to financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated June 5, 2026. In connection with our audit, we noted that the City failed to comply with provisions of the claims and disbursements of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minnesota Statutes § 6.65, insofar as they relate to accounting matters as described in the Schedule of Findings and Responses on Internal Control as item 2025-002. Also, in connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the provisions of the contracting – bid laws, depositories of public funds and public investments, conflicts of interest, public indebtedness, miscellaneous provisions, and tax increment financing sections of the Minnesota Legal Compliance Audit Guide, insofar as they relate to accounting matters. Government Auditing Standards requires the auditor to perform limited procedures on the City's response to the legal compliance finding identified in our audit and described in the accompanying Schedule of Findings and Responses on Internal Control. The City's response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing, and not to provide an opinion on compliance. Accordingly, this communication is not suitable for any other purpose. ## Minneapolis, Minnesota June 5, 2026 Page 332 of 401 4 ## City of Edina Schedule of Findings and Responses on Internal Control and Legal Compliance ## CURRENT YEAR INTERNAL CONTROL FINDING: ## Audit Finding 2025-001 ## Criteria: Internal control that supports the City's ability to initiate record, process and report financial data consistent with the assertions of management in the financial statements requires adequate segregation of accounting duties. ## Condition: During the audit, a prior period restatement was required to adjust beginning net position and fund balance to correct an error in the prior period financial statements related to the HIA loan receivable balance that was overstated as of December 31, 2024. This could adversely affect the City's ability to present financial statements that are free of material misstatement. ## Context: This finding impacts the internal control for all significant accounting functions. ## Cause: The review of revenue balances, activity, and related financial statement presentation did not identify an error that resulted in a prior period restatement. ## Effect or Potential Effect: Internal controls affected the City's ability to initiate, record, process, and report financial data consistent with the assertions of management in the basic financial statements as a prior period restatement was required. Financial information could contain inaccurate information if reconciliations are not reviewed timely. ## Recommendation: We recommend management review all accounts closely at year-end to detect and correct misstatements of balances. ## Views of Responsible Officials: The City will review the financial statement closing and reporting process and improve internal controls over financial reporting to better identify material misstatements. Page 333 of 401 5 ## City of Edina Schedule of Findings and Responses on Internal Control and Legal Compliance ## PRIOR YEAR INTERNAL CONTROL FINDING: ## Audit Finding 2024-001 During the course of our 2024 engagement, we proposed material audit adjustments that would not have been identified as a result of the City's existing internal control system and, therefore, could have resulted in material misstatements of the City's financial statements. In order to ensure financial statements were free from material misstatement, audit adjustments were required to adjust revenues, due from other governments and deferred inflows of resources related to municipal state aid. During the course of our 2025 engagement, no material adjustments were needed. Page 334 of 401 6 ## City of Edina Schedule of Findings and Responses on Internal Control and Legal Compliance ## CURRENT AND PRIOR YEAR LEGAL COMPLIANCE FINDING: ## Audit Finding 2025-002 ## Criteria: Minnesota Statute § 471.425 requires municipalities to pay each vendor obligation according to the terms of the contract, or if no contract terms apply, within the standard payment period, which is defined as within 35 days from the date of the receipt for municipalities which have regularly scheduled board meetings at least once a month. ## Condition: We noted two invoices in our testing sample that were not paid by the City within the standard payment period, as defined by Minnesota Statutes. ## Context: Two of the twenty-five disbursements we selected for testing were not in compliance with Minnesota Statue § 471.425. ## Cause: The vendor did not provide the necessary tax identification information, W9, in a timely manner, which caused a delay in processing the payment. ## Effect or Potential Effect: The City was not in compliance with state statutes related to payment of local government bills. ## Recommendation: We recommend the City work with all departments to ensure invoices are remitted to the finance department for prompt payments. ## Views of Responsible Officials: The City will work with all departments to ensure invoices are remitted to the finance department for prompt payment. Page 335 of 401 ## City of Edina ## Audit Presentation Page 336 of 401 ## The Audit Page 337 of 401 Unmodified opinion on the City’s basic financial statements which comprise the City’s governmental activities, business-type activities, each major fund, and the aggregate remaining fund information. Financial Statements present fairly, in all material respects, the financial position and changes in the financial position of the governmental activities, business-type activities, each major fund and the aggregate remaining funds. ## Independent Auditor’s Report Page 338 of 401 ## Report in Accordance with Government Auditing Standards ## Internal Control Finding ## vPrior Period Restatement Report on Compliance for Each Major Federal Program and on Internal Control ## over Compliance Required by the Uniform Guidance vNo findings reported ## Report on Minnesota Legal Compliance Findings on compliance with legal provisions contained in the Minnesota ## Legal Compliance Audit Guide for Local Government vPayments outside of standard payment period ## Communications Letter ## Audit Communications Page 339 of 401 ## Financial Communications Page 340 of 401 ## General Fund Page 341 of 401 ## Assigned and Unassigned General Fund ## Balance Compared to Annual Expenditures Page 342 of 401 ## Assigned and Unassigned General Fund ## Balance Compared to Annual Expenditures Page 343 of 401 ## General Fund Revenues Page 344 of 401 ## General Fund Expenditures Page 345 of 401 ## General Fund Budget and Actual Page 346 of 401 ## Utilities Operations Page 347 of 401 ## Utilities Fund Page 348 of 401 ## Aquatic Center Operations Page 349 of 401 ## Aquatic Center Page 350 of 401 ## Golf Course Operations Page 351 of 401 ## Golf Course Page 352 of 401 ## Arena Operations Page 353 of 401 ## Arena Page 354 of 401 ## Liquor Operations Page 355 of 401 ## Liquor Operations Page 356 of 401 ## Liquor Fund Page 357 of 401 ## Per Capita Revenues and Expenditures Page 358 of 401 ## Tax Capacity, Certified Levy, and City Tax Rate Page 359 of 401 ## Governmental Activities ## Debt Service Funds - Maturities Page 360 of 401 ## Thank You Page 361 of 401 ## Auditor Page 362 of 401 ## Andrew Grice ## AUDIT SHAREHOLDER 952-563-6862 ## ANDY.GRICE@CREATIVEPLANNING.COM Page 363 of 401 This commentary is provided for general information purposes only, should not be construed as investment, tax or legal advice, and does not constitute an attorney/client relationship. Past performance of any market results is no assurance of future performance. The information contained herein has been obtained from sources deemed reliable but is not guaranteed. Page 364 of 401 ## Item Report June 16, 2026 ## City Council ## Item Number: 9.3 Department: Finance ## Item Activity: Action Prepared By: Pa Thao, Finance Director Item Title: Resolution 2026-31: Awarding the Sale of $9,315,000 General Obligation Bonds, Series 2026A ## Action Requested: Approve Resolution 2026-31 awarding the sale of $9,315,000 General Obligation Bonds, Series 2026A. ## Information/Background: The issuance of the City's General Obligation Bonds, Series 2016A has two purposes: • $3.3 million for the street reconstruction project of the Prospect Knolls A, C, and D; Parklawn and 72nd Street Sanitary expansion improvement projects. Payable from assessments over a 15- year term. • $6.4 million for water, sanitary sewer and stormwater costs of the street reconstruction projects and various other utility capital improvements. Payable from the three utility fund revenues over a 10-year term. Bids will be received and tabulated by the City's financial advisor, Ehlers & Associates, Inc., on Tuesday, June 16, and the results presented to the City Council that evening. The City requested bond ratings from both Moody's and S&P. Both agencies assigned "AAA" rating to this issuance. Credit strengths highlighted as "exceptionally strong" include: • Affluent and robust economic base • Very strong resident income ratio (slightly above 150% of the national median) • Ongoing commercial and residential redevelopment that continues to grow the tax base A credit challenge mentioned by S&P is moderate leverage likely to grow further because of outstanding capital needs. Both S&P's and Moody's credit reports are available upon request. A final resolution will be provided June 16th once the bond sale has been completed. ## Resources/Financial Impacts: Annual debt levy, assessments and utility revenue. ## Relationship to City Policies/Plans/Budget Pillars: Page 365 of 401 ## Strong Foundation ## Values Impact: ## Stewardship Replacing aging infrastructure at the appropriate time is sound management practice. ## Supporting Documentation: Documents marked with "Board Portal" do not meet ADA Web Content Accessibility Guidelines (URL) and are not included in the public packet. To request a board portal document, please submit a data request (URL). 1. Bond Resolution 2026-31 - GO Bonds 2026A (Board Portal) 2. Moody's Ratings Report - City of Edina, MN (Board Portal) 3. S&P Global Ratings Report - City of Edina, MN (Board Portal) Page 366 of 401 ## Item Report June 16, 2026 ## City Council ## Item Number: 9.4 Department: Finance ## Item Activity: Action Prepared By: Pa Thao, Finance Director Item Title: Resolution 2026-32: Awarding the Sale of $12,215,000 Taxable General Obligation Sales Tax ## Revenue Bonds, Series 2026B ## Action Requested: Approve Resolution No. 2026-32 awarding the sale of $12,215,000 Taxable General Obligation Sales Tax Revenue Bonds, Series 2026B. ## Information/Background: The issuance of the City's Taxable General Obligation Bonds, Series 2026B has one purpose: $12,215,000 Sales Tax Revenue Bonds to fund various projects as authorized by the Sales Tax Legislation, including improvements to Fred Richards and Braemar Parks, including Courtney Field, and to Braemar Arena in the City and paying costs of issuance of the bonds payable with sales tax collection over a 10-year term. Bids will be received and tabulated by the City's financial advisor, Ehlers & Associates, Inc., on Tuesday, June 16, and the results presented to the City Council that evening. The City requested bond ratings from both Moody's and S&P. Both agencies assigned an "AAA" rating to this issuance. Credit strengths highlighted as "resilient and strong economic base that continues to grow and supports exceptional financial stability" include: • Affluent, robust and diverse economic base • Very strong resident income ratio (slightly above 150% of the national median) • Economic resilience and integration into the Minneapolis–St. Paul region • Ongoing commercial and residential redevelopment that continues to grow the tax base A credit challenge mentioned by both rating agencies is moderate but rising debt and long-term liabilities as major capital plans continue. Both S&P's and Moody's credit reports are available upon request. A final resolution will be provided June 16th once the bond sale has been completed. ## Resources/Financial Impacts: ## Local Sales Tax Revenue ## Relationship to City Policies/Plans/Budget Pillars: Page 367 of 401 ## Strong Foundation ## Values Impact: ## Stewardship Replacing aging infrastructure at the appropriate time is sound management practice. ## Supporting Documentation: Documents marked with "Board Portal" do not meet ADA Web Content Accessibility Guidelines (URL) and are not included in the public packet. To request a board portal document, please submit a data request (URL). 1. Bond Resolution 2026-32 - Edina 2026B (Board Portal) 2. Moody's Ratings Report - City of Edina, MN (Board Portal) 3. S&P Global Ratings Report - City of Edina, MN (Board Portal) Page 368 of 401 ## Item Report June 16, 2026 ## City Council ## Item Number: 9.5 Department: Community Development ## Item Activity: Action Prepared By: Cary Teague, Community Development Director Item Title: Zoning Ordinance Amendment, Rezoning & Site Plan for 4200 76 th ## Street West (Salvation ## Army) ## Action Requested: Waive second reading and approve the Ordinance Amendment, and the Resolution granting approval of the Rezoning and Site Plan. ## Information/Background: The Salvation Army is proposing to remodel and reuse the existing 28,000 square foot building at 4200 76 th Street West into an 18,425 square foot Salvation Army retail store with a 9,434 square foot warehouse and indoor drop off. There are no plans to alter the site plan or exterior of the existing building. The request requires the following: 1. Zoning Ordinance Amendment to allow secondhand stores to exceed 2,500 square feet in size in the PCD-Planned Commercial District. 2. Rezoning the site from PID, Planned Industrial District to a PCD, Planned Commercial District. 3. Site Plan Review. Staff supports the Planning Commission recommendation to amend the Ordinance to allow secondhand stores to exceed 2,500 square feet in the PCD-2 and PCD-3 Districts, and leave the restriction on the size requirement in the PCD-1 District. 4200 76th Street, Salvation Army-Ordinance Amendment, Rezoning and Site Plan Review | Better ## Together Edina ## Supporting Documentation: Documents marked with "Board Portal" do not meet ADA Web Content Accessibility Guidelines (URL) and are not included in the public packet. To request a board portal document, please submit a data request (URL). ## 1. Staff Report to Planning Commission, May 13, 2026 ## 2. Proposed Plans ## 3. Applicant Narrative (Board Portal) ## 4. Traffic and Parking Study (Board Portal) ## 5. Staff Presentation Page 369 of 401 ## Staff Report Date: May 13, 2026 ## To: Planning Commission ## From: Cary Teague, Community Development Director Subject: Zoning Ordinance Amendment, Rezoning & Site Plan – 4200 76 th ## Street West - (Salvation Army) Staff Recommendation: Approval of the Zoning Ordinance Amendment, Rezoning and Site Plan for Salvation Army. ## Information/Background: The Salvation Army is proposing to remodel and reuse the existing 28,000 square foot building at 4200 76 th Street West into an 18,425 square foot Salvation Army retail store with a 9,434 square foot warehouse and indoor drop off. There are no plans to alter the site plan or exterior of the existing building. The request requires the following: 1. Zoning Ordinance Amendment to allow secondhand stores to exceed 2,500 square feet in size in the PCD-Planned Commercial District. 2. Rezoning the site from PID, Planned Industrial District to a PCD, Planned Commercial District. 3. Site Plan Review. ## SUPPORTING INFORMATION ## Surrounding Land Uses Northerly: Multi-family Condominiums; Zoned PRD-4, Planned Residential District and guided High Density Residential. Easterly: Multi-family Apartments; Zoned PUD, Planned Industrial and guided Office-Residential. Southerly: LA Fitness & the Edina Fire Station; Zoned PID, Planned Industrial and guided Office- Residential. Westerly: Office/Bank; Zoned PID, Planned Industrial and guided Office-Residential. ## Existing Site Features The subject property is 2 acres in size, contains a single-story office building built in 1969 with a large surface parking lot. Page 370 of 401 ## Planning Guide Plan designation: OR, Office Residential Zoning: PID, Planned Industrial ## Issues/Considerations: ## Rezoning As demonstrated below there is a mixture of zoning districts on this portion of 76 th Street. The property to the east is a multifamily residential PUD; to the south is property zoned PID but consist of an Edina Fire Station and LA fitness (similar to a commercial use, but allowing in PID); and to the west is a bank zoned PID (banks are also allowed in a commercial zoning district). The proposed use would be consistent with the existing uses on the block. Per Section 36-216 of the City Code, the Commission may recommend approval by the council based upon, but not limited to, the factors below. Is consistent with the comprehensive plan. The proposed rezoning is consistent with the Comprehensive Plan. The Comprehensive Plan guides this site for OR, Office Residential land uses. The following page describes the land use, development character and density. Limited retail is considered a secondary use. ## Site Page 371 of 401 ## Categories Description, Land Uses Development Character and Guidelines ## Density and ## Intensity ## OR ## Office Residential Transitional areas along major thoroughfares or between higher intensity districts and residential districts. Many existing highway-oriented commercial areas are anticipated to transition to this more mixed- use character. Primary uses are offices, attached or multifamily housing. Secondary uses: Limited retail and service uses (not including “big box" retail), limited industrial (fully enclosed), institutional uses, parks and open space. Upgrade existing streetscape and building appearance, improve pedestrian and transit environment. Encourage structured parking and open space linkages where feasible; emphasize the enhancement of the pedestrian environment. 20 – 75 residential dwelling units/acre The Salvation Army is not a big‑box retailer. It is a non‑profit charitable organization that operates thrift stores rather than large‑format retail superstores. Will not be detrimental to properties surrounding the tract. The site plan and building would not change. The existing building would be utilized as well as the existing parking lot. Landscaping will be added to enhance the site. There are several uses in the area that are somewhat similar to retail, including a bank to the west and a health club to the south. Will not result in an overly intensive land use. The building size would remain the same, a large portion would be used for storage and drop off. The parking requirements would be met. A traffic and parking study was done by Stantec and concludes that the existing roadways would support the project, and there would be enough parking. (See page 7-1 in the attached traffic study.) The proposed secondhand store and donation drop off would generate less traffic than the existing LA fitness located across the street. Will not result in undue traffic congestion or traffic hazards. Traffic study was done by Stantec and concludes that the existing roadways can support the project. (See attached traffic study.) Conforms to the provisions of this section and other applicable provisions of this Code. Assuming the change to the Zoning Ordinance to allow the proposed use, the project would conform to the PCD-2 ordinance standards. The side yard setback is an existing condition. Page 372 of 401 Provides a proper relationship between the proposed improvements, existing structures, open space and natural features. There would be no building alteration or change in the parking lot. There will be added landscaping to enhance the appearance of the site. Zoning Ordinance Amendment. Per Sec. 36-608 (47) of the Edina Zoning Ordinance “Secondhand stores, not exceeding 2,500 square feet of gross floor area, but excluding pawn shops” are a permitted use in the PCD 1-3, Planned Commercial Zoning districts. The applicant is proposing a Zoning Ordinance Amendment that would allow secondhand stores to exceed 2,500 square feet in size in the PCD-Planned Commercial District. Below is the proposed amendment; it would apply to all PCD Zoning Districts. Section 1. Chapter 36, Article VIII, Division 8, Sec. 36-608 is hereby amended as follows: Sec. 36-608. - Principal uses in the PCD-1 subdistrict. (47) Secondhand stores, not exceeding 2,500 square feet of gross floor area, but excluding pawn shops. Staff supports the ordinance amendment; secondhand stores, like Salvation Army or Goodwill, function the same as any other retail use. Staff conducted contacted Eden Prairie, St. Louis Park, Richfield and Bloomington. All allow secondhand stores in their commercial zoning districts. They do not differentiate new vs. secondhand retail. Eden Prairie allows retail in an industrial zone with a PUD with limited retail square feet. Edina is the only city among our neighboring border cities that limit square feet and call out secondhand stores as a distinct retail category. Page 373 of 401 ## Compliance Table ## City Standard (PCD-2) ## Proposed Setbacks (Structure) Front (76th) Side (West) Side (East) ## Rear 50 feet 20 feet 25 feet 25 feet 50 feet 15 feet (existing condition) 20 feet (existing condition) 95 feet Parking Stalls Retail - 1/250 s.f. (74 required) Warehouse – 1/2000 s.f. (5 required) 79 stalls required 80 stalls existing ## FAR 1.5% .32% ## Building Coverage 30% 32% (existing condition) ## Site Plan Review ## Parking Based on the City Code requirement, Section 36-1311, the proposed parking spaces meet City Code. An 18,425 square foot retail store with a 9,434 square foot warehouse would require 79 parking stalls. The existing site provides 80 parking stalls. The parking study concludes that 54 parking stalls would be adequate. ## Site Circulation/Access/Traffic Primary access to the proposed development would be off 76 th Street. No changes are proposed from the existing conditions. Stantec conducted a traffic study. The study concludes that the proposal can be supported by the existing roadways. (See attached traffic study.) ## Landscaping Based on the perimeter of the site, 32 overstory trees would be required. The proposed plans show 32 existing and proposed overstory trees on site. A full complement of understory shrubs and bushes are also proposed. Page 374 of 401 ## Living Streets/Multi-Modal Consideration Sec. 36-1274. - Sidewalks, trails and bicycle facilities. (a) In order to promote and provide safe and effective sidewalks and trails in the City and encourage the use of bicycles for recreation and transportation, the following improvements are required, as a condition of approval, on developments requiring the approval of a final development plan or the issuance of a conditional use permit pursuant to article V of this chapter: (1) It is the policy of the City to require the construction of sidewalks and trails wherever feasible so as to encourage pedestrian and bicycle connectivity throughout the City. Therefore, developments shall provide sidewalks and trails which adjoin the applicant's property: a. In locations shown on the City's sidewalk and trail plan; and b. In other locations where the council finds that the provision of such sidewalks and trails enhance public access to mass transit facilities or connections to other existing or planned sidewalks, trails or public facilities. (2) Developments shall provide sidewalks between building entrances and sidewalks or trails which exist or which will be constructed pursuant to this section. (3) Developments shall provide direct sidewalk and trail connections with adjoining properties where appropriate. (4) Developments must provide direct sidewalk and trail connections to transit stations or transit stops adjoining the property. (5) Design standards for sidewalks and trails shall be prescribed by the engineer. (6) Nonresidential developments having an off-street automobile parking requirement of 20 or more spaces must provide off-street bicycle parking spaces where bicycles may be parked and secured from theft by their owners. The minimum number of bicycle parking spaces required shall be five percent of the automobile parking space requirement. The design and placement of bicycle parking spaces and bicycle racks used to secure bicycles shall be subject to the approval of the city engineer. Whenever possible, bicycle parking spaces shall be located within 50 feet of a public entrance to a principal building. (b) The expense of the improvements set forth in subsection (a) of this section shall be borne by the applicant. The City’s Comprehensive Plan identifies a new sidewalk on the north side of 76 th ## Street. Therefore, a boulevard-style sidewalk should be installed on the site. This shall be made a condition of approval. Page 375 of 401 ## PRIMARY ISSUES/STAFF RECOMMENDATION ## Primary Issues For this project, the City of Edina has complete discretion to approve or deny this request. A case can be made for both approval and denial of this project. Findings for both approval and denial of this project are provided for the Planning Commission and City Council to consider. • Is the Zoning Ordinance Amendment Reasonable? Yes. Staff would support the Ordinance Amendment for the following reasons: 1. Secondhand stores are currently allowed in the PCD zoning district at a limited scale. 2. Secondhand stores, like Salvation Army or Goodwill, function the same as any other retail use. 3. The adjacent Cities of Eden Prairie, St. Louis Park, Richfield and Bloomington, all allow secondhand stores in their commercial zoning districts. They do not differentiate between new vs. secondhand retail. 4. Pawnshops would continue to be prohibited. • Is the Proposed Rezoning to PCD-2 Reasonable? Yes. Staff supports the request for the following reasons: 1. The findings for rezoning per Section 36-216 of the City Code would be met. 2. The Rezoning would not be detrimental to properties surrounding this site. 3. The site plan and building would not change. The existing building would be utilized as well as the existing parking lot. Landscaping will be added to enhance the site. 4. There are several uses on 76 th Street that are similar to retail, including a bank to the west and a health club to the south. 5. Would not result in an overly intensive land use. Page 376 of 401 ## Options for Consideration As mentioned, for this project, the City of Edina has complete discretion to approve or deny this request. A case can be made for both approval and denial of this project. The following outlines alternatives for approval and denial for the Planning Commission and City Council to consider. ## Denial ## Zoning Ordinance Amendment Recommend the City Council deny the Zoning Ordinance Amendment to allow secondhand stores in the PCD districts at any size. ## Rezoning and Site Plan Review Recommend the City Council deny the Rezoning and Site Plan based on the following findings: 1. The proposed land use is not appropriate for this site. 2. Retail sales and other uses allowed in the PCD-2 Zoning District are not appropriate for this area. ## Approval ## Zoning Ordinance Amendment Recommend the City Council approve the Zoning Ordinance Amendment to allow secondhand stores in the PCD districts at any size. Approval is based on the following findings: 1. Secondhand stores are currently allowed in the PCD zoning district at a limited scale. 2. Secondhand stores, like Salvation Army or Goodwill, function the same as any other retail use. 3. Edina’s regulations on secondhand store would be consistent with adjacent cities of Eden Prairie, St. Louis Park, Richfield and Bloomington. 4. Pawnshops would continue to be prohibited. ## Rezoning and Site Plan Review Recommend the City Council approve the Rezoning and Site Plan based on the following findings: 1. The findings for rezoning per Section 36-216 of the City Code would be met. Page 377 of 401 2. Would not be detrimental to properties surrounding the tract. 3. The site plan and building would not change. The existing building would be utilized as well as the existing parking lot. Landscaping will be added to enhance the site. 4. There are several uses in the area that are similar to retail, including a bank to the west and a health club to the south. 5. Would not result in an overly intensive land use. Approval is subject to the following Conditions: 1. The Final Site Plans must be consistent with the plans date stamped March 20, 2026. 2. The Final Landscape Plan must be consistent with the approved plan and meet all minimum landscaping requirements per Chapter 36 of the Zoning Ordinance. A performance bond, letter-of-credit, or cash deposit must be submitted for one and one-half times the cost amount for completing the required landscaping, screening, or erosion control measures at the time of any building permit. The property owner is responsible for replacing any required landscaping that dies after the project is built. 3. All donations must be dropped off and stored inside the building. 4. There shall be no outside storage or outside collection areas, including collection boxes, and temporary trailers used for collection. 5. A boulevard-style sidewalk must be constructed along 76 th Street. Sidewalk must be 6 feet minimum width with a 5-foot minimum width boulevard, subject to approval of the city engineer. 6. No truck loading shall be allowed on 76 th Street. ## Staff Recommendation Staff recommends approval of the Ordinance Amendment, Rezoning and Site Plan subject to the findings and conditions above. Deadline for a City decision: July 21, 2026 Page 378 of 401 ## Proposed Site Plan Page 379 of 401 ## Landscape Plan Page 380 of 401 ## EdinaMN.gov ## Ordinance Amendment, Rezoning, & Site Plan 4200 76 th ## Street West (Salvation Army)e Page Style Page 381 of 401 ## Zoning Map & Site ## Location ## Site ## Location Page 382 of 401 ## Land Use Map ## & Site Location ## Site ## Location Page 383 of 401 ## Existing Building Page 384 of 401 ## Proposed Site Plan Page 385 of 401 ## Proposed Landscape ## Plan Page 386 of 401 ## Request Requires Zoning Ordinance Amendment to allow secondhand stores to exceed 2,500 square feet in size in the PCD-Planned Commercial District. Rezoning the site from PID, Planned Industrial District to a PCD, Planned Commercial District. Site Plan Review. Page 387 of 401 ## Pyramid of Discretion Page 388 of 401 ## Zoning Ordinance Compliance Table Page 389 of 401 ## Primary Issues Is the Zoning Ordinance Amendment Reasonable? Is the Proposed Rezoning to PCD-2 Reasonable? Page 390 of 401 ## Land Use Description for Office Residential Page 391 of 401 ## Staff Recommendation Motion to close the public hearing on June 7, 2026, and continue action to the June 26, 2026, City Council agenda. Page 392 of 401 ## Ordinance 2026-8: Amending Chapter 36, Article VIII, Division 8, Section 36-609 ## The City Of Edina Ordains: Section 1. Chapter 36, Article VIII, Division 8, Sec. 36-609 is hereby amended to add the following: Sec. 36-609. Principal uses in the PCD-2 subdistrict. (42) Secondhand stores but excluding pawn shops. Section 2. This ordinance is effective immediately. ## Summary for Publication: n/a Page 393 of 401 ## Resolution 2026-27: Rezoning & Site Plan BE IT RESOLVED by the City Council of the City of Edina, Minnesota, as follows: ## Section 1. BACKGROUND 1.01. The Salvation Army is proposing to remodel and reuse the existing 28,000 square foot building at 4200 76th Street West into an 18,425 square foot Salvation Army retail store with a 9,434 square foot warehouse and indoor drop off. There are no plans to alter the site plan or exterior of the existing building. 1.02. The subject property is legally described as Tract 1, Registered Land Survey No. 1129, Hennepin ## County Minnesota 1.03. To accommodate the request, the following is requested: • Rezoning the site from PID, Planned Industrial District to a PCD-2, Planned Commercial District. ## • Site Plan Review 1.04. On May 13, 2026, the Planning Commission held a public hearing and recommended approval of the Rezoning. Vote: 4 Ayes and 2 Nays. 1.05. On June 2, 2026, the City Council held a public hearing and considered the requests. 1.06. On June 16, 2026, the City Council approved the requests. ## Section 2. FINDINGS 2.01. Approval is based on the following findings: 1. The findings for rezoning per Section 36-216 of the City Code would be met. 2. Would not be detrimental to properties surrounding the tract. 3. The site plan and building would not change. The existing building would be utilized as well as the existing parking lot. Landscaping will be added to enhance the site. 4. There are several uses in the area that are similar to retail, including a bank to the west and a health club to the south. 5. Would not result in an overly intensive land use. ## Section 3. APPROVAL NOW THEREFORE, it is hereby resolved by the City Council of the City of Edina, approves the Rezoning and Site Plan as proposed. Approval is subject to the following conditions: Page 394 of 401 1. The Final Site Plans must be consistent with the plans date stamped March 20, 2026. 2. The Final Landscape Plan must be consistent with the approved plan and meet all minimum landscaping requirements per Chapter 36 of the Zoning Ordinance. A performance bond, letter-of-credit, or cash deposit must be submitted for one and one-half times the cost amount for completing the required landscaping, screening, or erosion control measures at the time of any building permit. The property owner is responsible for replacing any required landscaping that dies after the project is built. 3. All donations must be dropped off and stored inside the building. 4. There shall be no outside storage or outside collection areas, including collection boxes, and temporary trailers used for collection. 5. A boulevard-style sidewalk must be constructed along 76th Street. Sidewalk must be 6 feet minimum width with a 5-foot minimum width boulevard, subject to approval of the city engineer. 6. No truck loading shall be allowed on 76th Street. Adopted by the City Council June 16, 2026. Page 395 of 401 ## Item Report June 16, 2026 ## City Council ## Item Number: 9.6 Department: Community Development ## Item Activity: Action Prepared By: Cary Teague, Community Development Director ## Item Title: Ordinance 2026-10 Amendment Regarding Reasonable Accommodations ## Action Requested: Grant first reading of the Ordinance Amendment. ## Information/Background: The Americans with Disability Act (ADA) and Federal Fair Housing Act (FHA) require cities to ensure individuals who have disabilities have equal access to housing and city programs or services. The ADA requires equal access to city-provided programs, services, or property. The FHA applies to equal opportunity to use and enjoy housing. Courts have interpreted the FHA to require consideration of accommodation from zoning requirements if that may afford the individual the opportunity to live in a residential dwelling. If a specific disability-related barrier prevents an individual from achieving either of these goals, the individual is permitted under the applicable federal law to request accommodation to address the barrier they face. They may request a waiver or modification of city regulations, policies, services, programs, or procedures, including zoning and housing regulations. Federal law sets the standard for evaluating these requests and cities are not required to grant requests for reasonable accommodation if they do not meet legal standards. However, federal law does not contain specific instructions for how a city must process these requests. The purpose of this ordinance is to establish a formal process for handling accommodation requests according to federal legal standards. This will provide clarity to the public regarding how individuals may submit a reasonable accommodation request. ## Supporting Documentation: ## None Page 396 of 401 ## Ordinance 2026-10 Amendment Regarding Reasonable ## Accommodations ## The City Council of Edina, Minnesota Ordains: Section 1. Chapter 2 - ADMINISTRATION of the Edina City Code is hereby amended to add a new Article XI to read as follows: ## Article XI – REASONABLE ACCOMMODATION Sec. 2-796. - Policy and intent. The city has authority and a legitimate interest to impose regulations, policies, and procedures protecting the public health, safety, and welfare, including regulating the use of land and housing within its boundaries, and to establish programs and services beneficial to its community. It is the policy and intent of the city to ensure that persons with disabilities have a process by which to seek reasonable accommodation when programs or services may not be equally accessible to them or when the application of city regulations, policies, or procedures may not allow fair and equal access to housing pursuant to the Americans with Disabilities Act and the Federal Fair Housing Act, including any amendments to such Acts. Sec. 2-797. - Definitions. The following words, terms, and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Disability means those disabilities or handicaps [PA1] which are recognized under the Americans with Disabilities Act or the Federal Fair Housing Act, including amendments to such Acts, as applicable. Person means an individual with a disability. Reasonable accommodation means a waiver or modification to the city’s regulations, policies, services, programs, or procedures, including zoning and housing regulations, that is reasonable and necessary to allow a person to have equal opportunity to use and enjoy housing and city programs and services without fundamentally altering the nature of the city’s regulations, policies, services, programs, or procedures or otherwise imposing an undue financial or administrative burden on the city. Sec. 2-798. - Process. a. Application. A person or their authorized representative, or an organization, company, corporation, or other legal entity providing or owning housing for the benefit of a person(s) may apply for a reasonable accommodation on an application form provided by the city. Forms must be submitted to the City Community Development Director. The application Page 397 of 401 shall include a detailed explanation of the specific modification or waiver sought and how that modification or waiver is both reasonable and necessary to provide a person with a qualifying disability with equal access or use of city programs or services, or fair and equal access to the specific housing available to the person, as applicable. If there is a request to exceed any City zoning regulations, the application shall include an updated survey per City Policy for surveys. The applicant should address the factors outlined in part (b) of this section. If the request requires additional city reviews or approvals, the applicant shall file the reasonable accommodation request concurrently with those other applications. b. City Review. Withing 15 business days of receiving an application, city staff, in consultation with the city attorney, shall determine whether an application is complete or if additional information is needed, contact the applicant for such information before deeming such application complete. Within sixty (60) days of receipt of a completed application, City shall mail to the applicant a decision granting or denying the accommodation requested, or granting an alternative reasonable accommodation, based on the following factors: 1. Whether there is a qualifying disability under the applicable federal law; 2. Whether the request is necessary to allow the person equal opportunity to use and enjoy a dwelling or live in a particular residential neighborhood as individuals without disabilities, or to allow a person equal access and use of city programs or services as individuals without disabilities, as applicable; 3. Whether the request is reasonable in scope and nature considering: i. Whether the request would constitute a fundamental alteration of the nature of a city’s regulations, policies, services, programs, or procedures applicable to the request, including as to the request’s impact on surrounding uses; ii. Whether the request would impose an undue financial or administration burden on the city; iii. Any alternatives that may meet the need of the person without causing undue financial or administrative burden on the city or a fundamental alteration of the city’s regulations, policies, services, programs, or procedures applicable to the request; and 4. Any other information that may have bearing on the request, as determined by the city in compliance with applicable law. Applicants may supplement their application with additional information bearing on the request at any time before the City issues its written decision. c. Written Decision. The City’s decision shall be in writing and include notice of the right to appeal the decision pursuant to part (d) of this section. The decision shall be mailed to the applicant and, if a zoning-related decision, mailed to all owners of property immediately adjacent to the property that is the subject of the request a maximum of 10 days following the decision. Page 398 of 401 d. Conditions. A granted reasonable accommodation does not run with the land unless the city identifies in its written decision that the accommodation would be physically integrated into the residential structure such that it cannot be easily removed or altered. If a future owner or occupant desires to keep a reasonable accommodation not running with the land, they must apply to the city under part (a) of this section. The city may also require in its written decision that the applicant record a covenant agreeing to comply with certain conditions related to the factors for approval for a reasonable accommodation granted with respect to the use of real property. e. Appeal. An applicant or immediately adjacent property owner receiving notice of a reasonable accommodation decision may appeal to the city council by submitting a written request setting forth fully the grounds for appeal to the City Community Development Director within 10 days after the decision is mailed to the aggrieved party. The City Council will hold a public hearing within sixty (60) days of receiving a written request for appeal to reconsider the decision based on the factors outlined in part (b) of this section. The applicant and the appealing party may present testimony or evidence at this hearing. f. No Fees. No fees shall be charged for an application for a reasonable accommodation or an appeal thereof. g. Noncompliance. Failure to apply for a reasonable accommodation prior to initiating any use of property that is in violation of city code does not preclude the city from taking any criminal or civil action to enforce such violations of city code. [PA2] The City Community Development Director may also at any time revoke or modify a granted reasonable accommodation if any of the conditions of such accommodation are violated. Revocation or modification of a granted reasonable accommodation is appealable within 10 days after notice of revocation or modification as set forth in part (e) of this section. Section 2. Effective date. This ordinance becomes effective immediately upon its passage and publication. First reading: June 16, 2026 Second reading: ## Published: ## Summary for Publication: The Americans with Disability Act (ADA) and Federal Fair Housing Act (FHA) require cities to ensure individuals with disabilities have equal access to housing and city programs or services. The ADA requires equal access to city-provided programs, services, or property. The purpose of this ordinance is to establish a formal process for handling reasonable accommodation requests according to federal standards. This will provide clarity to the public regarding how individuals may submit a reasonable accommodation request. The full ordinances are available by contacting the City Clerk at sallison@EdinaMN.gov. Page 399 of 401 Approved for summary publication by the Edina City Council June 16, 2026. Page 400 of 401 ## Item Report June 16, 2026 ## City Council ## Item Number: 10.1 Department: Public Works ## Item Activity: Information Prepared By: Andrew Scipioni, Transportation Planner ## Item Title: Advisory Communication: Wooddale Avenue Bike Lane Project ## Action Requested: None. ## Information/Background: Approved by the Transportation Commission May 28, 2026 ## Approved Work Plan Item: No Council Charge: N/A ## Recommendation: Wooddale Avenue is a major north-south corridor and presents an opportunity to invest in our community’s bike network. Council has and will hear concerns about the overlay options provided by staff. The ETC would like to provide our support of the project and an important consideration when moving forward. Specifically, the ETC recommends that Council adopt a protected bike lane, which includes both a vertical and horizontal separation element. In particular, the section between Wooddale Lane and W 56th Street sees the highest traffic and is the most important to protect. This protected bike lane aspect of the project is critical to increase ridership, enhance safety, and ensure the project meets its full potential. Items not on the approved work plan: Council action is rarely taken mid-year for items not on the current approved work plan. Action is only taken if Council chooses to discuss the Advisory Communication at the Council meeting and provides specific direction through a Council vote. Commissions are encouraged to submit new initiative proposals through the annual work plan process. ## Supporting Documentation: Documents marked with "Board Portal" do not meet ADA Web Content Accessibility Guidelines (URL) and are not included in the public packet. To request a board portal document, please submit a data request (URL). ## None Page 401 of 401