2022
ANNUAL REPORT
Fiscal Year Ended Dec. 31, 2022
fDEN PRAIRIE [I
Message from the City Manager
I am pleased to present the City of Eden Prairie 2022 Annual Report. Through a combination of graphics and plain language, this publication provides a high-level, easy-to-understand snapshot of the City’s fnances.
Sincerely,
BY THE NUMBERS
Rick Getschow City Manager
43,363 Police calls
3,426 Fire calls
7,117 Building permits issued
About the City of Eden Prairie
The City of Eden Prairie is home to more than 64,000 residents, 2,500 businesses, outstanding schools, and a multitude of natural and man-made amenities. With its fourishing economy, engaged community, and quality-of-life rating consistently higher than local and national benchmarks, life is good in Eden Prairie.
5,195 Property appraisals completed
43 parks, 134 miles of trails, 510 lane miles of City streets maintained
2 City of Eden Prairie 2022 Annual Report
City Finances
This report provides fnancial results for the following accounts:
General Fund
City s primary operating fund
Property Taxes
Capital Projects Funds
Funds for acquisition or construction of major capital infrastructure
Debt Service Funds
Funds collected from taxes and other sources to pay debt
Enterprise Funds
User-fee funds collected from external customers
The median single-family home (MSFH) in Eden Prairie is valued at $430,400, and the 2022 City property tax for a MSFH is $1,424, an increase of 6.1% or $82 compared to 2021. When compared to MSFH values of similar cities in the metro area, Eden Prairie property taxes are among the lowest.
$2,500
City Tax 2022
Governmental Revenues and Expenditures
Revenues for all funds except Enterprise, Internal Service and Fiduciary Funds totaled $76,758,561, an increase of 2.6% versus 2021. This can be attributed to strong performance in licenses and permits, property tax revenue, and Community Center memberships steadily rebuilding post-pandemic. Expenditures for all funds except Enterprise, Internal Service and Fiduciary Funds totaled $73,244,589, an increase of 5.6% versus 2021. This can be attributed to wage and beneft increases as well as the ongoing maintenance of roads and trails, the Nesbitt Preserve Park splash pad, repairing tennis and basketball courts throughout City parks, and an LED light conversion at Miller Park. The City is fnancially sound and maintained its net position for 2022.
5-Year Revenue Comparison
5-Year Expenditure Comparison
$1,000 $500 GOLDEN VALLEY INVER GROVE HEIGHTS MAPLEWOOD BURNSVILLE SAVAGE BLOOMINGTON APPLE VALLEY OAKDALE MINNETONKA EAGAN SHOREVIEW EDEN PRAIRIE LAKEVILLE WOODBURY SHAKOPEE MAPLE GROVE PRIOR LAKE EDINA PLYMOUTH CHANHASSEN
$2,000 $1,500
$90,000,000 $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 Other Charges for Services 2018 2019 2020 2022 2021 - - - -- - - -- - -Debt Service Capital Outlay Parks and Recreation Intergovernmental Revenue Licenses and Permits Public Works Fire Police Special Assessments Property Taxes Community Development Administration City of Eden Prairie 2022 Annual Report 3 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 2018 2019 2022 2021 2020
General Fund Revenue
Where the Money Comes From
71% Property Taxes
10% Licenses and Permits
9% Charges for Services
10% Intergovernmental Revenue
Budgeted Revenue: $54,446,067
Actual Revenue: $55,637,307
Actual revenue was 102.2% of the budgeted amount. Property taxes and licenses and permits exceeded projections due to conservative budgeting, and intergovernmental revenue exceeded projections due to state and local grants received. Charges for Services was slightly less than budgeted due to the continuing impact of the pandemic on parks and recreation programming, specifcally resulting in lower Community Center memberships than in prior years. Charges for Services is steadily increasing as compared to 2020 and 2021.
General Fund Revenues 2022 2021 2020
Property Taxes $39,685,634 $37,795,569 $36,263,433 Licenses and Permits 5,303,467 5,858,459 4,996,872 Intergovernmental Revenue 5,345,840 5,353,219 6,238,109 Charges for Services 5,201,248 4,156,921 2,464,886 Other 101,118 600,101 1,040,313 Total $55,637,307 $53,764,269 $51,003,613
4 City of Eden Prairie 2022 Annual Report
General Fund Expenditures
How the Money is Spent General Fund Expenditures 2022 2021 2020 9% Administration 13% Fire 5% Community Development 33% Police 27% Parks and Recreation 13% Public Works Administration $4,880,588 $4,652,491 $4,547,110 Community Development 2,412,940 2,304,990 2,431,612 Fire 6,841,419 6,481,923 6,439,103 Parks and Recreation 13,635,118 12,343,285 11,084,484 Police 17,053,157 16,145,234 15,357,194 Public Works 6,562,592 6,026,323 5,991,750 Total $51,385,814 $47,954,246 $45,851,253 Budgeted Expenditures: $52,664,085 Actual Expenditures: $51,385,814 Actual expenditures were 97.6% of budget. Total 2022 Capital Improvement Expenses:
Signifcant Projects Over $350K Pavement Management $5,193,722 Duck Lake Road Reconstruction $4,092,634 Systemwide Water Meter Changeout $2,107,002 Lift Station Rehabilitation Program $608,092 Well 17 Construction $515,450 Trail Maintenance $426,110 Nesbitt Preserve Park Splash Pad $386,903 East City Center LED Light Conversion $370,278 Miller Park LED Light Conversion $364,674 City of Eden Prairie 2022 Annual Report 5
$19,659,149
Enterprise Funds
Enterprise Funds account for the City’s utilities (water, wastewater, stormwater) and liquor operations, which are run like businesses, relying on fees and charges for revenue to cover expenditures.
Utilities
Eden Prairie’s water, wastewater and stormwater utilities serve approximately 20,000 residential, commercial and industrial accounts. The City’s water storage capacity is 12.5-million gallons and is supplied by a system of 15 wells with a capacity of 28-million gallons per day.
Water Utility Financial Results
Water usage decreased from 2.43-billion gallons to 2.41-billion gallons due to a larger amount of rainfall in 2022 versus 2021. Rates also increased 3% in 2022. Total operating expenses (excluding depreciation) were 143% of the $7,244,444 budgeted, and $1,110,266 more than 2021 due to costs associated with the Citywide water meter change out project, increases in the City’s pension liability, cost of gas and electric, and cost of chemicals used to treat water.
Wastewater Utility Financial Results
In 2022, wastewater revenue increased $56,721, or 1% versus 2021. Total operating expenses (excluding depreciation) were 112.9% of the $5,927,568 budgeted, and $892,347 more than 2021. Disposal charges are the largest expense, totaling $4,159,931. Metropolitan Council Environmental Services establishes monthly disposal costs on a metro-wide basis. For 2022, the disposal fee increased 2.7%.
Stormwater Utility Financial Results
In 2022, stormwater revenue increased $139,193, or 3.8%, due to a rate change. Total operating expenses (excluding depreciation) were 97.2% of the $2,060,535 budgeted and $313,726 more than 2021.
6 City of Eden Prairie 2022 Annual Report $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Water Water Water Depreciation Expense Revenue 2020 2021 2022 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Wastewater Wastewater Wastewater Depreciation Expense Revenue 2020 2021 2022 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Stormwater Stormwater Stormwater Depreciation Expense Revenue 2020 2021 2022
Municipal Liquor Store Operations
The City’s three municipal liquor stores comprise one of the largest municipal off-sale operations in the State of Minnesota. Eden Prairie Liquor profts contribute to the fnancial well-being of the City by funding important capital projects. City leaders believe municipal-owned liquor operations help to protect the health and safety of youth by placing emphasis on preventing sales to underage people.
Overall liquor store sales totaled $11,753,806 in 2022, a 1% increase versus 2021; the City transferred $800,000 in profts to the Capital Improvement Project fund. Over the past 10 years, $8.4-million in liquor store profts have funded various capital projects, including improved lighting at Miller Park, construction of a new Round Lake Park building and trail maintenance.
Long-Term Debt
-36.3% versus 2021
$13,165,000 of refunding bonds were
paid off in
2022.
Since 2003, Moody’s Investor Services has assigned its highest rating, Aaa, to the City of Eden Prairie’s bonds. In 2014, Eden Prairie secured a second AAA bond rating from Standard and Poor’s Financial Services. Reasons for the consistent bond ratings include Eden Prairie’s substantial and diversifed tax base, strong fnancial operations, low debt burden and strengths in fexibility with budget reserves, liquidity, management stability and fnancial policies.
Long-Term Debt Outstanding 2022 2021 General Obligation $3,673,000 $4,891,000 Revenue 10,615,000 10,965,000 Special Assessment 2,087,000 2,575,000 Tax Abatement 11,940,000 26,030,000 Total $28,315,000 $44,461,000
City of Eden Prairie 2022 Annual Report 7
