City of Eden Prairie, Minnesota
2023 ANNUAL REPORT
Fiscal Year Ended Dec. 31, 2023
Message from the City Manager
I am pleased to present the City of Eden Prairie 2023 Annual Report. Through a combination of graphics and plain language, this publication provides a high-level, easy-to-understand snapshot of the City’s finances.
Sincerely,
Rick Getschow City Manager
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 flourishing economy, engaged community, and quality-of-life rating consistently higher than local and national benchmarks, life is good in Eden Prairie.
CITY SERVICES
Provided in 2023
3,272 fire calls
45,765 police calls
6,603 building permits issued
5,116 property appraisals completed
43 parks, 134 miles of trails, 510 lane miles of City streets maintained
2 City of Eden Prairie 2023 Annual Report
City Finances
This report provides financial 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 $513,200, and the 2023 City property tax for a MSFH is $1,524, an increase of 7% or $100 compared to 2022. When compared to MSFH values of similar cities in the metro area, Eden Prairie property taxes are among the lowest. Eden Prairie also has the lowest cumulative tax levy percentage increase over the last 14 years when compared to other cities of similar size.
Cumlative Tax Levy % Increases 2009–2023
Governmental Revenues and Expenditures
Revenues for all funds except Enterprise, Internal Service and Fiduciary Funds totaled $77,573,575, an increase of 1.1% versus 2022. 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 $74,330,356, an increase of 1.5% versus 2022. This can be attributed to wage and benefit increases which were offset by decreased costs on construction projects in 2023. The City is financially sound and maintained its net position for 2023.
5-Year Revenue Comparison
$90,000,000
5-Year Expenditure Comparison
$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
90% 80% 70% 60% 50% 40% 30% 20% 10% 0 EDEN PRAIRIE APPLE VALLEY MAPLE GROVE
$50,000,000 $40,000,000 $30,000,000
$10,000,000 $0
$80,000,000 $70,000,000 $60,000,000
$20,000,000
2022 2023 2021 2019 2020 2019 2022 2023 2021 2020 Other Charges for Services Intergovernmental Revenue Licenses and Permits Special Assessments Property Taxes Debt Service Capital Outlay Parks and Recreation Public Works Fire Police Community Development Administration
City of Eden Prairie 2023 Annual Report 3 EDINA ST. LOUIS PARK BROOKLYN PARK BLAINE EAGAN BURNSVILLE BLOOMINGTON LAKEVILLE MINNETONKA WOODBURY PLYMOUTH
General Fund Revenue
Revenue: $52,878,745
Actual Revenue: $55,902,448 (5.7% more than projected)
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 more than budgeted due to the steady increase in recreation program participation since the pandemic.
4 City of Eden Prairie 2023 Annual Report Budgeted
General Fund Revenues 2023 2022 2021 Property Taxes $41,383,475 $39,685,634 $37,795,569 Licenses and Permits 5,054,344 5,303,467 5,858,459 Intergovernmental Revenue 1,822,526 5,345,840 5,353,219 Charges for Services 5,817,974 5,201,248 4,156,921 Other 1,824,129 101,118 600,101 Total $ 55,902,448 $55,637,307
$53,764,269
74% Property Taxes 11% Charges for Services 9% Licenses and Permits 3% Other 3% Intergovernmental Revenue
Where the Money Comes From
General Fund Expenditures
Expenditures: $54,443,657
Expenditures: $53,401,278 (98.1% of
Total 2023 Capital Improvement Expenses: $22,405,947
Significant Projects Over $350K
City of Eden Prairie 2023 Annual Report 5 Budgeted
Actual
budget) General Fund Expenditures 2023 2022 2021 2020 Administration $4,890,058 $4,880,588 $4,652,491 $4,547,110 Community Development 2,561,689 2,412,940 2,304,990 2,431,612 Fire 6,841,664 6,841,419 6,421,157 6,439,103 Parks and Recreation 14,440,321 13,635,118 12,343,285 11,084,484 Police 17,874,806 17,053,157 16,145,234 15,357,194 Public Works 6,792,740 6,562,592 6,026,323 5,991,750 Total $ 53,401,278 $51,385,814 $47,893,480 $45,851,253
How the Money is Spent 33% Police 13% Public Works 27% Parks and Recreation 9% Administration 13% Fire 5% Community Development
Pavement Management $4,933,657 Round Lake Park Building Construction $3,105,454 Systemwide Water Meter Changeout $1,976,940 Well 17 Construction $1,648,481 Pioneer Trail Reconstruction $1,499,813 Eden Prairie Road $1,221,178 Watermain Replacement Singletree and Prairie Center $795,880 Drive Intersection Willow Creek Bridge Replacement $776,524
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 increased from 2.41-billion gallons to 2.55-billion gallons due to a larger amount of rainfall in 2022 versus 2023. Rates also increased 3% in 2023. Total operating expenses (excluding depreciation) were 133% of the $7,514,359 budgeted due to the increased cost of chemicals used to treat water, and $360,095 less than 2022 due to the Citywide water meter changeout project.
Wastewater Utility Financial Results
In 2023, wastewater revenue increased $207,868, or 3% versus 2022. Total operating expenses (excluding depreciation) were 102.1% of the $6,162,358 budgeted, and $401,805 less than 2022. Disposal charges are the largest expense, totaling $4,458,823. Metropolitan Council Environmental Services establishes monthly disposal costs on a metro-wide basis. For 2023, the disposal fee increased 7.2%.
Stormwater Utility Financial Results
In 2023, stormwater revenue increased $109,025, or 2.9%, due to a rate change. Total operating expenses (excluding depreciation) were 99.3% of the $2,201,737 budgeted and $184,501 more than 2022.
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
$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
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
2021 2022 2023 2021 2022 2023 2021 2022 2023
Water Depreciation Wastewater Depreciation Stormwater Depreciation Water Expense Wastewater Expense Stormwater Expense Water Revenue Wastewater Revenue Stormwater Revenue
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 profits contribute to the financial 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 $11,766,007 in 2023, a 0.1% increase versus 2022; the City transferred $800,000 in profits to the Capital Improvement Project fund. Over the past 10 years, $8.05-million in liquor store profits have funded various capital projects, including construction of the new Round Lake Park Building, new play equipment at Round Lake Park and Willow Park, and trail maintenance.
Long-Term Debt
-10.9% versus 2022
The outstanding debt funded park improvements and Fire Station 4 in southwest Eden Prairie. Since 2003, Moody’s Investors Service 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 extensive and diversified tax base, low amount of rapidly amortized debt and strong financial operations.
City of Eden Prairie 2023 Annual Report 7
Long-Term Debt Outstanding 2023 2022 General Obligation $2,455,000 $3,673,000 Revenue 9,995,000 10,615,000 Special Assessment 1,589,000 2,087,000 Tax Abatement 11,185,000 11,940,000 Total $25,224,000 $28,315,000
About this Report Awards
The information for this report is from the City of Eden Prairie’s Annual Comprehensive Financial Report, which was prepared in accordance with Generally Accepted Accounting Principles and applicable legal requirements for the year ended Dec. 31, 2023. This report provides information to the public about City of Eden Prairie services and the costs to provide these services. For a complete review of the City’s financial position for 2023, consult the Annual Comprehensive Financial Report.
edenprairie.org/Budget
The City received the following awards (valid for one year only) from the Government Finance Officers Association (GFOA):
• Certificate of Achievement for Excellence in Financial Reporting for the Annual Comprehensive Financial Report, for the year ended Dec. 31, 2022.
• Distinguished Budget Presentation award for the Two-Year Budget, for the fiscal years beginning Jan. 1, 2022 and 2023.
• Award for Outstanding Achievement in Popular Annual Financial Reporting, for the fiscal year ended Dec. 31, 2022.
City of Eden Prairie
8080 Mitchell Road
Eden Prairie, MN 55344-4485
952-949-8300
TTY: 952-949-8399
