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Home My WebLink AboutCity Council - 05/05/2026Eden Prairie City Council Workshop Agenda 5:30 p.m. Tuesday, May 5, 2026 City Center Heritage Rooms, Council Chambers 8080 Mitchell Road Eden Prairie, MN 55344 ATTENDEES City Council Members: Mayor Ron Case, Council Members Kathy Nelson, Mark Freiberg, PG Narayanan, and Lisa Toomey City Staﬀ: City Manager Rick Getschow, Public Works Director Robert Ellis, Community Development Director Julie Klima, Parks and Recreation Director Amy Markle, Police Chief Matt Sackett, Fire Chief Scott Gerber, Administrative Services/HR Director Alecia Rose, Communications Manager Joyce Lorenz, City Attorney Maggie Neuville, and Recorder Sara Potter WORKSHOP AGENDA Heritage Rooms 1. Historical Property Inventory/Status 5:30 to 5:45 p.m. 2. 2025 Audit Report and Financial Statements 5:45 to 6:30 p.m. Council Chambers 3. Open Podium 4. Adjournment Eden Prairie City Council Meeting Annotated Agenda 7 p.m. Tuesday, May 5, 2026 City Center Council Chambers 8080 Mitchell Road Eden Prairie, MN 55344 ATTENDEES City Council Members: Mayor Ron Case, Council Members Kathy Nelson, Mark Freiberg, PG Narayanan, and Lisa Toomey City Staﬀ: City Manager Rick Getschow, Public Works Director Robert Ellis, Community Development Director Julie Klima, Parks and Recreation Director Amy Markle, Police Chief Matt Sackett, Fire Chief Scott Gerber, Administrative Services/HR Director Alecia Rose, and City Attorney Maggie Neuville MEETING AGENDA I. Call the Meeting to Order II. Pledge of Allegiance III. Open Podium Invitation IV. Proclamations and Presentations A. Life Saving Award for citizens Susan Bayer and Olivia Chase B. Senior Awareness Month Proclamation V. Approval of Agenda and Other Items of Business VI. Minutes A. City Council Workshop held Tuesday, April 21, 2026 B. City Council Meeting held Tuesday, April 21, 2026 VII. Consent Calendar A. Prairie Lakes Corporate Center. Approve second reading of Ordinance for PUD Amendment with waivers on 13.07 acres; adopt Resolution for a Site Plan Amendment on 13.07 acres, approve the ﬁrst amendment to the Development Agreement B. Adopt Resolution authorizing entry into labor agreement with Law Enforcement Labor Services (LELS) CITY COUNCIL MEETING AGENDA May 5, 2026 C. Adopt Resolution approving application to conduct oﬀ-site lawful gambling by Eden Prairie Hockey Association at Schooner Days D. Approve license agreement with AT&T for telecommunications at Eden Prairie Senior Center E. Approve professional services agreement to conduct a Housing Study in preparation for the 2050 Comprehensive Plan with Stantec F. Approve grant agreement for Aﬀordable Housing Trust Fund grant with MN Housing G. Award Plaza Drive Street Reconstruction Project to BKJ Land Co II dba BKJ Excavating H. Approve access and trail easement agreement for Town Center Water Tower Trail with VA8 Cascade, LLC I. Approve purchase of security camera system and installation at Water Treatment Plant from Paladin Technologies VIII. Public Hearings and Meetings IX. Payment of Claims X. Ordinances and Resolutions XI. Petitions, Requests and Communications XII. Appointments XIII. Reports A. Report of Council Members B. Report of City Manager 1. 2025 Annual Comprehensive Financial Report C. Report of Community Development Director D. Report of Parks and Recreation Director E. Report of Public Works Director F. Report of Police Chief G. Report of Fire Chief CITY COUNCIL MEETING AGENDA May 5, 2026 H. Report of City Attorney XIV. Other Business XV. Adjournment City Council Agenda Cover Memo Date: May 5, 2026 Section: Proclamations and Presentations Item Number: IV.A. Department: Police and Fire ITEM DESCRIPTION Award for civilians REQUESTED ACTION No formal action requested SUMMARY Chief Matt Sackett and Chief Scott Gerber will award citizens Susan Bayer and Olivia Chase with Letters of Recognition for their actions on October 25, 2025 when they helped save the life of a man in cardiac arrest at Life Time. Olivia Chase lives out of state and is not able to attend tonight’s meeting. Her award will be mailed to her. After the chiefs read the award, the Mayor is welcome to join them at the podium to present the award letter and for photos. ATTACHMENTS None City of Eden Prairie Hennepin County, Minnesota PROCLAMATION Senior Awareness Month, May 2026 WHEREAS, the increasing number of seniors in Eden Prairie bring many opportunities and challenges for all components of our City – families, businesses, and government; and WHEREAS, every segment of our society is inﬂuenced by the needs, resources and expertise of our senior; and awareness improves participation and action; and WHEREAS, our Eden Prairie seniors play a pivotal role in formal and informal education, sharing years of accumulated experience and wisdom which will impact our future; and WHEREAS, the community wishes to celebrate and acknowledge the contributions and accomplishments of the seniors in our community and recognize the organizations that serve older adults; and WHEREAS, Senior Awareness Month recognizes that seniors are an integral part of our community. NOW, THEREFORE, I, Ron Case, Mayor of the City of Eden Prairie, Minnesota, do hereby proclaim May 2026 as Senior Awareness Month Ronald A. Case, Mayor On behalf of Council Members Kathy Nelson Mark Freiberg PG Narayanan Lisa Toomey Eden Prairie City Council Workshop Minutes – Unapproved 5:30 p.m. Tuesday, April 21, 2026 City Center Heritage Rooms, Council Chambers 8080 Mitchell Road Eden Prairie, MN 55344 ATTENDEES City Council Members: Mayor Ron Case, Council Members Kathy Nelson, Mark Freiberg, PG Narayanan, and Lisa Toomey City Staﬀ: City Manager Rick Getschow, Public Works Director Robert Ellis, Community Development Director Julie Klima, Parks and Recreation Director Amy Markle, Police Chief Matt Sackett, Fire Chief Scott Gerber, Administrative Services/HR Director Alecia Rose, Communications Manager Joyce Lorenz, City Attorney Maggie Neuville, and Recorder Sara Potter WORKSHOP AGENDA Heritage Rooms 1. Design Standards Case explained two legislative issues have been progressing through the tax committee: an extension of the Tax Increment Financing (TIF) district deadline for Eden Prairie Mall, and a $2 million bonding request to house regional emergency equipment. The TIF district approved for the Eden Prairie mall has faced delays, the City is asking for a two year extension. Narayanan asked if the City requested funds for the Highway 4 and 5 intersection in the bonding bill. Ellis conﬁrmed it was not requested this year. Case asked how much was previously requested. Ellis answered $5 million for design and right of way acquisition. Toomey asked if a study was complete. Ellis conﬁrmed there was a concept plan and approval for an interchange was received. The City is now looking into details for the interchange. Case stated the Council has noticed some recent development projects appear diﬀerent than the design when the project was approved. The Council requested a design guidelines review workshop session to provide feedback on design features and see if any guidelines should be modiﬁed. Klima explained the last design review process occurred in 2016. There was an extensive eﬀort to review building and site design guidelines. The design guidelines document was created as a result to proactively communicate the City’s expectations. This document provides a menu of options and visual examples for developers early in the process. Toomey asked what feedback has been received from developers and asked if the design guidelines are unique to Eden Prairie. Klima conﬁrmed positive feedback has been received as developers come with a concept plan close to what the City is looking for. The guidelines help streamline costs and review and approval timeline. Other Cities do have similar design guidelines. Narayanan asked if the City has recourse for a developer not conforming to design guidelines. Klima stated the developers aren’t expected to follow every guideline, they can select guidelines that work for the site. The City Council identiﬁed its highest design guideline priorities which were adopted into the City Code. Tonight the Council will provide feedback on features of recent projects that are viewed favorably or could be improved. City Code currently does not have building or architectural design standards for townhomes, adding townhome standards can be discussed. Klima displayed a photo of the Fox and the Grouse in the Golden Triangle and asked for the Council to provide feedback. Freiberg asked if the building accents were wood. Klima conﬁrmed the accents are a ﬁber cement type of panel. Case noted he liked the wood looking elements. Toomey noted she liked the windows. Nelson stated it would be helpful for developers to provide a rendering from nearby major roads. That view is seldom provided beforehand and would be helpful as it’s how most of the public will see the building. Nelson asked if the colors could be changed in the future. Klima stated based on inquiries submit on older buildings, the colors may be changed in future redevelopment. Klima displayed a photo of the Elevate building and asked for the Council’s feedback. Freiberg noted the building ﬁts into the lot perfectly. Narayanan liked the uniformity of the building. Nelson stated the design is more classic and timeless compared to the Fox and the Grouse. Case provided the building looks good from the road. He enjoyed the color schemes, insets, and its deﬁned top, middle, and bottom sections. Case added the Council does not want all buildings to be expensive to build and therefore expensive to rent as aﬀordability is also important. It’s a balancing act. Klima noted design often goes through several iterations between Planning Commission, City Council, and after. Nelson added it’s not a good idea for everything to look the same as the City will appear dated in a few decades. Klima displayed a photo of Martin Blu. Toomey asked who built it. Case answered the same group as Elevate. Narayanan noted he did not like the shade of brown used. Nelson liked the incorporation of trees and greenery. Toomey asked when the building was built. Klima conﬁrmed Martin Blu was built in 2014. Freiberg noted his dislike for the gas station close by. Case stated the gas station was there before the apartments were built. Case added that he liked this buildings uniqueness and deﬁned top, middle, and bottom. Klima next displayed a photo of the Ellie oﬀ Eden Prairie Road. Nelson asked if this building has aﬀordable units. Klima conﬁrmed 25 percent of units are aﬀordable. Case noted the building looks plain from Eden Prairie Road, the view from the courtyard is better. Klima next displayed a photo of Paravel. Case noted he liked the diﬀerentiation and stone features. It compliments the neighboring Flagstone nicely. Nelson noted she likes the landscaping and greenery. Narayanan liked the distinguished top but noted more accents should have been added to the solid white section. Klima next displayed a photo of Applewood Pointe. Toomey asked how old Applewood Pointe is. Klima conﬁrmed it was built in 2019. Toomey asked if the building is for senior living. Getschow conﬁrmed that is correct. Case noted he liked the traditional look of a gable pitched roof. Narayanan asked if a pitched roof is more expensive. Klima conﬁrmed a pitched roof is more expensive, which is why multifamily buildings often do not have gables. Narayanan noted there is too much beige and more contrast is needed. Nelson stated the porte-cochère adds livability so residents aren’t subject to the elements when getting into a car. Case added that Applewood Pointe compliments the nearby Trail Point Ridge/Common Bond building. Klima next displayed a photo of the Trail Point Ridge/Common Bond building. Nelson asked how many aﬀordable units are included. Klima conﬁrmed 90 percent of the units are aﬀordable. Nelson noted it looks very nice for the amount of aﬀordability included. Case stated he did not like the beige panels. Klima conﬁrmed the panels are ﬁber cement board, there has since been a code amendment stating this material cannot be the most dominant. Klima next displayed a concept rendering of the Roers City West apartment building that was approved but construction has not yet started. Nelson stated she liked the trees. Case noted he enjoyed the brick and would be interested in seeing a rendering from the road. Klima displayed a photo of Flagstone Senior Living. Freiberg commented the building looks better in person. Toomey noted it complimented nearby Paravel well. Case added the stone is high quality. Narayanan liked the deﬁned top. Klima next displayed a photo of EP Senior Living. Nelson noted there are many walkable amenities nearby. Klima explained the City is receiving more calls from developers regarding townhome development. There are currently no material or building standards required for townhomes. Klima displayed a photo of Sheldon townhomes and pointed out the pitched roofs and tuck under garages. Case noted he likes the design but the buildings are crowded. Nelson commented they look better in person. Klima displayed a photo of Kinsley townhomes oﬀ Dell Road. Toomey asked if the construction was complete. Klima conﬁrmed construction is nearly complete. Case noted the appearance would be improved with more brick. Most of the public sees only the solid white back of the townhomes from Pioneer Trail. More landscaping or color variation would have helped. Klima next displayed a concept rendering of Chestnut Townhomes which were recently approved. Nelson noted she liked the trees. Klima explained Lennar Homes is currently in discussion to redevelop the CH Robinson property. Klima displayed photos of Lennar Homes townhomes in Rosemount, Waconia, Victoria, and Woodbury and pointed out architectural features. Narayanan noted the City should request the developer add extra insulation for properties within a certain distance of Flying Cloud Airport to mitigate noise. Klima conﬁrmed that is a current requirement per City Code. Klima displayed townhome photos from another builder, DR Horton, in Rosemount, Shakopee, and Cottage Grove. Case commented its diﬃcult to build to a design that appeases everyone. Klima displayed a concept rendering of townhomes by Ron Clark Construction to be constructed in Plymouth. Nelson noted she did not like the outdoor stairs as they would get icy in winter. Case commented he liked the use of diﬀerent color grey and stone in the front. Klima explained Staﬀ has researched townhome design guidelines for nearby cities. Some cities have broad language such as materials shall be of good construction. Other cities get more prescriptive such as listing percent minimums and maximums of building material categories. Klima asked if the Council is interested in enacting townhome design guidelines for Eden Prairie. Case noted any design guideline enacted would likely raise the cost of homes at a time when aﬀordable housing is a priority. Getschow added the legislature could also remove the City’s ability to mandate design guidelines. Klima noted sustainability features also apply to many projects. Nelson stated she is more interested in pursuing sustainability features than design guideline features. Case expressed his interest in reviewing design ideas from other cities that have minimal cost impact. The Council summarized their interest in seeing more variation in townhomes, providing a variety of housing for all income levels, and seeing a concept drawing of future properties from nearby roads as this is the view most of the public sees. The Council thanked Klima for her time. Council Chambers 2. Open Podium – John Mallo, beneﬁts of red spectrum street lighting Mallo explained nighttime bat activity is hindered by white lights. Studies have shown the beneﬁt of red lighting for bat activity compared to white lighting. Red lighting allows for better human visibility. Energy consumption is also lowered. Mallo asked the City to change park lighting to red spectrum, especially in parks near lakes and wooded areas. Case noted it sounds like a good idea and said the City can conduct further research. Case commented he found a risk for migratory birds in his research. Freiberg asked how expensive red lights are. Mallo conﬁrmed he did not know. The council thanked Mallo for his time. 3. Adjournment Eden Prairie City Council Unapproved Minutes 7 p.m. Tuesday, Apr. 21, 2026 City Center Council Chambers 8080 Mitchell Road Eden Prairie, MN 55344 ATTENDEES City Council Members: Mayor Ron Case, Council Members Kathy Nelson, Mark Freiberg, PG Narayanan, and Lisa Toomey City Staﬀ: City Manager Rick Getschow, Public Works Director Robert Ellis, Community Development Director Julie Klima, Parks and Recreation Director Amy Markle, Police Chief Matt Sackett, Fire Chief Scott Gerber, Administrative Services/HR Director Alecia Rose, and City Attorney Maggie Neuville MEETING AGENDA I. Call the Meeting to Order Mayor Case called the meeting to order at 7:00 PM. All Council Members were present. II. Pledge of Allegiance III. Open Podium Invitation IV. Proclamations and Presentations A. Arbor Day proclamation Getschow introduced Parks and Recreation Director Amy Markle to discuss an event this weekend. Markle explained the City’s Arbor Day celebration is Saturday, April 25, from 10 AM to 1 PM at Staring Lake Park. Residents are encouraged to celebrate Arbor Day with a walk around Staring Lake Park and enjoy free seedlings and compost. Case stated Arbor Day provides an opportunity to celebrate the importance of trees and forests. The city has been recognized as a Tree City USA by the National Arbor Day Foundation, and desires to continue its stewardship and tree planting practices. Case read aloud a proclamation declaring April 25, 2026, as Arbor Day in the City of Eden Prairie. V. Approval of Agenda and Other Items of Business MOTION: Nelson moved, seconded by Freiberg to approve the agenda as amended. Motion carried 5-0. VI. Minutes CITY COUNCIL UNAPPROVED MINUTES April 21, 2026 MOTION: Toomey moved, seconded by Narayanan, to approve the minutes of the Council workshop held Tuesday, April 7, 2026, and the City Council meeting held Tuesday, April 7, 2026, as published. Motion carried 5-0. VII. Consent Calendar A. Clerk’s List B. Approve professional services agreement for Wash Water Tank Recoating Project engineering and inspection services with Badger State Inspection C. Approve Purchase of Supervisory Control and Data Acquisition Hardware from Software House International D. Approve purchase of lift station panel for Bearpath Lift Station E. Approve construction contract for Cedar Hills bike park with Pathﬁnder Trail Builders F. Approve Flying Cloud Drive trail design agreement with WSB, Inc. G. Award construction contract for 2026 Homeward Hills Park Hardcourts Rehabilitation to BKJ Land Co II Inc DBA BKJ Excavating H. Approve quote for new police space, additional interview room cameras with Axon Enterprises I. Approve quote for the Police Department remodel project, public safety radio booster system from ANCOM Communications J. Approve quote and authorize procurement of Police Department remodel project vehicle key management system from Safeware K. Approve Police Department and City Center remodel project mechanical scope adjustments, change order with Weidner Mechanical L. Direct staﬀ not to waive the monetary limits on municipal tort liability established by Minnesota Statutes 466.04 M. Approve three-year term agreement for digital asset management system with PhotoShelter Freiberg stated he would like more information about agenda item L. Direct staﬀ not to waive the monetary limits on municipal tort liability established by Minnesota Statutes 466.04. He asked what the monetary limits are. Getschow stated that this item is approved by Council annually. The state statute has limits for cities where the tort liability sits. Each year, the Council directs staﬀ to not waive the monetary CITY COUNCIL UNAPPROVED MINUTES April 21, 2026 limits. If the Council chose to waive the City's statutory monetary limits on tort liability, the City would be exposed to lawsuits. Freiberg added that he knew the Council always does this, but did not know what the number is for the monetary limit. He asked Getschow to ﬁnd that number and report back at a later time. Neuville stated in general, under the statute, the limit for a single occurrence is $1.5 million. Case asked why this is a required state statute; it seems like it would be perfunctory. Getschow explained the City’s insurance carrier requires it. MOTION: Narayanan moved, seconded by Toomey to approve Items A-M on the Consent Calendar. Motion carried 5-0. VIII. Public Hearings and Meetings A. Prairie Lakes Corporate Center by Kraus Anderson. Adopt Resolution No. 2026-036 for Planned Unit Development Concept Amendment on 13.07 acres, approve ﬁrst reading of an Ordinance for Planned Unit Development Amendment on 13.07 acres, adopt Resolution No. 2026-037 for Preliminary Plat on 13.07 acres, and adopt Resolution No. 2026-038 in Support of Park Dedication Fees on 13.07 acres. Getschow explained that the applicant is requesting to subdivide the existing parcel at 11010 Prairie Lakes Drive into two lots. Initially, the lot split will support reﬁnancing of the two buildings, with a possibility that one or both of the lots will be sold at a future date for redevelopment. The proposed subdivision requires waivers due to existing conditions on the site. There are no planned building, landscaping, or parking changes with this application, but a Site Plan Amendment is required to reﬂect the new property lines. The Planning Commission voted ﬁve to one to recommend approval of the project at their March 23, 2026, meeting. The applicant is present to go over the proposal with the Council and answer any questions before or after the Public Hearing. Bob Cunningham, Krause Anderson, owns the parcel under discussion. Cunningham explained the 13-acre parcel is one block that contains two oﬃce buildings, one rectangular-shaped and one parallelogram-shaped. The idea is to split this parcel into two, so Krause Anderson could reﬁnance each of these buildings individually. In all probability, the parallelogram building on the property was built in the 1980's and is not adaptive enough for reuse. It will likely be demolished and the lot will be redeveloped. Lot one has the much smaller rectangular building. Both buildings meet parking requirements and ADA requirements. Each building is fully served by utilities, and a reciprocal easement agreement would be put in place in conjunction with the replat so utilities can cross each other's sites. Building drainage for both buildings will stand alone. If the parallelogram building becomes a redevelopment parcel, that development parcel will reappear before the Council for further consideration. No matter what the project will be, it will have to be brought up to code in terms of parking, drainage, and setbacks. Currently, both buildings have direct access to adjacent roads and have room for emergency vehicles. The existing property falls within the shoreland management CITY COUNCIL UNAPPROVED MINUTES April 21, 2026 zone and will be brought back up to code if there is an additional redevelopment on the parallelogram site. Cunningham summarized the concept behind what Krause Anderson is asking is to take the 13 acres and divide it into a six-acre parcel, the northern parcel, and a seven-acre southern parcel to reﬁnance and redevelop the parallelogram building, at which point Krause Anderson will be back in front of the City Council. Case added there will be a Public Hearing, but the Council could ask questions now. MOTION: Nelson moved, seconded by Toomey to close the Public Hearing. Motion carried 5-0. Nelson asked how long it would take before the parallelogram building is torn down. Cunningham stated he currently does not know. The building has largely been vacant for a while. In all probability, Krause Anderson would not demolish the building until the proposal for redevelopment comes before the Council for approval. The building would then be demolished in conjunction with whatever the next development is. MOTION: Toomey moved, seconded Narayanan by to adopt Resolution No. 2026-36 for Planned Unity Development (PUD) Concept Amendment on 13.07 acres; and approve the ﬁrst reading of Ordinance for PUD Amendment with waivers on 13.07 acres; and adopt a Resolution No. 2026-037 for a Preliminary Plat of one parcel into two lots; and adopt Resolution No. 2026-038 in support of Park Dedication Fees; and Direct Staﬀ to prepare a Development Agreement incorporating Staﬀ and Commission recommendations and Council conditions. Motion carried 5-0. Case noted the Council will be in direct contact with residents who live near this parcel, as a proposal for this property comes forward from the developer. The Council will also be mindful of what will be developed in this area and will ensure it is a nice match for the neighborhood. This motion is simply giving the owner the opportunity to divide the properties and develop them separately. Community Development Director Julie Klima added that she would agree with all of Case's commentary and noted that Cunningham has been all about positioning this property for marketability for future development. IX. Payment of Claims MOTION: Narayanan moved, seconded by Freiberg to approve the payment of claims as submitted. Motion was approved on a roll call vote, with Freiberg, Narayanan, Toomey, Nelson, and Case voting "aye." X. Ordinances and Resolutions XI. Petitions, Requests, and Communications CITY COUNCIL UNAPPROVED MINUTES April 21, 2026 XII. Appointments XIII. Reports A. Report of Council Members B. Report of City Manager C. Report of Community Development Director D. Report of Parks and Recreation Director E. Report of Public Works Director F. Report of Police Chief G. Report of Fire Chief H. Report of City Attorney XIV. Other Business XV. Adjournment MOTION: Narayanan moved, seconded by Nelson to adjourn the meeting at 7:22 PM. Motion carried 5-0. Respectfully Submitted, ___________________ Sara Potter, Administrative Support Specialist City Council Agenda Cover Memo Date: May 5, 2026 Section: Consent Calendar Item Number: VII.A. Department: Community Development/Planning Julie Klima/Sarah Strain ITEM DESCRIPTION This is the ﬁnal review of a Site Plan Amendment and PUD Amendment to subdivide 11010 Prairie Lakes Drive into two lots. The subdivision requires waivers due to the site’s existing conditions. There are no planned buildings, landscaping, or parking changes. City Council reviewed this project at a public hearing on April 21, 2026. The project review period ends on July 2, 2026. REQUESTED ACTION Move to: • Approve the 2nd Reading of an Ordinance for a PUD Amendment with waivers on 13.07 acres; and • Adopt a Resolution for a Site Plan Amendment on 13.07 acres; and • Approve the First Amendment to the Development Agreement. SUMMARY While there are no proposed physical site changes with this application, a Site Plan Amendment and a PUD Amendment are required to approve the site details for the newly created lots. The existing parking, buildings, and landscaping will remain in the current conﬁguration. This site is currently part of a PUD, and the applicant is requesting an amendment to add the following waivers due to the new parcel conﬁguration: 1. Building Setback: The new property line will bisect an existing breezeway, creating a zero (0) foot building setback. 2. Parking Setback: The new property line creates zero (0) foot parking setbacks. 3. Number of Parking Stalls: A waiver will allow both oﬃce buildings to maintain a parking ratio of 4 stalls per 1,000 square feet, even with the reconﬁgured property lines. 4. Minimum Lot Width along a Public Roadway: The preliminary plat shows Lot 1 having 74.6 feet of frontage on Prairie Lakes Drive. ATTACHMENTS Ordinance for PUD Concept Amendment with Waivers Resolution for Site Plan Amendment First Amendment to the Development Agreement City of Eden Prairie Hennepin County, Minnesota Ordinance No. __–2026 AN ORDINANCE OF THE CITY OF EDEN PRAIRIE, MINNESOTA, AMENDING THE DESIGNATION OF CERTAIN LAND WITHIN A ZONING DISTRICT AND ADOPTING BY REFERENCE CITY CODE CHAPTER 1 AND SECTION 11.99 WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS THE CITY COUNCIL OF THE CITY OF EDEN PRAIRIE, MINNESOTA, ORDAINS: Section 1. That the land which is the subject of this Ordinance (hereinafter, the “land”) is legally described in Exhibit A attached hereto and made a part hereof. Section 2. That the land is currently designated within the Oﬃce Zoning District as reﬂected in Ordinance No. 3-98-PUD-2-98 (hereinafter “PUD-2-98-Oﬃce”). Section 3. That action was duly initiated proposing that the designation of the land be amended within the Oﬃce Zoning District as -2026-PUD-_-2026 (hereinafter "PUD-_-2026”). Section 4. The City Council hereby makes the following ﬁndings A. PUD-_-2026 is not in conﬂict with the goals of the Comprehensive Guide Plan of the City. B. PUD-_-2026 is designed in such a manner to form a desirable and uniﬁed environment within its own boundaries. C. The exceptions to the standard requirements of Chapters 11 and 12 of the City Code that are contained in PUD-_-2026 are justiﬁed by the design of the development described therein. D. PUD-_-2026 is of suﬃcient size, composition, and arrangement that its construction, marketing, and operation are feasible as a complete unit without dependence upon any subsequent unit. Section 5. The proposal is hereby adopted that PUD-2-98-Oﬃce be amended and the designation of the land shall be, and hereby is amended in the Oﬃce Zoning District as Planned Unit Development PUD-_-2026 and the legal descriptions of land in each district referred to in City Code Section 11.03, subdivision 1, subparagraph B, shall be and are amended accordingly. Section 6. The land shall be subject to the terms and conditions of that certain Development Agreement dated February 3, 1998 between Prairie Lakes Limited Partnership, a Minnesota limited partnership, and the City of Eden Prairie as amended by the terms and conditions of that certain First Amendment to Development Agreement dated May 5, 2026, entered into between Kraus Anderson, Incorporated and the City of Eden Prairie (hereinafter “Development Agreement”). The Development Agreement contains the terms and conditions of PUD-_-2026 and are hereby made a part hereof. Section 7. City Code Chapter 1 entitled “General Provisions and Deﬁnitions Applicable to the Entire City Code Including Penalty for Violation” and Section 11.99 entitled “Violation a Misdemeanor” are hereby adopted in their entirety by reference, as though repeated verbatim herein. Section 8. This Ordinance shall become eﬀective from and after its passage and publication. FIRST READ at a regular meeting of the City Council of the City of Eden Prairie on the 21st of April, 2026, and ﬁnally read and adopted and ordered published in summary form as attached hereto at a regular meeting of the City Council of said City on the 5th of May, 2026. ATTEST: David Teigland, City Clerk Ronald A. Case, Mayor Published in the Sun Sailor on the _______________, 2026. City of Eden Prairie Hennepin County, Minnesota Summary of Ordinance No. __-2026-PUD-__-2026 AN ORDINANCE OF THE CITY OF EDEN PRAIRIE, MINNESOTA AMENDING THE DESIGNATION OF CERTAIN LAND WITHIN A ZONING DISTRICT AND ADOPTING BY REFERENCE CITY CODE CHAPTER 1 AND SECTION 11.99 WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS THE CITY COUNCIL OF THE CITY OF EDEN PRAIRIE, MINNESOTA, ORDAINS: Summary: This ordinance allows amendment of the zoning designation of land located within the Oﬃce Zoning District within a Planned Unit Development District. Exhibit A, included with this Ordinance, gives the full legal description of this property Eﬀective Date: This ordinance shall take eﬀect upon publication. ATTEST: David Teigland, City Clerk Ronald A. Case, Mayor PUBLISHED in the Sun Sailor on the _________________, 2026. (A full copy of the text of this Ordinance is available from City Clerk). City of Eden Prairie Hennepin County, Minnesota Resolution No. 2026–____ RESOLUTION GRANTING SITE PLAN AMENDMENT APPROVAL FOR PRAIRIE LAKES CORPORATE CENTER BY KRAUS ANDERSON, INCORPORATED WHEREAS, Kraus Anderson, Incorporated, has applied for Site Plan Amendment approval of Prairie Lakes Corporate Center to divide the existing parcel into two lots; and WHEREAS, zoning approval for Prairie Lakes Corporate Center was granted by an Ordinance approved by the City Council on May 5, 2026; and WHEREAS, the Planning Commission reviewed said application at a public hearing at its March 23, 2026, meeting and recommended approval of said site plans; and WHEREAS, the City Council has reviewed said application at a public hearing at its April 21, 2026 meeting; and WHEREAS, the City Council hereby makes the following ﬁndings: A. The Site Plan amendment is consistent with the City's policies and objectives as reﬂected in the Comprehensive Guide Plan and City Design Guidelines. B. The Site Plan amendment is consistent with the City Code relating to zoning and the subdivision of land. C. The Site Plan amendment preserves and enhances the natural and existing built environment. D. The Site Plan amendment maintains open space to provide a desirable environment both for occupants of the site and the general public. E. The Site Plan amendment provides transitions where there are diﬀerences in land use, building mass, height, densities, and site intensity. F. The Site Plan amendment provides for safe and convenient vehicle and pedestrian traﬃc. G. The Site Plan amendment minimizes the negative impact upon other land uses. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EDEN PRAIRIE, that site plan amendment approval for property legally described in Exhibit A attached hereto is granted to Prairie Lakes Corporate Center, subject to the Development Agreement Amendment between Kraus Anderson, Incorporated, and the City of Eden Prairie, reviewed and approved by the City Council on May 5, 2026. ADOPTED by the City Council of the City of Eden Prairie this 5th day of May, 2026. Ronald A. Case, Mayor ATTEST: David Teigland, City Clerk EXHIBIT A Site Plan Legal Description: Lot 3, Block 1, Prairie Lakes Business Park, Hennepin County, Minnesota City Council Agenda Cover Memo Date: May 5, 2026 Section: Consent Calendar Item Number: VII.B. Department: Administration ITEM DESCRIPTION Resolution and Contract with the Law Enforcement Labor Services, Local #603 for Police Lieutenants. REQUESTED ACTION Move to: Adopt Resolution and authorize entry into labor agreement with Law Enforcement Labor Services (LELS). SUMMARY Negotiations occurred between the City and LELS in the fall of 2025 and winter of 2026. Through negotiations, a tentative agreement was reached and supported by staﬀ in April 2026. ATTACHMENTS Resolution City of Eden Prairie and LELS Local #603 Contract City of Eden Prairie Hennepin County, Minnesota Resolution No. 2026–____ RESOLUTION APPROVING AND IMPLEMENTING THE 2026-2028 LABOR AGREEMENT BETWEEN THE CITY OF EDEN PRAIRIE AND LAW ENFORCEMENT LABOR SERVICES (LOCAL #603) WHEREAS this is the ﬁrst Labor Agreement between the City and Law Enforcement Labor Services (Local #603) (“LELS”) governing Police Lieutenants; and WHEREAS, the City and LELS participated in contract negotiations on a Labor Agreement governing the period from January 1, 2026 through December 31, 2028 and reached a tentative agreement in April 2026 which is attached hereto as Exhibit A; and WHEREAS, the tentative agreement is subject to the approval of and implementation by the City Council in accordance with Minn. Stat. § 179A.20, subd. 5. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Eden Prairie, Minnesota that: (i) the 2026-2028 Labor Agreement between the City of Eden Prairie and Law Enforcement Labor Services (Local #603) attached as Exhibit A is hereby approved and may be executed by the Mayor and City Manager; and (ii) City staﬀ are hereby authorized to implement the agreement. ADOPTED by the City Council of the City of Eden Prairie this 5th day of May, 2026. Ronald A. Case, Mayor ATTEST: David Teigland, City Clerk 1 LABOR AGREEMENT BETWEEN THE CITY OF EDEN PRAIRIE AND LAW ENFORCEMENT LABOR SERVICES, INC. Lieutenants (LOCAL #603) Effective January 1, 2026 through December 31, 2028 2 Table of Contents ARTICLE 1. PURPOSE OF AGREEMENT ............................................................................................ 3 ARTICLE 2. RECOGNITION .................................................................................................................. 3 ARTICLE 3. UNION SECURITY ............................................................................................................ 3 ARTICLE 4. EMPLOYER SECURITY ................................................................................................... 4 ARTICLE 5. EMPLOYER AUTHORITY ............................................................................................... 4 ARTICLE 6. EMPLOYEE RIGHTS-GRIEVANCE PROCEDURE ........................................................ 5 ARTICLE 7. DEFINITIONS .................................................................................................................... 7 ARTICLE 8. SAVINGS CLAUSE ............................................................................................................ 8 ARTICLE 9. WORK SCHEDULES ......................................................................................................... 8 ARTICLE 10. SUPPLEMENTAL EMPLOYMENT PAY, CALL BACK, and ON-CALL ..................... 8 ARTICLE 11. DISCIPLINE ..................................................................................................................... 9 ARTICLE 12. SENIORITY ...................................................................................................................... 9 ARTICLE 13. PROBATIONARY PERIODS ........................................................................................... 9 ARTICLE 14. SAFETY .......................................................................................................................... 10 ARTICLE 15. INSURANCE .................................................................................................................. 10 ARTICLE 16. UNIFORMS .................................................................................................................... 10 ARTICLE 17. INJURY ON DUTY ........................................................................................................ 11 ARTICLE 18. LEAVE AND HOLIDAYS ............................................................................................. 11 ARTICLE 19 WAIVER .......................................................................................................................... 11 ARTICLE 20 DURATION ..................................................................................................................... 12 WAGE SCHEDULE ............................................................................................................................... 13 3 ARTICLE 1. PURPOSE OF AGREEMENT This AGREEMENT is entered into between the City of Eden Prairie hereinafter called the EMPLOYER, and Law Enforcement Labor Services, Inc., Local 603, hereinafter called the UNION. The intent and purpose of this AGREEMENT is to: 1.1 Establish certain hours, wages, and other conditions of employment; 1.2 Establish procedures for the resolution of disputes concerning this AGREEMENT’S interpretation and/or application; 1.3 Specify the full and complete understanding of the parties; and 1.4 Place in written form the parties' agreement upon terms and conditions of employment for the duration of this AGREEMENT. The EMPLOYER and the UNION, through this AGREEMENT, continue their dedication to the highest quality of public service. Both parties recognize this AGREEMENT as a pledge of this dedication. ARTICLE 2. RECOGNITION 2.1 The EMPLOYER recognizes Law Enforcement Labor Services, Inc. as the exclusive representative as certified by the Bureau of Mediation Services, Case No. 25PCE2328 for the following: All licensed essential employees in the job classification of Police Lieutenants employed by the City of Eden Prairie, Minnesota, who are public employees within the meaning of Minn. Stat. 179A.03, subd. 14 and supervisory employees within the meaning of Minn. Stat. 179A.03, subd. 17, excluding all confidential employees within the meaning of Minn Stat. 179A.03, subd. 4 and all other employees. ARTICLE 3. UNION SECURITY In recognition of the UNION as the exclusive representative, 3.1 The UNION will obtain written authorization from the EMPLOYEE for the deduction from wages of union dues established by the UNION. The UNION will forward the written authorization from EMPLOYEE to EMPLOYER. 3.2 The EMPLOYER will deduct the amount authorized by the EMPLOYEE and remit the amount to the appropriate designated office for the UNION commencing no later than the first pay period of the next month with proper employee authorization. 4 3.3 When an EMPLOYEE is in non-pay status for the entire pay period in which a deduction would be taken, no withholding will be made to convert that pay period from future earnings. In the case of an EMPLOYEE who is in non-pay status during only part of the pay period in which a deduction would be taken, and the wages are not sufficient to cover the full withholding, no deductions shall be made. 3.4 EMPLOYEES may revoke their dues deductions authorization immediately and at any time by contacting the UNION. The UNION will inform the EMPLOYER within 30 days of a change in dues status. 3.5 The UNION may designate certain EMPLOYEES from the bargaining unit to act as stewards and shall inform the EMPLOYER in writing of such choice. 3. 6 The UNION agrees to indemnify and hold the EMPLOYER harmless against any and all claims, suits, orders, or judgments brought or issued against the City as a result of any action taken or not taken by the City under the provisions of this Article. 3.7 The EMPLOYER will provide reasonable space on one EMPLOYEE bulletin board for union postings. Union stewards will be responsible for maintaining the designated space. All postings shall comply with City policies, including the policy on political neutrality. Postings shall first be approved by the Police Chief. ARTICLE 4. EMPLOYER SECURITY 4.1 The UNION agrees that during the life of this AGREEMENT it, nor any of the EMPLOYEES covered by this Agreement, will cause, encourage, participate in or support any strike, slow down, other interruption of or interference with the normal functions of the EMPLOYER. ARTICLE 5. EMPLOYER AUTHORITY 5.1 The UNION recognizes the right and authority of the EMPLOYER to operate and manage its affairs in all respects in accordance with its management rights, existing and future laws, and regulations of the appropriate authorities. The rights or authority which the EMPLOYER has not officially abridged, delegated, or modified by this Agreement are retained by the EMPLOYER. 5.2 The EMPLOYER retains the full and unrestricted right to operate and manage all manpower, facilities, and equipment; to establish functions and programs; to set and amend budgets; to determine the utilization of technology; to establish and modify the organizational structure; to select, direct and determine the number of personnel; to establish work schedules; and to perform any inherent managerial function not specifically limited by this AGREEMENT. 5.3 The EMPLOYER'S failure to exercise any right, prerogative, or function hereby reserved to it, or the EMPLOYER'S exercise of any such right, prerogative, or function in a particular way, shall not be considered a waiver of the EMPLOYER'S right to exercise such right, prerogative, or 5 function or preclude it from exercising the same in some other way not in conflict with the express provisions of this Agreement. 5.4 The parties recognize that all EMPLOYEES covered by this Agreement shall perform the services and duties prescribed by the EMPLOYER and shall be governed by EMPLOYER rules, policies, regulations, directives, and orders, provided that such rules, regulations, and orders are not inconsistent with the provisions of this Agreement or state or federal laws. The EMPLOYER will provide EMPLOYEES with notice of any proposed change in any policy applicable to the bargaining unit members. ARTICLE 6. EMPLOYEE RIGHTS-GRIEVANCE PROCEDURE 6.1 DEFINITION OF A GRIEVANCE A grievance is defined as a dispute or disagreement as to the interpretation or application of the specific terms and conditions of this AGREEMENT. 6.2 UNION REPRESENTATIVES The EMPLOYER will recognize representatives designated by the UNION as the grievance representatives of the bargaining unit having the duties and responsibilities established by this Article. The UNION shall notify the EMPLOYER in writing of the names of such UNION REPRESENTATIVES and of their successors when so designated. 6.3 PROCESSING OF A GRIEVANCE It is recognized and accepted by the UNION and the EMPLOYER that the processing of grievances as hereinafter provided is limited by the Job duties and responsibilities of the EMPLOYEES and shall therefore be accomplished during normal working hours only when consistent with such EMPLOYEE duties and responsibilities. The aggrieved EMPLOYEE and the UNION REPRESENTATIVE shall be allowed a reasonable amount of time without loss in pay when a grievance is investigated and presented to the EMPLOYER during normal working hours provided the EMPLOYEE and the UNION REPRESENTATIVE have notified and received the approval of the designated supervisor who has determined that such absence is reasonable and would not be detrimental to the work programs of the EMPLOYER. The designated supervisor will be notified when the steward or grievant EMPLOYEE(S) returns to the workstation and resumes duties. 6.4 PROCEDURE Grievances, as defined by Section 6.1, shall be resolved in conformance with the following procedure: Step 1. An EMPLOYEE claiming a violation concerning the interpretation or application of this AGREEMENT shall, within fourteen (14) calendar days after such alleged violation has occurred, present such grievance in writing to the Deputy Chief. The Deputy Chief will discuss and will respond in writing to the EMPLOYEE and the UNION to such Step 1 6 grievance within fourteen (14) calendar days after receipt. A grievance not resolved in Step 1 and appealed to Step 2 shall set forth the nature of the grievance, the facts on which it is based, the provision or provisions of the AGREEMENT allegedly violated, and the remedy requested and shall be appealed to Step 2 within ten (10) calendar days after the Deputy Chief’s final answer in Step 1. An answer of the EMPLOYER not provided within the specified time limits constitutes a proper denial of the grievance on the date the answer was due. Any grievance not appealed in writing to Step 2 by the UNION within ten (10) calendar days shall be considered waived. Step 2. If appealed, the written grievance shall be presented by the UNION and discussed with the Police Chief. The Police Chief shall give the UNION the EMPLOYER'S answer in writing within ten (10) calendar days after receipt of such Step 2 grievance. A grievance not resolved in Step 2 may be appealed to Step 3 within ten (10) calendar days following the Police Chief's final answer in Step 2. An answer of the EMPLOYER not provided within the specified time limits constitutes a proper denial of the grievance on the date the answer was due; Any grievance not appealed in writing to Step 3 by the UNION within ten (10) calendar days shall be considered waived. Step 3. A grievance unresolved in Step 2 and appealed in Step 3 may, by mutual agreement by the EMPLOYER and UNION, be submitted to mediation through the Minnesota Bureau of Mediation Services. Agreement to submit the grievance to mediation must be made within ten (10) calendar days of the Step 2 response. If the parties do not agree to submit the grievance to mediation within such 10-day period, the UNION may appeal the grievance to Step 4 within five (5) calendar days of the date the parties could not reach agreement. If the parties agree to submit the grievance to mediation and the grievance is not resolved by mediation, the UNION may appeal the grievance to Step 4 within ten (10) calendar days of the date that mediation ended. An answer of the EMPLOYER not provided within the specified time limits constitutes a proper denial of the grievance on the date the answer was due. Any grievance not appealed in writing to Step 4 as provided by this paragraph shall be considered waived. Step 4. A grievance unresolved in Step 2 or 3 and appealed to Step 4 shall be submitted to arbitration subject to the provisions of the Public Employment Labor Relations Act or MN Statutes Section 626.892 if the grieved matter is written disciplinary action, discharge, or termination. 6.5 ARBITRATOR'S AUTHORITY A. The arbitrator shall have no right to amend, modify, nullify, ignore, add to, or subtract from the terms and conditions of this AGREEMENT. The arbitrator shall consider and decide only the specific issue(s) submitted in writing by the EMPLOYER and the UNION and shall have no authority to make a decision on any other issue(s) not so submitted. 7 B. The arbitrator shall be without power to make a decision contrary to, or inconsistent with, or modifying or varying in any way the application of laws, rules, or regulations having the force and effect of law. The arbitrator's decision shall be submitted in writing within thirty (30) days following the close of the hearing or the submission of briefs by the parties, whichever be later, unless the parties agree to an extension. The decision shall be binding on both the EMPLOYER and the UNION and shall be based solely on the arbitrator's interpretation or application of the terms of this AGREEMENT and to the facts of the grievance presented. C. The fees and expenses for the arbitrator's services and proceedings shall be borne equally by the EMPLOYER and the UNION provided that each party shall be responsible for compensating its own representatives and witnesses. If either party desires a verbatim record of the proceedings, it may cause such a record to be made, providing it pays for the record. If both parties desire a verbatim record of the proceedings the cost shall be shared equally. 6.6 WAIVER If a grievance is not presented within the time limits set forth above, it shall be considered waived. If a grievance is not appealed to the next step within the specified time limit or any agreed extension thereof, it shall be considered settled on the basis of the EMPLOYER'S last answer. If the EMPLOYER does not answer a grievance or an appeal thereof within the specified time limits, the UNION may elect to treat the grievance as denied at that step and immediately appeal the grievance to the next step, The time limit in each step may be extended by mutual agreement of the EMPLOYER and the UNION. The UNION may not skip any step without the written consent of the EMPLOYER. 6.7 CHOICE OF REMEDY If the grievance is not submitted to or not resolved by mediation in Step 3, and if the grievance involves the suspension, demotion, or discharge of an EMPLOYEE who has completed the required probationary period, the grievance may be appealed either to Step 4 of ARTICLE VI or a procedure such as: Civil Service, Veteran's Preference, or Fair Employment. If appealed to any procedure other than Step 4 of ARTICLE VI, the grievance is not subject to the arbitration procedure as provided in Step 4 of ARTICLE VI, unless otherwise authorized by state or federal law. The aggrieved EMPLOYEE shall indicate in writing which procedure is to be utilized - Step 4 of ARTICLE VI or another appeal procedure and shall sign a statement to the effect that the choice of any other hearing precludes the aggrieved EMPLOYEE from making a subsequent appeal through Step 4 of ARTICLE VI. ARTICLE 7. DEFINITIONS 7.1 UNION: Law Enforcement Labor Services, Inc., Local 603. 7.2 EMPLOYER: The City of Eden Prairie 7.3 UNION MEMBER: A member of Law Enforcement Labor Services, Inc., Local 603. 8 7.4 EMPLOYEE: An employee whose Job classification falls within the exclusively recognized bargaining unit 7.5 BASE PAY RATE: The EMPLOYEE'S hourly pay rate exclusive of longevity and any other specialty pay allowance. 7.6 OVERTIME: Work performed at the express authorization of the EMPLOYER for a third party. ARTICLE 8. SAVINGS CLAUSE 8.1 This AGREEMENT is subject to the laws of the United States of America, the State of Minnesota, and then ordinances of the City of Eden Prairie. In the event any provision of this AGREEMENT shall be held to be contrary to law by a court of competent Jurisdiction from whose final Judgment or decree no appeal has been taken within the time provided, such provision shall be voided. All other provisions of this AGREEMENT shall continue in full force and effect. The voided provision may be renegotiated at the request of either party. ARTICLE 9. WORK SCHEDULES 9.1 The sole authority in work schedules, hours of employment, and changes thereto is the EMPLOYER. 9.2 Nothing contained in this, or any other Article, shall be interpreted to be a guarantee of a minimum or maximum of hours the EMPLOYER may assign EMPLOYEES. ARTICLE 10. SUPPLEMENTAL EMPLOYMENT PAY, CALL BACK, and ON-CALL 10.1 Employees are exempt from Fair Labor Standards Act’s provisions requiring overtime pay. 10.2 Employees may sign up to work a shift for a third party after police officers and sergeants are first given the opportunity to sign up. Employees are eligible to receive pay at one and one half (1.5) the Employee’s regular rate of pay when working a shift for a third party that would otherwise call for payment at an overtime rate for a non-exempt employee. 10.3 Employees assigned to be on-call shall receive one (1) day off with pay for each week the employee is on-call. 9 ARTICLE 11. DISCIPLINE 11.1 The EMPLOYER will discipline EMPLOYEES only for Just cause. Discipline does not have to be progressive. Discipline will be in one of the following forms: Verbal Warning; Written Warning; Final Warning; Suspension; demotion; Discharge All other employer actions will not be considered discipline. 11.2 EMPLOYEES will receive a copy of such discipline and/or notice. 11.3 An EMPLOYEE will not be required to participate in an Investigatory Interview by the EMPLOYER where the information gained from the Interview could lead to the discipline of the EMPLOYEE unless the EMPLOYEE upon their request is given the opportunity to have a third party or UNION representation present at the interview to act as a witness for the EMPLOYEE 11.4 Grievances relating to discipline shall be initiated by the UNION at Step 2 of the grievance article. ARTICLE 12. SENIORITY 12.1 Seniority shall be defined as the length of continuous service in the Job classification covered by ARTICLE II - RECOGNITION. EMPLOYEES who are promoted from a job classification covered by this AGREEMENT and return to a Job classification covered by this AGREEMENT shall have their seniority calculated on their length of service under this AGREEMENT. 12.2 Seniority will be the determining criterion for layoffs, 12.3 Seniority will be the determining criterion for recall. Recall rights under this provision will continue for twenty-four (24) months after layoff. Recalled EMPLOYEES shall have ten (10) working days after notification of recall by registered mail at the EMPLOYEE'S last known address to report to work or forfeit all recall rights. ARTICLE 13. PROBATIONARY PERIODS 13.1 All newly hired or promoted EMPLOYEES shall serve a probationary period of six (6) consecutive months of active work. Active work is defined as performing work for the EMPLOYER as a Lieutenant for six (6) consecutive months. Leaves of absence will extend this probationary period for the for the same length as the leave. Any other extensions of the 10 probationary period may not occur without the written agreement of the EMPLOYEE, EMPLOYER, and UNION. 13.2 At any time during the probationary period a newly hired EMPLOYEE may be terminated at the sole discretion of the EMPLOYER without such termination being a violation of this Agreement and such termination is not a proper subject for Article VI, (Grievance Procedure), 13.2 At any time during the probationary period a newly promoted EMPLOYEE may be demoted at the sole discretion of the EMLOYER without such demotion being a violation of this Agreement and such demotion is not a proper subject for Article VI, (Grievance Procedure). ARTICLE 14. SAFETY 14.1 The EMPLOYER and the UNION agree to jointly promote safe and healthful working conditions, to cooperate in safety matters and to encourage EMPLOYEES to work in a safe manner. 14.2 Representatives of the bargaining unit may be selected to serve on the City Safety Committee based on management approval. ARTICLE 15. INSURANCE 15.1 All eligible EMPLOYEES may participate in the EMPLOYER'S Insurance program. An eligible employee is defined as an individual who would be covered under the medical insurance coverage provisions of both the City's personnel policies and Insurance plan documents between the City and Insurer. 15.2 For the term of this agreement, the EMPLOYER will contribute toward the premium for medical, life, and Long-Term Disability Insurance on the same basis and subject to the same conditions and restrictions as the basic program for nonunion EMPLOYEES as it may be amended from time to time. ARTICLE 16. UNIFORMS 16.1 EMPLOYEES shall receive a uniform allowance of $1,200 per year. EMPLOYEES shall have the option of receiving all cash, half cash/half kept on account, or all on account. 11 ARTICLE 17. INJURY ON DUTY 17.1 The EMPLOYER, through its Worker's Compensation Insurance plan, will provide Worker's Compensation benefits as allowed by law to all EMPLOYEES. In addition, the EMPLOYER will provide for a period of up to ninety (90) days, the difference between the EMPLOYEE'S normal gross wages and the worker's compensation benefit. The first three (3) days of absence to be deducted from the EMPLOYEE'S PTO leave. ARTICLE 18. ANNUAL PAID LEAVE AND HOLIDAYS 18.1 Employees will participate in the City's leave policies on the same basis as the general non-union employee group. 18.2 Employees are not eligible to utilize leave for the purposes listed under the Earned Sick and Safe Time Act, Minn. Stat. 181.9447, subd. 1, clause (4), if the employee’s preassigned or foreseeable work duties during a public emergency or weather event would require the employee to respond to such an emergency or event., unless otherwise approved by the Chief or designee. ARTICLE 19. WAIVER 19.1 Any and all prior agreements, resolutions, practices, policies, rules and regulations regarding terms and conditions of employment, to the extent inconsistent with the provisions of this AGREEMENT, are hereby superseded. 19.2 The parties mutually acknowledge that during the negotiations which resulted in this AGREEMENT, each had the unlimited right and opportunity to make demands and proposals with respect to any terms or conditions of employment not removed by law from bargaining. All agreements and understandings arrived at by the parties are set forth in writing in this AGREEMENT for the stipulated duration of this AGREEMENT. The EMPLOYER and the UNION each voluntarily and unqualifiedly waives the right to meet and negotiate regarding any and all terms and conditions of employment referred to or covered in this AGREEMENT, even though such terms or conditions may not have been within the knowledge or contemplation of either or both parties at the time this contract was negotiated or executed. 12 ARTICLE 20. DURATION Upon its approval and implementation by the City Council of the City of Eden Prairie, this AGREEMENT and all appendices shall be effective January 1, 2026 and shall remain in full force and effect until December 31, 2028. FOR THE CITY OF EDEN PRAIRIE: FOR LAW ENFORCEMENT LABOR SERVICES, INC: ________________________________ ________________________________ Ron Case, Mayor Rick Mathwig, Business Agent ________________________________ ________________________________ Rick Getschow, City Manager Jess Irmiter, Steward ________________________________ ________________________________ Alecia Rose, Administrative Services Rob Johnston, Steward and Human Resources Director 13 APPENDIX A, WAGE SCHEDULE Existing employees will be placed in the following 2026 range with the corresponding rate as noted below for 2026. Thereafter, movement through the range will be on the same basis as the City general wage plan applicable to non-union employees. Annual market adjustments are contingent upon the EMPLOYEE’S positive performance evaluation. Nothing in this section shall preclude the EMPLOYER from setting a higher or lower entry-level wage within the range if the EMPLOYER determines that relevant experience and/or education permits such higher or lower rate. 2026 Range $141,315-$183,685 2026 Pay Rate $84.55 For 2027 and 2028, the UNION and EMPLOYER agree to negotiate wages only and the UNION shall inform the Bureau of Mediation Services of intent to negotiate the wage opener in 2026 and 2027. City Council Agenda Cover Memo Date: May 5, 2026 Section: Consent Calendar Item Number: VII.C. Department: Police Department ITEM DESCRIPTION Approval of an Application to Conduct Oﬀ-Site Gambling for Eden Prairie Hockey Association REQUESTED ACTION Adopt Resolution approving the Application to Conduct Oﬀ-Site Gambling for Lawful Gambling to be conducted by the Eden Prairie Hockey Association at Schooner Days. SUMMARY The Eden Prairie Hockey Association (EPHA) approached the City regarding its desire to sell pull- tabs at Schooner Days, a community festival occurring May 29–31, 2026 at Round Lake Park. The EPHA is working with the Eden Prairie Lions Club, Schooner Days organizer. EPHA currently has Premises permits for four locations within the City: Applebees, Champps, Old Chicago, and T. J. Hooligan’s. State law allows an organization to conduct lawful gambling on a premises other than its permitted premises for up to 12 special events in a calendar year. City approval is necessary before EPHA’s application can be submitted to the Gambling Control Board. EPHA must still complete the application process and obtain approval from the Gambling Control Board before any lawful gambling may occur at this event. EPHA has met the requirements of City Code § 5.40 and staﬀ recommends approval of the Application to Conduct Oﬀ-Site Gambling at Schooner Days, at Round Lake Park. This same permit was approved on April 1, 2025 by council for the 2025 Schooner Days event. ATTACHMENTS Resolution City of Eden Prairie Hennepin County, Minnesota Resolution No. 2026–____ RESOLUTION APPROVING AN APPLICATION TO CONDUCT OFF-SITE GAMBLING FOR LAWFUL GAMBLING TO BE CONDUCTED BY THE EDEN PRAIRIE HOCKEY ASSOCIATION AT SCHOONER DAYS WHEREAS, Eden Prairie Hockey Association holds premises permits and is licensed to conduct lawful gambling at four locations in the City of Eden Prairie; and WHEREAS, Eden Prairie Hockey Association is submitting an application to the Minnesota Gambling Control Board for approval of an Application to Conduct Oﬀ-Site Gambling at Schooner Days, a Community Festival occurring May 29-31, 2026, at Round Lake Park, 16691 Valley View Road, Eden Prairie, MN 55346; and WHEREAS, Eden Prairie Hockey Association will be responsible for operating and managing the lawful gambling activity and must comply with all applicable requirements of state law and Eden Prairie City Code § 5.40. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Eden Prairie, Minnesota that, pursuant to Minnesota Statutes Sections 349.165, subd. 5 and 349.213, subd. 2 and Eden Prairie City Coe § 5.40, the City Council does hereby approve the Application to Conduct Oﬀ-Site Gambling for the Eden Prairie Hockey Association to conduct lawful gambling at Schooner Days, a community festival occurring May 29-31, 2026 at Round Lake Park and directs the City Clerk to certify a copy of this resolution for Eden Prairie Hockey Association for inclusion with the state application. ADOPTED by the City Council of the City of Eden Prairie this 5th day of May, 2026. Ronald A. Case, Mayor ATTEST: David Teigland, City Clerk City Council Agenda Cover Memo Date: May 5, 2026 Section: Consent Calendar Item Number: VII.D. Department: Community Development/Planning Julie Klima/Sarah Strain ITEM DESCRIPTION New License Agreement with AT&T for the 8950 Eden Prairie Road Tower at the Senior Center. REQUESTED ACTION Approve the License Agreement with AT&T for the 8950 Eden Prairie Road Tower at the Senior Center SUMMARY AT&T currently has a License Agreement with the City to operate antennas and ground equipment at 8950 Eden Prairie Road. This agreement is set to expire on November 14, 2026. AT&T has applied to enter into a new License Agreement to continue operations of their existing equipment past this date. In this new License Agreement, the lease will increase 5% annually. The lease is for 5 year period with four (4) renewals for 5 years each. The total lease agreement is for 25 years. ATTACHMENTS License Agreement dated May 5, 2026 Market: MNP Cell Site Number: MNL03441 Cell Site Name: Red Rock Lake (MN) Fixed Asset Number: 10112006 LICENSE AGREEMENT THIS LICENSE AGREEMENT (“License” or “Agreement”) is entered into as of _________________, 2026, between the City of Eden Prairie, a Minnesota municipal corporation (“Licensor”) and New Cingular Wireless PCS, LLC a Delaware limited liability company (“Licensee”), (each a “Party” and collectively referred to as “the Parties”). RECITALS WHEREAS, Licensor is the owner of certain real property located in Hennepin County, Minnesota, as legally described on Exhibit A attached hereto (the “Property”) on which is situated a monopole communications tower (the “Tower”). WHEREAS, Licensor and Licensee are parties to a License Agreement dated November 14, 2006, which allows for Licensee’s maintenance of communications facilities on a portion of the Property and Tower (the “2006 License”). Licensee exercised all options to extend the 2006 License and it expires at midnight on November 14, 2026. WHEREAS, Licensee desires a non-exclusive license and agreement to continue to use portions of the Property and Tower for the purpose of constructing, operating, and maintaining a communications facility and associated equipment. WHEREAS, this License will terminate, supersede, and replace the 2006 License in its entirety as of November 14, 2026, and Licensee’s placement and maintenance of facilities on the Property and Tower will be subject only to the terms of this License. NOW, THEREFORE, in consideration of the foregoing Recitals which are incorporated herein by reference, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. PROPERTY AND PREMISES Subject to the following terms and conditions, Licensor licenses to Licensee certain space on the Property and Tower, together with non-exclusive easements for access and utilities over, under and across the Property (all of the foregoing collectively hereinafter referred to as the “Premises”) as described on Exhibit B attached hereto. 2. TERM The initial term (“Initial Term”) of this License will be for five (5) years and will commence on November 14, 2026, Subsequent renewals of the License will be for five (5) year periods (each a “Renewal Term”). The Initial Term shall automatically be extended for up to four (4) additional five (5) year terms (each 5-year term, a “Renewal Term” and, collectively with the “Initial Term”, the “Term”) unless Licensee elects to terminate the License at the end of the then-current term by giving Licensor written Notice at least ninety Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 Market: MNP Cell Site Number: MNL03441 Cell Site Name: Red Rock Lake (MN) Fixed Asset Number: 10112006 (90) days prior to the end of the then-current term. 3. RENT A. Licensee will pay Licensor annual rent for each year of the Term, to be paid on November 14, 2026 and on each anniversary of said date thereafter (“Rent”). B. The amount of Rent for the first year of the Term will be forty-six thousand dollars ($46,000). Rent for subsequent years of the Term will be increased by five percent (5%) each year. C. If this License is terminated at any time other than on the last day of a month, Rent will be prorated, based on a thirty-day month, as of the date of termination, and in the event of termination for any reason other than a default by Licensee, all prepaid Rent will be refunded to Licensee. 4. USE AND OWNERSHIP A. Subject to the terms of this License, the Premises may be used by Licensee solely for the purposes of constructing, maintaining, and operating certain communications facilities in accordance with the transmission and reception of wireless communication signals authorized for use by Licensee by the Federal Communications Commission (“FCC”). Licensee’s communications facilities will include cellular and link antennas, antenna mounts, necessary wave-guide and appurtenances, ground equipment (cabinet containing radio transmission, computer equipment, and emergency battery and generator equipment), screening fence, and underground utility wires, cables, conduits, and pipes, as described on Exhibit B attached hereto (the “Facilities”). B. Licensee must maintain and operate the Premises in accordance with good engineering practices, in accord with all applicable FCC rules and regulations, and to cause all other site users and users of the Premises, where feasible, to do the same. C. Licensee, its agents and contractors, are hereby granted the right, at its sole cost and expense, to enter upon the Property and conduct such studies as Licensee deems necessary to determine the Property’s suitability for Licensee’s intended use. These studies may include surveys, soil tests, environmental evaluations, radio wave propagation measurements, field strength tests and such other analyses and studies as Licensee deems necessary or desirable. Licensee must restore the Property to its original condition following any such studies. D. During the Term of this License, Licensee will pay all special assessments and personal property and/or real estate taxes levied against or upon the Facilities or the Property by any taxing authority. Licensor will provide to Licensee a copy of any Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 Market: MNP Cell Site Number: MNL03441 Cell Site Name: Red Rock Lake (MN) Fixed Asset Number: 10112006 notice of taxes or special assessments imposed upon the Facilities or Property as a result of the Facilities or use of the Property by Licensee, which Licensor may receive from any taxing authority. Subject to any and all limitations imposed by law, Licensee may, at its own expense, contest any such taxes or assessments. E. Licensor waives any lien rights it may have, statutory or otherwise, regarding Licensee’s Facilities, all of which will be deemed personal property whether considered real or personal property under applicable state laws. Licensee will not allow any mechanic’s or materialmen’s liens to be placed on the Property as a result of its work on the Property. F. Licensee will not interfere with Licensor’s use of the Property, or use by others to whom Licensor has granted the use of the Property, and agrees to cease all such actions which unreasonably and materially interfere with the use thereof by Licensor or others no later than three (3) business days after receipt of written notice of the interference from Licensor. If the interference cannot be eliminated within 30 days after Licensee has received written notice, either Licensor or Licensee may at its option terminate this Agreement immediately. G. Licensee is entitled to ingress, egress, and access from an open and improved public road and access path 24 hours a day, seven days a week, except in case of unforeseen emergency that requires Licensor to limit Licensee’s access. 5. FACILITIES A. Licensee will install the Facilities at its sole cost, in compliance with all FCC rules and regulations and good engineering practices. Prior to installing any Facilities, Licensee must satisfy the Conditions Precedent identified on Exhibit C attached hereto. B. The placement of additional Facilities is subject to the prior approval of the Licensor, which approval may not be unreasonably withheld, conditioned or delayed. C. Licensee agrees that its Facilities will be of types and frequencies which will not cause radio frequency interference to Licensor or to any other prior lessees or licensees of the Property, provided that Licensor, all lessees, licensees, and other users of the Property are in compliance with Paragraph 4.B above. In the event such interference does occur, and Licensee is advised in writing of such interference, Licensee must eliminate such interference within twenty-four (24) hours or cease using the Facilities causing the interference except for short tests necessary for the elimination of the interference. It is further agreed that Licensor in no way guarantees to Licensee non-interference to the operation of Licensee’s Facilities. Notwithstanding the foregoing, Licensor will use its best efforts to afford Licensee similar protection from interference caused by the operations of subsequent Property users. Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 Market: MNP Cell Site Number: MNL03441 Cell Site Name: Red Rock Lake (MN) Fixed Asset Number: 10112006 D. Prior to adding additional transmitter or receiver frequencies on the Property, outside the frequencies currently used by Licensee, Licensee must notify Licensor of the modified frequencies and to perform the necessary interference studies to insure that the modified frequencies will not cause harmful radio interference to other existing users. Licensee will pay for such studies, which must be performed by a registered professional communications engineer. E. If Licensee’s Facilities produce noticeable noise levels that exceed noise regulations per the local ordinances and/or state laws, Licensee will at its own expense install a noise buffer. F. In the event Licensor determines, in its sole discretion, to replace the roof on the building located on the Property, Licensee will relocate all of its roof-top equipment (i.e., cable runs) from the roof to a permanent ground run within thirty (30) days’ written notice from Licensor. Thereafter Licensee will not be permitted to re-install roof-top equipment (i.e., cable runs) on roof. G. In the event Licensor determines, in its sole discretion, that the installation or operation of Licensee’s facilities may impact the structural integrity of any component of the Property, Licensor may engage a structural engineer or order a structural analysis. Licensee shall reimburse the Licensor for any costs incurred by Licensor in connection with the structural engineer or structural analysis. H. Licensee’s Responsibility/Use. Licensee may use the following parts of the Property and Tower for the following uses, and the construction, maintenance, repair, replacement, removal and operations of the following, all of which are hereafter referred to as “Licensee’s Improvements.” Licensee’s Improvements will be installed at Licensee’s expense and must be maintained in a reasonable condition and secured by Licensee. Licensee must ensure that its use of the Property and Tower is consistent with all local, state and federal laws, ordinances, and regulations. (a) Not more than twelve (12) panel antennas, antenna mounting appurtenances and necessary cable attached to the Tower as more particularly described on Exhibit B. (b) An approximately two hundred twenty-eight (228) square foot structure as described on the Site Plans attached hereto as part of Exhibit B (Equipment Structure) to house and contain Licensee’s radio transmission equipment, emergency battery, gps antenna and generator equipment. (c) Utility wires above and underground, and cables, conduits and pipes within that part of the Property described on the Site Plans attached hereto as party of Exhibit B. (d) Right to ingress and egress 24 hours each day, seven (7) days a week , on Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 Market: MNP Cell Site Number: MNL03441 Cell Site Name: Red Rock Lake (MN) Fixed Asset Number: 10112006 foot or motor vehicle on and over that part of the Property from and to Licensee’s Improvements as depicted in Exhibit B for the purpose of inspecting, maintaining and repairing its Facility and related equipment, provided however, Licensor may require Licensee to exercise its right of ingress and egress on and over a different part of the Property or other property as may be provided by or through Licensor. (e) A separately metered connection to electric utility, which supplies electricity billable to Licensee. 6. UTILITY SERVICE Licensee will pay for, install, and provide all future Gopher State One Call locates and all required utility services. Payment for utility services, including but not limited to electric and telephone service, for the Facilities will be Licensee’s responsibility without any adjustment to Rent. Licensor will not be responsible for any damages which occur as a result of interruption of utility services except Licensor will be responsible for any direct damages to utilities caused by solely by Licensor. Licensor will reasonably cooperate with Licensee’s efforts to improve existing utilities on the Property for Licensee’s use, or to connect the Facilities to existing utilities on the Property. Licensor will execute any easement, right-of-way, or similar agreement that Licensee or a utility service provider may reasonably request for any such purposes, all costs to be borne by Licensee. Licensee must comply with all ordinances and codes regarding noise and hours of operation when operating back-up power generation for normal routine maintenance. 7. TERMINATION A. Except as otherwise provided herein, this License may be terminated without penalty or further liability, on thirty (30) days’ notice as follows: (1) At any time during the Term of this License by either party upon a default of any covenant or term hereof by the other party which default is not corrected within thirty (30) days of receipt of written notice of default (without, however, limiting any other rights available to the Parties pursuant to any other provisions hereof); provided, however, that neither party will be in non-monetary default under this License if it commences curing any such non-monetary default within such 30-day period and thereafter diligently prosecutes the cure to completion; (2) At any time during the Term of this License by Licensee if Licensee is unable to obtain or maintain any license, permit or other governmental approval necessary to the installation and/or operation of the Facilities or Licensee’s business; (3) At any time during the Term of this License by Licensor if, in Licensor’s sole judgment after consultation with a licensed structural engineer, Licensor Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 Market: MNP Cell Site Number: MNL03441 Cell Site Name: Red Rock Lake (MN) Fixed Asset Number: 10112006 determines that the Tower is structurally unsound for use as a tower, for any reason, including but not limited to considerations related to the age of the Tower, damage to or destruction of all or part of the Tower or the Property from any source, or factors relating to the condition of the Property. This Agreement may not be terminated under this paragraph if Licensee, at Licensee’s cost, remedies the structural defect as determined by Licensor’s structural engineer. Before undertaking remedial work to correct any structural defects, Licensee’s proposed corrective work must be approved by Licensor’s structural engineer as to the structural design, and must be approved by Licensor as it affects the aesthetics of the Property; (4) At any time prior to Licensee’s installation of its equipment on the Premises (i) if the Property is or becomes unacceptable under Licensee’s design or engineering specifications for its equipment or the communications system to which the equipment belongs or (ii) Licensee determines that any soil boring tests or structural analysis is unsatisfactory; and (5) At any time prior to Licensee’s installation of its equipment on the Premises if Licensee’s technical reports do not establish to its exclusive reasonable satisfaction that the Premises is capable of being suitably engineered to accomplish Licensee’s intended use of the Premises. B. Upon termination or expiration of this License, Licensee must at its expense, within ninety (90) days, remove all of its Facilities from the Premises. Licensee will continue to pay to Licensor the full rental amount until all of Licensee’s Facilities are removed from the Premises and the Premises is restored to original usable condition, ordinary wear and tear excepted. If all Facilities are not removed by the Licensee within 90 days, Licensor may remove the Facilities and restore the Premises. Licensee will reimburse Licensor for all costs incurred by Licensor to remove and dispose of the Facilities and restore the Property. Contemporaneously with the delivery to Licensor of this License Agreement executed by Licensee, Licensee, at its cost and expense, will procure and deliver to Licensor an irrevocable letter of credit (“Letter”) in favor of Licensor in the principal amount of five thousand dollars, ($5,000.00) to secure Licensee’s obligation to remove the Facilities and restore the Premises. Licensor may draw upon the Letter in an amount necessary to reimburse Licensor for its costs. If the Letter is insufficient to cover Licensor’s costs, Licensee will promptly pay to Licensor the deficiency. This paragraph will survive termination of this License Agreement. 8. INSURANCE Licensee must obtain and carry insurance in the amounts and types as follows: A. General Liability. Licensee must obtain and carry maintain occurrence form commercial general liability insurance coverage. Such coverage must be written to Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 Market: MNP Cell Site Number: MNL03441 Cell Site Name: Red Rock Lake (MN) Fixed Asset Number: 10112006 include, but not be limited to, bodily injury, property damage–broad form, and personal injury, for the hazards of Premises/operation, broad form contractual, claims for Licensee’s independent contractors, and products/completed operations. Licensee must maintain the commercial general liability coverage with limits of liability not less than the following limits for any one person or occurrence: $4,000,000.00 each occurrence; $4,000,000.00 personal and advertising injury; $4,000,000.00 general aggregate; and $4,000,000.00 products completed operations aggregate. These limits may be satisfied by commercial general liability coverage or in combination with an umbrella or excess liability policy, provided coverages afforded by the umbrella or excess policy are no less than the above stated limits. B. Licensee Property Insurance. Licensee must keep in force during the Term and any Renewal Term a policy covering damages to Licensee’s Facilities at the Property. The amount of coverage must be sufficient to provide for replacement of the damaged Facilities, damages resulting from loss of use, and must comply with any ordinance, statutory, or legal requirements. This policy must waive all subrogation rights against the Licensor. C. Hazardous Materials Coverage. Licensee must carry Pollution Legal Liability Insurance in the minimum amount of $2,000,000 per occurrence, for damage caused by Hazardous Materials and the release of pollutants. D. Comprehensive Automobile Liability. Licensee must carry a comprehensive automobile liability policy with coverage amounts of $1,000,000 combined single limit each accident, which must include coverage for all owned, hired, and non- owned vehicles. E. Adjustment to Insurance Coverage Limits. The coverage limits set forth herein will be increased at the time of any Renewal Term by multiplying the current coverage limit by a fraction, the numerator of which is the Consumer Price Index All Urban consumers-All Items Base 1982 to 1984 Equals 100, as published by the U.S. Department of Labor, Bureau of Labor Statistics (“CPI-U”) for the month that is three months preceding the first day of the Renewal Term, the denominator of which is the CPI-U for the month that is three months prior to the first day of this License Agreement. If the CIP-U is discontinued, comparable statistics on the purchasing power of the consumer dollar published by the U.S. Department of Labor or its successors as designated by Licensor will be used for making the computations in this paragraph. In the event the same base period (1982-1984 Equals 100) used in computing the CPI-U is changed, the figures used in making the adjustment will accordingly be changed so that the changes in the CIP-U are taken into account with the same mathematical results notwithstanding any change in the base period. In the event of any other changes in the CIP-U, Licensor will designate a comparable calculation to be used for the calculations of this paragraph. Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 Market: MNP Cell Site Number: MNL03441 Cell Site Name: Red Rock Lake (MN) Fixed Asset Number: 10112006 F. Additional Insured. The insurance policies naming Licensor required by this Paragraph 8 must be issued by a company (rated A+ or better by Best Insurance Guide) licensed to do business in the State of Minnesota and must include the City of Eden Prairie as an additional insured. The insurance policies must provide that Licensee’s coverage is the primary coverage in the event of a loss. The policies must also insure the indemnification obligation(s) contained in Section 9 of this License Agreement. Licensee must provide a Certificate of Insurance and a copy of the additional insured endorsement(s), as applicable, which evidences the existence of this insurance coverage including the City of Eden Prairie as an additional insured must be provided to Licensor before Licensee, or any Party acting on Licensee’s behalf or at Licensee’s behest, enters the Property for the purpose of construction or placing any Facility or related material on the Property. The Proof of Insurance must also provide that the coverage(s) may not be canceled, non-renewed, or materially changed without thirty (30) days prior written notice to Licensor, or 10 days’ notice for non-payment of premium. G. Excess Liability. Licensee must maintain an excess or umbrella liability policy with a combined single limit of $5,000,000.00 per occurrence. 9. INDEMNIFICATION A. Licensee and Licensor each indemnify and hold harmless the other and their elected officials, officers, employees, agents, and representatives, from and against any and all claims, costs, losses, expenses, demands, actions, or causes of action, including reasonable attorneys’ fees and other costs and expenses of litigation arising out of the use and occupancy of the licensed Premises or Property by Licensee or Licensor, which may be asserted against or incurred by either Party or for which either Party may be liable in the performance of this License, except those to the extent that the same arise from the negligence, willful misconduct, or other fault of either Party. Licensee will defend all claims arising out of the installation, operation, use, maintenance, repair, removal, or presence of Licensee’s Facilities, equipment, and related facilities on the licensed Premises notwithstanding any provision set forth herein to the contrary. Licensee’s obligations under this paragraph are contingent upon its receiving prompt written notice of any event giving rise to an obligation to indemnify Licensor and Licensor’s granting it the right to control the defense and settlement of the same. Licensor’s obligation to indemnify Licensee will, in any event, be limited as set forth in Minnesota Statutes Section 466.04. B. Hazardous Materials. Without limiting the scope of Subparagraph 9A above, Licensee will be solely responsible for and will defend, indemnify, and hold Licensor, its agents, and employees harmless from and against any and all claims, costs, and liabilities, including attorney’s fees and costs, arising out of or in connection with the cleanup or restoration of the Property resulting from Licensee’s use of Hazardous Materials. For purposes of this License Agreement, “Hazardous Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 Market: MNP Cell Site Number: MNL03441 Cell Site Name: Red Rock Lake (MN) Fixed Asset Number: 10112006 Materials” will be interpreted broadly and specifically includes, without limitation, asbestos, fossil fuels, biological fuels, synthetic fuels, batteries or any hazardous substance, waste, or materials as defined in federal, state or local environmental or safety laws or regulations including, but not limited to, CERCLA. The obligation of this Subparagraph 9B will survive the expiration or other termination of this License Agreement. C. Licensee’s Warranty. Licensee represents and warrants that its use of the Property will not generate and Licensee will not store or dispose of on the Property, nor transport to or over the Property, any Hazardous Materials in violation of any applicable law. D. Licensor’s Warranty. Licensor represents and warrants that it has no knowledge of any Hazardous Materials on the Property in violation of any applicable law. 10. LIMITATION OF LICENSOR’S LIABILITY If Licensor terminates this License other than pursuant to one of the express provisions of this License, or Licensor causes interruption of the business of Licensee or for any other breach of this License by Licensor, Licensor’s liability for damages to Licensee will be limited to the actual and direct costs of equipment removal, repair, and relocation and will specifically exclude any future expectation of profits, loss of business or profit, or related damages to Licensee. 11. DEFAULT A. The following will constitute an event of default by Licensee (“Licensee’s Default”): (1) Licensee’s failure to install its Facilities on or before that date that is one (1) year after November 14, 2026. (2) Licensee’s failure to observe or perform any covenant or condition contained in this Agreement within thirty (30) days after written notice to Licensee specifying such failure and requiring Licensee to remedy the same. (3) The adjudication of Licensee as bankrupt by a court of competent jurisdiction, or the entry by such a court of an order approving a petition seeking reorganization of Licensee under the federal bankruptcy laws or any other applicable law or statute of the United States of America or any State thereof, or the appointment by such a court of a trustee or receiver or receivers of Licensee or of all or any substantial part of its property upon the application of any creditor in any insolvency or bankruptcy proceeding or other creditor’s suit in each case, the order or decree remains unstayed Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 Market: MNP Cell Site Number: MNL03441 Cell Site Name: Red Rock Lake (MN) Fixed Asset Number: 10112006 and in effect for ninety (90) days. (4) The filing by Licensee of a petition in voluntary bankruptcy or the making by it of a general assignment for the benefit of creditors or the consenting by it to the appointment of a receiver or receivers of all or any substantial part of the property of Licensee; or the filing by Licensee of a petition or answer seeking reorganization under the federal bankruptcy laws or any other applicable law or statute of the United States of America or any State thereof; or the filing by Licensee of a petition to take advantage of any debtor’s act. B. Remedies. Except as expressly limited in this License, Licensor and Licensee will have such remedies for the default of the other party hereto as may be provided at law or equity following written notice of such default and failure to cure the same within thirty (30) days or as extended as provided in Paragraph 7A above. 13. SUCCESSORS OR ASSIGNS The terms and conditions of this License will run with the Property. All of the terms, covenants, obligations, and conditions herein will be binding upon and inure to benefit of the successors and assigns of the Parties. This License may be sold, assigned, or transferred by Licensee without any approval or consent of Licensor to Licensee’s principal, affiliates, subsidiaries of its principal, or to any entity which acquires all or substantially all of Licensee’s assets in the market defined by the Federal Communications Commission in which the Property is located by reason of a merger, acquisition, or other business reorganization. As to other parties, this License may not be sold, assigned, or transferred without the written consent of the Licensor, which such consent will not be unreasonably withheld, delayed, or conditioned. No change of stock ownership, partnership interest, or control of Licensee or transfer upon partnership or corporate dissolution of Licensee will constitute an assignment hereunder. 14. QUIET ENJOYMENT Licensee, upon paying Rent, will peaceably and quietly have, hold and enjoy the Property pursuant to this License. 15. CASUALTY If any portion of the Property or Facilities are damaged by any casualty and such damage adversely affects Licensee’s use of the Property, this License will become terminable by Licensee upon thirty (30) days written notice of such casualty so long as such notice from Licensee is given within thirty (30) days of such casualty. Termination under this Paragraph, upon proper notice, will become effective on the thirtieth (30th) day following the date of such notice. Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 Market: MNP Cell Site Number: MNL03441 Cell Site Name: Red Rock Lake (MN) Fixed Asset Number: 10112006 16. CONDEMNATION If a condemning authority takes any portion of the Property and such taking adversely affects Licensee’s use of the Property, this Agreement will terminate as of the date the title vests in the condemning authority, if Licensee gives written notice of its intent to terminate within thirty (30) days after receiving notice of such vesting. The Parties will be entitled to make claims in any condemnation proceeding for the value of their respective interests in the Property (which for Licensee may include, where applicable, the value of the communications facilities, moving expenses, prepaid rent, and business-relocation expenses). Sale of all or part of the Property to a purchaser with the power of eminent domain in the face of the exercise of the power will be treated as a taking by condemnation. 17. ADVANCES IN TECHNOLOGY As technology advances and improved antennas are developed which are routinely used by Licensee in Licensee’s business, Licensor may require in its reasonable discretion the replacement of the existing antennas with any improved antennas then being used by Licensee in the Minneapolis-St. Paul Metropolitan Area if new antennas are more aesthetically pleasing or otherwise foster a public purpose, as long as the installation and use of improved antennas is economically and technically feasible. 18. ADDITIONAL BUILDINGS, IMPROVEMENTS, OR ANTENNAS Licensee acknowledges that Licensor may permit additional buildings or improvements to be constructed on the Property and such buildings or improvements may be placed immediately adjacent to Licensee’s Facilities. Licensor may permit antennas of third parties to be attached to the Tower, provided that Licensor’s structural engineer first certifies that the Tower will structurally accommodate Licensee’s existing antennas plus the proposed antennas of third parties. 19. TEMPORARY INTERRUPTIONS OF SERVICE If Licensor determines that continued operation of Licensee’s Facilities would cause or contribute to an immediate threat to the public health and/or safety (including maintenance and operating personnel), Licensor may order Licensee to discontinue its operations, or if the continued use constitutes an emergency, Licensor may without prior notice to Licensee cause discontinuance of operation of Licensee’s Facilities. Discontinuance of Licensee’s operations may include, but will not be limited to, shutting down the transmission of electromagnetic waves or impulses to or from the Facilities. Licensee must immediately comply with such an order. Operations must be discontinued only for the period that the immediate threat exists. If Licensor is unable to give prior notice to Licensee, Licensor will notify Licensee as soon as possible after its action and give its reason for taking the action. Licensor will not be liable to Licensee or any other party for any interruption in Licensee’s service or interference with Licensee’s operation of its Facilities. If the discontinuance extends for a period greater than three (3) days, either consecutively or cumulatively, Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 Market: MNP Cell Site Number: MNL03441 Cell Site Name: Red Rock Lake (MN) Fixed Asset Number: 10112006 Licensee will have the right to terminate this Agreement upon thirty days’ notice as provided in Paragraph 7. 20. NO DUTY TO REPAIR Licensor will have no duty or obligation to maintain, repair, restore, replace, or modify the Tower, the Property, or any of Licensee’s Facilities, fixtures, personal property, or improvements located thereon or therein. 21. LICENSEE’S COVENANTS Licensee will: (a) use natural gas or propane, and will not use gasoline or diesel fuel, for energy to power any generator installed on the Property; (b) not use any process or method in the installation, maintenance, or removal of any Facility upon the Tower by means of welding, cutting tool, or other device which would damage the Tower or any equipment attached thereto; (c) protect the Facilities from damage or harm in the event of the repair or maintenance of the Tower or other property of Licensor; (d) not, without Licensor’s consent, remove, cut, or trim any trees or other vegetation on the Property other than those shown on Exhibit B; and (e) replace significant trees (as defined in Eden Prairie City Code Section 11.55, subd. 2) lost or reasonably anticipated to be lost as a result of installation of Licensee’s Facilities on the Property, in accordance with Eden Prairie City Code Section 11.55, subd. 4. 22. NOTICES All notices, requests, demands, and other communications hereunder must be in writing and will be deemed given if personally delivered or mailed, certified mail, return receipt requested or by any nationally recognized courier service, to the following addresses: If to Licensor: City of Eden Prairie Attn: City Manager 8080 Mitchell Road Eden Prairie, MN 55344 With a copy to: Eden Prairie City Attorney Attn: Margaret L. Neuville 100 Washington Avenue South, Suite 1550 Minneapolis, MN 55401 If to Licensee: New Cingular Wireless PCS, LLC Attn: Network Real Estate Administration Re: Cell Site #: MNL03441, Cell Site Name: RED ROCK LAKE (MN) Fixed Asset No: 10112006 1025 Lenox Park Blvd NE, 3rd Floor, Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 Market: MNP Cell Site Number: MNL03441 Cell Site Name: Red Rock Lake (MN) Fixed Asset Number: 10112006 Atlanta, GA 30319 With a copy to: New Cingular Wireless PCS, LLC Attn: AT&T Legal Department Re: Cell Site #: MNL03441, Cell Site Name: RED ROCK LAKE (MN) Fixed Asset No: 10112006 208 S. Akard Street Dallas, Texas, 75202-4206 23. MISCELLANEOUS: A. Licensor represents and warrants it has the legal authorization to enter into and sign this License and has good and marketable title to the Property. B. This License supersedes all prior discussions and negotiations and contains all agreements and understandings between the Licensor and Licensee. This License may only be amended in writing signed by all Parties. Exhibits A through C are incorporated into this License by reference. No provision of this License will be deemed waived by either party unless expressly waived in writing by the waiving party. No waiver will be implied by delay or any other act or omission of either party. No waiver by either party of any provisions of this License will be deemed a waiver of such provision with respect to any subsequent matter relating to such provision. C. This License may be signed in counterparts by the Parties hereto. D. Any claim, controversy, or dispute arising out of this License Agreement may, upon mutual agreement of the parties, be referred to mediation. The costs of mediation will be shared equally by the parties except that each party will pay its own attorneys’ fees. Absent the parties’ agreement to mediate or if mediation is unsuccessful, any claim, controversy, or dispute arising out of this License Agreement shall be litigated in a court of competent jurisdiction in Hennepin County. E. This License will be construed in accordance with the laws of the State of Minnesota. F. If any Term of this License is found to be void or invalid, such finding will not affect the remaining terms of this License, which will continue in full force and effect. Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 Market: MNP Cell Site Number: MNL03441 Cell Site Name: Red Rock Lake (MN) Fixed Asset Number: 10112006 IN WITNESS WHEREOF the Parties have executed this License Agreement effective as of the day and year first above written. (signature pages follow) Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 Market: MNP Cell Site Number: MNL03441 Cell Site Name: Red Rock Lake (MN) Fixed Asset Number: 10112006 LICENSOR: City of Eden Prairie, a Minnesota municipal corporation By: __________________________________ Ronald A. Case Its: Mayor AND By: ___________________________________ Rick Getschow Its: City Manager Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 Market: MNP Cell Site Number: MNL03441 Cell Site Name: Red Rock Lake (MN) Fixed Asset Number: 10112006 LICENSEE: New Cingular Wireless PCS, LLC a Delaware limited liability company By: AT&T Mobility Corporation Its: Manager By: _____________________________ Print Name: Andrew Sackreiter Its: Director Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 Market: MNP Cell Site Number: MNL03441 Cell Site Name: Red Rock Lake (MN) Fixed Asset Number: 10112006 LIST OF EXHIBITS Exhibit A: Legal Description of the Property Exhibit B: Approved Plans and Specifications Describing Premises and Licensee’s Improvements Exhibit C: Conditions Precedent Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 Market: MNP Cell Site Number: MNL03441 Cell Site Name: Red Rock Lake (MN) Fixed Asset Number: 10112006 EXHIBIT A Legal Description of Property Property Address: 8950 Eden Prairie Road, Eden Prairie, MN 55347 Property Index: 20-116-22-14-0001 The Property is legally described as follows: The South 300 feet of the East 615 feet of the Southeast ¼ of the Northeast ¼ of Section 20, Township 116, range 22, except road, according to the map or plat thereof on file and of record in the office of the register of deeds in and for said county and state. Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 Market: MNP Cell Site Number: MNL03441 Cell Site Name: Red Rock Lake (MN) Fixed Asset Number: 10112006 EXHIBIT B Plans and Specifications Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 12/05/2024 Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 12/05/2024 Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 12/05/2024 Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 12/05/2024 Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 12/05/2024 Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 12/05/2024 Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 12/05/2024 Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 12/05/2024 Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 12/05/2024 Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 12/05/2024 Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 Market: MNP Cell Site Number: MNL03441 Cell Site Name: Red Rock Lake (MN) Fixed Asset Number: 10112006 EXHIBIT C CONDITIONS PRECEDENT 1. All permits from all local or federal land use jurisdictions for the intended use. 2. All local airspace authorities and FAA determination of no hazard to airspace. 3. FCC authorization to utilize this location for the intended use. 4. Licensee’s technical reports must establish to its exclusive satisfaction that the Property is capable of being suitably engineered to accomplish Licensee’s intended use of the Property. 5. Licensee’s technical reports must establish to the Licensor’s exclusive satisfaction that the installation will not interfere with other communication devices and systems presently in place. Docusign Envelope ID: D4D2A43E-2E18-461A-9099-B9430D7B9C34 City Council Agenda Cover Memo Date: May 5, 2026 Section: Consent Calendar Item Number: VII.E. Department: Community Development ITEM DESCRIPTION Professional Services Agreement with Stantec to conduct a Housing Study in support of the 2050 Comprehensive Plan for a cost not to exceed $48,000. REQUESTED ACTION Move to: Approve Professional Services Agreement with Stantec for a housing study in support of the 2050 Comprehensive Plan. SUMMARY The City received a $50 thousand grant from the Metropolitan Council to fund a housing study in support of the 2050 Comprehensive Plan. The Metropolitan Council is the regional planning agency charged with planning and coordinating the growth and development of the seven-county metropolitan area. State law requires that at least once every 10 years, city councils, town boards, and county boards throughout the region submit their updated comprehensive plans to the Metropolitan Council for approval. A local comprehensive plan represents a community’s vision of how it will develop its land, redevelop older areas, ensure adequate housing, provide roads and sewers, protect natural areas, and meet other community objectives. Under the law, the Metropolitan Council reviews local comprehensive plans to ensure they are in accord with the overall framework provided by the regional plans. The review helps determine how a community’s planned actions relate to the interests of the whole region over the long term. It helps ensure that costly public infrastructure, like roads and sewers, are built in an economical and coordinated fashion, so that user fees and tax dollars are spent wisely. Once the Metropolitan Council completes the review process for a comprehensive plan or amendment, the local government can implement it through zoning ordinances, capital budgets for public improvements, and other actions. A local comprehensive plan has several chapters covering topics such as land use, housing, wastewater, water supply, surface water, parks and trails, climate, natural systems, and transportation. This action will approve an agreement between the City and Stantec which allows Stantec to assist the City in conducting a housing study and prepare the necessary information for the housing chapter of the 2050 Comprehensive Plan. The housing chapter will evaluate the City’s current and long-term housing needs to support policies that address housing needs, opportunities and solutions. ATTACHMENTS Agreement (rev. 4/2026) Standard Agreement for Professional Services This Agreement for Professional Services (“Agreement”) is made on this 5th day of May, 2026, between the City of Eden Prairie, Minnesota, a municipal corporation (“City”), whose business address is 8080 Mitchell Road, Eden Prairie, MN 55344, and Stantec Consulting Services, an International Corporation (“Consultant”) whose business address is 733 Marquette Ave; Suite 100; Minneapolis, MN 55402. Preliminary Statement The City has adopted a policy regarding the selection and hiring of consultants to provide a variety of professional services for City projects. That policy requires that persons, firms or corporations providing such services enter into written agreements with the City. The purpose of this Agreement is to set forth the terms and conditions for the provision of professional services by Consultant for Housing Study for the Housing Chapter of the 2050 Comprehensive Plan hereinafter referred to as the “Work.” The City and Consultant agree as follows: 1.Scope of Work. The Consultant agrees to provide the professional services shown in Exhibit A in connection with the Work. Exhibit A is intended to be the scope of service for the work of the Consultant. Any general or specific conditions, terms, agreements, consultant or industry proposal, or contract terms attached to or a part of Exhibit A are declined in full and, accordingly, are deleted and will not be in effect in any manner. 2.Term. The term of this Agreement will be from May 5, 2026 through October 31, 2028 the date of signature by the parties notwithstanding. This Agreement may be extended upon the written mutual consent of the parties for such additional period as they deem appropriate, and upon the terms and conditions as herein stated. 3.Compensation for Services. City agrees to pay the Consultant on an hourly basis plus expenses in a total amount not to exceed $48,000 for the services as described in Exhibit A. a.Any changes in the scope of the work which may result in an increase to the compensation due the Consultant will require prior written approval by an authorized representative of the City or by the City Council. The City will not pay additional compensation for services that do not have prior written authorization. b.Special Consultants may be utilized by the Consultant when required by the complex or specialized nature of the Project and when authorized in writing by the City. Page 2 of 10 (rev. 4/2026) c.If Consultant is delayed in performance due to any cause beyond its reasonable control, including but not limited to strikes, riots, fires, acts of God, governmental actions, actions of a third party, or actions or inactions of City, the time for performance will be extended by a period of time lost by reason of the delay. Consultant will be entitled to payment for its reasonable additional charges, if any, due to the delay. 4.City Information. The City agrees to provide the Consultant with the complete information concerning the Scope of the Work and to perform the following services: a.Access to the Area. Depending on the nature of the Work, Consultant may from time to time require access to public and private lands or property. As may be necessary, the City will obtain access to and make all provisions for the Consultant to enter upon public and private lands or property as required for the Consultant to perform such services necessary to complete the Work. b.Consideration of the Consultant’s Work. The City will give thorough consideration to all reports, sketches, estimates, drawings, and other documents presented by the Consultant, and will inform the Consultant of all decisions required of City within a reasonable time so as not to delay the work of the Consultant. c.Standards. The City will furnish the Consultant with a copy of any standard or criteria, including but not limited to, design and construction standards that may be required in the preparation of the Work for the Project. d.City’s Representative. The City will appoint a representative with respect to the work to be performed under this Agreement. The City representative will have complete authority to transmit instructions, receive information, interpret, and define the City’s policy and decisions with respect to the services provided or materials, equipment, elements and systems pertinent to the work covered by this Agreement. 5.Method of Payment. The Consultant will submit to the City, on a monthly basis, an itemized invoice for professional services performed under this Agreement. Invoices submitted will be paid in the same manner as other claims made to the City for: a.Progress Payment. For work reimbursed on an hourly basis, the Consultant must indicate for each employee, his or her name, job title, the number of hours worked, rate of pay for each employee, a computation of amounts due for each employee, and the total amount due for each project task. Consultant must verify all statements submitted for payment in compliance with Minnesota Statutes Sections 471.38 and 471.391. For reimbursable expenses, if provided for in Exhibit A, the Consultant must provide an itemized listing and such documentation as reasonably required by the City. Each invoice must contain the Page 3 of 10 (rev. 4/2026) City’s project number and a progress summary showing the original (or amended) amount of the contract, current billing, past payments, and unexpended balance of the contract. b.Suspended Work. If any work performed by the Consultant is suspended in whole or in part by the City, the Consultant will be paid for any services set forth on Exhibit A performed prior to receipt of written notice from the City of such suspension. c.Payments for Special Consultants. The Consultant shall be reimbursed for the work of special consultants, as described herein, and for other items only when authorized in writing by the City. d.Claims. By making the claim for payment, the person making the claim is declaring that the account, claim, or demand is just and correct and that no part of it has been paid. 6.Project Manager and Staffing. The Consultant must designate a Project Manager and notify the City in writing of the identity of the Project Manager before starting work on the Project. The Project Manager will be assisted by other staff members as necessary to facilitate the completion of the Work in accordance with the terms established herein. Consultant may not remove or replace the Project Manager without the approval of the City. 7.Standard of Care. Consultant must exercise the same degree of care, skill, and diligence in the performance of its services as is ordinarily exercised by members of the profession under similar circumstances in Hennepin County, Minnesota. Consultant will be liable to the fullest extent permitted under applicable law, without limitation, for any injuries, loss, or damages proximately caused by Consultant’s breach of this standard of care. Consultant must put forth reasonable efforts to complete its duties in a timely manner. Consultant will not be responsible for delays caused by factors beyond its control or that could not be reasonably foreseen at the time of execution of this Contract. Consultant will be responsible for costs, delays or damages arising from unreasonable delays in the performance of its duties. 8.Termination. This Agreement may be terminated by either party upon seven (7) days’ written notice delivered to the other party at the address written above. Upon termination, if there is no fault of the Consultant, the Consultant will be paid for services rendered and reimbursable expenses until the effective date of termination. If the City terminates the Agreement because the Consultant has failed to perform in accordance with this Agreement, no further payment will be made to the Consultant, and the City may retain another consultant to undertake or complete the Work identified herein. 9.Subcontractor. The Consultant may not enter into subcontracts for services provided under this Agreement except as noted in the Scope of Work, without the express Page 4 of 10 (rev. 4/2026) written consent of the City. The Consultant must pay any subcontractor involved in the performance of this Agreement within ten (10) days of the Consultant’s receipt of payment by the City for undisputed services provided by the subcontractor. If the Consultant fails within that time to pay the subcontractor any undisputed amount for which the Consultant has received payment by the City, the Consultant must pay interest to the subcontractor on the unpaid amount at the rate of 1.5 percent per month or any part of a month. The minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10. For an unpaid balance of less than $100, the Consultant must pay the actual interest penalty due to the subcontractor. A subcontractor who prevails in a civil action to collect interest penalties from the Consultant will be awarded its costs and disbursements, including attorney’s fees, incurred in bringing the action. 10.Independent Consultant. Consultant is an independent contractor engaged by City to perform the services described herein and as such (i) shall employ such persons as it deems necessary and appropriate for the performance of its obligations pursuant to this Agreement, who will be employees, and under the direction, of Consultant and in no respect employees of City, and (ii) will have no authority to employ persons, or make purchases of equipment on behalf of City, or otherwise bind or obligate City. No statement herein may be construed so as to find the Consultant an employee of the City. 11.Insurance. a.General Liability. Prior to starting the Work, Consultant must procure, maintain, and pay for such insurance as will protect against claims or loss which may arise out of operations by Consultant or by any subcontractor or by anyone employed by any of them or by anyone for whose acts any of them may be liable. Such insurance must include, but not be limited to, minimum coverages and limits of liability specified in this paragraph, or required by law. b.If Consultant’s insurance does not afford coverage on behalf of subcontractors, Consultant must require and verify that all subcontractors maintain insurance meeting all the requirements of this paragraph, and Consultant must include in its contract with subcontractors the requirement that the City be listed as an additional insured on insurance required from subcontractors. In such case, prior to a subcontractor performing any Work covered by this Agreement, Consultant must: (i) provide the City with a certificate of insurance issued by the subcontractor’s insurance agent indicating that the City is an additional insured on the subcontractor’s insurance policy; and (ii) submit to the City a copy of Consultant’s agreement with the subcontractor for purposes of the City’s review of compliance with the requirements of this paragraph. c.Consultant must procure and maintain the following minimum insurance coverages and limits of liability for the Work: Page 5 of 10 (rev. 4/2026) Worker’s Compensation Statutory Limits Employer’s Liability $500,000 each accident $500,000 disease policy limit $500,000 disease each employee Commercial General $1,000,000 property damage and bodily Liability injury per occurrence $2,000,000 general aggregate $2,000,000 Products – Completed Operations Aggregate $100,000 fire legal liability each occurrence $5,000 medical expense Comprehensive Automobile Liability $1,000,000 combined single limit each accident (shall include coverage for all owned, hired and non-owed vehicles.) Umbrella or Excess Liability $1,000,000 d.Commercial General Liability. The Commercial General Liability Policy must be on ISO form CG 00 01 12 07 or CG 00 01 04 13, or the equivalent. Such insurance must cover liability arising from premises, operations, independent contractors, products-completed operations, personal and advertising injury, and liability assumed under an insured contract (including the tort liability of another assumed in a business contract). There may be no endorsement or modification of the Commercial General Liability form arising from pollution, explosion, collapse, underground property damage, or work performed by subcontractors. e.Professional Liability Insurance. In addition to the coverages listed above, Consultant must maintain a professional liability insurance policy in the amount of $2,000,000. Said policy need not name the City as an additional insured. f.Consultant shall maintain “stop gap” coverage if Consultant obtains Workers’ Compensation coverage from any state fund if Employer’s liability coverage is not available. g.All policies, except the Worker’s Compensation Policy, Automobile Policy, and Professional Liability Policy, must name the “City of Eden Prairie” as an additional insured including products and completed operations. h.All policies, except the Professional Liability Policy, must apply on a “per project” basis. Page 6 of 10 (rev. 4/2026) i.All General Liability policies, Automobile Liability policies and Umbrella policies must contain a waiver of subrogation in favor of the City. j.All policies, except for the Worker’s Compensation Policy and the Professional Liability Policy, must be primary and non-contributory. k.All polices, except the Worker’s Compensation Policy and the Professional Liability Policy, must insure the defense and indemnity obligations assumed by Consultant under this Agreement. The Professional Liability policy must insure the indemnity obligations assumed by Consultant under this Agreement except with respect to the liability for loss or damage resulting from the negligence or fault of anyone other than the Consultant or others for whom the Consultant is legally liable. l.Consultant agrees to maintain all coverage required herein throughout the term of the Agreement and for a minimum of two (2) years following City’s written acceptance of the Work. m.It is Consultant’s responsibility to pay any retention or deductible for the coverages required herein. n.All policies must contain a provision or endorsement that coverages afforded thereunder shall not be cancelled or non-renewed or restrictive modifications added, without thirty (30) days’ prior notice to the City, except that if the cancellation or non-renewal is due to non-payment, the coverages may not be terminated or non-renewed without ten (10) days’ prior notice to the City. o.Consultant must maintain in effect all insurance coverages required under this paragraph at Consultant’s sole expense and with insurance companies licensed to do business in the state in Minnesota and having a current A.M. Best rating of no less than A-, unless specifically accepted by City in writing. p.A copy of the Consultant’s Certificate of Insurance which evidences the compliance with this paragraph must be filed with City prior to the start of Consultant’s Work. Upon request a copy of the Consultant’s insurance declaration page, rider, and/or endorsement, as applicable must be provided. Such documents evidencing Insurance must be in a form acceptable to City and must provide satisfactory evidence that Consultant has complied with all insurance requirements. Renewal certificates must be provided to City prior to the expiration date of any of the required policies. City will not be obligated, however, to review such Certificate of Insurance declaration page, rider, endorsement or certificates or other evidence of insurance, or to advise Consultant of any deficiencies in such documents and receipt thereof will not relieve Consultant from, nor be deemed a waiver of, City’s right to enforce the Page 7 of 10 (rev. 4/2026) terms of Consultant’s obligations hereunder. City reserves the right to examine any policy provided for under this paragraph. q.If Consultant fails to provide the specified insurance, then Consultant will defend, indemnify, and hold harmless the City, the City's officials, agents and employees from any loss, claim, liability, and expense (including reasonable attorney's fees and expenses) to the extent necessary to afford the same protection as would have been provided by the specified insurance. Except to the extent prohibited by law, this indemnity applies regardless of any strict liability or negligence attributable to the City (including sole negligence) and regardless of the extent to which the underlying occurrence (i.e., the event giving rise to a claim which would have been covered by the specified insurance) is attributable to the negligent or otherwise wrongful act or omission (including breach of contract) of Consultant, its subcontractors, agents, employees or delegates. Consultant agrees that this indemnity will be construed and applied in favor of indemnification. Consultant also agrees that if applicable law limits or precludes any aspect of this indemnity, then the indemnity will be considered limited only to the extent necessary to comply with that applicable law. The stated indemnity continues until all applicable statutes of limitation have run. r.If a claim arises within the scope of the stated indemnity, the City may require Consultant to: i.Furnish and pay for a surety bond, satisfactory to the City, guaranteeing performance of the indemnity obligation; or ii.Furnish a written acceptance of tender of defense and indemnity from Consultant’s insurance company. Consultant will take the action required by the City within fifteen (15) days of receiving notice from the City. 12.Indemnification. Consultant will defend and indemnify City, its officers, agents, and employees and hold them harmless from and against all judgments, claims, damages, costs and expenses, including a reasonable amount as and for its attorney’s fees paid, incurred or for which it may be liable resulting from any breach of this Agreement by Consultant, its agents, contractors and employees, or any negligent or intentional act or omission performed, taken or not performed or taken by Consultant, its agents, contractors and employees, relative to this Agreement. Notwithstanding the foregoing, Consultant’s obligation to defend the City will not apply to claims covered by Consultant’s professional liability insurance. City will indemnify and hold Consultant harmless from and against any loss for injuries or damages arising out of the negligent acts of the City, its officers, agents or employees. Page 8 of 10 (rev. 4/2026) 13.Ownership of Documents. All plans, diagrams, analyses, reports and information generated in connection with the performance of the Agreement (“Information”) shall become the property of the City, but Consultant may retain copies of such documents as records of the services provided. The City may use the Information for its purposes and the Consultant also may use the Information for its purposes. Use of the Information for the purposes of the project contemplated by this Agreement (“Project”) does not relieve any liability on the part of the Consultant, but any use of the Information by the City or the Consultant beyond the scope of the Project is without liability to the other, and the party using the Information agrees to defend and indemnify the other from any claims or liability resulting therefrom. 14.ADA Title II Compliance for Digital Content. The following provisions apply only to the extent Consultant’s obligations under this Agreement require it to produce content that will be posted on the City’s website or digital apps. a.Compliance with Accessibility Laws. Consultant must ensure that all digital content, documents, materials, deliverables, and services produced under this Agreement that are intended for publication on, or integration with, the City’s public-facing website (collectively, “Digital Content”) comply with all applicable federal, state, and local accessibility laws and regulations, including, but not limited to, the Americans with Disabilities Act (ADA), Title II, and its implementing regulations (28 C.F.R. Part 35). b.Accessibility Standards. At a minimum, all Digital Content must conform to the Web Content Accessibility Guidelines (WCAG) 2.1 Level AA, or any subsequent version adopted by the City or required by applicable law. This includes, but is not limited to, content such as documents, images, videos, audio, maps, and interactive features. c.Maps and Non-Accessible Content. To the extent Consultant produces map- based, GIS, or other inherently visual or technically constrained content that cannot be made fully accessible, Consultant must: i.notify the City in writing in advance; ii.provide a detailed explanation of the accessibility limitations; and iii.supply equivalent alternative formats, data, or descriptions sufficient to enable the City to provide meaningful access to individuals with disabilities in compliance with ADA Title II. 15.Mediation. Each dispute, claim or controversy arising from or related to this Agreement is subject to mediation as a condition precedent to the initiation of any legal or equitable proceeding by either party. The mediator will be selected by mutual agreement of the parties, and the costs of mediation will be shared equally. Unless Page 9 of 10 (rev. 4/2026) otherwise agreed in writing, mediation will be held in the City of Eden Prairie. Any resolution reached through mediation must be documented in a written mediated settlement agreement, which will be binding on the parties and enforceable in any court of competent jurisdiction. General Terms And Conditions 16.Assignment. Neither party may assign this Agreement, nor any interest arising under this Agreement, without the written consent of the other party. 17.Compliance with Laws and Regulations. In providing services under this Agreement, the Consultant must abide by statutes, ordinances, rules, and regulations pertaining to the services to be provided. Any violation of statutes, ordinances, rules, and regulations pertaining to the services will constitute a material breach of this Agreement and entitle the City to immediately terminate this Agreement. 18.Conflicts. No salaried officer or employee of the City and no member of the City Council may have a financial interest, direct or indirect, in this Agreement. The violation of this provision renders the Agreement void. 19.Counterparts. This Agreement may be executed in multiple counterparts, each of which will be considered an original. 20.Damages. In the event of a breach of this Agreement by either party, the non-breaching party will not be entitled to recover punitive, special, or consequential damages or damages for loss of business. 21.Enforcement. The Consultant will reimburse the City for all costs and expenses incurred by the City in enforcing any of its rights or remedies under this Agreement, whether during the term of this Agreement or thereafter, including, without limitation, reasonable attorneys’ fees. 22.Entire Agreement, Construction, Application, and Interpretation. This Agreement is entered into in furtherance of the City’s public purpose mission and must be construed, interpreted, and applied in accordance with that mission. This Agreement constitutes the entire agreement between the parties and supersedes all prior and contemporaneous oral or written agreements, negotiations, and understandings relating to its subject matter. Any amendment, modification, deletion, or waiver of any provision of this Agreement will be effective only if set forth in a written document signed by both parties, unless otherwise expressly provided herein. 23.Governing Law. This Agreement will be governed by the laws of the State of Minnesota. 24.Non-Discrimination. During the performance of this Agreement, the Consultant must not discriminate against any employee or applicant for employment because of race, Page 10 of 10 (rev. 4/2026) color, creed, religion, national origin, sex, marital status, status with regard to public assistance, disability, sexual orientation, gender identity, or age. The Consultant must post in places available to employees and applicants for employment notices setting forth the provision of this non-discrimination clause and stating that all qualified applicants will receive consideration for employment. The Consultant must incorporate the foregoing requirements of this paragraph in all its subcontracts for Work under this Agreement, and must require all of its subcontractors for such work to incorporate such requirements in all sub-subcontracts for Work. The Consultant further agrees to comply with all aspects of the Minnesota Human Rights Act, Minnesota Statutes Chapter 363A, Title VI of the Civil Rights Act of 1964, and the Americans with Disabilities Act of 1990. 25.Notice. Any notice required or permitted to be given by a party upon the other is given in accordance with this Agreement if it is directed to either party by delivering it personally to an officer of the party, or if mailed in a sealed wrapper by United States registered or certified mail, return receipt requested, postage prepaid, or if deposited cost paid with a nationally recognized, reputable overnight courier, properly addressed to the address listed on page 1 hereof. Notices will be deemed effective on the earlier of the date of receipt or the date of mailing or deposit, provided, however, that if notice is given by mail or deposit, that the time for response to any notice by the other party will commence to run one business day after any such mailing or deposit. A party may change its address for the service of notice by giving written notice of such change to the other party, in any manner specified above, 10 days prior to the effective date of such change. 26.Rights and Remedies. The duties and obligations imposed by this Agreement and the rights and remedies available thereunder are in addition to and not a limitation of any duties, obligations, rights, and remedies otherwise imposed or available by law. 27.Services Not Provided For. No claim for services furnished by the Consultant not specifically provided for under this Agreement will be honored by the City. 28.Severability. If any provision of this Agreement is held to be invalid, illegal, or unenforceable by a court of competent jurisdiction, such determination will not affect the validity or enforceability of the remaining provisions of this Agreement. The parties intend that this Agreement be enforced to the fullest extent permitted under Minnesota law, and any invalid, illegal, or unenforceable provision be deemed modified to the minimum extent necessary to make it valid and enforceable, consistent with the parties’ original intent. 29.Statutory Provisions. a.Audit Disclosure. In accordance with Minn. Stat. § 16C.05, subd. 5, the books, records, documents and accounting procedures and practices of the Consultant or other parties relevant to this Agreement are subject to examination by the City and either the Legislative Auditor or the State Auditor for a period of six (6) Page 11 of 10 (rev. 4/2026) years after the effective date of this Agreement. This provision will survive the completion or termination of this Agreement. b.Data Practices. Any reports, information, or data in any form given to, or prepared or assembled by the Consultant under this Agreement which the City requests to be kept confidential, must not be made available to any individual or organization without the City's prior written approval. This Agreement is subject to the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13 (“MGDPA”). In accordance with Minn. Stat. § 13.05, subd. 11, to the extent this Agreement requires Consultant to perform any function of the City, all government data, as defined in Minn. Stat. § 13.02, subd. 7, which is created, collected, received, stored, used, maintained, or disseminated by Consultant in performing any of the functions of the City during performance of this Agreement is subject to the requirements of the MGDPA and Consultant will comply with those requirements as if it were a government entity. All subcontracts entered into by Consultant in relation to this Agreement must contain similar MGDPA compliance language. These obligations will survive the completion or termination of the Agreement. 30.Waiver. Any waiver by either party of a breach of any provisions of this Agreement will not affect, in any respect, the validity of the remainder of this Agreement. Page 12 of 10 (rev. 4/2026) Executed as of the day and year first written above. CITY OF EDEN PRAIRIE ___________________________________ Mayor ___________________________________ City Manager CONSULTANT By: ________________________________ Its: _________________________________ Thomas Leighton, Senior Associate Page 13 of 10 (rev. 4/2026) EXHIBIT A Quote/Proposal/Scope of Services 6City of Eden Prairie – Housing Study for the 2050 Comprehensive Plan Update Stantec Statement of Proposed Work Project Understanding The City of Eden Prairie seeks a qualified consultant to prepare a housing study in connection with the required Housing Chapter of the 2050 Comprehensive Plan Update. The Housing Chapter will be developed in coordination with the City’s overall comprehensive plan update. The selected consultant is expected to coordinate and work closely with City staff on the housing requirements. We will work to ensure all information and written content is consolidated and satisfies the requirements of the Metropolitan Council’s Local Planning Handbook and is consistent in form with the other City staff-written comprehensive plan chapters. Project Approach Stantec’s Development Economics team has invested significant time and attention into doing housing studies better, in order to build a clearer understanding of the local market context and local housing needs, and to offer a more concrete menu of strategies for addressing those needs. Our methodology includes an efficient and structured analysis of the local economy and demographics, which represent the sources of housing demand. We illustrate the City’s existing housing inventory in detail, and assess the alignment between this inventory and local needs. Our market analysis builds an understanding of the market context through observations of market demand indicators and recent development activity, supplemented with structured developer interviews. This allows us to understand what is being built, what is not being built, and what it would take to expand the envelope of housing types that are achievable and would address local needs. We employ this information, along with an extensive library of housing strategies gained from our work in dozens of other cities, to propose a menu of targeted policies and actions that can advance Eden Prairie’s housing goals and address identified community needs. The request for proposals outlines desired services that prioritize meeting Metropolitan Council requirements for the housing chapter of the City’s comprehensive plan. Our analytical methodologies would allow us to efficiently meet those requirements at a budget that is well below what you have allocated to this project. However, you may also prefer the depth of analysis and insights that are provided in a more complete housing study, and the broader research into housing strategies you can employ to meet local needs. Given that, the work plan below provides alternative paths: a streamlined approach that meets the Metropolitan Council’s requirements, as outlined in your Request for Proposals; and optional services that represent a more complete and insightful housing study. The optional tasks will be shown in italics in this proposal. Work Plan This work plan outlines the tasks we would undertake to meet your project needs based on our understanding of the project as described in the RFP. If selected, we will work with you to refine the work plan as needed to meet your goals and objectives for the project. TASK 1: PROJECT KICKOFF AND MANAGEMENT 1.1 KICKOFF MEETING WITH CITY STAFF We will launch the project with a kick-off meeting with City staff. The goal of this meeting will be to review the work plan and the schedule in detail, confirm project goals and expectations. We will confirm project management protocols related to communications, data exchanges, invoicing, etc. Stakeholder outreach will be discussed, if the expanded scope is selected. 1.2 SITE TOUR An initial site tour is a critical step in getting familiar with Eden Prairie and its housing context. City staff will be invited to participate in this activity. 1.3 INFORMATION REQUEST We will assemble and submit a list of requested City-based information to support the study. Conducting a site tour will help our team to build on our understanding of Eden Prairie’s current housing context. 7City of Eden Prairie – Housing Study for the 2050 Comprehensive Plan Update Stantec Statement of Proposed Work 2.2 COMMUNITY STAKEHOLDERS We will schedule three to five research interviews with community stakeholders, as identified by Eden Prairie staff. These can include local service providers, affordable housing operators, landlords, or major employers who are active in the community. This brings to light additional perspectives on local housing needs, and the range of governmental and non-governmental organizations who play a role in meeting housing needs in Eden Prairie 2.3 COMMUNITY ENGAGEMENT EVENT We will provide housing-related materials appropriate for one community event, in consultation and partnership with your staff, and participate in that event if desired. TASK 3: ANALYSIS OF EXISTING CONDITIONS We follow a detailed methodology for understanding and illuminating existing housing conditions. That methodology includes a distinct sequence of elements as described below. The Request for Proposals provided a set of specific topics and research questions that will be included in this analysis. 3.1 DEMOGRAPHIC AND ECONOMIC SOURCES OF HOUSING DEMAND Population and economic factors are drivers of housing demand. The economic and employment base will be described noting key industry sectors, employment trends, inflow/outflow characteristics and commuting patterns. We will analyze, describe, and map the residential demographics for Eden Prairie with respect to key characteristics such as: • Age/life stages • Household/family types • Race/diversity • Education • Income • Home values • Tenure • Housing cost burden To provide a point of reference for Eden Prairie population characteristics, we will illustrate local data and trendlines alongside the corresponding data for a set of peer cities and the metropolitan area as a whole. 3.2 HOUSING INVENTORY AND LOCATIONAL CONTEXT The existing housing inventory of Eden Prairie will be analyzed through a series of maps and tables to understand and visualize the variety and number of housing options that exist currently, and that have been developed recently. The inventory will include maps and tables of all affordable housing, senior housing, and recent development projects of ten or more units that exist or are under development in Eden Prairie—based on Costar records and CLICK HERE to view the Minot Housing Needs and Market Analysis Story Map. Tom and a colleague created the hands-on community engagement process called the “Corridor Housing Initiative,” which has won national and local awards and recognitions. 1.4 ONGOING COORDINATION WITH CITY STAFF We will establish recurring project check-in meetings with the City’s project manager at appropriate intervals such as bi-weekly, which can expand to include the core interdepartmental work group at appropriate intervals. These meetings will typically occur virtually. TASK 2: STAKEHOLDER AND COMMUNITY ENGAGEMENT Stakeholder engagement brings information to the table that illuminates local conditions more deeply. It informs and educates members of the community about housing types and housing needs. And it can humanize housing needs, helping people to see that it’s their neighbors that may be facing housing challenges. The following engagement elements are recommended in the expanded scope. 2.1 CITY COUNCIL The engagement of elected officials can be important in building a foundation for action. We will reserve flexibility to have up to two meetings with the Eden Prairie City Council. 7Stantec 8City of Eden Prairie – Housing Study for the 2050 Comprehensive Plan Update Stantec Statement of Proposed Work supplemented by local knowledge. Housing conditions such as the age of housing, housing tenure (ownership vs rental), and housing conditions will also be illustrated to the extent that it is supported by existing data. The supply of housing across the continuum of rent levels will also be analyzed. The analysis will encompass the following housing information specifically identified by the city of Eden Prairie: a) The total number of housing units. b) The number of rental housing units affordable to households with incomes at or below 30% area median income (AMI), between 31-50% AMI, between 51-60% AMI, and 61% AMI or greater. c) The number of ownership and co-operative housing units affordable to households with incomes at or below 50% AMI, between 51-60% AMI, between 61-80% AMI, between 81-115% AMI, and 116% AMI or greater. d) The share of housing units by detached townhomes, accessory dwelling units (ADU’s), manufactured housing, attached townhomes, 2-4 unit multifamily, and 5 unit or larger multifamily housing. e) The number of households with incomes at or below 30% AMI, between 31-50% AMI, between 51-60% AMI and between 61-80% AMI. f) The number of households that are experiencing housing cost burden with incomes at or below 30% AMI, between 31-50% AMI, between 51-60% AMI, and between 61- 80% AMI. g) The share of households experiencing housing cost burden by racial/ethnic group. 3.3 MARKET ANALYSIS AND DEVELOPMENT DYNAMICS Market analysis will include several elements. Market context map. A market context map highlights community assets and locational features that would be relevant to and of interest to builders or developers considering housing development in Eden Prairie. These may include commercial districts, arterial roads or highways, major employers or employment districts, parks and other recreational features, and other area assets. The market context map will be utilized in research interviews with developers to orient them to the locational and community assets of Eden Prairie. Demand indicators. Home values and sale prices are market demand indicators for ownership housing. Rental rates and vacancy levels are market demand indicators for rental housing. Stantec will analyze these data and others relevant to understanding the existing demand for housing across the spectrum of housing types. Another key indicator of market demand is the development activity that is already occurring. Through CoStar information, building permit data, rental licensing information (if available), and information from City staff, we will collect information relevant to the development of housing projects over the previous decade—including market rate, workforce, senior, family, and special needs housing that has been produced or preserved. Structured interviews. We will deepen our understanding of the housing market and development dynamics through a set of six structured research interviews with real estate professionals, housing developers, and builders that have worked in Eden Prairie or other similar Twin Cities contexts. Candid conversations with builders and developers provide important nuances in understanding why certain development types are being built and others are not, and what it would take to attract types of Our methodology leverages big data to create a more detailed, accurate, and up-to-date model of local housing demand and supply than conventional approaches. This provides clarity on housing needs and opportunities across income levels and housing types. By incorporating recent migration and development trends, we can project future gaps and identify new development opportunities. The example graph highlights shortages and surpluses across housing types and costs (housing gap by monthly cost, tenure, and bedroom count). Readings below the line indicate housing that is under supplied relative to the community’s existing needs; readings above the line indicate housing that is adequately or oversupplied. o3 = Owner-occupied 3+ bedroom units r3 = Renter-occupied 3+ bedroom units o2 = Owner-occupied 2 bedroom units r2 = Renter-occupied 2 bedroom units o1 = Owner-occupied 1 bedroom units r1 = Renter-occupied 1 bedroom units Example housing demand and supply by affordability, tenure, and size. h) The homeownership rate by racial/ethnic group. i) The number of affordability-restricted housing units. Include the breakout of units by restriction when possible such as: housing for people 55 and older, housing for people with disabilities, and high priority homeless units. j) Include the number of low-income affordable ownership housing units needed. 9City of Eden Prairie – Housing Study for the 2050 Comprehensive Plan Update Stantec development that are not being built currently. They directly inform housing strategies that relate to attracting development types that are not being built. 3.4 HOUSING GAPS AND NEEDS Building on the preceding analysis, the base scope will address the Metropolitan requirement to identify three priority housing needs that can be addressed through City policies and programs. We will supplement that with understanding of needs based related to affordability, accessibility, unsubsidized affordable housing, and household that are at risk of housing loss and instability. In the more complete housing study, the additional quantitative and non-quantitative inputs will amplify the picture, suggesting other categories of housing needs. 3.5 DEMAND FORECAST Based on what is learned above, we will forecast the long-term (2031-2040) allocation of future affordable housing need at three levels of affordability: 30% AMI or less, 31-50% AMI and 51-60% AMI. Guide residential land at densities sufficient to create opportunities for affordable. The forecast will break down demand by housing type and affordability for both ownership and rentals. DELIVERABLES – RESEARCH AND ANALYSIS PHASE The research and analysis phase will result in a characterization of Eden Prairie’s housing market context, its housing market, housing gaps and housing needs. These findings will be presented for discussion and feedback to the staff team—and in the expanded scope the City Council as well. TASK 4: STRATEGIES FOR ADDRESSING HOUSING NEEDS The following describes our approach to identifying, researching, and refining candidate housing strategies that address identified needs. Strategies will suggested by the research and analysis, and our conversations with stakeholders, developers, Eden Prairie staff and policy makers. Candidate strategies will also draw from a unique internal resource. That is an extensive Housing Solutions Library that has been compiled from previous housing studies research, including many in suburban settings similar to Eden Prairie. Strategies will be explored and customized to the Eden Prairie context through additional research interviews, and refined and prioritized in consultation with City of Eden Prairie staff and leadership. In the base study, strategies will focus on a limited set of strategies that will address the comprehensive plan requirements of the Metropolitan Council. The expanded scope will include a broader menu of strategies that might shape the City’s housing program in the coming decade. 4.1 HOUSING IMPLEMENTATION PLAN The Metropolitan Council requires an implementation plan, which defines a set of City “tools”—policies, programs, and resources—that address the three prioritized categories of housing needs. We will describe the tools that will be utilized, connecting them to their functions and purposes. We will also list and describe tools that can be used to address additional housing needs. 4.2 HOUSING STRATEGIES In the more expanded scope, we will build a broader menu of housing strategies for your consideration, that have the potential to address local housing needs. We will describe the housing strategies in more depth. And we will pair strategies with relevant case studies or best practices. This lays a better foundation for consideration of the strategy, and provides better direction for taking action on the strategy after the housing study is completed. Strategies may span a broad spectrum of housing development and preservation actions, including: • Multifamily development strategies • Regulatory strategies, such as modifications to land use, zoning requirements, or other regulations • Incentives programs, financial or otherwise, for new development, housing preservation, and homeowner residential rehab. • Partnership and ownership strategies • Context building, site preparation, and positioning • Strategies related to specific housing types including affordable/workforce housing, senior housing, tiny homes/ADUs, triplexes on standard lots • Local capacity building 4.3 ALIGN NEEDS WITH AVAILABLE RESIDENTIAL LAND USE AT APPROPRIATE DENSITIES The land use policies and maps in the comprehensive plan will need to guide land at densities that address Metropolitan Council requirements, but we will draft narrative in the Statement of Proposed Work 10City of Eden Prairie – Housing Study for the 2050 Comprehensive Plan Update Stantec Statement of Proposed Work housing chapter that appropriately references those policies in the Housing Chapter. DELIVERABLES – HOUSING STRATEGIES PHASE The housing strategies research will lead to an initial set of candidate housing strategies, with relevant case studies, in a presentation format. The strategy recommendations will be presented for discussion and feedback to the staff team, the Planning and Zoning Commission, and the City Council. The input and ideas from these meetings will lead to refinement of the strategies. TASK 5: METROPOLITAN COUNCIL SUPPORT 5.1 METROPOLITAN COUNCIL SUPPORT In our base scope we have budgeted time to be your partner through submittal of the housing chapter for Metropolitan Council Review, and to address their comments and requests for revisions. TASK 6: DRAFT AND FINAL REPORT 6.1 DRAFT REPORT FOR REVIEW We will compile all analytical findings and housing strategies in a concise and visually appealing draft Comprehensive Housing Needs Assessment and Strategic Funding Plan. The document will be made available for review and comment by City staff and others as desired. 6.2 FINAL REPORT After collecting feedback on the draft report, we will revise the report and issue a final Housing Needs and Market Analysis document for official review and approval. The final report will inform the Comprehensive Plan Housing Chapter and address elements identified in the Met Council’s Local Planning Handbook. Budget We have included the hourly rate for each consultant, as summarized in the table. Stantec will invoice monthly at our hourly rates up to the agreed budget. If the City would like a different invoice schedule, we are happy to discuss another option. $48,000 for complete housing study. Claims: There are no unsatisfied judgments or arbitration awards outstanding against Stantec. Stantec does have some legal proceedings, lawsuits, or claims pending. These are a normal part of professional services indudstries. All have been reported to Stantec’s insurers who are in the process of adjusting/managing them. None will ahve a material effect on the financial position of the company or its ability to undertake this assignment.Stantec seeks to deal with client concerns and claims promptly and fairly through its Risk Management group. As a public company, Stantec has substantial assets and maintains a high professional liability insurance limit. Stantec’s claims history has resulted in relatively low insurance premiums when compared with firms of similar size and character. Tom Leighton $212 Sam Newberg $203 Kribashini Moorthy $158 Saumya Jain $183 Lauren Walburg $183 STATEMENTS Reimbursable Expenses: Reiumbursable expenses will be limited to $500 for market data from Costar. Availability to Start and Availability to Commit to the Deadline: We can adhere to the proposed calendar or complete the project within six months of contract execution. City Council Agenda Cover Memo Date: May 5, 2026 Section: Consent Calendar Item Number: VII.F. Department: Community Development/Housing & Community Services Julie Klima/Paja Xiong ITEM DESCRIPTION Approve the Grant Contract Agreement for the Local Housing Trust Fund Grant Program with Minnesota Housing. REQUESTED ACTION Move to: Approve the Grant Contract Agreement for the Local Housing Trust Fund Grant Program with Minnesota Housing and authorize the City Manager to execute the Contract Agreement and subrecipient and third-party agreements on behalf of the City. SUMMARY The Local Housing Trust Fund Grant Program was established to support aﬀordable housing and encourage local governments to create or fund Local Housing Trust Funds. The program uses state funding to match a portion of new housing trust fund dollars to encourage local investment in aﬀordable housing across Minnesota such as supporting First-Time Homebuyer Programs, First-Generation Homebuyer programs, Owner-Occupied Rehabilitation Loan programs, and emergency rental assistance programs. The City of Eden Prairie was awarded a $150,000 grant from Minnesota Housing. These funds will be used to support creation and preservation of aﬀordable housing programs administered by the City and local non-proﬁt partners. ATTACHMENTS Local Housing Trust Fund Grant Program Grant Contract City Council Agenda Cover Memo Date: May 5, 2026 Section: Consent Calendar Item Number: VII.G. Department: Public Works / Engineering – Patrick Sejkora ITEM DESCRIPTION Award Contract for the Plaza Drive Street Reconstruction (IC No. 25813) to BKJ Land Co II dba BKJ Excavating. REQUESTED ACTION Move to: Award the contract for the Plaza Drive Street Reconstruction Project to BKJ Land Co II dba BKJ Excavating in the amount of $309,919.00. SUMMARY Plaza Drive is a City street that serves as a frontage road for Highway 212 and has several commercial businesses along its corridor. Much of the road was constructed over a historic wetland containing highly compactible soils deep below the surface. While some areas have been stabilized, a portion of the roadway over and around a pile-supported Minnesota Department of Transportation box culvert has not. This area has experienced continued compaction of the road subgrade resulting in an uneven and degraded roadway surface. This project will remove and replace the existing roadway subgrade in this settled area with cellular concrete, a lightweight ﬁll that will minimize further settling and promote the lifespan of the pavement. This cellular concrete approach was used during the initial construction of Plaza Drive just east of the current project area leading up to the intersection with Prairie Center Drive. Bids were received on Friday April 24th, 2026. Four bids were received as tabulated in the attached Letter of Recommendation. The project is funded through the Stormwater Utility Fund. ATTACHMENTS Attachment 1 – Construction Contract Attachment 2 – Letter of Recommendation of Award (rev. 4/2026) Construction Contract Agreement This Construction Contract Agreement (“Agreement”) is made and executed this _____ day of __________, 2026, by and between the City of Eden Prairie, a Minnesota municipal corporation (“City”), and BKJ Land Co II dba BKJ Excavating, a Corporation (“Contractor”). WITNESSETH: City and Contractor, for the consideration hereinafter stated, agrees as follows: 1. Contractor hereby covenants and agrees to perform and execute all the provisions of the Plans and Specifications prepared by the Public Works Department referred to in Paragraph IV, as provided by the City for: I.C. 25813 – Plaza Drive Street Reconstruction Project Contractor further agrees to do everything required by this Agreement and the Contract Documents. 2. City agrees to pay and Contractor agrees to receive and accept payment in accordance with the prices bid for the unit or lump sum items as set forth in the Proposal Form attached hereto which prices conform to those in the accepted Contractor’s proposal on file in the office of the City Engineer. The aggregate sum of such prices, based on estimated required quantities is estimated to be $309,919.00. 3. Payments to Contractor by City shall be made as provided in the Contract Documents. 4. The Contract Documents consist of the following component parts: a. Legal and Procedural Documents (1) Advertisement for Bids (2) Instruction to Bidders (3) Accepted Proposal Form (4) This Construction Contract Agreement (5) Contractor’s Performance Bond (6) Contractor’s Payment Bond (7) Responsible Contractor Verification Form b. Special Conditions c. Detail Specifications d. General Conditions e. Plans f. Addenda, Supplemental Agreements, and Change Orders The Contract Documents are hereby incorporated with this Agreement and are as much a part of this Agreement as if fully set forth herein. This Agreement and the Contract Documents are the Contract. 5. Contractor agrees to fully and satisfactorily complete the work contemplated by this Agreement in accordance with the schedule provided in the Contract Documents. IN WITNESS WHEREOF, the parties to this Agreement executed this Agreement as of the date first above written. CITY OF EDEN PRAIRIE By: __________________________________ Its: Mayor By: __________________________________ Its: City Manager CONTRACTOR By: ___________________________________ Its: ___________________________________ April 24, 2026 Honorable Mayor and City Council City of Eden Prairie 8080 Mitchell Road Eden Prairie, MN 55344 Re: Plaza Drive Street Reconstruction Project City Project No. 25813 City of Eden Prairie WSB Project No. 031557-000 Dear Mayor and Council Members: Bids were received for the above-referenced project on Friday, April 24, 2026, and were opened and read aloud. Four bids were received. The bids were checked for mathematical accuracy. Please find enclosed the bid summary indicating the low bid as submitted by BKJ Land Co II Inc DBA BKJ Excavating, Jordan, Minnesota in the amount of $309,919.00. The Engineer’s Estimate was $347,566.00. We recommend that the City Council consider these bids and award a contract in the amount of $309,919.00 to BKJ Land Co II Inc DBA BKJ Excavating. based on the results of the bids received. Sincerely, WSB Bill Alms, PE Sr. Project Manager Attachments ams PROJECT: Contractor 1 BKJ Land Co II dba BKJ Excavating X $309,919.00 2 New Look Contracting, Inc.X $339,711.00 3 Pember Companies, Inc.X $400,695.65 4 Boulder Creek, Inc X $499,655.95 Engineer's Opinion of Cost $347,566.00 Denotes corrected figure Bill Alms, Sr. Project Manager I hereby certify that this is a true and correct tabulation of the bids as received on April 24, 2026. C:\ACC\ACCDocs\WSB\031557-000\Project Files\06_Construction\Contract_Documents\Bidding\031557-000 Plaza Dr Bid Summary 042426.xlsx City Council Agenda Cover Memo Date: May 5, 2026 Section: Consent Calendar Item Number: VII.H. Department: Public Works/Engineering – Carter Schulze, City Engineer ITEM DESCRIPTION Approve Access and Trail Easement Agreement with VA8 Cascade, LLC for the Town Center Water Tower Trail REQUESTED ACTION Move to: Approve Access and Trail Easement Agreement with VA8 Cascade, LLC for the Town Center Water Tower Trail SUMMARY As part of the Met Council Green Line Extension project and the construction of Town Center Station, Eden Road was realigned to intersect with Town Center Place. The realignment resulted in the removal of the City’s water tower maintenance access from Eden Road through the parking lot of the adjacent apartment building’s parking lot. This agreement will provide access to the water tower plaza from the other side of the apartment building and Singletree Lane. The proposed access route will utilize an existing access easement that runs from Singletree Lane to this easement area. The existing trail currently located in the easement area will be reconstructed with a new, wider trail for maintenance vehicle accommodation, but also for pedestrian access to the water tower plaza and the Town Center Station area. Landscaping and new lighting are also part of the reconstruction scope. ATTACHMENT Agreement City Council Agenda Cover Memo Date: May 5, 2026 Section: Consent Agenda Item Number: VII.I. Department: Public Works/Utilities Division – Joe Dusek, Water Plant Supervisor ITEM DESCRIPTION Approve purchase of Security Camera System and Installation from Paladin Technologies in the amount of $94,907.75. REQUESTED ACTION Move To: Approve purchase of Security Camera System and Installation from Paladin Technologies in the amount of $94,907.75. SUMMARY Synopsis The City of Eden Prairie Utilities Division will be utilizing a State Procurement Contract for the purchase of the Security Camera System and Installation at the water treatment plant. Paladin Technologies is under State Contract with SWIFT Contract No. 234557 Release No. S-1006(5). Staﬀ recommends acceptance of the proposal in the amount of $94,907.75 to be paid from funds in our Capital Improvement Plan. Background Information The Water Treatment Plant Security Camera System is a vital component of the overall security plan at the water treatment plant. The current security camera system we have in place was installed in 2011 and needs an upgrade. Upgrading our Security Camera System will provide more coverage, clearer viewing, and enhance security. ATTACHMENTS Attachment 1 – Proposal Attachment 2 – SWIFT Contract No. 1234557 Release No. S-1006(5) with Paladin Technologies City of Eden Prairie - Water Treatment Plant Camera Bosch BT Rep: Contact: Joe Dusek Proposal Date: 4/6/26 City of Eden Prairie Project: Building Technologies P0060833_01 | {City of Eden Prairie} City of Eden Prairie - Water Plant | City of Eden Prairie - Water Treatment Plant Camera Upgrades - 2-1-26 The symbol and the Bosch logotype are registered trademarks of Robert Bosch GmbH, Germany 2 Project Description & Investment Name: City of Eden Prairie - Water Treatment Plant Camera Upgrades - 2-1-26 Site Billing Water Plant Eden Prairie, MN 55344-2260 US Eden Prairie, MN 55344-4485 US Bosch Building Technologies Client Contact tferrian@paladintechnologies.com E: jdusek@edenprairiemn.gov Project Scope The following proposal outlines the necessary items for the upgrade and conversion of the existing Avigilon camera system to the City standard Genetec system. We will incorporate this into the Genetec software at the City Hall / Police Department (rather than Community Center). The system will utilize 14 total cameras. Two single view cameras will be installed in the front vestibule to replace the existing ones currently there. One dual lens camera will be installed at the front entrance gate to view inbound and outbound trafﬁc. We will attempt to utilize existing cable for this, but have provided a wireless radio that will connect the camera to the building network. Lastly, eleven four sensor cameras will be installed around the building to cover the facility and grounds. Several existing camera locations will be abated since the new four sensor cameras will provide the coverage these once did. Five concurrent user licenses have been proposed so that 5 workstations can be setup for video viewing. The system will also be able to be used on a laptop offsite (home) as long as a VPN connection to the City network is enabled. Building Technologies P0060833_01 | {City of Eden Prairie} City of Eden Prairie - Water Plant | City of Eden Prairie - Water Treatment Plant Camera Upgrades - 2-1-26 The symbol and the Bosch logotype are registered trademarks of Robert Bosch GmbH, Germany 3 Lastly, a new archiver (server) will be provided to store and process the new cameras within the Genetec system and will be installed at City Hall alongside the other servers. We will use the ﬁber network in between sites. A schedule of camera upgrades and abatements is listed below and corresponds to the ﬂoor plan attached. Proposal follows SWIFT Contract No. 234557 Release No. S-1006(5) guidelines where applicable. Building Technologies P0060833_01 | {City of Eden Prairie} City of Eden Prairie - Water Plant | City of Eden Prairie - Water Treatment Plant Camera Upgrades - 2-1-26 The symbol and the Bosch logotype are registered trademarks of Robert Bosch GmbH, Germany 4 Statement of Work • Bosch Building Technologies (BBT) will provide the solution described. • BBT to provide a 1-year material and labor warranty on the proposed solution. • BBT to provide submittal and as-built package and will include….. o Devices provided depicted on a ﬂoor plan. o Warranty • Electrical – All 110VAC needed (powering up the low voltage panel communications power supply and lock power supply) provided by BBT. • Conduit – Any conduit or rough-in needed provided by BBT. • Cabling - cable and cable pathways to be covered under the allowance in the proposal. We will also utilize any existing cable if in good working order. Proposal assumptions or work to be completed by others • Network - network infrastructure and connectivity including switches, patch panels, IP addresses and other associated items by others or to be reused. • Lift - provided by the City of Eden Prairie. City of Eden Prairie - Water Treatment Plant Camera Upgrades - 2-1-26 Summary Proposal Date: This Quotation is conﬁdential. Pricing is valid for 7 days unless otherwise noted. Financial Summary Summary Total Cabling & Infrastructure $46,560.39 Cameras & Associated Hardware $8,853.98 Implementation & Technical Services $16,640.00 Software, Server, & Licensing $22,853.38 Total $94,907.75 * Plus Applicable Taxes Building Technologies P0060833_01 | {City of Eden Prairie} City of Eden Prairie - Water Plant | City of Eden Prairie - Water Treatment Plant Camera Upgrades - 2-1-26 The symbol and the Bosch logotype are registered trademarks of Robert Bosch GmbH, Germany 5 Detailed Breakdown Description QTY Unit Price Extended Price 1 Security Desk Client Connection 5 $520.00 $2,600.00 Genetec Camera License - Omnicast 14 $216.67 $3,033.38 Cabling Contingency & Abatement 1 $25,110.00 $25,110.00 P3285-Lv Dome Camera 2 $640.16 $1,280.32 AXIS P4705-PLVE offers two channels with 2MP per channel, at a frame rate of up to 60 fps. With its unique design, this multidirectional camera offers cost-effective installation and flexible positioning of both varifocal camera heads. Each head can be controlled individually, so you can capture scenes in two directions in wide angle or zoomed-in views, with up to 2.5x zoom. It features Axis Lightfinder and Axis Forensic WDR for true colors and great details in challenging or poor light. The camera comes with a Deep Learning Processing Unit and can run analytics on both channels simultaneously. Furthermore, Zipstream with support for H.264 and H.265 significantly lowers bandwidth and storage requirements. T94N02D 1.5" NPS thread for fixed dome pendant kits. Includes insect-proof cable gasket and 1 pair of stainless steel straps (with TX30 screw) for pole diameter between 65-165mm (2.5"-6.5"). White in color. sensors and is perfect for 360° and 270° surveillance. You’ll be able to count on both high-quality overviews and detailed coverage thanks to the brilliant design of this cost-effective solution. With 360° IR illumination, the product provides excellent image quality around the clock, even in challenging lighting. With ARTPEC-8 and its deep learning processing unit, the product supports analytics and metadata on all sensors. DDR5 RAM - (2) 480GB M.2 SSD - (4) 16TB SATA HDD - (2) 1GbE RJ45 - (2) 600W PSU - Windows Building Technologies P0060833_01 | {City of Eden Prairie} City of Eden Prairie - Water Plant | City of Eden Prairie - Water Treatment Plant Camera Upgrades - 2-1-26 The symbol and the Bosch logotype are registered trademarks of Robert Bosch GmbH, Germany 6 Mounting Bracket, Pole, Poe Switch, Metal, Silver 2 $54.60 $109.20 Mount, Extension, 12" , Steel, White 2 $103.14 $206.28 Outdoor IP67 10GbE RJ45 surge protector 2 $138.67 $277.34 Outdoor 4-port 2.5 GbE Switch with 802.3af/PoE++ output, 100-240 VAC input. Clariﬁcations and Exclusions 1. Taxes are excluded unless speciﬁcally shown as included in the pricing summary. 2. All work to be completed during normal business hours (8:30am to 5:00pm, Monday to Friday, excluding Holidays) unless otherwise noted. 3. All prices quoted herein are valid for 7 days unless otherwise noted. 4. Any existing equipment, including cable, found to be faulty and in need of repair or replacement to ensure the proper installation and functioning of the equipment covered by this order may result in additional charges. 5. If installation workﬂow is delayed due to a lack of site readiness including but not limited to inaccessibility, incompleteness, or construction, then extra charges may apply. 6. Warranty Limitation. Unless otherwise speciﬁed, Bosch Building Technologies warrants the Products and Services from the time of substantial completion against defects in material and/or workmanship for a period of one (1) year in the amount, manner, and conditions indicated herein (“Warranty”). 7. Prices for Goods are subject to changes based on Tariffs or Other Taxes Imposed on Supplier. Supplier will provide notice to Customer for any such changes that impact the cost of goods sold. Supplier will pass the direct cost of any and all Tariffs or Other Taxes imposed on Supplier by any Governmental organization, to Customer. Building Technologies P0060833_01 | {City of Eden Prairie} City of Eden Prairie - Water Plant | City of Eden Prairie - Water Treatment Plant Camera Upgrades - 2-1-26 The symbol and the Bosch logotype are registered trademarks of Robert Bosch GmbH, Germany 7 Proposal Acceptance I have read the General Terms and Conditions (Appendix A) of the sale, understand them fully, and agree to abide by them. I hereby certify that I am authorized by my company to sign this agreement. Bosch Building Technologies is hereby authorized to perform the work as speciﬁed. Accepted By: Bosch Building Technologies Proposal No. P0060833_01 Accepted By: City of Eden Prairie Name: Building Technologies P0060833_01 | {City of Eden Prairie} City of Eden Prairie - Water Plant | City of Eden Prairie - Water Treatment Plant Camera Upgrades - 2-1-26 The symbol and the Bosch logotype are registered trademarks of Robert Bosch GmbH, Germany 8 Appendix A: General Terms & Conditions 1. DEFINITIONS AND ENTIRE AGREEMENT “Customer” means the party named as Client in the attached Project Description & Investment document. “Bosch Building Technologies” means Bosch Building Technologies, LLC. “Bosch Goods and Services” means the goods and services described in the attached Project Description & Investment document and any schedules attached by Bosch Building Technologies. “Quotation” means the agreement between Bosch Building Technologies and the Customer, comprised of the attached Project Description & Investment document, any schedules attached by Bosch Building Technologies, and these General Terms and Conditions. “Site” means the site for the work listed in the attached Project Description & Investment document. This Quotation may be accepted by the Customer by either signing where indicated in the attached Project Description & Investment document or by issuance to Bosch Building Technologies of a purchase order or similar document, which will constitute acceptance of these terms and conditions. This Quotation represents the entire agreement between the Customer and Bosch Building Technologies. No change, modiﬁcation, amendment, or other agreement about this Quotation will be binding on Bosch Building Technologies unless agreed to in writing by an authorized Bosch Building Technologies representative. No Bosch Building Technologies sales agent or representative is authorized to make any representations, warranties, or agreements, or to bind Bosch Building Technologies in any way, except for the representations, warranties and obligations provided for in this Quotation. The laws of the jurisdiction where the Site is located, including builders’ lien legislation, will apply to this Quotation and Bosch Building Technologies will have all rights of a contractor under such builders’ lien legislation. 2. WARRANTY Bosch Building Technologies warrants that the services provided by Bosch Building Technologies and its employees and subcontractors as part of the Bosch Goods and Services will be free from defects in design or workmanship for a period of one (1) year from the date of completion of the installation, provided that: Building Technologies P0060833_01 | {City of Eden Prairie} City of Eden Prairie - Water Plant | City of Eden Prairie - Water Treatment Plant Camera Upgrades - 2-1-26 The symbol and the Bosch logotype are registered trademarks of Robert Bosch GmbH, Germany 9 (a) the installation remains in ‘as installed’ condition, without any damage, abuse, modiﬁcation, addition, or alteration by the Customer or any other party; and (b) all regular maintenance and inspections as recommended by Bosch Building Technologies have been performed. In the event of any defects in such services, Bosch Building Technologies will immediately upon notiﬁcation by the Customer make the necessary repairs, at no cost to the Customer. Bosch Building Technologies does not make any representation or warranty regarding any goods or equipment forming part of the Bosch Goods and Services; however, Bosch Building Technologies will assist the Customer to enforce all manufacturers’ warranties applicable to such goods and equipment. On-site service charges may apply in connection with such assistance. Prior to returning any goods or equipment, a Return Material Authorization (RMA) form must be completed and can be obtained by contacting service@paladintechnologies.com. Shipping, handling, administration, and/or insurance charges may apply for Bosch Building Technologies to facilitate product RMA returns and manufacturer repairs. Except as expressly provided in this Warranty section, Bosch Building Technologies disclaims all warranties, expressed, implied or statutory, in relation to the Bosch Goods and Services and/or any other goods or services provided by Bosch Building Technologies to the Customer pursuant to this Quotation, and all such statutory or implied warranties are hereby waived and excluded. 3. PRICING AND PAYMENT TERMS All pricing provided for in this Quotation is a best estimate only, based upon the information available at the time of quoting. Pricing is valid assuming completion of supply of the Bosch Goods and Services within seven (7) days from the date of this Quotation. All prices and charges for the Bosch Goods and Services are subject to change due to Site, environmental, economic, and other conditions, including without limitation currency exchange ﬂuctuations and pricing changes by suppliers, and may be modiﬁed as determined by Bosch Building Technologies from time to time. On approved credit (“O.A.C.”), all charges must be paid in full, without any offset, deduction, or delay within thirty (30) days of the date of an invoice. Credit privileges may be revoked at any time at the sole discretion of Bosch Building Technologies Credit Department or Senior Finance Executives. Interest will apply at 1.5% per month (18% per annum) on any amounts which are not paid in full within such thirty (30) day period, calculated from the date that the invoice was originally issued. A fee of twenty-ﬁve percent (25%) of the applicable price provided in this Quotation will be charged for any product returns, if they are returned in their Building Technologies P0060833_01 | {City of Eden Prairie} City of Eden Prairie - Water Plant | City of Eden Prairie - Water Treatment Plant Camera Upgrades - 2-1-26 The symbol and the Bosch logotype are registered trademarks of Robert Bosch GmbH, Germany 10 original and unopened packaging within ﬁfteen (15) days of delivery. The Customer will be responsible for, and will pay on demand, all costs incurred by Bosch Building Technologies in connection with the enforcement of the terms of this Quotation including, but not limited to, travel expenses, court costs, collection agent costs, litigation costs and all legal fees incurred by Bosch Building Technologies. All applicable federal, provincial, state, and/or local taxes are payable in addition to the pricing in this Quotation. For travel outside the municipal boundaries of the cities in which a Bosch Building Technologies ofﬁce is located, the applicable hourly charge per Bosch Building Technologies personnel member and $1.25 per kilometer per vehicle will be charged from the point of origin to the Customer’s Site and return. Where applicable, airfare costs will be billed in addition to the hourly personnel charge. Incidentals such as freight, disposal fees, equipment rental fees for non-Bosch Building Technologies owned equipment, per diem/meals, accommodations, parking and airfare will be charged at an appropriate markup, where applicable. The Bosch Building Technologies Bucket Truck rental will be charged out at One Hundred and Twenty-Five ($125.00) dollars per hour with a two (2) hour minimum. Bosch Building Technologies may delay or discontinue the Bosch Goods and Services and/or terminate this Quotation without any liability or obligation whatsoever to Customer if (a) any equipment or component of the Customer’s system is altered, modiﬁed, changed or moved without written authorization from Bosch Building Technologies; (b) the Customer defaults under any agreement with Bosch Building Technologies, including without limitation any default in payment under this Quotation; (c) Bosch Building Technologies’ business and/or operations are disrupted or adversely affected due to causes beyond Bosch Building Technologies’ reasonable control; (d) goods, labour, transportation and/or capital are not readily available; and/or (e) the Customer is or becomes bankrupt, insolvent, makes an assignment for the beneﬁt of its creditors, fails to pay its debts as due, and/or otherwise suspends its business operations. The Customer may not terminate this Quotation unless Bosch Building Technologies has failed to fulﬁll its obligations hereunder for a period of thirty (30) days after written notice from the Customer. In the event Customer terminates this Quotation for any reason, the Customer will indemnify Bosch Building Technologies and save it harmless from any and all losses, costs and expenses associated with such termination, including, but not limited to loss of proﬁt, lost opportunities, direct, consequential, and incidental damages, and injury to goodwill and reputation. 4. CREDIT APPROVAL Building Technologies P0060833_01 | {City of Eden Prairie} City of Eden Prairie - Water Plant | City of Eden Prairie - Water Treatment Plant Camera Upgrades - 2-1-26 The symbol and the Bosch logotype are registered trademarks of Robert Bosch GmbH, Germany 11 Bosch Building Technologies’ obligations under this Quotation are always subject to Bosch Building Technologies’ Credit Policy (“Credit Policy”) and the approval by Bosch Building Technologies’ Finance department, at its sole discretion. If credit is not approved, alternative full or partial prepayment methods may be required to proceed. The Customer speciﬁcally consents to the collection and use by Bosch Building Technologies of Customer credit and ﬁnancial information, including the Customer’s credit ﬁle with any credit reporting agencies. 5. SITE ACCESS AND CONDITION The Customer must provide Bosch Building Technologies and its personnel and subcontractors with access to the Site as and when required, and the Customer is responsible for ensuring that the Site is a safe workplace in conformity with all applicable workers’ compensation and workplace safety laws and regulations. 6. RISK All risks and liability for loss or damage to any goods or equipment forming part of the Bosch Goods and Services will immediately pass to the Customer upon delivery to the Customer or to its carrier. Notwithstanding such passage of risk, in default of payment Bosch Building Technologies may, without limiting its other rights and remedies, remove from the Site any Bosch Goods and Services which have not been paid for in full. 7. SCHEDULE AND DELAYS Bosch Building Technologies will make commercially reasonable efforts to meet the scheduled dates for delivery or installation of the Bosch Goods and Services provided for in this Quotation, subject always to actions, omissions or delays of others or other circumstances beyond the reasonable control of Bosch Building Technologies. Under no circumstances will Bosch Building Technologies have any liability or obligation to the Customer or to any other person for any loss or damage resulting from any delay unless such delay was caused solely by Bosch Building Technologies’ breach of this section. 8. INDEPENDENT CONTRACTORS Bosch Building Technologies and the Customer are independent contractors, and neither will be considered to be the agent, representative, master or servant of the other party for any purpose whatsoever. Nothing in this relationship will be construed to create a joint venture, partnership, ﬁduciary or other similar relationship between the parties. 9. LIMITATION OF LIABILITY Under no circumstances, including any breach by Bosch Building Technologies of its obligations under this Quotation, any breakdown or non-performance of any equipment or Building Technologies P0060833_01 | {City of Eden Prairie} City of Eden Prairie - Water Plant | City of Eden Prairie - Water Treatment Plant Camera Upgrades - 2-1-26 The symbol and the Bosch logotype are registered trademarks of Robert Bosch GmbH, Germany 12 system forming part of the Bosch Goods and Services, or any negligence by Bosch Building Technologies or any of its employees, agents or subcontractors, will Bosch Building Technologies or any of its ofﬁcers, directors, employees, shareholders or representatives have any liability to the Customer or any of the Customer’s ofﬁcers, directors, employees, shareholders or representatives for any loss, costs, or damages in excess of the aggregate of the amounts actually received by Bosch Building Technologies from the Customer pursuant to this Quotation, regardless of the form of action or the basis for the claim. 10. CONFIDENTIALITY This Quotation and its terms, including all pricing terms and the system design, as well as any other information, material or documents provided to the Customer by Bosch Building Technologies either prior to or after this Quotation has been signed (collectively, “Conﬁdential Information”) are to be kept strictly conﬁdential by the Customer and its employees and agents. No disclosure of any Conﬁdential Information may be made to anyone outside the Customer’s organization (other than to its professional advisors or as the Customer may be legally obligated to make) without the prior written consent of Bosch Building Technologies. Persons with a hearing or speech disability may contact us by dialing 711 or 1.800.627.3529 Office of State Procurement 112 Administration Building 50 Sherburne Avenue St. Paul, MN 55155 Voice: 651.296.2600 Fax: 651.297.3996 November 27, 2024 Amanda Edwards Paladin Technologies USA Inc. 401 West Travelers Trail Burnsville, MN 55337 Dear Ms. Edwards: The following document is enclosed for you to complete and return: • Amendment No. 02 to SWIFT Contract No. 234557, Release No. S-1006(5). Using the DocuSign process, please have the attached document(s) signed and routed for the State’s execution as soon as possible. If the Amendment is not properly executed it will be returned to you. Upon receipt of the properly executed document, and after signatures are obtained from the appropriate State authorities, a copy of the completed Amendment will be sent to your company. If you have any questions, please feel free to contact me. Sincerely, Lana DuPaul Buyer 1 Enclosure(s) Docusign Envelope ID: 4D5E5C76-B919-4236-8180-1A68FC29A7BD Persons with a hearing or speech disability may contact us by dialing 711 or 1.800.627.3529 Amendment No. 02 to Contract No. 234557, Release No. S-1006(5) AMENDMENT NO. 02 TO CONTRACT NO. 234557 RELEASE NO. S-1006(5) THIS AMENDMENT is by and between the State of Minnesota, acting through its Commissioner of Administration (“State”), and Paladin Technologies USA Inc., 401 West Travelers Trail, Burnsville, MN 55337 (“Contractor”). WHEREAS, the State has a Contract with the Contractor identified as Contract No. 234557, as assigned from Contract No. 221500, December 1, 2022, through November 30, 2024 (“Contract”), to provide Genetec Software, Maintenance, Support, and Related Equipment; and WHEREAS, Minn. Stat. § 16C.03, subd. 5, affords the Commissioner of Administration, or delegate pursuant to Minn. Stat. § 16C.03, subd. 16, the authority to amend contracts; and WHEREAS, the terms of the Contract allow the State to amend the Contract as specified herein, upon the mutual agreement of the Office of State Procurement and the Contractor in a fully executed amendment to the Contract. NOW, THEREFORE, it is agreed by the parties to amend the Contract as follows: 1. That Contract No. 234557 is extended through November 30, 2026 at the same terms and conditions. The Original Contract and any previous amendments are incorporated into this amendment by reference. 2. That Amendment 1, Attachment A: Price Schedule – Paladin Technologies Contract No. 234557 is DELETED and REPLACED with the price schedule attached as Amendment 2, Attachment A: Price Schedule – Paladin Technologies Contract No. 234557. This Amendment is effective beginning December 1, 2024, or upon the date that the final required signatures are obtained, whichever occurs later, and shall remain in effect through contract expiration, or until the Contract is canceled, whichever occurs first. Except as herein amended, the provisions of the Contract between the parties hereto are expressly reaffirmed and remain in full force and effect. IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed intending to be bound thereby. 1. PALADIN TECHNOLOGIES USA INC The Contractor certifies that the appropriate person(s) have executed this Amendment on behalf of the Contractor as required by applicable articles, bylaws, resolutions, or ordinances. By: Signature Printed Name Title: Date: By: Signature Printed Name Title: Date: 2. OFFICE OF STATE PROCUREMENT In accordance with Minn. Stat. § 16C.03, subd. 3. By: Title: Acquisition Management Specialist / Buyer Date: 3. COMMISSIONER OF ADMINISTRATION Or delegated representative. By: Date: Docusign Envelope ID: 4D5E5C76-B919-4236-8180-1A68FC29A7BD Amanda Edwards Senior Account Executive 11/26/2024 11/26/2024 11/26/2024 Persons with a hearing or speech disability may contact us by dialing 711 or 1.800.627.3529 Amendment No. 02 to Contract No. 234557, Release No. S-1006(5) Amendment 2, Attachment A: Price Schedule – Paladin Technologies Contract No. 234557 Contractor is primary Contract provider for products, product programming, product installation, and Genetec licensing. Products and services will be purchased by the Customer on an “as-needed” basis. 1. Software maintenance pricing. The list below is existing devices located at the various State correctional facilities: System Name # of Cameras # of Readers # of Intercoms MCF-Stillwater Spare 0 0 0 MCF-St Cloud Spare 0 0 0 MCF-Shakopee Spare 0 0 0 MCF-Red Wing Spare 0 0 0 MCF-Rush City Spare 0 0 0 MCF-Lino Lakes Spare 0 0 0 MCF-Oak Park Prod 1037 45 1 MCF-Lino Lakes Prod 742 54 0 MCF-Central Office SC 1 0 1 MCF-St Cloud Prod 1034 28 0 MCF-Stillwater Prod 1009 12 1 MCF-Shakopee Prod 407 18 0 MCF-Rush City Prod 680 84 0 MCF-Red Wing Prod 350 8 0 MCF-Faribault Prod 1371 145 1 MCF-Central Office VMS 58 148 0 MCF-Togo Prod 130 14 0 MCF-Willow River Prod 108 33 2 MCF-Faribault Spare 13 13 1 MCF-Transportation Prod Bus 46 13 0 0 MCF-Moose Lake Prod 937 82 7 MCF-Transportation Prod Bus 47 13 0 0 MCF-Moose Lake Spare 0 0 0 TOTALS 7903 684 14 1.1 Annual software maintenance cost for all devices listed in table above, and including the custom sally port + inmate tracking solution support: $234,051.84__________ *Total cost in 1.1 for annual software maintenance is made up of the following unit costs: ADV-RE-CAM-E-1Y: $27.54 per camera, enterprise, for 7,890 units = $217,290.60 ADV-RE-RDR-E-1Y: $8.64 per card reader, enterprise, for 671 units = $5,797.44 Docusign Envelope ID: 4D5E5C76-B919-4236-8180-1A68FC29A7BD Persons with a hearing or speech disability may contact us by dialing 711 or 1.800.627.3529 Amendment No. 02 to Contract No. 234557, Release No. S-1006(5) ADV-RE-CAM-S-1Y: $16.20 per camera, standard, for 13 units = $210.60 ADV-RE-RDR-S-1Y: $5.40 per card reader, standard, for 13 units = $70.20 ADV-RE-LPR-F-1Y: $81.60 per AutoVu connection, for 1 unit = $81.60 ADV-RE-LPR-M-1Y: $204.00 per AutoVu mobile connection, for 2 units = $408.00 ADV-RE-SIP-1Y: $21.60 per standard intercom connection, for 13 units = $280.80 ADV-RE-SIP-S-1Y: $13.50 per standard intercom connection (5.10 or older), for 1 unit = $13.50 ADV-RE-SIP-A-1Y: $8.10 per advanced intercom connection, for 1 unit = $8.10 ADV-RE-MC-1OPP-1Y: $1,620.00 per Mission Control operator, for 3 units = $4,860.00 ADV-RE-CUSTOM-1Y: $2,000 for custom sally port + inmate tracking, for 1 unit = $2,000.00 ADV-OPTION-247-1Y: $3,510 for 24/7 support, for 1 unit = $3,031.00 2. Cost-plus price percentage for Genetec Products. See Exhibit D, Section 1.2 for details on the cost-plus requirement. 20% 3. Pricing for ongoing support including SDK through Genetec security center: Type of Support Description of Support License Type (per/facility, per/seat, etc.) Cost per License Type Phone Genetec Phone Support by Certified DOC Staff Per Call $0 On-Site / Remote Level 1 Technician Per Call $150/hr On-Site / Remote Level 2 Technician Per Call $175/hr GTAP On-line Genetec support portal for Certified DOC Staff Per Call $0 Genetec Pro Svcs On-Site Professional Services offered by Genetec Per quote upon request Cost + 20% 4. Cameras and specifically related products and manufacturers authorized to be used are listed below: Manufacturer, category (C = Camera, CON = Controllers, E = Encoder, RDR = Reader, R = Recorder, V = Video Equipment, or S = Software) and the cost-plus percentage being proposed. Manufacturer Category Cost-Plus Percentage Altronix CON,V 25% Tyco/Johnson Controls/Software House C,CON,E,RDR,R,V 25% Avigilon/Motorola C,CON,E,RDR,R,V 25% Axis C,CON,E,R,V 25% Bosch C,CON,E,R,V 25% Lenel/S2 C,CON,RDR,R,V 25% Milestone C,E,R,V 25% Panasonic/iPRO C,E,R,V 25% Hanwha C,E,R,V 25% Stentofon/Zenitel C,CON,E,V 25% Winsted V 25% Honeywell C,CON,E,RDR,R,V 25% Docusign Envelope ID: 4D5E5C76-B919-4236-8180-1A68FC29A7BD Persons with a hearing or speech disability may contact us by dialing 711 or 1.800.627.3529 Amendment No. 02 to Contract No. 234557, Release No. S-1006(5) Senstar C,CON,E,R,V 25% Salto CON,V 25% AMAG C,CON,E,RDR,V 25% DMP C,CON,E,RDR,V 25% EVOLV CON,V 25% Dynatrol S 25% Optex V 25% Samsung V 25% Planar V 25% LG V 25% Epson V 25% Sony V 25% Crown Audio 25% QSC V,CON 25% Biamp Audio 25% Poly V, CON 25% Cisco V, CON 25% Logitech V, CON 25% Vaddio V, C, Audio 25% Crestron V, C, CON 25% Middle Atlantic CON 25% SurgeX Power 25% 5. Hourly rates for services below (all services must be related to Genetec products). All costs must be included in the hourly rate, including but not limited to travel, lodging, meals and labor. Title Description of Service Hourly Rate Installation/Programmer Programming and Integration services $135.00 Project Manager Project Management $140.00 Engineer System Design and Documentation $150.00 Service Technician Level 1 Repair Services (During Business Hours) $155.00 Service Technician Level 2 Programmer/Infrastructure Services $175.00 6. Training: Contractor must provide user and administrative training as requested. Training may include but is not limited to installation and configuring server and client software, optimizing the environment, discovery of all entities within the system environment, entity installation, configuration of entities, general use of software, daily use, best practices, PTZ Controls, bookmarking video segments and instant replay. All training materials must be provided at no additional cost. Describe training options available, including but not limited to the number of students per session, length of session, on-site, webinar, train-the-trainer, and costs of each in the table below. Type of Training Description Cost (detail if per/session, per/student, etc.) Docusign Envelope ID: 4D5E5C76-B919-4236-8180-1A68FC29A7BD Persons with a hearing or speech disability may contact us by dialing 711 or 1.800.627.3529 Amendment No. 02 to Contract No. 234557, Release No. S-1006(5) On-site Paladin Provided local training as per labor rates outlined above - as needed without limit to length or students $135/hour Webinar Custom Online Training offered at cost with no mark-up $1,500/8 hour Custom Courseware Development Security Center Custom Courseware Development offered at cost with no mark-up $1,100.00 Genetec Custom Training Upon request by the DOC custom training courses are offered at cost with no mark-up $3,000/day + airfare 7. Security Systems 2024 Equipment List: State Contract pricing for the individual items listed below. Model # Description Price Each GSC-Base-5.12 GSC Security Center Version 5.12 $0.00 GSC-Base-E Base Enterprise Package $3,998.00 GSC-Om-E-1C GSC Omnicast 1 Enterprise Camera Connection $200.00 ADV-CAM-E-1Y Advantage for 1 Omnicast Enterprise Camera, 1 Year (for Non-DOC) $41.00 ADV-RDR-E-1Y Advantage for 1 Synergis Enterprise Card Reader Connection (for Non-DOC) $12.80 ADV-RDR-P-1Y Advantage for 1 Synergis Professional Card Reader Connection (for Non-DOC) $10.40 ADV-SIP-1Y Advantage for 1 Sipelia Intercom Connection (for Non-DOC) $32.00 GSC-Base-P Synergis Professional Package $1,250.00 GSC-Sy-P-1R GSC Synergis Professional Package – External Reader Connection $160.00 GSC-Sipelia-Base GSC Sipelia Base Package $1,169.00 CLR-PLAN200-USGOV Genetec Clearance™ Plan 200 - includes 200 new cases per month, 3,000GB of storage, and an unlimited number of user accounts. $19,100.00 CLR-PLAN1000-USGOV Genetec Clearance™ Plan 200 - includes 1000 new cases per month, 15,000GB of storage, and an unlimited number of user accounts. Account data is stored in the United States in US Government Cloud (CJIS Compliant). $71,000.00 SY-MP1502 Mercury Intelligent Controller, Linux Based $1,488.00 SY-MR52-S3 Mercury MR52 2-reader interface module (8 inputs, 6 relays, PCB only, software connections included) $716.00 GSC-SIPELIA-1SIP 1 Connection to Intercom Station $236.00 40NKS-00-000000 Reader, Signo 40, Black/Silver $235.57 FPO150/250-2C82D8PE6M1 Power Supply, Dual Voltage, 16 Aux Out, 16 Lock Out, 30”H X 23”W X 6.5”D, Mercury $2,557.11 FPO150/250-2C83D8PE6M1/T16-A Power Supply, Dual Voltage, 24 Aux Out, 16 Lock Out, 30”H X 23”W X 6.5”D, Mercury, Tie Wrap Wiring $3,117.63 Q6075-E HDTV 1080p and 40x optical zoom, Lightfinder 2.0 which captures low-light $3,211.15 P3265-LVE vandal-resistant outdoor dome in 1080p with WDR and Zipstream $698.00 XNV-6080R 2MP Vandal-Resistant Network Dome Camera $665.00 RF IDeas RDR-7081BKU RF IDeas WAVE ID Solo Keystroke (13.56 MHz) - Access Control Readers, rf IDEAS WAVE ID Solo Keystroke (13.56MHz), HID iCLASS SE Black USB Reader $208.00 Docusign Envelope ID: 4D5E5C76-B919-4236-8180-1A68FC29A7BD City Council Agenda Cover Memo Date: May 05, 2026 Section: Payment of Claims Item Number: IX Department: Administration / Finance ITEM DESCRIPTION Payment of Claims REQUESTED ACTION Move to approve the payment of claims as submitted (Role Call Vote) SUMMARY Checks 320171 - 320194 Checks 5006925 - 5007247 Wire Transfers 12562 – 12601 Purchasing Card 12601 ATTACHMENTS Check Summary Check Register City of Eden Prairie Council Check Summary 5/5/2026 Division Amount Division Amount 000 General 34,071 304 Senior Board 250 100 City Manager 5,250 308 E-911 864 101 Legislative 4,395 309 DWI Forfeiture 52 102 Legal Counsel 43,743 315 Economic Development 1,165 110 City Clerk 1,044 445 Cable PEG 100 111 Customer Service 52 502 Park Development 256 112 Human Resources 44 509 CIP Fund 468,986 113 Communications 360 526 Transportation Fund 4,000 114 Benefits & Training 11,904 543 Police Remodel 1,827,132 130 Assessing 10,508 544 Shady Oak (FCD to Valley View)3,049 131 Finance 80 Total Capital Projects Fund 2,305,854 132 Housing and Community Services 60 133 Planning 1,160 601 Prairie Village Liquor 100,931 136 Public Safety Communications 3,342 602 Den Road Liquor 185,015 137 Economic Development 10,000 603 Prairie View Liquor 119,143 150 Park Administration 51 605 Den Road Building 6,215 151 Park Maintenance 51,752 701 Water Enterprise Fund 228,853 153 Organized Athletics 379 702 Wastewater Enterprise Fund 407,624 154 Community Center 14,055 703 Stormwater Enterprise Fund 16,253 156 Youth Programs 675 Total Enterprise Fund 1,064,035 157 Special Events 1,865 158 Senior Center 1,189 802 494 Commuter Services 28,148 159 Recreation Administration 604 804 100 Year History 2 160 Therapeutic Recreation 374 807 Benefits Fund 691,365 162 Arts 2,038 809 Investment Fund 4,967 163 Outdoor Center 949 812 Fleet Internal Service 263,335 168 Art Center 5,294 813 IT Internal Service 131,646 180 Police Sworn 90,818 814 Facilities Capital ISF 195 184 Fire 43,125 815 Facilities Operating ISF 32,678 186 Inspections 485 816 Facilities City Center ISF 45,861 201 Street Maintenance 30,231 817 Facilities Comm. Center ISF 123,077 202 Street Lighting 909 818 Dental Insurance 12,988 Total General Fund 370,807 Total Internal Svc/Agency Fund 1,334,262 301 CDBG 10,743 Report Total 5,108,002 303 Cemetery Operation 86 321 Opioid Settlement 22,108 322 Local Affordable Housing Aid 108 Total Special Revenue Fund 33,044 City of Eden Prairie Council Check Register 5/5/2026 Amount Vendor Accounts Description Business Unit Comments 802,422 FOBBE ELECTRIC INC OCS-Other Contracted Services Police Remodel Police Renovation 404,120 METROPOLITAN COUNCIL MCES User Fee Wastewater Collection Wastewater Fee Met Council April 2026 323,950 UKG INC Payroll Taxes Health & Benefits Payroll Taxes PR Period Ending 04.17.26 248,837 WEIDNER PLUMBING & HEATING CO OCS-Other Contracted Services Police Remodel Police Renovation 243,159 PUBLIC EMPLOYEES RETIREMENT ASSOCIATION PERA Health & Benefits PERA PR Period Ending 04.03.26 175,371 JOHNSON COMPANIES LLC OCS-Other Contracted Services Capital Maintenance & Reinvestment Richard T Anderson retaining wall. 170,145 KELLINGTON CONSTRUCTION INC OCS-Other Contracted Services Police Remodel Police Renovation 164,303 CORE MECHANICAL SERVICES LLC OCS-Other Contracted Services Police Remodel Police Renovation 138,409 JOHNSON COMPANIES LLC OCS-Other Contracted Services Capital Maintenance & Reinvestment Richard T Anderson retaining wall. 137,534 MINNESOTA DEPT OF REVENUE Sales Tax Payable Various Funds Sales Tax March 2026 128,135 DODGE OF BURNSVILLE Autos Fleet-Police New Vehicle Purchase - 233, 224 & 219 119,577 LOGIS Software Maintenance IT Operating Hosted backups, SIEM, server, wireless Mar'26 110,418 BRAMIC CREATIVE BUSINESS PRODUCTS LTD OCS-Other Contracted Services Police Remodel Police Renovation 93,155 DREAMLAND CONTRACTING LLC Improvement Contracts Capital Maintenance & Reinvestment 90,244 USB-PURCHASING CARD Various Accounts Various Funds 80,078 MULCAHY NICKOLAUS LLC OCS-Other Contracted Services Police Remodel 56,601 HENNEPIN COUNTY TREASURER OCS-Other Contracted Services Police Sworn 51,662 XCEL ENERGY Electric Various Funds 48,266 KARL OF MARSHALLTOWN LLC Autos Fleet-Water 48,266 KARL OF MARSHALLTOWN LLC Autos Fleet-Park & Rec 48,113 SUPER SET FLOORING & TILE LLC OCS-Other Contracted Services Police Remodel 47,500 SONUS INTERIORS INC OCS-Other Contracted Services Police Remodel 43,480 EBERT CONSTRUCTION OCS-Other Contracted Services Police Remodel 43,261 GREGERSON ROSOW JOHNSON & NILAN LTD Legal Legal 38,750 EXCEL LAWN & LANDSCAPE OCS-Other Contracted Services Various Funds 38,431 SOUTH METRO PUBLIC SAFETY TRAINING FACIL OCS-Other Contracted Services Police Sworn and Fire 37,997 UKG INC Software Maintenance IT Operating 36,734 VOYA Deferred Compensation Health & Benefits 35,724 LANDBRIDGE ECOLOGICAL OCS-Other Contracted Services Capital Maintenance & Reinvestment 29,610 DIVERSE BUILDING MAINTENANCE Janitor Service Various Funds 27,895 SUMMIT FIRE PROTECTION OCS-Other Contracted Services Police Remodel 26,664 JOHNSON BROTHERS LIQUOR CO Liquor Product Received Liquor Funds 25,686 GARTNER REFRIGERATION & MFG INC OCS-Other Contracted Services Ice Arena Maintenance 25,575 JOHNSON BROTHERS LIQUOR CO Liquor Product Received Liquor Funds 25,010 BREAKTHRU BEVERAGE MN BEER LLC Liquor Product Received Liquor Funds 23,561 CENTERPOINT ENERGY Gas Various Funds 22,802 ADVANCED ENGINEERING & ENVIROMENTAL SERV Process Control Services Water Capital 22,705 ADMIRAL COATINGS, INC OCS-Other Contracted Services Police Remodel 22,058 ICMA RETIREMENT TRUST-457 Deferred Compensation Health & Benefits 21,119 STANTEC CONSULTING SERVICES INC Design & Engineering Capital Maintenance & Reinvestment 20,819 WEX Health Savings Account Health & Benefits 19,765 HULS BROKERAGE INC Lime Residual Removal Water Treatment 19,056 SOUTHERN GLAZER'S WINE AND SPIRITS OF MINNESOTA LLC Liquor Product Received Liquor Funds 18,795 GRI EDEN PRAIRIE, LLC Rent Prairie Village Liquor 17,849 PRAIRIEVIEW RETAIL LLC Rent Prairie View Liquor 16,883 MANSFIELD OIL COMPANY Motor Fuels Fleet Operating 16,746 GRAYMONT Chemicals Water Treatment 16,601 XCEL ENERGY Electric Various Funds 16,594 BREAKTHRU BEVERAGE MN BEER LLC Liquor Product Received Liquor Funds 16,275 SOUTHERN GLAZER'S WINE AND SPIRITS OF MINNESOTA LLC Liquor Product Received Liquor Funds 15,481 KLEIN UNDERGROUND LLC Gravel, Blacktop, Concrete Water Distribution 14,907 PAYCHEX Wages and Benefits 494 Corridor Commission 14,782 PHILLIPS WINE AND SPIRITS INC Liquor Product Received Liquor Funds 14,471 SHORT ELLIOTT HENDRICKSON INC Design & Engineering Stormwater Capital 14,256 BADGER METER Telephone Water Metering Amount Vendor Accounts Description Business Unit Comments 13,453 CAPITOL BEVERAGE SALES LP Liquor Product Received Liquor Funds 12,168 EARL F ANDERSON Signs Traffic Signs 12,126 UKG INC MN Paid Medical/Leave Liability Health & Benefits 11,599 CAPITOL BEVERAGE SALES LP Liquor Product Received Liquor Funds 10,365 BLOOMINGTON HEATING & AIR OCS-Other Contracted Services Rehab 10,000 HENNEPIN COUNTY ACCOUNTS RECEIVABLE OCS-Other Contracted Services Economic Development 9,685 NAC MECHANICAL AND ELETRICAL SERVICES 8,999 XCEL ENERGY 8,288 GRAYMONT 7,880 SHADYWOOD TREE EXPERTS 7,361 HACH COMPANY 7,286 HAMMER COMMUNITY SOLAR LLC 7,223 PRECISION UTILITIES 7,119 SYNTHETIC TURF SOLUTIONS INC 7,119 HAWKINS INC 7,099 HEALTHPARTNERS 7,049 SRF CONSULTING GROUP INC 7,044 HENNEPIN COUNTY TREASURER 7,016 SITEONE LANDSCAPE SUPPLY, LLC 7,004 DG MINNESOTA CS 2021 LLC 6,636 PRO HYDRO-TEST LLC 6,609 BREAKTHRU BEVERAGE MN WINE & SPIRITS 6,250 SOJOURNER PROJECT INC. 6,204 XCEL ENERGY 6,117 WINEBOW 6,059 CONTRACT HARDWARE CO, INC 5,961 ARTISAN BEER COMPANY 5,875 INTERSTATE POWER SYSTEMS INC 5,839 HEALTHPARTNERS 5,800 PIONEER ATHLETICS 5,722 HEALTHPARTNERS 5,706 LAW ENFORCEMENT LABOR SERVICES INC. 5,686 BOSCH BUILDING TECHNOLOGIES LLC 5,414 STREICHERS 5,329 STREICHERS 5,295 HINTERLAND CSG LLC 5,252 J&L STEEL ERECTORS LLC 5,123 TOWMASTER 4,972 JRK STEEL INC 4,967 PFM ASSET MANAGEMENT LLC 4,697 HOHENSTEINS INC 4,679 DAKOTA SUPPLY GROUP INC 4,569 BLOOMINGTON, CITY OF 4,433 SOBANIA COMMUNITY SOLAR 4,406 METRO SALES INCORPORATED* 4,307 PHILLIPS WINE AND SPIRITS INC 4,274 ARTISAN BEER COMPANY 4,242 BREAKTHRU BEVERAGE MN WINE & SPIRITS 4,148 SITEONE LANDSCAPE SUPPLY, LLC 4,145 VERIZON WIRELESS 4,103 BIFFS INC 4,000 SUBURBAN WILDLIFE CONTROL INC 3,984 SYMETRA LIFE INSURANCE COMPANY 3,950 HOHENSTEINS INC 3,609 DELOITTE TAX LLP 3,500 HENNEPIN TECHNICAL COLLEGE 3,500 HENNEPIN TECHNICAL COLLEGE 3,485 WALL TRENDS INC 3,372 MINNESOTA DEPARTMENT OF EMPLOYMENT Amount Vendor Accounts Description Business Unit Comments 3,327 T-MOBILE 3,264 WM CORPORATE SERVICES INC 3,167 OXFORD STREET MERCHANTS 3,140 MINNESOTA CLAY CO. USA 2,972 PRAIRIE ELECTRIC COMPANY 2,900 WEX 2,828 AMERICAN RED CROSS 2,822 PRESCRIPTION LANDSCAPE 2,794 ASPEN MILLS 2,750 ON CALL SERVICES 2,688 LLOYDS CONSTRUCTION 2,668 WEX 2,592 CLEAR RIVER BEVERAGE CO 2,538 MIDWEST OVERHEAD CRANE 2,445 VAN PAPER COMPANY 2,409 PAUSTIS & SONS COMPANY 2,393 STERLING FENCE INC 2,381 DUNHAM ASSOCIATES 2,339 MACQUEEN EQUIPMENT INC 2,308 WEX 2,225 WEX 2,200 HENNEPIN HEALTHCARE 2,200 GRAINGER 2,196 HENNEPIN COUNTY TREASURER 2,195 EMERALD ELEMENTS 2,172 BKJ LAND COMPANY 2,139 WEX 2,137 PERA 2,103 PAUSTIS & SONS COMPANY 2,097 DOMACE VINO LLC 2,057 OXFORD STREET MERCHANTS 2,000 CITY OF EDEN PRAIRIE 2,000 WEX 1,859 BELLBOY CORPORATION 1,800 PRO TREE OUTDOOR SERVICES 1,761 TEE JAY NORTH INC 1,742 GLOBAL RESERVE LLC 1,714 CLEAR RIVER BEVERAGE CO 1,702 GENUINE PARTS COMPANY 1,689 AIRGAS USA LLC 1,685 TWIN CITIES DOTS AND POP LLC 1,581 GREAT LAKES COCA-COLA DISTRIBUTION 1,552 FORESTRY SUPPLIERS INC. 1,524 ASPEN MILLS 1,524 LYNDALE PLANT SERVICES 1,500 LOCAL 5539 EDEN PRAIRIE 1,468 YORKTOWN OFFICES 1,443 GREAT LAKES COCA-COLA DISTRIBUTION 1,427 MEGA BEER 1,312 BELLBOY CORPORATION 1,307 MEGA BEER 1,306 JSW EMBROIDERY & TACKLE TWILL 1,300 ENCORE CLEAR BRA LLC 1,264 GYM WORKS 1,262 FERGUSON WATERWORKS 1,260 TRAFERA LLC 1,254 MINNEAPOLIS GLASS COMPANY 1,253 SYSCO WESTERN MINNESOTA 1,222 MAVERICK WINE LLC Amount Vendor Accounts Description Business Unit Comments 1,140 UKG INC 1,140 SECURE BY DESIGN INC 1,133 VINOCOPIA 1,120 LEAST SERVICES COUNSELING 1,090 CORE & MAIN 1,080 METROPOLITAN STATE UNIVERSITY 1,080 SCHMIDT, MATT 1,080 PETERSON COUNSELING AND CONSULTING LLC 1,018 MINNESOTA DEPT OF REVENUE 983 SUMMER LAKES BEVERAGE LLC 972 WEX 970 FASTENAL COMPANY 959 WOODEN HILL BREWING COMPANY LLC 946 HENNEPIN COUNTY TREASURER 944 VINOCOPIA 939 INSIGHT BREWING COMPANY LLC 886 LIFELINE INC 876 WM MUELLER AND SONS INC 875 GUNNAR ELECTRIC CO INC 855 METRO ELEVATOR 844 IDEAL SERVICE INC 838 UNMAPPED BREWING CO 820 PUBLIC EMPLOYEES RETIREMENT ASSOCIATION 795 BARREL THEORY BEER COMPANY 788 DANGEROUS MAN BREWING 763 WEX 759 MAVERICK WINE LLC 737 WEX 728 GOPHER STATE ONE-CALL 726 VENN BREWING COMPANY 726 SMALL LOT MN 726 FAT PANTS BREWING CO LLC 718 PAYCHEX 716 MODIST BREWING COMPANY 706 MENARDS 698 BOURGET IMPORTS 687 FASTENAL COMPANY 678 XCEL ENERGY 664 INTHERMO INC 651 POMP'S TIRE SERVICE INC 650 SUPERIOR TURF SERVICES 640 KORAS, JORDAN 632 SOLUTION BUILDERS 626 PRINCIPAL FINANCIAL GROUP 624 XCEL ENERGY 595 TRENCHERS PLUS INC 585 FIRE SAFETY USA INC 577 WEX 573 XCEL ENERGY 550 JOHN HENRY FOSTER MINNESOTA INC 548 WEX 535 XCEL ENERGY 527 EMERGENCY TECHNICAL DECON 522 KRISS PREMIUM PRODUCTS INC 522 BOUND TREE MEDICAL LLC 510 METERING & TECHNOLOGY SOLUTIONS 506 XCEL ENERGY 484 MENARDS 476 VERIZON WIRELESS Amount Vendor Accounts Description Business Unit Comments 458 PRYOR LEARNING LLC 444 DIVERSE BUILDING MAINTENANCE 440 EDEN PRAIRIE COMMUNITY EDUCATION 436 PDCM/DDP 432 BARREL THEORY BEER COMPANY 428 WEX 407 BARNHART JEREMY 405 CENTRAL HYDRAULICS , INC. - ROGERS 405 MTI DISTRIBUTING INC 391 MTI DISTRIBUTING INC 387 ROADKILL ANIMAL CONTROL 382 WEX 377 WEX 377 EDINA FIREFIGHTERS LOCAL 1275 366 XCEL ENERGY 364 WM MUELLER AND SONS INC 357 MODIST BREWING COMPANY 344 QUALITY PROPANE 336 JUNKYARD BREWING COMPANY LLC 324 ZIEGLER INC 323 HOANG PHU 320 HORIZON COMMERCIAL POOL SUPPLY 311 TWIN CITY SEED CO 303 DELTA DENTAL 295 KAPAUN, RYAN 291 STERICYCLE INC 290 LAUREN EDSON 288 BIG STATE INDUSTRIAL SUPPLY INC 286 PRYES BREWING COMPANY 283 TROY JOHNSON 277 ECM PUBLISHERS INC 277 MR CUTTING EDGE 265 ABRAMOVICH GENNADIY 265 GYM WORKS 260 STEEL TOE BREWING LLC 259 OPTUM HEALTH 256 HIGHWAY 5 BP 248 UNMAPPED BREWING CO 233 STEEL TOE BREWING LLC 229 SHYLA SCHWARTZ 228 DANGEROUS MAN BREWING 227 ECM PUBLISHERS INC 222 VANCO SERVICES 217 MOTOROLA 212 GROTH MUSIC 206 JACQUELINE PLOOF 205 SHAMROCK GROUP, INC - ACE ICE 200 OFFICE OF MN IT SERVICES 199 UKG INC 198 TWIN CITY SEED CO 196 PAUL THOMAS 194 INBOUND BREW CO 192 MONTGOMERY BREWING COMPANY LLC 192 GLOBAL RESERVE LLC 190 VESTIS SERVICES LLC 185 NOVACARE REHABILITATION 185 VESTIS SERVICES LLC 184 AM CRAFT SPIRITS SALES & MARKETING 180 WEX Amount Vendor Accounts Description Business Unit Comments 175 KRISTEN TWITCHELL 174 GUARDIAN FLEET SAFETY LLC 171 ELEANOR NORDLEY 170 INDIGO SIGNWORKS, INC. 166 ADAMS PEST CONTROL INC 166 OPENDOOR LABS INC 165 DAILEY DATA & ASSOCIATES 165 HEALTH STRATEGIES 157 TOM TOLLEFSON 150 BACK CHANNEL BREWING COLLECTIVE LLC 145 SHRED RIGHT 141 FACTORY MOTOR PARTS COMPANY 139 VERIZON WIRELESS 138 MINNESOTA ICE SCULPTURES LLC 132 PAUL SEMINARI 129 CUSTOM HOSE TECH 126 STATE SUPPLY COMPANY 125 MANBECK ANGELA M 124 KALYAN GANGEYULA 123 CEF EDEN PRAIRIE COMMUNITY SOLAR LLC 121 KATHERINE CRAMER 118 WEX 109 MONTGOMERY BREWING COMPANY LLC 105 ANDERSON LAKES ANIMAL HOSPITAL 100 EDINA, CITY OF 98 JANINA CICH 94 LEONARD, MICHELLE 94 RIGID HITCH INCORPORATED 92 PAYCHEX 90 LAURA RETTINGER 88 BETH NEUBRECH 87 ANGIE KNISS 86 JANEX INC 86 XCEL ENERGY 83 SHULTS TATYANA 75 KIMBERLY MILLIGAN 72 NARAYANAN PG 70 WEX 69 CEF EP COMMUNITY SOLAR LLC 67 XCEL ENERGY 67 SARAH A MARCUM 66 CUB FOODS EDEN PRAIRIE 65 MITCHELL SARKIS 63 SUKRU ERISGEN 61 CASE, RON 61 BERRY COFFEE COMPANY 60 MPX GROUP, THE 60 MPX GROUP, THE 59 MATTHEW KIERSTED 58 SYSCO WESTERN MINNESOTA 55 WEX 52 BOHNSACK, SUE 51 MINNESOTA TROPHIES & GIFTS 50 THOMPSON, NATE 50 MOQUIST, LYNDON 50 HOFFMAN MARK 50 DANELLE SIMENSON 48 METROPOLITAN FORD 48 BERRY COFFEE COMPANY Amount Vendor Accounts Description Business Unit Comments 44 SUEDBECK CARRIE 44 MICHAEL BENSON 42 SEDONA LASHKOWITZ 31 BATTERIES PLUS BULBS #1248 30 VERIZON WIRELESS 29 GARY SPEARS 27 JENNA BELAEN 26 MINNESOTA DEPT OF PUBLIC SAFETY 26 MINNESOTA DEPT OF PUBLIC SAFETY 26 MINNESOTA TROPHIES & GIFTS 24 STAPLES ADVANTAGE 23 WEX 23 JILL HYLAND 22 WEX 19 XCEL ENERGY 18 FEDEX 17 XCEL ENERGY 17 XCEL ENERGY 17 XCEL ENERGY 16 CLINTON SHAVER 16 HENNEPIN COUNTY TREASURER 15 MINNESOTA VALLEY ELECTRIC COOPERATIVE 11 WEX 9 SHUNCHENG LIU 6 BOBBY & STEVE'S AUTO WORLD EDEN PRAIRIE 6 NELSON, ROBIN 5,108,002 Report Total City Council Agenda Cover Memo Date: May 5, 2026 Section: Report of City Manager Item Number: XIII.B.1. Department: Finance – Tammy Wilson, Finance Manager ITEM DESCRIPTION 2025 Annual Comprehensive Financial Report (ACFR). REQUESTED ACTION Move to accept the 2025 Annual Comprehensive Financial Report (ACFR). SUMMARY Minnesota statutes require that the City prepare an annual ﬁnancial report and statements in accordance with Generally Accepted Accounting Principles. The attached reports meet these requirements. The report was prepared by the Finance Division and audited by the independent auditing ﬁrm of BerganKDV/Creative Planning. BerganKDV issued an unmodiﬁed opinion which is the highest level of opinion the City can receive and means the auditor believes the ﬁnancial statements are fairly presented in all material respects. Caroline Stutsman, Partner for the accounting ﬁrm, will make a presentation of the ﬁnancial report. ATTACHMENTS 2025 ACFR 2025 Internal Control Letter 2025 Communications Letter Annual Comprehensive Financial For the Fiscal Year Ended December 31, 2025 City of Eden Prairie, Minnesota 1 This page is intentionally left blank ANNUAL COMPREHENSIVE FINANCIAL REPORT of the CITY OF EDEN PRAIRIE MINNESOTA For The Fiscal Year Ended December 31, 2025 Rick Getschow, City Manager Prepared by THE FINANCE DIVISION Tammy Wilson, Chief Financial Officer 3 City of Eden Prairie, Minnesota For the Year Ended December 31, 2025 Page Letter of Transmittal................................................................................................................................................... 8 GFOA Certificate of Achievement ......................................................................................................................... 15 Organizational Chart ................................................................................................................................................. 16 List of Principal Officials .......................................................................................................................................... 17 .............................................................................................................................. 20 ............................................................................................................ 24 Statement of Net Position ............................................................................................................................ 38 Statement of Activities .................................................................................................................................. 40 Balance Sheet-Governmental Funds ........................................................................................................ 44 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .......................................................................................................... 45 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds .............................................................................................. 46 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................................. 47 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund ...................................................................... 49 Statement of Net Position – Proprietary Funds ................................................................................... 50 Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds ......... 51 Statement of Cash Flows – Proprietary Funds ..................................................................................... 52 Statement of Fiduciary Net Position ....................................................................................................... 54 Statement of Changes in Fiduciary Net Position ................................................................................. 55 ......................................................................................................................... 58 Modified Approach for Infrastructure Assets ....................................................................................... 102 Schedule of Changes in the City’s Total OBEB Liability and Related Ratios ............................. 103 Public Employees General Employees Retirement Fund ................................................................. 104 Public Employees Police and Fire Fund .................................................................................................. 105 Eden Prairie Fire Relief.................................................................................................................................. 106 Public Employees General Employees Retirement Fund ................................................................. 107 Public Employees Police and Fire Fund .................................................................................................. 108 Eden Prairie Fire Relief.................................................................................................................................. 109 4 City of Eden Prairie, Minnesota For the Year Ended December 31, 2025 Notes to Schedule of Changes in Net Pension Liabilities and Related Ratios ........................... 110 Combining Balance Sheet – Nonmajor Governmental Funds ......................................................... 126 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds ........................................................................... 134 Combining Statement of Net Position – Internal Service Funds .................................................... 144 Combining Statement of Revenues, Expenses and Changes in Net Position – Internal Service Funds .................................................................................................. 146 Combining Statement of Cash Flows – Internal Service Funds ...................................................... 148 Combining Statement of Fiduciary Net Position ................................................................................ 154 Combining Statement of Changes in Fiduciary Net Position .......................................................... 155 Government-wide Net Position by Category ......................................................................................... 159 Changes in Net Position - Total................................................................................................................... 160 Changes in Net Position – Governmental Activities ........................................................................... 161 Changes in Net Position – Business-type Activities ............................................................................ 162 Fund Balances – Governmental Funds .................................................................................................... 163 Changes in Fund Balances – Governmental Funds ............................................................................. 164 Assessed/Tax Capacity Value and Estimated Market Value of Property ................................... 165 Direct and Overlapping Property Tax Rates .......................................................................................... 166 Principal Property Taxpayers ..................................................................................................................... 167 Property Tax Levies and Collections ........................................................................................................ 168 Legal Debt Margin ............................................................................................................................................ 169 Ratios of Outstanding Debt by Type ......................................................................................................... 170 Ratios of General Bonded Debt Outstanding ......................................................................................... 171 Computation of Direct and Overlapping Bonded Debt ..................................................................... 172 Demographic and Economic Statistics .................................................................................................... 173 Principal Employers........................................................................................................................................ 174 Employees by Function ................................................................................................................................. 175 Operating Indicators ....................................................................................................................................... 176 Capital Assets Statistics by Function ........................................................................................................ 177 5 This page is intentionally left blank 6 INTRODUCTORY SECTION 7 April 27, 2026 To the Honorable Mayor, Members of the City Council and the Citizens of the City of Eden Prairie: The annual comprehensive financial report of the City of Eden Prairie, Minnesota, for the year ended December 31, 2025, is hereby submitted. The report was prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) as established by the Governmental Accounting Standards Board and meets the requirements of the State Auditor’s Office. The report consists of management’s representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all information presented within this report. To provide a reasonable basis for making these representations, management of the City has established internal controls designed to protect the City’s assets from loss, theft or misuse and to provide sufficient information for the preparation of these financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh the benefits, the City’s internal controls have been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatements. As management, we assert that to the best of our knowledge and belief this financial report is complete and reliable in all material respects. The City’s financial statements have been audited by BerganKDV, Ltd, Certified Public Accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the year ended December 31, 2025, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates used by management; and evaluating the overall financial statement presentation. Based upon the audit, the independent auditor concluded that there was reasonable basis for rendering an unmodified opinion that the City’s financial statements, for the year ended December 31, 2025, are fairly presented in conformity with GAAP. The independent auditors’ report is present in the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found in the financial section of this report immediately following the report of the independent auditors. 8 City Profile Eden Prairie is a suburban community of 64,800 people located in the southwest corner of Hennepin County in a setting of rolling hills and picturesque lakes and creeks. Eden Prairie has a convenient location, a comprehensive system of highways, and is a short distance from downtown Minneapolis and St. Paul and the Minneapolis-St. Paul International Airport. Incorporated in 1974 as a city, the City of Eden Prairie operates under a Statutory Plan B form of government. Policymaking and legislative authorities are vested in the governing council, which consists of a mayor and a four-member council. The governing council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees and hiring the government's manager and attorney. The council is elected on a nonpartisan basis. The mayor and council members are elected to four-year staggered terms. The City Manager is responsible for carrying out the policies and ordinances of the governing council, for overseeing the day-to-day operations of the government, and to assign appropriate responsibility and authority to City staff for the efficient and effective delivery of City services. With a staff of around 294 regular, full-time equivalent employees, the City provides its residents and businesses with a full range of municipal services consisting of police and fire protection, street maintenance, recreation programs, park maintenance, community and economic development, building inspections, and water, wastewater and storm water services. The City is also financially accountable for the Housing and Redevelopment Authority (HRA), which is included in the City’s financial statements as a blended component unit. Additional information on the HRA is located in Note 1 in the notes to the financial statements. The biennial budget serves as the foundation for the City’s financial planning and control. Departments submit budget requests to Finance in May and the City Manager presents the proposed budget to the City Council for review prior to September 30th of each year. A budget workshop is usually held with the City Council in June or July. The City Council holds a public meeting on the proposed budget and adopts the final budget in December each year. The City does not budget for governmental funds other than the General fund. During the first year of the two-year budget process, both years’ budgets are developed and the City Council adopts the first year’s budget. During the second year of the two-year budget process, budget work is minimized. Staff updates the budget for any significant budget developments and the council then reviews and adopts the second year budget. The budget is prepared by department and division. The City’s directors and division managers may make transfers of appropriations within a division. Transfers of appropriations between departments require the approval of the City Manager. Any changes in the total budget must be approved by the City Council. 9 Economic Conditions and Outlook Eden Prairie is a suburban community located in the southwest corner of the Minneapolis/St. Paul Metropolitan area. With the last update of the comprehensive plan and the trend towards condensed multi-family housing along the LRT corridor and other multi-family projects in other locations within the City, it is expected that Eden Prairie’s population will grow to 82,400 by 2040 an increase of 27% from 2025. Below summarizes the City’s market value since 2017. The City’s tax base increased from $14.4 billion to $14.5 billion from 2024 to 2025. In 2026, the market value increased slightly to $14.7 billion. The real estate market has leveled off. For 2025, the market value for the median value home increased by 1.4%, commercial decreased by 1.2% and apartments decreased by 2.9%. Eden Prairie’s unemployment rate is 3.2%, which is less than the State rate of 4.1% and the Federal rate of 4.6%. We had another strong year in licenses and permits, and Inspections issued permits with a value of $213,848,293. The City had 4 new commercial/industrial buildings, 47 new single family/townhome and 1 apartment complex. The valuations of the new commercial buildings ranged from $1.3M to $6M and the apartment complex had a value of $30.7M. Eden Prairie serves as the corporate headquarters location for many national and international businesses including CH Robinson World Wide, Tennant Company, Optum, Winnebago Industries Inc, Starkey Hearing, MTS Corporation, Arctic Wolf, and hundreds of other small and mid-size companies headquartered in multi-tenant office buildings located throughout the City. 10 Eden Prairie also has key locations for retailing including the City’s mall which has approximately 1.5 million square feet of shopping. The mall is part of the City’s “Major Center Area” or downtown. Stores include a 160,000 square foot Von Maur Department Store, Scheels, a Barnes and Noble Bookstore, an 18-screen AMC Movie Theater, and numerous restaurants. Due to its strong and healthy local economy, Moody’s Investors Service has assigned a rating of Aaa to the City of Eden Prairie’s (MN) bond for every debt issue since 2003, the highest rating from Moody’s. Standard & Poor’s has also assigned a rating of AAA to the City of Eden Prairie’s bonds outstanding, their highest rating as well. This ensures the City receives the most competitive interest rates. The City’s bond ratings reflect Eden Prairie’s large, growing Twin Cities suburb, strong management, robust financial position and modest leverage. Long-term Financial Planning The City has implemented various financial policies to guide the Council and staff when making financial decisions. This helps to ensure the long-term stability and flexibility of City finances and operations. These policies include the following: • The original budget should be balanced with revenues equal to expenditures, • One-time revenues will be used for one-time expenditures, • The City will maintain fund balance for working capital in the general fund at 50% of the next year’s budgeted tax revenue, • The City will also maintain 10% of the next year’s budget in fund balance for budget stabilization and 5% of the next year’s budget for budget balancing in the general fund, • The City will confine long-term debt to capital improvements or projects that cannot be financed from current revenues, and • The City will maintain a ten-year capital improvement plan to provide for capital asset acquisition, maintenance, replacement, and retirement. The City has consistently followed our financial policies. Major Initiatives Police Remodel The Police Department has outgrown its current space and needs a facility that will be adaptable to accommodate the department’s growth and operational changes for the next 20 years. Two tenants of City Hall decided to not renew their leases and this left an opportunity for the City to expand the Police department in their vacant spot. The new space will; maintain or enhance the level of service that the police department provides to the community; be a leading example of the City's sustainable approaches; create a facility where the community feels welcome and encourages interaction with the public; better 11 organize and enhance safety and security within detention and evidence intake/ processing/storage; enclose vehicle storage for entire fleet, including training vehicles; and allow for better wayfinding throughout the building, to enhance a more welcoming public environment. Construction started in April 2025 with an anticipated move in date of August 2026. The project costs of $26.5M will be funded by the G.O. Capital Improvement Bonds that were issued on February 18, 2025. Water Treatment Plant Geothermal Project The City is preparing for the construction of a $3M geothermal energy project in early 2026. The water treatment plant has several large and conventional gas and electric heating, cooling, and dehumidification systems which have reached the end of their useful life. Capital costs for new gas and electric heating and cooling systems are generally more affordable options compared to geothermal systems, but fortunately the City will be receiving a $1M federal tax credit making geothermal the better capital cost alternative. Furthermore, gas and electric heating and cooling systems generate high volumes of greenhouse gas emissions when operated. Geothermal systems do not which will aid the City in meeting its greenhouse gas emission reduction goals. The City is able to deploy this unique geothermal system design due to the fact it will be using the water already being pumped from the aquifer to the plant for treatment as the energy source for the heating and cooling system. This results in the water having a secondary beneficial use before being distributed to customers. Fire Vehicles In 2025, five new fire vehicles were added to the City’s fleet. A sixth vehicle will be added later in 2026. The purchase includes three (3) new Pierce engines that will replace 18-20 year old apparatus and will provide operational enhancements for service delivery, and two (2) new Skeeter engines that will replace a 12 year old engine and allow for operational effectiveness at multiple locations in the City including the Flying Cloud Airport and urban/wildland interface locations. These new apparatus will provide more versatility to the Fire Department’s response capability. The vehicles were purchased with public safety state aid dollars and the Capital Improvement Funds. Roers Apartments The Roers Eden Prairie Apartments, located at 6436 City West Parkway, were approved in 2025. The project will include demolishing an old 5-story office building and replacing it with a 6-story, 195 unit apartment building with underground and surface parking. The mixed-income apartment project meets the criteria for a new Housing TIF District. The 12 project proposes to include 20% of the units (39 units) affordable to residents earning at or below 50% of the Area Median Income (AMI). An additional 5% of the units (10 units) will be inclusionary housing units as required by City Code and will be affordable to residents earning at or below 80% of AMI. The remaining 146 units will be market rate. Certificate of Achievement The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Eden Prairie for its Annual Comprehensive Financial Report for the fiscal year ended December 31, 2024. The Certificate of Achievement is a prestigious national award-recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized annual comprehensive financial report whose contents conform to program standards. Such annual comprehensive financial report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year. The City of Eden Prairie has received a Certificate of Achievement every year since 1990. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA. In addition, the Government Finance Officers Association of the United States and Canada (GFOA) presented the Distinguished Budget Presentation award to the City of Eden Prairie for its Two Year Budget for the fiscal years beginning January 1, 2024 and 2025. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan and a communications device. The award is valid for a period of two years only. The City of Eden Prairie has received a Distinguished Budget Presentation award for every budget since 1998. Also, the Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to the City of Eden Prairie for its Popular Annual Financial Report for the fiscal year ended December 31, 2024. The Award for Outstanding Achievement in Popular Annual Financial Reporting is a national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creativity, presentation, understandability, and reader appeal. An Award for Outstanding Achievement in Popular Annual Financial Reporting is valid for a period of one year only. The City of Eden Prairie has received the award annually since 1998. We believe our current report continues to conform to the Popular Annual Financial Reporting requirements, and we are submitting it to GFOA. 13 Acknowledgements We would like to thank the Mayor and Council Members for their continued support in planning and conducting the financial operations of the City in a responsible and progressive manner. We would also like to express our appreciation to the employees of the Finance Division for their contribution to the preparation of this report. Respectfully submitted, Rick Getschow Tammy Wilson City Manager Chief Financial Officer 14 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Eden Prairie Minnesota For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2024 Executive Director/CEO 15 City of Eden Prairie, Minnesota For the Year Ended December 31, 2025 City Council City Manager Administration Administrative Services City Clerk Facilities Human Resources & Support Services Information Technology Communications Finance & Liquor Operations Community Development Assessing Economic Development Housing & Community Services Planning Public Works Engineering Fleet Services Streets Maintenance Utilities Police Investigations Patrol Support Fire Building Inspections Fire Prevention Fire Suppresion Parks & Recreation Community Center Parks & Natural Resources Recreation Services 16 City of Eden Prairie, Minnesota For the Year Ended December 31, 2025 Mayor (Term expiration 12/31/26) Ron Case Council Member (Term expiration 12/31/26) Mark Freiberg Council Member (Term Expiration 12/31/28) PG Narayanan Council Member (Term expiration 12/31/26) Kathy Nelson Council Member (Term expiration 12/31/28) Lisa Toomey City Manager Rick Getschow City Attorney Maggie Neuville Chief of Police Matt Sackett Community Development Director Julie Klima Fire Chief Scott Gerber Parks and Recreation Director Amy Markle Public Works Director Robert Ellis 17 This page is intentionally left blank 18 FINANCIAL SECTION 19 Independent Auditor's Report Honorable Mayor and Members of the City Council City of Eden Prairie Eden Prairie, Minnesota Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Eden Prairie, Minnesota, as of and for the year ended December 31, 2025, and the related notes to the basic financial statements, which collectively comprise City's basic financial statements as listed in the Table of Contents. In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Eden Prairie, Minnesota, as of December 31, 2025, and the respective changes in financial position and, where applicable, cash flows thereof, and the budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Eden Prairie and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Report on Summarized Comparative Information We have previously audited the City's 2024 financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information, and we expressed unmodified opinions on those financial statements in our report dated April 24, 2025. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2024, is consistent, in all material respects, with the audited financial statements from which it has been derived. Responsibilities of Management for the Financial Statements The City of Eden Prairie's management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 20 Responsibilities of Management for the Financial Statements (Continued) In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Eden Prairie's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit. 21 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 auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Eden Prairie's basic financial statements. The accompanying supplementary information identified in the Table of Contents is presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the accompanying supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the Annual Comprehensive Financial Report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 22 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April 27, 2026, on our consideration of the City of Eden Prairie's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Eden Prairie's internal control over financial reporting and compliance. St. Cloud, Minnesota April 27, 2026 23 City of Eden Prairie, Minnesota Management’s Discussion and Analysis As management of the City of Eden Prairie, this section of the City’s annual comprehensive financial report presents a discussion and analysis of the City’s financial activities during the fiscal year ended December 31, 2025. This discussion and analysis should be read in conjunction with the transmittal letter in the introductory section of this report. Financial Highlights The City as a Whole • The assets and deferred outflow of resources of the City exceeded liabilities and deferred inflow of resources by $478,131,769. Of this amount, $132,520,735 (unrestricted net position) may be used to meet the City’s ongoing obligations to citizens and creditors, $328,426,070 is invested in capital assets, and $17,184,964 is restricted. • The City’s total net position increased by $19,201,260 or 4.2%. Key factors in this increase were positive General Fund results due to increased property tax, intergovernmental, and charges for services revenue, and bond proceeds from the police remodel. The City was able to transfer positive General Fund results to the Capital Improvement and Maintenance Fund as one-time revenue to support the Capital Improvement Plan. • The City’s total long-term liabilities increased by $22,582,021 or 45.26% in comparison with the prior year. Contributing to the overall increase, was an increase in bonds payable of $25M due to the issuance of the G.O. Capital Improvement Bonds of 2025 offset by a decrease in net pension of $2M. Using This Annual Report This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities provide information about the activities of the City as a whole and present a longer-term view of the City’s finances. For governmental activities, the fund financial statements tell how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the City’s operations in more detail than the government-wide statements by providing information about the City’s most significant funds. The remaining statements provide financial information about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the government. Reporting the City as a Whole The Statement of Net Position and the Statement of Activities One of the most important questions asked about the City’s finances is “Is the City as a whole better off or worse off as a result of the year’s activities?” The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities in a way that helps answer this question. These statements include all assets, deferred outflows of resources, liabilities and deferred inflows of resources using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid. 24 City of Eden Prairie, Minnesota Management’s Discussion and Analysis These two statements report the City’s net position and changes in them. You can think of the City’s net position – the difference between assets, deferred outflows of resources, liabilities, and deferred inflows of resources – as one way to measure the City’s financial health, or financial position. Over time, increases or decreases in the City’s net position is one indicator of whether its financial health is improving or deteriorating. You will need to consider other nonfinancial factors, however, such as changes in the City’s property tax base and the condition of the City’s roads, to assess the overall health of the City. In the Statement of Net Position and the Statement of Activities, we divide the City into two kinds of activities: • Governmental Activities – Most of the City’s basic services are reported here, including general government, public safety, public works, and parks and recreation. Property taxes, charges for services, and capital grants and contributions finance most of these activities. • Business-type Activities – The City charges a fee to customers to help it cover all or most of the cost of certain services it provides. The City’s utility system (Water, Wastewater and Stormwater Funds) and liquor operations are reported here. Reporting the City’s Most Significant Funds Fund Financial Statements The fund financial statements provide detailed information about the most significant funds – not the City as a whole. Some funds are required to be established by State law and by bond covenants. However, the City Council establishes many other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain grants and other money. The City’s two kinds of funds – governmental and proprietary – use different accounting approaches. • Governmental funds – Most of the City’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps to determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. We describe the relationship between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds in a reconciliation provided after the fund financial statements. • Proprietary funds – When the City charges customers for the services it provides – these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. 25 City of Eden Prairie, Minnesota Management’s Discussion and Analysis The City of Eden Prairie maintains two different types of proprietary funds. • Enterprise funds are the same as the business-type activities reported in the government-wide statements but provide more detail and additional information, such as cash flows. • Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for activities pertaining to employee benefits, workers compensation, personal time off accruals, property insurance, facilities, fleet services, and information technology. The City as Trustee Reporting the City’s Fiduciary Responsibilities All of the City’s fiduciary activities are reported in a separate Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position. The City is fiduciary for resources collected and owed to others including developers and governmental agencies. We exclude these activities from the City’s other financial statements because the City cannot use these assets to finance operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. The accounting used for fiduciary funds is much like that used for proprietary funds. The City as a Whole The City’s combined net position increased from $458,930,509 to $478,131,769 and maintained its financial position. A large part of this increase was due to positive performance in the General and Liquor funds and unspent proceeds from the $25M issuance of debt. The General Fund had positive performance in licenses and permits, property tax revenue, and charges for services, which allowed the General Fund to transfer $4,393,985 to the Capital Improvement Maintenance Fund. Positive performance in the Liquor funds resulted in a transfer of $800,000 to the Capital Improvement Maintenance Fund. The City also saw a decrease of ($4.6.M) in their pension costs. Also, in February 2025, the City issued $25M of G.O. Capital Improvement Bonds for a police remodel. By far the largest portion of the City of Eden Prairie’s net position, $328,426,070 (approximately 69%) reflects its investment in capital assets (e.g. land, buildings, machinery, and equipment) less any related debt used to acquire those assets that is still outstanding. The City of Eden Prairie uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City’s net position, $17,184,964 (approximately 4%), represents resources that are subject to external restrictions on how they may be used. The remaining 26 City of Eden Prairie, Minnesota Management’s Discussion and Analysis balance of unrestricted net position, $132,520,735 (approximately 27%), may be used to meet the City’s ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City is able to report positive balances in all of the categories of net position reported for the government as a whole. The following schedule provides a summary of the City’s net position as of December 31, 2025 (in thousands): Key elements of these changes are shown on the following page. 2025 2024 2025 2024 2025 2024 Current and Other Assets 151,281$ 126,772$ 53,376$ 49,613$ 204,657$ 176,385$ Capital Assets 258,596 238,789 110,306 113,273 368,902 352,062 Total Assets 409,877 365,561 163,682 162,886 573,559 528,447 Deferred Outflows 14,591 19,366 507 477 15,098 19,843 Total Assets and Deferred Outflows 424,468 384,927 164,189 163,363 588,657 548,290 Long-Term Liabilities Outstanding 59,847 36,215 12,627 13,676 72,474 49,891 Other Liabilities 8,900 8,487 1,244 1,326 10,144 9,813 Total Liabilities 68,747 44,702 13,871 15,002 82,618 59,704 Deferred Inflows 26,151 27,600 1,756 2,055 27,907 29,655 Total Liabilities and Deferred Inflows 94,898 72,302 15,627 17,057 110,525 89,359 Invested in Capital Assets 227,744 223,452 100,682 102,800 328,426 326,252 Restricted 17,185 17,244 - - 17,185 17,244 Unrestricted 84,641 71,929 47,880 43,506 132,521 115,435 Total Net Position 329,570$ 312,625$ 148,562$ 146,306$ 478,132$ 458,931$ Governmental Activities Business-Type activities Total 27 City of Eden Prairie, Minnesota Management’s Discussion and Analysis 2025 2024 2025 2024 2025 2024Revenues: Program Revenues Charges for Services 13,741$ 13,266$ 35,141$ 33,759$ 48,882$ 47,025$ Operating Grants and Contributions 3,907 3,955 245 44 4,152 3,999 Capital Grants and Contributions 11,933 10,507 1,880 1,655 13,813 12,162 General Revenues Property Taxes 49,505 46,916 - - 49,505 46,916 Tax Increment 3,994 3,448 - - 3,994 3,448 Gain on sale of Capital Assets 641 462 - - 641 462 Grants and Contributions 683 608 - 34 683 642 Investment Income 5,506 4,012 2,146 1,773 7,652 5,785 Total Revenues 89,910 83,174 39,412 37,265 129,322 120,439 Expenses: Administration 6,392 5,490 - - 6,392 5,490 Community Development 6,857 6,525 - - 6,857 6,525 Police 20,773 20,357 - - 20,773 20,357 Fire 7,091 7,022 - - 7,091 7,022 Public Works 14,312 17,135 - - 14,312 17,135 Parks and Recreation 18,723 18,905 - - 18,723 18,905 Interest on Long Term Debt 1,374 295 - - 1,374 295 Water - - 12,401 11,973 12,401 11,973 Wastewater - - 8,408 8,385 8,408 8,385 Stormwater - - 2,831 3,278 2,831 3,278 Liquor - - 10,959 11,050 10,959 11,050 Total Expenses 75,522 75,729 34,599 34,686 110,121 110,415 Changes in Net Position Before Transfers 14,388 7,445 4,813 2,579 19,201 10,024 Internal Transfers 2,557 1,113 (2,557) (1,113) - - Change in Net Position 16,945 8,558 2,256 1,466 19,201 10,024 Net Position - Beginning 312,625 304,067 146,306 144,527 458,931 448,594 Correction of an Error as Restated - - - 313 - 313 Net Position - Beginning Restated 312,625 304,067 146,306 144,840 458,931 448,907 Net Position, December 31 329,570$ 312,625$ 148,562$ 146,306$ 478,132$ 458,931$ Business-Type activities TotalGovernmental Activities 28 City of Eden Prairie, Minnesota Management’s Discussion and Analysis Governmental Activities Revenue by Source • For the year, property taxes totaled $47,135,756 which is an increase of $219,626 or 0.5% from 2024. For 2025, the City budgeted for a 5.4% increase in property taxes. • Charges for services increased by $474,871 or 3.6% from 2024 due mainly to increased permit fee revenue from companies installing fiber optics throughout the City and increased Police supplemental employment reimbursement. • Operating grants and contributions decreased from 2024 by ($47,832) due primarily to a decrease in federal Toward Zero Death grant funding in 2025 of ($45,484). • Capital grants and contributions increased in 2025 by $1,426,397 due primarily to an increase in Park & Recreation park fees and Municipal State Aid. • Expenses for Police and Fire increased by $416,738 and $68,450 over 2024 due primarily to increases in wages and benefits and user charges. • Expenses for Park and Recreation decreased by ($182,201) due to decreased capital projects. 29 City of Eden Prairie, Minnesota Management’s Discussion and Analysis Expenses by Program 30 City of Eden Prairie, Minnesota Management’s Discussion and Analysis Business-type Activities For the business-type activities, charges for services accounts for 89.2% of revenues. The Water fund, Wastewater fund and Stormwater fund had a change to net position of $582,077, ($12,653), and $1,599,089. The Water fund’s increase in net position is mainly due to a rate increase and an increase in consumption in 2025 over 2024 due to lower cumulative precipitation in 2025. The Wastewater fund’s decreased net position is due to an increase in rates offset by an increase in the Metropolitan Council Environmental Services fee. The Stormwater fund’s increased net position is due to a rate increase and fewer projects in 2025. The Liquor operations had a positive change in net position of $290,955. This was after the $800,000 that was transferred to the Capital Improvement Fund. 31 City of Eden Prairie, Minnesota Management’s Discussion and Analysis The City’s Funds The General Fund is the chief operating fund of the City of Eden Prairie. Fund balance increased by $873,630. The City was able to maintain balances in accordance with its fund balance policy. Non-spendable Balances The balances classified as non-spendable consist of balances that are not in spendable form, such as prepaid assets. Restricted Balances The balances classified as restricted consist of balances related to externally imposed constraints established by creditors, grantors/contributors, or state statutory provisions. Unassigned Balances The unassigned fund balance consists of the residual classification for the general fund. The City maintained an unassigned fund balance in accordance with the City’s fund balance policy. Other Major Funds The Public Improvement Construction fund balance increased by $551,007 in 2025. Revenue of $1,462,241 was collected which consisted of special assessments, intergovernmental revenue and investment income. $266,906 other revenue pertains to Pioneer Trail Reconstruction reimbursement. Construction costs include the West 70th St. East Segment project and the Shady Oak to Flying Cloud Drive project. There were also transfers in of $760,000 for the West 70th St. East Segment project and $420,000 for the Shady Oak/Flying Cloud Drive project. The Capital Improvement Maintenance fund balance increased by $14,411,845 in 2025 due mainly to the issuance of $25M in G.O. Capital Improvement Bonds. As of 12/31/25, the City has $11.6M of unspent bond proceeds. Revenue of $3,461,705 was collected which consisted mainly of general property taxes, building rental income, intergovernmental revenue and investment income. Expenditures for the year include trail maintenance, Richard T. Anderson conservation area, Round Lake parking lot, Starring Lake amphitheater expansion, and the Police remodel. Transfers 2025 2024 Difference Fund Balance: Nonspendable $ 158,058 $ 105,900 $ 52,158 Restricted - - - Unassigned 34,538,075 33,716,603 821,472 Total Fund Balance $ 34,696,133 $ 33,822,503 $ 873,630 32 City of Eden Prairie, Minnesota Management’s Discussion and Analysis in were $5,487,331 which consisted of $293,346 from closed funds, $800,000 from the Liquor funds and $4,393,985 from the General fund due to positive operating results. $250,000 was transferred out for the Capital Improvement Maintenance’s Fund share of Shady Oak Road project and for trail maintenance. The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Water fund sales through December 31, 2025 totaled $10,760,907, which is an increase of $904,548 or 9.2% from 2024. Water usage increased from 2.04 billion gallons to 2.23 billion gallons. The change in sales can be attributed to a increase in consumption and gallons pumped due to lower average precipitation in 2025 than 2024. Wastewater fund sales through December 31, 2025 totaled $8,406,623, which is an increase of $454,220 or 5.7% from 2024. Sewer usage increased from 1.34 billion gallons to 1.38 billion gallons. The change in sales can be attributed to an increase in rates and an increase in consumption. Stormwater fund sales through December 31, 2025 totaled $4,173,220 which is an increase of $190,196 or 4.8% from 2024. The sales increase is due to an increase in rates and adjustments to property storm classifications. Liquor sales totaled $11,495,229 which is a decrease of ($472,057) or (3.9%) over 2024. The operation continues to provide value to customers and maintain customer loyalty and was able to transfer profits of $800,000 to the Capital Improvement Maintenance Fund. Budgetary Highlights The net change in fund balance to the General fund was $873,630. Revenues of $63,688,003 were recorded which is $4,731,184 more than budgeted. Property Tax revenue, Licenses and Permits and Intergovernmental revenue performed better than expected. Charges for services performed better than budget due to the increase in community center memberships and youth programs after the effects of COVID in the past couple years. Investment Income also performed better than budget due to the higher interest rates than in previous years. Total expenditures equaled $58,891,117 or 98.2% of the budget. All departments spent less than 100% of the amounts budgeted except Police and Parks & Recreation. Police was over budget due mainly to overtime from open positions and from extra events which occurred within the City. The Police overage was .06% of total expenditures. Parks & Recreation overage was .01% of total expenditures. Due to the positive General Fund performance, $4,393,985 was transferred to the Capital Improvement and Maintenance Fund. 33 City of Eden Prairie, Minnesota Management’s Discussion and Analysis Capital Assets and Debt Administration Capital Assets At the end of 2025, the City had $369 million invested in capital assets. Major capital assets added during the current fiscal year by fund include the following. Capital Assets (net of depreciation/amortization, in thousands) The City has chosen to maintain infrastructure using the modified approach. This means the City does not depreciate the cost of infrastructure but maintains the system at a “very good condition” level or higher. Additional information on the modified approach can be found in Note 1 of this report and additional information on the City’s capital assets can be found in Note 4 of this report. The City’s policy is to maintain an average citywide pavement condition index rating of very good or better (greater than 70) for all streets and trails and to have 90% of streets categorized as fair or better (greater than 40). In the summer of 2025, the City conducted a physical condition assessment. This assessment will be performed every three years. As of December 31, 2025, the City’s infrastructure system was rated at a Pavement Condition Index (PCI) of 81.1%, which is 2025 Fund Project Name Additions Capital Improvement City Center Police Remodel 13,569,895$ Fleet Internal Service Vehicle and Equipment Replacements 4,076,593 Capital Improvement Fire Engine Replacements 3,980,000 Water Capital Water Meter Replacements 1,878,312 Park Improvement Miller Park Courts 576,743 Wastewater Capital Washington Ave Sanitary Lining 385,634 Total 24,467,177$ 2025 2024 2025 2024 2025 2024 Land & Land Improv.34,669$ 33,190$ 1,425$ 1,449$ 36,094$ 34,639$ Infrastructure 146,180 144,792 - - 146,180 144,792 Work in Progress 14,852 3,946 296 - 15,148 3,946 Distribution System - - 80,493 83,845 80,493 83,845 Buildings 40,750 44,176 16,140 17,266 56,890 61,442 Lease Asset - Building - - 695 890 695 890 Lease Asset - Equipment 377 49 - - 377 49 Subscription Assets 1,808 728 - - 1,808 728 Machinery & Equipment 2,574 2,099 10,130 8,814 12,704 10,913 Autos 12,716 5,564 144 177 12,860 5,741 Other Assets 4,670 4,245 983 832 5,653 5,077 Total 258,596$ 238,789$ 110,306$ 113,273$ 368,902$ 352,062$ Governmental Activities Business-type Activities Total 34 City of Eden Prairie, Minnesota Management’s Discussion and Analysis higher than the City’s policy level. In addition, 99% of roads were categorized as fair or better. The City’s infrastructure is constantly deteriorating resulting from the following factors: (1) traffic using the system; (2) the sun’s ultra-violet rays drying out and breaking down the top layer of pavement; (3) utility company/private development trenching operations; (4) water damage from natural precipitation; and (5) frost heave. The City is continuously taking actions to prolong the life of the system through short-term maintenance activities such as pothole patching, crack sealing, seal coating, and overlaying. The City expended $5,323,011 on infrastructure maintenance for the year ending December 31, 2025. These expenditures delayed deterioration; and, the overall condition of the system was improved through these maintenance expenditures. The City has estimated that the amount of annual expenditures required to maintain the City’s infrastructure at the average PCI rating of very good is approximately $5,000,000. Debt At year-end, the City had approximately $72 million in bonds and other long-term liabilities outstanding compared to $50 million last year. Long term liabilities increased due to a increase in the Net Pension, Other Post Employment Benefits liability and issuance of $25M in G.O. Capital Improvement Bonds. Refer to Note 10 – Long Term Debt. Economic Factors and Next Year’s Budget The City’s elected officials consider many factors when adopting the budget and determining fees for service and fees that will be charged for the business-type activities. These factors include service levels, the tax impact on the median value home, commercial/industrial and household growth, and inflation. Currently, the 2026 General fund budgeted appropriations are $63,951,818 which is an increase of $3,974,270 or 6.6% from the 2025 budget. Revenues for 2026 are $63,951,818 which results in a balanced budget. The City budgets conservatively and anticipates using positive revenue results to cover any shortfalls. Contacting the City’s Financial Management This financial report is designed to provide a general overview of the City’s finances for those interested in the government’s finances. If you have questions about this report or need additional financial information, contact the Finance Division at City of Eden Prairie, 8080 Mitchell Road, Eden Prairie, MN 55344. 35 This page is intentionally left blank 36 GOVERNMENT -WIDE STATEMENTS 37 City of Eden Prairie, Minnesota Statement of Net Position December 31, 2025 Governmental Business-type Activities Activities Total ASSETS Cash and Investments $124,608,916 $45,592,685 $170,201,601 ReceivablesAccounts (net of allow for uncollectible)3,983,385 3,868,776 7,852,161 Investment Interest 487,167 192,104 679,271 Lease Receivable Interest 80,768 1,172 81,940 Due From Other Governments 6,861,204 66,064 6,927,268 Unremitted Taxes 160,347 - 160,347 Delinquent Taxes 432,645 - 432,645 Unremitted Special Assessments 5,012 9,778 14,790 Delinquent Special Assessments 81,124 447,010 528,134 Special Assessments 847,376 663,570 1,510,946 Unavailable Special Assessments 1,245,771 426,180 1,671,951 Inventory 168,774 1,111,866 1,280,640 Net Pension Asset 3,609,847 - 3,609,847 Prepaid Items 944,551 580,707 1,525,258 Lease Receivable Due Within One Year 365,022 121,624 486,646 Due in More Than One Year 6,592,155 294,812 6,886,967 Land Held for Resale 808,000 - 808,000 Capital Assets Nondepreciable/Nonamortizable Land 22,340,488 1,057,955 23,398,443 Infrastructure 146,179,703 - 146,179,703 Work in Progress 14,852,117 296,327 15,148,444 Depreciable/Amortizable Buildings, Property and Equipment, Net 75,223,571 108,951,601 184,175,172 Total Assets 409,877,943 163,682,231 573,560,174 DEFERRED OUTFLOWS OF RESOURCES Refunding of Debt 196,717 - 196,717 Other Post Employment Benefits 664,775 53,038 717,813 Pensions 13,729,157 453,692 14,182,849 Total Deferred Outflows of Resources 14,590,649 506,730 15,097,379 Total Assets and Deferred Outflows of Resources 424,468,592 164,188,961 588,657,553 The notes to the financial statements are an integral part of this statement 38 City of Eden Prairie, Minnesota Statement of Net Position December 31, 2025 Governmental Business-type Activities Activities TotalLIABILITIES Accounts and Contracts Payable 4,836,783 659,034 5,495,817 Claims Payable 7,177 - 7,177 Salaries Payable 1,505,941 281,508 1,787,449 Investment Interest Payable 404 - 404 Bond Interest Payable 1,066,965 66,625 1,133,590 IT Subscriptions Interest Payable 37,078 - 37,078 Lease Interest Payable 12,824 2,119 14,943 Due to Other Governments 356,430 225,169 581,599 Unearned Revenue 1,076,825 9,932 1,086,757 Total Other Post Employment Benefits Liability Due Within One Year 72,736 3,968 76,704 Due in More Than One Year 2,455,238 207,517 2,662,755 Net Pension Due in More Than One Year 14,210,111 1,964,042 16,174,153 IT Subscriptions Liabilities Due Within One Year 538,113 - 538,113 Due in More Than One Year 1,214,062 - 1,214,062 Lease Liability Payable Due Within One Year 110,304 205,863 316,167 Due in More Than One Year 287,313 576,399 863,712 Bonds Payable Due Within One Year 860,000 710,000 1,570,000 Due in More Than One Year 37,033,086 8,434,561 45,467,647 Finance Purchases From Direct Borrowing Due Within One Year 77,950 - 77,950 Due in More Than One Year 79,761 - 79,761 Compensated Absences Due Within One Year 1,372,878 247,724 1,620,602 Due in More Than One Year 1,535,248 277,021 1,812,269 Total Liabilities 68,747,227 13,871,482 82,618,709 DEFERRED INFLOWS OF RESOURCES Other Post Employment Benefits 944,600 63,169 1,007,769 Pensions 18,501,214 1,309,344 19,810,558 Deferred Inflows of Resources Related to Lease Receivable 6,705,518 383,230 7,088,748 Total Deferred Inflows of Resources 26,151,332 1,755,743 27,907,075 Total Liabilities and Deferred Inflows 94,898,559 15,627,225 110,525,784 NET POSITION Net Investment in Capital Assets 227,744,512 100,681,558 328,426,070 Restricted for Perpetual Care, Nonexpendable 221,529 - 221,529 Restricted for Perpetual Care, Expendable 54,343 - 54,343 Restricted for Debt Service 2,509,706 - 2,509,706 Restricted for Tax Increment 4,673,533 - 4,673,533 Restricted for Affordable Housing 726,428 - 726,428 Restricted for Fire Relief 3,609,847 - 3,609,847 Restricted for Police 507,652 - 507,652 Restricted for Public Works 1,387,956 - 1,387,956 Restricted for Parks and Recreation 3,477,880 - 3,477,880 Restricted for Historical and Cultural 16,090 - 16,090 Unrestricted 84,640,557 47,880,178 132,520,735 The notes to the financial statements are an integral part of this statement 39 City of Eden Prairie, Minnesota Statement of Activities For the Year Ended December 31, 2025 Program Revenue Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions FUNCTIONS/PROGRAMS Primary Government Governmental Activities Administration $6,392,446 $860,033 $134,335 $- Community Development 6,856,726 73,301 910,575 - 20,773,279 1,570,331 1,489,577 176,128 Fire 7,090,734 3,925,701 908,409 922 Public Works 14,311,749 927,905 68,911 10,053,799 Parks and Recreation 18,722,657 6,383,559 395,117 1,702,211 Interest on Long Term Debt 1,374,236 - - - Total Governmental Activities 75,521,827 13,740,830 3,906,924 11,933,060 Business-Type Activities 12,401,274 10,760,907 73,185 1,451,610 Wastewater 8,407,648 8,406,623 95,468 376,574 Stormwater 2,831,069 4,173,220 40,208 2,105 Liquor 10,959,248 11,800,206 35,695 49,993 Total Business-Type Activities 34,599,239 35,140,956 244,556 1,880,282 Total Primary Government $110,121,066 $48,881,786 $4,151,480 $13,813,342 General Revenues Taxes Property Taxes, Levied for General Purposes Property Taxes, Levied for Debt Service Tax Increment Gain on Sale of Capital Asset Grants and Contributions Not Restricted to Specific Programs Investment Income Transfers Total General Revenues and Transfers Change in Net Position Net Position - Beginning Net Position - Ending The notes to the financial statements are an integral part of this statement 40 Net (Expense) Revenue and Changes in Net Position Governmental Business-type Activities Activities Total $(5,398,078) $- $(5,398,078) (5,872,850) - (5,872,850) (17,537,243) - (17,537,243) (2,255,702) - (2,255,702) (3,261,134) - (3,261,134) (10,241,770) - (10,241,770) (1,374,236) - (1,374,236) (45,941,013) - (45,941,013) - (115,572) (115,572) - 471,017 471,017 - 1,384,464 1,384,464 - 926,646 926,646 - 2,666,555 2,666,555 (45,941,013) 2,666,555 (43,274,458) 47,135,756 - 47,135,756 2,369,332 - 2,369,332 3,993,501 - 3,993,501 641,041 - 641,041 683,259 - 683,259 5,506,473 2,146,356 7,652,829 2,556,514 (2,556,514) - 62,885,876 (410,158) 62,475,718 16,944,863 2,256,397 19,201,260 312,625,170 146,305,339 458,930,509 329,570,033 148,561,736 478,131,769 The notes to the financial statements are an integral part of this statement 41 This page is intentionally left blank 42 FUND FINANCIAL STATEMENTS 43 City of Eden Prairie, Minnesota Balance SheetGovernmental FundsDecember 31, 2025 Public Capital Other TotalImprovementImprovementGovernmentalGovernmental General Construction Maintenance Funds Funds ASSETS Cash and Investments $37,057,113 $283,980 $46,262,208 $26,609,506 $110,212,807 ReceivablesAccounts 663,636 - 14,304 1,461,297 2,139,237 Lease Receivable - - 274,136 90,031 364,167 Investment Interest 127,245 4,967 186,094 109,793 428,099 Lease Receivable Interest - - 78,829 1,467 80,296 Due From Other Governments 246,648 - 5,888,738 97,311 6,232,697 Unremitted Taxes 150,000 - 5,136 5,211 160,347 Delinquent Taxes 429,008 - 3,637 - 432,645 Unremitted Special Assessments - 833 - 4,179 5,012 Delinquent Special Assessments - - 247 80,877 81,124 Unavailable Special Assessments 28,822 28,880 109,590 680,084 847,376 Special Unavailable Special Assessments - 139,187 51,888 1,054,696 1,245,771 Due From Other Funds - - - 150,000 150,000 Prepaid Items 158,058 - - 32,466 190,524 Lease Receivable - - 6,460,240 102,348 6,562,588 Notes Receivable (net of allow for uncollectible)- - - 1,774,194 1,774,194 Total Assets $38,860,530 $457,847 $59,335,047 $33,061,460 $131,714,884 LIABILITIES Accounts and Contracts Payable $1,465,427 $76,420 $1,857,942 $739,839 $4,139,628 Salaries Payable 1,361,894 - - 11,443 1,373,337 Due to Other Governments 85,464 - - 20,083 105,547 Due to Other Funds - - - 150,000 150,000 Unearned Revenue 668,497 - 172,390 235,243 1,076,130 Total Liabilities 3,581,282 76,420 2,030,332 1,157,012 6,845,046 DEFERRED INFLOWS OF RESOURCES Deferred Inflow of Resource Related to Lease Receivable - - 6,487,850 191,117 6,678,967 Unavailable Revenue 125,285 - 233,919 3,025 362,229 Unavailable Revenue - State Shared Taxes - - 5,634,659 - 5,634,659 Unavailable Revenue-Property Taxes 429,008 - 3,637 - 432,645 Unavailable Revenue-Special Assessments 28,822 168,067 161,725 1,815,657 2,174,271 Total Deferred Inflows of Resources 583,115 168,067 12,521,790 2,009,799 15,282,771 FUND BALANCESNonspendable 158,058 - - 253,995 412,053 Restricted - - 11,638,401 13,741,168 25,379,569 Assigned - 213,360 33,144,524 15,899,486 49,257,370 Unassigned 34,538,075 - - - 34,538,075 Total Fund Balance 34,696,133 213,360 44,782,925 29,894,649 109,587,067 Total Liabilities, Deferred Inflows of Resources, and Fund Balance $38,860,530 $457,847 $59,335,047 $33,061,460 $131,714,884 The notes to the financial statements are an integral part of this statement 44 City of Eden Prairie, Minnesota Governmental Funds Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position December 31, 2025 Amounts Reported for Governmental Activities in the Statement of Net Position are Different Because: Total Fund Balance - Governmental Funds $109,587,067 1.Capital assets used in Governmental Activities are not financial resources and therefore are not reported as assets in governmental funds. Cost of Capital Assets 303,961,921 Less Accumulated Depreciation (60,845,968) 2.Long term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-term liabilities at year end consist of: Bond Principal Payable Net (37,893,086) Finance Purchases From Direct Borrowing (157,711) Subscription Liablity (29,298) Deferred Gain on Refunding 196,717 3.The City's net pension liability, net pension asset and related deferred outflows and inflows of resources are recorded only on the Statement of Net Position Balances at year end are: Net Pension Asset 3,609,847 Deferred Outflows of Resources related to pensions 13,729,157 Net Pension Liability (14,210,111) Deferred Inflows of Resources related to pensions (18,501,214) 4.Taxes and special assessment receivable will be collected in future years, but are not available soon enough to pay for the current period's expenditures and therefore are deferred in the funds.2,606,916 5.Receivable will be collected in future years, but are not available soon enough to pay for the current period's expenditures and therefore are deferred in the funds.5,996,888 6.Governmental funds do not report a liability for accrued interest on long-term debt until due and payable.(1,066,965) 7.Internal Service Funds are used by management to charge the costs of employee benefits to individual funds. The assets and liabilities of the Internal Service Fund are included in Governmental Activities in the Statement of Net Position.21,832,431 8.Internal Service Funds are used by management to charge the costs of employee benefits to individual funds. The assets and liabilities of the Internal Service Fund are included in Business-type Activities in the Statement of Net Position.753,442 Net Position - Governmental Activities $329,570,033 The notes to the financial statements are an integral part of this statement 45 City of Eden Prairie, Minnesota Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Public Capital Other TotalImprovementImprovementGovernmentalGovernmental General Construction Maintenance Funds FundsREVENUES General Property Taxes $46,297,247 $- $392,191 $6,579,644 $53,269,082 Special Assessments 24,966 41,402 13,802 402,160 482,330 Penalties and Interest 48,290 - 440 - 48,730 Licenses and Permits 5,561,305 - - 5,624,404 11,185,709 Intergovernmental Revenue 2,909,152 1,105,000 20,160 2,118,719 6,153,031 Charges for Services 6,728,553 - - 1,302,361 8,030,914 Fines and Forfeits 366,808 - - 4,300 371,108 Investment Income 1,387,077 48,933 2,193,576 1,229,093 4,858,679 Lease Income - - 167,761 9,584 177,345 Rental - - 590,242 93,017 683,259 Other 364,605 266,906 83,533 571,980 1,287,024 Total Revenues 63,688,003 1,462,241 3,461,705 17,935,262 86,547,211 EXPENDITURESCurrentAdministration 5,009,133 - 51,783 - 5,060,916 Community Development 2,667,291 - - 4,268,512 6,935,803 Police 20,535,065 - - 511,066 21,046,131 Fire 7,848,240 - - - 7,848,240 Public Works 6,655,336 - - 73,989 6,729,325 Parks and Recreation 16,094,439 - - 48,678 16,143,117 Capital OutlayAdministration - - - 71,981 71,981 Community Development - - - 476,737 476,737 Police - - 13,881,545 - 13,881,545 Fire - - 4,174,191 - 4,174,191 Public Works - 2,091,234 519,865 6,127,315 8,738,414 Parks and Recreation - - 1,247,730 860,900 2,108,630 Debt Service Principal 76,180 - - 2,360,111 2,436,291 Interest 5,433 - - 349,847 355,280 Bond Interest Costs - - 212,025 - 212,025 Fiscal Agent Fees - - - 69,193 69,193 Total Expenditures 58,891,117 2,091,234 20,087,139 15,218,329 96,287,819 Excess of Revenues Over (Under) Expenditures 4,796,886 (628,993) (16,625,434) 2,716,933 (9,740,608) OTHER FINANCING SOURCES (USES) Issuance of Debt - - 23,694,458 1,065,542 24,760,000 Issuance of SBITA - - - 14,874 14,874 Bond Premium - - 1,955,490 - 1,955,490 Sale of Capital Assets - - 150,000 - 150,000 Transfers In 470,729 1,180,000 5,487,331 1,346,328 8,484,388 Transfers Out (4,393,985) - (250,000) (2,279,246) (6,923,231) Total Other Financing Sources (Uses)(3,923,256) 1,180,000 31,037,279 147,498 28,441,521 Net Change in Fund Balances 873,630 551,007 14,411,845 2,864,431 18,700,913 Fund Balance (Deficit) - Beginning 33,822,503 (337,647) 30,371,080 27,030,218 90,886,154 The notes to the financial statements are an integral part of this statement 46 City of Eden Prairie, Minnesota Reconciliation of the Statement of Revenues and Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended December 31, 2025 Total net change in fund balances - governmental funds $18,700,913 Amounts Reported for Governmental Activities in the Statement of Activities are Different Because: Capital outlays are reported in Governmental Funds as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over the estimated useful life's as depreciation expense. Capital Outlays 20,828,219 Depreciation/Amortization Expense (4,114,785) The net effect of the disposal of capital assets Contributed to Enterprise funds (63,696) Disposals (5,846,327) Accumulated Depreciation/Amortization on Disposals 4,403,997 Principal payments of long-term debt and SBITAs consumes the current financial resources of Governmental Funds, However they have no effect on Net Position.2,436,291 Interest on long-term debt in the statement of activities differs from the amount reported in the Governmental Funds because interest is recognized as an expenditure in the funds when it is due thus requires use of current financial resources. In the Statement of Activities, however interest expense is recognized as the interest accrues, regardless of when it is due.(914,083) The issuance of long-term debt and SBITAs provides current financial resources to Governmental Funds and has no effect on Net Position. These amounts are reported in the Governmental Funds as a source of financing. These amounts are not shown as revenue in the Statement of Activities, but rather constitute long-term liabilities in the Statement of Net Position.(24,774,874) Governmental Funds report debt issuance premiums and discounts as another financing source oruse at the time of issuance. Premiums and discounts are reported as an unamortized asset or liabilityin the Government-wide financial statements. Premiums (1,955,490) Amortization of Premiums/Discounts 198,203 Refunding gains/(losses) are recognized when paid in the governmental funds but amortized over the life of thedebt in the Statement of Activities. Amortization of Deferred Gain (21,858) Taxes and special assessments receivable will be collected in future years, but are not available soon enough to pay for the current period's expenditures, and therefore are deferred in the funds.(201,271) Receivable will be collected in future years, but are not available soon enough to pay for the current period's expenditures, and therefore are deferred in the funds.2,224,468 Some pension expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore are not reported as expenditures. Change in Net Pension Asset/Liability and Related Deferred Outflows/Inflows of Resources 2,022,135 Internal Service Funds are used by management to charge the costs of employee benefits to individual funds. The net revenue of these activities is reported in Governmental Activities.3,819,950 Internal Service Funds are used by management to charge the costs of employee benefits to individual funds. The net revenue of these activities is reported in Business Type Activities.203,071 Change in Net Position - Governmental Activities $16,944,863 The notes to the financial statements are an integral part of this statement 47 This page is intentionally left blank 48 City of Eden Prairie, Minnesota General Fund Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended December 31, 2025 2025 2024 Budget Budget Variance Original Final Actual Over/(Under)Actual REVENUES General Property Taxes $46,234,072 $46,234,072 $46,297,247 $63,175 $43,915,350 Special Assessments 5,000 5,000 24,966 19,966 10,920 Penalties, Interest, Other 25,000 25,000 48,290 23,290 49,159 Licenses and Permits 4,159,200 4,159,200 5,561,305 1,402,105 5,281,282 Intergovernmental Revenue 1,885,585 1,885,585 2,909,152 1,023,567 2,447,428 Charges for Services 6,090,837 6,090,837 6,728,553 637,716 6,168,832 Fines and Forfeitures 350,000 350,000 366,808 16,808 431,315 Investment Income 50,000 50,000 1,387,077 1,337,077 1,177,781 Other Revenue 157,125 157,125 364,605 207,480 356,149 Total Revenues 58,956,819 58,956,819 63,688,003 4,731,184 59,838,216 EXPENDITURES Current Administration 5,356,825 5,356,825 5,009,133 (347,692) 5,181,572 Community Development 2,828,732 2,828,732 2,667,291 (161,441) 2,651,093 Police 20,500,197 20,500,197 20,535,065 34,868 19,551,193 Fire 8,067,386 8,067,386 7,848,240 (219,146) 7,330,295 Public Works 7,051,708 7,051,708 6,655,336 (396,372) 6,565,994 Park and Recreation 16,091,087 16,091,087 16,094,439 3,352 15,354,429 Debt Service Principal 76,180 76,180 76,180 - 92,046 Interest 5,433 5,433 5,433 - 7,743 Total Expenditures 59,977,548 59,977,548 58,891,117 (1,086,431) 56,734,365 Excess of Revenues Over (Under) Expenditures (1,020,729) (1,020,729) 4,796,886 5,817,615 3,103,851 OTHER FINANCING SOURCES (USES) Transfer In 470,729 470,729 470,729 - 473,803 Transfer Out - - (4,393,985) (4,393,985) (3,471,818) Total Other Financing Sources (Uses)470,729 470,729 (3,923,256) (4,393,985) (2,998,015) Net Change in Fund Balance $(550,000) $(550,000) 873,630 $1,423,630 105,836 Fund Balance (Deficit) - Beginning 33,822,503 33,716,667 Fund Balance (Deficit) - Ending $34,696,133 $33,822,503 The notes to the financial statements are an integral part of this statement 49 City of Eden Prairie, MinnesotaProprietary Funds Statement of Net Position December 31, 2025 Governmental Activities InternalWaterWastewaterStormwaterLiquorServiceFundFundFundFundTotalsFundASSETS Current Assets:Cash and Investments $20,126,114 $12,756,497 $10,488,034 $2,975,482 $46,346,127 $13,642,667 Receivables:Accounts 1,533,951 1,550,064 777,438 7,323 3,868,776 69,954 Lease Receivable - - - 121,624 121,624 855 Investment Interest 83,677 54,881 41,287 12,259 192,104 59,068 Lease Receivable Interest - - - 1,172 1,172 472 Due From Other Governments 668 - 35,400 29,996 66,064 628,507 Unremitted Special Assessments 8,747 1,031 - - 9,778 - Delinquent Special Assessments 434,864 8,484 3,662 - 447,010 - Deferred Special Assessments 213,663 285,844 164,063 - 663,570 - Special Deferred Special Assessments 184,444 241,736 - - 426,180 - Inventory - - - 1,111,866 1,111,866 168,774 Prepaid Items 39,493 404,120 100,070 37,024 580,707 754,027 Total Current Assets 22,625,621 15,302,657 11,609,954 4,296,746 53,834,978 15,324,324 Noncurrent AssetsLease Receivable - - - 294,812 294,812 29,567 Capital Assets:Not Being Depreciated or AmortizedLand 410,694 - 110,602 536,659 1,057,955 - Work in Progress 248,072 - 48,255 - 296,327 497,879 Depreciated or AmortizedProperty, Plant and Equipment 153,191,325 85,406,597 54,893,189 2,852,527 296,343,638 22,845,379 IT Subscriptions - - - - - 2,542,440 Lease Asset - Building/Equipment - - - 1,474,097 1,474,097 546,755 Less Accumulated Depreciation/Amortization (96,653,928) (57,972,257) (31,739,411) (2,500,538) (188,866,134) (10,952,527) Total Noncurrent Assets 57,196,163 27,434,340 23,312,635 2,657,557 110,600,695 15,509,493 Total Assets 79,821,784 42,736,997 34,922,589 6,954,303 164,435,673 30,833,817 DEFERRED OUTFLOWS OF RESOURCESOther Post Employment Benefits 35,162 7,986 3,062 6,828 53,038 664,775 Pensions 235,920 54,443 54,443 108,886 453,692 - Total Deferred Outflows of Resources 271,082 62,429 57,505 115,714 506,730 664,775 Total Assets and Deferred Outflows of Resources 80,092,866 42,799,426 34,980,094 7,070,017 164,942,403 31,498,592 LIABILITIES Current Liabilities: Accounts Payable 353,460 63,071 66,258 176,245 659,034 697,155 Claims Payable - - - - - 7,177 Salaries Payable 136,650 49,301 31,678 63,879 281,508 132,604 IT Subscriptions Interest Payable - - - - - 37,078 IT Subscriptions Liabilities - - - - - 524,249 Bond Interest Payable 66,625 - - - 66,625 - Lease Interest Payable - - - 2,119 2,119 12,824 Due to Other Governments 65,784 2,838 2,280 154,267 225,169 250,883 Unearned Revenue - - - 9,932 9,932 695 Current Other Postemployment Benefits Liability 2,158 987 177 646 3,968 72,736 Current Lease Liability Payable - - - 205,863 205,863 110,304 Current Portion of Bonds Payable 710,000 - - - 710,000 - Current Portion of Liabilities for Compensated Absences 129,332 33,106 19,693 65,593 247,724 1,372,878 Total Current Liabilities 1,464,009 149,303 120,086 678,544 2,411,942 3,218,583 Noncurrent Liabilities:Total Other Postemployment Benefits Liability 129,216 34,594 19,617 24,090 207,517 2,455,238 IT Subscriptions Liabilities - - - - - 1,198,628 Net Pension Liability 1,021,302 235,685 235,685 471,370 1,964,042 - Lease Liability Payable - - - 576,399 576,399 287,313 Bonds Payable 8,434,561 - - - 8,434,561 - Liabilities for Compensated Absences 144,628 37,021 22,022 73,350 277,021 1,535,248 Total Noncurrent Liabilities 9,729,707 307,300 277,324 1,145,209 11,459,540 5,476,427 Total Liabilities 11,193,716 456,603 397,410 1,823,753 13,871,482 8,695,010 DEFERRED INFLOWS OF RESOURCES Other Postemployment Benefits Liability 40,335 11,078 3,165 8,591 63,169 944,600 Pensions 680,859 157,121 157,121 314,243 1,309,344 - Deferred Inflow of Resource Related to Lease Receivable - - - 383,230 383,230 26,551 Total Deferred Inflows of Resources 721,194 168,199 160,286 706,064 1,755,743 971,151 Total Liabilities and Deferred Inflows of Resources 11,914,910 624,802 557,696 2,529,817 15,627,225 9,666,161 NET POSITIONNet Investment in Capital Assets 48,354,100 27,434,340 23,312,635 1,580,483 100,681,558 13,265,212 Unrestricted 19,823,856 14,740,284 11,109,763 2,959,717 48,633,620 8,567,219 Total Net Position 68,177,956 $42,174,624 $34,422,398 $4,540,200 149,315,178 $21,832,431 Adjustment to Reflect the Consolidation of Internal Service Fund Activities Related to Enterprise Funds (753,442) Total Net Position-Business-Type Activities $148,561,736 The notes to the financial statements are an integral part of this statement 50 City of Eden Prairie, Minnesota Proprietary FundsStatement of Revenues, Expenses and Changes in Net PositionFor the Year Ended December 31, 2025 Governmental Activities -InternalWaterWastewaterStormwaterLiquor Service Fund Fund Fund Fund Total FundSALES AND COST OF SALES Sales - - - 11,495,229 11,495,229 - Cost of Sales - - - (8,050,401) (8,050,401) - Gross Profit - - - 3,444,828 3,444,828 - OPERATING REVENUESales 10,740,421 8,406,523 4,173,220 - 23,320,164 - Charges for Services - - - - - 24,479,538 Rental - - - 247,513 247,513 13,899 Lease Receivable Interest - - - 15,857 15,857 1,163 Other 20,486 100 - 41,607 62,193 - Total Operating Revenues 10,760,907 8,406,623 4,173,220 304,977 23,645,727 24,494,600 OPERATING EXPENSEPersonnel Services 3,340,442 1,129,605 724,403 1,567,788 6,762,238 11,544,181 Supplies 1,708,512 98,494 123,498 22,177 1,952,681 1,321,202 Contractual Services 2,780,886 5,115,218 578,675 818,742 9,293,521 7,977,816 User Charges 513,366 389,650 188,551 199,795 1,291,362 47,825 Capital Under $25,000 593,604 170,537 136,534 5,644 906,319 372,336 Total Operating Expenses 8,936,810 6,903,504 1,751,661 2,614,146 20,206,121 21,263,360 Operating Income (Loss) Before Depreciation/Amortization 1,824,097 1,503,119 2,421,559 1,135,659 6,884,434 3,231,240 Depreciation/Amortization 3,200,759 1,447,999 1,032,661 239,350 5,920,769 2,001,302 Operating Income (Loss) Before Nonoperating Revenues (Expenses)(1,376,662) 55,120 1,388,898 896,309 963,665 1,229,938 NONOPERATING REVENUE (EXPENSE) Grants 8,110 - 35,400 - 43,510 38,109 Investment Income 939,865 612,993 456,290 137,208 2,146,356 660,618 Lease Interest Expense - - - (28,250) (28,250) (14,059) Subscription Interest Expense - - - - - (61,407) Bonds Interest (241,223) - - - (241,223) - Bond Issuance Cost 52,569 - - - 52,569 - Fiscal Agent Fees (787) - - - (787) - Gain/(Loss) on Disposition of Capital Assets (1,186) - - - (1,186) 453,061 Miscellaneous 65,075 95,468 4,808 35,695 201,046 313,210 Total Nonoperating Revenues (Expenses)822,423 708,461 496,498 144,653 2,172,035 1,389,532 Income (Loss) Before Contributions and Transfers (554,239) 763,581 1,885,396 1,040,962 3,135,700 2,619,470 Contributions - from Governmental Activities - - 63,696 - 63,696 141,427 Capital Access Charges 1,362,551 345,325 - - 1,707,876 - Capital Grants - - - 49,993 49,993 - Capital Special Assessments 89,059 31,249 2,105 - 122,413 - Transfers In - - - - - 1,059,053 Transfers Out (315,294) (1,152,808) (352,108) (800,000) (2,620,210) - Change in Net Position 582,077 (12,653) 1,599,089 290,955 2,459,468 3,819,950 Net Position - Beginning 67,595,879 42,187,277 32,823,309 4,249,245 146,855,710 18,012,481 Amounts reported for Business Type Activities in the Statement of Activities are Different Because: Adjustment to Reflect the Consolidation of Internal Service Funds Activities Related To Enterprise Funds (203,071) 2,256,397$ The notes to the financial statements are an integral part of this statement 51 City of Eden Prairie, Minnesota Proprietary FundsStatement of Cash FlowsFor the Year Ended December 31, 2025 Page 1 of 2 GovernmentalActivities - Internal Water Wastewater Stormwater Liquor Service Fund Fund Fund Fund Totals Fund CASH FLOWS FROM OPERATING ACTIVITIES Receipts From Customers $10,875,261 8,388,312 4,146,258 11,790,355 35,200,186 24,456,534 Payments to Vendors (5,608,374) (5,908,639) (1,148,060) (9,080,585) (21,745,658) (10,505,867) Payments to Employees (3,544,498) (1,179,473) (780,450) (1,547,307) (7,051,728) (11,393,432) Other Receipts 20,486 100 - 13,180 33,766 14,773 Net Cash Provided (Used) By Operating Activities 1,742,875 1,300,300 2,217,748 1,175,643 6,436,566 2,572,008 CASH FLOWS FROM INVESTING ACTIVITIES Investment Income 958,627 620,033 454,118 139,171 2,171,949 669,350 Net Cash Provided (Used) By Investing Activities 958,627 620,033 454,118 139,171 2,171,949 669,350 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Grants 8,110 - 35,400 - 43,510 38,109 Miscellaneous 65,075 95,468 4,808 35,695 201,046 313,210 Payments From Other Funds - - - - - 149,014 Payments to Other Funds - - - - - (149,014) Transfer In - - - - - 1,059,053 Transfers (Out)(315,294) (1,152,808) (352,108) (800,000) (2,620,210) - Net Cash Provided (Used) By Noncapital Financing Activities (242,109) (1,057,340) (311,900) (764,305) (2,375,654) 1,410,372 CASH FLOWS FROM CAPITAL FINANCING ACTIVITES Acquisition and Construction of Capital Assets (2,190,153) (429,150) (48,255) (224,030) (2,891,588) (4,392,644) Proceeds From Sale of Equipment - - - - - 421,738 Grants - - - 49,993 49,993 - Access Charges 1,362,551 345,325 - - 1,707,876 - Special Assessments 89,059 31,249 2,105 - 122,413 - Principal Paid on Debt (685,000) - - (188,588) (873,588) (608,336) Interest and Fiscal Agent Paid on Debt (249,673) - - (28,761) (278,434) (35,680) Net Cash Provided (Used) By Capital Financing Activities (1,673,216) (52,576) (46,150) (391,386) (2,163,328) (4,614,922) Net Increase (Decrease) in Cash and Cash Equivalents 786,177 810,417 2,313,816 159,123 4,069,533 36,808 Cash and Cash Equivalents, January 1 19,339,937 11,946,080 8,174,219 2,816,359 42,276,595 13,605,859 Cash and Cash Equivalents, December 31 $20,126,114 12,756,497 10,488,035 2,975,482 46,346,128 13,642,667 The notes to the financial statements are an integral part of this statement 52 City of Eden Prairie, Minnesota Proprietary FundsStatement of Cash FlowsFor the Year Ended December 31, 2025 Page 2 of 2 GovernmentalActivities - Internal Water Wastewater Stormwater Liquor Service Fund Fund Fund Fund Totals Fund RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating Income (Loss)$(1,376,662) 55,120 1,388,898 896,309 963,665 1,229,938 Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Depreciation/Amortization 3,200,759 1,447,999 1,032,661 239,350 5,920,769 2,001,302 (Increase) Decrease in Assets and Deferred Outflows: Accounts Receivable 113,656 (68,608) (36,148) 5,113 14,013 (23,004) Lease Receivable - - - (2,677) (2,677) (289) Special Assessments Receivable 21,184 50,397 9,186 - 80,767 - Due From Other Governments 281 - (35,400) (29,996) (65,115) (478,593) Inventory - - - 38,812 38,812 6,961 Prepaid Items 2,892 (7,768) (99,860) (1,497) (106,233) (161,099) Other Post Employment Benefits (Deferred Outflow)3,078 1,408 254 918 5,658 103,744 Pensions (Deferred Outflow)(9,497) (2,191) (2,191) (21,800) (35,679) - Increase (Decrease) in Liabilities and Deferred Inflows: Accounts Payable (24,754) (129,810) 14,458 3,330 (136,776) (403,609) Salaries Payable 22,807 12,477 3,426 5,334 44,044 22,296 Unearned Revenue - - - 893 893 - Due to Other Governments 9,575 2,838 - 5,525 17,938 249,652 Other Post Employment Benefits (599) (275) (50) (179) (1,103) (20,211) Net Pension Liability (143,041) (33,009) (33,009) 23,546 (185,513) - Other Post Employment Benefits (Deferred Inflow)(3,006) (1,375) (247) (898) (5,526) (101,324) Pensions (Deferred Inflow)(123,053) (28,397) (28,397) 5,046 (174,801) - Compensated Absences 49,255 1,494 4,167 8,514 63,430 146,244 Net Cash Provided (Used) by Operating Activities $1,742,875 1,300,300 2,217,748 1,175,643 6,436,566 2,572,008 Noncash Investing, Capital and Financing Activities:Contributions of Capital Assets from Governmental Activities $- - 63,696 - 63,696 141,427 Amortization of Bond Premium 52,569 - - - 52,569 - The notes to the financial statements are an integral part of this statement 53 City of Eden Prairie, Minnesota Fiduciary Funds Statement of Fiduciary Net Position December 31, 2025 Custodial Funds Total ASSETS Cash and Investments $834,616 Due from Other Governments 123,834 Prepaids 10,692 Total Assets $969,142 LIABILITIES Accounts Payable $6,236 Due to Other Governments 7,455 Unearned Revenue 56,319 Total Liabilities $70,010 NET POSITION Restricted for Individuals, Organizations, and Other Governments $899,132 $899,132 The notes to the financial statements are an integral part of this statement 54 City of Eden Prairie, Minnesota Fiduciary Funds Statement of Changes in Fiduciary Net Position For the Year Ended December 31, 2025 Custodial Funds Total ADDITIONS Grants 627,732 Memberships 497,258 Investments Earnings 37,308 Building Permits 847,385 Other 17,980 Total Additions 2,027,663 DEDUCTIONS Personnel Services 515,659 Supplies 39,067 Contractual Services 1,347,975 Total Deductions 1,902,701 Net Increase (Decrease) in Fiduciary Net Position 124,962 Net Position - Beginning 774,170 Net Position - Ending 899,132 The notes to the financial statements are an integral part of this statement 55 This page is intentionally left blank 56 NOTES TO FINANCIAL STATEMENTS 57 City of Eden Prairie, Minnesota Notes to Financial Statements Note 1—Summary of Significant Accounting Policies Reporting Entity The City of Eden Prairie is a municipal corporation governed by an elected mayor and four-member council. The accompanying financial statements consist of the primary government and organizations for which the primary government is financially accountable. In addition, the primary government may determine through exercise of management’s professional judgment that the inclusion of an organization that does not meet the financial accountability criteria is necessary in order to prevent the financial statements from being misleading. The criteria used to determine if the primary government is financially accountable for a potential component unit include whether or not the primary government appoints the voting majority of the potential component unit’s board, is able to impose its will on the potential component unit, is in a relationship of financial benefit or burden with the potential component unit or is fiscally depended upon by the potential component unit. Blended Component Unit The Housing and Redevelopment Authority (H.R.A.) is a body organized and existing under the laws of the State of Minnesota. The Authority was established in 1980 by the City to carry out certain redevelopment projects within the City and is governed by the City Council and the Mayor. The City also has an operational responsibility for the H.R.A. The H.R.A. has a December 31 year-end and does not issue financial statements. This unit is included within the H.R.A. and Economic Development funds. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the nonfiduciary activities of the City. The fiduciary funds are only reported in the statement of fiduciary net position and the statement of changes in fiduciary net position at the fund financial statement level. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, service or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Measurement Focus, Basis of Accounting and Statement Presentation Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual proprietary funds are reported as separate columns in the fund financial statements. 58 City of Eden Prairie, Minnesota Notes to Financial Statements The financial statements for the government-wide, proprietary funds, fiduciary funds (which include custodial funds) are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, licenses, interest and special assessments are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. All other revenue items are considered to be measurable and available only when payment is received by the City. The City reports the following major governmental funds: • The General fund is the City’s primary operating fund. It accounts for the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service and capital projects. • The Public Improvement Construction fund accounts for proceeds of bonds sold and special assessments collected to finance street, drainage, and lateral utility construction within the City. • The Capital Improvement Maintenance fund accounts for the accumulation of resources to be used for capital improvements and maintenance of City property. The City reports the following major proprietary funds: • The Water fund accounts for the operations of the City water system. • The Wastewater fund accounts for the operations of the City wastewater service. • The Stormwater fund accounts for the operations of the City’s stormwater system. • The Liquor fund accounts for the operations of the City’s three retail liquor stores and the operations of the City-owned Den Road building which is leased to City liquor operations and other tenants. Additionally, the city reports the following fund types: • Internal Service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the 59 City of Eden Prairie, Minnesota Notes to Financial Statements government and to other government units, on a cost reimbursement basis. Internal Service funds include Health & Benefits, Dental, Severance, Workers Compensation, Property Insurance, Facilities, Fleet, and Information Technology. • Fiduciary funds include Custodial funds that account for evidence held by the Police department in the Escrow fund, WAFTA, Metropolitan Council Environmental Services funds (MCES), Fencing and the 494 Corridor Commission. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this rule are payments in-lieu of taxes and other charges between the City’s water, wastewater, and storm water function and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported from the various functions concerned. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenue of the City’s proprietary funds are charges to customers for sales and services. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance Cash and Investments Cash and investments, except for small amounts of cash on hand and the investments from the bond proceeds relating to the Police Remodel, are deposited in pooled accounts of the City. The City invests cash surpluses in these accounts; and investment earnings, as well as gains and losses on sales of securities, are allocated to the various funds on the basis of average cash balances. Funds with deficit cash balance averages (interfund payable) are charged interest equivalent to the average investment earnings lost in financing the deficits. For purposes of the statement of cash flows, the Proprietary funds consider all unrestricted investments held in the pooled accounts of the City to be cash equivalents because this pool is used essentially as a demand deposit account. Investments are stated at their fair value as determined by quoted market prices, except for money market investments and participating interest-earning investment contracts that have a remaining maturity at time of purchase of one year or less which are recorded at amortized cost, provided that the fair value of those investments is not significantly affected by the impairment of the credit standing of the issuer or by other factors. Money market investments are short-term, highly liquid debt instruments including commercial paper, banker's acceptances, and U.S. Treasury and agency obligations. Investments in external investment pools that meet the criteria of GASB Statement No. 79 are valued at amortized costs. If an external investment pool does not meet the criteria established by this Statement, that pool should apply the provisions in paragraph 16 of Statement No. 31. 60 City of Eden Prairie, Minnesota Notes to Financial Statements Interfund Receivables/Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as “due to/from other funds” (i.e., the current portion of interfund loans) or advances to/from other funds. All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Inventories and Prepaid Items Liquor fund inventories are valued at average cost. The Fleet fund’s inventories are valued at cost. All inventories use the first-in/first-out (FIFO) method. Inventories and prepaids of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial individual cost of more than $25,000 and an estimated useful life in excess of 1 year. Assets in aggregate over $50,000 will be capitalized regardless of individual unit cost. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. Lease assets and information technology subscription assets are recorded based on the measurement of payments applicable to the lease and subscription term. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. The City has chosen to use the modified approach for its infrastructure assets which means the following criteria will take place: • The City will preserve and maintain infrastructure assets at a condition level of 70. • The Engineering department will be in charge of determining the appropriate condition level at which these assets are to be maintained. • The City will maintain an inventory of these assets and perform a condition assessment every 3 years to establish that the condition level of 70 is being maintained. • The City will make annual estimates of the amounts that must be expended to preserve and maintain these assets at the condition level of 70. 61 City of Eden Prairie, Minnesota Notes to Financial Statements Property, plant, and equipment, except for infrastructure, of the City are depreciated or amortized using the straight-line method over the following estimated useful lives: Buildings 5-50 years Land improvements 10-50 years Leasehold improvements 10-25 years Lease Assets shorter of useful life or lease term Subscription Assets shorter of useful life or subscription term Equipment 5-30 years Autos 5-20 years Other assets 5-30 years Distribution system 20-50 years Intangible assets 3 years Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position includes a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has three items that qualify for reporting in this category. It is the deferred charge on refunding reported in the government-wide statement of net position, and deferred amounts related to pension and OPEB. The deferred charge on refunding resulted from the difference between the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The deferred amounts related to pension and OPEB relate differences between estimated and actual investment earnings, changes in actuarial assumptions, and other pension and OPEB related changes. In addition to liabilities, the statement of financial position includes a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has four items that qualify for reporting in this category. Unavailable revenue is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from four sources: property taxes, special assessments, state shared taxes and loans/invoices not collected within 60 days. The City also reports deferred amounts related to leases. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. In the government-wide financial statements the City reports deferred amounts related to leases and deferred amounts related to pension and OPEB. Pensions For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and the relief association and additions to/deductions from PERA’s and the relief association fiduciary net position have been determined on the same basis as they are reported by PERA and the relief association except that PERA’s fiscal year end is June 30. For this 62 City of Eden Prairie, Minnesota Notes to Financial Statements purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. For the governmental activities, the net pension liability will be liquidated through the General fund. For purposes of measuring the liability, deferred outflows of resources and deferred inflows of resources, and expense associated with the City’s requirement to contribute to the Eden Prairie Firefighter Relief Association, information about the Plan’s fiduciary net position and additions to/deductions from the Eden Prairie Firefighter Relief Association Plan’s fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, benefit payments (including refunds of contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Postemployment Benefits Other Than Pensions (OPEB) For purposes of measuring the total OPEB liability, deferred outflows/inflows of resources related to OPEB, and OPEB expense, the City recognizes benefit payments when due and payable in accordance with the benefit terms. The City’s benefit payments consist of the implicit rate subsidy, and subsidized premiums for officers injured in the line of duty. Other post-employment benefits are generally liquidated through the Health and Benefits Internal Service funds. Liabilities for Compensated Absences The City compensates employees upon termination for unused paid time off (PTO). Such pay will be reflected as a liability in the government-wide financial statement and accrued as an expense as it is earned in an internal service fund. General Property Taxes Property tax levies are set by the City Council in December each year and are certified to Hennepin County for collection in the following year. In Minnesota, counties act as collection agents for all property taxes. The County spreads all levies over taxable property. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Revenues are accrued and recognized in the year collectible, net of delinquencies. Real property taxes may be paid by taxpayers in two equal installments on May 15 and October 15. Personal property taxes may be paid on February 28 and June 30. The County provides tax settlements to taxing districts in February, June, and December. In the governmental fund financial statements, taxes that remain unpaid at December 31 are classified as delinquent taxes receivable and are fully offset by unavailable revenue because they are not available to finance current expenditures. Special Assessment Levies Special assessments represent the financing for public improvements paid for by the benefiting property owner. In the fund financial statements, special assessment revenue and related interest 63 City of Eden Prairie, Minnesota Notes to Financial Statements income is generally recognized in the year collected. Hennepin County acts as the billing and collection agent. Amounts collected by the County during the year that have not yet been remitted to the City are considered collections for purposes of revenue recognition. Deferred special assessments receivable represents principal amounts due in future years. Special deferred assessments receivable includes Green Acres, disability, senior citizen owned property or other qualified hardship properties. These special assessments are deferred until such time the property loses its exempt status. While these taxes remain a valid receivable, the timing of their collection is uncertain. Interest accrues from the year of the deferment. Delinquent special assessments receivable represents special assessments principal and interest that are past due. In the governmental fund financial statements, deferred and delinquent special assessments receivable are fully offset by deferred inflows of resources because such assessment revenue is not available currently. Long-term Obligations In the government-wide financial statements and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the statement of net position. Bond premiums and discounts are amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums and discounts on debt issuances are reported as other financing sources/uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Fund Balance Classifications In the fund financial statements, governmental funds report fund balance in classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: • Nonspendable-consists of amounts that are not in spendable form, such as prepaid assets and assets that are legally or contractually required to be maintained intact. • Restricted-consists of amounts related to externally imposed constraints established by creditors, grantors or contributors; or constraints imposed by state statutory provisions. • Committed-consists of internally imposed constraints. These constraints are established by Resolution of the City Council. Only the Council can remove or change the constraints placed on committed fund balances by resolution. • Assigned-consists of internally imposed constraints. These constraints reflect the specific purpose for which it is the City’s intended use. These constraints are established by the City council and/or management. Pursuant to City Council Resolution, the City Manager or Finance Manager is authorized to establish assignments of fund balance. • Unassigned-is the residual classification for the general fund and also reflects negative residual amounts in other funds. 64 City of Eden Prairie, Minnesota Notes to Financial Statements When both restricted and unrestricted resources are available for use, it is the City’s policy to first use restricted resources, and then use unrestricted resources as they are needed. When unrestricted resources are available for use, it is the City’s policy to use resources in the following order: 1) committed 2) assigned 3) unassigned. • The City’s fund balance policy requires the unassigned for working capital fund balance component to equal 50% of the next year’s budgeted tax revenue. In recognition that the amount for working capital only covers operating costs for the first six months of the year, the City will maintain an unassigned fund balance component for budget stabilization which is 10% of the next year’s budget in fund balance for budget stabilization and 5% of the next year’s budget for budget balancing in the general fund. If the balance falls below 15%, a plan would be developed and implemented to replenish the fund. Prior Period Comparative Financial Information/Reclassification The financial statements include certain prior year partial comparative information but not at the level of detail required for a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the City’s financial statements for the year ended December 31, 2024, from which the summarized information was derived. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year’s presentation. Note 2—Stewardship, Compliance and Accountability Budgetary Information An annual budget is adopted on a basis consistent with generally accepted accounting principles for the General fund. The City does not budget for governmental funds other than the General fund. All annual appropriations lapse at fiscal year end. The proposed budget is presented to the City Council for review. The Council then holds a truth-in-taxation meeting after which a final General Fund annual budget is legally adopted by no later than December 31. The appropriated budget is prepared by department and division. The City’s directors and division managers may make transfers of appropriations within a division. Transfers of appropriations between departments require the approval of the City Manager. The legal level of budgetary control is the fund level. Any changes in the total budget of each fund must be approved by a majority vote of the City Council. General fund expenditures equal $58,891,117 or 98.2% of the annual amount budgeted of $59,977,548. All departments, except Police and Park and Recreation have spent less than 100% of the amounts budgeted. 65 City of Eden Prairie, Minnesota Notes to Financial Statements Deficit Fund Equity The following governmental funds had deficit fund balance/net position at December 31, 2025: The fund balance deficit of the Severance Internal Service funds will be financed by user charges. The fund balance deficit of the Health and Benefits fund is due to the OPEB liability which the City will not fund since it pertains only to the Implicit Rate. Note 3—Cash and Investments Components of Cash and Investments Cash and investments at year-end consist of the following: Cash and investments are presented in the financial statements as follows: Deposits In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council, including checking accounts and certificates of deposits. The following is considered the most significant risk associated with deposits: Custodial Credit Risk In the case of deposits, this is the risk that in the event of a bank failure, the City’s deposits may be lost. Minnesota Statutes require that all deposits be protected by federal deposit insurance, corporate surety bond, or collateral. The fair value of collateral pledged must equal 110% of the deposits not covered by federal deposit insurance or corporate surety bonds. Authorized collateral includes treasury bills, notes, and bonds; issues of U.S. government agencies; general obligation rate “A” or Internal Service Funds: Health and Benefits 60,232$ Severance 1,247,368 Investments - Pooled 154,905,409$ Investments - Non-Pooled 16,047,030 Cash on hand 83,778 Total 171,036,217$ Statement of Net Position Cash and Investments 170,201,601$ Statement of Fiduciary Net Position Cash and investments 834,616 171,036,217$ 66 City of Eden Prairie, Minnesota Notes to Financial Statements better; revenue obligations rate “AA” or better; irrevocable standard letters of credit issued by the Federal Home Loan Bank; and certificated of deposit. Minnesota Statues require that securities pledged as collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. It is the City’s policy to limit collateral to what is authorized by Minnesota Statutes. At year-end, the carrying amount of the City’s deposits was $0 while the balance on the bank records was $0. At December 31, 2025, all deposits were fully covered by federal depository insurance, surety bonds, or by collateral held by the City’s agent in the City’s name. Investments As of December 31, 2025, the city had the following investments and maturities: * The weighted average life of mortgage-backed securities are no more than seven (7) years from the date of purchase. Less 1 to 7TotalThan 1 Year Years* U.S. Agencies 93,361,318$ 32,072,239$ 61,289,079$ Municipal Bonds 7,466,083 6,386,241 1,079,842 Negotiable Certificate of Deposit 7,076,312 6,827,090 249,222 Mutual Funds 63,048,726 62,048,726 1,000,000 Total 170,952,439$ 107,334,296$ 63,618,143$ Investment Maturities (in Years) Negotiable US Municipal Certificate Mutual Agencies Bonds of Deposit Funds Total Moody's Aaa -$ 1,531,359$ -$ -$ 1,531,359$ Aa1 62,025,237 2,834,388 - - 64,859,625 Aa2 - 564,324 - - 564,324 A1 - 315,614 - - 315,614 N/A, N/R 29,704,431 275,000 7,076,312 63,048,726 100,104,469 S&P AA+1,631,650 1,107,132 - - 2,738,782 AAA - 838,266 - - 838,266 93,361,318$ 7,466,083$ 7,076,312$ 63,048,726$ 170,952,439$ 67 City of Eden Prairie, Minnesota Notes to Financial Statements Moody’s Investors Service was used as the primary agency for the municipal bond ratings, in the case that Moody’s did not provide a rating a Standard & Poor’s was used. Investments are subject to various risks, the following of which are considered the most significant. Interest Rate Risk Per City policy, the City will match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than seven (7) years from the date of purchase or for mortgage-backed securities, the weighted average life must be no more than seven (7) years from the date of purchase. The intent to invest in securities with longer maturities will be disclosed to the City Council. Currently, the City does not have any investments with an expected average life greater than seven years from the date of purchase. Credit Risk It is the City’s policy to limit its investments to the following types, which are also authorized by Minnesota Statutes: •Direct obligations or obligations guaranteed by the United States or its agencies, itsinstrumentalities or organizations created by an act of congress, excluding mortgage-backed securities defined as high risk. •Shares of investment companies registered under the Federal Investment Company Act of1940 and whose only investments are in securities described above or in general obligationtax exempt securities or repurchase or reverse repurchase agreements. •Repurchase or reverse repurchase agreements with banks that are members of the FederalReserve System with capitalization exceeding $10,000,000: a primary reporting dealer inU.S. government securities to the Federal Reserve Bank of New York; certain Minnesotasecurities broker-dealers, or a bank qualified as a depositor. •Commercial paper issued by United States corporations or their Canadian subsidiaries, ofthe higher quality, and maturing in 270 days or less. •Banker’s acceptance of U.S. banks eligible for purchase by the Federal Reserve System. •General obligations of a state or local government. •Money market mutual funds meeting the conditions of rule 2a-7 of the Securities andExchange Commission. The fair value of the position in the pool is the net asset value pershare provided by the pool. Custodial Credit Risk For an investment, custodial credit risk is the risk that in the event of the failure of the counterparty, the city will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City’s investments are held in safekeeping. The City’s investment policy specifically addresses custodial credit risk by requiring investments to be held at the Federal Reserve Bank or any bank authorized under the laws of the United States. 68 City of Eden Prairie, Minnesota Notes to Financial Statements Concentration Risk This is the risk associated with investing a significant portion of the City’s investment (considered 5 percent or more) in the securities of a single issuer, excluding U.S. guaranteed investments (such as Treasuries), investment pools, and mutual funds. The City’s investment policy specifically addresses the City’s desire to limit risk by avoiding overconcentration in securities from a specific issuer and by setting allocation guidelines to diversify the types of securities in the portfolio. At year end, the City did hold the following investments in securities with a single issuer which exceeded 5%. Fair Value Measurements The City uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The City follows an accounting standard that defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and requires expanded disclosures about fair value measurements. In accordance with this standard, the City has categorized its investments, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. Financial assets and liabilities recorded on the combined statements of financial position are categorized based on the inputs to the valuation techniques as follows: • Level 1 – Financial assets and liabilities are valued using inputs that are unadjusted quoted prices in active markets accessible at the measurement date of identical financial assets and liabilities. • Level 2 – Financial assets and liabilities are valued based on quoted prices for similar assets, or inputs that are observable, either directly or indirectly for substantially the full term through corroboration with observable market data. • Level 3 – Financial assets and liabilities are valued using pricing inputs which are unobservable for the asset, inputs that reflect the reporting entity’s own assumptions about the assumptions market participants and would use in pricing the asset. Issuer Percentage FHLMC 9.6% Level 1 Level 2 Level 3 Total U.S. Agencies 68,998,056$ 24,363,262$ -$ 93,361,318$ Municipal Bonds - 7,466,083 - 7,466,083 Negotiable Certificates of Deposit - 7,076,311 - 7,076,311 68,998,056$ 38,905,656$ -$ 107,903,712 Investments measured at amortized cost 63,048,727 170,952,439$ 69 City of Eden Prairie, Minnesota Notes to Financial Statements Note 4—Capital Assets Capital asset activity for the year ended December 31, 2025 was as follows: 2025 2025 Beginning Ending Balance Increases Decreases Transfers Balance GOVERNMENTAL ACTIVITIES Capital Assets, Not Depreciated/Amortized Land $22,340,488 $- $- $- $22,340,488 Infrastructure 144,791,581 477,619 59,826 970,329 146,179,703 Work in Progress 3,945,650 17,252,557 - (6,346,090) 14,852,117 Total Capital Assets, Not Depreciated/Amortized 171,077,719 17,730,176 59,826 (5,375,761) 183,372,308 Capital Assets, Depreciated/Amortized Buildings 77,560,710 26,535 3,881,757 92,285 73,797,773 Land Improvements 26,166,442 341,343 90,218 2,161,235 28,578,802 Lease Asset - Equipment 116,896 429,859 - - 546,755 Subscription Assets 1,293,085 1,706,895 402,799 - 2,597,181 Leasehold Improvements 1,286 - 1,286 - - Machinery and Equipment 6,413,050 978,292 418,749 48,383 7,020,976 Autos 15,462,172 5,432,600 2,302,717 2,929,815 21,521,870 Other Assets 12,287,307 908,472 317,417 80,347 12,958,709 Total Capital Assets, Depreciated/Amortized 139,300,948 9,823,996 7,414,943 5,312,065 147,022,066 Total Capital Assets, Cost 310,378,667 27,554,172 7,474,769 (63,696) 330,394,374 Less Accumulated Depreciation/Amortization forBuildings 33,385,374 2,164,660 2,501,571 - 33,048,463 Land Improvements 15,316,774 1,008,137 75,258 - 16,249,653 Lease Asset - Equipment 67,106 102,632 - - 169,738 Subscription Assets 565,280 546,013 322,596 - 788,697 Leasehold Improvements 1,286 - 1,286 - - Machinery and Equipment 4,314,358 551,031 418,749 - 4,446,640 Autos 9,898,136 1,190,352 2,281,857 - 8,806,631 Other Assets 8,041,776 553,262 306,365 - 8,288,673 Total Accumulated Depreciation/Amortization 71,590,090 6,116,087 5,907,682 - 71,798,495 Total Capital Assets, Depreciated/Amortized, Net 67,710,858 3,707,909 1,507,261 5,312,065 75,223,571 Governmental Activities Capital Assets, Net $238,788,577 $21,438,085 $1,567,087 $(63,696) $258,595,879 70 City of Eden Prairie, Minnesota Notes to Financial Statements 2025 2025BeginningEnding Balance Increases Decreases Transfers Balance BUSINESS-TYPE ACTIVITIES Capital Assets, Not Depreciated/Amortized Land $1,057,955 $- $- $- $1,057,955 Work in Progress - 296,327 - - 296,327 Total Capital Assets, Not Depreciated/Amortized 1,057,955 296,327 - - 1,354,282 Capital Assets, Depreciated/Amortized Land Improvements 599,178 - - - 599,178 Buildings 59,361,370 33,860 - - 59,395,230 Distribution System 217,971,130 459,060 153,568 63,696 218,340,318 Lease Asset - Building 1,474,097 - - - 1,474,097 Leasehold Improvements 702,855 - - - 702,855 Machinery and Equipment 13,222,942 1,878,312 - - 15,101,254 Autos 1,015,167 - 105,822 - 909,345 Other Assets 1,071,425 224,033 - - 1,295,458 Total Capital Assets, Depreciated/Amortized 295,418,164 2,595,265 259,390 63,696 297,817,735 Total Capital Assets, Cost 296,476,119 2,891,592 259,390 63,696 299,172,017 Less Accumulated Depreciation/Amortization for Land Improvements 206,284 26,194 - - 232,478 Buildings 42,095,201 1,160,145 - - 43,255,346 Distribution System 134,125,956 3,873,817 152,382 - 137,847,391 Lease Asset - Building 584,424 194,808 - - 779,232 Leasehold Improvements 702,855 - - - 702,855 Machinery and Equipment 4,409,134 561,532 - - 4,970,666 Autos 839,339 31,556 105,822 - 765,073 Other Assets 240,376 72,717 - - 313,093 Total Accumulated Depreciation/Amortization 183,203,569 5,920,769 258,204 - 188,866,134 Total Capital Assets, Depreciated/Amortized, Net 112,214,595 (3,325,504) 1,186 63,696 108,951,601 Business-Type Activities Capital Assets, Net $113,272,550 $(3,029,177) $1,186 $63,696 $110,305,883 71 City of Eden Prairie, Minnesota Notes to Financial Statements Depreciation/Amortization expense was charged to functions/programs of the City as follows: Note 5—Long Term Receivables Non-Current Lease Receivable The City, as lessor, leases certain real property to several communications companies to install cell towers, as well as tenants to operate retail businesses, provide education and day care services, and for a community solar garden under long-term, non-cancellable lease agreements. These leases expire in various future years with the latest expiration date in 2050. For the year ended 2025 the City received $194,366 in interest revenue and $676,035 in lease revenue per the terms of these contracts. In addition, the City received variable payments for common area maintenance and insurance expenses of $33,011 not included in the measurement of the lease receivable. Notes Receivable The City has entered into note agreements with Eden Prairie residents to either improve the quality of housing and/or to increase the availability of affordable housing. These note agreements are secured by a secured lien that is placed on the property. The Rehabilitation Assistance notes have a phased repayment plan. If the loan is within 11 years of the loan date, 100% of the principal amount is due. On the 11th anniversary of the loan origination date, 90% of the loan principle is due and declines 10% a year until it is forgiven after 20 years. The Home Buyer notes are interest free and are due either when the home sells or 30 years, whichever occurs first. The City has entered into a $500,000 TIF note agreement with the developer Elevate for site improvement costs to redevelop the vacant Ruby Tuesdays and Anchor Bank. The new six-story building will include 222 apartment units over approximately 13,000 square feet of retail and Governmental Activities Administration $190,974 Community Development 61,174 Police 132,194 Fire 627,868 Public Works 407,954 Parks and Recreation 2,694,621 Capital Assets Held by the Government's Internal Service Funds are Charged to the Various Functions Based on their Usage of the Assets 2,001,302 Total Depreciation/Amortization Expense $6,116,087 Business-Type Activities Water $3,200,759 Wastewater 1,447,999 Stormwater 1,032,661 Liquor 239,350 Total DepreciationAmortization Expense $5,920,769 72 City of Eden Prairie, Minnesota Notes to Financial Statements restaurants. The note will bear simple interest at the rate of 1% per annum. The interest and principal shall be paid on the earlier of (a) the end of the term of the HUD Mortgage (40 years) or (b) a sale, refinancing, or exchange of the Project by the Developer, at which time all principal plus accrued interest shall be paid in a lump sum. Receivables as of December 31, 2025, in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Note 6—Interfund Receivables and Payables The Economic Development Fund Advanced the Affordable Housing Trust Fund $150,000. The Advance will be repaid as Inclusionary Housing payments in lieu monies are received. Interfund payables and receivables are representative of lending/borrowing arrangements to cover deficit cash balances. Notes Project Receivable Home Buyer Assistance Program 244,064$ Rehabilitation Assistance Program 1,454,861 Elevate 500,000 Gross Receivables 2,198,925 Less: allowance for uncollectibles (424,731) Net Total Notes Receivable 1,774,194$ 73 City of Eden Prairie, Minnesota Notes to Financial Statements Note 7—Interfund Transfers The composition of interfund transfers as of December 31, 2025, is as follows: Note 8—Pension Plan Defined Benefit Pension Plans The Health & Benefits and Enterprise Funds typically liquidate the liability related to the pensions. Plan Description The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). These plan provisions are established and administered according to Minnesota Statutes, Chapters 353, 353D, 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. 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 $425 in a month, unless the employee meets exclusion criteria. Transfers In Transfers Out Amount Purpose General Water 235,364$ Annual budgeted transfer Wastewater 164,755 Annual budgeted transfer Stormwater 70,610 Annual budgeted transfer Capital Improvement Maintenance General 4,447,769 Positive performance Liquor Fund 800,000 Positive performance Non-Major Governmental Funds 293,346 Assist with capital improvements Public Improvement Construction Capital Improvement Maintenance 100,000 Assist with capital improvements Water 30,000 Assist with capital improvements Stormwater 50,000 Assist with capital improvements Non-Major Governmental Funds 1,000,000 Assist with capital improvements Non-Major Governmental Funds Capital Improvement Maintenance 150,000 Assist with capital improvements Water 49,930 Assist with capital improvements Wastewater 29,000 Assist with capital improvements Stormwater 231,498 Assist with capital improvements Non-Major Governmental Funds 885,900 Assist with capital improvements Internal Service Funds Wastewater 959,053 Assist with capital purchases Non-Major Governmental Funds 100,000 Assist with capital purchases Total of Transfers 9,597,225$ 74 City of Eden Prairie, Minnesota Notes to Financial Statements Public Employees Police and Fire Plan Membership in the Police & Fire Plan includes full-time, licensed police officers and firefighters who meet the membership criteria defined in Minnesota Statutes section 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 & Fire Plan coverage for part-time positions and certain other public safety positions by submitting a resolution adopted by the entity’s governing body. The resolution must state that the position meets plan requirements. 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 five 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 the 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 percent of the highest average salary for each of the first 10 years of service and 1.7 percent for each additional year. Under the Level formula, General Plan members receive 1.7 percent of 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 percent for each month under age 65. Members with 30 or more years of service can retire at any age with a reduction of .25 percent 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. Benefit increases are provided to benefit recipients each January. The postretirement increase is equal to 50 percent of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1 percent and a maximum of 1.5 percent. The 2025 annual increase was 1.25 percent. Recipients that have been receiving the annuity or benefit for at least a full year as of June 30 before the effective date of the increase will receive the full increase. Recipients 75 City of Eden Prairie, Minnesota Notes to Financial Statements receiving the annuity or benefit for at least one month but less than a full year as of June 30 before the effective date of the increase will receive a prorated increase. Police and Fire Plan Benefits Benefits for 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 percent vested after five years of service and 100 percent vested after ten years. After five years, vesting increases by 10 percent each full year of service until members are 100 percent vested after ten years. Police and Fire Plan members receive 3 percent of highest average salary for all years of service. Police and Fire Plan members receive a full retirement benefit when they are age 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 percent 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 percent. Recipients that have been receiving the annuity or benefit for at least 36 months as of 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 June 30 before the effective date of the increase will receive a reduced prorated increase. Contributions Minnesota Statutes chapters 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 6.50 percent of their annual covered salary in fiscal year 2025 and the City was required to contribute 7.50 percent for General Plan members. The City’s contributions to the General Employees Fund for the year ended December 31, 2025, were $1,666,685. The City’s contributions were equal to the required contributions as set by state statute. Police and Fire Fund Contributions Police and Fire Plan members were required to contribute 11.80 percent of their annual covered salary in fiscal year 2025 and the City was required to contribute 17.70 percent for Police and Fire Plan members. The City’s contributions to the Police and Fire Fund for the year ended December 31, 2025, were $1,912,184. The City’s contributions were equal to the required contributions as set by state statute. 76 City of Eden Prairie, Minnesota Notes to Financial Statements Pension Costs General Employees Fund Pension Costs At December 31, 2025, the City reported a liability of $7,856,171 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 $189,515. 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 0.2371 percent at the end of the measurement period and 0.2423 percent for the beginning of the period. For the year ended December 31, 2025, the City recognized pension expense of $482,304 for its proportionate share of the General Employees Plan’s pension expense. In addition, the City recognized an additional ($29,069) as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the General Employees Fund. At December 31, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: City's Proportionate Share of the Net Pension Liability 7,856,171$ State of Minnesota's Proportionate Share of the Net Pension Liability Associated with the City 189,515 Total 8,045,686$ 77 City of Eden Prairie, Minnesota Notes to Financial Statements The $833,343 reported as deferred outflows of resources related to pensions resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2026. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Police and Fire Plan Pension Costs At December 31, 2025, the City reported a liability of $8,317,982 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 0.7099 percent at the end of the measurement period and 0.7163 percent for the beginning of the period. The State of Minnesota contributed $18 million to the Police and Fire Fund in the plan fiscal year ended June 30, 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 percent funded for a minimum of three consecutive years (on an actuarial value of assets basis). The $9 million in supplemental state aid will continue Deferred Outflow of Resources Deferred Inflow of Resources Differences Between Expected and Actual Economic Experience 760,460$ -$ Changes in Actuarial Assumptions 189,286 1,863,338 Net Collective Difference Between Projected and Actual Investment Earnings - 3,142,250 Changes in Proportion 31,680 231,789 Contributions Paid to PERA Subsequent to the Measurement Date 833,343 - Total 1,814,769$ 5,237,377$ Year Ended Dec 31: Pension Expense Amount 2026 (959,805)$ 2027 (1,598,104) 2028 (1,139,615) 2029 (558,427) (4,255,951)$ 78 City of Eden Prairie, Minnesota Notes to Financial Statements until the fund and the State Patrol Plan (administered by the Minnesota State Retirement System) is 100 percent 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 $288,345. For the year ended December 31, 2025, the City recognized pension expense of $2,048,071 for its proportionate share of the Police and Fire Plan’s pension expense. The City recognized $139,516 as grant revenue and pension expense for its proportionate share of the State of Minnesota’s pension expense for the contribution of $9 million to the Police and Fire Fund special funding situation. 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 $63,894 for the year ended December 31, 2025 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on-behalf contributions to the Police and Fire Fund. At December 31, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: The $956,092 reported as deferred outflows of resources related to pensions resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the City's Proportionate Share of the Net Pension Liability 8,317,982$ State of Minnesota's Proportionate Share of the Net Pension Liability Associated with the City 288,345 Total 8,606,327$ Deferred Outflow of Resources Deferred Inflow of Resources Differences Between Expected and Actual Economic Experience 3,873,994$ -$ Changes in Actuarial Assumptions 6,376,265 10,568,063 Net Collective Difference Between Projected and Actual Investment Earnings - 3,698,004 Changes in Proportion 84,136 307,114 Contributions Paid to PERA Subsequent to the Measurement Date 956,092 - Total 11,290,487$ 14,573,181$ 79 City of Eden Prairie, Minnesota Notes to Financial Statements 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: 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 Target Allocation Long-Term Expected Real Rate of Return Total 100% 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 an individual entry-age normal actuarial cost method. The long-term rate of return on pension plan investments used to determine the total liability is 7%. The 7% assumption is based on a review of inflation and investments return assumptions from a number of national investment consulting firms. The review provided a range of return investment return rates considered reasonable by the actuary. An investment return of 7% is within that range. Year Ended Dec 31: Pension Expense Amount 2026 1,867,340$ 2027 (1,870,623) 2028 (4,188,575) 2029 (250,650) 2030 203,722 (4,238,786)$ 80 City of Eden Prairie, Minnesota Notes to Financial Statements 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 1.50% 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 & 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 The following change in actuarial assumptions and plan provisions occurred in 2025: Changes in Actuarial Assumptions: • The combined service annuity loading factors increased from 15 percent to 19 percent for vested terminated members and from 3 percent to 44 percent for non-vested, terminated member. • The assumed post-retirement benefit increase changed from 1.25 percent to 1.5 percent. Changes in Plan Provisions: • The post-retirement benefit increase formula changed to 100 percent of the Social Security annual increase, between 1 percent and 1.75 percent, beginning January 1, 2026. If the funded ratio (on a market value of assets basis) is less than 85 percent for the last two consecutive annual valuations or is less than 80 percent in the most recent actuarial valuation, the maximum is reduced to 1.5 percent. Previously, the benefit increase was 50 percent of the Social Security annual increase, between 1 percent and 1.5 percent. • The 1 percent additional employer contribution is eliminated when the plan reaches 98 percent funded status (on an actuarial value of assets basis); this contribution was previously scheduled to stop when the plan reached 100 percent funded status. 81 City of Eden Prairie, Minnesota Notes to Financial Statements Police and Fire Fund Changes in Actuarial Assumptions: • Assumed rates of salary increases were reduced slightly. • Assumed rate 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 use of Pub-2010 Public Safety Mortality Table with rates adjusted to better fit observed experience. • Percent married assumption for female retirees lowered from 70 percent to 65 percent. • 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 percent to 13 percent for vested, terminated members and from 2 percent to 38 percent 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 percent to 3 percent; subsequent January 1 increases will be 1 percent. • The threshold to end the $9 million annual state aid contribution changed from the earlier of July 1, 208 or 90 percent funded for both PERA Police & Fire and MSRS State Patrol for three consecutive years to 100 percent 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 percent funded for a minimum of three consecutive years to 110 percent funded for a minimum of three consecutive years (on an actuarial value of assets basis). • And 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. Discount Rate The discount rate used to measure the total pension liability in 2025 was 7.0 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota Statutes. Based on these 82 City of Eden Prairie, Minnesota Notes to Financial Statements assumptions, the fiduciary net position of the General Employees and Police and Fire Funds were projected to be available to make all projected future benefit payments of current plan members. 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. Pension Liability Sensitivity The following presents the City’s proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: Pension Plan Fiduciary Net Position Detailed information about each pension plan’s fiduciary net position is available in a separately issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www.mnpera.org. Public Employees Defined Contribution Plan Five council members are covered by the Defined Contribution Plan, a multiple-employer deferred compensation plan administered by PERA. The Defined Contribution Plan is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal. Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. 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 five percent of salary which is matched by the elected official's employer. For salaried employees contributions must be a fixed percentage of salary. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives two percent of employer contributions and twenty-five hundredths of one percent (0.25 percent) of the assets in each member's account annually. 1% Lower 6.00% 19,081,404$ 6.00% 21,795,101$ Current Discount Rate 7.00%7,856,171$ 7.00%8,317,982$ 1% Higher 8.00%(1,250,021)$ 8.00%(2,748,703)$ Sensitivity Analysis (In Thousands) Net Pension Liability (Asset) at Different Disount Rates General Employees Fund Police and Fire Fund 83 City of Eden Prairie, Minnesota Notes to Financial Statements Total contributions made by the City during fiscal year 2025 were: Defined Benefit Pension Plans – Volunteer Fire Fighter’s Relief Association Plan Description Firefighters of the City of Eden Prairie are members of the Eden Prairie Firefighter Relief Association. The Association is the administrator of the single-employer defined benefit pension plan available to firefighters. The plan was established in 1968 and operates under the provisions of Minnesota Statutes Chapter 424A, which grants the authority to establish and amend the benefit terms the Association’s Board. The plan is funded by contributions from the City and 2% fire aid from the State of Minnesota. The Association is governed by a board of nine members. Six of the Board Members are elected by the members of the Association for three-year terms and a City Council Member, City Finance Director, and the Fire Chief are appointed as ex officio voting members. As of December 31, 2024 membership data related to the Association was as follows: 92 active plan participants, 19 terminated employees entitled to but not yet receiving benefits, and 102 retirees and beneficiaries currently receiving benefits. Benefits Provided Each member who is at least 50 years of age, has separated from active service with the Eden Prairie Fire Department (the "Fire Department"), has served at least 10 years of active service with such department before retirement and has been a member of the Association in good standing for at least 10 years prior to such retirement. Upon retirement, an irrevocable election for one of the following two plan options must be made. • Monthly Service Pension – Each eligible member electing this plan is entitled to receive a monthly service pension calculated by multiplying $56 times each year that member has been an active firefighter in the Fire Department and member in good standing of the Relief Association, up to a maximum pension of $1,792 per month. • Lump Sum Service Pension – each eligible member electing this plan is entitled to receive a one-time lump sum service pension equivalent to the base sum amount of $15,000 multiplied by the total number of years of active service (up to a maximum of 32 years). A member of the Association, who has performed active service of ten (10) years or more but has not reached the age of fifty (50) years, shall be placed on the deferred pension roll of the Employee Employer Employee Employer 3,741$ 3,741$ 5.0% 5.0%5.0% Amount % of Covered Payroll Required Rates 84 City of Eden Prairie, Minnesota Notes to Financial Statements Association. After they have reached the age of fifty (50) years, the Association shall, upon their application therefore, pay their pension from the date the application is approved by the Association. Minnesota Statutes provide for the payment of a supplemental benefit equal to 10% of a regular lump sum distribution, up to a maximum of $1,000. In the event of the death of an active or deferred member of the Association, the surviving spouse, if any, shall be paid 100% of the lump sum benefit for each year of service. If such member who has no surviving spouse leaves a surviving child or children, such child or children as a group shall be paid 100% of the lump sum benefit for each year of active service. If such member has no spouse and no surviving children but has a designated beneficiary on file, such beneficiary shall be paid 100% of the lump sum benefit for each year of active service. If such member has no spouse, no surviving children, and no designated beneficiary, the member's estate shall be paid 100% of the lump sum benefit. Such death benefits are payable without regard to minimum or partial vesting requirements. If an active member dies before completing one year of active service, the Association shall pay a death benefit to his or her surviving spouse, surviving children or designated beneficiary on file in the same order and procedure as describe above of $10,000. In the event of the death of a retired member of the Association, the surviving spouse, if any, shall be paid until death or remarriage of the surviving spouse, monthly, two-thirds of the monthly service pension for each year of active service. If such member leaves a surviving child or children in the addition to a spouse, such child, or children, in the aggregate, shall be paid, monthly, the sum of one-third of the monthly service pension. If such member is survived only by a child or children, such child, or children, in the aggregate, shall be paid, monthly, the sum of 100% of the monthly service pension for each year of active service. A member, who is disabled with a fire service-related disability, shall be eligible to collect a disability benefit. The member shall be eligible to receive the disability benefit immediately upon approval of the board of trustees. The disability benefit amount shall be equal to the service pension amount in effect on the date of the disability for each year of active service. A member must apply for and meet all the requirements for disability as defined in the bylaws in order to receive such benefits. A member currently receiving a disability benefit shall receive all approved increases in the monthly service pension applicable to that member's number of years of active firefighting service. These benefit provisions may be amended by a favorable vote of two-thirds of members present and voting, provided a quorum exists at any regular or special meeting. This benefit amendment must also be ratified by the City Council. 85 City of Eden Prairie, Minnesota Notes to Financial Statements Contributions Contributions by the City are determined in accordance with Minnesota Statutes as follows: Contributions totaling $0 were made by the City and $759,997 by the State of Minnesota, in accordance with state statute requirements for the year ended December 31, 2025. Pension Costs At December 31, 2025, the City reported $3,609,847 for the Association’s net pension asset. The net pension asset was measured as of December 31, 2024, and the total pension asset used to calculate the net pension asset was determined by an actuarial valuation as of January 1, 2024. As a result of its requirement to contribute to the Relief Association, the City recognized fire pension expense of $453,694 for the year ended December 31, 2025. At December 31, 2025, the City reported deferred outflows of resources and deferred inflows of resources from the following sources: The City contributions to the Association subsequent to the measurement date of $759,997, reported as deferred outflows of resources, will be recognized as an addition of the net pension asset in the year ended December 31, 2025. Other amounts reported as deferred outflows and inflows of resources related to the Association’s pension will be recognized in pension expense as follows: Deferred Outflow of Resources Deferred Inflow of Resources Liability Losses 20,035$ -$ Investment Losses 297,561 - City Contributions Subsequent to the Measurement Date 759,997 - Total 1,077,593$ -$ 86 City of Eden Prairie, Minnesota Notes to Financial Statements Actuarial Assumptions The actuarial total pension liability was determined as of December 31, 2024, using the following actuarial assumptions, applied to all periods included in the measurement: The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimates of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These asset class estimates are combined to produce the portfolio long-term expected rate of return by weighting the expected future real rates of return by weighting the expected future Year Ended Dec 31: Pension Expense Amount 2026 413,477$ 2027 580,684 2028 (491,126) 2029 (185,439) 317,596$ Actuarial Assumptions: Age 20: 0.08% Age 30: 0.08% Age 40: 0.20% Age 50: 0.49% Age 55: 0.59% 25% of active disabilities are assumed to be in Service 5-9 years: 5% 87 City of Eden Prairie, Minnesota Notes to Financial Statements real rates of return by the current asset allocation percentage (or target allocation, if available) and by adding expected inflation. Best estimates of geometric real and nominal rates of return for each major asset class included in the pension plan's asset allocation are summarized in the following table: Discount Rate The discount rate used to measure the total pension liability was 5.5%. Assets were projected using expected benefit payments and expected asset returns. Expected benefit payments by year were discounted using the expected assets return assumption for years in which the assets were sufficient to pay all benefit payments. Any remaining benefit payments after the trust fund is exhausted are discounted at the municipal bond rate of return. The equivalent single rate is the discount rate. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Pension Liability Sensitivity The following presents the City of Eden Prairies proportionate share of the net pension liability of the Association, calculated using the discount rate of 5.50%, as well as what the Association’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower (4.50%) or one percentage point higher (6.50%) than the current rate: Plan’s Fiduciary Net Position Detailed information about the Plan’s fiduciary’s net position is available in a separately issued report. That report may be obtained by writing to Eden Prairie Firefighter’s Association, 14800 Scenic Heights Rd., Eden Prairie, MN 55344 or by calling (952)949-8367. Asset Class Expected Portfolio Weight Long-Term Expected Nominal Rate of Return Cash 3.0%2.0% Fixed Income 35.0%3.2% Equities 54.0%7.4% Other 8.0%5.5% Total Portfolio 100.0%5.5% 1% Decrease Selected Discount Rate 1% Increase Net Pension Liability (Asset)(1,398,477)$ (3,609,847)$ (5,453,273)$ Discount Rate 4.50%5.50%6.50% 88 City of Eden Prairie, Minnesota Notes to Financial Statements Information about the changes in the Plan’s net pension liability (asset) is as follows: 2024 2023 Total Pension Liability Service Cost 471,966$ 485,646$ Interest 1,105,457 1,103,799 Differences Between Expected and Actual Experience - 60,107 Changes of Assumptions - - Changes of Benefit Terms - - Benefit Payments, Including Member Conribution Refunds (1,770,896) (1,440,531) Net Change in Total Pension Liability (193,473)$ 209,021$ Total Pension Liability - Beginning 20,512,707$ 20,303,686$ Total Pension Liability - Ending (a)20,319,234$ 20,512,707$ Plan Fiduciary Net Position Municipal Contributions -$ -$ State Contributions 671,703 603,218 Net Investment Income 2,155,949 2,665,542 Benefit Payments (1,770,896) (1,440,531) Administrative Expenses (36,072) (26,572) Other Changes - - Net Change in Fiduciary Net Position 1,020,684$ 1,801,657$ Fiduciary Net Position - Beginning 22,908,397$ 21,106,740$ Fiduciary Net Position - Ending (b)23,929,081$ 22,908,397$ Association's Net Pension Liability/(Asset) - Ending (a) - (b)(3,609,847)$ (2,395,690)$ General Employees Plan Police and Fire Fire Relief Total Pension Expense $ (482,308) $ 2,048,071 $ 453,694 $ 2,019,457 Net Pension Asset - - 3,609,847 3,609,847 Net Pension Liability 7,856,171 8,317,982 - 16,174,153 Deferred Outflows 1,814,769 11,290,487 1,077,593 14,182,849 Deferred Inflows 5,237,377 14,573,181 - 19,810,558 89 City of Eden Prairie, Minnesota Notes to Financial Statements Note 9—Other Post-Employment Benefits Plan Plan Description The City's single-employer defined benefit OPEB plan provides OPEB for all permanent full-time employees of the City. The City’s OPEB Plan is administered by the City. The City does not issue a separate report and is not administered through a trust or equivalent arrangement and thus there are no assets accumulated in a GASB-compliant trust. Benefits Provided All retirees of the City have the option under state law to continue their medical insurance coverage through the City from the time of retirement until the employee reaches the age of eligibility for Medicare. For members of all employee groups, the retiree must pay the full premium to continue coverage for medical and dental insurance. The City is legally required to include any retirees for whom it provides health insurance coverage in the same insurance pool as its active employees, whether the premiums are paid by the City or the retiree. Consequently, participating retirees are considered to receive a secondary benefit known as an “implicit rate subsidy.” This benefit relates to the assumption that the retiree is receiving a more favorable premium rate than they would otherwise be able to obtain if purchasing insurance on their own, due to being included in the same pool with the City’s younger and statistically healthier active employees. Employees Covered by Benefit Terms At January 1, 2024, membership included 15 retirees and others currently receiving benefits, 4 spouses receiving payments and 282 active plan members. Contributions All post-employment benefits are based on contractual agreements with employee groups. These contractual agreements do not include any specific contribution or funding requirements. Total OPEB Liability The City's total OPEB liability was measured as of January 1, 2025, and was determined by an actuarial valuation as of January 1, 2024. The Health & Benefits and Enterprise Funds typically liquidate the liability related to OPEB. Actuarial Assumptions The total OPEB liability in the January 1, 2024, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: 90 City of Eden Prairie, Minnesota Notes to Financial Statements Mortality rates were based on the Pub-2010 Public Retirement Plans Headcount-Weighted Mortality Tables (General, Safety) with MP-2021 Generational Improvement Scale. Discount Rate The discount rate used to measure the total OPEB liability was 4.2%. Since the plan is not funded by a trust, the discount rate is equal to the 20-year Municipal Bond Yield. Changes in the Total OPEB Liability Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is 1% point lower (3.2%) or 1% point higher (5.2%) than the current discount rate: Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1% point lower (5.25% decreasing to 4%) or 1% point higher (7.25% decreasing to 6%) than the current healthcare cost trend rates: Total OPEB Liability Balances at 12/31/2024 $2,760,773 Changes for the Year: Service Cost 122,737 Interest 104,209 Changes of Assumptions (112,916) Benefit Payments (135,344) Net Changes (21,314) Balances at 12/31/2025 $2,739,459 1% Decrease Discount Rate 1% Increase (3.2)% (4.2)% (5.2)% Total OPEB Liability 2,995,161$ 2,739,459$ 2,512,567$ 91 City of Eden Prairie, Minnesota Notes to Financial Statements 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 $150,243. At December 31, 2025, the City reported deferred outflows and inflows of resources related to OPEB from the following sources: The City’s contributions subsequent to the measurement date of $168,904, reported as deferred outflows of resources, will be recognized as a reduction of the total OPEB liability in the City’s fiscal year ended December 31, 2026. Other amounts reported as deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Note 10—Long Term Debt Bonds The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both governmental and business-type activities. General obligation bonds are direct obligations and pledge the full faith and credit of the City. 1% Decrease (5.25% decreasing to 4%) Healthcare Cost Trend Rates (6.25% decreasing to 5%) 1% Increase (7.25% decreasing to 6%) Total OPEB Liability 2,441,142$ 2,739,459$ 3,092,282$ Deferred Outflows of Resources Deferred Inflows of Resources Contributions Subsequent to the Measurement Date 168,904$ -$ Difference Between Expected and Actual 352,133 379,396 Change in Assumptions 196,776 628,373 Total 717,813$ 1,007,769$ OPEB Year Ended December 31:Expense 2026 (76,703)$ 2027 (65,144) 2028 (56,682) 2029 (77,522) 2030 (116,547) Thereafter (66,262) (458,860)$ 92 City of Eden Prairie, Minnesota Notes to Financial Statements The City also issues assessment debt with governmental commitment to provide funds for the construction of streets and utilities. These bonds will be repaid from amounts levied against the property owners benefited by this construction. In the event that a deficiency exists because of unpaid or delinquent assessments at the time a debt service payment is due, the City must provide resources to cover the deficiency until other resources are received. Assessment debt with governmental commitment has been issued for governmental activities. The City also issues tax abatement bonds. These bonds and interest thereon are payable from abatements collected from certain property in the City. If abatement revenues are insufficient to meet principal and interest due, the City is required to levy ad valorem taxes without limit as to rate or amount on all taxable property in the City to make up the deficiency. Bonds currently outstanding (in thousands of dollars) are as follows: 2025 Due Issue Interest Original Amount Within Date Rates Issue Maturities Outstanding One Year Governmental Activity Long-term Liabilities General Obligation Bonds G.O. CIP Bonds 2025A 03/12/25 4.00-5.00% 24,760$ 2046 24,760$ -$ Assess Debt With Govt Commit G.O. Bonds of 2016A 12/29/16 2.30-3.00% 2,360 2032 715 105 Tax Abatement Bonds G.O. Tax Abatement Bonds 2021A 12/08/21 2.00-4.00% 11,940 2035 9,635 755 Total Governmental Activity 39,060 35,110 860 Unamortized Bond Premiums 2,783 - Other Long-term Liabilities Finance Purchases Turn out gear 01/12/22 2.32% 381 2027 158 78 Total Finance Purchases 158 78 Lease Liability 397 110 Subscription Liability 1,752 538 Compensated Absences 2,908 1,373 Total Long-term Liabilities 43,108$ 2,959$ Business Type Activitiy Long-term Liabilities G.O. Bonds of 2016A 12/29/16 2.30-3.00% 1,580 2027 355 175 G.O. Water Bonds 2019A 12/05/19 2.00-3.00% 4,920 2039 3,715 220 G.O. Water Bonds 2021A 12/08/21 2.00-4.00% 5,420 2037 4,575 315 Total Business Type Activity 11,920 8,645 710 Unamortized Bond Premiums 500 - Other Long-term Liabilities Lease Liability 782 206 Compensated Absences 525 248 Total Long-term Liabilities 10,452$ 1,164$ 93 City of Eden Prairie, Minnesota Notes to Financial Statements Annual debt service requirements to maturity for governmental and business-type activity bonds (in thousands of dollars) are as follows: Years Ending 12/31 Principal Interest Principal Interest Principal Interest 2026 -$ 1,587$ 105$ 17$ 755$ 286$ 2027 755 1,126 105 14 775 256 2028 795 1,088 105 12 800 224 2029 835 1,047 100 9 1,135 185 2030 875 1,004 100 7 955 144 2031 920 959 100 4 995 110 2032 965 912 100 1 1,025 79 2033 1,015 863 - - 1,050 53 2034 1,065 811 - - 1,060 32 2035 1,115 756 - - 1,085 11 2036 1,175 699 - - - - 2037 1,230 639 - - - - 2038 1,295 576 - - - - 2039 1,360 509 - - - - 2040 1,425 439 - - - - 2041 1,495 374 - - - - 2042 1,555 313 - - - - 2043 1,620 250 - - - - 2044 1,685 182 - - - - 2045 1,755 111 - - - - 2046 1,825 38 - - - - Total 24,760$ 14,283$ 715$ 64$ 9,635$ 1,380$ Tax Abatement Bonds Governmental Assessment Debt with GovtCommitment G.O.Bonds Improv Bonds 94 City of Eden Prairie, Minnesota Notes to Financial Statements Finance Purchases From Direct Borrowing In January 2022, the City entered into a financing agreement for the purchase of turn out gear for the Fire department. Payment terms have an interest rate of 2.32% and mature in January 2027. Upon payment in full of the scheduled debt payments, the lessor’s interest in the equipment is transferred to the City, free and clear of any right or interest of the lessor. The General Fund will be used to liquidate this liability. Lease Liabilities The City, as lessee, entered into long-term, non-cancellable lease agreements for copy machines and building space for its municipal liquor stores. The copy machine leases are a five-year term with the latest expiration in 2027. The liquor building leases are a ten-year term with the latest expiration in 2030. The interest and discount rate for leases ranges from 3.25% to 3.7%. Variable payments of $232,017 were made during 2025 for copy machine maintenance and common area maintenance at municipal liquor stores. These variable payments are not included in the lease liability. The total of the City’s lease assets and accumulated amortization are $2,020,852 and $948,970, respectively, and may be found in Note 4. Subscription Liabilities The City entered into long-term, non-cancellable subscription-based technology arrangements for payroll and time keeping, fleet maintenance, police body cameras, emergency citizen alerts, email and City website hosting, and City meeting video streaming. The subscriptions range from three year to six-year terms with the latest expiration date in 2031. The interest and discount rate ranges from 3.7% to 7.3%. Variable payments of $27,593 were made during 2025 for payroll, time keeping, and police body cameras. These variable payments are not included in the subscription liability. Years Ending 12/31 Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 2026 78$ 4$ 110$ 14$ 538$ 64$ 710$ 226$ 206$ 22$ 2027 80 2 95 11 567 44 735 202 215 15 2028 - - 94 7 228 22 575 180 207 8 2029 - - 98 4 237 13 595 159 122 3 2030 - - - - 145 5 615 137 32 1 2031 - - - - 37 1 640 117 - - 2032 - - - - - - 660 100 - - 2033 - - - - - - 675 84 - - 2034 - - - - - - 685 70 - - 2035 - - - - - - 700 56 - - 2036 - - - - - - 715 41 - - 2037 - - - - - - 735 26 - - 2038 - - - - - - 300 15 - - 2039 - - - - - - 305 7 - - Total 158$ 6$ 397$ 36$ 1,752$ 149$ 8,645$ 1,420$ 782$ 49$ Lease LiabilityFinance Purchases Revenue BondsSubscription Liability Lease Liability Governmental Business Type 95 City of Eden Prairie, Minnesota Notes to Financial Statements The total of the City’s subscription assets and accumulated amortization are $2,597,181 and $788,697, respectively, and may be found in Note 4. Changes in Long Term Debt Long-term debt activity for the year ended December 31, 2025, (in thousands of dollars) was as follows: For the governmental activities, the finance purchases payable are generally paid with unassigned fund balances within the General fund. There are a number of limitations and restrictions contained in the various bond indentures. The City is in compliance with all significant limitations and restrictions. Call provisions are applicable to certain general obligation and special assessment bond issues. On March 12, 2025, the City issued $24,760,000 of G.O. Capital Improvement Bonds, Series 2025A. The bonds bear interest at a rate of 4.0%-5.0%, with a maturity in 2046. The proceeds will be used for the Police Remodel. Beginning Ending Balance Additions Reductions Balance Governmental Activity G.O. Bonds 1,239$ 24,760$ 1,239$ 24,760$ Assess. Debt With Govt Commitment Improvement Bonds 1,091 - 376 715 Tax Abatement Bonds 10,355 - 720 9,635 Issuance Premium/Discount 1,026 1,955 198 2,783 Total Bonds 13,711 26,715 2,533 37,893 Lease Liability 52 429 84 397 Subscription Liability 677 1,707 632 1,752 Liabilities for Compensated Absences 2,762 2,710 2,564 2,908 Finance Purchases 234 - 76 158 Total 17,436$ 31,561$ 5,889$ 43,108$ Business Type Activity Revenue Bonds 9,330$ -$ 685$ 8,645$ Issuance Premium/Discount 552 - 52 500 Total Bonds 9,882 - 737 9,145 Lease Liability 971 - 189 782 Liabilities for Compensated Absences 461 432 368 525 Total 11,314$ 432$ 1,294$ 10,452$ 96 City of Eden Prairie, Minnesota Notes to Financial Statements Note 11—Risk Financing and Related Insurance Issues The City is exposed to various risk of loss related to torts; thefts of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. In order to protect against these risks of loss, the City purchases commercial insurance through the League of Minnesota Cities Insurance Trust, a public entity risk pool, for property insurance and workers compensation. This pool currently operates as a common risk management and insurance program for municipal entities. The City pays an annual premium to the League for its insurance coverage. The League of Minnesota Cities Insurance Trust is self-sustaining through commercial companies for excess claims. The City is covered through the pool for any claims incurred but unreported, however, retains risk for the deductible portion of its insurance policies. The amount of these deductibles is considered immaterial to the financial statements. During the year ended December 31, 2025, there were no significant reductions in insurance coverage from the prior year. Settled claims have not exceeded the City’s commercial coverage in any of the past three years. The City uses its Dental Insurance Internal Service Fund to account for and finance its self-insured risk of loss for an employee dental plan. The dental plan is funded by the City, employee contributions, and investment earnings. The claims liability is included in the liabilities of the Dental Insurance Internal Service Fund at December 31, 2025, and is based on the requirement that a liability for claims be reported if information prior to issuance of the financial statements indicates that it is probable that a liability has been incurred on the date of the financial statements and the loss can be reasonably estimated. Note 12—Contingencies The City has been named in various legal actions. At the present time, there is no significant litigation pending that would cause a material effect on the financial statements if unfavorable rulings would result. While it is not possible to provide any probability of success or estimate of potential loss in defending any of these legal actions, the City expects to contest the allegations vigorously and does not believe these actions will have a material effect on the financial statements. A potential claim may be asserted against the City arising out of its membership in the Western Area Firing Training Academy (WAFTA). WAFTA is a joint powers entity consisting of 11 member cities that was formed in 1974 to purchase property to be used and operated as a fire training facility. In the late 1980’s, WAFTA became aware that the site was contaminated. Since that time, 2024 2025 Unpaid Claims at Beginning of Year 6,348$ 4,716$ Incurred Claims 274,364 296,147 Premiums and Settlements (275,996) (293,686) Unpaid Claims at End of Year 4,716$ 7,177$ 97 City of Eden Prairie, Minnesota Notes to Financial Statements WAFTA has been working with the Minnesota Pollution Control Agency (MPCA) and other responsible parties to address the contamination issues on the site. At this time, there is not an estimated dollar amount of the cost to remediate the site nor has a claim been asserted against WAFTA or the City. Note 13—Contract Commitments At December 31, 2025, the City had commitments on various capital projects. These commitments totaled approximately $25,088,896. The breakdown by fund is shown below. Note 14—Conduit Debt Obligations To further economic development in the City, the City has issued bonds that provide capital financing to private-sector entities for the acquisition and construction of industrial and residential facilities. The properties financed are pledged as collateral, and the bonds are payable solely from payments received from the private-sector entities on the underlying mortgage or promissory notes. In addition, no commitments beyond the collateral, the payments from the private-sector entities, and maintenance of the tax-exempt status of the conduit debt obligation were extended by the City for any of those bonds. At December 31, 2025 the bonds have an aggregate outstanding principal amount payable of $19,295,000. Note 15—Tax Abatements The City enters into property tax abatement agreements through the use of tax increment financing districts with local businesses under various Minnesota Statutes. Under these statutes the City annually abates taxes collected above the districts’ base tax capacity which is established during adoption of the tax increment district. These agreements are established to foster Fund Total General 269,128$ Capital Improvement Maintenance 2,069,609 Police Remodel 10,068,883 Park Improvement 1,053,998 Pavement Management 86,115 Economic Development 52,647 Transportation 69,327 Dell Rd 27,857 Water 7,895,868 Wastewater 226,067 Stormwater 665,867 Liquor 48,508 Internal Service 2,555,022 25,088,896$ 98 City of Eden Prairie, Minnesota Notes to Financial Statements economic development and redevelopment through creating jobs, removing blight and providing affordable housing. The City uses Minnesota Statutes 469.001 to 469.047 and 469.174 to 469.179 (The Tax Increment Act) to create these districts. For the fiscal year ended December 31, 2025, the City has one agreement established under Minnesota Statute 469.001 to 469.047 which resulted in property taxes totaling $268,173 being abated. The agreement is a pay as you go note to convert substandard property into an office and retail complex. For the fiscal year ended December 31, 2025, the City has eight agreements established under Minnesota Statute 469.174 to 469.179 (The Tax Increment Act) which resulted in property taxes totaling $3,108,356 being abated. The following agreements each exceeded 10 percent of the total amount abated, during the year: • A pay as you go note to finance the cost of a rental apartment project that provides housing in part for persons or families with low to moderate income. The abatement amount was $309,704. • A pay as you go note to finance the cost of a rental housing project that provides housing in part for persons or families with low to moderate income. The abatement amount was $687,025. • A pay as you go note to finance the cost of a rental housing project that provides housing in part for persons or families with low to moderate income. The abatement amount was $922,669. • A pay as you go note to finance the cost of a rental housing project that provides housing in part for persons or families with low to moderate income. The abatement amount was $621,791. 99 City of Eden Prairie, Minnesota Notes to Financial Statements Note 16—Fund Balance Classification At December 31, 2025, a summary of the governmental fund balance classifications are as follows: Public Capital Other Improvement Improvement Govt General Construction Maintenance Funds Total Nonspendable: Prepaid Items 158,058$ -$ -$ 32,466$ 190,524$ Cemetery Perpetual Care - - - 221,529 221,529 Total Nonspendable 158,058 - - 253,995 412,053 Restricted for: Debt Service - - - 2,897,286 2,897,286 Affordable Housing - - - 726,428 726,428 Park Dedication Fees - - - 2,986,808 2,986,808 Franchise Fee - - - 1,256,113 1,256,113 Grants - - - 78,972 78,972 Cemetery - - - 545,415 545,415 Police - - - 428,680 428,680 Capital Projects - - 11,638,401 - 11,638,401 Recycling - - - 131,843 131,843 Historical and Cultural - - - 16,090 16,090 Tax Increment - - - 4,673,533 4,673,533 - - 11,638,401 13,741,168 25,379,569 Assigned to: Capital Projects - 213,360 33,144,524 5,711,829 39,069,713 Improvement Projects - - - 10,187,657 10,187,657 Total Assigned - 213,360 33,144,524 15,899,486 49,257,370 Unassigned:34,538,075 - - - 34,538,075 Total Fund Balance 34,696,133$ 213,360$ 44,782,925$ 29,894,649$ 109,587,067$ 100 REQUIRED SUPPLEMENTARY INFORMATION 101 City of Eden Prairie, Minnesota Required Supplemental Information Modified Approach for Infrastructure Assets Condition Rating of the City’s Street System: Comparison of Needed-to-Actual Maintenance/Preservation: The condition of road pavement is measured using Good Pointe’s Icon pavement management system. Pavements in the City of Eden Prairie are visually inspected using the Paver-based Pavement Condition Index (PCI) methodology. The methodology is based on a numeric rating system ranging from 100 for a newly surfaced pavement to 0 for a failed pavement. The condition index is used to classify roads in excellent condition (85-100), very good condition (70-84), good condition (55-69), fair condition (40-54), poor condition (25-39), very poor condition (10-24) and failed condition (0-9). It is the City’s policy to maintain an average PCI of 70 percent. Average PCI 2025 81.1% 2022 85.3% 2019 84.4% 2016 76.9% 2013 79.7% 2010 81.1% 2025 2024 2023 2022 2021 Budget 6,325,000$ 5,020,000$ 4,860,500$ 5,050,500$ 3,735,500$ Actual 5,323,011 4,699,229 4,755,130 6,008,581 3,562,681 Difference (1,001,989)$ (320,771)$ (105,370)$ 958,081$ (172,819)$ 102 City of Eden Prairie, Minnesota Required Supplemental Information Other Post-Employment Benefits Plan Schedule of Changes in the City’s Total OPEB Liability and Related Ratios Last 10 Fiscal Years January 1, 2025 January 1, 2024 January 1, 2023 January 1, 2022 Total OPEB Liability Service Cost 122,737$ 129,546$ 118,766$ 162,530$ Interest 104,209 121,443 70,733 64,120 Changes in Plan - - - 18,823 Difference Between Expected and Actual Experience - (436,069) - 704,273 Changes of Assumptions (112,916) 131,774 (515,195) (392,033) Benefit Payments (135,344) (183,115) (189,099) (177,557) Net Change in Total OPEB Liability (21,314) (236,421) (514,795) 380,156 Total OPEB Liability - Beginning 2,760,773 2,997,194 3,511,989 3,131,833 Total OPEB Liability - Ending 2,739,459$ 2,760,773$ 2,997,194$ 3,511,989$ Total OPEB Liability 2,739,459$ 2,760,773$ 2,997,194$ 3,511,989$ Covered Employee Payroll 28,370,667$ 27,544,337$ 24,873,052$ 24,148,594$ City's Total OPEB Liability as a Percentage of the Covered Employee Payroll 9.66%10.02% 12.05% 14.54% Total OPEB Liability January 1, 2021 January 1, 2020 January 1, 2019 January 1, 2018 Service Cost Interest 192,408$ 160,108$ 135,751$ 143,922$ Changes in Plan 85,767 109,426 94,001 91,272 Difference Between Expected and Actual Experience - - 7,200 - Changes of Assumptions - (209,383) - - Benefit Payments 166,748 141,690 (92,512) - Net Change in Total OPEB Liability (155,238) (156,962) (118,903) (169,360) Total OPEB Liability - Beginning 289,685 44,879 25,537 65,834 Total OPEB Liability - Ending 2,842,148 2,797,269 2,771,732 2,705,898 3,131,833$ 2,842,148$ 2,797,269$ 2,771,732$ Total OPEB Liability 3,131,833$ 2,842,148$ 2,797,269$ 2,771,732$ Covered Employee Payroll 23,661,024$ 22,916,246$ 22,281,528$ 21,632,551$ City's Total OPEB Liability as a Percentage of the Covered Employee Payroll 13.24%12.40% 12.55% 12.81% 103 City of Eden Prairie, Minnesota Required Supplemental Information Schedule of Proportionate Share of Net Pension Liability Public Employees General Employees Retirement Fund Last Ten Years Fiscal Year Employer's Proportion (Percentage) of the Net Pension Liability Employer's Proportionate of the Net State's Proportionate of the Net Pension Liability Employer's Proportionate Share of the Net Pension Liability and the State's Proportionate Share of the Net Pension Liability Associated with Employer's Covered Employer's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered Payroll Plan Fiduciary Percentage of the Total June 30, 2016 0.2482%20,152,608 263,262 20,415,870 15,161,268 134.66%68.9% June 30, 2017 0.2536%16,189,657 203,595 16,393,252 16,339,119 100.33%75.9% June 30, 2018 0.2419%13,419,620 440,302 13,859,922 16,251,609 85.28%79.5% June 30, 2019 0.2365%13,075,555 406,316 13,481,871 16,728,911 80.59%80.2% June 30, 2020 0.2422%14,520,997 447,832 14,968,829 17,272,920 86.66%79.1% June 30, 2021 0.2450%10,462,598 319,529 10,782,127 17,628,443 61.16%87.0% June 30, 2022 0.2438%19,309,040 565,976 19,875,016 18,207,196 109.16%76.7% June 30, 2023 0.2454%13,722,493 378,334 14,100,827 19,475,515 72.40%83.1% June 30, 2024 0.2423%8,956,483 231,596 9,188,079 20,493,276 44.83%89.1% June 30, 2025 0.2371%7,856,171 189,515 8,045,686 21,466,995 37.48%90.8% **For purposes of this schedule, covered payroll is defined as "pensionable wages." 104 City of Eden Prairie, Minnesota Required Supplemental Information Schedule of Proportionate Share of Net Pension Liability Public Employees Police and Fire Fund Last Ten Years Fiscal Year Employer's Proportion (Percentage) of the Net Pension Liability Employer's Proportionate of the Net State Proportionate Share (Amount) of the Net Associated with City's Proportionate and the State's Proportionate Associated with Employer's Covered Employer's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered Payroll Plan Fiduciary Net Position as a Percentage of the Total June 30, 2016 0.7580%30,419,859 N/A 30,419,859 7,302,618 416.56%63.9% June 30, 2017 0.7510%10,139,393 N/A 10,139,393 7,706,718 131.57%85.4% June 30, 2018 0.7296%7,776,785 N/A 7,776,785 7,689,360 101.14%88.8% June 30, 2019 0.7299%7,770,523 N/A 7,770,523 7,702,165 100.89%89.3% June 30, 2020 0.7225%9,458,299 224,377 9,682,676 8,151,644 116.03%87.2% June 30, 2021 0.6933%5,289,145 240,567 5,529,712 8,522,492 62.06%93.7% June 30, 2022 0.7260%31,592,652 1,380,114 32,972,766 8,838,760 357.43%70.5% June 30, 2023 0.7200%12,433,464 500,827 12,934,291 9,377,957 132.58%86.5% June 30, 2024 0.7163%9,424,309 359,251 9,783,560 9,894,484 95.25%90.2% June 30, 2025 0.7099%8,317,982 288,345 8,606,327 10,654,610 78.07%91.8% **For purposes of this schedule, covered payroll is defined as "pensionable wages." 105 City of Eden Prairie, Minnesota Required Supplemental Information Schedule of Proportionate Share of Net Pension Liability Eden Prairie Fire Relief - Last Ten Years 2024 2023 2022 2021 2020 Total Pension Liability Service Cost 471,966$ 485,646$ 473,801$ 507,405$ 495,029$ Interest 1,105,457 1,103,799 1,103,831 1,154,852 1,149,953 Differences Between Expected and Actual Experience - 60,107 - (546,930) - Changes of Assumption - -- (142,626) - Changes of Benefit Terms - -- - - Benefit Payments, Including Member Contribution Refunds (1,770,896) (1,440,531) (1,739,601) (1,993,913) (1,142,660) Net Change in Total Pension Liability (193,473) 209,021 (161,969) (1,021,212) 502,322 Total Pension Liability - Beginning 20,512,707 20,303,686 20,465,655 21,486,867 20,984,545 Total Pension Liability - Ending (a)20,319,234 20,512,707 20,303,686 20,465,655 21,486,867 Plan Fiduciary Net Position Municipal Contributions - - 32,827 34,587 184,172 State Contributions 671,703 603,218 546,833 516,566 494,923 Net Investment Income 2,155,949 2,665,542 (3,948,288) 2,293,858 2,942,302 Benefit Payments (1,770,896) (1,440,531) (1,739,601) (1,993,913) (1,142,660) Administrative Expenses (36,072) (26,572) (31,081) (21,360) (29,231) Other Changes - - - - - Net Change in Fiduciary Net Position 1,020,684 1,801,657 (5,139,310) 829,738 2,449,506 Fiduciary Net Position - Beginning 22,908,397 21,106,740 26,246,050 25,416,312 22,966,806 Fiduciary Net Position - Ending (b)23,929,081 22,908,397 21,106,740 26,246,050 25,416,312 Association's Net Pension Liability/(Asset) Ending (a) - (b)(3,609,847)$ (2,395,690)$ (803,054)$ (5,780,395)$ (3,929,445)$ Fiduciary Net Position as a Percentage of the Total Pension Liability (b) / (a)117.77% 111.68% 103.96% 128.24% 118.29% Covered Payroll N/A N/A N/A N/A N/A Net Pension Liability/(Asset) as a Percentage of Covered Payroll N/A N/A N/A N/A N/A 2019 2018 2017 2016 2015 Total Pension Liability Service Cost 485,127$ 498,110$ 485,961$ 434,587$ 449,426$ Interest 1,159,236 1,147,434 1,123,468 1,151,849 1,104,701 Differences Between Expected and Actual Experience (27,803) (29,793) - (233,976) - Changes of Assumption (65,011) 246,754 - 935,047 - Changes of Benefit Terms - 338,844 - -- Benefit Payments, Including Member Contribution Refunds (2,326,728) (1,449,720) (1,084,111) (1,135,264) (1,270,544) Net Change in Total Pension Liability (775,179) 751,629 525,318 1,152,243 283,583 Total Pension Liability - Beginning 21,759,724 21,008,095 20,482,777 19,330,534 19,046,951 Total Pension Liability - Ending (a)20,984,545 21,759,724 21,008,095 20,482,777 19,330,534 Plan Fiduciary Net Position Municipal Contributions 209,316 523,283 387,665 388,664 398,395 State Contributions 476,219 457,741 448,846 448,848 437,948 Net Investment Income 3,828,516 (1,274,855) 2,776,128 892,090 (393,362) Benefit Payments (2,326,728) (1,449,720) (1,084,111) (1,137,136) (1,270,544) Administrative Expenses (29,062) (30,772) (34,700) (56,576) (26,323) Other Changes 680 254 671 4,426 - Net Change in Fiduciary Net Position 2,158,941 (1,774,069) 2,494,499 540,316 (853,886) Fiduciary Net Position - Beginning 20,807,865 22,581,934 20,087,435 19,547,119 20,401,005 Fiduciary Net Position - Ending (b)22,966,806 20,807,865 22,581,934 20,087,435 19,547,119 Association's Net Pension Liability/(Asset) Ending (a) - (b)(1,982,261)$ 951,859$ (1,573,839)$ 395,342$ (216,585)$ Fiduciary Net Position as a Percentage of the Total Pension Liability (b) / (a)109.45% 95.63% 107.49% 98.07% 101.12% Covered Payroll N/A N/A N/A N/A N/A Net Pension Liability/(Asset) as a Percentage of Covered Payroll N/A N/A N/A N/A N/A 106 City of Eden Prairie, Minnesota Required Supplemental Information Schedule of Contributions Public Employees General Employees Retirement Fund Last Ten Years Year Ending Statutorily Required Contributions Contributions in Relation to Required Contributions Contribution Deficiency Covered Contributions as a Percentage of Covered December 31, 2016 1,157,735 1,157,735 - 15,436,692 7.50% December 31, 2017 1,199,292 1,199,292 - 15,990,664 7.50% December 31, 2018 1,231,656 1,231,656 - 16,470,531 7.48% December 31, 2019 1,286,909 1,286,909 - 17,163,209 7.50% December 31, 2020 1,290,562 1,290,562 - 17,207,493 7.50% December 31, 2021 1,345,713 1,345,713 - 17,940,189 7.50% December 31, 2022 1,399,316 1,399,316 - 18,672,879 7.49% December 31, 2023 1,520,244 1,520,244 - 20,098,678 7.56% December 31, 2024 1,577,927 1,577,927 - 21,080,176 7.49% December 31, 2025 1,666,685 1,666,685 - 21,935,354 7.60% **For purposes of this schedule, covered payroll is defined as "pensionable wages." 107 City of Eden Prairie, Minnesota Required Supplemental Information Schedule of Contributions Public Employees Police and Fire Fund Last Ten Years Year Ending Statutorily Required Contributions Contributions in Relation to Required Contributions Contribution Deficiency (Excess) Covered Percentage of Covered Payroll December 31, 2016 1,188,923 1,188,923 - 7,339,334 16.2% December 31, 2017 1,224,005 1,224,005 - 7,555,723 16.2% December 31, 2018 1,260,639 1,260,639 - 7,780,987 16.2% December 31, 2019 1,342,840 1,342,840 - 7,922,043 16.95% December 31, 2020 1,464,610 1,464,610 - 8,264,270 17.72% December 31, 2021 1,543,612 1,543,612 - 8,721,153 17.70% December 31, 2022 1,596,141 1,596,141 - 9,012,516 17.71% December 31, 2023 1,704,781 1,704,781 - 9,621,206 17.72% December 31, 2024 1,825,266 1,825,266 - 10,284,740 17.75% December 31, 2025 1,912,184 1,912,184 - 10,803,294 17.70% **For purposes of this schedule, covered payroll is defined as "pensionable wages." 108 City of Eden Prairie, Minnesota Required Supplemental Information Schedule of Contributions Eden Prairie Fire Relief Last Ten Years 2025 2024 2023 2022 2021 Statutorily Required Contribution -$ -$ -$ 2,320$ 68,174$ Contributions in Relation to Statutorily Required Contribution - - - (2,320) (68,174) Contribution Deficiency (Excess)-$ -$ -$ -$ -$ 2020 2019 2018 2017 2016 Statutorily Required Contribution 184,172 203,986 517,955$ 382,336$ 388,664$ Contributions in Relation to Statutorily Required Contribution (184,172) (203,986) (517,955) (382,336) (388,664) Contribution Deficiency (Excess)-$ -$ -$ -$ -$ 109 City of Eden Prairie, Minnesota Notes to Required Supplemental Information Notes to Schedules of Changes in Net Pension Liabilities and Related Ratios Other Post-Employment Benefits Plan The City has no assets accumulated in a trust that meets the criteria in GASB 75.0 2025 Changes Changes in Plan Provisions: • For the year ending December 31,2025: None. Changes in Actuarial Assumptions: • The discount rate was changed from 3.70% to 4.20%. 2024 Changes Changes in Plan Provisions: • There was a liability gain of $168,780 due to updated census data. • There was a liability gain of $267,289 due to claims and premiums lower than expected. Changes in Actuarial Assumptions: • The health care trend rates were changed to better anticipate short term and long-term medical increases. • The discount rate was changed from 4.00% to 3.70%. 2023 Changes Changes in Plan Provisions: • For the year ending December 31,2023: None. Changes in Actuarial Assumptions: • The discount rate was changed from 2.00% to 4.00% • The inflation rate was changed from 2.00% to 2.50%. 2022 Changes Changes in Plan Provisions: • There was a liability loss of $600,259 due to updated census data. • There was a liability loss of $104,014 due to claims and premiums higher than expected. • Per a special agreement, one retiree is receiving City paid medical and dental premiums until December 2023 or until they are eligible another employer’s health insurance coverage, whichever comes first. This change increased the liability $18,823. Changes in Actuarial Assumptions: • The health care trend rates were changed to better anticipate short term and long term medical increases. • The mortality tables were updated from the Pub-2010 Public Retirement Plans Headcount-Weighted Mortality Tables (General, Safety) with MP-2019 Generational Improvement Scale 110 City of Eden Prairie, Minnesota Notes to Required Supplemental Information to the Pub-2010 Public Retirement Plans Headcount-Weighted Mortality Tables (General, Safety) with MP-2021 Generational Improvement Scale. • The salary increase rates were updated to reflect the latest experience study. • The retirement and withdrawal rates were updated to reflect the latest experience study. • The inflation rate was changed from 2.50% to 2.00%. • The subsidized benefit for one officer injured in the line of duty, who is age 60 as of the valuation date, is expected to end at age 65 instead of age 62. • The percent of future retirees electing coverage was lowered from 50% to 40%. • These changes decreased the liability $392,033. 2021 Changes Changes in Actuarial Assumptions: • The discount rate was changed from 2.90% to 2.00%. 2020 Changes Changes in Actuarial Assumptions: • The health care trend rates, mortality tables, salary increase rates, and subsidy end date of one officer (age 58 as of the valuation date) injured in the line of duty were updated. • The discount rate was changed from 3.80% to 2.90%. 2019 Changes Changes in Plan Provisions: • Per a special agreement, one retiree received City paid medical and dental premiums for six months during 2019. Changes in Actuarial Assumptions: • The discount rate was changed from 3.30% to 3.80%. 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 ration (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%. 111 City of Eden Prairie, Minnesota Notes to Required Supplemental Information • 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 percent to 7.00 percent. Changes in Plan Provisions: • An additional one-time direct state aid contribution of $170.1 million will be 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 percent minus the actual 2024 adjustment will be payable in a lump sum for calendar year 2024 by March 31, 2024. 2022 Changes Changes in Actuarial Assumptions: • The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. Changes in Plan Provisions: • There were no changes in plan provisions since the previous valuation. 112 City of Eden Prairie, Minnesota Notes to Required Supplemental Information 2021 Changes Changes in Actuarial Assumptions: • The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial reporting purposes. • The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020. Changes in Plan Provisions: • There were no changes in plan provisions since the previous valuation. 2020 Changes Changes in Actuarial Assumptions: • The price inflation assumption was decreased from 2.50% to 2.25%. • The payroll growth assumption was decreased from 3.25% to 3.00%. • Assumed salary increase rates were changed as recommended in the June 30, 2019 experience study. The net effect is assumed rates that average 0.25% less than previous rates. • Assumed rates of retirement were changed as recommended in the June 30, 2019 experience study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements. • Assumed rates of termination were changed as recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than the previous rates for years 2-5 and slightly higher thereafter. • Assumed rates of disability were changed as recommended in the June 30, 2019 experience study. The change results in fewer predicted disability retirements for males and females. • The base mortality table for healthy annuitants and employees was changed from the 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 & Survivor option changed from 35% to 45%. The assumed number of married female new retirees electing the 100% Joint & Survivor option changed from 15% to 30%. The corresponding number of married new retirees electing the Life annuity option was adjusted accordingly. Changes in Plan Provisions: • Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations occurring after June 30, 2020. 113 City of Eden Prairie, Minnesota Notes to Required Supplemental Information 2019 Changes Changes in Actuarial Assumptions: • The morality projection scale was changed from MP-2017 to MP-2018. Changes in Plan Provisions: • The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The State’s special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. 2018 Changes Changes in Actuarial Assumptions : • The morality projection scale was changed from MP-2015 to MP-2017. • The assumed benefit increase was changed from 1.00 percent per year through 2044 and 2.50 percent per year thereafter to 1.25 percent per year. Changes in Plan Provisions: • The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024. • Interest credited on member contributions decreased from 4.00 percent to 3.00 percent, beginning July 1, 2018. • Deferred augmentation was changed to 0.00 percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. • Contribution stabilizer provisions were repealed. • Postretirement benefit increases were changed from 1.00 percent per year with a provision to increase to 2.50 percent upon attainment of 90.00 percent funding ratio to 50.00 percent of the Social Security Cost of Living Adjustment, not less than 1.00 percent and not more than 1.50 percent, beginning January 1, 2019. • For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches normal retirement age; does not apply to Rule of 90 retirees, disability benefit recipients, or survivors. • Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. 2017 Changes Changes in Actuarial Assumptions: • The combined service annuity (CSA) loads were changed from 0.80 percent for active members and 60.00 percent for vested and non-vested deferred members. The revised CSA load are now 0.00 percent for active member liability, 15.00 percent for vested deferred member liability, and 3.00 percent for non-vested deferred member liability. • The assumed postretirement benefit increase rate was changed for 1.00 percent per year for all years to 1.00 percent per year through 2044 and 2.50 percent per year thereafter. 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. 114 City of Eden Prairie, Minnesota Notes to Required Supplemental Information 2016 Changes Changes in Actuarial Assumptions: • The assumed postretirement benefit increase rate was changed from 1.00 percent per year through 2035 and 2.50 percent per year thereafter to 1.00 percent per year for all years. • The assumed investment return was changed from 7.90 percent to 7.50 percent. The single discount rate changed from 7.90 percent to 7.50 percent. • Other assumptions were changed pursuant to the experience study June 30, 2015. The assumed future salary increases, payroll growth, and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and 2.50 percent for inflation. Changes in Plan Provisions: • There have been no changes since the prior valuation. 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 rate of withdrawal were modified; the new rates will increase predicted terminations; especially in the first few years of employment. • Assumed rate of disabled retirement were significantly increased, especially for ages over age 30. • Continued use 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 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). 115 City of Eden Prairie, Minnesota Notes to Required Supplemental Information • 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 changed in assumptions. 2024 Changes Changes in Actuarial Assumptions: • There were no changes in actuarial assumptions since the previous valuation. Changes in Plan Provisions: • The State contribution of $9.0 million per year will continue until the earlier of 1) both the Police & Fire Plan and the State Patrol Retirement Fund attain 90 percent 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 percent funded status for one year. • The additional $9.0 million contribution will continue until the Police & 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). 2023 Changes Changes in Actuarial Assumptions: • The investment return assumption was changed from 6.5 percent to 7.00 percent. • The single discount rate changed from 5.4 percent to 7.0 percent. 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 percent vesting after five years, increasing incrementally to 100% after 10 years. • A one-time, non-compounding benefit increase of 3.0 percent 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 changed from 6.50% to 5.40%. 116 City of Eden Prairie, Minnesota Notes to Required Supplemental Information Changes in Plan Provisions: • There were no changes in plan provisions since the previous valuation. 2021 Changes Changes in Actuarial Assumptions: • The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial reporting purposes. • The inflation assumption was changed from 2.50 percent to 2.25 percent. • The payroll growth assumption was changed from 3.25 percent to 3.00 percent. • The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the Pub-2010 Public Safety Mortality table. The mortality improvement scale was changed from MP-2019 to MN-2020. • The base mortality table for disabled annuitants was changed from the RP-2014 healthy annuitant mortality table (with future mortality improvement according to Scale 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 result 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 result in more assumed terminations. • Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall, proposed rates result in more projected disabilities. • Assumed percent married for active female members was changed from 60 percent to 70 percent. Minor changes to form of payment assumptions were applied. Changes in Plan Provisions: • There were no changes in plan provisions since the previous valuation. 2020 Changes Changes in Actuarial Assumptions: • The morality projection scale was changed from MP-2018 to MP-2019. Changes in Plan Provisions: • There have been no changes since the prior valuation. 2019 Changes Changes in Actuarial Assumptions: • The morality projection scale was changed from MP-2017 to MP-2018. Changes in Plan Provisions: • There have been no changes since the prior valuation. 117 City of Eden Prairie, Minnesota Notes to Required Supplemental Information 2018 Changes Changes in Actuarial Assumptions: • The morality projection scale was changed from MP-2016 to MP-2017. Changes in Plan Provisions: • Postretirement benefit increases were changed to 1.00 percent for all years, with no trigger. • An end date of July 1, 2048 was added to the existing $9.0 million state contribution. • New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9.0 million thereafter until the plan reaches 100 percent funding, or July 1, 2048, if earlier. • Member contributions were changed from 10.80 percent to 11.30 percent of pay, effective January 1, 2019 and 11.80 percent of pay, effective January 1, 2020. • Employer contributions were changed from 16.20 percent to 16.95 percent of pay, effective January 1, 2019 and 17.70 percent of pay, effective January 1, 2020. • Interest credited on member contributions decreased from 4.00 percent to 3.00 percent, beginning July 1, 2018. • Deferred augmentation was changed to 0.00 percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. • Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. 2017 Changes Changes in Actuarial Assumptions: • Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that average 0.34 percent lower than the previous rates. • Assumed rates of retirement were changed, resulting in fewer retirements. • The combined service annuity (CSA) load was 30.00 percent for vested and non-vested, deferred members. The CSA has been changed to 33.00 percent for vested members and 2.00 percent for non-vested members. • The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees. • Assumed termination rates were decreased to 3.00 percent for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall. • Assumed percentage of married female members was decreased from 65.00 percent to 60.00 percent. • Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females. • The assumed percentage of female members electing joint and survivor annuities was increased. 118 City of Eden Prairie, Minnesota Notes to Required Supplemental Information • The assumed postretirement benefit increase rate was changed from 1.00 percent for all years to 1.00 percent per year through 2064 and 2.50 percent thereafter. • The single discount rate was changed from 5.60 percent per annum to 7.50 percent per annum. Changes in Plan Provisions: • There have been no changes since the prior valuation. 2016 Changes Changes in Actuarial Assumptions: • The assumed postretirement benefit increase rate was changed from 1.00 percent per year through 2037 and 2.50 percent per year thereafter to 1.00 percent per year for all future years. • The assumed investment return was changed from 7.90 percent to 7.50 percent. • The single discount rate changed from 7.90 percent to 5.60 percent. • The assumed future salary increases, payroll growth, and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and 2.50 percent for inflation. Changes in Plan Provisions: • There have been no changes since the prior valuation. Changes in Plan Provisions: • The postretirement benefit increase to be paid after the attainment of the 90.00 percent funding threshold was changed from inflation up to 2.50 percent, to a fixed rate of 2.50 percent Fire Relief 2025 Changes • No changes since 2024 report 2024 Changes • No changes since 2023 report 2023 Changes • No changes since 2022 report 2022 Changes • No changes since 2021 report 2021 Changes • The mortality projection scale was updated from MP-2019 to MP-2021 • The termination assumption was updated to reflect experience from the last four years 119 City of Eden Prairie, Minnesota Notes to Required Supplemental Information 2020 Changes • No changes since 2019 report 2019 Changes • The mortality projection scale was updated from MP-2017 to MP-2019 2018 Changes • The lump sum benefit level was increased from $10,000 to $12,400 • The mortality projection scale was updated from MP-2016 to MP-2017 • The termination decrement scale was updated to reflect a recent experience study • The lump sum election rate was changed from 20% to 50% 2017 Changes • No changes since 2016 report 2016 Changes • The base mortality table was updated from the RP-2014 Blue Collar table to the unadjusted RP-2014 table • The mortality projection scale was updated from MP-2014 to MP-2016 120 COMBINING FUND STATEMENTS 121 City of Eden Prairie, Minnesota Nonmajor Governmental Funds Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects. – This fund accounts for monies received under Title I of the Housing and Community Development Act of 1974. – This fund accounts for the current operations of the City cemetery including maintenance costs and lot sales. – This fund accounts for the current operations of the City cemetery including maintenance costs and lot sales. – This fund accounts for monies received from the State. The grant will fund a police officer who will dedicate his time to decreasing DWI’s. – This fund accounts for monies received from Hennepin County's household waste rebate programs. All dollars received are to be spent on eligible recycling programs within Eden Prairie. – This fund accounts for monies received under the National Opioid Settlement. All dollars received are to be spent to fight the opioid crisis. – This fund accounts for monies received from the .25% local sales and use tax for housing authorized by the 2023 MN State legislature. All dollars received are to be spent on supporting and expanding efforts to maintain and support affordable housing and other housing opportunities. – This fund accounts for monies received from the local housing trust fund state match program and payments-in-Lieu under the City’s Inclusionary Housing ordinance, gifts, grants, and donations. All dollars received are to be spent on supporting and expanding efforts to maintain and support affordable housing and other housing opportunities. - This fund accumulates revenue from the sale of a book on Eden Prairie's 100-year history and the sale of old street signs. The book was donated to the City by the Eden Prairie Historical Society, with revenues earmarked for expenditure on the preservation of the history of Eden Prairie. 122 City of Eden Prairie, Minnesota Nonmajor Governmental Funds Debt service funds are used to account for all financial resources that are restricted, committed, or assigned to expenditures for principal and interest. – This fund is used to account for the accumulation of tax revenues needed to repay bonds issued to pay the construction costs for the Singletree Lane project. G.O. Bonds 10A were refunded with G.O. Bonds 20A. This fund accounts for the refunding of the G.O. Improvement Revolving Bonds which accounted for the accumulation of tax revenues needed to repay bonds issued to finance the construction at 212 and Charleston Road. G.O. Bonds 11D were refunded with G.O. Bonds 20A. This fund accounts for the refunding of the G.O. Bonds 2005C which accounted for the accumulation of tax revenues needed to repay bonds issued to finance construction projects for various trails, park improvements and the community center. G.O. Bonds 12A were refunded with G.O. Bonds 20A. This fund accounts for the refunding of the G.O. Bonds 2006B which accounted for the accumulation of tax revenues needed to repay bonds issued to finance construction projects for the new fire station. G.O. Bonds 12B were refunded with G.O. Bonds 20A. – This fund accounts for the accumulation of tax revenues needed to repay bonds issued to finance construction of the aquatics and fitness expansion. G.O. Tax abatement 2014A were refunded with G.O. Tax Abatement Bonds 21A. This fund is used to account for the accumulation of special assessments needed to repay bonds issued to finance the West 70th project. – This fund accounts for the accumulation of tax revenues needed to repay bonds issued to finance construction of the police remodel. 123 City of Eden Prairie, Minnesota Nonmajor Governmental Funds Capital project funds are used to account for all financial resources that are restricted, committed, or assigned to expenditures for capital outlay. This fund accounts for all confiscated money, and / or property obtained through drug-related criminal arrests and compliance fines. The funds are earmarked for expenditures on law enforcement operations. - This fund accounts for monies received from the State of Minnesota to be used for the E-911 emergency system. - This fund was established to account for monies received for Senior Awareness Week and EP Players, a parks and recreation department theater program. - This fund accounts for the park dedication fees, grants, and other contributions earmarked for expenditure on park acquisition and development. - This fund accounts for the accumulation of resources to be used for capital improvements and maintenance of City trails. - This fund accounts for the accumulation of resources to be used for capital improvements and maintenance of City streets. – This fund accounts for money set aside to assist in the redevelopment of the City. This fund accounts for tax increment revenue set aside to assist in the redevelopment of the City. – This fund accounts for the accumulation of resources to be used for economic development projects. –This fund accounts for tree replacement fees that are collected from permittees who have demonstrated that it is not possible or reasonable to plant all or some of the required replacement trees on site. The revenue will be used for planting of trees and natural enhancements within the City. - This fund accounts for proceeds of state aid. This revenue is used to finance street improvements. This fund accounts for the revenues collected from Comcast. These funds will be used to produce PEG Access programming. 124 City of Eden Prairie, Minnesota Nonmajor Governmental Funds – This fund accounts for the accumulation of resources to be used for Housing Improvements to the Fairway Woods II Condominiums. – This fund accounts for accumulation of resources to be used to upgrade a rural section of Dell Road between Crestwood Terrace and County Road 61. – This fund accounts for accumulation of resources to be used for street improvements and installation of city utilities in the Willow Creek Road neighborhood. Permanent funds are used to account for resources that are restricted to the extent that only earnings, and not principal, may be used for purposes that support the City’s programs that is, for the benefit of the City or its citizens. - This fund was established to account for funds dedicated for cemetery maintenance in accordance with state statutes. 125 Page 1 of 8 City of Eden Prairie, Minnesota Combining Balance Sheet Nonmajor Governmental Funds December 31, 2025 Pleasant EdenHousing &Hill Prairie Redevelopment Cemetery Cemetery Grant Recycling ASSETS Cash and Investments $5,166 $257,340 $234,144 $33,069 $132,860 Receivables Accounts - 1,975 4,450 - - Lease Receivable - - - - - Investment Interest - 1,024 921 250 735 Lease Receivable Interest - - - - - Due from Other Governments 16,032 - - 45,653 - Unremitted Taxes - - - - - Unremitted Special Assessments - - - - - Delinquent Special Assessments - - - - - Unavailable Special Assessments - - - - - Special Unavailable Special Assessments - - - - - Due from Other Funds - - - - - Prepaid Items - - - - - Lease Receivable - - - - - Land Held for Resale - - - - - Notes Receivable (net of allow for uncollectible)- - - - - Total Assets $21,198 $260,339 $239,515 $78,972 $133,595 LIABILITIES Accounts and Contracts Payable $18,782 $1,372 $88 $- $- Salaries Payable 2,416 36 36 - 1,752 Investment Interest Payable - - - - - Due to Other Governments - - - - - Due to Other Funds - - - - - Unearned Revenue - 3,150 1,075 - - Total Liabilities 21,198 4,558 1,199 - 1,752 DEFERRED INFLOWS OF RESOURCES Deferred Inflow of Resource Related to Lease Receivable - - - - - Unavailable Revenue-Special Assessments - - - - - Total Deferred Inflows of Resources - 225 2,800 - - FUND BALANCES Nonspendable - - - - - Restricted - 255,556 235,516 78,972 131,843 Assigned - - - - - Total Fund Balance - 255,556 235,516 78,972 131,843 Total Liabilities, Deferred Inflows of 126 Page 2 of 8 City of Eden Prairie, Minnesota Combining Balance Sheet Nonmajor Governmental Funds December 31, 2025 ASSETS Cash and Investments Receivables AccountsLease Receivable Investment Interest Lease Receivable InterestDue from Other Governments Unremitted Taxes Unremitted Special AssessmentsDelinquent Special Assessments Unavailable Special Assessments Special Unavailable Special Assessments Due from Other Funds Prepaid ItemsLease Receivable Land Held for Resale Notes Receivable (net of allow for uncollectible) Total Assets LIABILITIES Accounts and Contracts PayableSalaries Payable Investment Interest Payable Due to Other Governments Due to Other Funds Unearned Revenue Total Liabilities DEFERRED INFLOWS OF RESOURCES Deferred Inflow of Resource Related to Lease Receivable Unavailable Revenue-Special Assessments Total Deferred Inflows of Resources FUND BALANCES Nonspendable RestrictedAssigned Total Fund Balance Total Liabilities, Deferred Inflows of Local Affordable Affordable HistoricalOpioid Housing Housing and Settlement Aid Trust Cultural Total $201,275 $714,507 $169,102 $16,020 $1,763,483 - - - - 6,425 - - - - - 853 1,441 70 76 5,370 - - - - - - - - - 61,685 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - $202,128 $715,948 $169,172 $16,096 $1,836,963 $- $8,692 $- $1 $28,935 - - - - 4,240 - - - - - - - - 5 5 - - 150,000 - 150,000 - - - - 4,225 - 8,692 150,000 6 187,405 - - - - - - - - - - - - - - 3,025 - - - - - 202,128 707,256 19,172 16,090 1,646,533 - - - - - 202,128 707,256 19,172 16,090 1,646,533 127 Page 3 of 8 City of Eden Prairie, Minnesota Combining Balance Sheet Nonmajor Governmental Funds December 31, 2025 ASSETS Cash and Investments Receivables AccountsLease Receivable Investment Interest Lease Receivable InterestDue from Other Governments Unremitted Taxes Unremitted Special AssessmentsDelinquent Special Assessments Unavailable Special Assessments Special Unavailable Special Assessments Due from Other Funds Prepaid ItemsLease Receivable Land Held for Resale Notes Receivable (net of allow for uncollectible) Total Assets LIABILITIES Accounts and Contracts PayableSalaries Payable Investment Interest Payable Due to Other Governments Due to Other Funds Unearned Revenue Total Liabilities DEFERRED INFLOWS OF RESOURCES Deferred Inflow of Resource Related to Lease Receivable Unavailable Revenue-Special Assessments Total Deferred Inflows of Resources FUND BALANCES Nonspendable RestrictedAssigned Total Fund Balance Total Liabilities, Deferred Inflows of General General General General Obligation Obligation Obligation Obligation Improvement Refunding Refunding RefundingBonds Bonds Bonds Bonds 10A/20A 11D/20A 12A/20A 12B/20A $- $- $- $- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - $- $- $- $- $- $- $- $- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 128 Page 4 of 8 City of Eden Prairie, Minnesota Combining Balance Sheet Nonmajor Governmental Funds December 31, 2025 ASSETS Cash and Investments Receivables AccountsLease Receivable Investment Interest Lease Receivable InterestDue from Other Governments Unremitted Taxes Unremitted Special AssessmentsDelinquent Special Assessments Unavailable Special Assessments Special Unavailable Special Assessments Due from Other Funds Prepaid ItemsLease Receivable Land Held for Resale Notes Receivable (net of allow for uncollectible) Total Assets LIABILITIES Accounts and Contracts PayableSalaries Payable Investment Interest Payable Due to Other Governments Due to Other Funds Unearned Revenue Total Liabilities DEFERRED INFLOWS OF RESOURCES Deferred Inflow of Resource Related to Lease Receivable Unavailable Revenue-Special Assessments Total Deferred Inflows of Resources FUND BALANCES Nonspendable RestrictedAssigned Total Fund Balance Total Liabilities, Deferred Inflows of General Obligation General General Capital Obligation Obligation ImprovementTax Abatement Bonds Bonds Bonds 2014A/21A 2016A 2025A Total $1,677,698 $108,047 $1,099,086 $2,884,831 - - - - - - - - 4,061 328 3,555 7,944 - - - - - - - - 4,511 - - 4,511 - - - - - 44,937 - 44,937 - 634,448 - 634,448 - - - - - - - - - - - - - - - - - - - - - - - - $1,686,270 $787,760 $1,102,641 $3,576,671 $- $- $- $- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 679,385 - 679,385 - 679,385 - 679,385 - - - - 1,686,270 108,375 1,102,641 2,897,286 - - - - 1,686,270 108,375 1,102,641 2,897,286 129 Page 5 of 8 City of Eden Prairie, Minnesota Combining Balance Sheet Nonmajor Governmental Funds December 31, 2025 ASSETS Cash and Investments Receivables AccountsLease Receivable Investment Interest Lease Receivable InterestDue from Other Governments Unremitted Taxes Unremitted Special AssessmentsDelinquent Special Assessments Unavailable Special Assessments Special Unavailable Special Assessments Due from Other Funds Prepaid ItemsLease Receivable Land Held for Resale Notes Receivable (net of allow for uncollectible) Total Assets LIABILITIES Accounts and Contracts PayableSalaries Payable Investment Interest Payable Due to Other Governments Due to Other Funds Unearned Revenue Total Liabilities DEFERRED INFLOWS OF RESOURCES Deferred Inflow of Resource Related to Lease Receivable Unavailable Revenue-Special Assessments Total Deferred Inflows of Resources FUND BALANCES Nonspendable RestrictedAssigned Total Fund Balance Total Liabilities, Deferred Inflows of Senior Board Park CIP Police E-911 EP Players Improvement Trails $87,235 $216,030 $21,621 $4,588,372 $1,502,085 - - - - - - - - 7,079 - 317 1,434 88 17,649 5,226 - - - 1,069 - - 27,430 - - - - - - - - - - - - - - - - - - - - - - 15,001 - - - - - - - - - - - 32,466 - - - - - - 38,343 - - - - - - - - - - - $87,552 $277,360 $21,709 $4,652,512 $1,522,312 $1,549 $1,113 $37 $422,137 $5,418 - - - - - - - - - - - - - - - - - - - - - - - 231,018 - 1,549 1,113 37 653,155 5,418 - - - 54,375 - - - - - 15,001 - - - 54,375 15,001 - 32,466 - - - - 226,552 - 2,550,021 - 86,003 17,229 21,672 1,394,961 1,501,893 86,003 276,247 21,672 3,944,982 1,501,893 130 Page 6 of 8 City of Eden Prairie, Minnesota Combining Balance Sheet Nonmajor Governmental Funds December 31, 2025 ASSETS Cash and Investments Receivables AccountsLease Receivable Investment Interest Lease Receivable InterestDue from Other Governments Unremitted Taxes Unremitted Special AssessmentsDelinquent Special Assessments Unavailable Special Assessments Special Unavailable Special Assessments Due from Other Funds Prepaid ItemsLease Receivable Land Held for Resale Notes Receivable (net of allow for uncollectible) Total Assets LIABILITIES Accounts and Contracts PayableSalaries Payable Investment Interest Payable Due to Other Governments Due to Other Funds Unearned Revenue Total Liabilities DEFERRED INFLOWS OF RESOURCES Deferred Inflow of Resource Related to Lease Receivable Unavailable Revenue-Special Assessments Total Deferred Inflows of Resources FUND BALANCES Nonspendable RestrictedAssigned Total Fund Balance Total Liabilities, Deferred Inflows of CIPPavement Economic Tree Management Development Project HRA $924,593 $1,696,603 $5,420,825 $417,853 $484,685 1,363,260 - - - - - 82,952 - - - 6,568 11,556 23,007 1,548 1,923 - 398 - - - - - - - - - - 700 - - - - - - - - - - - - - - - - - - - - - - 150,000 - - - - - - - - - 64,005 - - - - 808,000 - - - - - 1,774,194 - - $2,294,421 $2,813,514 $7,218,026 $420,101 $486,608 $23,015 $176,924 $107 $- $- - - - 7,203 - - - - - - - - 20,028 - - - - - - - - - - - - 23,015 176,924 20,135 7,203 - - 136,742 - - - - - - - - - 136,742 - - - - - - - - 650,100 - 4,673,533 - 436,787 1,621,306 2,499,848 2,524,358 412,898 49,821 2,271,406 2,499,848 7,197,891 412,898 486,608 131 Page 7 of 8 City of Eden Prairie, Minnesota Combining Balance Sheet Nonmajor Governmental Funds December 31, 2025 ASSETS Cash and Investments Receivables AccountsLease Receivable Investment Interest Lease Receivable InterestDue from Other Governments Unremitted Taxes Unremitted Special AssessmentsDelinquent Special Assessments Unavailable Special Assessments Special Unavailable Special Assessments Due from Other Funds Prepaid ItemsLease Receivable Land Held for Resale Notes Receivable (net of allow for uncollectible) Total Assets LIABILITIES Accounts and Contracts PayableSalaries Payable Investment Interest Payable Due to Other Governments Due to Other Funds Unearned Revenue Total Liabilities DEFERRED INFLOWS OF RESOURCES Deferred Inflow of Resource Related to Lease Receivable Unavailable Revenue-Special Assessments Total Deferred Inflows of Resources FUND BALANCES Nonspendable RestrictedAssigned Total Fund Balance Total Liabilities, Deferred Inflows of HomeownersCableImprovements Dell Transportation PEG Area Road $4,256,927 $640,517 $21,241 $1,407,064 - 91,612 - - - - - - 16,866 2,601 - 6,545 - - - - 8,196 - - - - - - - 4,179 - - - 35,940 - - - 19,446 - 11,189 - 1,054,696 - - - - - - - - - - - - - - - - - - - - - - - $5,396,250 $734,730 $32,430 $1,413,609 $72,858 $- $- $7,746 - - - - - - 87 - - 50 - - - - - - - - - - 72,858 50 87 7,746 - - - - 1,110,082 - 11,189 - 1,110,082 - 11,189 - - - - - - 606,013 - - 4,213,310 128,667 21,154 1,405,863 4,213,310 734,680 21,154 1,405,863 132 Page 8 of 8 City of Eden Prairie, Minnesota Combining Balance Sheet Nonmajor Governmental Funds December 31, 2025 ASSETS Cash and Investments Receivables AccountsLease Receivable Investment Interest Lease Receivable InterestDue from Other Governments Unremitted Taxes Unremitted Special AssessmentsDelinquent Special Assessments Unavailable Special Assessments Special Unavailable Special Assessments Due from Other Funds Prepaid ItemsLease Receivable Land Held for Resale Notes Receivable (net of allow for uncollectible) Total Assets LIABILITIES Accounts and Contracts PayableSalaries Payable Investment Interest Payable Due to Other Governments Due to Other Funds Unearned Revenue Total Liabilities DEFERRED INFLOWS OF RESOURCES Deferred Inflow of Resource Related to Lease Receivable Unavailable Revenue-Special Assessments Total Deferred Inflows of Resources FUND BALANCES Nonspendable RestrictedAssigned Total Fund Balance Total Liabilities, Deferred Inflows of Total Cemetery NonmajorWillow Creek Perpetual Governmental Utilities Total Care Funds $820 $21,686,471 $274,721 $26,609,506 - 1,454,872 1,461,297 - 90,031 - 90,031 - 95,328 1,151 109,793 - 1,467 - 1,467 - 35,626 - 97,311 - 700 - 5,211 - 4,179 - 4,179 - 35,940 - 80,877 - 45,636 - 680,084 - 1,054,696 - 1,054,696 - 150,000 - 150,000 - 32,466 - 32,466 - 102,348 - 102,348 - 808,000 - 808,000 - 1,774,194 - 1,774,194 $820 $27,371,954 $275,872 $33,061,460 $- $710,904 $$739,839 - 7,203 - 11,443 317 404 - 404 - 20,078 - 20,083 - -- 150,000 - 231,018 - 235,243 317 969,607 - 1,157,012 - 191,117 - 191,117 - 1,136,272 - 1,815,657 - 1,327,389 - 2,009,799 - 32,466 221,529 253,995 - 9,143,006 54,343 13,741,168 503 15,899,486 - 15,899,486 503 25,074,958 275,872 29,894,649 133 Page 1 of 8 City of Eden Prairie, Minnesota Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2025 Pleasant Eden Housing &Hills Prairie Redevelopment Cemetery Cemetery Grant Recycling REVENUES General Property Taxes $- $- $- $- $- Special Assessments - - - - - Licenses and Permits - - - - - Intergovernmental Revenue 172,333 - - 173,587 127,543 Charges for Services - 50,640 61,400 - - Fines and Forfeits - - - - - Investment Income - 11,303 10,121 2,800 7,669 Lease Income - - - - - Rental - - - - - Other Contributions and Donations - - - - - Miscellaneous - - - - Total Revenues 172,333 61,943 71,521 176,387 135,212 EXPENDITURES Current Community Development 172,333 - - - - Police - - - 179,686 - Public Works - - - - 73,989 Parks and Recreation - 13,751 29,779 - - Capital Outlay Administration - - - - - Community Development - - - - - Public Works - - - - - Parks and Recreation - - - - - Debt Service Principal - - - - - Interest - - - - - Fiscal Agent Fees - - - - - Total Expenditures 172,333 13,751 29,779 179,686 73,989 Excess of Revenues Over (Under) Expenditures - 48,192 41,742 (3,299) 61,223 OTHER FINANCING SOURCES (USES) Issuance of Debt - - - - - Issuance of SBITA - - - - - Transfers Out - - - - (100,000) Total Other Financing Sources (Uses)- - - - (100,000) Net Change in Fund Balances - 48,192 41,742 (3,299) (38,777) Fund Balances (Deficit) - Beginning - 207,364 193,774 82,271 170,620 Fund Balances (Deficit) - Ending $- $255,556 $235,516 $78,972 $131,843 134 Page 2 of 8 City of Eden Prairie, Minnesota Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2025 REVENUES General Property Taxes Special Assessments Licenses and Permits Intergovernmental Revenue Charges for Services Fines and Forfeits Investment Income Lease Income Rental Other Contributions and Donations Miscellaneous Total Revenues EXPENDITURES Current Community Development Police Public Works Parks and Recreation Capital Outlay Administration Community Development Public Works Parks and Recreation Debt Service Principal Interest Fiscal Agent Fees Total Expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Issuance of Debt Issuance of SBITA Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances (Deficit) - Beginning Fund Balances (Deficit) - Ending Local Affordable Affordable Historical Opioid Housing Housing and Settlement Aid Trust Cultural Total $- $- $- $- $- - - - - - - - - - - - 729,801 - 3,790 1,207,054 - - - - 112,040 - - - - - 9,369 - 15,958 844 58,064 - - - - - - - - - - - - - - - - 56,554 - - 1,663 58,217 65,923 729,801 15,958 6,297 1,435,375 - 293,271 - 3,823 469,427 59,333 - - - 239,019 - - - - 73,989 - - - - 43,530 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 59,333 293,271 - 3,823 825,965 6,590 436,530 15,958 2,474 609,410 - - - - - - - - - - - - - - (100,000) - - - - (100,000) 6,590 436,530 15,958 2,474 509,410 195,538 270,726 3,214 13,616 1,137,123 $202,128 $707,256 $19,172 $16,090 $1,646,533 135 Page 3 of 8 City of Eden Prairie, Minnesota Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2025 REVENUES General Property Taxes Special Assessments Licenses and Permits Intergovernmental Revenue Charges for Services Fines and Forfeits Investment Income Lease Income Rental Other Contributions and Donations Miscellaneous Total Revenues EXPENDITURES Current Community Development Police Public Works Parks and Recreation Capital Outlay Administration Community Development Public Works Parks and Recreation Debt Service Principal Interest Fiscal Agent Fees Total Expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Issuance of Debt Issuance of SBITA Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances (Deficit) - Beginning Fund Balances (Deficit) - Ending General General General General Obligation Obligation Obligation Obligation Improvement Refunding Refunding Refunding Bonds Bonds Bonds Bonds 10A/20A 11D/20A 12A/20A 12B/20A $- $- $693,529 $357,784 79,443 107,763 - - - - - - - - - - - - - - - - - - 554 2,296 2,036 489 - - - - - - - - - - - - - - - - 79,997 110,059 695,565 358,273 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 95,000 176,000 896,000 343,000 808 1,496 7,616 2,915 242 67,490 242 242 96,050 244,986 903,858 346,157 (16,053) (134,927) (208,293) 12,116 - - - - - - - - (118,024) (488,992) (204,908) (85,738) (118,024) (488,992) (204,908) (85,738) (134,077) (623,919) (413,201) (73,622) 134,077 623,919 413,201 73,622 $- $- $- $- 136 Page 4 of 8 City of Eden Prairie, Minnesota Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2025 REVENUES General Property Taxes Special Assessments Licenses and Permits Intergovernmental Revenue Charges for Services Fines and Forfeits Investment Income Lease Income Rental Other Contributions and Donations Miscellaneous Total Revenues EXPENDITURES Current Community Development Police Public Works Parks and Recreation Capital Outlay Administration Community Development Public Works Parks and Recreation Debt Service Principal Interest Fiscal Agent Fees Total Expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Issuance of Debt Issuance of SBITA Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances (Deficit) - Beginning Fund Balances (Deficit) - Ending GeneralObligation General General Capital Obligation Obligation Improvement Tax Abatement Bonds Bonds Bonds 2014A/21A 2016A 2025A Total $1,318,019 $- $- $2,369,332 - 90,419 - 277,625 - - - - - - - - - - - - - - - - 45,114 3,630 37,099 91,218 - - - - - - - - - - - - - - - - 1,363,133 94,049 37,099 2,738,175 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 720,000 105,000 - 2,335,000 315,700 19,635 - 348,170 442 535 - 69,193 1,036,142 125,170 - 2,752,363 326,991 (31,121) 37,099 (14,188) - - 1,065,542 1,065,542 - - - - - - - (897,662) - - 1,065,542 167,880 326,991 (31,121) 1,102,641 153,692 1,359,279 139,496 - 2,743,594 $1,686,270 $108,375 $1,102,641 $2,897,286 137 Page 5 of 8 City of Eden Prairie, Minnesota Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2025 REVENUES General Property Taxes Special Assessments Licenses and Permits Intergovernmental Revenue Charges for Services Fines and Forfeits Investment Income Lease Income Rental Other Contributions and Donations Miscellaneous Total Revenues EXPENDITURES Current Community Development Police Public Works Parks and Recreation Capital Outlay Administration Community Development Public Works Parks and Recreation Debt Service Principal Interest Fiscal Agent Fees Total Expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Issuance of Debt Issuance of SBITA Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances (Deficit) - Beginning Fund Balances (Deficit) - Ending Senior Board Park CIP Police E-911 EP Players Improvement Trails $- $- $- $- $- - - - - 16,939 - - - - - - 164,578 - - - - - 1,086 1,178,875 - 4,300 - - - - 2,900 15,921 976 199,448 57,855 - - - 3,605 - - - - 8,710 - - - 2,835 40,799 - 11,453 - 6,150 26 - 18,653 180,499 11,047 1,431,463 74,794 - - - - - 9,507 262,540 - - - - - - - - - - 5,148 - - - - - - - - - - - - - - - - 52,540 - - - 782,588 - 12,153 - - - - 647 - - - - - - - - 9,507 275,340 5,148 782,588 52,540 9,146 (94,841) 5,899 648,875 22,254 - - - - - - - - - - - - (2,700) (150,000) - - - (2,700) (150,000) 300,000 9,146 (94,841) 3,199 498,875 322,254 76,857 371,088 18,473 3,446,107 1,179,639 $86,003 $276,247 $21,672 $3,944,982 $1,501,893 138 Page 6 of 8 City of Eden Prairie, Minnesota Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2025 REVENUES General Property Taxes Special Assessments Licenses and Permits Intergovernmental Revenue Charges for Services Fines and Forfeits Investment Income Lease Income Rental Other Contributions and Donations Miscellaneous Total Revenues EXPENDITURES Current Community Development Police Public Works Parks and Recreation Capital Outlay Administration Community Development Public Works Parks and Recreation Debt Service Principal Interest Fiscal Agent Fees Total Expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Issuance of Debt Issuance of SBITA Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances (Deficit) - Beginning Fund Balances (Deficit) - Ending CIP Economic Pavement Development Project Tree Management Fund Fund HRA Replacement - - 3,993,501 216,811 - - - - - - 5,434,670 - - - - 600,000 - - - - - - - - - - - - - - 76,202 129,983 256,755 17,230 21,223 - 5,979 - - - - 84,307 - - - - - - - 217,500 - - - - - 6,110,872 220,269 4,250,256 234,041 238,723 - 13,333 3,576,187 209,565 - - - - - - - - - - - - - - - - - - - - - - 476,737 - - - 5,384,570 - - - - - - - - 78,312 - - - - - - - - - - - - - - - 5,384,570 490,070 3,576,187 209,565 78,312 726,302 (269,801) 674,069 24,476 160,411 - - - - - - - - - - - (660,000) - - - 242,312 (660,000) - - - 968,614 (929,801) 674,069 24,476 160,411 1,302,792 3,429,649 6,523,822 388,422 326,197 2,271,406 2,499,848 7,197,891 412,898 486,608 139 Page 7 of 8 City of Eden Prairie, Minnesota Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2025 REVENUES General Property Taxes Special Assessments Licenses and Permits Intergovernmental Revenue Charges for Services Fines and Forfeits Investment Income Lease Income Rental Other Contributions and Donations Miscellaneous Total Revenues EXPENDITURES Current Community Development Police Public Works Parks and Recreation Capital Outlay Administration Community Development Public Works Parks and Recreation Debt Service Principal Interest Fiscal Agent Fees Total Expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Issuance of Debt Issuance of SBITA Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances (Deficit) - Beginning Fund Balances (Deficit) - Ending Homeowners Cable Improvements Dell Transportation PEG Area Road $- $- $- $- 64,856 - 42,740 - - 189,734 - - 147,087 - - - - - - - - - - - 189,737 28,611 (907) 74,545 - - - - - - - - - - - - 235,000 - - - 636,680 218,345 41,833 74,545 - - - - - - - - - - - - - - - - - 71,981 - - - - - - 447,709 - - 222,478 - - - - - 12,958 - - - 1,030 - - - - - - 447,709 85,969 - 222,478 188,971 132,376 41,833 (147,933) - 14,874 - - - - - - (468,884) - - - 248,132 14,874 - - 437,103 147,250 41,833 (147,933) 3,776,207 587,430 (20,679) 1,553,796 $4,213,310 $734,680 $21,154 $1,405,863 140 Page 8 of 8 City of Eden Prairie, Minnesota Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2025 REVENUES General Property Taxes Special Assessments Licenses and Permits Intergovernmental Revenue Charges for Services Fines and Forfeits Investment Income Lease Income Rental Other Contributions and Donations Miscellaneous Total Revenues EXPENDITURES Current Community Development Police Public Works Parks and Recreation Capital Outlay Administration Community Development Public Works Parks and Recreation Debt Service Principal Interest Fiscal Agent Fees Total Expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Issuance of Debt Issuance of SBITA Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances (Deficit) - Beginning Fund Balances (Deficit) - Ending Total Cemetery Nonmajor Willow Creek Perpetual Governmental Utilities Total Care Funds $- $4,210,312 $- $6,579,644 - 124,535 - 402,160 - 5,624,404 - 5,624,404 - 911,665 - 2,118,719 - 1,179,961 10,360 1,302,361 - 4,300 - 4,300 (3,492) 1,066,987 12,824 1,229,093 - 9,584 - 9,584 - 93,017 - 93,017 - 261,134 - 261,134 - 252,629 - 310,846 (3,492) 13,738,528 23,184 17,935,262 - 3,799,085 - 4,268,512 - 272,047 - 511,066 - - - 73,989 - 5,148 - 48,678 - 71,981 - 71,981 - 476,737 - 476,737 20,018 6,127,315 - 6,127,315 - 860,900 - 860,900 - 25,111 - 2,360,111 - 1,677 - 349,847 - - - 69,193 20,018 11,640,001 - 15,218,329 (23,510) 2,098,527 23,184 2,716,933 - - - 1,065,542 - 14,874 - 14,874 - (1,281,584) - (2,279,246) 87,000 79,618 - 147,498 63,490 2,178,145 23,184 2,864,431 (62,987) 22,896,813 252,688 27,030,218 $503 $25,074,958 $275,872 $29,894,649 141 This page is intentionally left blank 142 City of Eden Prairie, Minnesota Internal Service Funds Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis. – This fund accounts for the activities pertaining to health, life and disability insurance. This fund also accounts for the employer’s portion of pension, FICA and Medicare contributions. – This fund is to account for and finance its self-insured risk of loss for an employee dental plan. The dental plan is funded by the City, employee contributions, and investment earnings. – This fund accounts for the payment of unused personal time off for governmental fund employees. – This fund accounts for the costs associated with workers’ compensation. Revenues are primarily charges to other funds, interest earnings and insurance checks. Expenditures will consist of insurance premiums. – This fund accounts for the costs associated with the City’s property and casualty insurance program. Revenues are primarily charges to other funds and interest earnings. Expenditures will consist of insurance premiums. – This fund accounts for the costs associated with maintaining city owned buildings. Revenues are primarily charges to other funds, rental income, and interest earnings. – These funds account for the costs associated with maintaining and purchasing vehicles and equipment for the City. Revenues are primarily charges to other funds and interest earnings. – These funds account for the provision of information technology services including infrastructure and applications. Revenues are primarily charges to other funds and interest earnings. 143 City of Eden Prairie, Minnesota Internal Service FundsCombining Statement of Net Position December 31, 2025 Health &WorkersBenefitsDentalSeveranceCompensation ASSETS Current AssetsCash and Investments $2,507,829 $102,019 $1,655,260 $541,423 Receivables Accounts 23,465 3,705 - - Lease Receivable - - - - Investment Interest 12,581 414 7,140 611 Lease Receivable Interest - - - - Due From Other Governments 395,441 - - - Inventory - - - - Prepaid Items 4,132 - - 176,663 Total Current Assets 2,943,448 106,138 1,662,400 718,697 Noncurrent Assets:Lease Receivable - - - - Capital AssetsNot Being Depreciated or Amortized Work in Progress - - - - Depreciated or AmortizedProperty, Plant and Equipment - - - - IT Subscriptions - - - - Lease Asset - Building/Equipment - - - - Less Accumulated Depreciation/Amortization - - - - Total Noncurrent Assets - - - - Total Assets 2,943,448 106,138 1,662,400 718,697 DEFERRED OUTFLOWS OF RESOURCES Other Post Employment Benefits 648,118 - - 82 Total Deferred Outflows of Resources 648,118 - - 82 Total Assets and Deferred Outflows of Resources $3,591,566 $106,138 $1,662,400 $718,779 LIABILITIES Current Liabilities:Accounts Payable $31,143 $2,625 $- $- Claims Payable - 7,177 - - Salaries Payable - - 1,642 2,327 IT Subscriptions Interest Payable - - - - IT Subscriptions Liabilities - - - - Lease Interest Payable - - - - Due to Other Governments 247,573 - - - Unearned Revenue - - - - Current Other Postemployment Benefits Liability 69,956 - - - Current Lease Liability Payable - - - - Current Portion of Liabilities for Compensated Absences - - 1,372,878 - Total Current Liabilities 348,672 9,802 1,374,520 2,327 Noncurrent Liabilities: Total Other Postemployment Benefits Liability 2,384,616 - - 557 IT Subscriptions Liabilities - - - - Lease Liability Payable - - - - Liabilities for Compensated Absences - - 1,535,248 - Total Noncurrent Liabilities 2,384,616 - 1,535,248 557 Total Liabilities 2,733,288 9,802 2,909,768 2,884 DEFERRED INFLOWS OF RESOURCES Other Postemployment Benefits Liability 918,510 - - 86 Deferred Inflow of Resource Related to Lease Receivable - - - - Total Deferred Inflows of Resources 918,510 - - 86 Total Liabilities and Deferred Inflows of Resources 3,651,798 9,802 2,909,768 2,970 NET POSITIONNet Investment in Capital Assets - - - - Unrestricted (60,232) 96,336 (1,247,368) 715,809 Total Net Position (60,232) 96,336 (1,247,368) 715,809 Total Liabilities and Deferred Inflows of Resources $3,591,566 $106,138 $1,662,400 $718,779 144 City of Eden Prairie, Minnesota Internal Service FundsCombining Statement of Net Position December 31, 2025 ASSETS Current AssetsCash and InvestmentsReceivables Accounts Lease ReceivableInvestment Interest Lease Receivable Interest Due From Other GovernmentsInventoryPrepaid Items Total Current Assets Noncurrent Assets:Lease Receivable Capital AssetsNot Being Depreciated or Amortized Work in ProgressDepreciated or AmortizedProperty, Plant and Equipment IT Subscriptions Lease Asset - Building/EquipmentLess Accumulated Depreciation/Amortization Total Noncurrent Assets Total Assets DEFERRED OUTFLOWS OF RESOURCES Other Post Employment Benefits Total Deferred Outflows of Resources Total Assets and Deferred Outflows of Resources LIABILITIES Current Liabilities:Accounts PayableClaims Payable Salaries Payable IT Subscriptions Interest PayableIT Subscriptions LiabilitiesLease Interest Payable Due to Other GovernmentsUnearned RevenueCurrent Other Postemployment Benefits Liability Current Lease Liability Payable Current Portion of Liabilities for Compensated AbsencesTotal Current Liabilities Noncurrent Liabilities:Total Other Postemployment Benefits LiabilityIT Subscriptions Liabilities Lease Liability Payable Liabilities for Compensated AbsencesTotal Noncurrent Liabilities Total Liabilities DEFERRED INFLOWS OF RESOURCES Other Postemployment Benefits LiabilityDeferred Inflow of Resource Related to Lease Receivable Total Deferred Inflows of Resources Total Liabilities and Deferred Inflows of Resources NET POSITION Net Investment in Capital Assets UnrestrictedTotal Net Position Total Liabilities and Deferred Inflows of Resources Property InformationInsuranceFacilitiesFleetTechnology Total $228,285 $4,278,857 $2,340,725 $1,988,269 $13,642,667 1,000 28,086 13,698 - 69,954 - 855 - - 855 908 18,164 10,221 9,029 59,068 - 472 - - 472 - 128,580 104,486 - 628,507 - - 168,774 - 168,774 175,890 23,355 1,500 372,487 754,027 406,083 4,478,369 2,639,404 2,369,785 15,324,324 - 29,567 - - 29,567 - - 497,879 - 497,879 - 3,987,503 17,730,011 1,127,865 22,845,379 - - - 2,542,440 2,542,440 - - - 546,755 546,755 - (1,561,472) (7,875,558) (1,515,497) (10,952,527) - 2,455,598 10,352,332 2,701,563 15,509,493 406,083 6,933,967 12,991,736 5,071,348 30,833,817 82 7,227 5,810 3,456 664,775 82 7,227 5,810 3,456 664,775 $406,165 $6,941,194 $12,997,546 $5,074,804 $31,498,592 $8,564 $459,111 $170,288 $25,424 $697,155 - - - - 7,177 2,327 63,892 26,174 36,242 132,604 - - - 37,078 37,078 - - - 524,249 524,249 - - - 12,824 12,824 - 1,329 1,981 - 250,883 - 695 - - 695 - 919 1,313 548 72,736 - - - 110,304 110,304 - - - - 1,372,878 10,891 525,946 199,756 746,669 3,218,583 558 28,774 32,019 8,714 2,455,238 - - - 1,198,628 1,198,628 - - - 287,313 287,313 - - - - 1,535,248 558 28,774 32,019 1,494,655 5,476,427 11,449 554,720 231,775 2,241,324 8,695,010 86 10,559 9,816 5,543 944,600 - 26,551 - - 26,551 86 37,110 9,816 5,543 971,151 11,535 591,830 241,591 2,246,867 9,666,161 - 2,426,031 10,258,112 581,069 13,265,212 394,630 3,923,333 2,497,843 2,246,868 8,567,219 394,630 6,349,364 12,755,955 2,827,937 21,832,431 $406,165 $6,941,194 $12,997,546 $5,074,804 $31,498,592 145 City of Eden Prairie, Minnesota Internal Service Funds Combining Statement of Revenues Expenses and Changes in Net PositionFor the Year Ended December 31, 2025 Health &Workers Benefits Dental Severance Compensation OPERATING REVENUE Charges for Services $7,658,864 $343,087 $171,818 $1,847,119 Rental - - - - Lease Receivable Interest - - - - Total Operating Revenues 7,658,864 343,087 171,818 1,847,119 OPERATING EXPENSE Personnel Services 7,685,359 296,147 338,576 62,597 Supplies - - - - Contractual Services 14,309 23,054 - 1,129,078 User Charges - - - - Capital Under $25,000 - - - - Total Operating Expenses 7,699,668 319,201 338,576 1,191,675 Operating Income (Loss) Before Depreciation/Amortization (40,804) 23,886 (166,758) 655,444 Depreciation/Amortization - - - - Operating Income (Loss) Before Nonoperating Revenues (Expenses)(40,804) 23,886 (166,758) 655,444 NONOPERATING REVENUE (EXPENSE) Grants - - - - Investment Income 139,212 4,540 79,882 4,792 Lease Interest Expense - - - - Subscription Interest Expense - - - - Gain/(Loss) on Disposition of Capital Assets - - - - Miscellaneous 76,155 - - - Total Nonoperating Revenues (Expenses)215,367 4,540 79,882 4,792 Income (Loss) Before Contributions and Transfers 174,563 28,426 (86,876) 660,236 Contributions - from Governmental Activities - - - - Transfer In - - - - Change in Net Position 174,563 28,426 (86,876) 660,236 Net Position - Beginning (234,795) 67,910 (1,160,492) 55,573 146 City of Eden Prairie, Minnesota Internal Service Funds Combining Statement of Revenues Expenses and Changes in Net PositionFor the Year Ended December 31, 2025 OPERATING REVENUE Charges for ServicesRentalLease Receivable Interest Total Operating Revenues OPERATING EXPENSE Personnel Services Supplies Contractual Services User Charges Capital Under $25,000 Total Operating Expenses Operating Income (Loss) Before Depreciation/Amortization Depreciation/Amortization Operating Income (Loss) Before Nonoperating Revenues (Expenses) NONOPERATING REVENUE (EXPENSE) Grants Investment IncomeLease Interest Expense Subscription Interest ExpenseGain/(Loss) on Disposition of Capital AssetsMiscellaneous Total Nonoperating Revenues (Expenses) Income (Loss) Before Contributions and Transfers Contributions - from Governmental ActivitiesTransfer In Change in Net Position Net Position - Beginning Property Information Insurance Facilities Fleet Technology Total $1,019,001 $6,499,255 $3,431,826 $3,508,568 $24,479,538 - 13,899 - - 13,899 - 1,163 - - 1,163 1,019,001 6,514,317 3,431,826 3,508,568 24,494,600 62,959 1,505,122 667,886 925,535 11,544,181 - 464,473 853,867 2,862 1,321,202 919,040 4,220,414 215,681 1,456,240 7,977,816 - 47,825 - - 47,825 - 192,743 71,135 108,458 372,336 981,999 6,430,577 1,808,569 2,493,095 21,263,360 37,002 83,740 1,623,257 1,015,473 3,231,240 - 117,953 1,154,049 729,300 2,001,302 37,002 (34,213) 469,208 286,173 1,229,938 - - 38,109 - 38,109 10,192 203,903 117,846 100,251 660,618 - - - (14,059) - - - (61,407) - (26,928) 485,164 (5,175) 453,061 - 43,624 193,208 223 313,210 10,192 220,599 834,327 19,833 1,389,532 47,194 186,386 1,303,535 306,006 2,619,470 - - 141,427 - 141,427 - - 1,059,053 - 1,059,053 47,194 186,386 2,504,015 306,006 3,819,950 347,436 6,162,978 10,251,940 2,521,931 18,012,481 147 City of Eden Prairie, Minnesota Internal Service FundsCombining Statement of Cash FlowsFor the Year Ended December 31, 2025 Health &WorkersBenefitsDentalSeveranceCompensation CASH FLOWS FROM OPERATING ACTIVITIES Receipts From Customers $7,643,023 $340,895 $171,818 $1,847,119 Payments to Vendors (369,316) (25,857) - (1,096,073) Payments to Employees (7,702,471) (293,685) (190,690) (62,356) Other Receipts - - - - Net Cash Provided (Used) By Operating Activities (428,764) 21,353 (18,872) 688,690 CASH FLOWS FROM INVESTING ACTIVITIES Investment Income 138,657 4,462 81,005 1,747 Net Cash Provided (Used) By Investing Activities 138,657 4,462 81,005 1,747 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Grants - - - - Payments to Other Funds - - - (149,014) Transfers In - - - - Net Cash Provided (Used) By Noncapital Financing Activities 76,155 - 149,014 (149,014) CASH FLOWS FROM CAPITAL FINANCING ACTIVITES Acquisition and Construction of Capital Assets - - - - Proceeds From Sale of Equipment - - - - Principal Paid on Debt - - - - Interest and Fiscal Agent Paid on Debt - - - - Net Cash Provided (Used) By Capital Financing Activities - - - - Net Increase (Decrease) in Cash and Cash Equivalents (213,952) 25,815 211,147 541,423 Cash and Cash Equivalents, January 1 2,721,781 76,204 1,444,113 - Cash and Cash Equivalents, December 31 $2,507,829 $102,019 $1,655,260 $541,423 148 City of Eden Prairie, Minnesota Internal Service FundsCombining Statement of Cash FlowsFor the Year Ended December 31, 2025 CASH FLOWS FROM OPERATING ACTIVITIES Receipts From Customers Payments to Vendors Payments to EmployeesOther Receipts Net Cash Provided (Used) By Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES Investment IncomeNet Cash Provided (Used) By Investing Activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Grants Payments to Other Funds Transfers In Net Cash Provided (Used) By Noncapital Financing Activities CASH FLOWS FROM CAPITAL FINANCING ACTIVITES Acquisition and Construction of Capital Assets Proceeds From Sale of EquipmentPrincipal Paid on DebtInterest and Fiscal Agent Paid on Debt Net Cash Provided (Used) By Capital Financing Activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents, January 1 Cash and Cash Equivalents, December 31 Page 1 of 2 Property InformationInsuranceFacilitiesFleetTechnology Total $1,018,001 $6,493,524 $3,433,372 $3,508,782 $24,456,534 (930,296) (4,952,658) (1,277,964) (1,853,703) (10,505,867) (62,718) (1,495,729) (664,605) (921,178) (11,393,432) - 14,773 - - 14,773 24,987 59,910 1,490,803 733,901 2,572,008 10,384 207,806 124,806 100,483 669,350 10,384 207,806 124,806 100,483 669,350 - - 38,109 - 38,109 - - - - (149,014) - - 1,059,053 - 1,059,053 - 43,624 1,290,370 223 1,410,372 - - (4,076,593) (316,051) (4,392,644) - - 421,738 - 421,738 - - - (608,336) (608,336) - - - (35,680) (35,680) - - (3,654,855) (960,067) (4,614,922) 35,371 311,340 (748,876) (125,460) 36,808 192,914 3,967,517 3,089,601 2,113,729 13,605,859 $228,285 $4,278,857 $2,340,725 $1,988,269 $13,642,667 149 City of Eden Prairie, Minnesota Internal Service FundsCombining Statement of Cash FlowsFor the Year Ended December 31, 2025 Health &WorkersBenefitsDentalSeveranceCompensation RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating Income (Loss)$(40,804) $23,886 $(166,758) $655,444 Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities:Depreciation/Amortization - - - - (Increase) Decrease in Assets: Accounts Receivable (15,841) (2,192) - - Lease Receivable - - - - Due From Other Governments (374,107) - - Inventory - - - - Prepaid Items (385) - - 33,005 Other Post Employment Benefits (Deferred Outflow)99,778 - - - Increase (Decrease) in Liabilities: Accounts Payable (227,979) (2,803) - - Salaries Payable - 2,462 1,642 241 Due to Other Governments 247,464 - - - Other Postemployment Benefits Liability (19,439) - - - Other Post Employment Benefits (Deferred Inflow)(97,451) - - - Compensated Absences - - 146,244 - Net Cash Provided (Used) by Operating Activities $(428,764) $21,353 $(18,872) $688,690 Noncash Investing, Capital and Financing Activities: Contributions of Capital Assets from Governmental Activities $- $- $- $- 150 City of Eden Prairie, Minnesota Internal Service FundsCombining Statement of Cash FlowsFor the Year Ended December 31, 2025 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating Income (Loss)Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities:Depreciation/Amortization(Increase) Decrease in Assets: Accounts ReceivableLease Receivable Due From Other GovernmentsInventoryPrepaid Items Other Post Employment Benefits (Deferred Outflow)Increase (Decrease) in Liabilities: Accounts PayableSalaries PayableDue to Other Governments Other Postemployment Benefits LiabilityOther Post Employment Benefits (Deferred Inflow) Compensated Absences Net Cash Provided (Used) by Operating Activities Noncash Investing, Capital and Financing Activities: Contributions of Capital Assets from Governmental Activities Page 2 of 2 Property InformationInsuranceFacilitiesFleetTechnology Total $37,002 $(34,213) $469,208 $286,173 $1,229,938 - 117,953 1,154,049 729,300 2,001,302 (1,000) (5,731) 1,546 214 (23,004) - (289) - - (289) - - (104,486) - (478,593) - - 6,961 - 6,961 5,180 (870) - (198,029) (161,099) - 1,312 1,873 781 103,744 - (16,436) (27,598) (40,679) (88,114) (403,609) 241 9,618 3,601 4,491 22,296 - 1,265 923 - 249,652 - (256) (364) (152) (20,211) - (1,281) (1,829) (763) (101,324) - - - - 146,244 $24,987 $59,910 $1,490,803 $733,901 $2,572,008 $- $- $141,427 $- $141,427 151 This page is intentionally left blank 152 City of Eden Prairie, Minnesota Custodial Funds Custodial funds are used to account for assets held by the government as an agent for individuals, private organizations, other governments, or other funds. – This fund accounts for the collection and remittance of expenses pertaining to the fire training facility owned by 11 member cities. - This fund accounts for the collection and remittance of sewer availability charges to the Metropolitan Council Environmental Services. - This fund is used to account for evidence held by the Police Department. – The seven-county metro area has formed a Fencing Consortium to provide anti-scale fencing. The intent of the Fencing Consortium is to provide anti-scale fencing within hours around potentially impacted government buildings in response to a critical incident. The Consortium is funded by membership dues. I-494 Corridor Commission – This fund accounts for the collection and remittance of expenses pertaining to the policy work and employer and commuter outreach performed by staff of the I-494 Corridor Commission. The Commission is funded by member cities, a federal Congestion Mitigation & Air Quality grant, and a Telework state grant. 153 City of Eden Prairie, Minnesota Fiduciary Funds Statement of Fiduciary Net Position December 31, 2025 Custodial FundsWAFTAMCESEscrowFencingI-494 ASSETS Cash and Investments $430,658 7,455 75,275 153,215 168,013 834,616 Due from Other Governments - - - - 123,834 123,834 Prepaids 940 - - - 9,752 10,692 Total Assets $431,598 7,455 75,275 153,215 301,599 969,142 LIABILITIES Accounts Payable $- - 3,251 - 2,985 6,236 Due to Other Governments - 7,455 - - - 7,455 Unearned Revenue - - - - 56,319 56,319 Total Liabilities $- 7,455 3,251 - 59,304 70,010 NET POSITION Restricted For: Police Evidence Cash $- - 72,024 - - 72,024 Western Area Fire Training Costs 431,598 - - - - 431,598 Fencing Consortium Costs - - - 153,215 - 153,215 I-494 Corridior Commission Costs - - - - 242,295 242,295 $431,598 - 72,024 153,215 242,295 899,132 154 City of Eden Prairie, Minnesota Fiduciary Funds Statement of Changes in Fiduciary Net Position For the Year Ended December 31, 2025 Custodial Funds WAFTA MCES Escrow Fencing I-494 Total ADDITIONS Grants $- $- $- - 627,732 627,732 Memberships 22,000 - - 298,854 176,404 497,258 Investments Earnings 15,577 - - 7,935 13,796 37,308 Building Permits - 847,385 - - - 847,385 Other - - 17,980 - - 17,980 Total Additions 37,577 847,385 17,980 306,789 817,932 2,027,663 DEDUCTIONS Personnel Services - - - - 515,659 515,659 Supplies - - - - 39,067 39,067 Contractual Services 1,729 847,385 - 300,362 198,499 1,347,975 Total Deductions 1,729 847,385 - 300,362 753,225 1,902,701 Net Increase (Decrease) in Fiduciary Net Position 35,848 - 17,980 6,427 64,707 124,962 Net Position - Beginning 395,750 - 54,044 146,788 177,588 774,170 Net Position - Ending 431,598 - 72,024 153,215 242,295 899,132 155 This page is intentionally left blank 156 STATISTICAL SECTION 157 City of Eden Prairie, Minnesota Statistical Section (Unaudited) This part of the City of Eden Prairie’s annual comprehensive financial report presents detailed information as a context for understanding this year’s financial statements, note disclosures, and supplementary information. This information has not been audited by the independent auditor. .................................................................................................................................................... 159-164 These tables contain trend information that may assist the reader in assessing the City’s current financial performance by placing it in historical perspective. 165-168These tables contain information that may assist the reader in assessing the viability of the City’s most significant “own-source” revenue, the property tax. .......................................................................................................................................................... 169-172 These tables present information that may assist the reader in analyzing the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. ................................................................................................... 173-174 These tables offer economic and demographic indicators that are commonly used for financial analysis and that can increase one’s understanding of the City’s present and ongoing financial status. ........................................................................................................................................ 175-177 These tables contain service and infrastructure indicators that can increase one’s understanding of how the information in the City’s financial statements relates to the services the City provides and the activities it performs. Unless otherwise noted, the information in these tables is derived from the annual comprehensive financial reports for the relevant year. 158 City of Eden Prairie, Minnesota Government-wide Net Position by Category (accrual basis of accounting) Last Ten Years 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 GOVERNMENTAL ACTIVITIES Net Investment in Capital Assets $191,675,648 $195,150,960 $198,061,704 $204,564,164 $207,181,863 $209,098,130 $212,853,068 $219,430,606 $223,451,959 $227,744,512 Restricted 26,405,621 23,186,863 28,343,449 20,531,807 18,319,451 16,430,792 16,290,155 17,982,996 17,244,145 17,184,964 Unrestricted 21,694,457 29,707,881 29,069,260 33,229,904 44,514,934 59,396,843 65,028,175 66,653,801 71,929,066 84,640,557 Governmental Activities Net Position 239,775,726 248,045,704 255,474,413 258,325,875 270,016,248 284,925,765 294,171,398 304,067,403 312,625,170 329,570,033 BUSINESS-TYPE ACTIVITIES Net Investment in Capital Assets 125,479,624 121,073,703 116,820,164 114,243,631 120,560,158 114,898,693 105,257,847 103,038,198 102,799,595 100,681,558 Unrestricted 16,155,406 19,142,578 22,590,071 25,296,848 22,267,651 27,910,252 33,151,502 41,489,192 43,505,744 47,880,178 Business-Type Activities Net Position 141,635,030 140,216,281 139,410,235 139,540,479 142,827,809 142,808,945 138,409,349 144,527,390 146,305,339 148,561,736 PRIMARY GOVERNMENT Net Investment in Capital Assets 317,155,272 316,224,663 314,881,868 318,807,795 327,742,021 323,996,823 318,110,915 322,468,804 326,251,554 328,426,070 Restricted 26,405,621 23,186,863 28,343,449 20,531,807 18,319,451 16,430,792 16,290,155 17,982,996 17,244,145 17,184,964 Unrestricted 37,849,863 48,850,459 51,659,331 58,526,752 66,782,585 87,307,095 98,179,677 108,142,993 115,434,810 132,520,735 Primary Government Net Position $381,410,756 $388,261,985 $394,884,648 $397,866,354 $412,844,057 $427,734,710 $432,580,747 $448,594,793 $458,930,509 $478,131,769 159 City of Eden Prairie, Minnesota Changes in Net Position-Total (accrual basis of accounting) Last Ten Years Source 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 EXPENSES Governmental Activities $63,294,429 $60,402,652 $59,821,696 $67,623,543 $60,556,153 $61,204,663 $69,774,367 $70,960,838 $75,729,203 $75,521,827 Business-type Activities 30,170,309 28,922,085 30,324,121 30,033,843 30,124,648 33,758,571 36,179,924 35,524,608 34,687,097 34,599,239 Total Expenses 93,464,738 89,324,737 90,145,817 97,657,386 90,680,801 94,963,234 105,954,291 106,485,446 110,416,300 110,121,066 PROGRAM REVENUES Governmental Activities 18,955,697 19,086,961 23,707,803 26,795,160 26,013,884 29,841,902 29,137,248 26,825,202 27,727,378 29,580,814 Business-type Activities 29,392,647 28,144,288 30,391,136 29,543,322 33,416,255 35,519,042 36,810,235 37,908,268 35,457,725 37,265,794 Total Program Revenues 48,348,344 47,231,249 54,098,939 56,338,482 59,430,139 65,360,944 65,947,483 64,733,470 63,185,103 66,846,608 Net (Expense) Revenue (45,116,394) (42,093,488) (36,046,878) (41,318,904) (31,250,662) (29,602,290) (40,006,808) (41,751,976) (47,231,197) (43,274,458) GENERAL REVENUES AND TRANSFERS Governmental Activities 39,872,871 41,618,266 43,542,602 43,679,845 46,232,642 46,272,278 49,882,752 53,082,482 56,559,592 62,885,876 Business-type Activities (510,312) (640,952) (873,061) 620,765 (4,277) (1,779,335) (5,029,907) 213,891 694,272 (410,158) Total General Revenues and Transfers 39,362,559 40,977,314 42,669,541 44,300,610 46,228,365 44,492,943 44,852,845 53,296,373 57,253,864 62,475,718 Change in Net Position $(5,753,835) $(1,116,174) $6,622,663 $2,981,706 $14,977,703 $14,890,653 $4,846,037 $11,544,397 $10,022,667 $19,201,260 160 City of Eden Prairie, Minnesota Changes in Net Position-Governmental Activities (accrual basis of accounting) Last Ten Years SOURCES 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 EXPENSES Administration $5,003,957 $4,611,732 $5,092,886 $4,827,249 $5,554,966 $4,679,960 $5,751,886 $5,819,132 $5,490,456 $6,392,446 Community Development 5,692,215 6,222,326 4,942,029 4,771,490 4,767,416 5,198,300 5,986,996 5,762,042 6,524,721 6,856,726 Police 17,793,494 15,769,976 14,365,502 15,021,975 15,189,099 14,150,218 17,956,084 20,135,104 20,356,541 20,773,279 Fire 7,542,196 6,896,697 6,406,404 7,191,071 6,131,926 6,474,736 5,689,004 7,371,601 7,022,284 7,090,734 Public Works 11,035,229 10,616,604 10,098,667 19,518,141 14,981,533 14,706,067 16,584,584 13,711,989 17,135,064 14,311,749 Parks and Recreation 15,133,618 15,274,479 18,008,795 15,458,406 13,135,532 15,218,460 17,931,630 17,801,245 18,904,858 18,722,657 Interest on Long Term Debt 1,093,720 1,010,838 907,413 835,211 795,681 776,922 (125,817) 359,725 295,279 1,374,236 Total Expenses 63,294,429 60,402,652 59,821,696 67,623,543 60,556,153 61,204,663 69,774,367 70,960,838 75,729,203 75,521,827 PROGRAM REVENUES Charges for ServicesAdministration 1,442,068 1,173,177 1,079,151 1,052,388 982,079 1,109,882 897,992 932,607 1,084,650 860,033 Community Development 152,708 127,248 161,918 180,443 142,353 124,707 85,127 76,298 63,574 73,301 Police 1,131,502 1,039,936 1,115,447 1,103,269 847,564 989,466 1,022,601 991,422 1,505,310 1,570,331 Fire 2,315,725 2,240,351 3,505,901 3,580,095 3,609,503 4,696,599 3,948,568 3,719,560 3,487,567 3,925,701 Public Works 330,709 218,292 274,679 1,070,746 329,277 214,521 336,140 368,949 889,734 927,905 Parks and Recreation 5,513,331 6,091,247 5,854,094 6,004,835 2,445,386 5,559,244 7,052,917 6,920,145 6,235,124 6,383,559 Operating Grants and Contributions 1,614,263 1,707,453 2,457,482 2,461,663 7,376,216 6,509,714 6,798,808 3,227,456 3,954,756 3,906,924 Capital Grants and Contributions 6,455,391 6,489,257 9,259,131 11,341,721 10,281,506 10,637,769 8,995,095 10,588,765 10,506,663 11,933,060 Total Program Revenues 18,955,697 19,086,961 23,707,803 26,795,160 26,013,884 29,841,902 29,137,248 26,825,202 27,727,378 29,580,814 Net (Expense) Revenue (44,338,732) (41,315,691) (36,113,893) (40,828,383) (34,542,269) (31,362,761) (40,637,119) (44,135,636) (48,001,825) (45,941,013) GENERAL REVENUES AND TRANSFERS TaxesProperty Taxes 34,217,549 35,405,930 37,338,583 38,203,969 39,864,882 40,478,282 43,333,223 44,019,754 46,916,130 49,505,088 Tax Increment 3,357,247 3,570,703 2,320,447 1,936,046 2,193,637 2,681,357 2,750,448 2,576,991 3,447,728 3,993,501 Gain on Sale of Capital Assets - - - - - - - 167,444 462,110 641,041 Grants and Contributions Not Restrictedto Specific Programs 1,268,257 1,545,745 1,644,788 1,718,391 1,788,293 1,836,431 971,536 565,167 608,051 683,259 Investment Income 418,849 334,305 988,382 1,747,241 1,651,912 (335,188) (1,511,717) 4,004,805 4,012,276 5,506,473 Transfers 610,969 761,583 1,250,402 74,198 733,918 1,611,396 4,339,262 1,748,321 1,113,297 2,556,514 Total General Revenues and Transfers 39,872,871 41,618,266 43,542,602 43,679,845 46,232,642 46,272,278 49,882,752 53,082,482 56,559,592 62,885,876 Change in Net Position $(4,465,861) $302,575 $7,428,709 $2,851,462 $11,690,373 $14,909,517 $9,245,633 $8,946,846 $8,557,767 $16,944,863 161 City of Eden Prairie, Minnesota Changes in Net Position-Business-type Activities (accrual basis of accounting) Last Ten Years SOURCE 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 EXPENSES Water $10,526,151 $9,686,669 $10,460,599 $9,708,148 $9,481,491 $12,433,736 $13,549,136 $13,276,328 $11,973,426 $12,401,274 Wastewater 7,407,149 6,913,276 7,469,070 7,678,652 7,496,256 7,504,396 8,375,360 7,692,294 8,385,221 8,407,648 Stormwater 1,793,588 2,437,573 2,351,367 2,413,725 2,538,257 2,894,253 3,170,444 3,268,137 3,278,531 2,831,069 Liquor 10,443,421 9,884,567 10,043,085 10,233,318 10,608,644 10,926,186 11,084,984 11,287,849 11,049,919 10,959,248 Total Expenses 30,170,309 28,922,085 30,324,121 30,033,843 30,124,648 33,758,571 36,179,924 35,524,608 34,687,097 34,599,239 PROGRAM REVENUES Charges for Services Water 7,675,337 7,846,540 8,422,155 7,699,582 8,987,364 10,682,945 11,008,837 11,831,046 9,856,359 10,760,907 Wastewater 5,789,584 5,863,517 6,356,014 6,726,548 6,895,764 7,460,750 7,517,471 7,725,339 7,952,403 8,406,623 Stormwater 2,095,629 2,400,254 2,786,754 3,125,251 3,376,785 3,631,369 3,770,562 3,879,587 3,983,024 4,173,220 Liquor 10,747,887 10,501,449 10,848,725 10,977,643 11,711,560 11,923,359 12,067,226 12,069,015 11,967,286 11,800,206 Operating Grants and Contributions 155,041 238,392 20,665 69,429 117,123 68,185 107,493 45,315 44,114 244,556 Capital Grants and Contributions 2,929,169 1,294,136 1,956,823 944,869 2,327,659 1,752,434 2,338,646 2,357,966 1,654,539 1,880,282 Total Program Revenues 29,392,647 28,144,288 30,391,136 29,543,322 33,416,255 35,519,042 36,810,235 37,908,268 35,457,725 37,265,794 Net (Expense) Revenue (777,662) (777,797) 67,015 (490,521) 3,291,607 1,760,471 630,311 2,383,660 770,628 2,666,555 GENERAL REVENUES AND TRANSFERS Grants and Contributions Not Restricted - - - - - - - 117,647 34,244 - to Specific Programs Gain on Sale of Capital Assets - - - - - - - 3,563 - - Investment Income 100,657 120,631 377,341 694,963 729,641 (167,939) (690,645) 1,841,002 1,773,325 2,146,356 Transfers (610,969) (761,583) (1,250,402) (74,198) (733,918) (1,611,396) (4,339,262) (1,748,321) (1,113,297) (2,556,514) Total General Revenues and Transfers (510,312) (640,952) (873,061) 620,765 (4,277) (1,779,335) (5,029,907) 213,891 694,272 (410,158) Change in Net Position $(1,287,974) $(1,418,749) $(806,046) $130,244 $3,287,330 $(18,864) $(4,399,596) $2,597,551 $1,464,900 $2,256,397 162 City of Eden Prairie, Minnesota Fund Balances-Governmental Funds Last Ten Years 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 GENERAL FUND Nonspendable $35,792 $30,037 $103,845 $69,611 $94,824 $187,378 $180,596 $109,576 $105,900 $158,058 Restricted 286,942 - - 11,148 10,572 - - - - - Unassigned 23,171,318 22,592,160 24,438,689 25,354,724 26,197,429 29,132,535 33,252,089 33,607,091 33,716,603 34,538,075 Subtotal General Fund 23,494,052 22,622,197 24,542,534 25,435,483 26,302,825 29,319,913 33,432,685 33,716,667 33,822,503 34,696,133 General Fund % Change 2.7% (3.7%)8.5%3.6%3.4% 11.5% 14.0%0.8%0.3%2.6% ALL OTHER GOV'T FUNDS Nonspendable 250,970 250,290 227,197 221,019 227,706 266,408 298,312 276,872 213,929 253,995 Restricted 11,676,546 7,680,713 11,577,849 13,330,982 20,224,326 26,854,736 15,106,171 12,965,377 11,578,551 25,379,569 Assigned 19,799,434 25,270,027 25,215,825 24,996,835 31,958,975 34,757,827 36,717,748 43,515,281 45,692,484 49,257,370 Unassigned (5,110,657) (2,587,713) (4,512,314) (2,218,785) (3,741,963) (2,227,264) (1,458,107) (563,794) (421,313) Subtotal All Other Govt' Funds 26,616,293 30,613,317 32,508,557 36,330,051 48,669,044 59,651,707 50,664,124 56,193,736 57,063,651 74,890,934 TOTAL GOVT' FUNDS Nonspendable 286,762 280,327 331,042 290,630 322,530 453,786 478,908 386,448 319,829 412,053 Restricted 11,963,488 7,680,713 11,577,849 13,342,130 20,234,898 26,854,736 15,106,171 12,965,377 11,578,551 25,379,569 Assigned 19,799,434 25,270,027 25,215,825 24,996,835 31,958,975 34,757,827 36,717,748 43,515,281 45,692,484 49,257,370 Unassigned 18,060,661 20,004,447 19,926,375 23,135,939 22,455,466 26,905,271 31,793,982 33,043,297 33,295,290 34,538,075 Total Govt' Funds $50,110,345 $53,235,514 $57,051,091 $61,765,534 $74,971,869 $88,971,620 $84,096,809 $89,910,403 $90,886,154 $109,587,067 All Govt' Funds % Change (3.8%)6.2%7.2%8.3% 21.4% 18.7% (5.5%)6.9%1.1% 20.6% 163 City of Eden Prairie, Minnesota Changes in Fund Balances-Governmental Funds (modified accrual basis of accounting) Last Ten Years SOURCE 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 REVENUES Taxes and Special Assessments $41,169,891 $42,262,252 $42,826,126 $42,964,367 $44,264,894 $46,176,740 $46,337,423 $47,888,864 $50,901,716 $53,800,142 Licenses and Permits 6,017,523 5,810,945 7,938,046 9,054,415 8,351,257 9,207,247 8,639,380 9,857,421 10,926,477 11,185,709 Intergovernmental Revenue 2,362,417 7,787,877 2,980,678 14,691,473 10,676,031 11,176,877 13,417,354 7,687,714 6,554,660 6,153,031 Charges for Services 5,325,932 5,744,494 5,976,951 6,132,338 2,464,886 5,680,570 7,128,820 7,071,359 6,658,321 8,030,914 Fines and Forfeits 346,823 347,285 416,028 370,944 231,166 323,965 297,682 351,891 436,747 371,108 Investment Income 417,997 310,433 887,536 1,523,825 1,458,094 (279,195) (1,264,760) 3,375,808 3,462,437 4,858,679 Lease Income - - - - - - 88,712 120,119 139,879 177,345 Miscellaneous Revenue 3,249,117 2,835,760 4,853,894 4,684,221 5,166,785 2,519,176 2,113,950 1,220,399 1,896,801 1,970,283 Total Revenues 58,889,700 65,099,046 65,879,259 79,421,583 72,613,113 74,805,380 76,758,561 77,573,575 80,977,038 86,547,211 EXPENDITURES Administration 4,280,665 4,036,821 4,467,514 4,455,624 4,547,110 4,652,491 5,299,977 5,523,671 5,194,570 5,060,916 Community Development 5,536,030 6,102,434 5,143,042 4,762,403 4,975,185 5,399,337 5,822,510 5,682,164 6,330,324 6,935,803 Police 13,917,677 14,183,797 14,672,312 15,354,150 15,537,807 16,332,800 17,306,528 18,116,124 19,844,458 21,046,131 Fire 5,699,308 6,145,202 6,058,619 5,854,829 6,378,338 6,421,157 6,841,419 6,760,050 7,407,428 7,848,240 Public Works 5,929,171 6,194,054 5,997,312 6,010,535 6,090,297 6,207,912 6,640,329 6,853,256 6,630,489 6,729,325 Parks and Recreation 11,008,845 11,309,009 12,176,110 12,629,951 11,137,410 12,360,785 13,684,180 14,506,140 15,394,431 16,143,117 Capital Outlay 15,133,476 8,779,760 9,816,539 24,076,873 13,411,943 12,224,168 14,365,404 13,844,146 16,935,873 29,451,498 Miscellaneous 49,954 40,019 66,154 65,245 98,137 - - - - - Debt Service Principal 3,415,369 5,657,828 3,869,824 3,436,793 3,743,793 4,956,848 2,696,989 2,581,686 2,660,069 2,436,291 Interest 1,148,544 1,068,403 975,631 895,435 815,351 688,156 578,520 458,020 405,783 355,280 Other 66,043 23,500 16,848 10,838 64,875 137,719 8,733 5,099 494 281,218 Total Expenditures 66,185,082 63,540,827 63,259,905 77,552,676 66,800,246 69,381,373 73,244,589 74,330,356 80,803,919 96,287,819 Excess of Revenues Over (Under) Expenditures (7,295,382) 1,558,219 2,619,354 1,868,907 5,812,867 5,424,007 3,513,972 3,243,219 173,119 (9,740,608) Other Financing Sources (Uses)5,330,516 1,566,950 1,196,223 2,845,536 7,393,468 8,575,744 (8,388,783) 2,570,375 802,632 28,441,521 Net Change in Fund Balance $(1,964,866) $3,125,169 $3,815,577 $4,714,443 $13,206,335 $13,999,751 $(4,874,811) $5,813,594 $975,751 $18,700,913 Debt Service as a % of Noncapital Expenditures 8.1% 11.4%8.0%6.4%7.2%8.3%4.7%4.5%4.0%3.7% 164 City of Eden Prairie, Minnesota Assessed/Tax Capacity Value and Estimated Market Value of Property Last Ten Years Tax Tax Capacity Less: Less:Total Total Estimated Annual Payable Personal Commercial Farm &Before Fiscal Tax Assessed Direct Market % Dec. 31 Property Residential Apartments & Industrial Other Deductions Disparities Increment Value Tax Rate Value Change 2016 $1,659,596 $68,205,510 $7,667,144 $40,928,173 $45,052 $118,505,475 $15,104,618 $3,126,571 $100,274,286 $32.327 $9,633,243,700 6.1%2017 1,778,971 69,180,068 8,887,941 41,710,414 44,200 121,601,594 16,281,768 3,209,405 102,110,421 32.667 9,872,802,500 2.5% 2018 1,317,656 72,149,265 9,758,671 41,957,995 43,813 125,227,400 16,415,817 2,208,824 106,602,759 32.526 10,209,614,900 3.4% 2019 1,995,250 75,815,471 10,394,693 42,523,027 44,602 130,773,043 16,343,594 1,869,603 112,559,846 31.690 10,663,264,100 4.4% 2020 1,947,874 79,500,899 11,243,928 43,474,992 46,519 136,214,212 17,538,211 2,121,042 116,554,959 31.676 11,121,835,000 4.3% 2021 2,051,756 80,291,885 12,786,587 45,576,586 46,926 140,753,740 17,487,960 2,669,795 120,595,985 31.589 11,432,806,600 2.8%2022 1,161,844 83,981,033 13,846,793 45,217,108 47,063 144,253,841 18,644,565 2,767,772 122,841,504 32.475 11,797,011,500 3.2%2023 1,261,919 101,477,516 14,702,244 46,666,073 47,873 164,155,625 17,627,603 2,847,499 143,680,523 29.039 13,485,585,500 14.3% 2024 1,323,445 107,767,230 16,316,489 51,016,380 49,931 176,473,475 18,547,391 3,817,370 154,108,714 28.600 14,383,507,900 6.7% 2025 1,386,627 108,184,206 16,149,636 51,398,215 85,311 177,203,995 20,067,522 4,308,535 152,827,938 30.724 14,520,623,000 1.0% 2016 1.4%57.6%6.5%34.5%0.0%15.1%3.1%2017 1.5%56.9%7.3%34.3%0.0%15.9%3.1%2018 1.1%57.6%7.8%33.5%0.0%15.4%2.1% 2019 1.5%58.0%7.9%32.5%0.0%14.5%1.7% 2020 1.4%58.4%8.3%31.9%0.0%15.0%1.8% 2021 1.5%57.0%9.1%32.4%0.0%14.5%2.2% 2022 0.8%58.2%9.6%31.3%0.0%15.2%2.3%2023 0.8%61.8%9.0%28.4%0.0%12.3%2.0%2024 0.7%61.1%9.2%28.9%0.0%12.0%2.5% 2025 0.8%61.1%9.1%29.0%0.0%13.1%2.8% Source: City Assessing Department and Hennepin County Percentages Tax Capacity 165 City of Eden Prairie, Minnesota Direct and Overlapping Property Tax Rate Last Ten Years Year Total School School School Watershed Watershed Watershed Ended City HRA City Hennepin Special District District District District District District Dec. 31 Rate Rate Rate County Districts (1)#270 #272 #276 #1 #2 #4 2016 32.137 0.190 32.327 45.356 9.530 28.514 20.948 22.887 1.233 0.598 1.745 2017 32.480 0.187 32.667 44.087 9.319 25.611 21.865 22.770 1.257 0.718 1.992 2018 32.348 0.178 32.526 42.808 8.973 29.035 20.525 23.133 1.204 0.659 2.269 2019 31.521 0.169 31.690 41.861 8.550 27.022 20.756 21.209 1.164 0.527 2.204 2020 31.513 0.163 31.676 41.084 8.219 27.190 21.555 21.167 1.111 0.574 2.160 2021 31.432 0.157 31.589 38.210 7.813 26.478 21.717 20.923 1.020 0.550 1.992 2022 32.322 0.153 32.475 38.535 7.849 26.783 20.995 21.002 0.981 0.541 1.968 2023 28.904 0.135 29.039 34.542 6.944 25.006 19.243 17.720 0.935 0.480 1.757 2024 28.470 0.130 28.600 34.681 6.723 26.913 19.670 17.823 1.010 0.698 1.753 2025 30.587 0.137 30.724 37.081 7.246 25.439 20.732 19.943 1.165 0.700 1.845 Year City School School School Ended Direct District District District Dec. 31 Rate #270 #272 #27600 0 55 0 60 0 58 0 5 2016 0.0091 0.187 0.231 0.301 2017 0.0089 0.180 0.220 0.300 2018 0.0086 0.150 0.229 0.303 2019 0.0080 0.147 0.222 0.340 2020 0.0077 0.162 0.209 0.339 2021 0.0077 0.144 0.201 0.325 2022 0.0077 0.140 0.205 0.312 2023 0.0068 0.150 0.216 0.307 2024 0.0067 0.140 0.209 0.292 2025 0.0049 0.141 0.214 0.283 (1) Special Districts include Metropolitan Council, Regional Transit Board, Metropolitan Mosquito Control, County Park Museum, & Hennepin Suburban Parks Market Value Rates Overlapping RatesDirect Rates Overlapping Rates 166 City of Eden Prairie, Minnesota Principal Property Taxpayers For the Year Ended December 31, 2025 and 2016 Percentage Percentage Tax of Total Tax of Total Taxpayer Capacity Tax Capacity Taxpayer Capacity Tax Capacity UHG Headquarters $2,257,250 1.3%United Healthcare Servies Inc.$3,333,400 2.8% Arrive Eden Prairie Apartments 1,333,502 0.8%Eden Prairie Center 2,046,250 1.7% Fountain Place Apartments 1,220,002 0.7%WPT Land 2 LP 1,085,040 0.9% Paravel Apartments 1,031,875 0.6%Liberty Property Limited Partnership 909,810 0.8% Elevate Apartments 868,560 0.5%AGNL Health 833,070 0.7% Flagstone - Presbyterian Homes 845,013 0.5%PRIT Core Reality Holdings LLC 826,801 0.7% One Southwest Crossing 793,130 0.4%OSWX Property LLC 673,570 0.6% Eden Prairie Center 740,910 0.4%Lifetouch Inc.621,302 0.5% The Ellie 731,938 0.4%Gelco Corporation 555,700 0.5% Prairieview Commons 663,730 0.4%Windsor Plaza LLC 536,298 0.5% Total Principal Taxpayers 10,485,910 5.9%11,421,241 9.6% All Other Taxpayers 166,718,085 94.1%107,084,234 90.4% Total $177,203,995 100.0%$118,505,475 100.0% Source: City of Eden Prairie Assessing Department 2025 2016 167 City of Eden Prairie, Minnesota Property Tax Levies and Collections Last Ten Years Collected Within the Year Current Year Levy Collections Total Collections to Date Ended Taxes % of in Subsequent % of Dec. 31 Levied Amount Levy Years Amount Levy 2016 $34,860,874 $34,512,035 99.00%$(334,699) $34,177,336 98.04% 2017 35,911,841 35,480,742 98.80% (223,399) 35,257,343 98.18% 2018 37,349,820 37,319,709 99.92% (49,206) 37,270,503 99.79% 2019 38,478,724 38,167,003 99.19% (41,107) 38,125,896 99.08% 2020 39,821,102 39,406,040 98.96% (35,815) 39,370,225 98.87% 2021 41,214,490 40,801,607 99.00% 114,887 40,916,494 99.28% 2022 43,302,554 42,959,885 99.21% (172,868) 42,787,017 98.81% 2023 45,114,284 44,679,780 99.04% (90,383) 44,589,397 98.84% 2024 47,348,752 46,903,114 99.06%(6,011) 46,897,103 99.05% 2025 50,198,940 49,449,691 98.51% (186,740) 49,262,951 98.14% Source: Hennepin County 168 City of Eden Prairie, Minnesota Legal Debt Margin Last Ten Years 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Estimated Market Value $9,633,243,700 $9,872,802,500 $10,209,614,900 $10,663,264,100 $11,121,835,000 $11,432,806,600 $11,797,011,500 $13,485,585,500 $14,383,507,900 $14,520,623 Legal Debt Margin: Debt Limit: 3% of Market Value 288,997,311 296,184,075 306,288,447 319,897,923 333,655,050 342,984,198 353,910,345 404,567,565 431,505,237 435,619 Amount of Debt Applicable to Debt Limit:General Obligation Bonds 12,036,705 10,648,354 9,211,190 8,191,241 13,227,541 4,891,000 3,673,000 2,455,000 1,239,000 24,760,000 Tax Abatement Bonds 17,552,806 17,180,074 16,697,342 16,229,610 15,306,879 27,653,135 13,168,934 12,303,881 11,363,827 10,533,773 Deductions: Amt Available for Repayment of Bonds (1)2,303,895 2,336,132 2,296,320 2,682,004 8,730,968 14,651,101 1,407,790 1,659,490 1,707,683 1,733,134 Total Debt Applicable to Limit 27,285,616 25,492,296 23,612,212 21,738,847 19,803,452 17,893,034 15,434,144 13,099,391 10,895,144 33,560,639 Legal Debt Margin $261,711,695 $270,691,779 $282,676,235 $298,159,076 $313,851,598 $325,091,164 $338,476,201 $391,468,174 $420,610,093 $(33,125,020) As a % of Debt Limit 90.6%91.4%92.3%93.2%94.1%94.8%95.6%96.8%97.5% -7604.1% 1 - Amt Available for Repayment of Bonds only includes "Restricted Debt" of General Obligation and Tax Abatement Bonds 169 City of Eden Prairie, Minnesota Ratios of Outstanding Debt by Type Last Ten Years Special Year General Tax Total General Lease Assessments Total Total Percentage Ended Obligation Abatement Bonded Revenue Improvement Finances Lease Subscription Govt'Revenue Lease Business-of Personal Per Dec. 31 Bonds Bonds Debt Bonds Bonds Purchases Liability Liability Bonds Bonds Liability Type Total Income (1)Capita (2) 2016 $12,036,705 $17,552,806 $29,589,511 $1,145,000 $12,799,455 $286,942 $ - $- $43,820,908 $3,631,427 $ - $3,631,427 $47,452,335 1.38%751 2017 10,648,354 17,180,074 27,828,428 - 10,021,959 231,734 - - 38,082,121 3,143,967 - 3,143,967 41,226,088 1.14%653 2018 9,211,190 16,697,342 25,908,532 - 8,054,154 175,457 - - 34,138,143 2,511,507 - 2,511,507 36,649,650 1.01%575 2019 8,191,241 16,229,610 24,420,851 - 6,101,720 118,090 - - 30,640,661 6,960,748 - 6,960,748 37,601,409 1.01%593 2020 13,227,541 15,306,879 28,534,420 - 4,320,627 59,611 - - 32,914,658 6,088,767 - 6,088,767 39,003,425 1.05%612 2021 4,891,000 27,653,135 32,544,135 - 2,606,494 - - - 35,150,629 11,674,835 - 11,674,835 46,825,464 1.18%729 2022 3,673,000 13,168,934 16,841,934 - 2,110,026 418,137 98,441 - 19,468,538 11,272,267 1,314,339 12,586,606 32,055,144 0.74%500 2023 2,455,000 12,303,881 14,758,881 - 1,608,762 325,937 75,603 842,087 17,611,270 10,599,698 1,150,738 11,750,436 29,361,706 0.68%459 2024 1,239,000 11,363,827 12,602,827 - 1,107,972 233,891 51,986 677,456 14,674,132 9,882,130 970,850 10,852,980 25,527,112 0.57%395 2025 24,760,000 10,533,773 35,293,773 - 729,182 157,711 397,617 1,752,175 38,330,458 9,144,561 782,262 9,926,823 48,257,281 1.04%745 (1) See Demographic and Economic Statistics for personal income(2) See Demographic and Economic Statistics for population* Information is not available Governmental Activities ActivitiesBusiness-Type 170 City of Eden Prairie, Minnesota Ratios of General Bonded Debt Outstanding Last Ten Years Total Net Ratio of Net Year General Tax General Less Amounts General Bonded Debt Ended Obligation Abatement Bonded Available in Debt Bonded to Estimated Per Dec. 31 Debt (1)Bonds Debt Service Fund (1)Debt Market Value (2) Capita (3) 2016 $12,036,705 $17,552,806 $29,589,511 $2,303,895 $27,285,616 0.28% 432 2017 10,648,354 17,180,074 27,828,428 2,336,132 25,492,296 0.26% 404 2018 9,211,190 16,697,342 25,908,532 2,296,320 23,612,212 0.23% 371 2019 8,191,241 16,229,610 24,420,851 2,682,004 21,738,847 0.20% 343 2020 13,227,541 15,306,879 28,534,420 8,730,968 19,803,452 0.18% 311 2021 4,891,000 27,653,135 32,544,135 14,651,101 17,893,034 0.16% 279 2022 3,673,000 13,168,934 16,841,934 1,407,790 15,434,144 0.13% 241 2023 2,455,000 12,303,881 14,758,881 1,659,490 13,099,391 0.10% 205 2024 1,239,000 11,363,827 12,602,827 1,707,683 10,895,144 0.08% 169 2025 24,760,000 10,533,773 35,293,773 1,733,134 33,560,639 0.23% 518 (1) Amount Does not Include Special Assessment Improvement or Revenue Bonds. (2) See "Taxable Assessed Value and Estimated Actual Value of Property" for Market Value (3) See Demographic and Economic Statistics for Population 171 City of Eden Prairie, Minnesota Computation of Direct and Overlapping Bonded Debt December 31, 2025 Percent of Debt Net Debt Debt Applicable Applicable Governmental Unit Outstanding to City (1)to City Direct Debt: City of Eden Prairie $38,330,458 100.00%$38,330,458 Overlapping Debt: Hopkins ISD 270 $119,349,532 3.96%$4,722,940 Eden Prairie ISD 272 95,454,751 97.69%93,248,547 Minnetonka ISD 276 156,645,836 2.60%4,078,257 Hennepin County 1,210,482,117 5.82%70,441,538 Henn Suburban Park District 51,775,077 7.83%4,051,893 Henn Regional RR Authority 71,548,562 5.82%4,163,623 Metropolitan Council 462,134 2.60%11,063 Metro Transit 73,513,264 3.08%2,267,103 Total Overlapping Debt 1,779,231,273 180,717,861 Total Direct and Overlapping Debt $1,817,561,731 $219,048,319 Notes: 1- The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of the county's taxable assessed value that is within the City's boundaries and dividing it by the county's total taxable assessed value. 172 City of Eden Prairie, Minnesota Demographic and Economic Statistics Last Ten Years Per Personal Capita Median School Unemployment Year Population Income Income Age Enrollment Rate 2016 63,187 3,450,073,387$ 54,601$ 39.70 8,844 2.9% 2017 63,163 3,609,007,494 57,138 40.20 8,835 2.7% 2018 63,726 3,624,097,620 56,870 39.40 8,780 2.3% 2019 63,456 3,735,654,720 58,870 39.40 8,861 2.5% 2020 63,726 3,719,877,798 58,373 40.20 8,759 5.3% 2021 64,198 3,963,584,520 61,740 39.70 8,534 3.0% 2022 64,142 4,309,251,986 67,183 39.50 8,748 2.0% 2023 64,023 4,496,207,244 70,228 40.50 8,834 2.4% 2024 64,600 4,629,042,200 71,657 41.30 8,869 2.6% 2025 64,793 ***8,923 3.2% Sources: City of Eden Prairie Planning Department Minnesota Department of Employment and Economic Development United States Census Bureau Eden Prairie School District 272 - Enrollment History Website * Data is not available Governmental Activities 173 City of Eden Prairie, Minnesota Principal Employers For the Year Ended December 31, 2024 and 2015 Percentage Percentage of Total of Total Employer Employees City Employment Employer Employees City Employment Optum 5,100 8.8% Optum 6,375 11.2% Eden Prairie Mall 2,269 3.9%Rosemount - Emerson 1,900 3.3% CH Robinson 2,200 3.8%CH Robinson 1,706 3.0% Winnebago Industries Inc 2,100 3.6%Starkey Labs 1,700 3.0% EP Schools 1,800 3.1%EP Schools 1,580 2.8% Starkey Labs 1,500 2.6%SuperValu Stores Inc.1,200 2.1% Tennant Company 1,500 2.6% Cigna 954 1.7% MTS Systems 1,500 2.6%Eaton Corp.850 1.5% Emerson Process Management 570 1.0%MTS Systems Corp.838 1.5% Arctic Wolf 500 0.9%Kroll On-Track 808 1.4% Total Principal Employer 19,039 32.9%17,911 31.5% Other Employers 38,776 67.1%38,913 68.5% Total Employers 57,815 100.0%56,824 100.0% Source: Official Bonds Statement for G.O. Capital Improvement Bonds 2025A 2024 2015 174 City of Eden Prairie, Minnesota Employees by Function Last Ten Years 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Administration Office of City Manager 2 2 2 2 2 2 2 2 2 2 City Clerk 1 1 1 1 2 2 1 1 1 1 Human Resources 9.8 9.8 9.8 9.8 9.8 9.8 9.8 9.8 10 9.8 Communications 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 Finance 5.5 5.5 5.5 5.5 5.5 5.5 5.5 5.5 6 6 Liquor Stores 9 9 9 9 9 9 9 9 9 9 Information Technology 6 6 6 6 6 6.5 6.5 6.5 6.5 6.5 Facilities 9.88 10 10 10 10 10 10 10 10 10 Community Development Administration 2 2 2 2 2 2 2 2 2 2 Assessing 7 7 7 7 7 7 7 7 7 7 Planning 4.7 4.7 4.7 4.7 4.8 4.8 5 5 5 5 Economic Development 1 1 1 1 1 1 1 1 1 1 Housing & Community Services 1.75 1.75 1.75 2 2 2 2 2 2 2 Parks and Recreation Administration 2 2 2 2 2 2 2 2 2 2 Park Maintenance 20 20 20 20 20 20 21 21 21 21 Recreation Services 7.6 7.6 7.6 7.6 7.6 7.6 7.6 7.6 8.8 8.8 Community Center 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 Police Professional Staff 25 25 25 24 24 24 25 25 25 26 Sworn Officers 67 68 68 69 69.5 70.5 71 72 74 73 Fire Administration 9 9 9 9 9 9 11 11 11 15 Building Inspections 9 9 9 9 9 9 9 9 9 9 Public Works Engineering 10.3 10.3 7.5 7.5 7.5 7.5 7.5 7.5 7.5 4.85 Sustainability/Recycling 0 0 0 0 0 0 0 0 0 0.9 Street Maintenance 14 14 14 15 15 15 15 15 15 15 Utilities 35.7 35.7 39.5 39.5 39.5 39.5 40 39.5 39.5 41.75 Fleet Services 5 5 5 5 5 5 5 5 5 5 Grand Total 274.23 275.35 276.35 277.6 279.2 280.7 284.9 285.4 289.3 293.6 175 City of Eden Prairie, Minnesota Operating Indicators Last Ten Years 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 General Government Bond Rating - Moody's Investor Service Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Bond Rating - Standard & Poors AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA Housing and Human Services Number of Residents Served 3,500 3,750 3,975 5,700 9,200 14,300 6,105 5,050 5,873 9,102 Assessing: Number of Inspections Completed 5,066 5,061 4,908 4,912 5,267 4,842 5,195 5,116 5,432 5,678 Parks and Recreation Avg Monthly Community Center Memberships 2,511 2,688 2,608 2,486 1,683 1,346 1,744 1,954 1,979 1,888 Program Registrations (Excludes Leagues)15,701 17,161 17,972 19,931 6,022 14,848 15,877 17,643 17,659 19,037 Public Safety FireNumber of Calls 1,615 1,742 1,908 1,875 2,915 2,909 3,426 3,272 3,337 4,082 Inspection Permits Issued 5,997 6,227 6,436 6,438 7,766 8,883 7,117 6,603 6,982 7,551 Building permit revenue 2,303,405$ 2,066,787$ 3,388,529$ 3,646,332$ 3,578,799$ 4,409,481$ 3,836,375$ 3,562,908$ 3,848,929$ 4,139,774$ Police Number of Calls 50,741 46,319 52,278 50,909 40,564 42,801 43,363 45,765 45,810 44,408 Public Works: Patching Materials (Tons)2,370 1,650 1,700 1,976 1,739 1,164 1,019 1,140 633 1,387 Overlays (Tons)23,070 28,856 29,852 31,503 35,988 33,164 45,456 39,484 34,200 38,122 Crack Filling Materials (Lbs)68,000 42,000 31,920 50,007 66,175 6,340 34,570 36,432 - 18,207 Seal Coating (Sq Yards) - Chips Sealed Placed 381,600 405,425 365,907 327,998 364,854 66,892 N/A N/A N/A N/A Seal Coating (Sq Yards) - Fog Seal/Reclamite Placed n/a n/a n/a 276,296 470,020 602,335 502,598 259,820 237,681 294,818 Water System: Number of Connections 19,362 19,426 19,426 19,426 19,541 19,526 19,568 19,598 19,565 20,804 Water Main Repairs 53 30 18 24 33 24 27 36 25 30 Number of Hydrant Flushed 4,515 4,360 4,395 4,274 - 4,273 4,470 4,476 4,496 4,528 Average Daily Usage 7.07 MGD 7.06 MGD 7.08 MG 6.25 MG 6.95 MG 7.72 MG 7.4 MG 7.6 MGD 6.3 MGD 6.6 MGDSewer System: Number of Connections 18,707 18,865 18,925 18,955 19,016 19,022 19,072 19,096 19,108 19,758 Miles of Sanitary Sewer Cleaned 81 76 65 50 10 51 65 86 85 88 Storm System: Number of Storm Sumps Maintained 91 88 97 48 40 60 52 143 128 112 Sources: Various City Departments MGD - Million Gallons Daily N/A - Not Available 176 City of Eden Prairie, Minnesota Capital Assets Statistics by Function Last Ten Years 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Public Safety Fire Protection Number of Stations 4 4 4 4 4 4 4 4 4 4 Number of Volunteer Firefighters 99 101 95 92 94 93 95 92 91 92 Police Protection Number of Stations 1 1 1 1 1 1 1 1 1 1 Public Works Miles of City Streets 234 234 235 235 235 236 235 235 236 236 Parks and Recreation City Parks 43 43 43 43 43 43 43 43 43 43 Conservation Areas 15 15 15 15 15 15 15 15 15 15 Historic Sites 5 5 5 5 5 5 5 5 5 5 Special Use Areas 5 5 5 5 5 5 5 5 5 5 Miles of Trails 128 134 134 134.5 134.5 134.5 134.5 134.5 228 228 Water System Number of Wells 15 15 15 15 15 15 15 15 16 16 Total Pumping Capacity 28 MGD 28 MGD 28 MGD 28 MGD 28 MGD 28 MGD 28 MGD 28 MGD 28 MGD 28 MGD Total Storage Capacity 8.5 MG 8.5 MG 8.5 MG 8.5 MG 12.5 MG 12.5 MG 12.5 MG 12.5 MG 12.5 MG 12.5 MG Miles of Water Mains 328 326 326 327 326 322 399 408 418 419 Sewer System Miles of Sanitary Sewer 264 263 263 264 265 262 262 334 342 343 Miles of Storm Sewer 193 193 193 195 198 200 209 207 209 211 Sources: Various City Departments Note: No Capital Asset Indicators are Available for the General Government Functions. MGD - Million Gallons Daily Miles of Trails - The increase is a result of now using GIS to calculate the mileage. 177 77 City of Eden Prairie Hennepin County, Minnesota Independent Auditor's Reports December 31, 2025 City of Eden Prairie 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 Legal Compliance and Internal Control 4 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 Eden Prairie Eden Prairie, 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 Eden Prairie, Minnesota, as of and for the year ended December 31, 2025, and the related notes to the basic financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated April 27, 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. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 2 2 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. 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. St. Cloud, Minnesota April 27, 2026 3 3 Minnesota Legal Compliance Independent Auditor's Report Honorable Mayor and Members of the City Council City of Eden Prairie Eden Prairie, 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 Eden Prairie, 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 April 27, 2026. 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, claims and disbursements, miscellaneous provisions, and tax increment financing sections 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. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City's noncompliance with the above referenced provisions, insofar as they relate to accounting matters. 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. St. Cloud, Minnesota April 27, 2026 4 City of Eden Prairie Schedule of Findings and Responses on Internal Control PRIOR YEAR CORRECTED INTERNAL CONTROL FINDING: Material Weakness: Audit Finding 2024-001 – Material Audit Adjustment During the course of our engagement, we proposed a material audit adjustment 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, an audit adjustment was required to adjust expenditures and accounts payable. Corrective Action: No material misstatements were identified for the year ended December 31, 2025. City of Eden Prairie Communications Letter December 31, 2025 City of Eden Prairie Table of Contents Report on Matters Identified as a Result of the Audit of the Basic Financial Statements 1 Required Communication 3 Financial Analysis 8 Emerging Issues 22 1 Report on Matters Identified as a Result of the Audit of the Basic Financial Statements Honorable Mayor, Members of the City Council, and Management City of Eden Prairie Eden Prairie, Minnesota In planning and performing our audit of the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Eden Prairie, Minnesota, as of and for the year ended December 31, 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. 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. We did not identify any deficiencies in internal control that we consider to be material weaknesses. 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 April 27, 2026, on such statements. 2 The purpose of this communication, which is an integral part of our audit, is to describe for 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. St. Cloud, Minnesota April 27, 2026 3 City of Eden Prairie Required Communication 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. 4 City of Eden Prairie Required Communication 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: • 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 operations. In addition, complexities exist surrounding the calculation and recording of various revenue sources. • Management Override of Controls through Journal Entries • Management override of internal control is considered a risk in substantially all engagements as management may be incentivized to produce better results. • Lack of Segregation of Accounting Duties • If duties cannot be appropriately segregated within the accounting and finance department, there is a risk of unauthorized payments being made from the City. • Significant Estimates – Depreciation, Net Pension Liability, Total Other Post Employment Benefits (OPEB) Liability, Deferred Outflows of Resources Related to Pensions and OPEB, Deferred Inflows of Resources Related to Pensions and OPEB, Lease Liability and Right-to-Use Lease Assets, and Subscription Liability and Right-to-Use Subscription Assets • Accounting estimates are an integral part of the basic financial statements prepared by management and are based on management's current judgements. 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. 5 City of Eden Prairie Required Communication 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: Depreciation – The City is currently depreciating its capital assets over their estimated useful lives, as determined by management, using the straight-line method. 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 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. 6 City of Eden Prairie Required Communication 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. 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. 7 City of Eden Prairie Required Communication Other Information Included in Annual Reports (Continued) 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. We were not engaged to report on the other information accompanying the basic financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. 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. 8 City of Eden Prairie Financial Analysis The following pages provide graphic representations 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 of past performance and how implementing certain changes may enhance future performance. We suggest you view each graph and document if our analysis is consistent with yours. A subsequent discussion of this information should be useful for planning purposes. General Fund – Revenues The following graph presents comparisons of revenues by type, illustrating the majority of revenue for the City is from taxes and special assessments. This source represents 72.8% of total General Fund revenues. Other revenues include items such as fines and forfeitures, investment earnings, and other miscellaneous items. Revenues of the General Fund increased from 2024 to 2025 by $3,849,787. Taxes and assessments revenue increased by $2,395,074 due to an increase in levy. Intergovernmental revenue increased $461,724 due to an increase in police and fire pension aids along with additional state grants. Charges for Services increased $558,262 due in part to increased revenue for supplemental employment and community center rentals. 2021 2022 2023 2024 2025 Taxes and Special Assessments $37,836,186 $39,727,253 $41,425,978 $43,975,429 $46,370,503 Intergovernmental 5,353,219 5,345,840 1,822,526 2,447,428 2,909,152 Charges for Services 4,156,921 5,201,248 5,817,974 6,170,291 6,728,553 Licenses and Permits 5,858,459 5,303,467 5,054,344 5,281,350 5,561,305 Other 559,484 59,499 1,781,626 1,963,718 2,118,490 $- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 9 City of Eden Prairie Financial Analysis General Fund – Expenditures The graph below represents the breakdown of expenditures by department. Police expenditures continue to comprise the largest portion of General Fund expenditures, representing 34.9%. Overall, General Fund expenditures increased $2,156,752 from 2024. Police and Fire had increases of $983,872 and $517,945, respectively, mainly due to an increase in wages and benefits. Parks and Recreation increased $740,010 due in part to increases in facility user charges and wages. Other department expenditures had relatively minor fluctuations when compared to the prior year. 2021 2022 2023 2024 2025 Debt Service $60,766 $20,662 $102,275 $99,789 $81,613 Parks and Recreation 12,343,285 13,635,118 14,440,321 15,354,429 16,094,439 Public Works 6,026,323 6,562,592 6,792,740 6,565,994 6,655,336 Fire 6,421,157 6,841,419 6,760,050 7,330,295 7,848,240 Police 16,145,234 17,032,495 17,854,145 19,551,193 20,535,065 Community Development 2,304,990 2,412,940 2,561,689 2,651,093 2,667,291 Administration 4,652,491 4,880,588 4,890,058 5,181,572 5,009,133 $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 $50,000,000 $55,000,000 $60,000,000 10 City of Eden Prairie Financial Analysis General Fund – Budgetary Comparison Actual Revenues General property taxes and assessments 46,264,072$ $46,370,503 106,431$ Licenses and permits 4,159,200 5,561,305 1,402,105 Intergovernmental revenue 1,885,585 2,909,152 1,023,567 Charges for services 6,090,637 6,728,553 637,916 Fines and forfeitures 350,000 366,808 16,808 Investments 50,000 1,387,077 1,337,077 Miscellaneous revenues 157,325 364,605 207,280 Total revenues 58,956,819 63,688,003 4,731,184 Expenditures Administration 5,356,825 5,009,133 (347,692) Community development 2,828,732 2,667,291 (161,441) Police 20,500,197 20,535,065 34,868 Fire 8,067,386 7,848,240 (219,146) Public works 7,051,708 6,655,336 (396,372) Parks and recreation 16,091,087 16,094,439 3,352 Debt service 81,613 81,613 - Total expenditures 59,977,548 58,891,117 (1,086,431) Excess of revenues over (under) disbursements (1,020,729) 4,796,886 5,817,615 Other Financing Sources (Uses) Transfers in 470,729 470,729 - Transfers out - (4,393,985) (4,393,985) Total other financing sources (uses)470,729 (3,923,256) (4,393,985) Net change in fund balances (550,000)$ 873,630$ 1,423,630$ Variance With Final Budget - Over (Under)Final Budget Overall, actual revenue was $4,731,184, or 8.0%, over budget. Licenses and permits were $1,402,105 over budget due to budgeting conservatively for permits, specifically building permits, street permits, and mechanical permits. Revenue from investments was $1,337,077 over budget due to stronger than anticipated investment performance. Intergovernmental revenue was $1,023,567 above budget due to higher than anticipated police and fire aids along with other state grant funding. Charges for services was over budget $637,916 due to conservative budgeting as well. Overall, actual expenditures were less than budgeted amounts by $1,086,431, or 1.8%. Public works expenditures were under budget $396,372 due to less engineering and maintenance costs than anticipated. Administration expenditures were under budget $347,692 due in part to benefits and trainings costs being lower than anticipated. All other functions had relatively minor variances compared to the budgeted amounts. 11 City of Eden Prairie Financial Analysis General Fund – Operations The following graph shows the overall operations of the General Fund. Revenues have increased over each of the five years shown with a high in 2025 of $63,688,003. Overall, from 2021 to 2025, revenues have increased $9,923,734. Similarly, expenditures have fluctuated over the five years presented. In 2025, expenditures were $58,891,117, an increase from the prior year of $2,156,752. Since 2021, expenditures have increased $10,936,871. $53,764,269 $55,637,307 $55,902,448 $59,838,216 $63,688,003 $47,954,246 $51,385,814 $53,401,278 $56,734,365 $58,891,117 $30,550,473 $34,885,681 $35,561,962 $36,752,110 $37,057,113 $29,132,535 $33,252,089 $33,607,091 $33,716,603 $34,538,075 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 $50,000,000 $55,000,000 $60,000,000 $65,000,000 2021 2022 2023 2024 2025 Total Revenues Total Expenditures Cash and Investment Balance Unassigned Fund Balance As illustrated above, the General Fund unassigned fund balance increased $821,472 from $33,716,603 at December 31, 2024, to $34,538,075 at December 31, 2025. Over the last five years, the City has been able to maintain steady cash and fund balances in a period of generally increasing costs and variable revenues. The City's fund balance policy indicates they will strive to maintain a minimum working capital fund balance not less than 50% of next year's budgeted tax revenue, an emergency fund balance for contingencies of 10% of next year's budget and a budget balancing measure of 5% to 7% of next year's budget in unassigned fund balance. As of December 31, 2025, the City's unassigned fund balance of $34,538,075 was in compliance with the City's fund balance policy. 12 City of Eden Prairie Financial Analysis Water Operations The following graph illustrates the current operations of the Water Fund for the past five years. Operating income is shown with and without depreciation below. Operating revenue increased $904,548, or 9.2%, from 2024 based on increased rates and consumption. Operating expenses increased by $440,997 or 3.8%. The increase is mainly due to increases in wages along with chemical and supply costs. The net effect of the increased revenues and increased expenses is an operating loss of $1,376,662. This was a decrease in loss of $463,551 compared to the operating loss 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 similarly to a business. Therefore, it is expected the enterprise fund will at least be able to meet its obligations currently and into the future. 2021 2022 2023 2024 2025 Operating Revenues $10,682,945 $11,008,837 $11,831,046 $9,856,359 $10,760,907 Operating Expenses 12,178,395 13,279,553 13,036,724 11,696,572 12,137,569 Operating Loss with Depreciation (1,495,450)(2,270,716)(1,205,678)(1,840,213)(1,376,662) Depreciation 2,957,215 2,948,104 3,065,370 3,092,020 3,200,759 Operating Income withoutDepreciation 1,461,765 677,388 1,859,692 1,251,807 1,824,097 Change in Net Position (1,326,229)(1,637,884)528,765 (288,150)582,077 $(3,000,000) $- $3,000,000 $6,000,000 $9,000,000 $12,000,000 $15,000,000 13 City of Eden Prairie Financial Analysis Water Fund 2021 2022 2023 2024 2025 Cash and Investments $21,181,148 $21,853,794 $20,467,342 $19,339,937 $20,126,114 Unrestricted Net Position 8,961,105 14,332,945 19,374,894 18,755,128 19,823,856 $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 The above graph shows the cash and investment and unrestricted net position balances as of December 31, for the last five years. The Water Fund cash and investment balance has decreased $1,055,034 since 2021. The cash and investment balance increased $786,177 during 2025 while the unrestricted net position for the Water Fund increased $1,068,728 during the same time period. 14 City of Eden Prairie Financial Analysis Wastewater Operations The following graph illustrates the current operations of the Wastewater Fund for the past five years. Operating income is shown with and without depreciation below. The Wastewater Fund has shown operating income for the second time in the five years presented. In 2025, the Fund showed an operating income of $55,120. This is an increase of $375,525 in the operating income compared to 2024. The Fund experienced an increase in operating revenue of $454,220 based on rates and consumption, while wastewater expenses increased $78,695. 2021 2022 2023 2024 2025 Operating Revenues $7,460,750 $7,517,471 $7,725,339 $7,952,403 $8,406,623 Operating Expenses 7,479,832 8,358,676 7,670,453 8,272,808 8,351,503 Operating Income (Loss) withDepreciation (19,082)(841,205)54,886 (320,405)55,120 Depreciation 1,677,036 1,663,532 1,377,115 1,387,673 1,447,999 Operating Income without Depreciation 1,657,954 822,327 1,432,001 1,067,268 1,503,119 Change in Net Position 218,394 (799,216)932,972 519,719 (12,653) $(2,000,000) $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 15 City of Eden Prairie Financial Analysis Wastewater Fund 2021 2022 2023 2024 2025 Cash and Investments $8,761,588 $9,476,152 $11,417,839 $11,946,080 $12,756,497 Unrestricted Net Position 10,347,930 11,137,661 13,164,168 13,868,990 14,740,284 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 The graph above shows the cash and investment and unrestricted net position balances as of December 31, for the last five years. The Wastewater Fund cash and investment balance has increased $3,994,909 since 2021. In 2025, the Wastewater Fund cash and investment balance increased $810,417 while the unrestricted net position increased $871,294. 16 City of Eden Prairie Financial Analysis Stormwater Operations The following graph illustrates the current operations of the Stormwater Fund for the past five years. Operating revenue increased $190,196 due to increased rates while expenses decreased $463,752 compared to 2024 based on project-related expenses. The net effect of the changes in revenues and expenses was operating income of $1,388,898. 2021 2022 2023 2024 2025 Operating Revenues $3,631,369 $3,770,562 $3,879,587 $3,983,024 $4,173,220 Operating Expenses 2,876,223 3,151,291 3,229,604 3,248,074 2,784,322 Operating Income (Loss) with Depreciation 755,146 619,271 649,983 734,950 1,388,898 Depreciation 1,187,156 1,148,498 1,042,310 1,025,527 1,032,661 Operating Income without Depreciation 1,942,302 1,767,769 1,692,293 1,760,477 2,421,559 Change in Net Position 955,680 (2,059,317)1,093,167 1,019,382 1,599,089 $(3,000,000) $(2,000,000) $(1,000,000) $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 17 City of Eden Prairie Financial Analysis Stormwater Fund 2021 2022 2023 2024 2025 Cash and Investments $6,488,795 $5,335,984 $6,533,094 $8,174,219 $10,488,034 Unrestricted Net Position 6,858,202 5,767,989 6,925,348 8,589,966 11,109,763 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 As of December 31, 2025, the Stormwater Fund had an ending net cash and investment balance of $10,488,034. This is an increase of $2,313,815 compared to 2024. Unrestricted net position at year- end was $11,109,763 and also increased $2,519,797 compared to the prior year. 18 City of Eden Prairie Financial Analysis Liquor Operations The City's liquor store reported a decrease in sales and operating revenue from 2024 to 2025 of $167,080, a decrease of 1.4%. Cost of sales decreased by 3.2%. Operating expenses in the Liquor Fund, including depreciation, increased compared to the prior year by $164,160. The City's gross profit percentage increased from 2024 to 2025. The City's gross profit percentage is higher than 2 of the 3 metro stores presented below. Even though sales decreased in 2025, the City's gross profit percentage increased from 30.5% in 2024 to 31.8% in 2025. 2021 2022 2023 2024 2025 Sales and Operating Revenue $11,923,359 $12,067,226 $12,069,015 $11,967,286 $11,800,206 Cost of Sales 8,371,936 8,450,887 8,470,531 8,314,546 8,050,401 Gross Profit 3,551,423 3,616,339 3,598,484 3,652,740 3,749,805 Operating Expenses 2,545,548 2,591,577 2,786,634 2,689,336 2,853,496 Operating Income 1,005,875 1,024,762 811,850 963,404 896,309 Depreciation 38,021 232,829 232,829 232,817 239,350 Operating Income without Depreciation 1,043,896 1,257,591 1,044,679 1,196,221 1,135,659 Change in Net Position 201,216 139,124 97,535 307,265 290,955 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 Liquor Operations 19 City of Eden Prairie Financial Analysis Liquor Operations (Continued) 2025 2024 City of City of City of City of City of Eden Prairie** Eden Prairie** Edina* Richfield* Savage* Sales and operating revenue 11,800,206$ 11,967,286$ 12,641,168$ 14,024,984$ 6,989,478$ Costs of sales 8,050,401 8,314,546 8,431,072 9,920,096 5,072,494 Gross profit 3,749,805 3,652,740 4,210,096 4,104,888 1,916,984 Operating expenses 2,853,496 2,689,336 3,976,001 2,769,762 1,561,298 Operating income 896,309 963,404 234,095 1,335,126 355,686 Gross profit percentage 31.8%30.5%33.3%29.3%27.4% * 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. 20 City of Eden Prairie Financial Analysis Liquor Fund 2021 2022 2023 2024 2025 Cash and Investments $2,626,281 $2,618,889 $2,740,202 $2,816,359 $2,975,482 Unrestricted Net Position 2,102,879 2,315,074 2,481,837 2,842,031 2,959,717 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 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 increased $349,201 since 2021. In 2025, the Liquor Fund cash and investment balance increased $159,123 while the unrestricted net position increased $117,686. The information above includes building lease activity which should be considered when evaluating fund performance. 21 City of Eden Prairie Financial Analysis Tax Levy, Capacity, And Rates The graph below presents information relating to the City's tax levy, tax capacity and rates. The levy for 2025 includes the General Fund levy of $47,177,624 plus a levy for the Debt Service of $2,401,316 and Capital Project Funds totaling $400,000. As illustrated below, the taxable tax capacity of the City has fluctuated over the last five years. While the City has increased the levy during this period, the tax capacity rate has fluctuated because of changes in market value and tax capacity. $120,595,985 $122,841,504 $143,680,523 $154,108,714 $152,827,938 $41,014,490 $43,102,554 $44,909,284 $47,138,752 $49,978,940 31.43 32.32 28.90 28.47 30.59 - 25.00 50.00 75.00 100.00 $- $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 $160,000,000 $180,000,000 2021 2022 2023 2024 2025 Tax Capacity Certified Tax Levy Tax Capacity Rate City of Eden Prairie Emerging Issues 22 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. City of Eden Prairie Emerging Issues 23 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. City of Eden Prairie Emerging Issues 24 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.