District Financial Information
Edina's Strong Financial Management
Edina Public Schools has a history of strong financial management and fiscal stewardship.
Aaa Credit Rating from Moody’s
According to Moody’s Investor Services, the district is one of three in Minnesota to achieve a Aaa Credit Rating, which allows the district to obtain the lowest available interest rates when borrowing funds. Reasons cited by Moody's for the high credit rating include a mature tax base, sound financial operations, solid reserves, and a manageable debt burden, even with the potential of additional borrowing as the result of a successful bond referendum.
Financial Reporting Award
For the 12th time, the district has received the Minnesota Department of Education’s School Finance Award, which recognizes school districts for timely and accurate reporting of audited financial data.
Unqualified “Clean” Financial Audit
District financial auditors, Malloy, Montague, Karnowski, Radosevich & Co, P.A. (MMKR), issued a clean opinion on 2015-16 financial statements, internal controls and compliance reports. The auditors noted that the district’s fiscal health is good, showing strong financial stewardship of taxpayer dollars. In addition to the general fund, the audit also showed positive fund balances for the food service and community education funds.
Strong Financial Reserves
The district recognizes that maintaining adequate fund balance reserves is critical to being fiscally responsible and ensures the district’s long-term ability to meet its financial obligations in order to provide appropriate educational services and programs to all. To that end, District Policy 702, which is in alignment with the Governmental Accounting Standards Board Statement 54, says that the district will strive to maintain a minimum unassigned general fund balance of six percent of the annual budget plus two percent for cash flow. The fund balance is used for the purposes of cash flow, legislative shortfalls, innovation, tax abatement, and catastrophic needs. Fund balance reserves are not intended to be used for ongoing personnel or operational expenditures. The District’s unassigned fund balance (i.e. available for general operating expenses) is 8.3 percent for fiscal year ended June 30, 2016.
Low debt usage
According to the district’s April 2017 Bond Issue Summary for the General Obligation Facilities Maintenance and School Building Bond, Series 2017A, the district’s debt ratio compared to allowable debt limits under state statute is significantly lower than allowable under law. Debt limits are set at 15 percent of a district's actual market value.
- The district currently utilizes 12.5 percent of its existing statutory debt allowance