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2016 City of Hopkins, MN Budget City of Hopkins, Minnesota Annual Budget January 1 - December 31, 2016 Inspire Educate Involve Communicate City of Hopkins 1010 First St S Hopkins, MN 55343 952-935-8474 www.hopkinsmn.com CITY OF HOPKINS BUDGET FISCAL YEAR BEGINNING JANUARY 1, 2016 City Council Term Expires Mayor Molly Cummings ................................................................................ December 31, 2017 Councilmember Katy Campbell .................................................................... December 31, 2017 Councilmember Jason Gadd .......................................................................... December 31, 2019 Councilmember Kristi Halverson ................................................................. December 31, 2017 Councilmember Aaron Kuznia ...................................................................... December 31, 2019 Management Team Mike Mornson ......................................................................................................... City Manager Kersten Elverum ............................................................... Director of Planning & Development Jim Genellie .............................................................................. Director of Community Services Christine Harkess........................................................................................... Director of Finance Dave Johnson ................................................................................................. Recreation Director Mike Reynolds ............................................................................................................. Police Chief Dale Specken................................................................................................................... Fire Chief Steve Stadler ......................................................................................... Director of Public Works This document was developed and compiled by the Finance Department, City of Hopkins CITY OF HOPKINS TABLE OF CONTENTS Introduction/Background City Manager’s Budget Message .................................................................................. 4 Distinguished Budget Presentation Award ................................................................... 8 Organization Chart ....................................................................................................... 9 Community Profile ...................................................................................................... 10 Organization Structure ................................................................................................ 13 Organization Mission Statement, Vision & Goals ....................................................... 14 Financial Management and Policies ........................................................................... 16 Budget Calendar ......................................................................................................... 19 Budget Planning Process ........................................................................................... 21 Fund Structure ............................................................................................................ 22 Budget Overview Authorized and Approved Staffing Levels .................................................................. 26 2016 Summary Budget Information by Major and Non-Major Funds ......................... 28 2016 Budget Summary – All Funds ............................................................................ 29 2016 Revenue Summary – All Funds ......................................................................... 31 2016 Appropriation Summary – All Funds .................................................................. 35 Property Tax Information ............................................................................................ 38 Fund Balance ............................................................................................................. 42 Debt Overview ............................................................................................................ 46 Capital Improvements Overview ................................................................................. 50 General Fund Budget Projection ................................................................................ 56 Other Major Funds Budget Projections ...................................................................... 60 General Fund ................................................................................................................. 64 Special Revenue Funds ................................................................................................ 111 Internal Service Fund .................................................................................................... 138 Enterprise Funds ........................................................................................................... 140 General Debt Service Funds ......................................................................................... 152 Glossary ........................................................................................................................ 153 City of Hopkins 1010 First Street South Hopkins, MN 55343-7573 Phone: 952-935-8574 Fax: 952-935-1834 Web address: www.hopkinsmn.com January 2016 Citizens, Honorable Mayor, City Council City of Hopkins Hopkins, Minnesota 55343 Dear Citizens, Mayor and Council Members: It is my pleasure to present to you the City of Hopkins 2016 Budget. Hopkins’ strong financial position and proactive fiscal management practices allowed options for the City Council to maintain a service delivery at current levels while minimizing the impact on the 2016 tax levy. The final result is an adopted 2016 budget totaling $25,803,425 of which $11,875,730 is the General Fund. This budget lives within the City’s financial resources, meets basic service needs, provides for the maintenance and replacement of the City’s infrastructure, and plans for the future, keeping Hopkins’ good financial condition intact. The Municipal Budget is intended to reflect the goals, objectives, and priorities established by the City Council with input from the residents and taxpayers of Hopkins, and fairly represent the revenues and expenditures necessary to provide the services and programs desired by the community. The city governing body involves its’ citizens and constituents through its mission and vision statement “Inspire • Educate • Involve • Communicate” by: conducting a citizen’s academy, providing a state of the city address, publishing a city annual report, and communicating with the community as often as possible regarding many city initiatives and proposed polices. The budget adoption is a significant way in which the City Council expresses their leadership. The City Council establishes budget goals, which are accurately reflected in this budget. 2016 BUDGET DEVELOPMENT The City has developed a number of elements that have been brought together to provide the best information for the Council to make their budget decisions. These elements include the following: Strategic Planning Process – The Council has a mission and vision statement, which helps determine the priorities of the community and direct the council in providing services for its constituency. As part of the process annual goals and objectives are set. Program Budgeting – This provides more information in regards to what programs departments provide and what is the individual cost of those programs. This accomplishes the objective of reviewing revenues and expenditures based on program activity. Four Year Budget Modeling – Encourages future planning for the General Fund budget and allows us a preview at projected property tax levy needs over the next four years. Cash Flow Models – Cash flow projections are created for all funds to provide us with a view of future sources and uses within the various funds and for the City as a whole. This assists in long range planning and goal setting. Net Property Tax Cost for Sample Properties – Developed many years ago, this provides information to the council incorporating expected increases in valuation and projecting actual costs on sample properties within the City. Net Tax Cost by Program – This provides both a dollar and percentage of property tax support for programs. each of the City’s general fund City of Hopkins Mission Statement Inspire Educate Involve Communicate 4 CITY OF HOPKINS HOPKINS IN 2015 In the year 2015, the nation’s economy continued to recover after several years of minimal growth. The governmental environment was to maintain staff and minimize budget increases. The city continued to provide all core services through 2015. Program budgeting has helped in our analysis of city services, while we look at ways to continue to do more with less. The Council and city staff also continues to investigate additional revenue sources. In 2015, the City’s tax base continued to grow due to several new development projects. Redevelopment of properties in Hopkins helped to increase our tax base. The City's total tax capacity values increased 6.8% due to commercial properties higher tax capacity. In 2015 the overall taxable market value increased by 4.6% due to several recently completed development projects in the city. The city’s levy has increased an average of 2.05% per year over the last five years. The City’s general fund expenditures have increased an average of 2.5% a year over the last five years. This increase is directly related to salary and benefit increases for employees, insurance costs and oil based products. Diligent planning and management has helped in keeping operating expenditures down. The employee compensation has remained competitive in the market for both those with and those without labor contracts. The number of employees has remained stable at 105-110. ECONOMIC OUTLOOK Hopkins is a diverse community made up of a healthy mix of residential, commercial and industrial properties. Super Valu is the largest food wholesaler in the nation. They are a Fortune 500 company that continues to have a strong presence in Hopkins. Another Fortune 500 company with a branch in Hopkins is US Bank. In addition Cargill, the largest privately held company in terms of revenue, has a large corporate campus in Hopkins with three building totaling over 800,000 square feet. Total employment at the three buildings is estimated at 3,300. Hopkins economic outlook has remained relatively stable. The City has expanded its commercial tax base through redevelopment. Hopkins is an inner-ring suburb of Minneapolis with a good mix of 34% residential, 42% commercial and industrial and 22% apartment properties. Hopkins participates fully in the Minneapolis and Hennepin County economies. Hopkins has preserved its central downtown area where development continues because of its highly desirable location. Hopkins wealth levels are above average when compared nationwide. REDEVELOPMENT Significant redevelopment has occurred within the City of Hopkins over the past five years. This redevelopment has contributed substantially towards the increase in property values and by making Hopkins a more desirable place to live and work. Some of the more recent projects are: Redevelopment of a vacant commercial site in downtown Hopkins into a 53-unit luxury apartment and retail development Redevelopment of a small parcel in the downtown district into six luxury townhomes. Redevelopment of a vacant office and clinic site into 163 luxury apartments with retail space Redevelopment of a vacant downtown building into a craft brewery and tap room. Redevelopment of a former office building into 241 high end luxury apartments and retail space. In addition to projects other development continues in Hopkins. This includes new commercial structures on Mainstreet, renovation of older industrial buildings, new residential projects, and more mixed-use projects that incorporate residential and commercial development. Overall, these redevelopment efforts continue to ensure that Hopkins remains a desirable community in which to live and work. 2016 BUDGET 5 CITY OF HOPKINS LONG TERM OBJECTIVES The City Council and staff have established long term objectives for the community and the working environment Increase ratio of residential properties. Maintain the high quality of our livable community. Increase tax base to spread share of tax burden. BUDGET OBJECTIVES FOR 2016 Maintain core City services at a reasonable price for residents and commercial/industrial users. Use program budgeting as a tool for analysis of all programs and services to: look for ways to reduce dependency on the property tax, find greater efficiencies in the provision of current services and programs, compare staffing levels to workloads to assure proper allocation of resources, create greater linkages between revenues and expenses, to allow for more entrepreneurial approaches to non-essential services. Forecast funding needs and tax implications to assure strong long-term financial stability. Continue policy of avoiding the use of fund balances for operating expenses. Recognize and award employees that assist the City in saving money. Evaluate and investigate other sources of revenue. BUDGET CONSIDERATIONS These are areas to consider that may affect the budget during the next few years. State Tax Reform: The state’s ongoing budget challenges will again affect City finances as well as residential and commercial based taxpayers. Property Classification Changes – In the past there has been a tendency to shift some of the tax burden back to residential taxpayers from commercial/industrial taxpayers. Tax Increment Finance – Any changes in property classifications impact property taxes generated by TIF districts. Currently the tax generated in the various districts is projected to be sufficient to cover any debt or liabilities created in the districts. Property Tax Freeze and/or Levy Limits – Levy limits have been on and off again since 2008. This uncertainly poses budget challenges as cities are uncertain if they will again be re- instated. For the 2016 budget year there were no levy limits which give cities more budget flexibility in meeting the needs of their citizens while maintaining essential city services. State Aids – The City of Hopkins no longer relies on significant state aids as a revenue source despite the legislature annually discussing the Local Government Aid (LGA) program and working to modify the program and how funds are allocated to cities. Beginning in 2015 the city is again receiving LGA of about $300,000 annually. Real Estate Values – Overall real estate values in this community were stable for 2016. Despite the market value stability this resulted in an increase in the City’s tax capacity of 4.6% due to commercial property which has a higher tax capacity than residential properties. Overall, general fund budgeted expenditures will increase by 4.66% in 2016 due in large part to salaries and benefits which included the addition of two fulltime firefighters. This increased our fulltime fire staff to three. We projected a 2.0% change for 2017 and modest if any increases for future years. Future programs and services provided by the City of Hopkins may change in relation to available revenue sources. The City Council and staff along with their financial advisor will be updating the City’s long-range financial management plan that assists in current and future budgeting. The plan was adopted in 2014 and was implemented for the 2015 budget and used again for the 2016 budget. This planning assists in minimizing the impacts of potential tax freezes, additional state aid losses and sets forth a plan to stabilize all funds. The plan will be updated annually and used in future annual budget preparation. 2016 BUDGET 6 CITY OF HOPKINS Fund Balances for governmental fund types will continue to be strong for the next 3 to 4 years, absent any significant changes in the policy of avoiding the use of fund balance reserves for current expenditures. GAUGING THE CITY The City uses the following performance measures: Tax levy history in relation to the consumer price index. Sample properties – cost per month Comparisons of comparable communities Goal achievement 2016 BUDGET ADOPTION Overall the budget objective is to provide quality services at a reasonable cost, while keeping tax rates fairly constant In the past this has been accomplished through increased net tax capacity levels and keeping the tax levy at a reasonable amount while at the same time allowing the City enough funds to continue with the level and quality of service it currently has. This has been particularly challenging the last few years as property values declined. The city’s tax capacity rate held fairly steady from 2005 to 2010 at around 48%. When property values started falling in 2010 they affected the tax rate for 2011 through 2012 increasing to 62.417% in 2013. The proposed 2016 city tax rate is 64.077, a 3.069% increase from 2015. The adopted General Fund budget has a 4.66% expenditure increase for a total General Fund Budget of $11,860,730. The total tax levy increase for 2016 is 8.85%. The levy includes funds designated for general fund operations, capital improvements, the Pavilion, Art Center and debt service payments. The monthly city tax cost for a median valued home of $225,000 is about $117.91 or approximately $1,415 for the year not including credits for state programs. The city’s goals and objectives were once again reviewed and updated by city staff, commissions, citizens and the City Council. They are integral part in meeting the needs of the citizens. The 2016 goals and strategic plan are included in the budget document on pages 14-15. Sincerely, CITY OF HOPKINS Michael J. Mornson City Manager 2016 BUDGET 7 CITY OF HOPKINS The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to City of Hopkins, Minnesota for its annual budget for the fiscal year beginning January 1, 2015. 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 as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. 2016 BUDGET 8 CITY OF HOPKINS 2016 BUDGET 9 CITY OF HOPKINS COMMUNITY PROFILE The first settlers of Hopkins arrived in 1852; however, the roots of the town begin in 1887 with the building of the Minneapolis Threshing Machine Company, later called Minneapolis Moline. Minneapolis Moline once employed most of the Hopkins residents. The West Minneapolis Land Company was also founded in 1887 and was formed to build housing for the Minneapolis Moline factory workers. In 1893, the Hennepin County Board of Commissioners received a petition signed by 41 residents, asking that the village be formed. Following an election, the community was then incorporated as the village of West Minneapolis. The original village was comprised of three square miles, and it has been enlarged by annexation to its present size of about four square miles. The population at the time of its incorporation was 1,105; today, there are 17,481 people living in Hopkins. In 1928, the name of the village was changed to Hopkins - for Harley H. Hopkins who was among its first homesteaders and was the community's first postmaster. The first mayor was Harley Hopkins' son, Chester L. Hopkins. On January 1, 1948, the village became a city upon adoption of a City Charter with a Council/Manager form of government. The City Council consists of four council members and the mayor. Council members serve four-year terms and are elected at large. The mayor is elected at large for a two-year term. The governing council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees and hiring the City’s manager and attorney Hopkins has always had a core business district, and in the center of that early business district was Hopkins City Hall at 8th Ave N and Mainstreet. Completed in 1912, it housed the city's police and jail in the rear portions, and city offices, library and meeting room upstairs. The fire station was on the main level, and the firefighters used horse drawn rigs. The building was remodeled in 1940 to accommodate more fire trucks. That fire station was torn down in 1965 after a new City Hall, Police Station and Fire Station were built at 1010 1st St S. In 2004, a new Fire Station was built on 17th Ave. The Police Department was expanded and remodeled in 2005. In the summer of 1982, the city and its Public Works Department accomplished the challenge of building a city garage on a small area, using as many of the existing structures as possible, doing it within a $475,000 budget, and doing it without disrupting city services. The Public Works facility was expanded and remodeled in 2004. Adjacent to the Public Works facilities is the Hopkins Pavilion, which was built with money from a 1989 park bond referendum. The facility opened in December 1991. It is now one of the premier facilities of its kind in the Twin Cities area, and is used for soccer, lacrosse, in-line roller hockey, skating and ice hockey. The Hopkins Activity Center, a multipurpose community facility, opened in January 1981 at the site of the former South Junior High School. A variety of programs for people of all ages are offered at the Activity Center. It was renovated in 1990, and the facility includes a gymnasium, meeting rooms and kitchen. The Hopkins Historical Society, which was started more than 30 years ago, also is located in the Activity Center. The Hopkins Center for the Arts, 1111 Mainstreet, opened in November 1997. The Arts Center stands as a focal point for arts, culture and entertainment in the Hopkins community, the Twin Cities metro area and the region. It is a community-gathering place where young and old can enjoy high quality, multi- disciplinary cultural arts programs and community activities. The Arts Center includes a theater, a visual arts gallery, multipurpose spaces for rehearsals, community activities and small performances, a visual arts classroom, a dance studio, and kitchen facilities for serving catered food. th It addition to its facilities, the City of Hopkins is home to the annual Raspberry Festival, now in its 80 year. The first festival was organized in 1934 by a group of community business people who were concerned that the Hopkins economy and community needed a boost. 2016 BUDGET 10 CITY OF HOPKINS Minnesota Hopkins is a suburban city in Hennepin County, Minnesota located just 13 minutes west of the Twin Cities of Minneapolis and St. Paul. The City is four square miles in size surrounded by larger suburban communities. Hopkins is about 98% developed with little remaining vacant land. U.S. Route 169 and Minnesota Highway 7 are two of the main arterial routes in the City. Hopkins is a dynamic community of over 18,000 residents. Founded rich in tradition and growth, Hopkins offers the advantages and conveniences of a large City but yet the security of a small town. The residents and the business community have an enormous sense of pride and support for their City. Travel any street and you will see and feel the reflections of pride and vitality. Hopkins has enriched its spirit of community by remaining a place where people are treated with respect; where the community participates in building culture, character and common bonds; where business growth is supported while a vibrant City Center is maintained; where people feel safe, support outstanding schools and celebrate cultural heritages; and where people enjoy quality parks, housing and public services. Through education, inspiration, involvement and communication, the City Council, City Staff, members of the Boards and Commissions, the business district and the neighborhood associations are committed to enhancing the quality of life in Hopkins. Population: 19203,055 19303,834 19404,100 19507,595 196011,380 1970 (census)13,395 1980 (census)15,336 1990 (census)16,534 2000 (census)17,145 2010 (census)17,591 201117,701 201217,939 Summertime in Hopkins 201318,413 at the Clock Tower Plaza 201418,971 2016 BUDGET 11 CITY OF HOPKINS CITY STATISTICS: Founded1852School Enrollment8,496 Dated of IncorporationNovember 27, 1893Education Date of Adoption of City CharterDecember 20, 1947 Elementary Schools6 Form of GovernmentCouncil - Manager Middle Schools2 Fiscal Year BeginsJanuary 1 High School1 Area of City4.1 Square Miles Private Schools8 2,616 acres Charter Schools2 Housing Single Family2,764Elections: Multiple Family5,020 Registered Voters - last general election9,647 Duplexes514 Number of votes cast last general election1,058 Townhouses868 Percentage of registered voters voting11% Population by AgeCity Bond Rating 0 to 194,367 Stand & Poor'sAA+ 20 to 6411,448 Over 651,970 Miles of Streets and Alleys: Income by Household Trunk Highways3.57 Less than $25,0001934 County5.32 $25,000 - $50,0002088 City Streets47.5 $50,000 - $75,0001570 Alleys9.52 $75,000 - $100,000912 $100,000 - $150,000902Miles of Sewers: $150,000 - $200,000315 Storm Sewers21.4 $200,000 or more235 Sanitary Sewers45.46 Median Household Income$49,400Miles of Watermains52.6 Per Capita Personal Income$29,400 Civil Defense Warning Sirens3 Unemployment Rate3.3% Fire Protection: Population Composition Number of Stations1 White57.82% Number of FT Employees3 African American17.11% Volunteer Firefighters33 Asian7.69% Hispanic or Latino11.63%Police Protection: Two or More Races4.12% Number of Stations1 Native American0.50% Number of Employees45 Other Races1.13% Parks City Parks16 Playgrounds11 Total Property Values$1.664 billion Skating Rinks7 2016 BUDGET 12 CITY OF HOPKINS ORGANIZATION STRUCTURE The home rule charter of the City was adopted on December 2, 1947 and serves as the basis for the government operations of the City. The City utilizes the council-manager form of municipal government. The City Council is comprised of the mayor and four council members. The mayor and the council members are elected at large. The council members serve a four-year term and the mayor serves a two- year term. The city manager of the City is the chief administrative officer of the City. The city manager and the city attorney are selected by the City Council and serve an indefinite term. The city manager controls and directs the administration of the City’s affairs and therefore, supervises all departments and divisions of the City. The city attorney provides legal and prosecution services for the City. City boards and commissions serve in an advisory capacity to the City Council. The City is managed through seven departments, each with a department head who reports to the city manager. A description of each of the departments is included in this document. Within each department are several programs. A description of each program, its objectives and budgets are presented in this document. The City utilizes several commissions to advise, prioritize or implement various city issues or projects throughout the year. These commissions are comprised of volunteer citizens and an appointed staff member as a liaison. The Charter commission reviews the city charter for appropriateness and also recommends changes to the charter. They meet annually or more often as needed. The Zoning and Planning commission meets monthly and reviews and recommends zoning applications, changes to zoning ordinances and recommends possible future economic development for the City. The Park board meets monthly to review park and recreation programs use and recommends future programs and development for parks. There are also several internal committees comprised of department heads and employees to assist in the management of City operations. These include the Labor Management committee, Employee Management committee, Insurance committee, Safety committee, Wellness Committee and Police Review committee. MISSION, VISION AND GOALS Long-range goals for the City are: Continually enhance partnerships with citizens. o Inspire citizen leadership. o Educate and involve residents. o Communicate openly and effectively. o Be responsive. o Be fiscally responsible. o Provide quality customer service that is: o Responsive to the needs of the community. Innovative. Accessible. Short-term goals are reviewed annually by City Council and staff. The discussion begins with the global environment and ends with prioritizing goals for the near future. Below are the mission, vision and short- term goals for the City along with the strategies and action steps needed to implement them. The budget is developed using the three main goals along with the strategies as guidance. Departments then use the action steps in setting individual departmental goals and budgets so that resources are available to achieve the action steps identified. 2016 BUDGET 13 CITY OF HOPKINS 2016 BUDGET 14 CITY OF HOPKINS 2016 BUDGET 15 CITY OF HOPKINS FINANCIAL MANAGEMENT AND POLICIES The City of Hopkins Finance Department is responsible for maintaining the accounting system and monitoring compliance with the budgetary controls and financial policies established by the City Manager and City Council. Following is an overview of relevant financial management practices, policies and year- end reporting. BASIS OF ACCOUNTING The accounting system provides for a complete, self-balancing account group for each fund of the City. Accounting records are maintained on the modified accrual basis for City funds. The exception is the proprietary funds, which are on full accrual. The modified accrual basis of accounting recognizes revenues to the degree that they are available to finance expenditures of the fiscal period. Similarly, debt service payments and a number of specific accrued liabilities are only recognized as expenditures when payment is due because it is only at that time that they normally are liquidated with expendable available financial resources. The budgetary basis of accounting is the same basis of accounting used to prepare the City’s financial statements as included in the City’s Comprehensive Annual Financial Report at the fund statement level. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) The City implemented Governmental Accounting Standards Board (GASB) Statement No. 34 for the year ending December 31, 2003. The statement also requires the City to utilize the economic resources measurement focus as well as the accrual basis of accounting. The City operates on a calendar fiscal year and reports its year-end financial position in a Comprehensive Annual Financial Report (CAFR), prepared by the City’s Finance staff. Copies of the 2015 CAFR will be available to the public upon completion in May 2016 and a summary of the results will be published in the official newspaper. The 2015 CAFR will be audited by the independent auditing firm of CliftonLarsonAllen, LLP to insure accuracy and compliance with federal and state laws and regulations. State law provides that the City may arrange for an examination of its books, records, accounts and affairs, or any part thereof, by the State Auditor or by Certified Public Accountants. It has been a long-standing policy of the City to provide for a complete annual audit of the City records by independent Certified Public Accountants. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement of Excellence in Financial Reporting to the City of Hopkins for its CAFR for the fiscal year ended December 31, 2014. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. CAPITAL IMPROVEMENT PROGRAM (CIP) POLICY The City annually develops a 5-year plan for capital improvements and updates it annually. The five-year budget capital improvement will be approved and incorporated into the operating budgets. The following year’s budget will be adopted with the year after that on a cycle consistent with the operating budgets. The complete CIP document can be downloaded from the city’s website at www.hopkinsmn.com and is a companion document to the Annual Budget. The City will identify the estimated cost and potential funding sources for each capital project proposal before it is submitted to the Council for approval and that process will determine the most cost effective financing method for the proposed project. The City will make all capital improvements in accordance with the adopted capital improvement program or as amended by the City Council. Capital purchases not otherwise funded through an approved budget shall require City Council approval. The City will maintain all its assets at a level adequate to protect the City’s and its citizen’s capital investment and to minimize future maintenance and replacement costs. 2016 BUDGET 16 CITY OF HOPKINS EQUIPMENT REPLACEMENT PLAN (ERP) POLICY The City annually develops a 5-year plan for equipment replacement and updates it annually. The five- year budget equipment replacement plan will be approved and incorporated into the operating budgets. The following year’s budget will be adopted with the year after that on a cycle consistent with the operating budgets. The complete ERP document can be downloaded from the city’s website at www.hopkinsmn.com and is a companion document to the Annual Budget. The City will identify the estimated cost and potential funding sources for each equipment proposal before it is submitted to the Council for approval and that process will determine the most cost effective financing method for the proposed equipment purchase. New pieces of equipment not previously in the equipment replacement plan must first be financed through the departmental budget and will be placed in the equipment replacement plan the year following the purchase. The City will make all equipment purchases in accordance with the adopted equipment replacement plan or as amended by the City Council. Equipment purchases not otherwise funded through an approved budget shall require City Council approval. The City will maintain all its equipment assets at a level adequate to protect the City’s and its citizen’s capital investment and to minimize future maintenance and replacement costs. BUDGETARY AND FINANCIAL CONTROL POLICIES The council shall have full authority over the financial affairs of the City. City manager shall control and direct the administration of the City's affairs. The manager shall prepare the budget annually and submit it to the council and be responsible for its administration after adoption. The manager will prepare and submit to the council at the end of the fiscal year a complete report on the finances and administrative activities of the City for the preceding year; and keep the council advised of the financial condition and future needs of the City. The annual budget shall provide a complete financial plan for the budget year by fund. The council shall levy the taxes necessary to meet the requirements of the budget for the ensuing fiscal year. The city clerk shall be the chief purchasing agent of the City. The City will maintain an investment policy that invests available funds to the maximum extent possible, at the highest rates obtainable at the time of investment, in conformance with the legal and administrative guidelines.Any money in any fund belonging to the City, or any branch thereof, may be invested by the city manager according to policies adopted by the City Council. The finance director shall be the chief accounting officer of the City and shall submit to the council a statement each month containing information relative to the finances of the City as the council may require. Each year the finance director shall submit a report to the council, no later than June 30, covering the entire financial operations of the City for the past year. This report shall follow the style and form, as far as practicable, prescribed for annual City financial reports and copies will be made available to interested parties. BUDGET CONTROLS Budgets are complete financial plans for the future by fund, showing all proposed expenditures and estimates of all anticipated revenues. The council may include or exclude at its discretion any fund, except the general fund. The budget shall be submitted to the council at a regular council meeting, in a manner prescribed by state statute, not less than 30 days prior to final approval. The budget is a public record open to public inspection. The council shall hold a public hearing on the budget and it shall make such changes therein as it deems necessary and adopt the budget by resolution. BALANCED BUDGET – It has been City policy to annually approve a balanced General Fund budget. A balanced budget is a budget in which expenditures are equal to income. Other City funds may or may not have a balanced budget depending on when funding is received for specific expenditure needs. For example a grant may be budgeted for expenditures that may overlap years. Thus all revenues would be in one year and the expenditures would be in multiple years. 2016 BUDGET 17 CITY OF HOPKINS BUDGET BASIS – Governmental budgets are prepared on the modified accrual basis and enterprise budgeted on an accrual basis. Budgets are estimates and may be amended under the following guidelines. PREPARATION OF THE ANNUAL BUDGET – The annual budget shall provide a complete financial plan for the budget year by fund, showing all proposed expenditures and estimates of all anticipated revenues applicable to proposed expenditures and any other information the council may require or the city manager might deem desirable. In parallel columns shall be shown the amounts, if any, granted and expended under similar heads for the past two complete fiscal years and, as current as possible, for the immediate past fiscal year. The council may include or exclude at its discretion any fund, except the general fund. The budget shall be submitted to the council at a regular council meeting, in a manner prescribed by state statute, not less than 30 days prior to final approval. It shall be a public record open to public inspection by anyone and the city manager shall cause sufficient copies thereof to be prepared for distribution to the mayor, members of the council and interested persons. ADOPTION OF THE BUDGET – The council shall hold a public hearing on the budget and it shall make such changes therein as it deems necessary and adopt the budget by Resolution. ENFORCEMENT OF THE BUDGET – Except as set forth in Section 7.16, the city manager or the City Council shall not approve any expenditure uncovered by the budget. The City Council may approve expenditures uncovered by the budget if there is sufficient unexpended balance left after deducting the total past expenditures and the sum of all outstanding bills, orders and encumbrances. No employee of the City shall place any orders or make any purchases except for the purpose and to the amounts authorized in the budget. Except as in this Charter otherwise provided, any obligations incurred by any person in the employ of the City for any purpose not authorized in the budget or for any amount in excess of the amount therein authorized shall be a personal obligation upon the person incurring the expenditure. ALTERATIONS IN THE BUDGET – Except as set forth in Section 7.16, after the budget shall have been duly adopted, the council shall not have power to increase the amounts therein fixed, whether by the insertion of new items or otherwise, beyond the estimated revenues, unless the actual receipts shall exceed such estimates, and in that event not beyond such actual receipts. The sums fixed in the budget are appropriated at the beginning of the fiscal year for the several purposes named therein. The council may reduce salaries or the sums appropriated for any other purpose, or authorize the transfer of sums from unexpended balances to other purposes. Budgets are adopted by fund and are appropriated for several purposes. The council may reduce appropriations within any fund and re-appropriate those funds within the same fund for other purposes. The council may also increase appropriations if actual receipts exceed budgeted revenues. The increase in appropriations cannot exceed the excess in budgeted revenues. The budget, as presented in this document, is developed for each program within a department. For example, the Finance department is made up of several programs including Benefit Administration, Payroll, Utility Billing, etc… For management purposes, the sum of the program expenditures may not exceed the total budget for the specific department. For legal purposes, the general fund total expenditures cannot exceed the total general fund appropriation. The council must budget for the general fund but budgets for all other funds are at their discretion. Budgets are adopted on a basis consistent with generally accepted accounting principles and are defined on the same basis of accounting described below. Annually appropriated budgets are legally adopted for the general fund. Budgeted amounts are reported as originally adopted, or as amended by the City Council. Budgeted expenditure appropriations lapse at year-end. Unexpended or supplementary appropriations can be carried forward if approved by the City Council. Encumbrances represent purchase commitments. Encumbrances outstanding at year-end are reported as reservations of fund balances and the budgets associated with them are carried forward to the next year. 2016 BUDGET 18 CITY OF HOPKINS The City follows the procedures below in establishing the budget. 1. The city manager and finance director submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. a. The operating budget includes proposed expenditures and the estimated revenues for the general fund, specified special revenue funds requested by City Council, enterprise funds, internal service funds and debt service funds. b. Capital project funds for the City are not budgeted annually but are included in the Capital Improvement Plan approved by the City Council. Capital projects are approved by the City Council on a per project basis. 2. Public hearings are conducted to obtain taxpayer comments. 3. The general fund budget is enacted through passage of a resolution. BUDGET CALENDAR April-MayMeet with Council to set parameters and goals for 2015 budget process June (1st week)Distribute budget worksheets to departments June (3rd week)Departmental budgets to be completed and returned to finance June (4th week)Finance reviews and compiles budget summary July (1st week)City Manager & Finance to meet with departments to review budgets July - AugustCouncil work sessions to review budgets September 1City Council adopts preliminary levy and budget September 2Proposed 2016 budget and levy certified to Hennepin September/OctoberSpecial Revenue & Enterprise budgets presented to Council for review and approval December 1Budget public hearing and final budget approval and tax levy certification December 28Final 2016 levy certification to Hennepin County INTERNAL CONTROLS In developing and altering the City’s accounting system, consideration is given to the adequacy of internal accounting controls. These controls are designed to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use of disposition and the reliability of financial records for preparing financial statements and maintaining accountability for assets. the concept of reasonable assurance recognizes the cost of a control should not exceed the benefits likely to be derived, and the evaluation of costs and the benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. We believe the City’s internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. CASH MANAGEMENT The investment portfolio of the City is designed to attain an average rate of return regularly exceeding the average return on three month US Treasury Bills, while seeking to augment returns above this threshold consistent with budgetary cycles, economic conditions, risk limitations, and prudent investment principles. Portfolio diversification is considered so that investments are not concentrated in one institution, in one type of investment, or purchased from one dealer. Pursuant to this policy, cash temporarily idle during the year was invested in those investments authorized by law RISK MANAGEMENT The City has an informal risk management policy, the purpose of which is to maintain the integrity and financial stability of the City, protect its employees from injury, and reduce overall costs of operations. The City has insurance coverage through the League of Minnesota Cities Insurance Trust (LMCIT) to ensure City property, contractors and miscellaneous equipment, crime, employee performance bonds, autos and general liability. General liability coverage amounts to $1,000,000 per occurrence (and aggregate), with a $20,000 per occurrence, $40,000 aggregate deductible. 2016 BUDGET 19 CITY OF HOPKINS DEBT The City will confine long-term borrowing to capital improvements, equipment or projects that have a life of more than 5 years and cannot be financed from current revenues. The City may issue debt for its Permanent Revolving fund, which pays for any improvement in which part of the cost of the improvement is to be assessed against the benefiting properties. The City may also issue revenue bonds that are paid back directly from revenue sources other than debt levies. The City may submit to voters the proposition of issuing debt for any public purpose not prohibited by law, and issue the debt upon a favorable majority vote. Whenever possible, the City will use revenue (including G.O. backed revenue) or other self- supporting type bonds instead of general obligation bonds. The City will maintain frequent and regular communication with bond rating agencies about its financial condition and will follow a policy of full disclosure in every financial report and bond prospectus. The City will comply with Securities Exchange Commission (SEC) reporting. The City will keep the total maturity length of general obligation bonds below 25 years. In all cases the maturity shall be shorter than the life of the related assets. Net general obligation debt (as defined above) will not exceed 3% of the estimated full market value of taxable property in the Cit as required by Minnesota Statutes Section 475.53. The City may issue emergency bonds to pay for extraordinary expenditures or to cover a shortfall in revenues for budgeted expenditures. Emergency bonds must mature within ten years of issuance. One tenth of the amount is to be levied the first year following issuance and one tenth every year there after for ten years. FUND BALANCE The City believes that sound financial management principles require that sufficient funds be retained by the City to provide a stable financial base at all times. To retain this stable financial base, the City needs to maintain a General Fund Balance sufficient to fund all cash flows of the City, to provide financial reserves for unanticipated expenditures and/or revenue shortfalls of an emergency nature, and to provide funds for all existing encumbrances. The following individual items shall constitute the City General Fund Balance: Restricted Fund Balance – The restricted fund balance category includes the portion of o thespendable fund balance that reflects constraints on spending because of legal restrictions stipulated by outside parties (e.g., encumbrances for goods or services with outside parties-creditors, grantors outstanding at the end of the year), Also, any legal restrictions based on state statutes or grant requirements placed on the use for specific purposes Committed Fund Balance – The committed fund balance classification includes the o portion of the spendable fund balance that reflects constraints that the city has imposed upon itself by a formal action of the city council (for example, an ordinance or resolution passed by a city council). This constraint must be imposed prior to year end but the amount can be determined at a later date. Assigned Fund Balance – The assigned fund balance is the portion of the spendable fund o balance that reflects funds intended to be used by the government for specific purposes assigned by more informal operational plans. In governmental funds other than the general fund (special revenue funds, capital project funds, debt service funds and permanent funds); assigned fund balance represents the amount that is not restricted or limited. The authority to “assign” fund balance is delegated to the City Finance Director Unassigned – This is the residual classification for the government’s General Fundand o includes all spendable amounts not contained in the other classifications and, therefore, not subject to any constraints. Unassigned amounts are available for any purpose. These are the current resources available for which there are no government self- imposed limitations or set spending plan. Although there is generally no set spending plan for the unassigned portion, there is a need to maintain a certain funding level. Unassigned fund balance is commonly used for emergency expenditures not 2016 BUDGET 20 CITY OF HOPKINS previously considered. In addition, the resources classified as unassigned can be used to cover expenditures for revenues not yet received. The Council recognizes that any such funds should be appropriated for non-recurring expenditures as they represent prior year surpluses that may or may not materialize in subsequent fiscal years POLICY - At the end of each fiscal year, the City will strive to maintain Spendable – Unassigned portions of the fund balance for Cash Flow equivalent to a minimum of five (5) months or 42% of the prior fiscal year General Fund operating expenditures. In addition to cash flow needs this accommodates emergency contingency concerns. MONITORING AND REPORTING - The City Manager and Finance Director shall annually prepare the status of fund balances in relation to this policy and present to the City Council in conjunction with the development of the annual budget. 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 committed, assigned or unassigned resources are available for use, it is the City’s policy to use resources in the following order; 1.) committed 2.) assigned and 3.) unassigned. A negative residual amount may not be reported for restricted, committed, or assigned fund balances in the General fund. BUDGET PLANNING PROCESS The City has developed a number of elements that when been brought together help to provide the best information for the Council to make their budget decisions. These elements include the following: Strategic Planning Process – The Council has a mission and vision statement, which helps determine the priorities of the community and direct the council in providing services for its constituency. As part of the process annual goals and objectives are set. Department Directors then use these goals in developing departmental goals and setting departmental budgets. Program Budgeting – This provides more information in regards to what programs departments provide and what is the individual cost of those programs. This accomplishes the objective of reviewing revenues and expenditures based on program activity. For programs whose goal is to be supported totally by revenues it allows departmental managers to review the fee structure on an annual basis to ensure that goal is met. It also allows the public to determine what portion of a specific department is supported by taxes. Four Year Budget Modeling – Encourages future planning for the General Fund budget and allows us a preview at projected property tax levy needs over the next four years. Monitoring tax capacity along with budget needs provides advance notice to management when taxes may rise faster than advisable and allows staff to take appropriate action in revising budget goals and projections. Cash Flow Models – Cash flow projections are created for all funds to provide us with a view of future sources and uses within the various funds and for the City as a whole. This assists in long range planning and goal setting in keeping all funds in a positive cash position. Financial Management Plan – In 2014 the City adopted a long-range Financial Management Plan for the years 2015-2024 that addresses financing challenges for several funds, sets forth financing for all items identified in the Capital Improvement Plan (CIP) and Equipment Replacement Plan (ERP) (described below), and provides for adequate funding for operational needs in the general, special revenue funds and enterprise funds. Tax base growth is built into the plan so the taxes are indexed each year based on that growth. This plan when followed should make the annual budget much easier to develop. 2016 BUDGET 21 CITY OF HOPKINS The Financial Management Plan will be updated each year prior to the budget process and used as a guide in preparing the annual budget. This document is key in managing increases in the General Fund, restoring the Art Center Fund to sound financial footing and providing adequate resources for the Pavilion Ice Arena that will need significant capital improvements in 2020. The Financial Management Plan was developed by staff with assistance from the City’s Financial Advisor who will assist staff in annual updates to the plan to ensure the goals of the City continue to be met. Net Property Tax Cost for Sample Properties – Developed many years ago, this provides information to the council incorporating expected increases in valuation and projecting actual costs on sample properties within the City. The council when setting the tax levy is sensitive to its impact on property owners and this benchmark provides information on how the recommended levy will impact city taxpayers. If the council feels the proposed levy will negatively impact property owners options for reducing the levy are explored. These may include revenues alternatives or expenditure decreases or a combination of both. Net Tax Cost by Program – This provides both a dollar and percentage of property tax support for programs and demonstrates which city programs are most each of the City’s general fund dependant on taxes. It also provides information to the public on what benefits they receive for their tax dollars. The Capital Improvement Plan (CIP) is a five-year schedule or plan Capital Improvement Plan – for capital improvement expenditures in excess of $10,000 and having a useful life of five or more years. The Capital Improvement Plan process begins with departments editing and updating existing plans from previous years and adding or deleting projects. Once this is completed, finance does an analysis of funding requirements and any related prioritization is done by the city manager. The analysis includes a review of projected working capital amounts available for the projects, any operating cost adjustments as a result of the improvement and the impact of future funding needs is determined. The mayor and council then use the compiled information in the CIP along with the results of public discussion, to determine which projects are to proceed and exactly how they will be funded. Once the CIP is approved the projects for the following year are placed in the appropriate budget. Equipment Replacement Plan – The Equipment Replacement Plan (ERP) is a twenty-year forecast and a five-year plan of equipment needs within the City. In is intended to inform the Council and citizens of the major equipment needs on the horizon. The first year of the plan becomes an adopted equipment budget and relates to the operating budget of the equipment replacement fund, which is approved on an annual basis. The remaining nineteen years represent an estimate of equipment needs and funding capabilities of the City. Funding requirements vary from year to year. In order to maintain a fairly consistent levy each year, the twenty-year schedule is projected with a 3% inflation factor for operating expenses and a yearly average dollar capital expenditure of $992,400. Revenues for the ERP are derived from charges to the departments that use the equipment and are based on the equipment needs of the various departments over the twenty-year period. FUND STRUCTURE The accounting system maintains a standard fund structure for a typical Minnesota city government. Following is a description of the funds included that are subject to appropriation, for which financial plans and budget appropriations are prepared annually. These funds are the General, Special Revenue, Debt Service, Capital Projects and Enterprise. General Fund The General Fund accounts for all financial transactions not properly accounted for in any other fund, including most of the basic governmental services. The expenditures from the General Fund account for the majority of primary services provided by the City in the areas of public safety, parks and public works, recreation, planning, engineering and general government. 2016 BUDGET 22 CITY OF HOPKINS Special Revenue Funds This type of fund accounts for services and expenditures where revenue is restricted for a designated purpose. The City maintains fifteen Special Revenue Funds. There are thirteen budgeted Special Revenue Funds. Chemical Assessment Team Fund – grant funds received from the state restricted for the operation of the Chemical Assessment Team. Economic Development Fund – revenue sources include interest on loans, taxes, development fees that are used for expenditures relating to housing and redevelopment projects throughout the city. Tax Increment Funds (7) – tax increment revenues for housing and economic redevelopment projects throughout the city. Parking Fund – parking permits and parking violation fees help support the maintenance of the cities current parking lots and ramps. Communication Fund – franchise fee for cable TV supports cable and communications efforts of the city. Depot Coffee House Fund – grants, leases and concession revenues support a local chemical free teen center and coffee house. Art Center Fund – leases, state aids, contributions and program sales support the Hopkins Center for the Arts, which is a community-based center with theater and art at its base. Some of the Special Revenue Funds do not require an annual financial plan because of the nature of the type of revenue and expenditure. Expenditures are authorized on an individual basis. Hennepin County CDBG Fund – block grant funds used for housing and infrastructure improvements Debt Service Funds Debt service funds account for the accumulation of resources for the payment of general long-term debt principal, interest, and related costs. The City maintains 17 individual debt service funds for the various bond issues. The City has established annual financial plans for all 17 general obligation bond funds, which are shown in total as the GO Debt Service Funds. Capital Project Funds Capital project funds account for the acquisition and construction of major capital facilities and equipment (except those financed by proprietary funds). This includes expenditures relating to capital projects and large capital outlay purchases. The City has five budgeted funds in this category: Park Improvement Fund – development and improvement of City parks. Revenue is primarily from park development fees paid by developers. State Aid Construction Fund – revenue from state aid to assist with maintenance and construction of state aid streets throughout the city. Capital Improvement Fund – transfers from other funds to cover future improvements or maintenance of city facilities and infrastructure. Street Improvement Franchise Fee Fund – revenue is derived from the increase off the base gas and electric franchise fees and will be used to offset street improvement costs that are to be levied on the taxes. Permanent Improvement Revolving Fund – bonds issued to fund reconstruction and maintenance of residential streets throughout the city. 2016 BUDGET 23 CITY OF HOPKINS Enterprise Funds Enterprise funds account for our business-type activities. These activities provide services where most of the costs are recovered through user fees and charges. The City has five Enterprise funds. Water Utility Fund – water utility fees based on water usage, which covers the expense of distributing water and maintaining the water system infrastructure. Sewer Utility Fund – sewer utility fees based on water usage, which covers the expense of disposing of sewer products and maintaining the sewer system infrastructure. Refuse Utility Fund – refuse fee based on size of refuse container, which covers the expense of disposing of refuse products. Storm Sewer Utility Fund – storm sewer utility fee based on non-permeable surface of property for commercial or a fixed rate for residential properties, which covers the expense of maintaining the storm sewer infrastructure throughout the city. Pavilion/Ice Arena Fund – rental fees for ice or space, which covers the operating costs of running the facility. Internal Service Funds Internal Service Funds are used to account for the financing of goods and services provided by one department to other departments of the City on a cost reimbursement basis. The City has three Internal Service Funds and no budgets are prepared for these funds. Equipment Replacement – revenues derived from leases of large equipment to all departments. Revenues are used to cover the cost of replacing equipment in the future. Lease payments are budgeted in the individual funds and transferred to the Equipment Replacement Fund monthly. Employee Benefits – to account for compensated absences of non-enterprise employees Insurance Risk – accounts for the dividends received from the insurance company for low insurance claims and costs, which is used to cover the deductible for any losses. Major Funds For 2016 the City identifies the following funds as major funds which are described above. All major funds are budgeted. General Fund Economic Development Special Revenue Fund Arts Center Special Revenue Fund Permanent Improvement Capital Projects Fund G.O. Housing Improvement Refunding Bonds of 2009B Debt Service Fund Water Utility Enterprise Fund Sewer Utility Enterprise Fund Storm Sewer Utility Enterprise Fund Public art in the downtown area 2016 BUDGET 24 CITY OF HOPKINS City Personnel by Function Administration of Fund GeneralPublicCommunityCommunity Operating FundGovernmentFinancePoliceFireWorksDevelopmentServicesRecreation General Fund AdministrationXXX FinanceX Community ServicesX Building MaintenanceXXXX InspectionsX PoliceX FireX Public WorksX RecreationX Activity CenterX Planning & ZoningX Community DevelopmentX Special Revenue Funds Economic DevelopmentX ParkingXX CommunicationX Depot Coffee HouseX Art CenterX Enterprise Funds WaterX SewerX RefuseX Storm SewerX PavilionX Housing & RedevelopmentX Employees volunteering at the annual Mayor Molly Cummings being sworn in as Thanksgiving luncheon for seniors at the the new mayor for 2016-2018. City’s Activity Center. 2016 BUDGET 25 CITY OF HOPKINS Authorized and Actual Staffing Levels Full-Time and Regular Part-Time Positions 1 FTE = an employee who works 40 hours a week 20132014201520162016 uthorized uthorized Authorized AA & Actual& Actual& ActualAuthorized Actual Administrative Services5.005.005.004.555.05 Finance4.604.604.604.004.00 Municipal Building1.451.451.451.451.45 Community Services9.809.709.688.658.65 Police36.4534.5035.5036.7836.78 Fire1.251.251.253.253.25 Public Works17.6917.0917.0917.9817.58 Skate Park0.050.050.050.050.05 Activity Center3.203.203.203.253.25 Zoning & Planning1.351.351.351.351.35 Community Development0.850.850.851.201.50 General Fund Total81.6979.0480.0282.5182.91 Economic Development1.151.601.601.251.25 Housing Rehabilitation0.000.000.000.000.00 Parking0.720.720.720.720.72 Communications0.250.250.250.750.75 Depot Coffee House6.255.255.255.255.25 Art Center3.803.804.304.304.30 Special Revenue Fund Total12.1711.6212.1212.2712.27 Water3.133.133.433.702.87 Sanitary Sewer3.463.463.763.603.40 Refuse3.893.893.894.094.09 Storm Sewer0.630.630.630.630.43 Pavilion/Ice Arena2.402.402.902.902.90 Housing & Redevelopment2.202.202.202.402.40 Total Proprietary Funds15.7115.7116.8117.3216.09 Total All Funds109.57106.37108.95112.10111.27 In 2016 the .83 position difference between authorized and actual staffing is due to minor changes in staffing. Due to a significant number of retirements the City has taken the opportunity to review staffing and make operational changes. As a result we were able to eliminate two part-time positions. The increase in actual staffing from 2015 to 2016 of 3.15 is due to adding two full-time firefighters increasing full time fire staff to three, bring the part-time parking enforcement officer to full-time and adding part-time staff to the Depot Coffee Shop. Other minor changes included shifting responsibilities of various personnel between departments which resulted in staffing count changes in those departments. 2016 BUDGET 26 CITY OF HOPKINS Operating Fund Crosswalk This matrix shows the relationship between functional units and funds. Major Funds pecaevenueCapital ProjectsDebt ServiceEnterprise SilR Tax Incr Taxable District - Taxable Tax Entertain-Permanent Houing Increment Storm General Economic ment Arts Municipal Improvement Bonds of Rfdg Bonds Water Sewer Sewer Function FundDevDistrictCenterState AidRevolving2009Bof 2005BUtilityUtilityUtilityPavilion General GovernmentXXXXXXXXXXX Public SafetyX Health and WelfareX Highways and StreetsX Urban Redevelopment and HousingXX Culture and RecreationXXX Capital OutlayXXXXXX Debt ServiceXXXXX WaterX SewerX Storm SewerX Non-Major Funds SpecialCapitalDebt FunctionRevenueProjectsServiceEnterprise General GovernmentXXXX Public SafetyX Health and WelfareX Highways and StreetsX Urban Redevelopment and HousingX Culture and RecreationX Capital OutlayXX Debt ServiceX RefuseX Hopkins Citizen’s Academy participants engage in Police, Planning and Economic Development, and fire exercises. The Citizens Academy, a five week program held annually in March allows citizens to get a better understanding of how their City government works. The Academy covers the topics of, Our Government, Police, Fire, Public Works and Planning & Economic Development. The program has been well received by the community with over 25 participants each year. 2016 BUDGET 27 CITY OF HOPKINS Summary Budget Information – Major Funds and Non-Major Funds by Fund Type 2014201520152016Budget ActualActualBudgetBudgetDifference%age REVENUES General Fund$ 11,355,285$ 11,346,71611,534,162$ 11,875,730$ 529,014$ 4.66% Special Revenue Funds Economic Development Fund$ 650,707$ 698,288$ 288,072$ 356,113$ 23.62%68,041 Arts Center$ 679,223$ 777,392$ 787,121$ 787,108$ 0.00%(13) Non-major Special Revenue Funds3,548,907$ $ 3,861,554$ 3,462,894$ 3,557,852$ 2.74%94,958 Capital Project Funds Permanent Improvement Fund2,067,658$ $ 5,701,023$ 1,641,537$ 3,603,842$ 1,962,305119.54% Non-major Capital Project Funds$ 2,791,356$ 2,522,008$ 1,997,696$ 2,971,893$ 48.77%974,197 Debt Funds Taxable Housing Bonds of 2009B399,288$ $ 407,103$ 407,000$ 407,750$ 0.18%750 Non-major Debt Service Funds$ 17,628,780$ 2,670,19421,896,938$ $ 3,707,894$ 1,037,70038.86% Enterprise Funds Water Utility Enterprise Fund$ 1,513,774$ 1,513,774$ 1,675,400$ 1,553,500$ (121,900)-7.28% Sewer Utility Enterprise Fund2,117,430$ $ 2,117,430$ 2,208,700$ 2,277,200$ 3.10%68,500 Storm Sewer Enterprise Fund$ 811,842$ 811,842$ 803,000$ 804,000$ 0.12%1,000 Non-major Enterprise Funds$ 1,344,023$ 1,344,023$ 1,405,400$ 1,433,267$ 1.98%27,867 EXPENDITURES General Fund$ 11,063,528$ 11,346,71611,228,522$ 11,875,730$ 529,014$ 4.66% Special Revenue Funds Economic Development Fund$ 362,524$ 425,682$ 240,828$ 176,600$ -26.67%(64,228) Arts Center$ 755,475$ 763,815$ 999,277$ 903,667$ (95,610)-9.57% Non-major Special Revenue Funds2,883,124$ $ 1,714,551$ 2,270,022$ 2,733,727$ 20.43%463,705 Capital Project Funds Permanent Improvement Fund1,623,431$ $ 7,921,516$ 2,630,973$ 3,898,728$ 1,267,75548.19% Non-major Capital Project Funds$ 2,679,632$ 1,446,959$ 2,992,500$ 1,653,847$ -44.73%(1,338,653) Debt Funds Taxable Housing Bonds of 2009B330,239$ $ 325,517$ 325,500$ 327,200$ 0.52%1,700 Non-major Debt Service Funds$ 10,740,718$ 9,050,03920,255,495$ $ 3,585,449$ -60.38%(5,464,590) Enterprise Funds Water Utility Enterprise Fund$ 1,473,094$ 1,473,094$ 1,569,265$ 1,693,261$ 123,9967.90% Sewer Utility Enterprise Fund2,079,356$ $ 2,079,356$ 2,382,064$ 2,607,944$ 225,8809.48% Storm Sewer Enterprise Fund$ 880,210$ 880,210$ 490,738$ 504,496$ 2.80%13,758 Non-major Enterprise Funds$ 1,289,931$ 1,289,931$ 1,340,993$ 1,395,450$ 4.06%54,457 Major Funds are in bold type 2016 BUDGET 28 CITY OF HOPKINS Summary of Budgeted Funds GENERAL FUND 2014201520152016Budget ActualActualBudgetBudgetDifference% age REVENUES Property Taxes$ 8,953,481$ 9,113,565$ 9,307,729$ 9,796,9515.26% 4 89,222 Intergovernmental956,514 1,043,085 843,1125.79% 8 91,954 4 8,842 Licenses, Permits & Fines780,586 569,975 7 06,791 5 75,775 5 ,8001.02% Charges for Services295,066 209,300 188,900(20,400)-9.75% 2 85,911 Miscellaneous68,849 8 4,420 1 26,600 1 32,150 5 ,5504.38% Franchise Fees300,789 290,000 3 00,390 2 90,000 - $ 11,534,16211,355,285$ 11,346,716$ 11,875,730$ 529,0144.66% APPROPRIATIONS Council$ 71,519$ 82,266$ 70,417$ 79,708 9 ,29113.19% Administrative Services517,507 527,051 5 23,849 5 31,969 4 ,9180.93% Finance258,994 256,0818.17% 3 59,990 2 76,993 2 0,912 Legal171,685 145,000 1 56,835 1 50,000 5 ,0003.45% Municipal Building 324,246 3 04,697 3 19,352 3 33,611 9 ,3652.89% Community Services 1,013,372 1,025,3831,030,7371,089,8435.73% 5 9,106 Police 4,396,663 4,515,3894,511,8904,737,7345.01% 2 25,844 Fire 1,084,506 1,038,2921,105,11012.08% 9 85,987 1 19,123 Public Works 2,422,216 2,332,9052,503,9362,580,6213.06% 7 6,685 Recreation585,914 589,560632,8947.35% 6 04,955 4 3,334 Planning123,993 135,162 1 34,289 1 53,872 1 8,71013.84% Community Development87,1240% 9 0,387 9 1,449 1 21,875 3 0,426 Unallocated25,338 -53.48%(93,700) 4 4,630 1 75,200 8 1,500 $ 11,228,52211,063,528$ 11,346,716$ 11,875,730$ 529,0144.66% SPECIAL REVENUE FUNDS 2014201520152016Budget ActualActualBudgetBudgetDifference% age REVENUES Chemical Asses. Team$ 63,949$ 77,731$ 45,000$ 60,000$ 15,00033.3% Economic Development650,707 288,07223.6% 6 98,288 3 56,113 6 8,041 Parking106,934137,82043.0% 9 6,500 1 38,000 4 1,500 Communication265,949 250,0002.8% 2 72,573 2 57,000 7 ,000 Depot Coffee House366,662 343,0000.3% 3 76,057 3 44,100 1 ,100 Art Center679,223 787,121 7 77,392 7 87,108 ( 13)0.0% Tax Incr Financing (7 funds)2,745,413 2,997,3732,728,3942,758,7521.1% 3 0,358 $ 4,878,837$ 5,337,234$ 4,538,087$ 4,701,073$ 162,9863.6% APPROPRIATIONS Chemical Assess. Team75,313$ $ 97,568$ 45,000$ 60,000$ 15,00033.3% Economic Development362,524 240,828 176,600(64,228)-26.7% 4 25,682 Parking106,655 139,404 359,600158.0% 2 01,214 2 20,196 Communication192,918 244,264 223,773(20,491)-8.4% 2 28,264 Depot Coffee House373,566 333,3591.4% 3 51,552 3 38,142 4 ,783 Art Center755,475 999,277 903,667(95,610)-9.6% 7 63,815 Tax Incr Financing (7 funds)2,134,672 1,507,9951,752,21216.2% 8 35,953 2 44,217 $ 4,001,123$ 2,904,048$ 3,510,127$ 3,813,994$ 303,8678.7% 2016 BUDGET 29 CITY OF HOPKINS PROPRIETARY FUNDS 2014201520152015Budget ActualBudgetBudgetDifference% age Actual REVENUES Water$ 1,513,774$ 1,513,774$ 1,675,400$ 1,553,500$ (121,900)-7.3% Sanitary Sewer 2,117,430 2,117,4302,208,7002,277,200$ 68,5003.1% Refuse955,602 949,800$ 31,3673.3% 9 55,602 9 81,167 Storm Sewer811,842 803,000$ 1,0000.1% 8 11,842 8 04,000 Pavilion/Ice Arena388,421 455,600-0.8% 3 88,421 4 52,100 ( 3,500) $ 5,787,069$ 5,787,069$ 6,092,500$ 6,067,967$ (24,533)-0.4% APPROPRIATIONS Water$ 1,473,094$ 1,473,094$ 1,569,265$ 1,693,261$ 123,9967.9% Sanitary Sewer 2,079,356 2,079,3562,382,0642,607,944225,8809.5% Refuse838,057 903,3764.2% 8 38,057 9 40,973 3 7,597 Storm Sewer880,210 490,7382.8% 8 80,210 5 04,496 1 3,758 Pavilion/Ice Arena451,874 437,6173.9% 4 51,874 4 54,477 1 6,860 $ 5,722,591$ 5,722,591$ 5,783,060$ 6,201,151$ 418,0917.2% DEBT SERVICE FUNDS (all funds) 2014201520152016Budget ActualBudgetBudgetDifference% age Actual REVENUES Property Taxes$ 1,589,092$ 1,530,837$ 1,514,844$ 2,799,325$ 1,284,48184.8% Special Fees 1,020,853 906,5090.3% 8 28,529 9 09,355 2 ,846 Miscellaneous211,118453,427 182.6%10,137 5 ,550 1 5,687 Proceeds from Bond Sale8,240,000 18,735,000 - - - #DIV/0! Operating Transfer In 6,967,005 650,291 391,277-39.8% 7 56,248 ( 259,014) $ 22,304,04118,028,068$ 3,077,194$ $ 4,115,644$ 1,038,45033.7% APPROPRIATIONS Bond Principal$ 1,970,000$ 8,570,000$ 8,570,000$ 3,075,000$ -64.1%(5,495,000) Bond Interest 617,988 814,19931.7% 6 83,725 6 17,988 1 96,211 Miscellaneous other charges 147,766336,430 1 7,851 2 3,351 5 ,50030.8% 3,937,887- - - - #DIV/0! Transfer out 8,269,466 7,118,707 170,000--100.0% ( 170,000) $ 20,581,01211,070,957$ 9,375,839$ $ 3,912,550$ -58.3%(5,463,289) Total Revenues 40,049,259 44,962,50625,054,49726,760,414 1,705,9176.8% -14.0% Total Appropriations31,858,199 40,436,173 30,015,742 25,803,425 (4,212,317) Use of Equity or Fund Balance(8,191,060) (4,526,333)4,961,245(956,989) (5,918,234)-119.3% 2016 BUDGET 30 CITY OF HOPKINS APPROVED BUDGET SUMMARY – ALL FUNDS REVENUE SUMMARY The total budget represents planned or anticipated revenues for all funds, excluding unbudgeted special revenue funds and capital project funds. The amount of the annual total anticipated revenues fluctuates up or down from year to year, depending on special projects and grants which may occur during the plan budget period. The budget provides guidelines to staff for City operations. Property Taxes: One purpose of the budget is to communicate the financial plans for the City and its allocation of resources. The budgeted revenues for all funds total $26,698,314. The largest source of revenue by category is property taxes of $15,745,089 comprising 60% of total revenues. Property taxes are levied to support the general fund activities, help pay debt and provide tax increment redevelopment funding sources. Successful tax increment projects have helped create a larger tax base for the City. Currently the City is collecting tax increment revenues from several districts to pay off redevelopment notes, redevelopment bonds and help in future redevelopment costs of properties within certain districts. Levy limits have been on again and off again since 2004. They were back on in 2014 but were off again in 2015 and remain off for 2016. Levy limits while providing assurances to taxpayers do give the City the additional challenges in meeting citizen’s requests for sustained services or in some instances increased services. In 2016 budgeted taxes increased in total by 8.85% primarily for as a result of new G.O. debt and levies for the Arts Center and Pavilion. The General Fund had a small increase in the levy due to increases in expenditures that were not offset by other revenue sources. Intergovernmental Revenues: Total $1,067,921 or 4.08% of the City’s revenues. The City currently receives highway funding, police and fire aid, chemical assessment grants, PERA aid, fire grants, Community Development Block Grant funds and other miscellaneous state grants. Estimates for intergovernmental revenues are based on known revenue sources and projections are based on information from the various state and county agencies from which the revenues are received. The city has reduced it reliance on revenues from state and federal governments due to decreased availability and reduced funding in the various state programs. Over the past several years the city has been successful in getting grants for specific projects. Those projects are not budgeted due to the uncertainty in the success of our application for those funds. In 2014 the City once again received local government aid from the State. This revenue sharing program has undergone many changes over the years with Hopkins last receiving funds under this program in 2002. In 2016 we are programed to receive $413,944 that will go to the General Fund and is utilized to reduce the general fund tax levy. In 2015 the City received several grants that were not part of the budget and helped fund specific programs. Those programs are not expected to continue in 2016. The City’s policy is to only budget for grants that have been approved before the budget is adopted as there is no guarantee of the award. 2016 BUDGET 31 CITY OF HOPKINS Utility Fees: For water, sewer, refuse and storm sewer account for $5,438,967 of the City’s revenue or 20.77%. In 2007 a utility master plan was completed then revised in 2009, 2011 and 2013 for the water, sewer and storm sewer funds looking at anticipated revenues, expenditures and planned capital improvements. The rate structure for each fund was then adjusted to meet those needs. Beginning in 2008 and going forward rates are adjusted as set forth in the utility master plan. In doing so revenues should be adequate to meet the future need of those systems. In 2008 an analysis of the Refuse fund was also done and rates were adjusted to ensure we continue to meet operational and capital needs. In 2016 rates for refuse and recycling were increased. Rates for water, sewer and storm sewer were not increased as the City is once again undergoing a comprehensive review of its rate structure and plans to implement a tiered rate structure for water and sewer to encourage conservation. Revenue projections are based on the original Utility Master Plan as developed by the City Engineer. The increase in revenues is derived from a combination of increased consumption and increased fees. In 2016 rates were increased $1 for each tier of garbage service and $0.50 for the recycling program. Due to recent development of multi-family housing we expect our water consumption to increase for 2016. Charges for Services: Other than utilities are $1,796,195 or 6.86% of the City’s revenues. The City charges for plan reviews, special police or fire services, parking permits for city parking facilities, facility rental, concessions and ice time. A large portion of the charges for services include plan review fees from building permits which are on the rise again with new development. The variance in revenues between years is due to development projects and the related plan review fees. Finance relies on plan review fee projections prepared by the City’s Building Official and input from departmental managers on the level of activity expected in their departments when setting the budget for this revenue category. While there are several other development projects on the horizon the City budgets conservatively on plan review fee income due to the uncertainty of the development market which can change depending on developers funding for their proposed projects. Special Assessments: and Special Assessment Fees for housing projects are $909,355 or 3.47% of City revenues. Special Assessments are levied for street, sidewalk, alley, water, sewer or storm sewer improvements that benefit private property. Special Assessment fees are assessed every year to the specific housing properties that benefited from the development projects. These projects allowed the City to improve the value of the housing stock in several townhome and condominium developments. Special assessment revenues fluctuate with the number and amount of assessable projects and have remained relatively stable the last few years. In 2013 and 2014 the City received a large number of pre-payments on 15-year special assessments scheduled to go on the taxes for 2014 and 2015 As a result of the pre-payments revenues 2016 BUDGET 32 CITY OF HOPKINS in future years will be reduced. Special assessment revenue projections are based on the special assessment rolls and scheduled payments due in the budget year. Permits, Licenses and Fines: are $597,775 or 2.28% of revenues. Permit revenues are dependent on the economy and on future development of the City. In 2013 and 2014 due to several large commercial redevelopment projects the City had a very strong years in building permit income. While there are other projects in the works the City chooses not to rely on that income until it becomes reality, therefore building permit income continues to be budgeted conservatively based on an average of the past 10 years. The permit fee revenue projection was prepared by the City’s Building Official based on knowledge of pending and anticipated projects. License revenue is based on the types of businesses licensed by the city and past year’s collections. Those revenues remain stable. The City also budgets conservatively for fine revenue as that revenue stream is unpredictable. Fine revenue is only received once the fines are collected by the State of MN which then remits Hopkins’ portion to them. Parking permits and ticket revenues remain stable. Franchise Fees: In addition to the franchise fee collected on cable television, a franchise fee on electric and gas utilities was implemented in 2004 to help offset the loss of state aids. It impacts residential properties by $2.20 per month on both the electric and gas utility bills. The rate progresses higher for multiple dwellings and commercial properties. Total franchise fees collected in 2016 will be about $545,000 or 2.085% of City revenues. While franchise fees on electric and gas remain stable there is federal legislation that may limit the future of cable TV franchise revenues and therefore a more conservative approach was taken to that portion of the franchise fee budget. In 2012 and 2013 due to changes in local government programming the City received additional cable franchise fees for public, education and government (PEG) programming. While we anticipate receiving PEG fees in 2016 we do not know the exact amount so have set the budget conservatively. PEG fees received are restricted in use to provide public access to city council and other public meetings. The city is currently using the funds to provide live streaming of city council and other public meetings and to archive the meetings for future public web streaming access on the city’s website. Total 2015 Actual Revenues: Increased from 2014 as a result of grants received, higher than expected building permit, plan review, fine revenues, franchise fees and four bond sales. The City has continued to be conservative in preparing the 2016 budget realizing the challenges our taxpayers continue to face as a result of the economy. The City workforce has remained stable with many long-term employees. Like other cities we continue to do more with less and work to maximize the budget dollars we do have to work with. Staff has been very conscientious in the management of departmental budgets which has allowed us to maintain staffing while providing the same level if not better services to the public. 2016 BUDGET 33 CITY OF HOPKINS Major Revenue Trends: Shown to the right is a chart showing the trends of three of our major revenue sources. Taxes include both property taxes and tax increments. Taxes continue to increase as other sources of revenue decrease and new tax increment projects come on the tax rolls. Intergovernmental revenues have declined over the last several years; however we were successful in receiving federal COPS grant, a fire prevention and safety grant along with Local Government Aid. Intergovernmental revenues are less reliable so the city has been decreasing its dependence on that source of income. Tax revenues have risen to fill that gap; however we continue to seek other revenue sources to meet out budget needs which include grants. Shown below is a chart showing the relationship between all revenue sources. 2016 BUDGET 34 CITY OF HOPKINS APPROPRIATION SUMMARY Appropriations for all funds total $25,803,425. This is less than anticipated revenues for 2016 and results in an increase of fund balance of $956,989 overall as funds on hand are used for planned projects. The special revenue funds will add $887,079 where certain funds such as the parking fund and arts center fund are working to rebuild fund balance and tax increment revenues exceed current needs and $203,094 is from enterprise funds as we work to rebuild fund equity and bring the water and sewer fund to a more stable financial position. The largest source of appropriations by category is employee salaries and benefits at $11,493,216. Employee salary and benefits make up 44.16% of the City’s annual appropriation and represent a 3.4% increase from 2015 actual. In 2016 employees received a 2 increase with 2-year union contracts going until 2016. Other factors impacting salaries and benefits are increasing health care insurance costs and state mandated pension contributions. Also contributing to the increase is scheduled step increases as employees gain experience and receive various accreditations. Materials, supplies and services make up 28.09% of appropriations at $7,312,538. This amount represents a 6.09% increase from 2015 actual. The increase is due to an increase in the use of contractual services used by various city departments. The costs in this category comprise of consulting, professional services, office and general supplies, disposal costs, expenditure reimbursements and general operating costs. Capital outlay and improvements can fluctuate substantially every year. In 2016, the appropriated amount is $376,600 or 1.45% of total appropriations. Anticipated capital costs are for diagnostic equipment upgrades at the Public Works building, improvements at the municipal parking ramp, technology upgrades in the council chambers and a number of improvements at the Arts Center including landscaping, general building improvements, theater improvements and a number of other smaller projects. Staff was instructed to keep capital items at a minimum as funding restrictions continue to present challenges in budgeting. In addition the City allocates equipment replacement costs to its general and special revenue funds to ensure that resources are available for replacement of equipment when scheduled or necessary. The charges for equipment replacement are recorded in the materials supplies and services categories as they do not directly relate to specific capital outlay expenditures but rather the cost of using city assets. Debt service appropriations in 2016 decreased 59.74% as a result of bond calls in 2015. Total appropriations for 2016 are $5,576,615 which includes pay-as-you-go tax increment obligations. The 2016 expenditures represent 21.42% of total expenditures and include debt paid within the Enterprise Funds. Another 2.98% of appropriations are for depreciation of property and equipment. The six largest programs of the City in 2016 account for 91% of the appropriations budget and are as follows: Public Safety 5.9 million Utilities (water, sewer, storm sewer, refuse) 5.7 million Debt Service 3.9 million Public Works 2.9 million General Government 2.8 million Recreation 2.3 million 2016 BUDGET 35 CITY OF HOPKINS 2016 BUDGET 36 CITY OF HOPKINS REVENUES - ALL FUNDS COMPARATIVE ANALYSIS BY SOURCE ADOPTED 2013201420152016 SOURCEACTUALACTUALACTUALBUDGET Current Revenues PROPERTY TAX$10,476,635$10,779,711$11,167,907$13,033,089 TAX INCREMENT2,002,6072,697,0062,920,6812,712,000 SPECIAL ASSESSMENTS1,329,7761,329,776828,529909,355 LICENSE, PERMITS & FINES908,241801,760722,558597,775 INTERGOVERNMENTAL REVENUE969,3231,316,7091,432,3431,067,921 S1,585,4151,484,3701,530,1601,420,921 CHARGES FOR CURRENT SERVICE INTEREST ON INVESTMENTS62,621142,886197,34681,497 UTILITY SERVICE CHARGES5,031,7425,089,5515,254,1105,438,967 FRANCHISE FEES546,056561,893566,756545,000 OTHER REVENUES341,053252,253764,431375,274 TOTAL CURRENT REVENUES$23,253,469$24,455,915$25,384,821$26,181,799 Other Financing Sources1,239,884 -18,735,000 2,984,885 TOTAL REVENUES$24,493,353$27,440,800$44,119,821$26,181,799 Add: Inter-Fund Transfers1,239,8841,022,875875,038516,515 TOTAL REVENUES$25,733,237$28,463,675$44,994,859$26,698,314 EXPENDITURES/EXPENSES - ALL FUNDS COMPARATIVE ANALYSIS BY OBJECTIVE ADOPTED 2013201420152016 OBJECTIVEACTUALACTUALACTUALBUDGET Current Expenditures/Expenses SALARIES AND EMPLOYEE BENEFITS$10,425,969$10,658,678$11,115,039$11,493,216 MATERIALS, SUPPLIES AND SERVICES6,440,0706,699,2616,892,9307,312,538 CAPITAL OUTLAY13,8262,386120,254376,600 DEPRECIATION772,908720,554779,685775,000 DEBT REPAYMENT5,689,2874,496,87313,851,1615,576,515 TOTAL$23,342,060$22,577,752$32,759,069$25,533,869 Other Financing Uses3,065,7869,278,3087,646,627494,238 TOTAL EXPENDITURES$26,407,846$31,856,060$40,405,696$26,028,107 2016 BUDGET 37 CITY OF HOPKINS PROPERTY TAXES Tax Capacity & Market Values The growth in tax capacity from 2006 thru 2010 reflects overall increased market value of property in Hopkins from redevelopment. During the years 2011-2013 the housing market saw significant declines across the country and Hopkins was no exception. To the right depicts tax capacity value over the last ten years. Despite market conditions Hopkins continued to have growth due to commercial development that was already in place when the market turned. One significant development added over $40 million to the tax base and several smaller projects were completed in 2008-2010 also adding to the tax base. Like the rest of the country Hopkins residential housing values have been falling over the last several years so any gains as a result of commercial development has been tempered by the fall of residential housing values. One bright spot on the horizon is that the commercial projects recently completed added tax capacity for the 2015 rate that is used for 2016 taxes. We are slowly seeing the housing market recover and that too will increase the tax capacity. The City of Hopkins had been experiencing steady growth in its residential property values, however in the last several years Hopkins residential values like values across the country, have fallen. One goal of the city council is to preserve the current housing stock and promote housing growth. While the values have fallen we are seeing them start to increase which will add to the tax capacity. We aren’t seeing the increase in housing value add significantly to the tax capacity due to the Market Value Homestead Credit which removes a portion of homeowner’s values from the tax rolls. This credit is reduced as the value of a home increases until it is phased out entirely at about a home value of $400,000. Other property classes primarily commercial have increased slightly which has mitigated the overall decrease in market values . 2016 BUDGET 38 CITY OF HOPKINS Changes in property values The chart at the left shows the percentage of homeowners that saw value changes in their property. About 22.6% saw decreases in their property values, however, a much greater percentage, 77.4% had between .1% - to over 20% increases in values, an excellent sign that some home values are once again on the increase. The City’s levy is allocated against the tax base along with the levies for the school district, county and miscellaneous government entities. An average home in Hopkins in 2015 is valued at $225,000. Total taxes of $3,561 on an average home in Hopkins helps pay for all levels of governmental services. The chart to the right shows the components of City of Hopkins taxes by taxing district. City Property Tax Levy CITY Shown to the left is the annual cost of taxes on a home valued at $225,000 both on a constant basis and with the change in value over the years. The increase in 2011 is primarily due to the change in the fiscal disparities program as Hopkins became a net contributor following several years as a net recipient. The fiscal disparities program shares commercial growth across the Minneapolis/St. Paul metropolitan area with cities having little or no growth getting more from the pool than cities that have had commercial growth. Due to Hopkins’ $40 million commercial development project and being one of the few cities with any significant commercial activity we became a net contributor to the program. This shifted a portion of our tax base into the pool resulting in higher taxes for Hopkins residents. Taxes continued to rise in 2012 and 2013 as a result of the fiscal disparities program before leveling off in 2014. Taxes will increase in 2016 due to new debt levies and an increase in the levy for the Arts Center. 2016 BUDGET 39 CITY OF HOPKINS This residential property owner in Hopkins will experience a modest $46 increase in City property taxes in 2016. The total City taxes on a $225,000 home would be $1,415 in 2016 as compared to $1,369 in 2015. This is a direct result of adding tax base due to new development. Shown below is a summary of annual costs an average homeowner would expect to pay living in Hopkins. Water and sewer rates were not increased for 2016 as the City is in the process of evaluating rates in preparation for implementing a tiered rate structure in mid-2016. Refuse rates are analyzed each year and if necessary are only increased every couple of years and were increased by $1for 2016, along with a $0.50 recycling rate increase. The storm sewer rate is not expected to increase in the near future. rd Hopkins utility rates continue to rank in the lower 1/3 of the Minneapolis/St. Paul metropolitan area. 2016 Annual Property Tax Cost (average home) Annual Service Cost Council$8.91 Administrative Services$59.48 City of Hopkins Average Annual Service Costs Finance$29.35 on an Average Home. Legal$2.80 20162015 Unallocated $9.11 City Property Taxes$1,415.00$1,369.00 Municipal Building$37.30 Water - Consumption Community Services$80.88 7,500 gallons a month Police$484.91 $196.20$196.20 $2.18/1,000 gallons Fire$111.43 Sewer - Consumption Public Works$271.09 7,500 gallons a month Recreation$28.30 $387.00$387.00 $4.30 1,000 gallons Activity Center$34.47 Refuse Collection$262.20$250.20 Planning and Community Development$20.71 Storm Sewer$60.00$60.00 Pavilion$7.27 Arts Center$15.65 Franchise Fees$52.80$52.80 Debt$213.33 Total$2,373.20$2,315.20 Annual Cost for City Services$1,415.00 City Levy – By Purpose 20162015 General Fund$9,676,451$9,224,7294.90%increase Debt$1,907,878$1,514,84425.95%increase PERA$35,500$35,500100.00%no increas e Pavilion$65,000$65,000100.00%no increas e Arts Center$140,000$85,000100.00%increase Capital$125,000$53,000135.85%increase Total Levy$11,949,829$10,978,0738.85%increase In 2016 the City continued its property tax levy for the purpose of funding the debt for the construction of the new fire station, replacing the public works storage facility and remodeling the police station. In 2016 levy limits were once again eliminated. City tax capacity rates of 65.672% result in payments of $1,415 annually or approximately $118 per month for the average homeowner. Net property tax costs by program, was developed by crediting related revenues against appropriate programs expenditures. 2016 BUDGET 40 CITY OF HOPKINS Net annual property tax costs for program budgets Streets & Park Maintenance Debt Police Protection $271.09 $213.33 $484.91 Fire ProtectionAssessing, Inspections & Council & Administration $111.43City Clerk $109.65 $80.88 Recreation Building Maintenance Planning & Zoning $62.77 $37.30 $20.71 Pavilion Arts Center $7.27 $15.65 The City’s overall net levy increase is 8.85%. The general fund levy increased in 2016 by 4.9% or $451,722. A $35,500 special levy for pension increases that was eliminated in 2014 was reinstated for 2015 and continues for 2016. The debt levy was increased due to a street improvement levy and for park and parking lot improvements. The debt levy increase was 25.95% or $393,034. The capital levy was increased back to $125,000 after being reduced in 2015 to $53,000 to provide for needed capital improvements. A levy for the Pavilion and Arts Center that was added in 2015 continues in 2016. These levies were implemented to provide operational funds for these two facilities that were not cash flowing. The total levy increase for 2016 is $971,756. Despite the significant increase the tax rate only increased by 3%. This is due to new tax base that was added in 2015 from the development projects that were completed. Fire Chief Dale Specken and Mayor Molly Cummings receive a Fire Prevention Safety Grant in recognition of the City’s commitment to protecting our community. 2016 BUDGET 41 CITY OF HOPKINS Shown to the left are the PRINCIPAL TAXPAYERS main taxpayers in the City of Percentage Hopkins and their Taxof Total Tax percentage of total tax TaxpayerType of BusinessCapacityCapacity capacity. The largest taxpayer comprises 7.6% of Colfin Midwest NNN Inv LLCReal Estate$1,636,8207.60% total tax capacity and the Super ValuGrocery Warehouses969,8904.50% next largest taxpayer Hines Reit Mpls Ind, LLCManagement Services845,5903.93% comprises 4.5%. The city Greenfield ApartmentsApartments365,4381.70% has a diverse and stable tax Duke Realty LTD PartnershipOffice/Warehouses243,9901.13% base, which provides the city with assurance that tax Ramsgate ApartmentsApartments233,4751.08% revenues will remain stable Southwest Real Estate, Inc.Apartments225,4031.05% against the loss of a Hopkins Real Estate LLCCar Dealership210,2500.98% significant taxpayer. Westside Property OwnersApartments199,2500.93% City Center Ventures LLCFitness Center170,3100.91% City's Total Tax Capacity$21,540,415 PRINCIPAL EMPLOYERS Percentage of Total TaxpayerType of BusinessEmployeesEmployment CargillFood, agricultural, financial and industri4,00026.274% SuperValuGrocery distributor7074.644% ISD 270 HopkinsSchool4252.792% ThermotechPlastic mold manufacturer4002.627% US Post OfficePost Office3142.063% Oak Ridge Country ClubCounty/Golf Club2121.393% Augustana Chapel View Care CenterHealth Care Services2101.379% US BankFinancial Institution1851.215% City of HopkinsMunicipal Government1320.867% Walser Chrysler Dodge Jeep RamAutomotive Dealership1000.657% Major employers in Hopkins include Cargill an international producer and marketer of food, agricultural, financial and industrial products, followed by Super Valu, a grocery distribution warehouse facility and ISD 270 Hopkins. While these three organizations employ almost 31% of the workforce in Hopkins the City has a diverse group of employers who have had a long-term presence in the City. Changes in Fund Balance Major Funds Fund balance is defined as the difference between a fund’s assets and liabilities. Adequate fund balance is necessary to have funds for emergency or unexpected events, to enhance the City’s financial position and bond ratings, to provide cash for operations prior to receipt of tax revenues and to maximize investment earnings. Working capital balance, defined as current assets less current liabilities is carefully monitored to ensure enough financial flexibility to meet both short and long-term goals for each fund. 2016 BUDGET 42 CITY OF HOPKINS Estimated YE 2015 Fund Balance/% Change$ ChangeReason for WorkingEndingin Fundin FundGreater than Fund NameCapital*RevenuesExpendituresBalanceBalanceBalance10% Variance Major Funds General Fund$5,787,703$11,875,730$11,875,730$5,787,7030.00%$0 Economic 4,394,619356,113176,6004,574,1324.08%179,513 Development Special Revenue Fund Art Center(1,158,334)787,108946,714(1,317,940)-13.78%(159,606)Capital projects are scheduled for 2016. The Financial Managementy Plan provides for the elimination of the negative fund balance over a 10-year period. Permanent 564,8263,603,8423,898,728269,940-52.21%(294,886)Street reconstruction Improvement projects for 2016 are Revolving Fundscheduled. Bonds will be sold to finance this project. Housing Improv 687,622407,756327,217768,16111.71%80,539Debt service revenues Refunding Bonds of from taxes are greater 2009B Debt than expected. Funds Service Fundwill be used to eventually call the bonds. Water Enterprise 164,2531,553,5001,542,761174,9926.54%10,739Bonds are scheduled to Fund *be sold in 2016 for the 2016 street & utility project. Sewer Enterprise 398,9942,277,2002,436,244239,950-39.86%(159,044)Bonds are scheduled to Fund *be sold in 2016 for the 2016 street & utility project. Storm Sewer (84,215)804,000627,49692,289209.59%176,504Reveneus in 2016 will be Enterprise Fund *used to finance projects in 2015 that caused this funds deficit. The general fund added approximately $305,640 to its fund balance in 2015. This was accomplished by all departments managing their budgets conservatively, reducing or eliminating expenses when appropriate and eliminating non-essential capital items. In addition, the recovering economy brought in inspection permit fees and charges that exceeded the budget and added to the fund balance. The 2016 budget was adopted with 2% wage increase including the addition of two full-time firefighters and a continuation of conservative budgeting. This is done to keep the levy increase at a minimum recognizing that the economic challenges faced by our taxpayers continue. The general fund is on target with its fund balance goal of 42% of prior year’s expenditures and is at 51% of expenditures. This has been accomplished by the reductions identified above and all department managers being particularly conscious of their budgets. Staff continues to work to address how to improve the financial position so that we maintain our fund balance goal. This may involve new or revised revenue options, expenditure adjustments or a combination of all these options. The Economic Development Fund’s 2015 tax revenue collections were over budget as excess tax increment revenues were received. These are revenues over and above what is required in the tax 2016 BUDGET 43 CITY OF HOPKINS increment plans and therefore are reported in the Economic Development fund to be used for future development. The Economic Development fund provides the funding to assist in development efforts in Hopkins. It has a strong fund balance with available resources to assist potential development efforts. The main source of income is a development tax levy which has increased each year. There is a significant fund balance in this fund that is available for economic development but the long term goal is to ensure that revenues are adequate for planned expenditures. The 2016 budget will add about $179,000 to fund balance as a continued effort to provide funding for future development incentives. The Art Center has yet to meet its fund balance goals due to the amount of debt as a result of building the facility in the mid-1990’s. The Art Center has long-term lease arrangements with a theater company, the school district and an arts group that fund operations. It also receives supporting transfers from the Communication fund. In 2013 staffing was restructured to minimize expenses and is continually evaluated to ensure budget goals are met while meeting the needs of the users. The Arts Center is has been evaluating past programming and is looking at trying new performance and artist options that will appeal to a wide audience. The Art Center funding issues were addressed in the Financial Management Plan that was adopted for 2014 and calls for an annual levy starting in 2015 to eliminate the negative fund balance. It is anticipated that the negative fund balance will be eliminated in 10 to 11 years. The Permanent Improvement Revolving Fund will decrease its fund balance in 2016 as bond funds from 2015 are used to complete the 2015 street improvement projects. It is anticipated that we will again be selling bonds in 2016 for the 2016 street improvement project. The Housing Improvement Refunding Bonds of 2009B meets its fund balance requirements as set forth in the debt covenant. The Water Enterprise Fund’s working capital remains positive due to the sale of bonds for the water portion of the street improvement project in 2015. The increases implemented pursuant to the Utility Master Plan that was approved in 2007 continue to 2015. We are currently working on a revision of the comprehensive rate study as part of the long-range Financial Management Plan with assistance from our financial advisor and are looking at implementing tiered rates in mid-2016 as a means to encourage water conservation. As the development of multi-family housing has increased so has our water consumption. The Sewer Enterprise Fund’s working capital will move into a negative position as planned projects exceed available funds. As a result the City will need to sell bonds to finance those projects. The increases implemented pursuant to the Utility Master Plan that was approved in 2007 continued to 2015. The plan calls for annual incremental increases in sewer rates to adequately provide for operations, and capital projects, however fees paid to the Metropolitan Council for wastewater treatment costs have risen faster than projected. We are currently working on a revision of the comprehensive rate study as part of the long-range Financial Management Plan with assistance from our financial advisor and are looking at modifying the rate structure in 2016. The Storm Sewer Enterprise Fund’s working capital will increase in 2015 as scheduled projects are less than in past years. The Storm Sewer Fund will also be included in the comprehensive rate study as part of the long-range Financial Management Plan to be done in 2016 with assistance from our financial advisor. Downtown Hopkins at night 2016 BUDGET 44 CITY OF HOPKINS Non-Major Funds Estimated YE 2014 Fund Balance/% Change$ ChangeReason for WorkingEndingin Fundin FundGreater than Fund NameCapital*RevenuesExpendituresBalanceBalanceBalance10% Variance Non-Major Funds Special Revenue Funds Chemical 1,30060,00060,0001,3000.00%0 Assessment Parking120,845138,000359,600(100,755)-183.38%(221,600)Ramp repairs are scheduled for 2016 that will use fund balance. Future revenues are expected to cover this temporary fund deficit. Communications521,788257,000223,773555,0156.37%33,227 Depot Coffee 2,475349,100338,14213,433442.75%10,958Coffee shop operations Housewere evaluated and changes made so that this fund can build fund equity for future projects. Tax Increment 3,372,6822,759,1521,789,6044,342,23028.75%969,548Funds collected are Funds replenishing negative fund (aggregate)balance as the districts tax collections increase Debt Service 4,072,7384,205,6834,059,7754,218,6463.58%145,908 Funds (aggregate) Enterprise Refuse *856,584981,167884,973952,77811.23%96,194Revenues are being used to provide for future capital expenditures Pavilion *50,759384,600507,477(72,118)242.08%(122,877)Bonds will be sold to cover capital expenditures for this facility. The Chemical Assessment fund is part of the State Chemical Assessment Team program where seven teams are placed around the state to respond to hazardous waste calls. Hopkins has one of the teams that is supported by the Fire Department and fully funded by the state. The expenditures are reimbursed in full by the state, however some costs remain unreimbursed. In 2015 a portion of those unreimbursed costs were absorbed by the General Fund Fire Department budget The Parking fund, fund balance will decrease in 2016 as for the parking ramp masonry repair project. Parking permit fees were increased in 2016 to ensure revenues were adequate for the operation of the parking ramp and the various city lots. The city will need to increase parking fees by approximately 10% every other year to provide adequate funds to maintain the parking lots and cover operations. The Communication fund continues to support the advertising and promotion of the Art Center by transferring $86,920 annually to the Arts Center. The city has a part-time web and newsletter editor position which is funded with cable TV franchise fees. The council and staff continue to work at relieving the Art Center promotional activity expense burden from the communication fund. Currently this fund exceeds its fund balance goals. 2016 BUDGET 45 CITY OF HOPKINS The Depot Coffee House is a chemical free environment for area teens that provides specific programming of interest to them. The Depot Coffee House Youth Project is being supported by the General Fund with a $15,000 transfer as well as the Hopkins-Minnetonka Joint Recreation program ($15,000) and Three Rivers Park District ($15,000). The coffee shop portion of the Youth Center is a successful venture of the Depot and provides funding for the Youth Project. This funding has helped replaced grant funding that has dried up. The teens are excited to be involved in all aspects of the coffee business while learning vital business skills. In conjunction with the coffee business we offer rental of the facility when not used by the youth and we anticipate increased revenues from that source that will supplement the budget. Higher than expected revenues along with staffing changes in 2015 resulted in the elimination of the deficit from 2014. With the changes made we expect that the coffee shop will continue to provide support for the youth programming and provide adequate funds for cash flow. Tax Increment fund balance may be used to retire tax increment debt early. Currently most tax increment funds meet their combined fund balance goals. Debt Service fund balance may be used to retire general obligation debt. All debt service funds meet their debt service needs. The Refuse Enterprise Fund has several programs that are subsidized by the refuse rates. The City has explored charging separate fees for these services but has met with resistance from the public. Staff continues to explore options for having these programs generate at least some revenue. Refuse rates were increased in 2016 by $1 as well as the recycling rates which were increased by $0.50. Working capital continues to be adequate for this operation. The Pavilion Ice Arena will show a net loss in 2015 due to needed building projects; staff continues to actively marketing the facility to various groups to increase off season rental income and eliminate the negative cash position. These efforts are paying off as rental bookings are again up for 2015 and the facility is seeing repeat bookings. The facility has debt from equipment certificates sold in 2012 that was used to purchase a new ice machine in 2013. With the facility aging the City looked at long-term capital needs and has started to plan for their financing. The Pavilion is also part of the overall long-range Financial Management Plan that was completed for 2014. Debt Overview The City of Hopkins has been conservative in its debt issuance practices and holds Standard and Poor’s’ AA+ debt ratings. In January 2014 the city was very pleased to receive a bond rating upgrade by Standard and Poor’s from AA to AA+. This rating was upheld for each of the four bonds issued in 2015. Standard and Poor’s stated that this is based on the city’s maintenance of very strong reserves and “good” Financial Management Assessment. The City’s total outstanding debt on December 31, 2015, was $44,010,000. After reducing the outstanding debt by the amount supported by utilities and special fee the per capita debt at December 31, 2015 is $1,159. The total debt principal and interest due in 2016 is $4,387,993, of which $1,907,878 is raised through direct tax levy. The remaining principal and interest is paid with refunding bonds, direct fees, utility fees, tax increments, and special assessments. As depicted in the graph on the following page debt service requirements continue to decline steadily throughout the remaining terms of the bonds. The requirements drop to $1,229,150 in 2030 and to $195,250 in 2032 before the final issue matures in 2036. The ability to retire 74% of the City’s debt in the next ten years is a major strength. The City is planning on issuing GO Improvement Bonds for the 2016 street improvements in 2016. The actual amount to be bonded is estimated at $4,000,000 and will include as revenue sources a tax levy, utility revenues, and special assessments. Budget impact of the new debt has been factored into the utility funds budgets and the tax levy portion has been factored into the long-range Financial Management Plan. Part of the Financial Management Plan is to minimize tax increases to the taxpayers. Debt that is needed for future projects is part of that plan. 2016 BUDGET 46 CITY OF HOPKINS The graph below illustrates the retirement of debt (principal and interest) in years 2016 through 2036 Minnesota State law limits the amount of G.O. debt for any municipality to 3% of market value, estimated to be $1,605,591,863 in 2015. This limitation provides reasonable assurance of the municipality’s ability to pay. The legal debt limit for Hopkins is $48,167,755; projected debt subject to the legal limit for Hopkins is $21,990,000 or 46% of total debt limit allowed. OUTSTANDING DEBT AND PURPOSE 2015AGO Tax Abatement BondsCottageville Park and Parking Lot Improvements$2,940,000 2015BGO Street Reconstruction BondsStreet Improvements$4,100,000 2015CGO Tax Increment Revenue Refunding Refunding of 2008 HRA Tax Increment BondsRevenue Bonds$4,340,000 2015DGO Tax Increment Revenue Refunding Refunding of 2007 HRA Tax Increment BondsRevenue Bonds$7,355,000 2014AGO Improvement BondsStreet Improvements$1,895,000 2014BGO Refunding Bonds Refund the 2007A and 2007B Bonds6,345,000$ 2013AGO Improvement BondsStreet Improvements$3,440,000 2012AGO Capital Improvement Plan BondsPolice Station Expansion and Remodeling1,430,000$ 2012BGO BondsStreet Improvements$3,935,000 2012BGO BondsEquipment Purchases$ 725,000 2010AGO Improvement BondsStreet Improvements$2,070,000 2010BGO Refunding BondsCounty Road 3 Improvements Phase II (2002B), Street Improvements (2002A), Sewer (2003A)$1,910,000 2009AGO Revenue BondsWater & Sewer Improvements and Refunding of 2000 Water and 1999C Storm Sewer Bonds$1,315,000 2009BGO Taxable Housing Improvement Refunding 1999A & 1999B Housing RefundingImprovement Bonds$1,685,000 2005AGO Tax Increment RefundingOaks of Mainstreet Redevelopment$ 110,000 2005BTaxable General ObligationWestbrooke Patio Homes Improvements415,000$ Total Outstanding Debt December 31, 2015$44,010,000 2016 BUDGET 47 CITY OF HOPKINS SCHEDULE OF DEBT SERVICE REQUIREMENTS – ALL FUNDS TotalTax Increment BondsSpecial Assmnt BondsRevenue Bonds PrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterest 20163,456,000 931,993 695,000 198,760 194,703 380,000 117,794 595,000 20173,465,000 923,277 715,000 282,190 183,409 385,000 108,969 600,000 20183,555,000 848,244 740,000 267,828 171,428 395,000 99,494 620,000 20193,440,000 671,093 780,000 252,428 158,646 405,000 89,563 635,000 20203,520,000 691,931 810,000 235,968 145,188 410,000 78,951 645,000 20213,630,000 607,751 855,000 218,405 130,460 425,000 67,561 660,000 20223,380,000 527,027 890,000 199,703 114,840 425,000 55,781 645,000 20233,385,000 450,939 940,000 178,733 98,965 430,000 43,729 665,000 20242,215,000 386,066 785,000 158,738 82,485 345,000 32,696 680,000 20252,445,000 330,747 975,000 138,744 65,360 355,000 22,696 700,000 20262,370,000 273,112 1,020,000 115,044 47,505 205,000 15,546 720,000 20272,245,000 217,9171,065,000 89,400 520,000 32,284 225,000 11,106 20282,320,000 161,584 1,115,000 61,694 535,000 19,506 225,000 6,045 20292,045,000 104,141 1,165,000 31,281 290,000 8,766 135,000 1,688 20301,170,000 59,150 555,000 7,631 150,000 2,344 - - 2031480,000 35,000 - - - - - - 2032170,000 25,250 2033170,000 20,150 2034180,000 14,720 2035180,000 8,960 2036190,000 3,040 $ 7,292,09244,011,000$ $ 2,436,54413,105,000$ 8,660,000$ 1,455,888$ 4,745,000$ 751,619$ Housing Fee BondsG.O Bonds PrincipalInterestPrincipalInterest 2016675,000 76,247 1,111,000 344,490 2017265,000 57,566 1,500,000 291,143 2018270,000 46,728 1,530,000 262,768 2019285,000 34,720 1,335,000 135,736 2020295,000 21,665 1,360,000 210,160 2021310,000 1,380,0007,440 183,885 2022 - 1,420,000- 156,704 2023 - 1,350,000- 129,513 2024 - 405,000- 112,148 2025 - 415,000- 103,948 2026 - 425,000- 95,018 2027 - 435,000- 85,126 2028 - 445,000- 74,339 Certificate from our last bond rating 2029 - 455,000- 62,406 upgrade in 2014 which was to AA+. 2030 - 465,000- 49,175 2031 - 480,000- 35,000 170,000 25,250 170,000 20,150 180,000 14,720 180,000 8,960 190,000 3,040 $2,100,000$ 244,366$ 2,403,67615,401,000$ 2016 BUDGET 48 CITY OF HOPKINS The following is a schedule of the City’s debt by major and non-major funds. Enterprise Fund debt consists of water, sewer, storm sewer debt and Pavilion. Debt Service Fund debt includes, tax increment debt, special assessment debt, and capital projects debt. Water, sewer, storm sewer enterprise fund debt are major funds, the Pavilion is a non-major fund. SCHEDULE OF DEBT SERVICE REQUIREMENTS – MAJOR AND NON-MAJOR FUNDS Major Enterprise Fund Bonds Total - All FundsSewer Fund BondsStorm Sewer BondsNonmajor EnterpriseTotal Enterprise Funds Water Fund Bonds PrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterest 20163,456,000 931,993 145,000 50,310 105,000 38,643 110,000 26,241 20,000 2,600 380,000 117,794 20173,465,000 923,277 145,000 46,785 105,000 35,730 115,000 24,254 20,000 2,200 385,000 108,969 20183,555,000 848,244 155,000 42,997 105,000 32,656 115,000 22,041 20,000 1,800 395,000 99,494 20193,440,000 671,093 155,000 38,073 110,000 29,493 120,000 20,00020,597 405,0001,400 89,563 20203,520,000 691,931 155,000 35,010 110,000 26,068 125,000 20,00016,873 410,0001,000 78,951 20213,630,000 607,751 165,000 30,710 115,000 22,368 125,000 20,00013,883 425,000600 67,561 20223,380,000 527,027 165,000 26,160 115,000 18,568 125,000 20,00010,853 425,000200 55,781 20233,385,000 450,939 175,000 21,510 125,000 14,618 130,000 430,0004 3,729 7,601 -- 20242,215,000 386,066 175,000 16,710 125,000 10,518 45,000 345,000 5,468 -- 32,696 20252,445,000 330,747 180,000 11,810 130,000 15,318 45,000 (4,432) 355,000 -- 22,696 20262,370,000 273,112 8,160 45,000 205,000 115,000 45,000 3,718 3,668 -- 15,546 20272,245,000 217,917 5,735 55,000 225,000 120,000 50,000 2,736 2,635 -- 11,106 20282,320,000 161,584 3,043 55,000 225,000 6,045 120,000 50,000 1,603 1,400 -- 20292,045,000 104,141 65,000 40,000813 30,000500 135,000 1,688 376 -- 20301,170,000 59,150 - - - - - - - - - - 2031480,000 35,000 - - - - - - - - - - 2032170,000 25,250 - - - - - - - - - - 2033170,000 20,150 - - - - - - - - - - 2034180,000 14,720 - - - - - - - - - - 2035180,000 8,960 - - - - - - - - - - 2036190,000 3,040 - - - - - - - - - - $ 7,292,09244,011,000$ 2,035,000$ 337,825$ 1,330,000$ 252,531$ 1,240,000$ 151,462$ 140,000$ 9,800$ 4,745,000$ 751,619$ Major FundNon-Major Funds - Aggregate Hsg Imprv Rfdg Bds of 2009BDebt Service Fund BondsTotal Debt Service Fund PrincipalInterestPrincipalInterestPrincipalInterest 2016260,000 67,218 2,816,000 746,981 3,076,000 814,199 2017265,000 57,566 2,815,000 756,741 3,080,000 814,308 2018270,000 46,728 2,890,000 702,023 3,160,000 748,750 2019285,000 34,720 2,750,000 546,810 3,035,000 581,530 2020295,000 21,665 2,815,000 591,315 3,110,000 612,980 2021310,000 2,895,0007,440 532,750 3,205,000 540,190 2022 - 2,955,000- 471,246 2,955,000 471,246 2023 - 2,955,000- 407,210 2,955,000 407,210 2024 - 1,870,000- 353,370 1,870,000 353,370 2025 - 2,090,000- 308,051 2,090,000 308,051 2026 - 2,165,000- 257,566 2,165,000 257,566 2027 - 2,020,000- 206,811 2,020,000 206,811 2028 - 2,095,000- 155,539 2,095,000 155,539 2029 - 1,910,000- 102,453 1,910,000 102,453 2030 - 1,170,000- 1,170,00059,150 59,150 2031 - 480,000- 35,000 480,000 35,000 2032 - 170,000- 25,250 170,000 25,250 2033 - 170,000- 20,150 170,000 20,150 2034 - 180,000- 14,720 180,000 14,720 2035 - 180,000- 8,960 180,000 8,960 2036 - 190,000- 3,040 190,000 3,040 $ 1,685,000$ 235,336$ 37,581,000$ 6,305,136$ 6,540,47339,266,000$ 2016 BUDGET 49 CITY OF HOPKINS Through the visioning process the City has discovered that there are many community needs that the City of Hopkins must meet. The future debt capacity will allow the City to issue debt to provide for our community’s needs and desires while keeping property taxes reasonable. Principal and interest payments for the City are projected to stay fairly level over the next several years before dropping in 2024 and again in 2031. CAPITAL EXPENDITURES Capital Improvement Plan The Capital Improvement Plan (CIP) is a five-year schedule or plan for capital improvement expenditures in excess of $10,000 and having a useful life of five or more years. The Capital Improvement Plan process begins with departments editing and updating existing plans from previous years and adding or deleting projects. Once this is completed, finance does an analysis of funding requirements and any related prioritization is done by the city manager. The analysis includes a review of projected working capital amounts available for the projects, any operating cost adjustments as a result of the improvement and the impact of future funding needs is determined. The mayor and council then use the compiled information in the CIP along with the results of public discussion, to determine which projects are to proceed and exactly how they will be funded. Once the CIP is approved the projects for the following year are placed in the appropriate budget. The complete CIP is posted on the city’s website and includes details of each project, the funding sources and a city map showing the street projects for the next five years color coded by project year. 2016 BUDGET 50 CITY OF HOPKINS 2016 Capital Improvement Projects Building Improvements – The Hopkins Center for the Arts built in 1997 has been upgrading and enhancing the facility that is approaching 20 years old. In 2016 we will be making restroom improvements, replacing the sound curtain in the Jaycee studio, making improvements to the theater along with various other minor building projects. There are no budgetary savings that result from these projects, however by enhancing the facility the goal is to increase rentals and gallery showings. The Activity Center, a facility for senior programming will be refurbishing the multipurpose gymnasium that is used for many programming activities and is rented to outside organizations for their functions. There are also other minor improvements to the various rooms used by the public along with improving the sound system used for events. While there is no substantial operational savings that result from these projects, we expect to see rental income increase as the gymnasium becomes more attractive to outside organizations looking for functional rental space. The Council Chambers continues with its technology improvements in 2016 to upgrade the document camera with a high resolution camera which is used by staff and the public in presentations. There are no operational savings to this project; however it will increase the efficiencies of those making presentations as the quality of the presentation will be improved. The Pavilion Ice Arena built in 1990 is scheduled to replace the indoor turf used for various sporting and youth programs. The current turf has exceeded its useful life and has increased maintenance costs. We expect to see an approximate 5% savings on maintenance from the replacement of the indoor turf. The Pavilion will also be replacing the exterior monument sign on Excelsior Boulevard with an electronic changeable sign. This will allow for increased visibility and promotion of the Pavilion along this major artery through Hopkins. The Public Works Building will have the garage upgraded and new gate operators installed. The garage area needs to be brought up to new requirements for above and below ground hoists, the ventilation system needs to be brought up to current standards and to prevent fumes from entering the office areas and finally the floor drain system is in poor condition. In 2015 the site evaluation was completed, plans and specs were drawn up and cost estimates obtained. The work will be done in 2016. The wash bay roof was installed in 1995 has had numerous leaks and has reached the end of its life span. These repairs, repairs, replacements will ensure there is no disruption of service thereby jeopardizing our service to taxpayers. Parks – Several parks will see needed improvements in 2016. Valley Park will get new playground equipment, the warming house will be rehabilitated and the lighting replaced. The play equipment has exceeded its useful life and needs to be replaced. The 40+ year old warming house is in need of upgrades as is the lighting in this park. Oakes Park will get a new warming house and picnic shelter to replace aging structures. Cottageville Park will get a new Pavilion and various parks will have drinking fountains installed. The park projects are needed to protect the City’s investment, prolong the life of park and improve play conditions. As a result of replacing aging structures we expect to see maintenance costs reduced about 7-8%. Shady Oak Beach, a facility shared with the City of Minnetonka will get improvements to the landscaping and replacement of aging patio furniture. The City of Hopkin’s share of project cost is 33%. Replacing aged landscaping and old patio furniture will improve the appearance of the park and make it a more inviting facility for users. Pedestrian and Bike Trail Improvements – The City recently adopted a plan to increase pedestrian and bicycle access and safety. As part of that plan a number of bike lanes will be painted along with constructing trails and sidewalks. There are no operational or budgetary savings from this project but is done as the City’s commitment to healthy living for Hopkins area residents. 2016 BUDGET 51 CITY OF HOPKINS Street & Pavement Management – A funding and implementation plan for repair and maintenance of Hopkins roadways exists. Needs are identified and funded through State Aids, special assessments, utilities, tax increments and annual levies. This program identifies the most opportune time to repair streets. In 2016 the City anticipates spending approximately $10,678,000 on street improvements that also include water, sewer and storm sewer infrastructure improvements. The largest projects are the 2016 street reconstruction project at $4.76 million, and a parking ramp at $4 million. Also scheduled are pedestrian improvements to Blake Road and repairs to the retaining wall and center median pavers on Excelsior Boulevard. A proactive pavement management and infrastructure improvement program aids in keeping public works maintenance costs to a reasonable level and as a result of the city’s program, maintenance costs have remained relatively stable over the last five years. Planned street reconstruction costs will annually save the city an estimated $25,000 in sealcoating and crack seal expenses. Utilities – Included in the CIP for 2016 is annual storm drainage maintenance in the form of concrete alley repairs, along with upgrade of water, sewer and storm sewer lines done in conjunction with residential street improvements. Operational impacts are reduced maintenance costs within the utility funds estimated at $5-10,000 annually. Water Tower Maintenance Plan – The city entered into a 10-year maintenance plan for the city’s two water towers. In 2016 both the Blake and Moline water towers will be inspected, repaired if necessary and painted. These improvements will ensure the long-term stability of the water towers. Operational impacts are estimated to be a savings of 5-8% in maintenance costs. Oakes Park warming house scheduled for rehabilitation. Valley Park warming house and playground equipment scheduled for rehabilitation and replacement. 2016 BUDGET 52 CITY OF HOPKINS CAPITAL IMPROVEMENT PROJECTS FOR 2016 Project Title InvestmentProject Description Hopkins Activity Center$67,000Multipurpose gym improvements Hopkins Activity Center$23,547Various rooms - tables, chairs and sound system Hopkins Art Center$84,100Restroom improvements, theater improvements, Jaycee studio improvements, tables, chairs, landscaping In Communication Fund$12,500Council chambers technology improvements Fire Department$28,000Replace carpet in classroom/meeting room Pavilion Ice Arena$95,000Indoor turf replacement Pavilion Ice Arena$30,000Exterior Sign Public Works Building$690,000Public Works garage upgrades, gate operator replacement Parks - Valley Park$430,000Play equipment, warming house, lighting Parks - Oakes Park$355,000Warming house and picnic shelter Parks - Cottageville Park$420,000Pavilion Parks - Various$60,000Drinking fountains Recreation$40,000Shady Oak Beach Improvements Residential Street Improvements$4,767,0002016 Street reconstruction project Citywide concrete alley's$96,000Throughout the city - concrete alley repairs and storm drainage improvements Railroad Quiet Zone$25,000Plan and design of railroad quiet zone. Pedestrian & Bike Improvements$25,000Painting bike lanes, constructing trails and sidewalks Blake Road Corridor Improvements$350,000Pedestrian improvements to Blake Road Street Overlay Improvements$250,000Street overlay improvements to various streets as identified in pavement management plan. Street Sign Management$20,000Replacement of aged regulatory and warning signs Parking Lot Repairs$30,000Repair parking lot 600 sidewalk & curb Parking Facility$4,000,0008th Avenue Parking Ramp Streets$640,000Excelsior Blvd retaining wall and median paver repairs Transportation$500,0008th Avenue Artery project Storm Drainage$211,000St. Louis Park emergency connection Water Tower Maintenance$990,000Blake & Moline water tower maintenance & painting TOTAL$14,239,147 The projects described on the previous page are planned for 2016. The complete Capital Improvement Plan (CIP) is five years. Both of the CIP and Equipment Replacement Plan (ERP) described on the following page assist the City with budgeting. 2016 BUDGET 53 CITY OF HOPKINS Equipment Replacement Plan 2016 Equipment Replacement In addition to the CIP, the City also completes an Equipment Replacement Plan (ERP). The ERP is a twenty-year forecast and a five-year plan of equipment needs within the City. In is intended to inform the Council and citizens of the major equipment needs on the horizon. The first year of the plan becomes an adopted equipment budget and relates to the operating budget of the equipment replacement fund, which is approved on an annual basis. The remaining nineteen years represent an estimate of equipment needs and funding capabilities of the City. Funding requirements vary from year to year. In order to maintain a fairly consistent levy each year, the twenty-year schedule is projected with a 3% inflation factor for operating expenses and a yearly average dollar capital expenditure of $992,400. Revenues for the ERP are derived from charges to the departments that use the equipment and are based on the equipment needs of the various departments over the twenty-year period. The following items are in the 2016 ERP and have been approved for purchase in 2016. Project TitleProject Description Investment Technology Upgrades$66,000Replacement and/or upgrades of staff computers, printers and scanners, network servers Activity Center$5,000Floor scrubber Arts Center$3,700Video camera updates Community Services$10,000Document management scanner Fire - Aerial Truck$54,217Lease payment on portion of aerial truck financed in 2008 Fire - Vehicles$19,606Three leased vehicles and outfitting of those vehicles Fire - Equipment$34,900Replaced air compressor Fire - Radios$294,075Replace portable and mobile radio equipment Police Patrol Vehicles $90,000Marked patrol cars used by patrol officers to respond to calls, enforce traffic laws and perform general patrol duties Police - Parking Vehicle$36,500Replace parking enforcement officer's vehicle Police Administrative Vehicle$21,794Police administrative and detective vehicle - Annual lease and cost of outfitting the vehicle with needed equipment. Police - SWAT$50,000Vehicle for SWAT Team Police - Drug Task Force $16,074Drug Task Force vehicle - Annual lease and cost of outfitting Vehiclethe vehicle with needed equipment. Police - Portable & Mobile $236,300Replacement of portable and mobile radios. Public Works - Building $32,0004x4 3/4 ton pick-up truck used by building maintenance staff Maintenance Public Works - Forestry$20,000Riding mower used by parks division Public Works - Forestry$32,2003/4 ton pickup truck used by forestry department Public Works - Streets$30,4004x4 3/4 ton pick-up truck with plow used by street department Public Works - Streets$150,000Water truck used by streets and parks departments Public Works - Streets$41,900Skid steer loader Public Works - Streets$13,400Sign machine used by traffic division Public Works - Streets$12,000Planer used by street department for pavement repairs Public Works - Sewer$33,6003/4 ton truck used by sewer department Public Works - Water$35,0003/4 ton truck used by water department TOTAL $1,338,666 2016 BUDGET 54 CITY OF HOPKINS 2016 Other Budgeted Capital Expenditures Along with the Capital Improvement and Equipment Replacement Plans the city has the following capital items budgeted in the operating budgets of the General and Special Revenue Funds. The first year an item is requested it must be funded within the department making the request. Once the item has been funded it will be placed in the ERP for future replacement. All construction related capital items are always placed in the CIP regardless of the funding source. Items with a value of $5,000 or greater are defined as capital expenditures within the General and Special Revenue Funds. Items with a value of $5,000 or more will be placed in the ERP for future replacement once funded by the department making the request. The exception is capital items in the Chemical Assessment Team Special Revenue Fund, which is fully funded by State of Minnesota HazMat grant dollars. The following capital items have been budgeted in the General and Special Revenue Funds for 2015. PROJECT TITLE General Fund Public Works$7,300Diagnostic equipment upgrade and rototiller used for community gardens Special Revenue Funds Parking$250,000Masonry repairs, barrier cable replacement and other repairs based on 2013 conditions report TOTAL$257,300 Total budgeted capital items from all funding sources totals $15,835,113 for 2016. Items in the City’s Equipment Replacement Plan include police, fire vehicles. 2016 BUDGET 55 CITY OF HOPKINS GENERAL FUND BUDGET PROJECTIONS ApprovedProjected 201520162017201820192020 ProjectedBudgetBudgetBudgetBudgetBudget urrent Revenues Property Tax9,113,565$ 9,796,951$ 9,798,702$ 9,935,961$ 10,005,239$ 10,104,939$ Intergovernmental Revenues1,043,085 891,954 890,000 900,000 950,000 1,000,000 License, Permits and Fines706,791 575,775 675,000 700,000 720,000 740,000 Charges for Current Services285,911 188,900 250,000 260,000 260,000 265,000 Other Revenue84,420 132,150 100,000 55,000 50,000 55,000 Franchise Fee300,390 290,000 300,000 310,000 325,000 325,000 11,875,73011,534,162 12,013,702 12,160,961 12,310,239 12,489,939 Total Revenues urrent Expenses Salaries and Employee Bene 9,179,6708,787,651 9,271,467 9,364,181 9,457,823 9,552,401 f Materials, Supplies and Servic 2,673,7602,425,249 2,727,235 2,781,780 2,837,416 2,922,538 Capital outlay 5,622 7,300 - - - - Transfer Out 10,000 15,000 15,000 15,000 15,000 15,000 11,875,73011,228,522 12,013,702 12,160,961 12,310,239 12,489,939 Total Expenditures Change in Fund Balance305,640 - - - - - Fund Balance5,680,619$ 5,680,619$ 5,680,619$ $ 5,680,619$ 5,680,619$ 5,680,619 General Fund Property tax revenue is the amount needed to fill the gap between budgeted revenues and appropriations. The average increase in levy for the general fund for years 2016 through 2020 is projected to be 2-3.0% which the City Council feels is responsible given the current economic situation. This projection reflects an appropriation increase of 4.66% for 2016 and an average increase for years 2017-2020 of 1.7%. The actual amount for any particular year may be reduced through appropriation cuts or new revenue sources. The city’s reliance on support from the state has significantly decreased over the years as the state faced its budget challenges and reduced local support. At one time taxes were less than 70% of total revenues. They now comprise 82%. The city no longer relies on state support when budgeting due to its uncertainty. Tax base growth is used as a guide in keeping the property tax increase to a reasonable level. Due to recent economic development we expect the market value will start showing additional growth for tax year 2017. The city continues to work with developers on several redevelopment projects that will contribute to the increase in the tax base despite what current market trends indicate. Therefore Hopkins tax base will most likely see an overall increase in the next few years. Franchise fees – The City implemented an electric and gas utility franchise fee in 2004 to help offset the amount of tax levy needed to fund general operations. The franchise fee has an optional sunset clause after two years but has been renewed for two additional years in 2007, 2009, 2011 and for five years in 2013. The franchise fee is set to expire December 31, 2018 and staff most likely will recommend its renewal as this source of income has become an important component of the budget. While the franchise fee is reviewed annually the City Council along with staff continues to analyze its usefulness. 2016 BUDGET 56 CITY OF HOPKINS Intergovernmental revenue received by the City include police and fire aid, which is used to offset pension costs of the police and fire departments and municipal state aid for streets. The City of Hopkins receives less than 8% of its budget from state grants and programs. The revenue we do receive is derived from fees on services to the public – police & fire aid is from fees on insurance policies purchased by individuals and companies, municipal state aid is derived from gas tax. Both these sources remain stable. The State of Minnesota also provides Hopkins with about $400,000 in Local Government Aid. This funding source previously received up until 2003 before it was eliminated was reinstated at a much lower level in 2014 and continues into 2016. Licenses, permits and fines include building permits are dependant on new construction and remodeling projects. Based on projected new construction projects, historical information and economic conditions revenues are expected to increase slightly for 2016 from the 2015 budget with revenues continuing to show small increases in the following years as. Fine revenue continues to be stable with slight increases due to implementation of license violation and administrative citations. The additional revenues received in 2015 were from commercial re-development projects. Unless a developer’s commercial project has funding it is the City’s practice to not budget for those amounts. Various programs throughout the City generate charges for services and a significant portion of this line item is plan review, housing inspection fees and vacant property registrations. Charges are usually increased by an inflationary rate but due to projected development and the resulting plan review fees we expect to see a slight increase for the 2016 budget. Future projections are to forecast an increase of 1% annually. The general fund, which accounts for one third of the City's operating expenses, has a revenue budget of $11,875,730 and an appropriation budget of the same. The increase in appropriations over 2015 is $529,014 or 4.66%. The budget was prepared with the intention of meeting the budget goals, while assuring efficiency and effectiveness in all positions. For 2016, the budget was prepared with 2.27 new FTE staffing; two new full-time firefighters and a .27 time police evidence and property room manager; a 2% wage increase for all employee groups, two small general fund capital items, and small inflationary increases in street maintenance expenses for road repairs and other general departmental expenses. The enhanced medical response program implemented in 2007 will continue into 2016 as the program has allowed for greater efficiencies in the police department and increased service to the public. Other budget considerations for 2016 are the cost of employee health insurance and state mandated increases in employee pension funds along with normal inflationary increases. The council attempts to balance maintaining the current level of services while meeting the increasing needs of the public. An emphasis remained on holding the line on the cost of current government services, while recognizing the increased cost of providing those services. Departments were requested to provide financial information by programs within a department and the council spent considerable time reviewing that information before adopting the budget. The council and staff implemented a long-rage financial management plan for 2014 that provides funding for future needs. The plan includes staffing, operational and capital needs and sets forth funding mechanism to meet those expenditures. This plan played a key role in developing the 2016 budget for all city funds. Staff also continues to explore ways to contain costs and develop new revenue sources so that we can maintain the quality of life Hopkins residents have come to expect. 2016 BUDGET 57 CITY OF HOPKINS The chart to the left shows 2015 actual expenditures along with the 2016 approved budget and projected budgets from 2017 through 2020. The general fund tax levy rises in proportion to general fund expenditures. Currently Hopkins relies on its property taxes as its major source of revenue. In fact property taxes account for 82% of General Fund revenues. 2016 BUDGET 58 CITY OF HOPKINS General Fund Appropriation Budget Comparisons – By Department Budget 2014201420152016$ Amount ActualActualBudgetBudgetChangeChange Council $ 71,519 $ 82,266 $ 70,417 $ 79,708 $ 9,291 13.19% Administrative Services 517,507 523,849 527,051 531,969 4,918 0.93% Finance 258,994 359,990 256,081 276,993 20,912 8.17% Legal 171,685 156,835 145,000 150,000 5,000 3.45% Municipal Building 304,697 319,352 324,246 333,611 9,365 2.89% Community Services 1,013,372 1,025,383 1,030,737 1,089,843 59,106 5.73% Police 4,396,663 4,515,389 4,511,890 4,737,734 225,844 5.01% Fire 1,084,506 1,038,292 985,987 1,105,110 119,123 12.08% Public Works 2,422,216 2,332,905 2,503,936 2,580,621 76,685 3.06% Recreation 585,914 604,955 589,560 632,894 43,334 7.35% Planning & Economic Dev. 123,993 134,289 135,162 153,872 18,710 13.84% Community Development 87,124 90,387 91,449 121,875 30,426 33.27% Unallocated 25,338 44,630 175,200 81,500 (93,700)-53.48% TOTAL $11,063,528 $11,228,522 $11,346,716 $11,875,730 $ 529,014 4.66% 2016 Mayor & Council Katy Campbell, Jason Gadd, Mayor Molly Cummings, Kristi Halverson, Aaron Kuznia 2016 BUDGET 59 CITY OF HOPKINS Budget Projections – Other Major Funds The City also prepares budget projections for its budgeted major funds which include the following: Special Revenue Funds – Economic Development, Arts Center Debt Service Fund – Taxable Housing Bonds of 2009B Enterprise Funds – Water, Sewer, Storm Sewer conomic Development Fund ApprovedProjected 201520162017201820192020 ActualBudgetBudgetBudgetBudgetBudget urrent Revenues Property Tax439,918$ 296,813$ 302,749$ 308,804$ 314,980$ 321,280$ Intergovernmental Revenues171,875 - - - - - Other Revenue86,462 59,300 15,500 15,500 15,500 15,500 356,113698,255 318,249 324,304 330,480 336,780 Total Revenues urrent Expenses Salaries and Employee Benefits192,976 146,344 150,003 153,753 157,596 161,536 Materials, Supplies and Services329,373 30,256 30,559 30,864 31,173 31,485 176,600522,349 180,561 184,617 188,769 193,021 Total Expenditures Change in Fund Balance175,906 179,513 137,688 139,687 141,711 143,759 Fund Balance4,129,138$ 4,308,651$ 4,446,339$ 4,586,027$ 4,727,738$ 4,871,497$ The main source of revenue for the Economic Development Fund is a special development tax levy based on a percentage of the market value. As the market value fluctuates so does the amount of the levy. Funds are used for development efforts by the City and to provide assistance to developers. Intergovernmental revenues in the form of grants from the County or Metropolitan Council are applied for when there are specific needs by a developer for site remediation in order to make a project viable. In the past the City has been successful at obtaining these grants on behalf of developers which has assisted in a number of recent projects which in turn adds to the tax base. The Gallery Flats apartments are a recent development project that brought 163 luxury apartments to the housing market in 2014 and has added significant value to the tax base. 2016 BUDGET 60 CITY OF HOPKINS Arts Center ApprovedProjected 201520162017201820192020 ActualBudgetBudgetBudgetBudgetBudget Current Revenues Property Tax83,587$ 140,000$ 200,000$ 260,000$ 260,000$ 260,000$ Intergovernmental Revenues37,337 35,967 75,000 80,000 85,000 90,000 Charges for Current Services501,835 489,921 499,719 509,714 519,908 530,306 Other Revenue67,713 34,300 24,000 25,000 26,000 27,000 Transfers In86,920 86,920 86,920 86,920 86,920 86,920 777,392 787,108 885,639 961,634 977,828 994,226 Total Revenues Current Expenses Salaries and Employee Benefits399,826 430,057 438,658 447,431 456,380 465,508 Materials, Supplies and Services353,820 409,857 413,956 418,095 422,276 426,499 Capital Outlay 10,169 106,800 55,925 320,000 69,100 - 763,815 946,714 908,539 1,185,526 947,756 892,006 Total Expenditures Change in Fund Balance 13,577 (159,606) (22,899) (223,893) 30,072 102,220 Fund Balance$ (1,327,267)(1,167,661)$ (1,350,166)$ (1,574,059)$ (1,543,987)$ (1,441,767)$ The Hopkins Center for the Arts “Arts Center” was built in 1997 with funds from the City, the State of Minnesota as well as contributions from corporations, foundations, local civic organizations, businesses and individuals. The Arts Center is owned by the City of Hopkins and has a major tenant in Stages Theater Company (children’s theater) and Hopkins School District 270. While ticket sales and lease rent provide a significant income stream it has not always been sufficient to meet expenditures and as a result the fund has a large deficit. Over the last five years various changes in operations has resulted in some success at reducing the deficit, however it has not been sufficient to totally eliminate the negative position. As part of the City’s long-range financial management plan staff and council emphasized that the negative position must be eliminated. While not ruling out donations and naming rights to the theater, with the state of the economy we need to address the deficit now. As a result the City implemented a tax levy for 2015 that will eliminate the negative fund balance over the next ten years. In addition, Arts Center staff has been reorganized and additional efforts have been made to rent and lease the various available spaces to the extent possible. Arts staff has also been successful at obtaining grants for programming from the MN Arts Boards which help underwrite the cost of hiring performance artists. Expenditures are expected to increase 1-2% a year to keep up with inflation. In addition to operational expenditures the Arts Center due to its age has several capital needs over the next couple of years that add to its budget challenges. The Arts Center has a partner in their fund raising efforts through the Friends of the Hopkins Center for the Arts, a 501(c)3 nonprofit that raises funds to support arts programming at the Center, coordinates volunteer efforts and fosters public awareness of the Center. In 2015 the Hopkins Center for the Arts received a generous $40,000 donation from the Hopkins Masons. Shown with Co-Executive Directors Lynn Anderson and Susan Hanna-Bibus are members of the Mason’s. 2016 BUDGET 61 CITY OF HOPKINS Taxable Housing Bonds of 2009B ApprovedProjected 201520162017201820192020 ActualBudgetBudgetBudgetBudgetBudget Current Revenues Special Assessments399,256$ 399,257$ 385,000$ 380,000$ 375,000$ 370,000$ Other Revenue7,847 8,493 1,300 1,300 1,300 1,300 407,750407,103 386,300 381,300 376,300 371,300 Total Revenues Current Expenses Materials, Supplies and Services1,977 1,800 1,800 1,800 1,800 1,800 Debt Service Payments323,540 325,400 326,320 328,020 323,370 317,530 327,200325,517 328,120 329,820 325,170 319,330 Total Expenditures Change in Fund Balance81,586 80,550 58,180 51,480 51,130 51,970 Fund Balance988,693$ 1,069,243$ 1,127,423$ 1,178,903$ 1,230,033$ 1,282,003$ Collections of special assessments for the Taxable Housing Bonds of 2009B are expected to exceed the debt service requirements of the bonds. Bonds for this project were originally sold in 1997 and were refunded in 2009 at a significant savings. Special assessments collected on two condominium projects pay for the debt service that funded private improvements on those properties. The special assessments cannot be prepaid so at the end of the debt service period any excess funds will be returned to the homeowners association for additional improvements to the property pursuant to the agreement. Water Fund ApprovedProjected 201520162017201820192020 ActualBudgetBudgetBudgetBudgetBudget Current Revenues Utility Charges$ 1,325,096$ 1,395,200$ 1,451,008$ 1,509,048$ 1,569,410$ 1,632,187 Other Revenue 191,146 158,300 160,000 165,000 170,000 175,000 1,516,242 1,553,500 1,611,008 1,674,048 1,739,410 1,807,187 Total Revenues Current Expenses Salaries and Employee Benefits523,890 345,597 355,965 366,644 377,643 388,972 Materials, Supplies and Services858,101 956,677 975,811 995,327 1,015,233 1,035,538 Depreciation 241,737 250,000 250,000 250,000 250,000 250,000 Debt Service Payments 74,755 95,487 50,310 46,785 42,997 39,072 Transfer Out 45,000 45,000 45,000 45,000 45,000 45,000 1,743,483 1,692,761 1,677,085 1,703,756 1,730,873 1,758,582 Total Expenditures Net Income (227,241) (139,261) (66,077) (29,707) 8,537 48,604 The water fund has several planned maintenance projects planned for 2016 that will draw on reserves. In the budget is the water tower maintenance program for both water towers. Rates were not increased as we work on evaluating a tiered rate structure to be implemented in 2016. The goal of the new rate structure is to encourage conservation due to increased water consumption caused by new multi-family development. Maintenance costs are projected to increase about 2% over the next 4 years. Budgeted transfers are for the water funds share of the public works facility debt as the water department headquarters are located in that facility. 2016 BUDGET 62 CITY OF HOPKINS Sewer Fund ApprovedProjected 201520162017201820192020 ActualBudgetBudgetBudgetBudgetBudget Current Revenues Utility Charges$ 2,172,277$ 2,276,200$ 2,390,010$ 2,509,511$ 2,634,986$ 2,766,735 Other Revenue 2,565 1,000 1,200 1,200 1,200 1,200 2,174,842 2,277,200 2,391,210 2,510,711 2,636,186 2,767,935 Total Revenues Current Expenses Salaries and Employee Benefits286,572 359,616 366,808 374,144 381,627 389,260 Materials, Supplies and Services1,573,639 1,959,838 1,979,436 1,999,231 2,019,223 2,039,415 Depreciation 174,826 170,000 172,000 172,000 172,000 172,000 Debt Service Payments 41,618 66,790 38,642 35,730 32,655 29,492 Transfer Out 50,000 50,000 50,000 50,000 50,000 50,000 2,126,655 2,606,244 2,606,887 2,631,105 2,655,505 2,680,167 Total Expenditures Net Income 48,187 (329,044) (215,677) (120,395) (19,319) 87,768 Sewer treatment costs to the Metropolitan Council, a regional sewer treatment system are 55% of the expenditures of the sewer fund. The Met Council charges municipalities a percentage of their annual budget based on individual cities water flow. This charge can fluctuate based on water used in Hopkins versus the entire region although our percentage has stayed constant the last few years. The variable factor is the Met Council budget. Sanitary sewer charges to customers were not increased in 2016 and as the City is in the middle of a rate study with scheduled implementation for mid-2016. In 2016 scheduled maintenance includes sewer lining, manhole repairs and televising the main sewer lines at an estimated cost of $50,000. Budgeted transfers are for the sewer funds share of the public works facility debt as the sewer department headquarters are located in that facility. Storm Sewer Fund ApprovedProjected 201520162017201820192020 ActualBudgetBudgetBudgetBudgetBudget Current Revenues Utility Charges$ 805,542$ 802,000$ 802,000$ 802,000$ 802,000$ 802,000 Other Revenue 8,385 2,000 1,200 1,200 1,200 1,200 813,927 804,000 803,200 803,200 803,200 803,200 Total Revenues Current Expenses Salaries and Employee Benefits50,059 65,571 66,882 68,220 69,584 70,976 Materials, Supplies and Services70,280 114,511 116,801 119,137 121,520 123,950 Depreciation 230,152 227,000 227,000 227,000 227,000 227,000 Debt Service Payments 44,634 72,414 40,874 38,886 36,674 34,230 Transfer Out 25,000 25,000 25,000 25,000 25,000 25,000 420,125 504,496 476,558 478,243 479,778 481,157 Total Expenditures Net Income 393,802 299,504 326,642 324,957 323,422 322,043 The storm sewer fund has not had to raise rates since 2009 due to its strong financial position and there are currently no plans to raise them in the near future. Expenditures continue to be stable with no significant maintenance projects planned for 2016. Budgeted transfers are for the storm sewer funds share of the public works facility debt as the storm sewer department headquarters are located in that facility. The City plans on doing a rate study in 2016 or all enterprise funds as part of our long-range financial planning and the storm sewer will be included despite its strong financial position. 2016 BUDGET 63 CITY OF HOPKINS General Fund Revenue & Expenditures ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenues Property Taxes8,785,782$ 9,797,151$ 5.26% $ $ 8,953,481$ 9,113,5659,307,729 5.79% Intergovernmental 747,832 956,514 1 ,043,085 843,112 8 91,954 Licenses, Permits and Fines0.98% 878,634 780,586 706,791 569,975 5 75,575 Interest Earnings 9,468 4 3,849 4 7,932 1 5,000 20,00033.33% Charges for Services-9.75% 354,743 295,066 285,911 209,300 1 88,900 Franchise Fees 293,349 300,789 300,390 290,000 2 90,000 Miscellaneous0.49% 4 1,812 2 5,000 3 6,448 111,600 1 12,150 Transfer In - Operating - - - - - Total Revenues11,111,620 11,875,730 4.66% 11,355,284 11,534,12211,346,716 Expenditures Salaries, Wages and Benefits Salaries and Wages3.46% 6 ,186,170 6 ,300,801 6 ,403,425 6 ,410,174 6,631,655 Fringe Benefits9.51% 2 ,216,263 2 ,283,130 2 ,384,226 2 ,326,690 2,548,015 Materials, Supplies and Services 9.51% Professional & Technical Services 884,842 928,539 1 ,024,164 916,625 1,003,825 Utilities and Maintenance1.06% 778,504 824,897 712,335 832,367 8 41,190 Operations-14.78% 336,268 358,119 443,911 580,410 4 94,651 City Support Services1.21% 173,614 171,244 148,886 170,277 1 72,338 Supplies and Materials 725,0182.91% 904,900 839,475 720,984 704,535 Capital Outlay Buildings & Improvements - - - - - Vehicles - - - - - Office Furniture and Equipment - - - - - Equipment 1 1,031 - 5,622 9,500 7 ,300-23.16% Equipment Allocation8.24% 314,622 341,181 342,998 373,946 4 04,767 Total Expenditures11,806,213 12,828,759 4.09% 12,047,386 12,186,55112,324,524 Transfer Out 3 3,580 1 0,000 1 0,000 1 0,000 15,00050.00% Reimbursed Expenditures (991,527) (993,858) (968,029) (987,808)-2.00% (968,029) Net Total Expenditures10,848,267 11,875,730 4.66% 11,063,528 11,228,52211,346,716 Excess (deficiency) of Rev. over Exp. 263,354 291,756 305,600 - - Ending Fund Balance 5 ,101,149 5 ,388,864 5 ,682,620 5 ,388,864 5,682,620 2016 BUDGET 64 CITY OF HOPKINS UNALLOCATED Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenues Property Taxes$8,784,635$8,952,881$9,113,014$9,307,729$9,796,9515.26% Intergovernmental Revenue21,152310,431409,112409,112434,4546.19% 15,00020,00033.33% Interest earnings (16,569) 43,849 47,931 Franchise Fees293,349300,789300,390290,000290,000 Miscellaneous1,5673595,839250250 Total Revenues9,084,1349,608,3099,876,28610,022,09110,541,6555.18% Expenditures Materials, Supplies and Services Operations116,79166,500-43.06% 10,70015,338 11,685 Operating Transfers Transfer from other funds - - - - - Transfer to other funds33,58010,00010,00010,00015,00050.00% Total Expenditures44,28025,33821,685126,79181,500-35.72% Indirectly Funded Amount9,039,8549,582,9719,854,6019,895,30010,460,1555.71% 2016 BUDGET 65 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Unallocated PROGRAM SUMMARY The purpose of the unallocated program of the General Fund is to provide budget for unforeseen or unusual expenditures that may occur in a given year. The revenues recorded here are revenues that are not directly associated with another program within the city. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Monitor tax collections 2. Evaluate franchise fee structure 3. Maximize investment earnings FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Property Taxes $9,113,014 $9,307,729 $ 9,796,951 5.26% Intergovernmental 409,112 409,112 434,454 6.19% Interest Earnings 47,931 15,000 20,000 33.33% Franchise Fee 330,930 290,000 290,000 0.00% Miscellaneous 5,839 250 250 0.00% Total Revenues 9,906,826 10,022,091 10,541,655 5.18% EXPENDITURES: Materials, Supplies & Services 11,685 165,200 66,500 -59.75% Operating Transfer 10,000 10,000 15,000 50.00% Total Expenditures 21,685 175,200 81,500 -53.48% NET TAX AND GENERAL REVENUE SUPPORTED $9,885,141 $9,846,891 $10,460,155 1.80% 2016 BUDGET 66 CITY OF HOPKINS CITY COUNCIL BUDGET Revenues and Expenditures ActualActualActualBudgetBudgetPercent 20132014201520152016Change Expenditures Salaries, Wages and Benefits Salaries and Wages $23,46223,738 $25,50731.15% $ $ 24,400$ 32,000 Fringe Benefits1,8851,8802,3461,8672,44831.12% Materials, Supplies and Services Professional & Technical Services9627511020031055.00% Operations41,65644,59052,32941,50043,0003.61% City Support Services - - - - --- Supplies and Materials1,7371,0301,9752,4501,950-20.41% Total Expenditures69,11271,23782,26670,41779,70813.19% Indirectly Funded Amount69,11271,23782,26670,41779,70813.19% The City Council Department accounts for the expenses of the mayor and council. 2016 BUDGET 67 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM : Council Administration PROGRAM SUMMARY The Council Administration program of the Council Department establishes city policies, goals and objectives. It approves the budget and monitors the activities of the City Manager and City Attorney. The council also appoints members to boards and commissions. The City Council holds regular meetings and work sessions, receives input from staff, citizens and other interested parties. The Council controls policy through changes in the City Code and Legislative Policies. They control spending through their review and approval of the City budget and various contracts. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: Work across all city departments and the community to implement the current Goals and Strategic Plan: (1) Enhance our Small-town Feel, (2) Promote Smart Urban Design and Walkability, and (3) Take it to Them (citizen engagement) 1. Promote city marketing efforts through the “Think Hopkins” campaign 2. Conduct 2016 Citizen’s Academy and Alumni event 3. Publish 2015 City Annual Report 4. Conduct 2016 State of the City event FY 2014FY 2015 FY 2014ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits25,342$ 0.00% $ $ 2 6,26726,267 Materials, Supplies & Services45,895$ 1.25% $ $ 4 3,60544,150 71,237$ $ $ 6 9,87270,417 NET TAX AND GENERAL 0.78% REVENUE SUPPORTED71,237$ $ $ 6 9,87270,417 PERSONNEL: Number of FTE positionsMayor and Mayor and 4 Council Citizen’s Academy Class 2016 BUDGET 68 CITY OF HOPKINS ADMINISTRATIVE SERVICES BUDGET Revenues and Expenditures ActualActualActualBudgetBudgetPercent 20132014201520152016Change Expenditures Salaries, Wages and Benefits -3.73% Salaries and Wages$ 390,759$ 4 02,682$ 4 29,997$ 4 06,395$ 3 91,225 -0.17% Fringe Benefits 157,346 1 52,468 1 44,464 1 62,123 1 61,849 Materials, Supplies and Services Professional & Technical Services 7,479 2 9,571 1 5,865 1 4,740 3 0,190104.82% 13.07% Utilities and Maintenance 13,730 1 1,979 1 6,438 1 2,824 1 4,500 0.50% Operations 27,050 1 7,102 1 4,301 2 9,865 3 0,015 City Support Services 1,622 1 ,707 1 ,805 1 ,971 2 ,23013.14% 1.45% Supplies and Materials 7,071 5 ,457 4 ,979 5 ,875 5 ,960 0.34% Total Expenditures 605,057 6 20,967 6 27,849 6 33,793 6 35,969 Reimbursed Expenditures (104,000) (104,000) (104,000) (104,000) (104,000) 0.41% Net Total Expenditures 501,057 5 16,967 5 23,849 5 29,793 5 31,969 0.41% Indirectly Funded Amount 501,057 5 16,967 5 23,849 5 29,793 5 31,969 The Administrative Services Department is made up of four programs. They are Administration, Personnel, Wellness and Information Technology Services 2016 BUDGET 69 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM : Administrative Services – Administration PROGRAM SUMMARY The Administration program of the Administrative Services Department provides leadership and support to all city programs and operations. Administration controls and directs the City’s affairs. It responds to citizen concerns and participates in affiliated organizations. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN FY 2015FY 2016 2016: FY 2015ApprovedApprovedPercent 1. Enhance the agenda and report program that BudgetBudgetChange Actual keeps the Council and public informed through EXPENDITURES: Salaries/Wages/Benefits $265,128 $250,040 $226,429 -9.44% meetings and correspondence. Materials, Supplies & Services 18,139 25,531 25,443 -0.34% 2. Continue the coordinate the future planning of the City through the Capital Improvements Plan (CIP) Reimbursed Expenditures (66,000) (66,000) (66,000)0.00% program. $217,267 $209,571 $185,872 3. Continue to operate and enhance the employee NET TAX AND GENERAL wellness program. -11.31% REVENUE SUPPORTED $217,267 $209,571 $185,872 4. Enhance Leadership and Training for City Council and Staff. PERSONNEL: 5. Prepare a legislative agenda, monitor Number of FTE positions2.052.051.60 legislative issues, and lobby on issues affecting the City PROGRAM: Administrative Services – Personnel PROGRAM SUMMARY Personnel provides human resource support for departments and employees. This includes coordination of staff recruitment, coordination of employee benefit programs and conducting employee relations’ activities for all City employees. Another aspect of this program is ensuring compliance with state, federal and local laws regarding employment. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Successfully replace retiring employees. 2. Assist the City Manager with staff development opportunities FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits $ 53,452 $ 54,637 $ 56,461 3.34% Materials, Supplies & Services 5,317 3,412 18,647 446.51% Reimbursed Expenditures (16,000) (16,000) (16,000)0.00% $ 42,769 $ 42,049 $ 59,108 NET TAX AND GENERAL REVENUE SUPPORTED $ 42,769 $ 42,049 $ 59,108 40.57% PERSONNEL: Number of FTE positions0.40.40.4 2016 BUDGET 70 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Administrative Services – Wellness PROGRAM SUMMARY FY 2015FY 2016 The Wellness program of the Administrative FY 2015ApprovedApprovedPercent Services Department provides support and BudgetBudgetChange Actual activities to encourage overall general good EXPENDITURES: health of city employees. Materials, Supplies & Services 2,501 2,000 2,000 0.00% MAJOR OBJECTIVES TO BE NET TAX AND GENERAL ACCOMPLISHED IN 2016: REVENUE SUPPORTED $ 2,501 $ 2,000 $ 2,000 0.00% Goal 2, Strategy 3 – Healthy City Initiatives: 1. Continue to provide healthy guidance to PERSONNEL: employees. Number of FTE positions000 2. Provide at least one low cost wellness event six times a year. PROGRAM: Administrative Services - Information Services PROGRAM SUMMARY The Information Services program of the Administrative Services Department provides all network hardware and software support for the City. It also provides individual city employees with hardware and software support. The internal web site is designed and maintained through this program. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Replace Incode with Springbook software. 2. Roll out Bit9 Application whitelisting to every desktop / server. 3. Expand passive vulnerability scanning to every major network junction. 4. Finish migration to Windows 7. 5. Continue to update and improve network security, efficiency, and reliability. 6. Roll out Appassure backup software to PD network / Move all city servers to Appassure. 7. Update IT business continuity/disaster recovery plan to take advantage of virtualization technologies. 8. Certify the city 100% PCI complaint. 9. Finish migration to new file servers on PD and City networks. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits $255,881 $261,099 $270,184 3.48% Materials, Supplies & Services 27,431 34,312 36,805 7.27% Reimbursed Expenditures (22,000) (22,000) (22,000)0.00% $261,312 $273,411 $284,989 NET TAX AND GENERAL 4.23% REVENUE SUPPORTED $261,312 $273,411 $284,989 PERSONNEL: Number of FTE positions2.552.553.0 2016 BUDGET 71 CITY OF HOPKINS FINANCE BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenues Miscellaneous$21,409$21,536$17,643$14,950$14,550-2.68% Expenditures Salaries, Wages and Benefits Salaries and Wages280,177286,613287,326299,996286,399-4.53% Fringe Benefits88,99692,65897,69499,839106,8377.01% Materials, Supplies and Services Professional & Technical Services62,23854,847149,15644,03050,03513.64% Utilities and Maintenance23,61324,76024,23923,30023,300 Operations12,3768,56812,52711,77513,73016.60% City Support Services3673903563913940.77% Supplies and Materials6,03114,33820,55010,8108,110-24.98% Capital Outlay Equipment Allocation8175,7669501,0411,21716.91% Total Expenditures474,615487,940592,798491,182490,022-0.24% Reimbursed Expenditures (232,808)(229,776) (213,029)(232,808)-8.50% (234,158) Net Total Expenditures240,457258,164359,990258,374276,9937.21% Indirectly Funded Amount219,049236,627342,347243,424262,4437.81% The Finance department consists of six programs. They are budgeting, Debt Management, General Accounting, Payroll, Tax Increment Financing Reporting, and Utility Billing. 2016 BUDGET 72 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Finance – Debt PROGRAM SUMMARY The Debt program of the Finance Department issues, records and maintains debt for the City of Hopkins and the Hopkins Housing and Redevelopment Authority. Debt is issued in accordance with state statute and city charter. Debt is maintained at a manageable level for the city. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Maintain the current bond rating of AA+ through conservative financial management and accurate reporting of financial and economic conditions of the city. 2. Project future debt needs and ability. 3. Prepare documents and work with financial advisors for 2016 bond issue(s). 4. Analyze possibilities of debt refunding(s). 5. Prepare annual debt reporting for county as required by state statutes FY 2015FY 2016 FY 2015ApprovedApprovedPercent BudgetBudgetChange Actual EXPENDITURES: Salaries/Wages/Benefits $ 12,925 $ 13,278 $ 13,436 1.19% Materials, Supplies & Services 1,655 1,675 1,679 0.24% Reimbursed Expenditures (14,896) (14,897) (15,115)1.46% $ (316) $ 56 $ - NET TAX AND GENERAL -- REVENUE SUPPORTED $ (316) $ 56 $ - PERSONNEL: Number of FTE positions0.10.10.1 In January 2014 the City was AA+ upgraded to a credit rating by Standard & Poor’s. A certificate recognizing this achievement was presented to the City by the City’s financial advisors. The AA+ rating was reaffirmed for each of the bond issues sold in 2015. 2016 BUDGET 73 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Finance – Accounting PROGRAM SUMMARY The Accounting program of the Finance Department provides financial management for the City and the Housing and Redevelopment Authority. It provides support services to other departments in the City through initiating fiscal plans, implementation and control of those plans, accounting and analysis of transactions. Accounting manages the city’s day-to-day accounting transactions, including accounts receivable, accounts payable, cash receipts and general accounting. The program prepares monthly and quarterly financial statements and compiles the year-end comprehensive financial report. FY 2015FY 2016 MAJOR OBJECTIVES TO BE FY 2015ApprovedApprovedPercent ACCOMPLISHED IN 2016: ActualBudgetBudgetChange 1. Submit CAFR for the GFOA award REVENUES: program. Miscellaneous $ 7,108 $ 5,550 $ 5,550 0.00% 2. Provide accurate and timely month-end and quarterly financial reports. EXPENDITURES: 3. Update the Financial Management Plan Salaries/Wages/Benefits $212,545 $208,616 $194,610 -6.71% Materials, Supplies & Services 96,726 53,387 55,209 3.41% 4. Prepare 20-year Capital Improvement Plan. Reimbursed Expenditures (64,000) (64,000) (64,000)0.00% 5. Prepare 20-year Equipment Replacement $245,271 $198,003 $185,819 -6.15% Plan 6. Update actuarial study on OPEB NET TAX AND GENERAL obligations. -6.33% REVENUE SUPPORTED $238,163 $192,453 $180,269 7. Update CAFR on city website. 8. Complete the implementation of new PERSONNEL: finance software Number of FTE positions2.02.01.95 PROGRAM: Finance – Payroll PROGRAM SUMMARY The Payroll program of the Finance Department completes the biweekly payroll, maintains all payroll records and completes the payroll quarterly reports. It also provides support services to employees regarding payroll issues. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Assist employees with payroll and benefit issues/questions. 2. Provide accurate and timely payroll and reports. 3. Work with insurance company to manage insurance programs. 4. Prepare benefit open enrollment FY 2015FY 2016 information and assist employees with FY 2015ApprovedApprovedPercent questions regarding their benefit options. ActualBudgetBudgetChange 5. Provide employee benefit orientations for EXPENDITURES: new hires Salaries/Wages/Benefits $ 81,224 $ 63,067 $ 95,789 51.88% 6. Implement online employee timekeeping. Materials, Supplies & Services 7,867 5,071 6,385 25.91% Reimbursed Expenditures (20,000) (20,000) (20,000)0.00% $ 69,091 $ 48,138 $ 82,174 NET TAX AND GENERAL 70.71% REVENUE SUPPORTED $ 69,091 $ 48,138 $ 82,174 PERSONNEL: Number of FTE positions0.750.751.0 2016 BUDGET 74 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Finance – TIF Administration PROGRAM SUMMARY FY 2015FY 2016 The Tax Increment Financing Administration FY 2015ApprovedApprovedPercent program of the Finance Department records and ActualBudgetBudgetChange reports tax increment program activities. It is EXPENDITURES: charged with the responsibility of ensuring Salaries/Wages/Benefits $ 12,925 $ 13,033 $ 13,436 3.09% compliance with state statutes and guidelines. Materials, Supplies & Services 7,566 3,500 3,504 0.11% Reimbursed Expenditures (16,533) (16,533) (16,940)2.46% MAJOR OBJECTIVES TO BE ACCOMPLISHED $ 3,958 $ - $ - IN 2016: NET TAX AND GENERAL -- REVENUE SUPPORTED $ 3,958 $ - $ - 1. Continue analysis of Tax Increment Financing funds. PERSONNEL: 2. Assist with implementation of new TIF districts. Number of FTE positions0.10.10.1 3. Prepare annual Office of the State Auditor reports. PROGRAM: Finance – Utility Billing PROGRAM SUMMARY The Utility Billing program of the Finance Department prepares and issues monthly utility bills for collection of utility service fees from its customers.Utility records are maintained and updated within this program. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Implement E-commerce for utility customers 2. Assist customers with utility billing issues and questions – change of service, change of ownership, etc. 3. Promote automatic payment options to increase usage of automatic payment. 4. Complete implementation of the new Utility Billing software. 5. Complete process for outsourcing printing of utility bills FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Charges for service $ 10,520 $ 9,400 $ 9,000 -4.26% EXPENDITURES: Salaries/Wages/Benefits $ 65,401 $ 99,064 $ 75,965 -23.32% Materials, Supplies & Services 93,964 27,714 30,009 8.28% Reimbursed Expenditures (117,378) (117,378) (96,974)-17.38% $ 41,987 $ 9,400 $ 9,000 -4.26% NET TAX AND GENERAL -- REVENUE SUPPORTED $ 31,467 $ - $ - PERSONNEL: Number of FTE positions1.651.650.85 2016 BUDGET 75 CITY OF HOPKINS LEGAL BUDGET Revenues and Expenditures ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenues Court Fines$ 125,559$ 132,328$ 144,676$ 120,000$ 125,0004.17% Expenditures Materials, Supplies and Services Professional & Technical Services142,989171,685156,835145,000150,0003.45% Operations - - - - - Total Expenditures142,989171,685156,835145,000150,0003.45% Indirectly Funded Amount17,43139,35712,15925,00025,000 The Legal Department is made up of two programs. They are Legal Counsel and Prosecution. 2016 BUDGET 76 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Legal PROGRAM SUMMARY The Legal department represents the City in court, at City Council meetings and direct contact with staff and the general public. The firm of Kennedy & Graven is retained on a fee per hour basis. They respond to legal summons and/or initiate action on behalf of the City. Written and oral inquiries are made by staff, council, citizens and other interested parties. The city engages other law firms when necessary. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Prosecute the rights of the City. 2. Prosecute violators of the law. 3. Obtain quality legal representation for the City 4. Assist City staff with development projects FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Court Fines $ 144,676 $ 120,000 $125,000 4.17% EXPENDITURES: Materials, Supplies & Services $ 156,835 $ 145,000 $150,000 3.45% NET TAX AND GENERAL 0.00% REVENUE SUPPORTED $ 12,159 $ 25,000 $ 25,000 PERSONNEL: The City contracts with a legal firm to represent the City. 2016 BUDGET 77 CITY OF HOPKINS MUNICIPAL BUILDINGS Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20132014201520152016Change Expenditures Salaries, Wages and Benefits Salaries and Wages93,579100,73396,996101,444101,6070.16% Fringe Benefits40,97742,97043,27252,80053,4671.26% Materials, Supplies and Services Professional & Technical Services32,30337,94840,86543,00040,500-5.81% Utilities and Maintenance118,672119,822120,293125,700132,1705.15% Operations1,1882,7052,6852,3002,300 City Support Services16,83618,32014,17415,49218,37718.62% Supplies and Materials11,07913,29914,40016,57017,1903.74% Capital Outlay Buildings & Structures ----- Office Furniture and Equipment----- Total Expenditures314,634335,797332,685357,306365,6112.32% Reimbursed Expenditures(31,999)(32,000) (13,333) (32,000)(32,000) Net Total Expenditures282,635303,797319,352325,306333,6112.55% Indirectly Funded Amount282,635303,797319,352325,306333,6112.55% The Municipal Building Department consists of building maintenace. 2016 BUDGET 78 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Municipal Building – Maintenance PROGRAM SUMMARY The Building Maintenance Department of Public Works is responsible for the maintenance and repair of all City Buildings. The Municipal Budget covers City Hall and the Police Department. In house maintenance personnel and contractual custodial services maintain these buildings and equipment. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Continuation of Green Initiatives within City Hall. 2. Explore lobby upgrade. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits $ 140,268 $ 154,244 $155,074 0.54% Materials, Supplies & Services 192,417 203,062 210,537 3.68% Reimbursed Expenditures (32,000) (32,000) (32,000)0.00% $ 300,685 $ 325,306 $333,611 2.55% NET TAX AND GENERAL 2.55% REVENUE SUPPORTED $ 300,685 $ 325,306 $333,611 PERSONNEL: Number of FTE positions1.451.451.45 thst City Hall at 11 Ave and 1 St 2016 BUDGET 79 CITY OF HOPKINS COMMUNITY SERVICES SUMMARY BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenues Licenses$11,777$13,292$14,941$12,000$12,000 Permits423,470588,076481,338350,010351,0100.29% Current Services46,2574,92031,80123,3503,550-84.80% Expenditures Salaries, Wages and Benefits Salaries and Wages574,522616,753632,989634,203637,5970.54% Fringe Benefits177,296189,964202,191190,813201,9675.85% Materials, Supplies and Services Professional & Technical Services159,220175,981172,119163,705198,93021.52% Utilities and Maintenance10,74711,5258,34813,72314,0502.38% Operations23,49124,28323,22634,93536,3253.98% City Support Services42,08140,36136,11040,19842,1944.97% Supplies and Materials8,6138,5987,87110,31015,47550.10% Capital Outlay Office Furniture and Equipment - - - - - Equipment Allocation6,8656,9073,5293,8504,30511.82% Total Expenditures########1,074,3721,086,3831,091,7371,150,8435.41% Reimbursed Expenditures ( 60,480) (61,000) (61,000) (61,000) (61,000) Net Total Expenditures942,3561,013,3721,025,3831,030,7371,089,8435.73% Indirectly Funded Amount460,852407,085497,303645,377723,28312.07% The Community Service department is made up of four main programs. They ar e Reception, Assessing, Inspections, and City Clerk. 2016 BUDGET 80 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Community Services – Receptionist PROGRAM SUMMARY The Receptionist program of the Community Services Department answers calls at main switchboard and route calls to various departments. Directs walk-in customers to the appropriate department. Sales of dog licenses and parking permits occur in this program. Receipts are FY 2015FY 2016 accepted for payment of building permits and utility FY 2015ApprovedApprovedPercent bills. The program also provides clerical and ActualBudgetBudgetChange secretarial services to other departments. EXPENDITURES: Salaries/Wages/Benefits48,754$ 47,731$ 40,973$ -14.16% Materials, Supplies & Services1,485 1 ,226 1 ,115-9.05% OBJECTIVES TO BE ACCOMPLISHED IN 2016: $ 50,239 $ 48,957 $ 42,088 NET TAX AND GENERAL Goal 1, Strategy 3- Provide Accessible and Friendly -14.03% REVENUE SUPPORTED $ 50,239 $ 48,957 $ 42,088 City Services: 1. Continue to provide excellent customer service PERSONNEL: Number of FTE positions1.451.450.5 PROGRAM: Community Services – Assessing PROGRAM SUMMARY The Assessing Department assists property owners with Homestead classification and works with Hennepin County on property valuations. The department also prepares special assessment rolls and responds to property owner concerns and questions. OBJECTIVES TO BE ACCOMPLISHED IN 2016: Goal 1, Strategy 3- Provide Accessible and Friendly City Services: 1. Prepare special assessment rolls for certification on taxes. 2. Assist property owners with property related issues. 3. Maintain the Property and Contact Information in the computer system. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Charges for service $ 2,565 $ 2,000 $ 2,000 0.00% EXPENDITURES: Salaries/Wages/Benefits $ 91,089 $ 90,578 $ 94,233 4.04% Materials, Supplies & Services 132,517 128,759 136,384 5.92% Reimbursed Expenditures (24,000) (24,000) (24,000)0.00% $ 199,606 $ 195,337 $206,617 5.77% NET TAX AND GENERAL 5.83% REVENUE SUPPORTED $ 197,041 $ 193,337 $204,617 The Special Assessment Clerk is PERSONNEL: available to assist with property Number of FTE positions1.051.051.05 tax and assessing related ti 2016 BUDGET 81 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Community Services – City Clerk PROGRAM SUMMARY The City updates the City Code as new ordinances are passed, takes minutes at the City Council meetings and transcribes them using a computer. Business licenses applications are reviewed prior to issuance. The City Clerk is also the purchasing officer of the city. FY 2015FY 2016 FY 2015ApprovedApprovedPercent MAJOR OBJECTIVES TO BE ActualBudgetBudgetChange ACCOMPLISHED IN 2016: REVENUES: Goal 2, Strategy 2 – Go Green Licenses $ 8,047 $ 6,000 $ 6,000 0.00% 1. Purchase “green” or recycled products when available if the pricing is competitive EXPENDITURES: and product meets quality standards. Salaries/Wages/Benefits $ 82,393 $ 78,476 $ 68,220 -13.07% 2. Ensure that the City Document Archives Materials, Supplies & Services 25,844 26,096 32,554 24.75% section of the City’s website contains the Reimbursed Expenditures (37,000) (37,000) (37,000)0.00% most up to date information in all areas $ 71,237 $ 67,572 $ 63,774 -5.62% listed. 3. Review and update where needed NET TAX AND GENERAL applications and forms that are available REVENUE SUPPORTED $ 63,190 $ 61,572 $ 57,774 -6.17% on the Web site. PERSONNEL: Number of FTE positions0.750.750.65 PROGRAM: Community Services – Elections PROGRAM SUMMARY The Elections program of the Community Services Department provides supervision of elections, registers voters, and certifies election results. All state and federal legislation is reviewed, judges are trained, and equipment and polling places are prepared. After elections ballots are counted and the results certified to the County and State of Minnesota. Throughout the year citizens are registered to vote. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Recruit and train additional FY 2015FY 2016 Election Judges for the 2016 FY 2015ApprovedApprovedPercent Local Election. Offer some part- BudgetBudgetChange Actual time positions as requested by REVENUES: several current Election Judges Charges for service $ 25,250 $ 20,000 $ - --- who may be unable to complete a 15 or 16 hour day. EXPENDITURES: 2. Work with Hennepin County City Salaries/Wages/Benefits $ 38,440 $ 37,180 $ 41,351 11.22% to review voting equipment and Materials, Supplies & Services 7,986 15,042 42,143 180.17% the possible replacement. $ 46,426 $ 52,222 $ 83,494 59.88% 3. Work to better organize information and supplies for NET TAX AND GENERAL 159.12% REVENUE SUPPORTED $ 21,176 $ 32,222 $ 83,494 Election Judges use on Election Day. PERSONNEL: Number of FTE positions0.350.350.35 2016 BUDGET 82 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Community Services – Building Code Inspection PROGRAM SUMMARY The Building Code Inspection program of the Community Services Department inspects all new or remodeled buildings to insure they meet the minimum requirements of the state building code. The process begins with easily accessible customer service at the inspections counter and continues with plan review; permit issuance, inspection of construction phases and an issuance of a certificate of occupancy. FY 2015FY 2016 MAJOR OBJECTIVES TO BE FY 2015ApprovedApprovedPercent ACCOMPLISHED IN 2016: ActualBudgetBudgetChange Goal 1, Strategy 3- Provide Accessible and REVENUES: Friendly City Services: License, Permits, Charges $ 210,829 $ 150,460 $150,460 0.00% 1. Work on closing out aging permits from the past years. EXPENDITURES: 2. Start Saving all permits to Laserfiche Salaries/Wages/Benefits $ 194,887 $ 196,083 $203,444 3.75% 3. Get Emergency Inspection Packets Materials, Supplies & Services 73,930 77,149 79,866 3.52% together in case of natural disaster. $ 268,817 $ 273,232 $283,310 3.69% 4. Update handouts and website on New MN State Bld. Code NET TAX AND GENERAL 5. Get ready for Springbrook Software REVENUE SUPPORTED $ 57,988 $ 122,772 $132,850 8.21% 6. Continue training on 2015 MN State Building Code PERSONNEL: Number of FTE positions2.052.052.05 PROGRAM: Community Services – Fire Code Inspection PROGRAM SUMMARY The Fire Code Inspection program of the Community Services Department inspects existing buildings from time to time to insure they are maintained safe in accordance with the minimum safety standards provided in the state fire code. A percentage of commercial and large multiple residential buildings are inspected yearly for fire code violations to insure these structures are maintained safe for their occupants. The focus is on more hazardous occupancies. FY 2015FY 2016 MAJOR OBJECTIVES TO BE FY 2015ApprovedApprovedPercent ACCOMPLISHED IN 2016: ActualBudgetBudgetChange 1. Continue the fire prevention REVENUES: inspection program. Permits $ 7,236 $ 4,000 $ 4,000 0.00% 2. Implement new fire code -- software. EXPENDITURES: Salaries/Wages/Benefits $ 39,740 $ 38,892 $ 40,468 4.05% Materials, Supplies & Services 326 353 402 13.88% $ 40,066 $ 39,245 $ 40,870 4.14% NET TAX AND GENERAL 4.61% REVENUE SUPPORTED $ 32,830 $ 35,245 $ 36,870 PERSONNEL: Number of FTE positions0.350.350.35 2016 BUDGET 83 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Community Services – Heating and Plumbing Code Inspection PROGRAM SUMMARY The Heating and Plumbing Code Inspection FY 2015FY 2016 program of the Community Services Department FY 2015ApprovedApprovedPercent inspects new and remodeled buildings for heating ActualBudgetBudgetChange and plumbing compliance. The process begins with REVENUES: easily accessible customer service at the Permits $ 81,023 $ 53,000 $ 53,000 0.00% inspections counter and continues with plan review; permit issuance, inspection of construction phases. EXPENDITURES: Salaries/Wages/Benefits $ 93,021 $ 90,019 $ 92,564 2.83% Become familiar with new gas, mechanical and Materials, Supplies & Services 2,159 4,058 4,402 8.48% energy code. $ 95,180 $ 94,077 $ 96,966 3.07% MAJOR OBJECTIVES TO BE ACCOMPLISHED NET TAX AND GENERAL IN 2016: REVENUE SUPPORTED $ 14,157 $ 41,077 $ 43,966 7.03% 1. Close out open permits from 2006-2012. 2. Continue to learn and get trained in 2015 PERSONNEL: energy, mechanical and fuel gas codes Number of FTE positions1.01.01.0 3. Software conversion PROGRAM: Community Services – Housing Inspection PROGRAM SUMMARY The Housing Inspection program of the Community Services Department inspects all existing buildings from time to time to insure they are maintained safe in accordance with city housing code. Rental properties are inspected every five years to identify hazards to the occupants and to insure buildings are well maintained and to improve on the city’s housing stock. Homes being sold in the community must be evaluated. A listing of certified evaluators for the Truth in Housing program are maintained. Home sales are monitored to insure compliance. AJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: M Goal 1, Strategy 3- Provide Accessible and Friendly City Services: 1. InCode Conversion 2. Update Truth In Housing guidelines. 3. Retain all new rental inspection results on Laserfiche FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: License, permits, charges $ 149,083 $ 131,550 $132,750 0.91% EXPENDITURES: Salaries/Wages/Benefits $ 165,583 $ 163,969 $172,918 5.46% Materials, Supplies & Services 6,498 7,675 7,935 3.39% $ 172,081 $ 171,644 $180,853 5.37% NET TAX AND GENERAL 19.98% REVENUE SUPPORTED $ 22,998 $ 40,094 $ 48,103 PERSONNEL: Number of FTE positions1.821.821.82 2016 BUDGET 84 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Community Services – Miscellaneous Community Inspection PROGRAM SUMMARY The Miscellaneous Community Inspection program of the Community Services Department responds to general nuisance complaints from Hopkins citizens. Track responses to citizens and results of the complaint. FY 2015FY 2016 MAJOR OBJECTIVES TO BE FY 2015ApprovedApprovedPercent ACCOMPLISHED IN 2016: ActualBudgetBudgetChange Goal 1, Strategy 3- Provide Accessible and REVENUES: Friendly City Services: Citations, charges for service $ 31,575 $ 8,350 $ 8,350 0.00% 1. Continue with spring and fall sweeps and EXPENDITURES: respond to citizen complaints in a prompt Salaries/Wages/Benefits $ 80,196 $ 79,998 $ 83,208 4.01% and courteous manner. Materials, Supplies & Services 455 3,678 3,793 3.13% 2. Send out newsletter in spring regarding $ 80,651 $ 83,676 $ 87,001 3.97% sweeps potential violations. 3. Convert Incode software. Learn NET TAX AND GENERAL Springbrook software. REVENUE SUPPORTED $ 49,076 $ 75,326 $ 78,651 4.41% PERSONNEL: Number of FTE positions0.860.860.86 PROGRAM: Community Services – Vacant Property Management PROGRAM SUMMARY The Vacant Property Management program of the Community Services Department MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Continue to educate mortgage banks, property managers, realtors and vacant property owners on why we want them to register their property. 2. Send out enforcement letters and billings in a timely manner 3. InCode Conversion FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Property Registrations $ 11,000 $ 10,000 $ 10,000 0.00% EXPENDITURES: Salaries/Wages/Benefits $ 2,077 $ 2,108 $ 2,185 3.65% Materials, Supplies & Services - 2,685 2,685 0.00% $ 2,077 $ 4,793 $ 4,870 1.61% NET TAX AND GENERAL -1.48% REVENUE SUPPORTED $ (8,923) $ (5,207) $ (5,130) PERSONNEL: Number of FTE positions0.020.020.02 2016 BUDGET 85 CITY OF HOPKINS POLICE BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenues Intergovernmental$349,968$334,859$366,288$204,000$219,0007.35% Licenses92,41796,73177,94596,00095,600-0.42% Court Fines/Forfeitures92,36971,69349,09850,50051,0000.99% Penalties6853154901,000500 Current Service38,48029,26722,78733,00033,000 Miscellaneous14,7172,6204,2841,5002,00033.33% Expenditures Salaries, Wages and Benefits Salaries and Wages3,016,4072,783,2772,830,8742,864,2042,961,0213.38% Fringe Benefits985,8471,055,0811,102,1041,069,3711,158,7858.36% Materials, Supplies and Services Professional & Technical Services210,15869,988108,69899,290102,2903.02% Utilities and Maintenance110,27994,713103,378118,370118,370 Operations84,10094,71776,50590,31793,1373.12% City Support Services127,174113,987122,015132,549146,41610.46% Supplies and Materials209,706174,111171,814157,715157,715 Capital Outlay Office Furniture and Equipment ----- Equipment----- Total Expenditures4,743,6714,385,8754,515,3894,531,8164,737,7344.54% Indirectly Funded Amount4,155,0363,850,3913,994,4974,145,8164,336,6344.60% 2016 BUDGET 86 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Police – Administration PROGRAM SUMMARY To be recognized as a progressive law enforcement agency, striving to enhance the quality of life for all citizens. We seek to collaborate with all stakeholders to continually improve our community. Hopkins Police Department will recruit, hire, and retain the most qualified personnel to fulfill this vision. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. To provide effective, efficient, and professional police services to the community. 2. Continue to produce the highest ethical standards and transparent police department. 3. Create trust and partnerships with our multi-cultural community. 4. Promote a proactive, problem-solving culture that focuses on crime prevention. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits311,669$ 316,669$ 325,518$ 2.79% Materials, Supplies & Services98,573$ 120,377$ 121,686$ 1.09% $ 410,242 $ 437,046 $ 447,204 NET TAX AND GENERAL 2.32% REVENUE SUPPORTED $ 410,242 $ 437,046 $ 447,204 PERSONNEL: Number of FTE positions2.152.152.15 2016 BUDGET 87 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Police –Patrol PROGRAM SUMMARY To provide public safety by reducing crime, enhancing the quality of life for all citizens, while working collaboratively with all stakeholders in the community. FY 2015FY 2016 MAJOR OBJECTIVES TO BE FY 2015ApprovedApprovedPercent ACCOMPLISHED IN 2016: ActualBudgetBudgetChange 1. Provide the highest level of professional REVENUES: Licenses $ 7,990 $ 10,000 $ 10,000 0.00% customer service to the public with each Intergovernmental Revenue 340,163 204,000 219,000 7.35% and every contact. Fines & Forfeits 49,588 51,500 51,500 0.00% 2. Create trust and partnerships with our Charges for Service 10,257 15,000 15,000 0.00% multi-cultural community. Misecllaneous 3,727 1,000 1,500 50.00% 3. Provide proactive criminal enforcement through intelligence-lead policing efforts. $ 411,725 $ 281,500 $ 297,000 5.51% 4. Committed to identifying and solving EXPENDITURES: problems through building positive Salaries/Wages/Benefits $2,781,031 $2,603,370 $2,854,082 9.63% community partnerships Materials, Supplies & Services 301,985 282,415 290,275 2.78% $3,083,016 $2,885,785 $3,144,357 8.96% NET TAX AND GENERAL 9.33% REVENUE SUPPORTED $2,671,291 $2,604,285 $2,847,357 PERSONNEL: Number of FTE positions23.623.625.775 PROGRAM: Police – SWAT Team PROGRAM SUMMARY The Special Weapons and Tactics team (SWAT) of the Hopkins Police Department will provide tactical and rescue operations in high-risk situations, and will receive the highest level of training possible. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Committed to the highest level of training standards and performance standards. 2. Build upon strong working relationships with other consortium SWAT members and partners. 3. Continue to be a leader in the consortium of SWAT teams. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits46,385$ 55,273$ 57,810$ 4.59% Materials, Supplies & Services21,500$ 21,358$ 21,461$ 0.48% $ 67,885 $ 76,631 $ 79,271 NET TAX AND GENERAL REVENUE SUPPORTED $ 67,885 $ 76,631 $ 79,271 3.45% PERSONNEL: Number of FTE positions0.450.450.5 2016 BUDGET 88 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Police – Reserves PROGRAM SUMMARY The Hopkins Police Reserve Unit provides civilian volunteers with exceptional training to assist the police department with civic events, community- FY 2015FY 2016 building and outreach efforts. FY 2015ApprovedApprovedPercent BudgetBudgetChange Actual MAJOR OBJECTIVES TO BE EXPENDITURES: ACCOMPLISHED IN 2016: Salaries/Wages/Benefits6,759$ 74.09%12,458 1. Continue to recruit individuals with $ $ 7 ,156 $ -5.39%8,016 diverse backgrounds. Materials, Supplies & Services$ 6 38$ 8 ,473 $ 7,397 $ 15,629 $ 20,474 2. Continue to supplement uniformed patrol with calls for service and NET TAX AND GENERAL problem-solving efforts.REVENUE SUPPORTED $ 7,397 $ 15,629 $ 20,474 31.00% 3. Provide leadership training for Reserve Command Staff. PERSONNEL: 4. Utilize Reserve personnel whenever Number of FTE positions0.050.050.1 feasible to alleviate uniformed patrol calls for service. PROGRAM: Police – Investigations PROGRAM SUMMARY The Investigations Division of the Police Department conducts thorough criminal investigations on all criminal activity that has occurred in Hopkins, while working with other police agencies to identify suspects and work collaboratively. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Continue professional development by training officers in the Investigations Division of the Hopkins Police Department. 2. Continue to problem solve and reduce crime through crime analysis and intelligence-lead policing. 3. Work in partnership with other law enforcement agencies to identify crime trends and patterns on a local and regional level. 4. Continue to work in partnership with all divisions within the Police Department. 5. Continue to work in partnership FY 2015FY 2016 with the County Attorney’s FY 2015ApprovedApprovedPercent Office to successfully prosecute ActualBudgetBudgetChange individuals involved in criminal REVENUES: behavior. Licenses $ 61,155 $ 76,000 $ 75,600 -0.53% EXPENDITURES: Salaries/Wages/Benefits $ 458,015 $ 477,851 $ 376,055 -21.30% Materials, Supplies & Services 52,380 87,078 89,350 2.61% $ 510,395 $ 564,929 $ 465,405 -17.62% NET TAX AND GENERAL REVENUE SUPPORTED $ 449,240 $ 488,929 $ 389,805 -20.27% PERSONNEL: Number of FTE positions3.93.92.95 2016 BUDGET 89 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Police – Southwest Hennepin Drug Task Force PROGRAM SUMMARY The Southwest Hennepin Drug Task Force is a multi-jurisdictional unit that conducts investigations of illegal drug activity by developing suspect information from citizens, utilizing confidential informants, search warrants, surveillance, and other covert activities. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Continue to work jointly with the Criminal Investigations Unit and Focus Unit to identify suspects engaged in criminal activity. 2. Work with all divisions of the Police Department and communicate current crime trends and/or possible suspects residing in the City. 3. Continue to work nuisance property and crime free multi-housing issues with the Police Services Liaison to remove problem tenants from units who continue to use illegal drugs. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits $ 4,670 $ 114,766 $ 123,396 7.52% Materials, Supplies & Services 5,139 5,534 5,991 8.26% $ 9,809 $ 120,300 $ 129,387 7.55% NET TAX AND GENERAL 7.55% REVENUE SUPPORTED $ 9,809 $ 120,300 $ 129,387 PERSONNEL: Number of FTE positions111 2016 BUDGET 90 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Police – Crime Prevention Specialist PROGRAM SUMMARY The Police Services Liaison is responsible for presenting and coordinating outreach and crime prevention programs including Neighborhood Watch, National Night Out, Crime-free Multi-housing and classroom instruction of Project Alert. In addition, the Police Services Liaison administers the alarm program, nuisance property program, review and revisions of various ordinances and grant research, application and administration and is the staff liaison to SCIP, One Voice, HBCA, Rental Community Engagement Program and other committees. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Increase participation in Crime Free Multi-Housing program & Neighborhood Watch. 2. Partner with businesses and neighborhoods to reduce crime. 3. Coordinate information sharing with Police/city staff regarding graffiti, nuisance property and other quality of life issues. 4. Coordinate efforts with Joint Community Police Partnership (JCPP) Community Liaison. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Licenses $ 3,800 $ 5,000 $ 5,000 0.00% Intergovernmental Revenue 26,125 - - Miscellaneous 556 - - Donations - 500 500 0.00% $ 30,481 $ 5,500 $ 5,500 0.00% EXPENDITURES: Salaries/Wages/Benefits $ 76,463 $ 96,088 $ 98,928 2.96% Materials, Supplies & Services 17,687 14,742 14,794 0.35% $ 94,150 $ 110,830 $ 113,722 2.61% NET TAX AND GENERAL National Night Out REVENUE SUPPORTED $ 63,669 $ 105,330 $ 108,222 2.75% PERSONNEL: Number of FTE positions0.850.850.85 New American Academy Cops ‘n Kids Fishing 2016 BUDGET 91 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Police – Support Services PROGRAM SUMMARY This division of the Police Department provides the public, police personnel and other law enforcement agencies with police data requested by mail, telephone and in person. Support Services personnel strives for excellence in quality and accuracy of all police data while managing our Records Management System (RMS), entering, modifying, and quality checking all police records. This division generates state and federal mandated reports, transcribes and processes reports and correspondence and maintains records in accordance with state and local guidelines. MAJOR OBJECTIVES TO BE FY 2015FY 2016 ACCOMPLISHED IN 2016: FY 2015ApprovedApprovedPercent 1. Continue to learn new RMS system ActualBudgetBudgetChange (LETG) while seeking to refine REVENUES: processes for better efficiency of Licenses $ 5,000 $ 5,000 $ 5,000 0.00% records maintenance. Charges for Service 12,530 18,000 18,000 0.00% 2. Train on new RMS reporting $ 17,530 $ 23,000 $ 23,000 0.00% software to develop reports to EXPENDITURES: provide more data to the public. Salaries/Wages/Benefits$ 247,986$ 262,402$ 3.49%271,559 3. Continue to provide weekly crime Materials, Supplies & Services3,732 6,606 12.20%7,412 statistics and learning additional $ 251,718 $ 269,008 $ 278,971 crime analysis software and NET TAX AND GENERAL mapping tools 4.05% REVENUE SUPPORTED $ 234,188 $ 246,008 $ 255,971 PERSONNEL: Number of FTE positions3.453.453.5 PROGRAM: Police – Systems Management PROGRAM SUMMARY The Systems Management program of the Police Department is under the supervision of the city’s IT department who oversees the maintenance of all police computer system networks, and state communications interfaces. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Work to integrate the police department network with the city’s network. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Materials, Supplies & Services47,859$ 51,658$ 58,943$ 14.10% NET TAX AND GENERAL REVENUE SUPPORTED47,859$ 51,658$ 58,943$ 14.10% PERSONNEL: Number of FTE positions000 2016 BUDGET 92 CITY OF HOPKINS FIRE BUDGET Revenues and Expenditures ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenues Licenses & Permits$830$1,880$2,410$3,500$3,500 State Aid94,84393,488102,65795,00095,000 Federal Grant164,29068,859 - - - County Grant - - - - - Administrative Citations -500900100100 Current Service7,5936,58011,9343,0003,000 Donations1002,400 - - - Miscellaneous4,0463,696 - -3,500 271,702177,403117,901101,600105,1003.44% Expenditures Salaries, Wages and Benefits Salaries and Wages401,146391,544362,214373,132437,55917.27% Fringe Benefits189,188189,093200,521194,802236,80821.56% Materials, Supplies and Services Professional & Technical Services49,71148,53434,54635,95039,4509.74% Utilities and Maintenance67,29583,75372,34959,00057,600-2.37% Operations69,48772,619121,51764,92566,1001.81% City Support Services124,866135,919142,717155,695161,9454.01% Supplies and Materials228,319161,787104,428102,845105,6482.73% Capital Outlay Equipment - - - - - Total Expenditures1,130,0121,083,2511,038,292986,3491,105,11012.04% Indirectly Funded Amount858,310905,848920,391884,7491,000,01013.03% The Fire Department is made up of two programs. They are Fire Prevention/Suppression and Emergency Preparedness. 2016 BUDGET 93 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Fire – Fire Department PROGRAM SUMMARY The Fire Department includes Emergency Medical Services (EMS), Fire Prevention/Suppression programs. The EMS program supports the Police Department in managing responses to medical emergencies. The Fire Department responds to all life threatening situations and when there are no police officers available to respond. Fire suppression is the response to all fires, hazardous materials, special hazards and special rescue incidents in the city and fire prevention is the enforcement of the fire code, and the review and inspection of new construction. It also provides for public education and files reports with the State Fire Marshall on department activity, property loss or death due to fire emergencies. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Develop Long Term Strategic and Marketing plan for the department. 2. Recruitment and Retention of members. 3. Create a Marketing and Recruitment Video. 4. Add two full time firefighters to staffing. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Licenses & Fines $ 3,310 $ 3,600 $ 3,600 0.00% Intergovernmental Revenue 102,657 95,000 95,000 0.00% Charges for Service 11,934 3,000 3,000 0.00% Donations - - - 0.00% $ 117,901 $ 101,600 $ 101,600 0.00% EXPENDITURES: Salaries/Wages/Benefits $ 562,735 $ 567,572 $ 674,367 18.82% Materials, Supplies & Services 475,557 418,415 430,743 2.95% $1,038,292 $ 985,987 $1,105,110 12.08% NET TAX AND GENERAL REVENUE SUPPORTED $ 920,391 $ 884,387 $1,003,510 13.47% PERSONNEL: Number of FTE positions1.251.253.25 Volunteer Firefighters353533 2016 BUDGET 94 CITY OF HOPKINS PUBLIC WORKS BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenues Licenses and Permits$18,970$5,435$23,660$9,415$9,415 Intergovernmental139,154145,245165,027135,000140,0003.70% Charges for Services5,3969,2837,6432,1002,2507.14% Other Miscellaneous5,6124,7255,6094,6004,600 Sales of Fixed Assets - - - - - Expenditures Salaries, Wages and Benefits Salaries and Wages1,263,6762.04% 1 ,199,562 1,252,718 1,257,985 1,283,681 Fringe Benefits470,8641.04% 4 66,575 472,094 504,747 510,004 Materials, Supplies and Services 242,6334.34% Professional & Technical Services 2 02,645 300,162 341,100 355,900 Utilities and Maintenance415,450-0.05% 4 20,514 331,630 419,900 419,700 Operations4,15513.76% 8 06 2,940 11,630 13,230 City Support Services159,2882.63% 1 40,557 159,648 174,583 179,171 Supplies and Materials393,4143.92% 3 94,693 346,091 336,435 349,635 Capital Outlay Buildings & Improvements- - - - - Equipment- 1 1,031 5,622 9,500 7,300-23.16% Total Expenditures2,949,4802.05% 2 ,836,382 2,870,905 3,055,880 3,118,621 Reimbursed Expenditures(545,139)(531,857) (538,000) (538,000) (538,000) Net Total Expenditures2,417,6232.49% 2 ,291,243 2,332,905 2,517,880 2,580,621 Indirectly Funded Amount2,252,9352.43% 2 ,122,111 2,130,966 2,366,765 2,424,356 The Public Works Department is made up of eight programs. They are Buildings, Equipment Services, Administration, Engineering, Streets, Snow Removal, Parks and Tree Service. 2016 BUDGET 95 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Public Works – Buildings PROGRAM SUMMARY The Building Maintenance Department of Public Works is responsible for the maintenance and repair of all City Buildings. The public works buildings budget FY 2015FY 2016 covers the entire public works complex. The FY 2015ApprovedApprovedPercent buildings and equipment are maintained by in ActualBudgetBudgetChange house maintenance personnel and the custodial EXPENDITURES: duties by a contract cleaner. Salaries/Wages/Benefits $ 37,601 $ 38,547 $ 38,687 0.36% Materials, Supplies & Services 83,865 70,943 75,622 6.60% MAJOR OBJECTIVES TO BE Reimbursed Expenditures (70,000) (70,000) (70,000)0.00% ACCOMPLISHED IN 2016: $ 51,466 $ 39,490 $ 44,309 NET TAX AND GENERAL 1. Maintain PW building to assure a safe and REVENUE SUPPORTED $ 51,466 $ 39,490 $ 44,309 12.20% comfortable environment for all City employees at the lowest cost to the PERSONNEL: taxpayer. Number of FTE positions0.40.40.4 PROGRAM: Public Works – Equipment Services PROGRAM SUMMARY The Equipment Services program of the Public Works Department provides maintenance and repair of all City vehicles and equipment. Equipment Services is responsible for writing specifications and the purchasing of City Vehicles. It also is in charge of the disposal of surplus vehicles and equipment. It is the goal of Equipment Services to provide a quality and cost effective service to all cities departments for all their equipment needs. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Continue aggressive maintenance and repair of all city equipment. 2. Purchase riding lawn mower, grass seed applicator (overseeder), and a ¾ ton truck with plow as provided in the City’s Equipment Replacement Plan. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Charges for service $ 95 $ 150 $ 150 0.00% EXPENDITURES: Salaries/Wages/Benefits $213,116 $229,192 $221,887 -3.19% Materials, Supplies & Services 35,007 21,819 25,030 14.72% Reimbursed Expenditures (107,791) (143,000) (143,000)0.00% Capital Expenditures - 4,000 4,200 0.00% $140,332 $112,011 $108,117 -3.48% NET TAX AND GENERAL -3.48% REVENUE SUPPORTED $140,237 $111,861 $107,967 PERSONNEL: Number of FTE positions2.352.352.35 2016 BUDGET 96 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Public Works – Administration PROGRAM SUMMARY The Administration program of the Public Works Department provides administrative direction, control and support by the Public Works Director, reception and clerical for the following Public Works Department divisions: Engineering Services; Building Services; Equipment Services; Parks/Forestry & Streets/Traffic; Water and Sewer Utilities and Solid Waste Management. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Southwest Transitway (LRT) FY 2015FY 2016 planning: protect city interests FY 2015ApprovedApprovedPercent and position Hopkins for Federal ActualBudgetBudgetChange funding to mitigate LRT station EXPENDITURES: impacts Salaries/Wages/Benefits $174,512 $175,569 $185,836 5.85% 2. Continue to analyze and respond Materials, Supplies & Services 19,798 18,423 19,309 4.81% to opportunities to save energy Reimbursed Expenditures (148,000) (148,000) (148,000)0.00% and be more environmentally conscious while improving $ 46,310 $ 45,992 $ 57,145 service quality and efficiency. NET TAX AND GENERAL 3. Complete aggressive 2016 24.25% REVENUE SUPPORTED $ 46,310 $ 45,992 $ 57,145 program of street, utility, municipal building and park PERSONNEL: system improvements. Number of FTE positions1.351.351.4 4. Complete Cottageville Park master planning work and design of associated storm water drainage improvements PROGRAM: Public Works – Engineering PROGRAM SUMMARY The Engineering Division of the Public Works Department provides engineering services for the City. The Engineering Division provides drafting, surveying, layout, design and other engineering services for the City, as well as maintenance and updating of base maps, as-builts, and other miscellaneous map updating projects. This division also acts as the primary liaison to FY 2015FY 2016 consultants involved with construction projects. FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange MAJOR OBJECTIVES TO BE REVENUES: ACCOMPLISHED IN 2016: Licenses $ 22,210 $ 8,000 $ 8,000 0.00% 1. Continue to develop utility maps in digitized Charges for Service 120 100 100 0.00% format and apply to GIS program. $ 22,330 $ 8,100 $ 8,100 0.00% 2. Continue field survey and inventory of EXPENDITURES: utility system for GIS application. Salaries/Wages/Benefits $156,557 $177,146 $172,577 -2.58% 3. Oversee implementation of the City’s Materials, Supplies & Services $ 32,461 $ 33,086 $ 33,870 Capital Improvement Plan. Reimbursed Expenditures (65,000) (65,000) (65,000)0.00% $124,018 $145,232 $141,447 -2.61% NET TAX AND GENERAL -2.76% REVENUE SUPPORTED $101,688 $137,132 $133,347 PERSONNEL: Number of FTE positions1.61.61.6 2016 BUDGET 97 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Public Works – Streets and Alleys PROGRAM SUMMARY The Streets Division of the Public Works Department provides maintenance of 55 miles of streets, 30 miles of alleys and 10 parking lots (including parking ramp) within the City for convenient day-to-day use. Also provides street lighting, traffic signs and signals, sidewalk repair, and special event support. Maintenance includes activities such as sweeping, patching, seal coating and curb repair. Major maintenance is scheduled on a 6 year, maintenance district rotation basis. Routine mill/patching/paving is accomplished throughout the City during the summer season. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Street maintenance utilizing pavement management support information that includes prep seal coat areas and contractual crack sealing. 2. Spring sweeping as weather permits, Mainstreet sweeping every three weeks, residential sweeping (spring, summer and once in the fall). 3. Continued maintenance of storm water drainage systems. 4. Inspect and repair all defective sidewalks in district 5. Preventative patching, repairs to bituminous roadways. 6. Maintain sign and signal change outs, inventory signs, upgrade traffic controls and signals as required. 7. Mainstreet maintenance including flags, refuse, decorations and banners, and streetlight painting. 8. Provide traffic control and logistical services for special events such as Raspberry Festival, Mainstreet Days, National Night Out, etc., to support the City goal of promoting and enhancing city events. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Licenses $ 1,450 $ 1,415 $ 1,415 0.00% Intergovernmental Revenue 165,027 135,000 140,000 3.70% Charges for Service 1,861 500 500 0.00% $168,338 $136,915 $141,915 3.65% EXPENDITURES: Salaries/Wages/Benefits $474,010 $377,994 $384,656 1.76% Materials, Supplies & Services $525,800 $666,385 $671,570 0.78% Reimbursed Expenditures (112,000) (112,000) (112,000)0.00% $887,810 $932,379 $944,226 1.27% NET TAX AND GENERAL REVENUE SUPPORTED $719,472 $795,464 $802,311 0.86% PERSONNEL: Number of FTE positions4.064.063.96 2016 BUDGET 98 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Public Works – Snow & Ice Removal PROGRAM SUMMARY The Snow & Ice Removal program of the Public Works Department provides snow and ice control services of 55 miles of streets, 33 miles of alleys and 9 parking lots (including parking ramp) and economic development properties within the city for convenient day-to-day use, and to provide safe travel and parking conditions. MAJOR OBJECTIVES TO BE ACCOMPLISHED FY 2015FY 2016 IN 2016: FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange 1. Complete plowing/ice treatment operations REVENUES: of all city streets, alleys, parking lots and Charges for service $ 622 $ - $ - #DIV/0! parking ramp within 10 hours. 2. Complete snow removal operations in EXPENDITURES: downtown areas/ramp/parking lots in Salaries/Wages/Benefits $ 59,930 $141,158 $139,279 -1.33% efficient manner to meet parking/traffic flow Materials, Supplies & Services 48,654 78,669 82,717 5.15% demands. Capital Outlay - - - 0.00% 3. Increase snow/ice maintenance activities on $108,584 $219,827 $221,996 0.99% residential streets. 4. Utilize snow emergency policy to maximize NET TAX AND GENERAL safety and snow removal efforts, while 0.99% REVENUE SUPPORTED $107,962 $219,827 $221,996 minimizing resident conflicts. PERSONNEL: Number of FTE positions1.181.181.26 PROGRAM: Public Works – Park Maintenance & Improvements PROGRAM SUMMARY The Parks division of the Public Works Department provides for the maintenance of developed parks and grounds adjacent to public buildings and right-of-ways, including: seeding, fertilizing and mowing of grass, tree & plantings maintenance, maintenance of all athletic fields and general playgrounds and maintenance of Shady Oak Beach. Maintenance of Co. Rd 3 median flowers and irrigation is provided. Maintenance of picnic facilities and trails, trash and rubbish removal from parks is also included. Open skating and hockey areas are included. Open skating and hockey areas are provided from December through February for outdoor recreational purposes. FY 2015FY 2016 MAJOR OBJECTIVES TO BE FY 2015ApprovedApprovedPercent ACCOMPLISHED IN 2016: ActualBudgetBudgetChange 1. Continue grounds maintenance of REVENUES: all parks including Shady Oak Charges for service $ 5,315 $ 1,500 $ 1,500 0.00% Beach, plus City Hall, 4 well Miscellaneous 4,645 4,600 4,600 0.00% houses, Public Works garage and $ 9,960 $ 6,100 $ 6,100 0.00% all other City owned right-of-way. EXPENDITURES: 2. Provide open skating and hockey Salaries/Wages/Benefits $493,057 $465,759 $490,876 5.39% at the following parks: Valley, Materials, Supplies & Services 297,719 294,520 295,171 0.22% Harley Hopkins, Oakes, Central, Capital Outlay 5,622 5,500 3,100 -43.64% Interlachen, open skating only at $796,398 $765,779 $789,147 3.05% Hilltop and Burnes. NET TAX AND GENERAL REVENUE SUPPORTED $786,438 $759,679 $783,047 3.08% PERSONNEL: Number of FTE positions5.245.245.12 2016 BUDGET 99 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Public Works – Forestry PROGRAM SUMMARY The Forestry Division of the Public Works Department provides for the maintenance of all trees. Through the utilization of arboricultural practices, all trees on public property will be maintained in an acceptable condition or removed as necessary to allow for a healthy environment for the urban forest along with providing safe passage for pedestrian and vehicular traffic. Through utilization of tree inspectors residents will be consulted on tree related problems and advised to the solutions. Reforestation of the urban forest is also an activity of this division. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Trim 12% of trees on city boulevards. 2. Replace trees on city property that were lost in 2016 3. Remove all diseased, dead, dying trees on public property. 4. Manage an effective data base record keeping system that tracks forestry activities to better manage and maintain public trees. 5. Provide for prompt customer service on requests for trimming and tree consultation FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Charges for service $ 595 $ - $ - 0.00% EXPENDITURES: Salaries/Wages/Benefits116,029$ 154,731$ 159,887$ 3.33% Materials, Supplies & Services117,165$ 99,803$ 114,347$ 14.57% $233,194 $254,534 $274,234 NET TAX AND GENERAL REVENUE SUPPORTED $232,599 $254,534 $274,234 7.74% PERSONNEL: Number of FTE positions1.911.911.89 Tree trimming by staff Trees damaged by disease and marked for removal. 2016 BUDGET 100 CITY OF HOPKINS RECREATION BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20132014201520152016Change Expenditures Salaries, Wages and Benefits Salaries and Wages36,77156,32054,06960,97177,66927.39% Fringe Benefits5,0587,5327,1406,1027,68225.89% Materials, Supplies and Services Operations157,347158,543164,309164,509167,5051.82% Supplies and Materials -350650300250-16.67% Capital Outlay Improvements Other than Bldg - - - - - Transfer Out - - - - - Total Expenditures199,176222,745226,169231,882253,1069.15% Indirectly Funded Amount199,176222,745226,169231,882253,1069.15% The Recreation Department is made up of five main porgrams. They are Playground, Ice Rink, Park Services, Joint Recreation and Skate Park. 2016 BUDGET 101 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Recreation – Playgrounds PROGRAM SUMMARY The popular summer playground program is provided to children at 11 locations throughout the cities of Hopkins and Minnetonka. Activities include outdoor games, arts and crafts, a tiny tots program, and a summer adventure club. The summer concludes with a carnival attended by children from all the playground sites. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. To develop, promote and provide quality recreational opportunities in anticipation of and in response to the needs and interests of the Hopkins-Minnetonka community. 2. To develop staff related goals designed to build self-esteem in children participating in the program 3. Add an additional program site at Valley Park to meet the needs of the neighborhood. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits26,964$ 216,756$ 22,110$ -89.80% NET TAX AND GENERAL -89.80% REVENUE SUPPORTED26,964$ 216,756$ 22,110$ PERSONNEL: Number of Part-time positions222222 PROGRAM: Recreation – Ice Rink Program PROGRAM SUMMARY Supervised outdoor ice rinks are provided at 13 locations throughout the cities of Hopkins and Minnetonka. Each site is staffed with rink attendants from mid-December thru mid-February dependant on weather conditions. Ice rinks are available for general skating, hockey and broomball. Approximately 30 staff are hired and trained to supervise the outdoor ice rink program. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. To provide quality customer service and facilities to ice rink users. 2. To ensure that all locations are adequately staffed for each scheduled day of operation 3. To hire and train a staff that is dedicated to providing quality customer service 4. To provide additional opportunities for skating by extending rink hours at all sites. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits11,249$ 115.91% $ $ 14,39531,080 NET TAX AND GENERAL 115.91% REVENUE SUPPORTED11,249$ $ $ 14,39531,080 PERSONNEL: Number of Part-time positions303030 2016 BUDGET 102 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Recreation – Park Service PROGRAM SUMMARY The Recreation Department hires and trains attendants to supervise park services at Burnes, Oakes and Valley Parks. Attendants manage picnic reservations, maintain restroom facilities, provide recreational equipment and keep overall site clean for park users. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. To provide quality customer service and facilities to park users. 2. To ensure that facilities are open and prepared for each scheduled permitted use FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits17,869$ 25,780$ 26,840$ 4.11% NET TAX AND GENERAL 4.11% REVENUE SUPPORTED17,869$ 25,780$ 26,840$ PERSONNEL: Number of Part-time positions888 PROGRAM: Recreation – Joint Recreation PROGRAM SUMMARY Programs for all ages are provided through the Joint Recreation division. Youth classes are offered in over 15 areas of interest including tennis, golf, swimming, ball skills, and arts & crafts. Youth sports leagues are offered in basketball and soccer. Adult classes are offered in several areas of interest, and team sports are offered in soccer, softball, basketball, volleyball, hockey, broomball and football. In addition, the joint recreation division oversees the operation of Shady Oak Beach, attended by over 30,000 people each summer. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Transition to internal scheduling and staffing of inclusion services for participants with special needs. 2. Continue to develop partnerships in order to expand youth programming opportunities. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Materials, Supplies & Services161,110$ 162,000$ 165,300$ 2.04% NET TAX AND GENERAL 2.04% REVENUE SUPPORTED161,110$ 162,000$ 165,300$ PERSONNEL: Number of Part-time positions909090 2016 BUDGET 103 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Recreation – Overpass Skate Park PROGRAM SUMMARY The Overpass program provides skate boarders, bikers, and inline skate athletes, 10 years of age or older, with a safe, fun, and challenging place to gather and practice their sport. The Overpass creates a healthy recreational opportunity primarily for youth, and young adults. The Overpass is a seasonal operation, and one of only a few tier II aggressive skate parks in the state of Minnesota. This unique park attracts a regional population in addition to serving the residents of Hopkins. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: rd 1. To operate the park under a contractual operating agreement with 3 Lair Skate Parks. 2. To operate the park with favorable fees for resident and community partners. 3. To increase the number of Hopkins resident users and partner community (Minnetonka and St. Louis Park) resident users. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits5,128$ 5,222$ 5,321$ 1.90% Materials, Supplies & Services3,849$ 2,322$ 2,455$ 5.73% $ 8,977 $ 7,544 $ 7,776 NET TAX AND GENERAL 3.08% REVENUE SUPPORTED $ 8,977 $ 7,544 $ 7,776 PERSONNEL: Number of FTE positions0.050.050.05 2016 BUDGET 104 CITY OF HOPKINS ACTIVITY CENTER BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenues Charges for Services$76,154$95,338$104,678$62,000$62,000 Contributions14,3828,92314,4178,5009,50011.76% Total Revenues90,536104,261119,09570,50071,5001.42% Expenditures Salaries, Wages and Benefits Salaries and Wages197,852177,001190,807179,490190,6116.20% Fringe Benefits70,74365,21468,03769,50673,5305.79% Materials, Supplies and Services Professional & Technical Services31,46952,64558,01632,70030,700-6.12% Utilities and Maintenance33,68130,26723,23830,75032,2504.88% Operations12,31410,83210,75512,45012,5500.80% City Support Services12,27513,35710,16511,15013,97725.35% Supplies and Materials18,85313,48617,76823,57026,17011.03% Capital Outlay Buildings & Structures - - - - - Office Furniture and Equipment - - - - - Other Equipment - - - - - Total Expenditures377,187362,802378,786359,616379,7885.61% Indirectly Funded Amount286,652258,540259,691289,116308,2886.63% The Activity Center Department is made up of two programs. They are Community Use and Maintenance. Due to budget constraints, the center is closed on Fridays unless there is a special event. 2016 BUDGET 105 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Activity Center – Programming PROGRAM SUMMARY The Activity Center Community Use program provides a facility for residents to use for active or passive activities. Staff coordinates all users of the Activity Center. The Hopkins Activity Center also implements and coordinates the Senior Adult Program, which is geared towards the over 50 Hopkins population. FY 2015FY 2016 MAJOR OBJECTIVES TO BE FY 2015ApprovedApprovedPercent ACCOMPLISHED IN 2016: BudgetBudgetChange Actual 1. Facility enhancements: Gymnasium REVENUES: 2. Update our registration system so Rent $ 26,106 $ 26,000 $ 26,000 0.00% that all registration and payments Charges for Service 66,103 25,000 25,000 0.00% can be made online 3. Market the Hopkins Activity Center Miscellaneous 26,886 19,500 20,500 5.13% to the over 50 Hopkins population, $119,095 $ 70,500 $ 71,500 1.42% especially through electronic media. EXPENDITURES: 4. Work with the Hopkins festivals and Salaries/Wages/Benefits $240,293 $229,723 $244,848 6.58% special events committees to Materials, Supplies & Services 87,689 70,388 70,290 -0.14% promote events for the over 50 $327,982 $300,111 $315,138 5.01% population. NET TAX AND GENERAL REVENUE SUPPORTED $208,887 $229,611 $243,638 6.11% PERSONNEL: Number of FTE positions3.03.03.0 PROGRAM: Activity Center – Maintenance PROGRAM SUMMARY The Building Maintenance Department of Public Works is responsible for the maintenance and repair of all City Buildings. The Activity Center maintenance budget covers the Hopkins Activity Center. In house maintenance personnel and part time cleaning personnel maintain this building. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Enhancement of the gymnasium. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits18,551$ 19,273 $ $ 1 9,2930.10% Materials, Supplies & Services$ 3 2,253$ 4 0,232$ 4 5,35712.74% $ 50,804 $ 59,505 $ 64,650 NET TAX AND GENERAL REVENUE SUPPORTED $ 50,804 $ 59,505 $ 64,650 8.65% PERSONNEL: Number of FTE positions0.20.20.25 2016 BUDGET 106 CITY OF HOPKINS PLANNING BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenues Permits and Licenses$ 1,970$ 1,450$ 1,280$ 1,000$ 1,000 Charges for Services2,6003,2006,3502,0002,50025.00% Total Revenues4,5704,6507,6303,0003,50016.67% Expenditures Salaries, Wages and Benefits Salaries and Wages96,52497,937103,418103,090105,6652.50% Fringe Benefits37,73334,90036,30136,89443,85318.86% Materials, Supplies and Services Professional & Technical Services2,9073725782,25010,250355.56% Utilities and Maintenance135586127450450 Operations8,1507,7178,69010,73510,735 City Support Services7257513,6008459198.76% Supplies and Materials2,4741,6031,5762,0002,000 Total Expenditures148,648143,865154,289156,264173,87211.27% Reimbursed Expenditures ( 20,000) ( 20,000) ( 20,000) ( 20,000) ( 20,000) Net Total Expenditures128,648123,865134,289136,264153,87212.92% Indirectly Funded Amount124,078119,215126,659133,264150,37212.84% The Planning and Economic Development Department is made up of thee programs. They are Zoning Activities & Enforcement, Sign & Fence Permits and Miscellaneous Planning. 2016 BUDGET 107 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Planning & Community Development – Zoning Activities, Planning & Enforcement PROGRAM SUMMARY The Zoning Activities & Enforcement Program of the Planning & Economic Development Department provides administration and enforcement of locally approved Zoning Ordinance and Comprehensive Plan. Provides administration and inspection of signs and fences and prepares various planning documents and reports necessary to ensure orderly development/redevelopment of City. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Continue to examine if properties should be re-zoned to Mixed-Use 2. Research and develop a policy to ensure that new developments have a bike and pedestrian-friendly design 3. Process sign & fence permit requests in a timely and expedient manner 4. Provide staff assistance to Planning Commission FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Licenses & Permits $ 7,630 $ 3,000 $ 3,000 0.00% EXPENDITURES: Salaries/Wages/Benefits $139,719 $139,984 $149,518 6.81% Materials, Supplies & Services 14,571 16,280 24,354 49.59% Reimbursed Expenditures (20,000) (20,000) (20,000)0.00% $134,290 $136,264 $153,872 NET TAX AND GENERAL 13.21% REVENUE SUPPORTED $126,660 $133,264 $150,872 PERSONNEL: Number of FTE positions1.351.351.35 2016 BUDGET 108 CITY OF HOPKINS COMMUNITY DEVELOPMENT BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenues -4.87% Miscellaneous$ -$ -$ -$ 9 1,450$ 8 7,000 Expenditures Salaries, Wages and Benefits Salaries and Wages32.88% 6 4,902 6 0,441 6 3,403 6 3,732 8 4,684 Fringe Benefits 22,35622,044 32,72223,021 42.14% 1 2,982 Materials, Supplies and Services Professional & Technical Services 4 5 3 ,232 1 ,786 6 00 8 0033.33% Operations 1 ,736 9 93 1 39 2 ,675 2 ,515-5.98% City Support Services 1 ,173 1 ,242 1 ,417 1 ,277 3 04-76.19% Supplies and Materials 8 21 6 69 1 ,285 8 40 8 501.19% Total Expenditures121,875 32.26% 8 1,658 8 8,621 9 0,387 9 2,145 Indirectly Funded Amount $ 8 1,658$ 8 8,621$ 9 0,387$ 6 95$ 3 4,8754917.99% The Community Development budget accounts for expendiutres used to promote and enhance the community of Hopkins. 2016 BUDGET 109 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Community Development PROGRAM SUMMARY Promotion and development of housing programs and activities for City property owners and residents. Staff st Time Home Buyer Mortgage Program, Image Awards, Housing support of housing programs such as 1 Improvement Areas and Livable Communities Program. Assist in implementation of the Engaging Raspberry Renters project. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Continue promotion and support of various housing programs and initiatives. Investigate funding for SW LRT station area (and other key parcels) redevelopment, including Hennepin County Transit Orientated Development (TOD) program and Met Council Livable Communities Demonstration Account. 2. Continue to provide staff support to HAMA, SW LRT TIC, SCIP and other collaborative efforts. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Miscellaneous $ - $ 91,450 $ 87,000 -4.87% EXPENDITURES: Salaries/Wages/Benefits $ 85,759 $ 86,753 $117,406 35.33% Materials, Supplies & Services 4,629 5,392 4,469 -17.12% $ 90,388 $ 92,145 $121,875 NET TAX AND GENERAL 4917.99% REVENUE SUPPORTED $ 90,388 $ 695 $ 34,875 PERSONNEL: Number of FTE positions0.850.851.5 2016 BUDGET 110 CITY OF HOPKINS STATE CHEMICAL ASSESSMENT BUDGET Revenues and Expenditures Projected Special Revenue Fund 204 ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenues Intergovernmental $ 61,44333.33% $ 59,882$ 72,090$ 45,000$ 60,000 Miscellaneous - - 4,901 - - -- Refunds & Reimbursements 10,309 4,067 740 - - -- Total Revenues33.33% 71,752 63,949 77,731 45,000 60,000 Expenditures Salaries, Wages and Benefits Salaries and Wages 33,643 23,547 36,412 37,171 37,171 Materials, Supplies and Services Professional & Technical Services 2,354 1,980 2,717 2,000 2,000 Utilities and Maintenance - 4,892 4,098 - - -- Operations-- 20,935 16,214 15,278 - 3,000 Leases-- - - 8,726 - 10,500 City Support Services 2,922 2,800 3,340 3,620 2,718-24.92% Supplies and Materials 11,917 25,878 26,998 2,209 4,611108.74% Capital Outlay Computers - - - - - Other Equipment - - - - - -- Total Expenditures33.33% 71,771 75,313 97,568 45,000 60,000 Excess (deficiency) of revenue over expenditures (19) (11,364) ( 19,838) ( 0) ( 0) The State Chemical Assessment is supported by state aid for the purpose of chemical assessment training and activity for the State of Minnesota. 2016 BUDGET 111 CITY OF HOPKINS FUND 203 – CHEMICAL ASSESSMENT TEAM FUND PROGRAM: State Chemical Assessment Team PROGRAM SUMMARY The State Chemical Assessment Team program provides emergency response for assessment of chemical hazards for the State of Minnesota and maintenance of state owned equipment for emergency response and training of personnel. Responding as requested by the State Duty Officer to the counties of Hennepin, Scott, Carver, McLeod and Renville. The State of Minnesota will reimburse the City for up to $60,000 per year for the training of personnel, maintenance of equipment, and purchase of supplies and equipment. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. To continue to train to members on all aspects of chemical response. 2. To restructure and redefine chemical assessment team to meet the needs of the state, city and team members needs. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Intergovernmental Revenue $ 77,731 $ 45,000 $ 60,000 33.33% EXPENDITURES: Salaries/Wages/Benefits $ 36,412 $ 37,171 $ 37,171 0.00% Materials, Supplies & Services 61,157 7,829 22,829 191.60% $ 97,569 $ 45,000 $ 60,000 NET TAX AND GENERAL -- REVENUE SUPPORTED $ 19,838 $ - $ - PERSONNEL: Number of FTE positions000 2016 BUDGET 112 CITY OF HOPKINS ECONOMIC AND COMMUNITY DEVELOPMENT BUDGET Revenues and Expenditures Special Revenue Fund 205 ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenues Property Taxes$272,572 $296,813 -32.53% $ 222,802$ 535,083$ 439,918 Intergovernmental 7,500 49,995 171,875 - - Interest earnings-53.00% 18,080 44,883 40,422 4,000 19,000 Miscellaneous 31,119 20,747 46,040 11,500 40,300 Total Revenues 279,501 650,707 698,255 288,072 356,113 Expenditures Salaries, Wages and Benefits Salaries and Wages 109,806134,299-18.24% 125,379 135,817 147,151 Fringe Benefits-18.74% 46,077 42,980 45,825 44,967 36,538 Materials, Supplies and Services -47.16% Professional & Technical Services 66,416 26,765 80,769 67,850 35,850 Utilities and Maintenance 1,029 772 735 1,170 1,170 Operations4.29% 10,412 108,431 24,811 7,000 7,300 City Support Services-3.46% 26,475 25,806 22,819 24,897 24,036 Supplies and Materials 1,417 955 1,610 1,900 1,900 Grant Expenditures - - 138,629 - - Operating Transfer In (Out) 61,000 61,000 - - - 338,205 402,524 462,349 282,083 216,600 Capital Outla y Land Acquisition - - - - - Other Improvements - - - - - Total Expenditures 216,600282,083 -23.21% 338,205 402,524 462,349 Reimbursed Expenditures (40,000) (36,667) (40,000) (40,000) (40,000) Net Total Expenditures 176,600242,083 -27.05% 298,205 362,524 425,682 Excess (deficiency) of Revenues ove r Expenditures290.34% (18,703) 288,183 272,573 45,989 179,513 The Economic Development Fund was established to fund development and redeveloment opportunities. Sources are derived from loans, grants and tax levy. 2016 BUDGET 113 CITY OF HOPKINS FUND 204 – ECONOMIC DEVELOPMENT FUND PROGRAM: Project Development and Coordination PROGRAM SUMMARY FY 2015FY 2016 Undertake development activities not directly FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange funded by specific project budgets. Meet with REVENUES: developers, property owners and business Property Taxes $ 439,918 $ 272,572 $ 296,813 8.89% tenants to review possible Intergovernmental Revenue 11,875 - - 0.00% redevelopment/development activities. Recruit Interest 40,422 4,000 19,000 375.00% desirable businesses to locate in Hopkins. Miscellaneous 20,766 11,000 40,000 263.64% Explore developer incentives aimed at $ 512,981 $ 287,572 $ 355,813 23.73% promoting sustainability and active living. EXPENDITURES: Salaries/Wages/Benefits $ 80,355 $ 71,645 $ 46,591 -34.97% MAJOR OBJECTIVES TO BE Materials, Supplies & Services 65,348 33,217 33,065 -0.46% ACCOMPLISHED IN 2016: Transfer Out 61,000 - - 0.00% 1. Monitor income/expenditure of Economic $ 206,703 $ 104,862 $ 79,656 -24.04% Development fund. NET TAX AND GENERAL 2. Prepare program budget. 51.14% REVENUE SUPPORTED $(306,278) $(182,710) $(276,157) 3. Facilitate redevelopment projects as directed by the City Council. PERSONNEL: Number of FTE positions0.650.650.4 PROGRAM: Tax Increment Financing Program PROGRAM SUMMARY Undertake miscellaneous development activities funded through tax increment districts. Administer all districts. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Ensure districts are meeting legal and statutory requirements. 2. Continue to monitor all districts. 3. Coordinate development activities within districts. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits $ 60,286 $ 58,961 $ 49,717 -15.68% Materials, Supplies & Services 9,949 11,214 10,951 -2.35% Reimbursed Expenditures (40,000) (40,000) (40,000)0.00% $ 30,235 $ 30,175 $ 20,668 NET TAX AND GENERAL -31.51% REVENUE SUPPORTED $ 30,235 $ 30,175 $ 20,668 PERSONNEL: Number of FTE positions0.50.50.4 2016 BUDGET 114 CITY OF HOPKINS FUND 204 – ECONOMIC DEVELOPMENT FUND PROGRAM: Community Development Activity PROGRAM SUMMARY Promote the City of Hopkins by building on assets, including the small town feel, walkability and Hopkins as a destination. Explore ways to enhance the sense of place through public art and directional signage. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Work towards the Council-approved goals and objectives. 2. Continue liaison role for City between both HBCA and Twin West Chamber. 3. Work with Marketing Task Force to FY 2015FY 2016 implement year four of the Think Hopkins FY 2015ApprovedApprovedPercent marketing plan. BudgetBudgetChange Actual REVENUES: 4. Facilitate year four of Hopkins Artstreet. Interest $ - $ - $ - 0.00% Intergovernmental revenue 160,000 - - 0.00% Miscellaneous 274 500 300 -40.00% $ 160,274 $ 500 $ 300 -40.00% EXPENDITURES: Salaries/Wages/Benefits $ 52,355 $ 48,660 $ 50,036 2.83% Materials, Supplies & Services 159,951 23,386 26,240 12.20% $ 212,306 $ 72,046 $ 76,276 5.87% NET TAX AND GENERAL 6.19% REVENUE SUPPORTED $ 52,032 $ 71,546 $ 75,976 PERSONNEL: Number of FTE positions0.250.450.45 th PROGRAM: 8 Avenue Development PROGRAM SUMMARY thth and Excelsior, the City of Hopkins will work towards transforming 8 In preparation for the SW LRT station at 8 Avenue in to a gateway to the downtown through redevelopment of existing property and the redesign of the roadway. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: th 1. Begin the design process for the 8 Avenue streetscape project. 2. Work with the developer to complete the redevelopment of the Johnson Building property. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Miscellanoues $ 25,000 $ - $ - #DIV/0! EXPENDITURES: Materials, Supplies & Services 34,125 35,000 - -100.00% Land Acquisition - - - -- $ 34,125 $ 35,000 $ - NET TAX AND GENERAL REVENUE SUPPORTED $ 34,125 $ 35,000 $ - -100.00% PERSONNEL: Number of FTE positions000 2016 BUDGET 115 CITY OF HOPKINS TIF DISTRICT 1-2 BUDGET Revenues and Expenditures Special Revenue Fund 212 ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenues Tax Increment$ 58,172$ 58,173$ 5 8,173$ 5 8,000$ 5 8,000 Interest (211) 1,124 1 ,757 1 00 5 00400.00% Transfers In - - - - - Expenditures Materials, Supplies and Services Professional & Technical Services 595 599 5 96 1 ,000 1 ,000 Operations 13,880 13,155 1 2,538 2 ,000 1 2,236511.80% Total Expenditures 14,475 13,754 1 3,135 3 ,000 1 3,236341.20% Transfers out for debt - - - - - Total Expenditures 14,475 13,754 1 3,135 3 ,000 1 3,236341.20% Excess (deficiency) of Revenues over Expenditures 43,486 45,543 4 6,795 5 5,100 4 5,264-17.85% The Tax Increment District 1-2 Fund is the redevelopment of former Suburban Chevrolet property. The tax increment district is located in the Central Business District. The fund records the use of tax increment receipts. 2016 BUDGET 116 CITY OF HOPKINS FUND 211 – TAX INCREMENT DISTRICT 2-1 FUND PROGRAM: Redevelopment within Central Business District PROGRAM SUMMARY Redevelopment activity of property in the Central Business District (CBD), north and south of Mainstreet between thth and 12 Avenues. 11 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Assist in preparation of program budget and other required documentation. 2. Prepare required State Auditor Annual Reports. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Tax Increments $ 58,173 $ 58,000 $ 58,000 0.00% Interest 1,757 100 500 400.00% $ 59,930 $ 58,100 $ 58,500 0.69% EXPENDITURES: Materials, Supplies & Services $ 13,135 $ 3,000 $ 13,236 341.20% NET TAX AND GENERAL -17.85% REVENUE SUPPORTED $ (46,795) $ (55,100) $ (45,264) PERSONNEL: Number of FTE positions000 2016 BUDGET 117 CITY OF HOPKINS PARKING BUDGET Revenues and Expenditures Special Revenue Fund 215 ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenues Court Fines$22,207 $17,474 $15,767 $22,000 $22,000 Leased Parking70,167 87,291 119,577 74,000 115,000 55.41% Interest Earned(644) 2,169 2,476 500 1,000 100.00% otaevenues,,,,,. TlR91729106934137820965001380004301% Expenditures Salaries, Wages and Benefits Salaries and Wages38,948 38,737 40,557 42,690 42,746 0.13% Fringe Benefits5,664 6,168 7,039 7,369 18,683 153.54% Materials, Supplies and Services Professional & Technical Services40,735 15,893 7,890 4,150 6,150 48.19% Utilities and Maintenance25,114 21,213 31,384 14,780 14,525 -1.73% Operations858 325 325 750 750 City Support Services18,793 20,796 17,499 19,115 21,196 10.89% Supplies and Materials9,120 3,523 645 5,550 5,550 Capital Outlay Other Improvements- - 95,875 45,000 250,000455.56% Total Expenditures139,232106,655201,214139,404359,600 157.96% Excess (deficiency) of Revenues over Expenditures(47,502) (63,394)279(42,904)(221,600)416.50% The Parking Fund records the receipt of parking permits and parking fines. The revenues are used to offset the maintenance cost of the parking lots and parking ramp and to fund the parking enforcement officer. 2016 BUDGET 118 CITY OF HOPKINS FUND 214 – PARKING FUND PROGRAM: Parking Enforcement PROGRAM SUMMARY FY 2015FY 2016 Manage and enforce parking rules and FY 2015ApprovedApprovedPercent regulations. Ensure that parking is available for ActualBudgetBudgetChange customers and parking rules are followed. REVENUES: Fines & Forfeits $ 15,767 $ 22,000 $ 22,000 0.00% MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: EXPENDITURES: 1. Monitor the effects of current parking Salaries/Wages/Benefits $ 45,572 $ 46,607 $ 57,971 24.38% enforcement efforts and recommend Materials, Supplies & Services 8,946 15,943 17,222 8.02% changes as needed. $ 54,518 $ 62,550 $ 75,193 2. Continue to accurately account for fine NET TAX AND GENERAL revenues that result from parking 31.18% REVENUE SUPPORTED $ 38,751 $ 40,550 $ 53,193 enforcement. PERSONNEL: Number of FTE positions0.720.720.72 PROGRAM: Parking Operations PROGRAM SUMMARY Implement and manage parking recommendations by the City Council and the Parking Committee and follow-up on any questions by the general public. Provide information to the Parking Committee and the City Council on items of operation. Manage the parking as to provide the most convenient parking for customers. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Update parking brochure. 2. Promote marketing plan for permit parking and municipal ramp. 3. Review funding options for future maintenance of public lots. 4. Maintain and improve public parking lots as needed. 5. Work with Public Works Department to complete analysis of public parking lots FY 2015FY 2016 FY 2015ApprovedApprovedPercent BudgetBudgetChange Actual REVENUES: Leases $ 119,577 $ 74,000 $ 115,000 55.41% Interest 2,476 500 1,000 100.00% $ 122,053 $ 74,500 $ 116,000 55.70% EXPENDITURES: Salaries/Wages/Benefits $ 2,024 $ 3,452 $ 3,458 0.17% Materials, Supplies & Services 684 1,740 1,706 -1.95% $ 2,708 $ 5,192 $ 5,164 -0.54% NET TAX AND GENERAL 59.92% REVENUE SUPPORTED $(119,345) $ (69,308) $(110,836) PERSONNEL: Number of FTE positions0.010.010.01 2016 BUDGET 119 CITY OF HOPKINS FUND 214 – PARKING FUND PROGRAM: Parking Ramp PROGRAM SUMMARY Proper handling of all matters related to the operation and administration of the leased parking system for the ramp. Implement recommendations by the City Council and the Parking Committee and follow-up on any questions by the general public. Provide information to the Parking Committee and the City Council on items of operation. Manage the parking as to provide the most convenient parking for customers. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Review funding options for future maintenance of parking ramp. 2. Maintain and improve parking ramp as needed. 3. Complete masonry repairs, barrier cable replacement and other repairs based on 2013 conditions appraisal. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange EXPENDITURES: Materials, Supplies & Services 48,112 26,662 29,243 9.68% Capital Expenditures 95,875 45,000 250,000 -- $ 143,987 $ 71,662 $ 279,243 NET TAX AND GENERAL 289.67% REVENUE SUPPORTED $ 143,987 $ 71,662 $ 279,243 Capital Outlay/Construction$95,875 $45,000 $250,000 455.56% PERSONNEL: Number of FTE positions000 2016 BUDGET 120 CITY OF HOPKINS COMMUNICATIONS BUDGET Revenues and Expenditures Special Revenue Fund 218 ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenue s Franchise Fees$252,707 $261,104 $266,366 $248,000 $255,000 2.82% Charges for Services - - - - - Proceeds from Sale of Assets - - - - - Interest Earned (932) 4,845 6,207 2,000 2,000 Total Revenue251,775265,949 272,5732 50,0002 57,0002.80% Exenditure ps Salaries, Waes and Benefit gs Salaries and Wages31,061 59,00359,5192.46% 2 5,567 60,985 Fringe Benefits14,1083.08% 7,651 8,070 1 3,112 14,542 Materials, Sulies and Services pp 31,722 7,9846.94% Professional & Technical Services 5 4,026 8,650 9,250 Utilities and Maintenance 4,892 5 11 2 1,658 2,650 1,650-37.74% Operations17,389 19,72821,7500.23% 2 1,282 21,800 City Support Services13,136 10,98711,9864.09% 1 2,902 12,476 Supplies and Materials 1,057 4 80 313 9 00 6 50-27.78% Caital Outla py Office Furniture and Equipment35,000 - - 8,558 12,500-64.29% Transfer Ou 86,92086,920 86,920 86,920 t 8 6,920 Total Exenditures214,297189,289 220,773 -8.58% p 228,264241,483 Excess (deficiency) of Revenues over Expenditures76,659 44,309 325.35%36,227 3 7,478 8,517 The Communication Fund (formerly known as the Cable fund) records the City's share of a five city joint venture cable TV franchise administered under the Southwest Suburban Cable Commission. 2016 BUDGET 121 CITY OF HOPKINS FUND 217 – COMMUNICATIONS FUND PROGRAM: Communication PROGRAM SUMMARY Provide two-way communication between the City and its residents, employees and businesses; its civic, service, and fraternal organizations; and other communities and government agencies. Written, verbal and visual communication tools. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: Communications: 1. Promote City events, large and small. 2. Support the production of three promotional videos. Newsletters: 3. City Goal 3: Take it to Them - Engage the Rental Community of Hopkins. 4. Increase newsletter distribution to rental properties. Web and Messaging: 5. City Goal 1, Explore improved service delivery through e-commerce: 6. Increase interactivity on web site through one or more of the following: Ability to make payments via the web Customer Response system Ability to fill out forms on the website FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Franchise Fees $ 266,367 $248,000 $ 255,000 2.82% Interest 6,207 2,000 2,000 0.00% $ 272,574 $250,000 $ 257,000 2.80% EXPENDITURES: Salaries/Wages/Benefits $ 72,115 $ 73,627 $ 75,527 2.58% Materials, Supplies & Services 60,671 48,936 48,826 -0.22% Capital Expenditures 8,558 35,000 12,500 -64.29% Transfer Out 86,920 86,920 86,920 0.00% $ 228,264 $244,483 $ 223,773 -8.47% NET TAX AND GENERAL 502.27% REVENUE SUPPORTED $ (44,310) $ (5,517) $ (33,227) PERSONNEL: Number of FTE positions0.250.250.25 2016 BUDGET 122 CITY OF HOPKINS DEPOT BUDGET Revenues and Exenditures p Special Revenue Fund 220 ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenues Intergovernmental$15,000 $22,500 $15,000 $15,000 $15,000 Leases and Rentals74,84771,07974,65470,00068,000-2.86% 231,5001.54% Concessions & Merchandise Sales 224,341 246,114 260,413 228,000 Donations & Contributions6332,0002,000 1,809 702 Private Foundation Grants- 3,000- -16.67%2,500 - Interest(49)(14) 10 - - Miscellaneous15,39015,15015,30215,0000.67% 15,100 Transfer In10,00010,00010,00010,00015,00050.00% Total Revenues340,161 376,057366,662 343,000 349,1001.78% Expenditures Salaries, Wages and Benefits Salaries and Wages168,370153,7095.90% 180,893 164,353 145,150 Fringe Benefits52,69252,74353,83455,42250,219-9.39% Materials, Supplies and Services Professional & Technical Services11,00812,6559,0009,000 10,730 Utilities and Maintenance12,86511,99713,56810,60012,05013.68% Operations6,6334,1697,74712,47511,649-6.62% City Support Services2,5574,3865,3205,2445,3652.31% Supplies and Materials101,830105,52695,99997,22096,150-1.10% Capital Outla y Improvements2,7952,386 - - - Total Expenditures358,750338,1420.90% 374,756 351,552 335,111 Excess (deficiency) of Revenues over expenditures(18,589)(8,094)7,88910,95838.90% 24,505 The Depot Coffee House Fund accounts for the operations of the Youth Center, a chemical free environment for area teens to socialize and the operations of the Coffee House which provides a service to the Youth and those on the regional trail system. 2016 BUDGET 123 CITY OF HOPKINS FUND 219 – DEPOT FUND PROGRAM: Depot Youth Project PROGRAM SUMMARY: Depot Mission To provide a place of community and learning in which student involvement and youth development are encouraged in a chemically-free environment Depot Youth Project staffing and programs are funded primarily through admission fees, rentals, gifts and grants. The Depot programs are intended to offer area youth creativity and leadership opportunities, strengthen youth involvement in community activities, and nurture their growth and development as citizens through interaction with peers, the public, and community partners. The Depot Board and The Partners Advisory Team, consisting of students, community members, community business partners, City, Hopkins School District, Depot Youth Foundation and Three Rivers Park District representatives, guide and support site and programming decisions.. The facility/grounds serve as a Trailhead for Three Rivers Park District and the coffee house which operates 7 days a week is an amenity enjoyed by local residents as well as trail riders/walkers. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Sustain welcoming and chemical free venue for community youth and other gatherings. 2. Continue staffing 2 – 3 night a week year -round youth events programming at the Depot. 3. Support additional youth-initiated projects. 4. Provide learning lab for Business/Marketing classes at Hopkins High School. 5. Promote partnerships with the Depot in the community, with area students, and youth allies. 6. Create new youth learning opportunities with Coffee Operations staff. 7. Provide workplace training and employment opportunities for youth. 8. Continue capital upgrades with furnishings FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Intergovernmental $ 80,000 $ 80,000 $ 80,000 0.00% Charges for Service 10,595 10,000 8,000 -20.00% Foundation/Corporate Grants - 3,000 2,500 -16.67% Miscellaneous 17,578 20,000 18,500 -7.50% Tranfer In 10,000 10,000 15,000 50.00% $118,173 $123,000 $ 124,000 0.81% EXPENDITURES: Salaries/Wages/Benefits $ 79,195 $ 81,019 $ 87,373 7.84% Materials, Supplies & Services 27,269 34,906 32,289 -7.50% Capital Expenditures - - - #DIV/0! $106,464 $115,925 $ 119,662 3.22% NET TAX AND GENERAL REVENUE SUPPORTED $ (11,709) $ (7,075) $ (4,338)-38.69% PERSONNEL: Number of FTE positions1.51.51.0 2016 BUDGET 124 CITY OF HOPKINS FUND 219 – DEPOT FUND PROGRAM: Depot Coffee Ops PROGRAM SUMMARY: The coffee shop is a natural adjunct to the youth programming at the Depot and provides actual sustenance for youth patrons and the wider community as well as employment and training opportunities for youth. . MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Continue to provide organic fair-trade coffee drinks, locally sourced snacks and hand-crafted baked goods, sandwiches, salads, and soups for youth and adult patrons. 2. Provide barista/customer service training and supervision for youth volunteers and employees. 3. Provide learning lab for Marketing/Business students at Hopkins High School. 4. Offer food choices as well as repair and small merchandise items for biking/trail patrons of the Depot. 5. Develop catering menu and business for youth to operate. 6. Develop food service partnership with Hopkins Activity Center. 7. Market the Depot space for rentals. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Charges for Service $257,884 $220,000 $ 225,100 0.00% EXPENDITURES: Salaries/Wages/Benefits $138,992 $119,553 $ 116,555 0.00% Materials, Supplies & Services 106,096 99,633 101,925 0.00% $245,088 $219,186 $ 218,480 0.00% NET TAX AND GENERAL 0.00% REVENUE SUPPORTED $ (12,796) $ (814) $ (6,620) PERSONNEL: Number of FTE positions4.254.254.25 2016 BUDGET 125 CITY OF HOPKINS TIF DISTRICT 2-6 BUDGET Revenues and Expenditures Special Revenue Fund 228 ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenues Tax Increment$ 12,587$ 1 2,587$ 1 2,587$ 1 2,000$ 1 2,000 Interest (49) 8 2 0 1 00 1 0-90.00% Miscellaneous 6,437 6 ,437 7 ,024 7 ,024 7 ,024 Transfers In 26,204 2 5,302 2 1,870 2 1,870 2 3,318 Total Revenues3.31% 45,180 4 4,334 4 1,501 4 0,994 4 2,352 Expenditures Materials, Supplies and Services Professional & Technical Services 471 5 23 5 28 5 50 5 50 Operations 1,800 1 ,500 1 ,375 1 ,500 1 ,500 Interest Expense 9,694 8 ,302 6 ,910 6 ,910 5 ,518-20.14% Total Expenditures 11,965 1 0,325 8 ,813 8 ,960 7 ,568-15.54% Transfers out for debt - - - - - Total Expenditures 11,965 1 0,325 8 ,813 8 ,960 7 ,568-15.54% 8.58% Excess of Revenues over Expenditures 33,214 3 4,009 3 2,688 3 2,034 3 4,784 The Tax Increment 2-6 Fund is the handicapped housing development. The funds records the use of tax increment receipts. 2016 BUDGET 126 CITY OF HOPKINS FUND 226 – TAX INCREMENT 2-6 FUND PROGRAM: SonomaHandicap Housing Project PROGRAM SUMMARY th Avenue and Excelsior Boulevard. Coordinate redevelopment of northwest corner of 5 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Assist in preparation of program budget and other required documents. 2. Prepare required annual State Auditor report. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Tax Increments $ 12,587 $ 12,000 $ 12,000 0.00% Miscellaneous $ 7,024 $ 7,024 $ 7,024 Interest 20 100 10 -90.00% Tranfer In 21,870 21,870 23,318 6.62% $ 41,501 $ 40,994 $ 42,352 3.31% EXPENDITURES: Materials, Supplies & Services $ 8,813 $ 8,960 $ 7,568 -15.54% NET TAX AND GENERAL 8.58% REVENUE SUPPORTED $ (32,688) $ (32,034) $ (34,784) PERSONNEL: Number of FTE positions000 2016 BUDGET 127 CITY OF HOPKINS TIF DISTRICT 2-9 BUDGET Revenues and Expenditures Special Revenue Fund 230 ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenues Tax Increment$133,980$119,630$133,405$120,000$120,000 Intergovernmental - Mkt Value Credit - - - - - 6,3091,2001,200 Interest (1,273) 5,293 Transfers In - - - - - Total Revenues132,707124,923139,714121,200121,200 Expenditures Materials, Supplies and Services Professional & Technical Services1,1941,7699181,2001,200 Operations2,9712,6271,8332,6212,000-23.69% Transfers out for debt117,000116,00037,00036,000 --100.00% Total Expenditures121,165120,39639,75239,8213,200-91.96% Excess (deficiency) of Revenues over Expenditures 45.00%118,000 11,542 4,526 99,962 8 1,379 The Tax Increment District 2-9 is the Oaks of Mainstreet development. This fund records the use of tax increments and bond proceeds. Residential homes were built and sold to improve the overall area. 2016 BUDGET 128 CITY OF HOPKINS FUND 229 – TAX INCREMENT 2-9 FUND PROGRAM: Redevelopment Area – Oaks of Mainstreet. PROGRAM SUMMARY Coordinate redevelopment activity on southeast corner of Shady Oak Road and Mainstreet. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Assist in preparation of program budget and other required documents. 2. Prepare required annual State Auditor report. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Tax Increments $133,405 $120,000 $ 120,000 0.00% Interest 6,309 1,200 1,200 0.00% $139,714 $121,200 $ 121,200 0.00% EXPENDITURES: Materials, Supplies & Services $ 2,752 $ 3,821 $ 3,200 -16.25% Transfer Out 37,000 36,000 - -100.00% $ 39,752 $ 39,821 $ 3,200 -91.96% NET TAX AND GENERAL 45.00% REVENUE SUPPORTED $ (99,962) $ (81,379) $(118,000) PERSONNEL: Number of FTE positions000 2016 BUDGET 129 CITY OF HOPKINS TIF DISTRICT 2-11 BUDGET Revenues and Expenditures Special Revenue Fund 231 ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenues Tax Increment$1,794,734$2,403,449$2,597,340$2,400,000$2,400,000 Interest42,1393,00015,000400.00% ( 4,980) 12,347 Miscellaneous - - - - - Total Revenues1,789,7542,415,7962,639,4792,403,0002,415,0000.50% Expenditures Materials, Supplies and Services Professional & Technical Services15,14013,98317,55711,10012,50012.61% Operations50,33846,38442,19746,65446,440-0.46% Debt Service1,575,3141,593,067450,3521,085,0001,335,000 Capital Outlay TIF projects - - - - - Transfers out 240,409237,956188,000209,870211,3180.69% Total Expenditures1,881,2011,891,390698,1071,352,6241,605,25818.68% Excess (deficiency) of Revenues over Expenditures 1,050,3761,941,372 809,742 -22.91% ( 91,447) 524,406 The Tax Increment District 2-11 fund is the SuperValu and Super Value North Annex redevelopment. This fund records the use of tax increments and bond proceeds. 2016 BUDGET 130 CITY OF HOPKINS FUND 231 – TAX INCREMENT 2-11 FUND PROGRAM: Redevelopment Area – North Annex Property PROGRAM SUMMARY Coordinate and review development and redevelopment activity. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Assist in preparation of program budget and other required documents. 2. Prepare required annual State Auditor report. 3. Distribute Pay As You Go (PAYG) financing to developer as scheduled. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Tax Increments $ 2,597,340 $ 2,400,000 $2,400,000 0.00% Interest 42,139 3,000 15,000 400.00% $ 2,639,479 $ 2,403,000 $2,415,000 0.50% EXPENDITURES: Materials, Supplies & Services $ 59,754 $ 57,754 $ 58,940 2.05% Debt Service - PAYG TIF $ 450,352 $ 1,085,000 $ 211,318 -80.52% Transfer Out 188,000 209,870 1,335,000 536.11% $ 698,106 $ 1,352,624 $1,605,258 18.68% NET TAX AND GENERAL -22.91% REVENUE SUPPORTED $(1,941,373) $(1,050,376) $ (809,742) PERSONNEL: Number of FTE positions000 Super Valu Development Excelsior Crossings Development 2016 BUDGET 131 CITY OF HOPKINS 5TH AVENUE FLATS Revenues and Expenditures Special Revenue Fund 232 ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenues Tax Increments$ -$ -$ -$ -$ - Interest (1,985) (2,126) (2,444) - - Development Fees - - - - - Other Miscellaneous - - - - - Transfer In - - - - - Total Revenues (1,985) (2,126) (2,444) - - Expenditures Materials, Supplies and Services Professional & Technical Services 2,285 2,000 1,833 2,000 2,000 Miscellaneous Other Charges - - - - - Capital Outlay TIF Projects - - - - - Total Expenditures 2,285 2,000 1,833 2,000 2,000 Excess of Revenues over Expenditures $ (4,270)$ (4,126)$ (4,277)$ (2,000)$ (2,000) 5th Avenue Flats is a redevelopment of a block within the downtown district. The fund records the costs and reimbursement of project expenses. 2016 BUDGET 132 CITY OF HOPKINS TH FUND 232 – 5 AVENUE FLATS th PROGRAM: Redevelopment Area –6 & Mainstreet PROGRAM SUMMARY Redevelopment of property between Fifth and Sixth Avenues, north of Mainstreet into an apartment development. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Work with developer on project implementation. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Tax Increments $ - $ - $ - 0.00% Miscellaneous (2,444) - - 0.00% $ (2,444) $ - $ - 0.00% EXPENDITURES: Materials, Supplies & Services $ 2,000 $ 2,000 $ 2,000 0.00% NET TAX AND GENERAL 0.00% REVENUE SUPPORTED $ 4,444 $ 2,000 $ 2,000 PERSONNEL: Number of FTE positions000 2016 BUDGET 133 ProposedFifth CITY OF HOPKINS TIF 1-4 MARKETPLACE II Revenues and Expenditures Special Revenue Fund 234 ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenues $122,000 16.19% Tax Increments$ 3,134$ 103,167$ 119,176$105,000 Interest (9) 22 17 1 00 100 Transfers In - - - - - Total Revenues105,100 122,10016.18% 3,125 103,189 119,193 Expenditures Materials, Supplies and Services 67.61% Professional & Technical Services 3,761 3,844 8,055 3 ,550 5,950 Miscellaneous - - 11,023 - - Interest Expense - - - - - Total Expenditures67.61% 3,761 3,844 19,077 3 ,550 5,950 Excess of Revenues over Expenditures $116,150 14.38% $ (636)$ 99,346$ 100,116$101,550 The Tax Increment District 1-4 Fund is the redevelopment of several blocks of the downtown business district into a housing and retail development. This fund records the tax increment revenues. 2016 BUDGET 134 CITY OF HOPKINS FUND 233 – TAX INCREMENT 1-4 FUND PROGRAM: Redevelopment Area –Marketplace & Main PROGRAM SUMMARY thth and 8 Avenues into mixed-use apartment, townhome & retail Redevelopment of property between 6 development. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Assist in preparation of program budget and other required documents. 2. Prepare required annual State Auditor report. 3. Work with developer on implementation of project. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Tax Increments $ 119,176 $ 105,000 $ 122,000 16.19% Miscellaneous 17 100 100 0.00% $ 119,193 $ 105,100 $ 122,100 16.18% EXPENDITURES: Materials, Supplies & Services $ 74,146 $ 101,550 $ 120,950 19.10% NET TAX AND GENERAL -67.61% REVENUE SUPPORTED $ (45,047) $ (3,550) $ (1,150) PERSONNEL: Number of FTE positions000 2016 BUDGET 135 CITY OF HOPKINS ARTS CENTER Revenues and Expenditures Special Revenue Fund 251 ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenues 64.71% Current Services$ -$ - $ 8 3,587$ 85,000$ 140,000 Grants-38.15% 63,630 44,220 7 3,353 63,000 38,967 Current Services2.61% 369,822 361,508 3 58,491 375,901 385,721 Charges for Service - - - - - Other Revenues-23.14% 194,819 125,365 1 75,042 176,300 135,500 Transfers In 147,920 147,920 8 6,920 86,920 86,920 Total Revenues0.00% 776,191 679,013 7 77,392 787,121 787,108 Operating Expenses Salaries, Wages and Benefits Salaries and Wages11.46% 277,799 287,623 3 00,823 295,129 328,947 Fringe Benefits0.11% 83,835 88,609 9 9,003 101,001 101,110 Materials, Supplies and Services Professional & Technical Services4.75% 177,335 156,376 1 50,676 168,400 176,400 Utilities and Maintenance-5.29% 83,598 79,500 7 9,923 93,650 88,700 Operations-2.18% 96,669 109,772 7 1,109 102,100 99,870 City Support Services-38.39% 8,965 10,064 1 6,175 17,697 10,904 Supplies and Materials18.00% 28,363 23,531 3 5,939 28,800 33,983 Capital Outlay Equipment - - 1 0,169 195,310 106,800 Total Expenses1,002,087 946,714-5.53% 756,563 755,475 7 63,815 Excess (deficiency) of Revenues over Expenditures-25.75% 19,628 (76,462) 13,577 (214,966) (159,606) The Arts Center accounts for the maintenance, operation, programming and promotion of the Hopkins Center for the Arts 2016 BUDGET 136 CITY OF HOPKINS FUND 250 – ARTS CENTER FUND PROGRAM: Facility Operations and Programming & Promotions PROGRAM SUMMARY The goal of this program is to engage and involve residents, attract visitors, and enhance the lives of our citizens through managing, maintaining, scheduling, programming, promoting and utilizing the Art Center as a focal point for arts, education and community gathering. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Build relationships in our community and collaborate with tenants, partners, businesses and residents to meet City Strategic Plan goals and engage a broad segment of the community. 2. Operate within a balanced budget that maximizes revenues and controls expenses, with the goal of financial sustainability. 3. Increase the fundraising capacity of the Arts Center to address operating and capital needs. 4. Build participation in Center arts activities, including concerts and exhibitions, and explore creative alternatives for delivering arts programming. 5. Strengthen the identity and enhance the reputation of the Hopkins Center for the Arts. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Taxes $ 83,587 $ 85,000 $ 140,000 64.71% Intergovernmental 37,337 58,000 35,967 -37.99% Charges for Service 501,835 533,401 489,921 -8.15% Foundation/Corporate Grants 36,016 5,000 3,000 -40.00% Miscellaneous 31,698 18,800 31,300 66.49% Tranfer In 86,920 86,920 86,920 0.00% $ 777,393 $ 787,121 $ 787,108 0.00% EXPENDITURES: Salaries/Wages/Benefits $ 399,826 $ 396,130 $ 430,057 8.56% Materials, Supplies & Services 353,820 410,647 409,857 -0.19% Capital Expenditures 10,169 195,310 106,800 $ 763,815 $ 1,002,087 $ 946,714 -5.53% NET TAX AND GENERAL -25.75% REVENUE SUPPORTED $ (13,578) $ 214,966 $ 159,606 PERSONNEL: Number of FTE positions3.83.84.6 2016 BUDGET 137 CITY OF HOPKINS EQUIPMENT REPLACEMENT BUDGET Revenues and Expenses Internal Service Fund 603 ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenues Current Services$317,113$343,792$345,477$376,900$408,4598.37% Intergovernmental Revenue - -237,120 - - Interest Earnings2,9319,4416,0235,3005,300 Miscellaneous29,65327,23527,53530,00030,000 Transfers In475,349 - - - - Total Revenue825,046380,468616,155412,200443,7597.66% s Operating Expenses Materials, Supplies and Services -14,87017,00820,00020,000 Professional & Technical Services2,7162,0002,0002,8002,500-10.71% Utilities and Maintenance1,08211,17845,52545,23251,55013.97% City Support Services8,5749,4156,7447,3577,350-0.10% Total Operating Expenses12,37237,46371,27675,38981,4007.97% Non-operating expenses472,311476,963484,826478,965487,6291.81% Total Expenses484,684514,426556,103554,354569,0292.65% -11.88% Net Income (Loss) 340,362 ( 133,957) 60,053 (142,154) (125,270) Capital581,193478,0341,134,325408,7001,128,175 The Equipment Replacement fund is an internal service fund. It accounts for the acquisition of machinery and equipment. User charges are billed to the various departments. 2016 BUDGET 138 CITY OF HOPKINS FUND 602 – EQUIPMENT REPLACEMENT FUND PROGRAM: Equipment Replacement PROGRAM SUMMARY Coordinate and review twenty-year equipment replacement plan on an annual basis. The objective of this fund is to stabilize the required funding on an annual basis while enabling the fund to purchase scheduled equipment replacement without issuing bonds. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Update 5-year Equipment Replacement Plan. 2. Analyze future needs. 3. Review revenue structure to accommodate equipment needs as identified in the long-range 20-year plan. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange REVENUES: Intergovernmental Revenue$237,120 $0 $0 #DIV/0! Charges for Service345,477 376,900 408,459 8.37% Interest6,023 5,300 5,300 0.00% Miscellaneous27,535 30,000 30,000 0.00% Transfer In0 0 0 0.00% 616,155 412,200 443,759 7.66% EXPENDITURES: Materials, Supplies & Services71,276 75,389 81,400 7.97% Depreciation475,862 470,000 470,000 0.00% Debt Service8,964 8,965 17,629 96.64% 556,102 554,354 569,029 2.65% NET SOURCE (USE) -11.88% OF EQUITY$60,053($142,154)($125,270) Capital Purchases$1,134,325 $408,700 $1,128,175 176.04% PERSONNEL: Number of FTE positions000 2016 BUDGET 139 CITY OF HOPKINS WATER BUDGET Revenues and Expenses Enterprise Fund 703 ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenues Current Services$1,343,056 $1,352,283-8.56% $ 1,358,246$ 1,526,400$ 1,395,700 Intergovernmental Revenue - 9,580 - - - Permits 3,655 4,846 2,467 1,000 2,000100.00% Interest Earnings 138 3,735 2,631 1,000 1,000 Miscellaneous5.31% 136,421 140,720 1 52,898 1 47,000 1 54,800 Total Revenues1,483,2701,511,163 1,675,4001,516,242 1,553,500 -7.28% Non-operating Revenue s 21,855 - 496,275 - -#DIV/0! Total Revenues1,505,1251,511,163 1,675,4002,012,517 1,553,500 -7.28% Operating Expenses Salaries, Wages and Benefits Salaries and Wages0.14% 280,938 303,986 4 01,427 2 49,659 2 50,013 Fringe Benefits0.99% 112,857 106,536 1 22,463 94,647 95,584 Materials, Supplies and Services 7.89% Professional & Technical Services 79,140 106,692 1 25,414 1 20,400 1 29,900 Utilities and Maintenance33.36% 296,148 247,943 3 79,449 3 59,700 4 79,700 Operations 8,449 9,611 13,227 19,900 21,90010.05% City Support Services 209,244 245,992 2 31,161 2 51,827 2 24,927-10.68% Supplies and Materials14.05% 82,964 111,256 1 08,851 87,900 1 00,250 Depreciation 249,756 226,925 2 41,636 2 50,000 2 50,000 Total Operating Expenses1,319,4941,358,940 1,434,0331,623,627 1,552,274 8.25% Non-operating expenses2.16% 64,620 114,154 119,755 137,510 1 40,487 Total Expenses1,384,1151,473,094 1,571,5431,743,382 1,692,761 7.71% Net Income (Loss) 121,011 38,070 2 69,135 1 03,857 (139,261)-234.09% The Water fund is a utility enterprise. The operations of water pumps, wells and distribution are recorded here. 2016 BUDGET 140 CITY OF HOPKINS FUND 703 – WATER FUND PROGRAM: Pumps & Wells and Water Distribution PROGRAM SUMMARY The Pumps & Wells program of the Water Utility Fund provides maintenance to the City’s water well pumping system so that a continued supply of potable water is furnished to water customers at the most reasonable cost. Water supply must be maintained at proper levels, as well as bacterial free. Metering devices are also maintained. The Water Distribution program of the Water Utility Fund provides maintenance to the City’s water system so that a continued supply of potable water is furnished to water customers at the most reasonable cost. Water supply must be maintained at proper levels, as well as bacterial free. Metering devices are also maintained. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Produce water supply sufficient to meet the needs of 17,000 people. 2. Flush and check all hydrants annually. 3. Check all wells each day. 4. Test samples each month to ensure safe water supply. 5. Reduce copper levels at taps to comply with Safe Drinking Water Act. 6. Install new effluent and discharge valves at water treatment plan #4. 7. Install dehumidifiers in # 4 Treatment Plant 8. Paint High Service Pump Room 9. Install new check valves at water treatment plan #4 10. Install new valves & hydrants in new construction areas. FY 2015FY 2016 FY 2015ApprovedApprovedPercent BudgetBudgetChange Actual $1,358,096 $1,525,400 $1,395,200 -8.54% OPERATING REVENUES: OPERATING EXPENSES: Salaries/Wages/Benefits523,890 344,306 345,597 0.37% Materials, Supplies & Services858,101 839,727 956,677 13.93% Depreciation Expense241,636 250,000 250,000 0.00% 8.25% Operating Income (Loss)1,623,627 1,434,033 1,552,274 654,421 150,000 158,300 5.53% NON-OPERATING REVENUES: (119,755)(137,510)(140,487)2.16% NON-OPERATING EXPENSES: 234.09% NET INCOME (LOSS)$269,135 $103,857 ($139,261) Capital Outlay/Construction$30,070 $256,800 $2,305,000 797.59% PERSONNEL: Number of FTE positions3.433.433.7 2016 BUDGET 141 CITY OF HOPKINS SANITARY SEWER BUDGET Revenues and Exenses p Enterprise Fund 707 ActualActualActualBudgetBudgetPercent 20132014201520152016 Change Revenues Current Services$1,995,491 $2,026,839 $2,172,278 $2,207,500 $2,276,200 3.11% Intergovernmental Revenue -86,445 - - -#DIV/0! Permits - - - - -#DIV/0! Interest Earnings33 3,497 2,415 1,000 1,000 Miscellaneous Revenue3,992 650 150 200 - -100.00% Total Revenues1,999,516 2,117,430 2,174,842 2,208,700 2,277,200 3.10% Non-operating revenue - -297,004 - -#DIV/0! Total Revenues1,999,516 2,117,430 2,471,846 2,208,700 2,277,200 3.10% Operating Expenses Salaries, Wages and Benefits Salaries and Wages149,136 163,324 212,388 249,413 262,940 5.42% Fringe Benefits57,724 66,117 74,183 98,917 96,676 -2.27% Materials, Supplies and Services Professional & Technical Services83,620 14,797 38,027 117,100 130,600 11.53% Utilities and Maintenance70,310 95,617 47,400 150,570 161,300 7.13% Operations1,230,142 1,293,329 1,327,190 1,321,619 1,458,366 10.35% City Support Services168,505 173,585 143,573 156,634 174,472 11.39% Supplies and Materials15,215 17,696 17,450 28,750 35,100 22.09% Depreciation171,604 158,431 174,826 170,000 170,000 Total Operating Expenses1,946,258 1,982,896 2,035,037 2,293,003 2,489,454 8.57% Non-operating expenses45,015 96,460 109,557 91,618 116,790 27.47% Total Expenses1,991,273 2,079,356 2,144,594 2,384,621 2,606,244 9.29% Net Income (Loss)8,243 38,074 327,252 (175,921) (329,044)87.04% The Sanitary Sewer fund is a utility enterprise. The operations of the Lift Stations and the Collection/Disposal process is recorded here. 2016 BUDGET 142 CITY OF HOPKINS FUND 707 – SEWER FUND PROGRAM: Lift Stations, Collection & Disposal PROGRAM SUMMARY The Lift Stations program of the Sewer Utility Fund provides maintenance and repairs to the City’s sanitary sewer lift station system. The system is comprised of 6 sanitary sewer lift stations that pump sewage to the Metro Sewer System for disposal. The Collection & Disposal program of the Sewer Utility Fund provides maintenance to the City’s sanitary sewer system. The system is comprised of sewers, manholes, and lift stations so that sewage may be transported to the Metro Sewer System for disposal. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Clean 33% of sanitary sewer lines in the City plus monthly checks of manholes in problem areas. 2. Check daily the operation of sanitary sewer lift stations and repair as needed. 3. Inform neighborhoods prior to scheduled sanitary sewer line maintenance. 4. Verify accuracy and implement new utility mapping system. 5. Inform neighborhoods prior to scheduled sanitary sewer line maintenance. 6. Repair or replace manhole cover & casting as needed. 7. Line & repair sewer mains as needed per T.V. reports, also repair of manhole structures. 8. Replace discharge pipe, check valves, guide rails and base elbows at LS 4 9. Emergency generators maintenance program. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange $2,172,277 $2,207,500 $2,276,200 3.11% OPERATING REVENUES: OPERATING EXPENSES: Salaries/Wages/Benefits286,572 348,330 359,616 3.24% Materials, Supplies & Services1,573,639 1,774,673 1,961,038 10.50% Depreciation Expense174,826 170,000 170,000 0.00% 8.62% Operating Income (Loss)2,035,037 2,293,003 2,490,654 299,569 1,200 1,000 -16.67% NON-OPERATING REVENUES: (109,557)(91,618)(116,790)27.47% NON-OPERATING EXPENSES: 87.72% NET INCOME (LOSS)$327,252 ($175,921)($330,244) Capital Outlay/Construction$0 $156,800 $815,600 420.15% PERSONNEL: Number of FTE positions3.763.763.6 2016 BUDGET 143 CITY OF HOPKINS REFUSE BUDGET Revenues and Expenses Enterprise Fund 717 ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenues Current Services$893,583$ 908,441$ 915,728$ 909,700$ 965,5676.14% County Grant24,58424,64527,95625,000 --100.00% 10,7822,5003,00020.00% Interest Earnings (1,791) 9,314 Miscellaneous20,22013,20112,21912,60012,600 Total Revenues936,596955,602966,685949,800981,1673.30% Operating Expenses Salaries, Wages and Benefits Salaries and Wages194,321187,328201,820250,591256,6192.41% Fringe Benefits63,41660,74964,57487,09791,4615.01% Materials, Supplies and Services Professional & Technical Services122,959118,655120,768125,840135,8407.95% Utilities and Maintenance45,18959,42325,29630,90046,50050.49% Operations123,187144,747129,038139,860140,8100.68% City Support Services150,044117,537123,480134,782123,093-8.67% Supplies and Materials66,92476,70998,75455,60065,65018.08% Depreciation53,67347,90952,21456,00056,000 Total Operating Expenses819,713813,057815,943880,670915,9734.01% Non-operating expenses25,00025,00025,00025,00025,000 Total Expenses844,713838,057840,943905,670940,9733.90% Net Income (Loss)-8.92% 91,883 117,546 125,742 44,130 40,194 The Refuse fund is a utility enterprise. The operations of bulk collections, yard waste, recycling, brush service and refuse disposal are recorded here. 2016 BUDGET 144 CITY OF HOPKINS FUND 717 – REFUSE FUND PROGRAM: Bulk Collection PROGRAM SUMMARY The Bulk Collection program of the FY 2015FY 2016 Refuse Utility Fund is a user fee based FY 2015ApprovedApprovedPercent service that provides bulk item pickup ActualBudgetBudgetChange for larger items. Pick ups are scheduled on a call-in basis and take place $18,491 $13,000 $13,000 0.00% OPERATING REVENUES: Thursdays throughout the year. A bulk item drop off event is provided twice per OPERATING EXPENSES: year (spring & fall). Salaries/Wages/Benefits15,199 15,128 16,713 10.48% Materials, Supplies & Services22,444 23,916 23,363 -2.31% MAJOR OBJECTIVES TO BE 2.64% Operating Income (Loss)37,643 39,044 40,076 ACCOMPLISHED IN 2016: 1. Review and expand user fee based 3.96% NET INCOME (LOSS)($19,152)($26,044)($27,076) system. (Council Approval Required) PERSONNEL: Number of FTE positions0.260.260.26 2. Improve drop off procedures and increase efficiency at our bi-annual drop offs. PROGRAM: Yard Waste/Leaf Collection PROGRAM SUMMARY The Yard Waste/Leaf Collection program of the Refuse Utility Fund is a user fee based service that provides bagged yard waste and leaf collection weekly, mid-April through November, for Hopkins residential refuse customers. (Subject to change upon Council review.) A free drop-off site is also available to Hopkins residents three times a week. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Continue to explore ways to improve our user fee based system. (Council Approval Required) 2. Monitor usage of free residential drop off site. 3. Track impact of curbside fee increase and compostable bag requirement. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange $10,170 $10,000 $10,000 0.00% OPERATING REVENUES: OPERATING EXPENSES: Salaries/Wages/Benefits40,290 42,767 42,643 -0.29% Materials, Supplies & Services23,577 25,886 25,096 -3.05% -1.33% Operating Income (Loss)63,867 68,653 67,739 -1.56% NET INCOME (LOSS)($53,697)($58,653)($57,739) PERSONNEL: Number of FTE positions0.620.620.62 2016 BUDGET 145 CITY OF HOPKINS FUND 717 – REFUSE FUND PROGRAM: Recycle PROGRAM SUMMARY The Recycle program of the Refuse Utility Fund provides bi-weekly single stream recycle collection for 2,990 residences in the City Service area. Collection is provided by a private licensed hauler who is contracted by the City. Commercial and multi-family properties are required to contract independently for recycling services. FY 2015FY 2016 FY 2015ApprovedApprovedPercent BudgetBudgetChange MAJOR OBJECTIVES TO BE ACCOMPLISHED Actual IN 2016: OPERATING REVENUES: $155,638 $154,700 $171,900 11.12% 1. Monitor the Single Stream Recycling Program and work with residents to increase the OPERATING EXPENSES: volume of waste recycled. Salaries/Wages/Benefits31,781 32,032 34,112 6.49% 2. Verify compliance of commercial and multi- Materials, Supplies & Services141,566 155,193 160,456 3.39% Operating Income (Loss)173,347 187,225 194,568 3.92% family properties. 3. Continue to promote waste abatement NON-OPERATING REVENUES:28,061 26,600 1,600 -93.98% through public awareness campaigns and educational presentations. NET INCOME (LOSS)$10,352 ($5,925)($21,068)255.58% PERSONNEL: Number of FTE positions0.410.410.41 PROGRAM: Brush Service PROGRAM SUMMARY The Brush Service program of the Refuse Utility Fund is a user fee based service that provides for the collection of curbside brush weekly on a call-in basis on Tuesdays throughout the year. Free yard waste/brush drop off is offered three times per week from mid-May through November. (Subject to change upon Council review.) MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Continue to explore ways to improve our user fee based system. (Council Approval Required) 2. Monitor impact of curbside brush pick-up fee increase on program usage. 3. Continue free residential drop off system. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange OPERATING REVENUES:$0 $0 $0 0.00% OPERATING EXPENSES: Salaries/Wages/Benefits28,362 57,443 58,422 1.70% Materials, Supplies & Services20,450 28,876 27,616 -4.36% Operating Income (Loss)48,812 86,319 86,038 -0.33% NET INCOME (LOSS)($48,812)($86,319)($86,038)-0.33% PERSONNEL: Number of FTE positions0.6550.6550.655 2016 BUDGET 146 CITY OF HOPKINS FUND 717 – REFUSE FUND PROGRAM: Disposal PROGRAM SUMMARY The Disposal program of the Refuse Utility Fund provides automated refuse collection by City refuse trucks and personnel. Residential Refuse is collected from roll out carts with a fully automated truck on one of four designated route days. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Continue to improve refuse collection service to our residents. 2. Maintain excellent customer service through monitoring of operations and communicating with residents. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange OPERATING REVENUES: $743,543 $743,000 $781,667 5.20% OPERATING EXPENSES: Salaries/Wages/Benefits150,762 190,318 196,190 3.09% Materials, Supplies & Services289,299 253,111 275,362 8.79% Depreciation Expense52,214 56,000 56,000 0.00% Operating Income (Loss)492,275 499,429 527,552 5.63% NON-OPERATING REVENUES: 10,782 2,500 3,000 20.00% NON-OPERATING EXPENSES:(25,000)(25,000)(25,000)0.00% NET INCOME (LOSS)$237,050 $221,071 $232,115 5.00% Capital Outlay/Construction$232,515 $204,800 $0 -100.00% PERSONNEL: Number of FTE positions2.1452.1452.145 2016 BUDGET 147 CITY OF HOPKINS STORM SEWER BUDGET Revenues and Expenses Projected Enterprise Fund 740 ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenues Current Services$799,603$802,898$805,542$802,000$802,000-0.44% -88.07% Interest Earnings (1,717) 8,944 8,385 1,000 2,000 Total Revenues797,886811,842813,927803,000804,000-1.34% Non-operating revenues - -605,843 - --100.00% Total Revenues797,886811,8421,419,770803,000804,000-43.44% Operating Expenses Salaries, Wages and Benefits Salaries and Wages49,81945,50339,53449,86151,28926.12% Fringe Benefits17,09613,70110,52616,13314,28253.27% Materials, Supplies and Services Professional & Technical Services14,5868,8011,00014,00014,0001300.00% Utilities and Maintenance17,37296,8344,90944,00044,500796.31% City Support Services77,80287,49063,51169,18654,5118.94% Supplies and Materials9741,6688611,5001,50074.30% Depreciation227,366211,108230,152227,000227,000 Total Operating Expenses405,016465,103350,492421,680407,08220.31% Non-operating expenses155,437415,10769,63469,51297,414-0.17% Total Expenses560,452880,210420,126491,192504,49616.92% Net Income999,644311,808299,504-68.81% 237,434 (68,368) The Storm Sewer fund is a utility enterprise. The reconstruction of storm sewers and ponding for drainage throughout the city is recorded here. 2016 BUDGET 148 CITY OF HOPKINS FUND 740 – STORM SEWER FUND PROGRAM: Sewer Maintenance PROGRAM SUMMARY The Sewer Maintenance program of the Storm Sewer Fund maintains all storm sewer lines and storm inlets to assure adequate run-off. Creeks and ditches must be monitored to assure proper run-off and weed and pollution control. This work is done with staff and equipment from the Water & Sewer and Street & Sanitation divisions. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Continue upgrades of storm water system including catch basin maintenance upgrades and open drainage ditch maintenance. 2. Continue reviewing overall city storm water drainage system and meet all requirements of city’s National Pollution Discharge Elimination System (NPDES), Phase II Storm Water Pollution Prevention Plan (SWPPP). 3. Complete construction of watershed-funded Nine Mile Creek stream bank stabilization and habitat enhancement project. 4. Continue grit chamber cleaning 5. Clean catch basins and inspect for repair. 6. Work with MCWD to plan and design storm water improvements at expanded Cottageville Park site FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange OPERATING REVENUES: $805,542 $802,000 $802,000 0.00% OPERATING EXPENSES: Salaries/Wages/Benefits50,059 65,994 65,571 -0.64% Materials, Supplies & Services70,280 128,686 114,511 -11.02% Depreciation Expense230,152 227,000 227,000 0.00% Operating Income (Loss)350,491 421,680 407,082 -3.46% NON-OPERATING REVENUES: 614,228 1,000 2,000 100.00% NON-OPERATING EXPENSES: (69,634)(69,512)(97,414)40.14% NET INCOME (LOSS)$999,645 $311,808 $299,504 -3.95% Capital Outlay/Construction$1,586,978 $470,000 $561,000 19.36% PERSONNEL: Number of FTE positions0.630.630.63 2016 BUDGET 149 CITY OF HOPKINS PAVILION Revenues and Expenses Projected Enterprise Fund 747 ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenues Rental$ 378,131$ 352,112$ 323,156$ 356,000$ 356,000 Interest Earnings (326) 877 - 1,000 --100.00% Miscellaneous-14.88% 27,054 25,058 24,642 33,600 28,600 Total Revenues378,048 -1.54% 404,859 347,798 390,600384,600 Non-operating revenues - 10,373 63,918 65,000 65,000 Total Revenues-1.32% 404,859 388,421 411,716 455,600 449,600 Operating Expenses Salaries, Wages and Benefits Salaries and Wages2.71% 174,644 181,248 181,751 182,893 187,858 Fringe Benefits3.28% 49,115 50,007 51,608 50,707 52,368 231,255 2.84% Total Salaries and Wages 223,759 233,359 233,600240,226 Materials, Supplies and Services -3.50% Professional & Technical Services 7,209 6,080 6,388 7,150 6,900 Utilities and Maintenance11.78% 84,584 98,572 90,167 85,075 95,100 Operations1.02% 70,675 76,688 82,701 73,700 74,450 City Support Services-2.96% 16,719 17,602 15,166 16,566 16,076 Supplies and Materials-2.30% 19,739 18,314 16,670 19,550 19,100 4.74% Total Materials Supplies & Service 198,926 217,256 211,093 202,041 211,626 435,6413.72% Total Operating Expenses 422,685 448,510 444,452 451,852 Non-operating expenses 3,130 3,363 3,016 3,025 2,625-13.22% Total Expenses3.60% 425,815 451,874 447,468 438,666 454,477 Net Income (Loss) (20,956) (63,453) (35,752) 16,934 (4,877)-128.80% The Pavilion fund is an ice rink enterprise. The operations for the ice arena, soccer league and dry floor are recorded here. 2016 BUDGET 150 CITY OF HOPKINS FUND 747 – PAVILION FUND PROGRAM: Ice, Turf, Dry Floor, & Room Rental PROGRAM SUMMARY The rental programs of the Pavilion Fund manages and schedules public use groups and maintenance for the ice arena/pavilion which will utilize the facility to its maximum potential and generate adequate revenue to offset the cost of operations. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2016: 1. Create and market programs, events, and opportunities to increase the community’s recreational options. 2. Meet with local athletic associations to gather input and ideas on how we can better serve their needs. 3. Develop and utilize energy saving procedures and equipment. Evaluate environmental impact of current facility supplies and replace with eco-friendly products where appropriate 4. Operate a budget to maximize revenues. FY 2015FY 2016 FY 2015ApprovedApprovedPercent ActualBudgetBudgetChange OPERATING REVENUES: $342,106 $380,100 $377,600 -0.66% OPERATING EXPENSES: Salaries/Wages/Benefits233,359 233,600 240,226 2.84% Materials, Supplies & Services130,236 130,041 139,626 7.37% Depreciation Expense80,857 72,000 72,000 0.00% Operating Income (Loss)444,452 435,641 451,852 3.72% NON-OPERATING REVENUES:69,610 75,500 72,000 -4.64% NON-OPERATING EXPENSES: (3,016)(3,025)(2,625)-13.22% NET INCOME (LOSS)($35,752)$16,934 ($4,877) -128.80% Capital Outlay/Construction$0 $60,000 $125,000 108.33% PERSONNEL: Number of FTE positions2.42.42.4 ActualActualProjected SELECTED WORK INDICATORS201420152016 1. Rented prime hours ice1,2681,2171,230 2. Rented non-prime hours ice103148150 3. Pavilion leases for summer use898 4. Hours ice resurfacer is in use231191220 5. Hours of part-time employment3,5943,7603,700 6. Open skate hours269269270 7. Teams for indoor soccer880 8. Dry Floor Use Hours403355375 9. Hours compressors in use3,3594,9754,500 10. Hours of turf use813818825 11. Hours Of Mezzanine Rental Use1,9992,8493,000 2016 BUDGET 151 CITY OF HOPKINS DEBT SERVICE FUNDS Revenues and Expenditures ActualActualActualBudgetBudgetPercent 20132014201520152016Change Revenues Property Tax$351,970 $1,589,092$1,530,837$1,514,844$2,799,32584.79% Special Assessments1,280,6811,020,853828,529906,509909,3550.31% Interest(362)20,44428,2985,550 182.65%15,687 Bond Premium42,010190,674425,129 - - Transfer In808,1206,967,005756,248650,291391,277-39.83% Bond Proceeds1,920,0008,240,00018,735,000 - - Total Revenues4,402,419 22,304,04118,028,0684,115,64433.75% 3,077,194 Expenditures Bond expenditures Professional Fees10,853329,05217,95047.42% 98,482 12,176 Principal1,560,0008,570,0008,570,0003,075,000-64.12% 1,970,000 Interest655,973617,988617,988814,19931.75% 683,725 Fiscal charges3,5887,3785,3752.33% 5,674 5,500 Bond Discount 43,610-- - - Deposit to Escrow Account-3,937,887 - - Transfer Out2,389,5997,118,707170,000 -100.00%- 8,269,466 Total Expenditures4,620,013 20,581,01211,070,9573,912,649-58.27% 9,375,539 Sources (Uses) of Fund Balance(217,594)6,957,1111,723,029(6,298,345)202,995-465.54% Debt Service funds finance and account for the payment of interest and principal on all general obligation debt other than debt issued for an enterprise fund. InJanuary 2014 the City's credit AA+ rating was upgraded to a following an interium rating review. This rating has been reaffirmed each year since. 2016 BUDGET 152 CITY OF HOPKINS GLOSSARY OF TERMS Accrual Basis – The basis of accounting under which revenues are recorded when earned and expenditures are recorded as soon as they result in liabilities for benefits received, notwithstanding that the receipt of cash or the payment of cash may take place, in whole or in part, in another accounting period. Adopted Budget – The financial plan of revenues and expenditures for a fiscal year as adopted by the City Council. Appropriation – A specific amount of money authorized by the City Council, generally during adoption of the annual budget, used to make expenditures for specific purposes. Ad Valorem Tax – Money collected from all the real property within the City based upon the value of the property. Annual Budget – The budget authorized by resolution of the City Council for the fiscal year. Appropriation – Authorization by the City Council to incur obligations and spend City funds. Appropriations are usually made for fixed amounts and are typically granted for one year. Artstreet - Hopkins Artstreet is an ongoing program established in 2010 to showcase original art works in an accessible setting. A collaboration among the City of Hopkins, the Hopkins Business & Civic Association and the Friends of the Hopkins Center for the Arts, this project is part of a long- term vision for incorporating public art into Hopkins and enriching the lives of its residents and visitors. This project is made possible, in part, by funds provided by the Metropolitan Regional Arts . Council through an appropriation by the Minnesota Legislature Assets – Property owned by a government which as a monetary value. Assessed Valuation – A value established by the City Property Appraiser for all real or personal property for use as a basis for levying property taxes. Balanced Budget – A budget in which expenditures are equal to income. Bond – A written promise to pay a sum of money on a specific date at a specified interest rate as detailed in a bond resolution. Bond Proceeds – Funds received from the sale of any bond issue. Budget – The financial plan for a specific period of time that identified proposed expenditures and the sources of revenue to pay for them. Budget Adjustment – A revision to the adopted budget occurring during the affected fiscal year as approved by the City Council by an amendment or a transfer. Budget Documents – The official written statement prepared by the Finance Director and supporting staff, which presents the proposed budget to the legislative body. 2016 BUDGET 153 CITY OF HOPKINS Budget Calendar – The schedule of key dates involved in the process of adopting and executing an adopted budget. Budget Message – The opening section of the budget which provides the City Council and the public with a general summary of the most important aspects of the budget, changes from the current and previous fiscal years, as well as the views and recommendations of the City Manager. CDBG Community Development Block Grant – This fund receives and expends the City’s allocation of the Federal Community Development Block Grant Program money. Capital Asset – Assets of significant value and having a useful life of several years. Capital assets are also called fixed assets. Capital Improvement Program (CIP) – A five year schedule of capital improvement projects and the means of financing them. This is a flexible budget document that is used as a planning tool for needed improvements. Amounts approved in the CIP are considered guidelines and are not officially adopted as budgeted amounts until they are incorporated in the operating budget of one of the City’s funds. Capital Outlay – Expenditures that result in the acquisition of fixed assets that have a value over $1,000 and a useful life greater than one year. Capital Project Funds – The funds that account for all resources unused for the acquisition or construction of capital facilities, except those financed by Proprietary Funds. Certified Levy – Total tax levy of a jurisdiction, which is certified to the County Auditor. CERT – Community Emergency Response Team. The CERT Program consists of a group of volunteers who have been trained to assist with basic disaster response such as fire safety, light search and rescue, team organization and disaster medical operations. Contingency – A budgetary reserve set aside for emergencies or unforeseen expenditures. Contractual Services – The cost of items related to a contractual agreement. Examples would be professional services such as legal, engineering, actuarial and consultants. Court Fines and Forfeits – Fines imposed on individuals by the courts for various illegal acts performed within the City. Debt Service Funds – the funds that account for the payment of principal and interest on outstanding debt for the City. Deficit – The excess of expenditures over revenues. Department – Basic organizational unit of City government, responsible for carrying out a specific function. Depreciation – Expenditures incurred when spreading the cost of an asset over its estimated useful like rather than deducting the entire cost in the year the asset is purchased. 2016 BUDGET 154 CITY OF HOPKINS Enterprise Fund – The funds that account for the financing of self-supporting activities of governmental units and render services to the general public based on user charges. Estimated Market Value – Represents the selling price of a property if it were on the market. Estimated market value is converted to tax capacity before property taxes are levied. Expenditure – Decreases in financial resources other than through interfund transfers. Fiscal Disparities – The program created by the Metropolitan Fiscal Disparities Act which shares growth in the commercial-industrial tax base in the seven county metropolitan area. Forty percent of the value of new commercial-industrial development since 1971 is pooled and redistributed among the 300 taxing districts to address uneven business development throughout the region. Fiscal Year – For budgeting purposes the City’s fiscal year is the calendar year. Fixed Asset – Purchases of a long-term nature, which are to be held and used. Examples would be land, buildings, machinery, furniture and equipment. FTE – Equivalent of one employee working fulltime, or 2.080 hours per year. A FTE can be filled by any number of employees whose combined hours total 2,080 per year. Fund – A separate accounting entity, with a set of self-balancing accounts for recording the collection of revenues and the payment of expenditures to carry out a specific function. Fund Balance – Fund Balance is the difference between assets and liabilities in governmental funds (i.e. general fund, special revenue funds, capital project funds, debt service funds and permanent funds). Non-spendable Fund Balance – Describes the amount of a fund balance that cannot be spent because it is either not in spendable form or there is a legal or contractual requirement for the funds to remain intact. Spendable Fund Balance – Describes the amount of fund balance that is available for appropriation based on the constraints that control how specific amounts can be spent. Typically, a significant portion of a government’s spendable resources can be spent only for specified purposes. The following categories define the revenue source and the level of force of the constraint on spending Restricted Fund Balance – The restricted fund balance category includes the portion of the spendable fund balance that reflects constraints on spending because of legal restrictions stipulated by outside parties (e.g., encumbrances for goods or services with outside parties-creditors, grantors outstanding at the end of the year), Also, any legal restrictions based on state statutes or grant requirements placed on the use for specific purposes Committed Fund Balance – The committed fund balance classification includes the portion of the spendable fund balance that reflects constraints that the city has imposed upon itself by a formal action of the city council (for example, an ordinance or resolution passed by a city council). This constraint must be imposed prior to year end but the amount can be determined at a later date. Assigned Fund Balance – The assigned fund balance is the portion of the spendable fund balance that reflects funds intended to be used by the government for specific purposes assigned by more informal operational plans. In governmental funds other than the general fund (special revenue funds, capital project funds, debt 2016 BUDGET 155 CITY OF HOPKINS service funds and permanent funds); assigned fund balance represents the amount that is not restricted or limited. Unassigned – This is the residual classification for the government’s General Fund and includes all spendable amounts not contained in the other classifications and, therefore, not subject to any constraints. Unassigned amounts are available for any purpose. GASB (Governmental Accounting Standards Board) – It is the highest source of accounting and financial reporting guidance for state and local governments. General Fund – The largest fund in the City, the General Fund accounts for most of the City’s financial resources. General Fund revenues include: property taxes, licenses and permits, local taxes, service charges and other types of revenues. This is the fund that accounts for the revenues and expenditures necessary to deliver basic operating services: police, fire, finance, parks, public works, etc. General Obligation Bonds – When a government pledges its full faith and credit to the repayment of the bonds it issues, then those bonds are general obligation (GO) bonds. Sometimes the term is also used to refer to bonds with are to be repaid from taxes and other general revenues. GFOA (Government Finance Officers Association) – the professional association of state and local finance officers in the United States who are dedicated to the sound management of government financial resources. The association sets program standards for the GFOA’s Certificate of Achievement for Excellence in Financial Reporting and the Distinguished Budget Award. Governmental Funds – The General Fund, Special Revenue Funds, Debt Service Funds and Capital Project Funds. HBCA – Hopkins Business and Civic Association, ensures a strong economic development climate, provides promotional activities, encourages community involvement and fosters a sense of community among individuals, civic organizations and businesses Hopkins in Motion – This annual event focuses on the walkability/ livability of Hopkins and encourages participants to be active while having fun. Indirectly Funded Amount – The portion of appropriates not funded by program revenues such as fees and grants. This portion is funded from shared revenues such as property tax, governmental revenues or a city-wide fee not directly attributed to any one program. Interest Earnings – Interest received from the investment of cash in a fund. Intergovernmental Revenues – Funds received from State or Federal governments in the form of grants or shared revenues for various activities. Internal Service Funds – The funds within the Proprietary Fund that account for the financing of goods or services provided by one department or agency to other departments or agencies of a government. IT – Information Technology Department of the city. This department provides computer technology support to all city departments. 2016 BUDGET 156 CITY OF HOPKINS Levy – To impose taxes, special assessments or service charges. Licenses – Revenues received by the issuance of various licenses that are granted to various businesses in the City. Local Government Aid(LGA) - Money given to the City from the State based on a formula that was originally designed to provide tax relief and equalization among cities. LMC – The League of Minnesota Cities is a membership organization dedicated to promoting excellence in local government. The League serves its more than 800 member cities through advocacy, education and training, policy development, risk management, and other services. LRT – Light Rail Transit, a commuter train system in the Minneapolis/St. Paul metropolitan area. Major Account Series – Three classifications of expenditures made by the City. Salaries, Wages and Benefits – Costs relating to employees or temporary help, including fringe benefits. Materials, Supplies and Services – Costs relating to articles of non-durable nature, such as office supplies; professional and technical services; utilities and maintenance; operations and city support services. Capital Outlay – Costs of durable goods such as furniture and equipment. Reimbursed Expenditures – Offset against costs for services provided by one fund to another fund. Major Fund – Governmental fund or enterprise fund reported as a separate column in the basic fund financial statements and subject to a separate opinion in the independent auditor’s report. Market Value Homestead Credit (MVHC) – Started in 2002, this is the primary State program for property tax relief. The State remits a portion of sales and income taxes to local government to assist in keeping property taxes down. MCES – Metropolitan Council Environmental Services provides the City with wastewater service. Miscellaneous Revenue – Funds collected from various sources generally on a non-recurring basis. Modified Accrual Basis – Under the modified accrual basis of accounting, revenues are recognized in the period in which they become available and measurable, and expenditures are recognized at the time a liability is incurred pursuant to appropriation authority. Net Assets – The equity associated with general government less liabilities. Non-major Fund – A governmental fund or enterprise fund that is reported in total in the basic fund financial statements. Operating Expenditure – Expenditure classifications based upon the types of categories of goods and services purchased. Typical objects include: personal services (salaries and wages); contracted services (utilities, maintenance, contracts, travel); supplied and materials; and capital outlay. 2016 BUDGET 157 CITY OF HOPKINS Operating Budget – Financial plan for the fiscal year, which authorizes proposed personnel complements, expenditures and the revenues to finance them. Penalties – Charges to utility customers caused by late payment of their water, sewer, and refuse bills. Permits – Revenue derived from various permits as defined in the City Code, for the performance of a specific action. For example, building a house. Personal Services – The cost of salaries and wages paid to employees as well as the fringe benefits associated with employment (i.e. Social Security, PERA, health insurance, life insurance, etc.). Program – Within each Department are several divisions or programs in the City, each charged with carrying out a specific function. Proposed Budget – Budget as submitted by the City Manager to the City Council. Proprietary Funds – The funds that account for government operations financed and operated in a manner similar to a private business. Refuse Service – Revenue incurred from the sale of trash pick-up and disposal, leaf pick-up, yard waste and recycling to residential customers of the City. Retained Earnings – An equity account reflecting the accumulated earnings of the City’s Proprietary (Enterprise) Funds. Sewer Service – Revenue incurred from the sale of sanitary sewer service to customers of the utility. Special Assessment – Receipts from assessments placed on property within the City for public improvements that have benefited that property. Special Revenue Funds – A fund that accounts for revenues derived from specific taxes or other earmarked revenue sources. Storm Sewer Sales – Revenue derived from a storm sewer utility fee assessed property owners based on the amount of impervious surface on their property. Revenues are used to maintain and improve the City’s storm sewer system. SWLRT – Southwest Light Rail Transit. A commuter train system in the Southwest area of the Minneapolis/St. Paul metropolitan area. Tax Capacity – County tax base for the purposes of levying property taxes. Properties are assigned rates at which their values will be converted into the tax base, (see tax classification rate). Tax Capacity Rate – Tax rate applied to tax capacity to generate property tax revenue. The rate is obtained by dividing the property tax levy by the available tax capacity. 2016 BUDGET 158 CITY OF HOPKINS Tax Classification Rate – Rates at which estimated market values are converted into the property tax base. The classification rates are assigned to properties depending on their type. Tax Increment Financing – Financing tool originally intended to combat severe blight in areas which would not be redeveloped “but for” the availability of government subsidies derived from locally generated property tax revenues. Tax Increments – The value of local taxes collected on a redeveloped or developed property, above the base year taxes. TIF – An abbreviation for Tax Increment Financing. TOD – Transit Orientated Development. A term used to describe development surrounding Light Rail Transit. Transfers – Funds transferred between City funds. Truth-in-Taxation – Procedures adopted by the 1998 Minnesota Legislature intended to improve accountability in the adoption of the budget and property tax levy of local governments. These procedures are revised annually. Truth-in-Taxation Public Hearing – Statutory requirement for most local governments to hold public hearings on their proposed budgets and property tax levies. Water Sales – Revenue earned from the sale of water to customers of the utility. Working Capital – Current assets minus current liabilities. This measure is used as a gauge in determining appropriate fund balances. 2016 BUDGET 159