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2012 City of Hopkins-MN Budget City of Hopkins, Minnesota Annual Budget January 1 - December 31, 2012 Partnering with the community to enhance the quality of life City of Hopkins 1010 First St S Hopkins, MN 55343 952-935-8474 CITY OF HOPKINS BUDGET FISCAL YEAR BEGINNING JANUARY 1, 2012 City Council Term Expires Mayor Eugene Maxwell .................................................................................. December 31, 2013 Councilmember Molly Cummings ................................................................ December 31, 2015 Councilmember Jason Gadd .......................................................................... December 31, 2015 Councilmember Kristi Halverson ................................................................. December 31, 2013 Councilmember Cheryl Youakim ................................................................. December 31, 2013 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 .................................................................................. 1 Distinguished Budget Presentation Award ................................................................... 5 Organization Chart ....................................................................................................... 6 Mission Statement ........................................................................................................ 7 Community Profile ........................................................................................................ 8 Organization Structure ................................................................................................ 11 Organization Goals ..................................................................................................... 11 Financial Management and Policies ........................................................................... 15 Budget Calendar ......................................................................................................... 18 Budget Planning Process ........................................................................................... 20 Fund Structure ............................................................................................................ 21 Budget Overview Authorized and Approved Staffing Levels .................................................................. 24 2012 Summary Budget Information by Major and Non-Major Funds ......................... 26 2012 Budget Summary – All Funds ............................................................................ 27 2012 Revenue Summary – All Funds ......................................................................... 29 2012 Appropriation Summary – All Funds .................................................................. 34 Property Tax Service Costs ........................................................................................ 37 Fund Balance ............................................................................................................. 42 Debt Overview ............................................................................................................ 45 Capital Improvements Overview ................................................................................. 49 General Fund Budget Projection ................................................................................ 54 General Fund ................................................................................................................. 58 Special Revenue Funds ......................................................................................... 107 Internal Service Fund ................................................................................................. 140 Enterprise Funds ........................................................................................................ 142 General Debt Service Funds ...................................................................................... 154 Glossary ..................................................................................................................... 155 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 2012 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 2012 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 2012 tax levy. The final result is an adopted 2012 budget totaling $21,669,063 of which $10,556,525 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 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. 2012 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 Partnering with the Community to Enhance the Quality of Life Inspire Educate Involve Communicate 1 CITY OF HOPKINS HOPKINS IN 2011 In the year 2011, the nation’s economy experienced minimal growth. The governmental environment was to maintain staff and minimize budget increases. The city continued to provide all core services through 2011. 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 2011, the City’s tax base continued to grow, however at a minimal level. Redevelopment of properties in Hopkins helped to increase our tax base. However the City's total tax capacity values fell as market values on property declined. In 2011 the overall taxable market value declined by 7%. Despite the decrease in value the levy has increased an average of 3.9% per year over the last five years. The City’s general fund expenditures have increased an average of 3% 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 108-110. 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 expand 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, expanded their corporate campus into Hopkins with the addition of an estimated 800,000 square feet of office space in three buildings. 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. The largest redevelopment project in the city’s history came to fruition in 2007. The City had been working for several years to redevelop the Red Owl or North Annex site east of Highway 169 on Excelsior Boulevard in Hopkins. It is a 27-acre parcel that housed several operations for Super Valu over the past decades. Cargill, an international provider of food, agricultural and risk management products and services with headquarters in neighboring Minnetonka, now occupies the entire site for a second corporate office campus. This $130 million project, which began in 2007 and was completed in 2010, not only built approximately 800,000 square feet of Class A office space to Hopkins, but also brought over 3,300 new jobs to the City. In addition to this large office development, 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. 2012 BUDGET 2 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 2012 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 issues 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 were re-imposed in 2008 as a tool to hold down local government spending remained in place for 2011 and were once again removed for 2012. State Aids – In 2002 the state shifted a portion of its aids from local governments to school districts, allowing local governments to levy back the loss. In 2003 the state unallotted a portion of local government aids without the ability to raise taxes. In 2004 cities were given the authority to levy back 60% of lost local government aid. In December 2008 the State of MN reduced December state aids payments in response to the state budget deficit. For 2009, 2010 and 2011 the state aids were unallotted in their entirety and in 2012 the program was eliminated. As a result of the unallotment of state aids the City of Hopkins no longer relies on general state aids as a revenue source. Real Estate Values – Overall real estate values in this community experienced a decrease in estimated market value of 3.3% for 2011. This resulted in a decrease in the City’s tax capacity of 5.24%. Overall, budgeted expenditures will decrease by 1.0% in 2012 due in large part to bond refunding payments in 2011. We projected a 1.26% change for 2013 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 continue to work on budget solutions in light of decreases in funding sources. This planning assists in minimizing the impacts of potential tax freezes, additional state aid losses and reduced potential redevelopment activity. 2012 BUDGET 3 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 2012 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 went from 32% in 2001 to 57% in 2004 due to a loss of almost all local government aid in combination with levy increases to pay for badly needed upgrades to City facilities. The rate was reduced to 49% in 2005 largely due to the decertification of three tax increment districts and has been reduced each year thereafter due to growth of the tax base and service efficiencies throughout city government reaching a low of 45.4% in 2008 before rising again in 2010 and 2011 due to declining market values. The 2012 city tax rate is 58.624%. The adopted General Fund budget has a 1.66% expenditure increase for a total General Fund Budget of $10,556,525. The total tax levy increase for 2012 is 1.11%. The levy includes funds designated for general fund operations, capital improvements and debt service payments. The monthly city tax cost for a median valued home of $225,000 is about $111 or approximately $1,334 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 2010-12 goals and strategic plan are included in the budget document on pages 12-14. Sincerely, CITY OF HOPKINS Michael J. Mornson City Manager 2012 BUDGET 4 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, 2011. 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. 2012 BUDGET 5 CITY OF HOPKINS 2012 BUDGET 6 CITY OF HOPKINS MISSION STATEMENT Together, all of city government pledges to: Continually enhance partnerships with citizens. Inspire citizen leadership Educate and involve residents Communicate openly and effectively Be responsive Be fiscally responsible As a City Council we pledge to: Continually enhance partnerships with staff Lead in the creation of a community-wide vision Setolic py As a staff, we pledge to: Be fiscally responsible Continually enhance partnerships with the City Council Develop and implement long-term plans Provide quality customer service that is: Responsive to the needs of the community o Innovative o Accessible. o 2012 BUDGET 7 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 78 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. 2012 BUDGET 8 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 17,000 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 Summertime in Hopkins at the Clock Tower Plaza 2012 BUDGET 9 CITY OF HOPKINS CITY STATISTICS: Founded1852School Enrollment8,934 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 Family2,635Elections: Multiple Family4,879 Registered Voters - last general election9,691 Duplexes534 Number of votes cast last general election961 Townhouses831 Percentage of registered voters voting10% Population by AgeCity Bond Rating 0 to 194,011 Stand & Poor'sAA 20 to 6411,356 Moody'sA- Over 652,224 Miles of Streets and Alleys: Income by Household Trunk Highways3.57 Less than $25,0001764 County5.32 $25,000 - $50,0002782 City Streets47.5 $50,000 - $75,0002491 Alleys9.52 $75,000 - $100,0001058 $100,000 - $150,000988Miles of Sewers: $150,000 - $200,000265 Storm Sewers21.4 $200,000 or more137 Sanitary Sewers45.46 Median Household Income$46,828Miles of Watermains52.6 Per Capita Personal Income$29,400 Civil Defense Warning Sirens3 Unemployment Rate5.1% Fire Protection: Population Composition Number of Stations1 White66.64% Number of FT Employees1 African American13.21% Volunteer Firefighters36 Asian8.43% Hispanic or Latino7.90%Police Protection: Two or More Races3.01% Number of Stations1 Native American0.52% Number of Employees41 Other Races0.26% Pacific Islander0.03%Parks City Parks16 Playgrounds11 Total Property Values$1.526 billion Skating Rinks7 2012 BUDGET 10 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. ORGANIZATION 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 bi-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 short-term goals for the City and some strategies to implement them. 2012 BUDGET 11 CITY OF HOPKINS 2011-2012 GOALS AND OBJECTIVES Goal I – Build on the Small Town Feel of Hopkins Background: A small-town feel is a major part of the identity of Hopkins. Surveys have demonstrated that it is also one of the primary reasons people like living in Hopkins. Efforts in the future need to capitalize on and enhance this important city asset. Strategy 1- Create a More Vibrant Business Community 1. Conduct a city-wide business forum to gauge the current status and the needs of the entire Hopkins business community. a. Partner with the Hopkins Business & Civic Association (HBCA) in conducting a business survey. 2. Implement “Hopkins Artstreet” in conjunction with the city service clubs and business associations. 3. Implement a “Shop Local” campaign. 4. Explore ways to enhance the sense of place in commercial centers which include the installation of banners and directional signage. th 5. Adopt design guidelines and standards for Mainstreet from 12 Avenue to Shady Oak Road. Strategy 2- Promote and Enhance City Events 1. Continue to promote and improve city events such as Mainstreet Days and the Raspberry Festival with the cooperation of event organizers. a. Continue the presence of a “City Booth” at events 2. Promote smaller city events such as the Elks holiday tree lighting and Music in the Park. 3. Continue to develop the “Hopkins In Motion” event that promotes an active lifestyle through the city trail and sidewalk system. 4. Partner with film producers to host a premiere event for the Hopkins-filmed movie “The Convincer”. 5. Continue to develop and expand the Hopkins Arts Festival. Strategy 3- Provide Accessible and Friendly City Services 1. Better communicate and promote the customer-focused nature of city services. 2. Explore methods to better utilize the volunteer force (e.g., CERT members, police reserves) that exists in the City. Goal II – Enhance and Promote Smart Urban Design and Walkability Background: Hopkins has been recognized as a city that encourages smart urban design. This includes the ability to walk to stores and other amenities. Advancing these goals also improves the small town feel. Strategy 1- Improve Walkability and Physical Connections in the City 1. Create a new sidewalk and trail-oriented master plan to connect each residential area to a regional trail, Mainstreet, and/or an LRT station. 2012 BUDGET 12 CITY OF HOPKINS 2. Partner with other agencies and groups (e.g., Rotary Oasis) to improve and update paths, trails, and crossings in the community. 3. Explore instituting a local shuttle service. 4. Support the “Complete Streets” initiatives that have developed at the state and county levels. 5. Explore methods to improve sidewalk and trail snow removal. Strategy 2- Go Green 1. Utilize available grants to advance the organic recycling program. 2. Work with the Green Team to publicly communicate green initiatives and improvements that have saved energy and money. 3. Plan, promote, and conduct annual Earth Day events in Hopkins that support a sustainable city mission. 4. Pursue a potential “Green Step” City Designation based on a program to be designed by the League of Minnesota Cities (LMC). Strategy 3 – Healthy City Initiatives 1. Continue to promote wellness activities among city employees. 2. Continue to participate in and support the county-wide Step-to-It Challenge. 3. Support the initiatives of the Hennepin County Active Living program. 4. Participate in the Kids Corner program. 5. Participate in the Rec-Tivity program. Strategy 4 – Southwest Light Rail Transit (SWLRT) Planning and Transit-Oriented Development 1. Adopt the mixed-use zoning classification as outlined in the Comprehensive Plan that supports transit oriented development around proposed SWLRT stations. 2. Partner with Hennepin County and SWLRT cities, through the Community Works project, to maximize the benefit and reduce the conflicts of the SWLRT line. 3. Work with the City of Minnetonka and Hennepin County to develop plans and implementation strategies for the Shady Oak LRT Station and the Shady Oak road project. 4. Work with the Minnehaha Watershed District, Hennepin County, and interested stakeholders to implement and build off the recommendations of the Blake Road Small Area plan; including improving pedestrian and bicycle amenities, greening of the corridor and exposure of Minnehaha Creek, and the redevelopment of key sites. 5. Institute a policy or plan whereby all new developments are reviewed to ensure pedestrian- friendly design. Goal III – Take It to Them Background: Hopkins has a reputation for strong citizen involvement and engagement. The City needs to build upon that strength by reaching out to deliver our messages and hear from our stakeholders. The City will also strive to better educate the community on a variety of city issues, policies and programs. Strategy 1- Business Recruitment 1. Work with the Marketing Committee and “Think Hopkins” on business recruitment efforts. a. Updated business brochures 2012 BUDGET 13 CITY OF HOPKINS Strategy 2- Involve Minority Populations/Diversity 1. Utilize the Multi-Cultural Advisory Committee (MAC) to better connect with and communicate with the city’s diverse population. 2. Conduct Young American and New American Academies. 3. Create a plan to retain the immigrant outreach position and Joint Community Policing Partnership (JCPP) program in place. Strategy 3- Engage the Rental Community of Hopkins 1. Continue the “Engaging Raspberry Renters” program which focuses on community building and citizen engagement in rental populations in Hopkins. 2. Partner with the Hopkins Apartment Manager’s Association (HAMA) to advance communications and relationships with the rental community. Strategy 4- Citizen Engagement Initiatives 1. Conduct City Council and Board and Commission meetings at off-site locations of interest. 2. Explore the use of social media to engage and communicate with residents and businesses. 3. Conduct presentations with different groups throughout the community on city goals and initiatives. 4. Engage the community in the area of emergency preparedness. a. Pursue designation as a “Storm-Ready” City b. Conduct Quarterly CPR classes c. Implement Fire Safety program for seniors d. Enhancing Citizens Emergency Response Team (CERT) Hopkins Citizen’s Academy participants engage in Planning and Economic Development, fire and police 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. 2012 BUDGET 14 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 2011 CAFR will be available to the public upon completion in May 2012 and a summary of the results will be published in the official newspaper. The 2011 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, 2010. 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. 2012 BUDGET 15 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 A. The council shall have full authority over the financial affairs of the City. B. City manager shall control and direct the administration of the City's affairs. C. The manager shall prepare the budget annually and submit it to the council and be responsible for its administration after adoption. D. 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. E. The annual budget shall provide a complete financial plan for the budget year by fund. F. The council shall levy the taxes necessary to meet the requirements of the budget for the ensuing fiscal year. G. The city clerk shall be the chief purchasing agent of the City. H. 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. I. 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. 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. 2012 BUDGET 16 CITY OF HOPKINS All budgets are prepared on the 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. 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. 2012 BUDGET 17 CITY OF HOPKINS 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 2012 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 6City Council adopts preliminary levy and budget September 7Proposed 2012 budget and levy certified to Hennepin September/OctoberSpecial Revenue & Enterprise budgets presented to Council for review and approval December 6Budget public hearing December 20Final budget approval and tax levy certification December 28Final 2012 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. 2012 BUDGET 18 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 2012 BUDGET 19 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. 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. 2012 BUDGET 20 CITY OF HOPKINS 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 $801,400. 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. Special Revenue Funds This type of fund accounts for services and expenditures where revenue is restricted for a designated purpose. The City maintains sixteen Special Revenue Funds. There are fifteen 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. Real Estate Purchases and Sales Fund – revenue sources include variance fees of city property to be used to improve city infrastructure. Tax Increment Funds (7) – tax increment revenues for housing and economic redevelopment projects throughout the city. 2012 BUDGET 21 CITY OF HOPKINS E-911 Service Fee Fund – funds received from the State of Minnesota to be used exclusively for enhanced 9-1-1 service. 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 12 individual debt service funds for the various bond issues. The City has established annual financial plans for all 12 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 four 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. Permanent Improvement Revolving Fund – bonds issued to fund reconstruction and maintenance of residential streets throughout the city. 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 2012 BUDGET 22 CITY OF HOPKINS 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 2012 the City identifies the following funds as major funds which are described above. All major funds are budgeted. General Fund Municipal State Aid Capital Projects Fund Permanent Improvement Capital Projects Fund G.O. Housing Improvement Refunding Bonds of 2009B Debt Service Fund Taxable GO Refunding Bonds of 2005B Debt Service Fund Water Utility Enterprise Fund Sewer Utility Enterprise Fund Storm Sewer Utility Enterprise Fund Pavilion Ice Arena Enterprise Fund 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 2012 BUDGET 23 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 20092010201120122012 uthorized uthorized Authorized AA & Actual& Actual& ActualAuthorized Actual Administrative Services4.954.804.804.954.95 Finance4.604.604.604.604.60 Municipal Building1.451.451.451.451.45 Community Services9.959.959.959.809.80 Police40.0040.0040.0042.5039.50 Fire1.201.201.201.201.20 Public Works18.7017.2517.2518.4917.69 Skate Park0.050.050.050.050.05 Activity Center3.303.303.303.203.20 Planning & Community 1.151.351.351.351.35 Community Development0.000.000.000.850.85 General Fund Total85.3583.9583.9588.4484.64 Economic Development1.751.751.601.601.60 Para-Transit0.200.000.000.000.00 Housing Rehabilitation0.850.850.850.000.00 Parking1.001.001.000.720.72 Communications 0.100.400.250.250.25 Depot Coffee House1.001.001.501.501.50 Art Center4.054.054.554.304.30 Special Revenue Fund Total8.959.059.758.378.37 Water3.673.113.113.133.13 Sanitary Sewer4.083.443.443.463.46 Refuse4.123.403.584.093.89 Storm Sewer0.460.420.420.630.63 Pavilion/Ice Arena3.803.052.452.402.40 Housing & Redevelopment2.052.052.202.202.20 Total Proprietary Funds18.1815.4715.2015.9115.71 Total All Funds112.48108.47108.90112.72108.72 2012 BUDGET 24 CITY OF HOPKINS Operating Fund Crosswalk This matrix shows the relationship between functional units and funds. Major Funds aparoecs Debt ServiceEnterprise CitlPjt Taxable Taxable Tax Permanent Housing Increment Storm General Municipal Improvement Bonds of Rfdg Bonds Water Sewer Sewer Function FundState AidRevolving2009Bof 2005BUtilityUtilityUtilityPavilion General GovernmentXXXXXXXXX Public SafetyX Health and WelfareX Highways and StreetsX Culture and RecreationXX 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 2012 BUDGET 25 CITY OF HOPKINS Summary Budget Information – Major Funds and Non-Major Funds by Fund Type 2010201120112012Budget ActualActualBudgetBudgetDifference%age REVENUES General Fund10,031,235$ 10,362,625$ 10,299,327$ 10,556,525$ 257,198$ 2.50% Special Revenue Funds Non-major Special Revenue Funds3,592,164$ 4,052,079$ 3,262,836$ 3,729,531$ 466,695$ 14.30% Capital Project Funds Municipal State Aid Fund494,050$ 431,337$ 334,419$ 382,058$ 47,639$ 14.25% Permanent Improvement Fund3,180,979$ 871,224$ 704,851$ 3,394,881$ 2,690,030$ 381.65% Non-major Capital Project Funds84,517$ 102,918$ 114,732$ 190,691$ 75,959$ 66.21% Debt Funds Taxable Housing Bonds of 2009B407,643$ 391,130$ 384,500$ 383,300$ (1,200)$ -0.31% Taxable Tax Increment Bonds of 2005B177,944$ 173,203$ 171,000$ 170,500$ (500)$ -0.29% Non-major Debt Service Funds10,836,204$ 2,019,596$ 2,049,889$ 1,986,337$ (63,552)$ -3.10% Enterprise Funds Water Utility Enterprise Fund1,340,285$ 1,396,185$ 1,511,464$ 1,387,870$ (123,594)$ -8.18% Sewer Utility Enterprise Fund1,814,473$ 1,839,075$ 2,072,000$ 2,156,500$ 84,500$ 4.08% Storm Sewer Utility Enterprise Fund702,375$ 804,717$ 815,140$ 811,340$ (3,800)$ -0.47% Pavilion365,646$ 386,095$ 371,850$ 361,180$ (10,670)$ -2.87% Non-major Enterprise Funds886,445$ 1,006,523$ 952,370$ 975,360$ 22,990$ 2.41% EXPENDITURES General Fund9,908,880$ 10,273,163$ 10,299,327$ 10,556,525$ 257,198$ 2.50% Special Revenue Funds Non-major Special Revenue Funds3,434,759$ 3,746,983$ 3,419,192$ 3,615,006$ 195,814$ 5.73% Capital Project Funds Municipal State Aid Fund4,759$ 70,632$ -$ 250,000$ 250,000$ #DIV/0! Permanent Improvement Fund1,334,732$ 2,552,500$ 2,258,119$ 2,306,718$ 48,599$ 2.15% Non-major Capital Project Funds112,458$ 173,274$ 90,950$ 536,050$ 445,100$ 489.39% Debt Funds Taxable Housing Bonds of 2009B2,544,789$ 317,893$ 317,896$ 324,667$ 6,771$ 2.13% Taxable Tax Increment Bonds of 2005B145,608$ 151,222$ 151,090$ 146,157$ (4,933)$ -3.26% Non-major Debt Service Funds99,029,983$ 2,673,441$ 2,616,184$ 1,923,703$ (692,481)$ -26.47% Enterprise Funds Water Utility Enterprise Fund1,246,625$ 1,272,243$ 1,256,711$ 1,234,153$ (22,558)$ -1.80% Sewer Utility Enterprise Fund1,866,042$ 1,770,076$ 2,044,304$ 1,993,348$ (50,956)$ -2.49% Storm Sewer Utility Enterprise Fund434,452$ 532,690$ 425,727$ 527,521$ 101,794$ 23.91% Pavilion399,462$ 413,696$ 417,695$ 419,005$ 1,310$ 0.31% Non-major Enterprise Funds761,483$ 852,403$ 929,994$ 929,976$ (18)$ 0.00% Major Funds are in bold type 2012 BUDGET 26 CITY OF HOPKINS Summary of Budgeted Funds GENERAL FUND 2010201120112012Budget ActualActualBudgetBudgetDifference% age REVENUES Property Taxes8,498,409$ 8,613,469$ 8,630,564$ 8,889,091$ 258,527 3.00% Intergovernmental435,125 479,079 442,070 512,370 70,300 15.90% Licenses, Permits & Fines541,872 634,315 515,290 485,615 (29,675) -5.76% Interest Earnings17,570 13,675 75,000 25,000 (50,000) -66.67% Charges for Services223,826 294,920 194,200 245,150 50,950 26.24% Miscellaneous31,418 37,979 21,400 109,299 87,899 410.74% Franchise Fees283,015 289,188 290,000 290,000 - Use of Budgeted Reserves- - 130,803 - (130,803) -100.00% $ 10,362,62510,031,235$ 10,299,327$ 10,556,525$ 257,198 2.50% APPROPRIATIONS Council62,355$ 78,911$ 71,547$ 68,697$ (2,850) -3.98% Administrative Services412,808 392,850 451,670 469,132 17,462 3.87% Finance196,490 213,136 203,243 209,726 6,483 3.19% Legal126,233 140,213 135,000 135,000 - Municipal Building 259,887 275,796 294,818 296,863 2,045 0.69% Community Services905,036 934,453 927,430 941,074 13,644 1.47% Police4,309,202 4,432,532 4,484,387 4,530,032 45,645 1.02% 855,424 17,166 2.05% Fire963,389 859,115 838,258 Public Works2,037,469 2,289,066 2,174,400 2,198,677 24,277 1.12% Recreation503,534 524,920 533,192 528,864 (4,328) -0.81% Planning110,970 112,335 125,182 126,837 1,655 1.32% Community Development- - - 85,999 85,999 #DIV/0! Unallocated 21,506 19,836 60,200 110,200 50,000 83.06% $ 10,273,1639,908,880$ 10,299,327$ 10,556,525$ 257,198 2.50% 2012 BUDGET 27 CITY OF HOPKINS SPECIAL REVENUE FUNDS 2010201120112012Budget ActualActualBudgetBudgetDifference% age REVENUES Chemical Asses. Team177,479$ 120,767$ 45,000$ 45,000$ -$ Economic Development138,816 167,562 148,600 188,500 39,900 21.2% Real Estate Sales4,404 4,363 5,800 5,800 - E-911 Service Fee- 24,910 - 24,960 24,960 100.0% Parking116,484 89,736 82,000 88,500 6,500 7.3% Communication202,746 212,226 204,000 201,500 (2,500) -1.2% Depot Coffee House88,666 97,791 122,900 130,000 7,100 5.5% Art Center655,532 693,269 795,212 781,247 (13,965) -1.8% Tax Incr Financing (7 funds)2,208,037 2,641,455 1,859,324 2,264,024 404,700 17.9% $ 4,052,0793,592,164$ 3,262,836$ 3,729,531$ 466,695$ 12.5% APPROPRIATIONS Chemical Assess. Team130,073$ 110,791$ 45,000$ 45,000$ -$ Economic Development292,543 259,992 300,709 268,553 (32,156) -12.0% Real Estate Sales- - - - - #DIV/0! E-911 Service Fee- 24,860 - 24,860 24,860 100.0% Parking93,399 114,238 118,293 88,130 (30,163) -34.2% Communication184,468 213,393 226,074 210,026 (16,048) -7.6% Depot Coffee House104,664 101,172 122,867 120,175 (2,692) -2.2% Art Center736,433 812,055 794,943 779,452 (15,491) -2.0% Tax Incr Financing (7 funds)1,893,179 2,110,482 1,811,306 2,078,810 267,504 12.9% $ 3,746,9833,434,759$ 3,419,192$ 3,615,006$ 195,814$ 5.4% PROPRIETARY FUNDS 2010201120112012Budget ActualActualBudgetBudgetDifference% age REVENUES Water1,340,285$ 1,396,185$ 1,511,464$ 1,387,870$ (123,594)$ -8.2% Sanitary Sewer1,814,473 1,839,075 2,072,000 2,156,500 84,500 4.1% Refuse886,445 1,006,523 952,370 975,360 22,990 2.4% Storm Sewer802,375 804,717 815,140 811,340 (3,800) -0.5% Pavilion/Ice Arena365,646 386,095 371,850 361,180 (10,670) -2.9% $ 5,432,5955,209,224$ 5,722,824$ 5,692,250$ (30,574)$ -0.5% APPROPRIATIONS Water1,246,625$ 1,272,243$ 1,256,711$ 1,234,153$ (22,558)$ -1.8% Sanitary Sewer1,866,042 1,770,076 2,044,304 1,993,348 (50,956) -2.5% Refuse761,483 852,403 929,994 929,976 (18) 0.0% Storm Sewer434,452 532,690 425,727 527,521 101,794 23.9% Pavilion/Ice Arena399,462 413,696 417,695 419,005 1,310 0.3% $ 4,841,1084,708,064$ 5,074,431$ 5,104,003$ 29,572$ 0.6% 2012 BUDGET 28 CITY OF HOPKINS DEBT SERVICE FUNDS (all funds) 2010201120112012Budget ActualActualBudgetBudgetDifference% age REVENUES Property Taxes1,220,458$ 1,208,527$ 1,269,500$ 1,306,400$ 36,900$ 2.9% Special Fees672,785 658,437 651,000 552,000 (99,000) -15.2% Interest Earnings- 5,987 7,270 2,245 (5,025) -69.1% Proceeds from Bond Sale4,515,000 - - - - #DIV/0! Operating Transfer In3,440,113 710,977 677,619 679,492 1,873 0.3% $ 2,583,9289,848,356$ 2,605,389$ 2,540,137$ (65,252)$ -2.5% APPROPRIATIONS Bond Principal6,216,512$ 2,280,000$ 2,270,000$ 1,635,000$ (635,000)$ -28.0% Bond Interest912,928 803,093 807,295 752,479 (54,816) -6.8% Service Charges95,504 6,958 7,875 6,050 (1,825) -23.2% Transfer out5,350,427 52,514 - - - #DIV/0! $ 3,142,56512,575,371$ 3,085,170$ 2,393,529$ (691,641)$ -22.4% Total Revenues28,680,979 22,431,227 21,890,376 22,518,443 628,067 2.9% Total Appropriations30,627,074 22,003,819 21,878,120 21,669,063 (209,057) -1.0% Use of Equity or Fund Balance (427,408)1,946,095 (12,256) (849,380) (837,124) 6830.3% 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. 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 22,518,443. The largest source of revenue by category is property taxes of $12,082,152 comprising 56% 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 re- instated in 2004, were removed in 2005, re- instated in 2009 through 2011 and removed again in 2012. 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 2012 budgeted taxes increased in total by 3.5% primarily for increases in the tax increment 2012 BUDGET 29 CITY OF HOPKINS and debt levies. The tax increment levy increased as the project was fully developed and now is fully on the tax rolls. The General Fund had a small increase in the levy due to increases in expenditures that were not offset by other revenue sources. As a result of the downturn in the economy we are collecting less permit fees and grant revenues are harder to get. Intergovernmental revenues total $670,230 or 2.98% 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. Utility fees for water, sewer, refuse and storm sewer account for $5,140,000 of the City’s revenue or 22.83%. In 2007 a utility master plan was completed then revised in 2009 and 2011 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 2012 rates for water, sewer, and recycling were increased. Revenue projections are based on the Utility Master Plan as developed by the City Engineer. The increase in revenues is derived from a combination of increased consumption and increased fees. The 2007 Utility Master Plan is reviewed and revised every two years. Charges for services, other than utilities are $1,233,983 or 7.35% 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 and due to the economic downturn requests for building permits and plan reviews have decreased. While there is still potential commercial re-development we did not want to rely on that income when setting the 2012 budget and kept it in line with 2011 revenues. 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. 2012 BUDGET 30 CITY OF HOPKINS Special Assessments and Special Assessment Fees for housing projects are $552,000 or 2.45% of City revenues. Special Assessments are levied for street, sidewalk and 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 2011 two long-term special assessment rolls were completed resulting in a decrease in projected revenue for 2012. Special assessment revenue projections are based on the special assessment rolls and scheduled payments due in the budget year. Permits, licenses and fines are $509,315 or 2.26% of revenues. Permit revenues are dependent on the economy and on future development of the City. In 2009 a developer completed Phase III of a project and an additional unexpected commercial development brought in additional permit revenues for the year. Due to the economy commercial development ground to a virtual halt and building permit revenues fell significantly in 2010. The increase in 2011 resulted from a developer who was finally successful in getting financing for a housing project. This revenue was not budgeted and was not expected. The permit fee revenue projection was prepared by the City’s Building Official based on knowledge of pending and anticipated projects which are expected to remain flat for 2012. License revenue is based on the types of businesses licensed by the city and past year’s collections. Those revenues are also down as business face their own challenges, some going out of business. 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 $1.70 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 2011 will be about $490,000 or 2.18% 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. While actual franchise fees fell in 2010 due to the economy and foreclosures we saw them increase in 2011 as residents financial situations start to improved, however in light of the slow improvement in the economy we kept 2012 budget projections conservative. 2012 BUDGET 31 CITY OF HOPKINS Total 2010 actual revenues increased from 2009 bonds were sold for construction projects in 2010 and 2011. When bond sources are removed from 2010 revenues, 2011 revenues remain close to 2010 levels. The City has continued to be conservative in preparing the 2012 budget realizing the challenges our taxpayers continue to face as a result of the economy. The City has not had to lay off any staff; however we do have vacancies that have not been filled as a result of retirements. Like other cities we continue to do more with less and work to maximize the budget dollars we do have to work with. 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 stimulus dollars for a couple of small city projects. Other sources of intergovernmental revenue 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. 2012 BUDGET 32 CITY OF HOPKINS Shown below is a chart showing the relationship between all revenue sources. 2012 BUDGET 33 CITY OF HOPKINS APPROPRIATION SUMMARY Appropriations for all funds total $21,669,063. This is less than anticipated revenues for 2012 and results in an excess of $849,380 overall. Of that amount $185,000 is from tax increment funds a portion of which will be pooled with other tax increment districts for additional qualifying improvements; $588,247 is from enterprise funds as we work to rebuild fund equity and bring the water and sewer fund to a more stable financial position; $146,608 is from debt revenue exceeding principal and interest payments some of which don’t begin until 2013. The largest source of appropriations by category is employee salaries and benefits at $10,338,913. Employee salary and benefits make up 49.15% of the City’s annual appropriation and represent a 1.18% increase from 2011. In 2012, salaries are being held to a 0% increase with union contracts settling for a 3-year contract with increases in 2013 and 2014. Other factors impacting salaries and benefits are health care insurance costs and state mandated pension contributions. Materials, supplies and services make up 27.53% of appropriations at 5,790,094. This amount represents a 5.34%% decrease over the 2011 budget. The decrease is due to departments negotiating favorable maintenance contracts, lower energy expenses due to energy efficient upgrades done in the various city buildings and reduced use of professional services. 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 2012, the appropriated amount is $5,000 or 0.26% of total appropriations. Anticipated capital costs are for improvements at the Depot Coffee House, a Youth Center operated by the City. 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 2012 decreased 9.3% as refunding bonds sold in late 2010 were called in 2011 and in 2012 debt payments returned to regular scheduled payments. Total appropriations for 2012 are $4,192,276 or 19.93% and include debt paid within the Enterprise Funds. Another 3.37% of appropriations are for depreciation of property and equipment. The six largest programs of the City in 2012 account for 88% of the appropriations budget and are as follows: Public Safety 5.5 million Utilities (water, sewer, storm sewer, refuse) 4.7 million General Government 2.4 million Debt Service 2.4 million Public Works 2.3 million Recreation 1.8 million 2012 BUDGET 34 CITY OF HOPKINS 2012 BUDGET 35 CITY OF HOPKINS REVENUES - ALL FUNDS COMPARATIVE ANALYSIS BY SOURCE ADOPTED 2009201020112012 SOURCEACTUALACTUALACTUALBUDGET Current Revenues PROPERTY TAX$9,280,751$9,795,317$9,944,750$10,370,491 TAX INCREMENT1,586,7722,147,0072,240,1782,245,300 SPECIAL ASSESSMENTS675,770672,785658,437552,000 LICENSE, PERMITS & FINES770,995565,347660,579509,315 INTERGOVERNMENTAL REVENUE762,240683,376721,687670,230 CHARGES FOR CURRENT SERVICES1,527,4611,477,4291,227,2341,233,983 INTEREST ON INVESTMENTS140,35667,65148,15648,345 UTILITY SERVICE CHARGES4,560,5784,720,9424,781,9385,140,000 FRANCHISE FEES487,312483,754499,238490,000 OTHER REVENUES268,080299,497698,878421,367 TOTAL CURRENT REVENUES$20,060,315$20,913,105$21,481,075$21,681,031 Other Financing Sources1,038,8758,114,632925,046 837,412 TOTAL REVENUES$21,099,190$29,027,737$22,406,121$22,518,443 Less: Inter-Fund Transfers1,038,8753,599,632925,046837,412 TOTAL REVENUES$20,060,315$25,428,105$21,481,075$21,681,031 EXPENDITURES/EXPENSES - ALL FUNDS COMPARATIVE ANALYSIS BY OBJECTIVE ADOPTED 2009201020112012 OBJECTIVEACTUALACTUALACTUALBUDGET Current Expenditures/Expenses SALARIES AND EMPLOYEE BENEFITS$9,841,235$9,956,828$10,082,550$10,338,913 MATERIALS, SUPPLIES AND SERVICES5,521,4036,537,0318,257,1975,790,094 CAPITAL OUTLAY108,439241,33558,5195,000 DEPRECIATION1,143,296686,501707,138709,000 DEBT REPAYMENT4,073,1023,692,0994,621,6574,192,276 TOTAL$20,687,475$21,113,794$23,727,061$21,035,283 Other Financing Uses 833,7567,807,437875,897633,780 TOTAL EXPENDITURES$21,521,231$28,921,231$24,602,958$21,669,063 2012 BUDGET 36 CITY OF HOPKINS PROPERTY TAXES Tax Capacity & Market Values The growth in tax capacity from 2002 thru 2010 reflects overall increased market value of property in Hopkins from redevelopment. In 2002 the affects of the changes implemented by the state on property classifications is evident. Although market values in Hopkins rose by 10% in 2002, the tax capacity dropped over $5 million dollars. To the right depicts tax capacity value over the last twelve 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 two 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 Hopkins has a mixed use residential/commercial development that broke ground in late 2011. This project will add approximately $6 million in market value when completed in 2012. 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 do expect them to increase in the future. Other property classes primarily commercial have increased which has mitigated the overall decrease in market values . 2012 BUDGET 37 CITY OF HOPKINS Changes in property values The chart at the left shows the percentage of homeowners that saw value changes in their property. Many saw decreases in their property values, 59.75%, however a significant percentage, 40.43% had between .1% - 19.9% increases in values, a hopeful sign that some home values may once again be 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 2012 is valued at $225,000. Total taxes of $3,360 on an average home in Hopkins helps pay for all levels of governmental services. City Property Tax Levy Shown to the left is the annual cost CITY of taxes on a home valued at $225,000 assuming the value of the home did not change. Starting with 2005 city taxes fell as we experiences commercial growth and following several years of minimal change city taxes have started to increase. The large 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. This residential property owner in Hopkins will experience an $84 increase in City property taxes in 2011. The total City taxes on a $225,000 home would be $1,334 in 2012 as compared to $1,252 in 2011. 2012 BUDGET 38 CITY OF HOPKINS Shown below is a summary of annual costs an average homeowner would expect to pay living in Hopkins. Water and sewer rates were increased for 2012 as provided by the Utility Master Plan. As stated earlier in this document this will provide needed funds for necessary infrastructure improvements. Refuse rates are analyzed each year and if necessary are only increased every couple of years and were not increased for 2012. The storm sewer rate is not expected to increase in the near future. Hopkins rd utility rates continue to rank in the lower 1/3 of the Minneapolis/St. Paul metropolitan area. Monthly Service Cost City of Hopkins Average Annual Service Costs 2012 Annual Property Tax Cost (average home) on an Average Home. Council$8.78 Administrative Services$59.96 20122011 Finance$25.07 City Property Taxes$1,333.92$1,248.00 Legal$2.56 Water - Consumption Municipal Building$37.62 7,500 gallons a month Community Services$77.76 $176.40 $1.96/1,000 gallons Police$523.20 $171.00 $1.90/1,000 gallons Fire$90.99 Public Works$262.98 Sewer - Consumption Recreation$26.21 7,500 gallons a month Activity Center$33.33 $337.44 $3.75/1,000 gallons Planning and Community Development$15.89 $324.00 $3.60/1,000 gallons Unallocated $2.58 Refuse Collection$238.20$238.20 Debt$40.96 Debt on Facility Project$126.01 Storm Sewer$60.00$60.00 Annual Cost for City Services$1,333.92 Franchise Fees$40.80$24.00 Total$2,186.76$2,065.20 City Levy – By Purpose 20122011 General Fund$8,784,091$8,539,0642.87%increase Debt$1,306,400$1,241,0005.27%increase PERA$35,500$35,5000.00%no change MVHC Unallotment$0$222,850-100.00%decrease Capital$125,000$100,00025.00%increase Total Levy$10,250,991$10,138,4141.11%increase In 2012 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 2012 levy limits were again removed by the state legislature allowing for more flexibility by the taxing jurisdictions. The Market Value Homestead Credit (MVHC) program was eliminated removing the need for this levy. City tax capacity rates of 58.624% result in payments of $1,334 annually or approximately $111 per month for the average homeowner. Net property tax costs by program, was developed by crediting related revenues against appropriate programs expenditures. 2012 BUDGET 39 CITY OF HOPKINS Net annual property tax costs for program budgets Streets & Park Facilities Debt Police Protection Maintenance $126.01 $523.2 $262.98 Fire Protection Council & Other Debt $90.99 Administration$40.96 $71.32 Assessing, Inspections Building MaintenanceActivity Center & $37.62$33.33 City Clerk $77.76 Legal Planning & Finance Recreation $2.56 Zoning $25.07 $26.21 $15.89 The City’s overall net levy increase is 1.11%. The general fund gross levy increased in 2012 by 2.87% or $245,027. The debt levy decreased in 2012 by $65,000 as debt requirement changed. The levy for unallotted MVHC decreased by 100% as the program was eliminated and the levy no longer needed. Finally the capital levy was increased by $25,000 to provide for facility capital needs. The total levy increase for 2012 is $112,577. 2012 BUDGET 40 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 9.54% Super ValuGrocery Warehouses$1,861,7839.54% of total tax capacity and the American Fund US Invest LPReal Estate$1,675,4168.59% next largest taxpayer Excelsior Crossings Invst LLCAgriculture$1,574,4888.07% comprises 8.59%. The city Cargill, Inc.Agriculture$686,8733.52% has a diverse and stable tax Duke Realty LTD PartnershipOffice/Warehouses420,9112.16% base, which provides the Hopkins Real Estate LLCCar Dealership383,5571.97% city with assurance that tax City Center Ventures LLCFitness Center356,3661.83% revenues will remain stable Hines Reit Mpls Ind, LLCManagement Services351,1941.80% against the loss of a Southwest Real Estate, Inc.Apartments341,6491.75% significant taxpayer. Oak Ridge Country ClubGolf Course322,0511.65% Ramsgate ApartmentsApartments318,7861.63% EDCO ProductsManufactoring266,6391.37% Continental Decatur, LLCApartments258,8391.33% Venturian Place, LLCCommercial Condo's254,7191.31% The Luther Company, LLCCar Dealership241,6011.24% City's Total Tax Capacity$19,512,121 PRINCIPAL EMPLOYERS Percentage of Total TaxpayerType of BusinessEmployeesEmployment CargillFood, agricultural, financial and industrial2,35017.279% SuperValuGrocery distributor1,2659.301% GE Water & Process TechnologiesWater systems solutions5504.044% ThermotechAutomotive Products2351.728% ISD 270 HopkinsSchool2151.581% Augustana Chapel View Care CenterHealth Care Services2101.544% Oak Ridge Country ClubCounty/Golf Club2041.500% Rudy Luther's Hopkins HondaCar dealership2001.471% Hopkins Care CenterHealth Care Services1250.919% City of HopkinsMunicipal Government1100.809% Major employers in Hopkins include Cargill an international producer and marketer of food, agricultural, financial and industrial products, followed by Super Valu, a grocery distribution warehouse facility and GE Water & Process Technologies. While these three organizations employ almost 31% of the workforce in Hopkins the City has a diverse group of employers who have had a long-term presence in the City. Changes in Fund Balance Major Funds Fund balance is defined as the difference between a fund’s assets and liabilities. Adequate fund balance is necessary to have funds for emergency or unexpected events, to enhance the City’s financial position 2012 BUDGET 41 CITY OF HOPKINS and bond ratings, to provide cash for operations prior to receipt of tax revenues and to maximize investment earnings. Working capital balance, defined as current assets less current liabilities is carefully monitored to ensure enough financial flexibility to meet both short and long-term goals for each fund. Estimated YE 2011 Fund Balance/% Change$ ChangeReason for WorkingEndingin Fundin FundGreater than Fund NameCapital*RevenuesExpendituresBalanceBalanceBalance10% Variance Major Funds General Fund$4,340,091$10,556,525$10,556,525$4,340,0910.00%$0 Municipal State 1,274,191382,058250,0001,406,24910.36%132,058One small MSA project Aid Capital is scheduled for 2012, Project Fundhowever our state allotment will be received based on past projects that were not fully funded. Permanent 133,1553,394,8812,306,7181,221,318817.22%1,088,163Bonds are scheduled to Improvement be sold in 2012 for the Revolving Fund2012 and 2013 projects. Housing Improv 748,415383,300324,667807,0487.83%58,633 Refunding Bonds of 2009B Debt Service Fund Taxable GO 382,704170,500146,157407,0476.36%24,343 Refunding Bonds of 2005B Debt Service Fund Water Enterprise (218,363)1,387,8701,185,053(15,546)-92.88%202,817No significant capital Fund *projects are planned for 2012 helping to rebuild negative working cash. Sewer Enterprise 184,8812,156,5001,946,348395,033113.67%210,152No significant capital Fund *projects are planned for 2012 allowing working capital to build for future scheduled projects. Storm Sewer 530,548811,340428,621913,26772.14%382,719No significant capital Enterprise Fund *projects are planned for 2012. However several large projects are in the CIP for the next 3-5 years. Pavilion (12,394)361,180351,005(2,219)-82.10%10,175No capital items are Enterprise Fund *planned for 2012 and expenditures were reduced to work towards eliminating negative working capital. The general fund added approximately $86,800 to its fund balance in 2011. This was accomplished by all departments managing their budgets conservatively, reducing or eliminating expenses when appropriate and eliminating non-essential capital items. The 2012 budget was adopted with 0% wage increases and 2012 BUDGET 42 CITY OF HOPKINS 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 42.1% 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 Municipal State Aid (MSA) Capital Projects Fund has a significant receivable due from the State of Minnesota for the Excelsior Boulevard project. These funds are released as the City is awarded its allotment each year. In addition other street projects that are MSA eligible will be in the queue for funding once the receivable is paid down by the State. In 2012 $360,705 was added to the fund balance. Projects scheduled for 2012 include one small project totaling $250,000. The Permanent Improvement Revolving Fund will increase its fund balance in 2012 as bonds are sold for the 2012 and 2013 street projects. These funds will be expended by the end of 2013. Hopkins has a policy of selling improvement bonds approximately every two years for two years’ worth of projects to minimize bond issuance costs. The Housing Improvement Refunding Bonds of 2009B meets its fund balance requirements as set forth in the debt covenant. The Taxable Tax Increment Bonds of 2005B meets its fund balance requirements as set forth in the debt covenant. The Water Enterprise Fund’s working capital dipped into the negative in 2011 as the water meter replacement plan was accelerated. We have now replaced 2/3rds of the meters in three years when the rd original plan called for five. We expect that the remaining 1/3 of the meters will be replaced in 2012. The increases implemented pursuant to the Utility Master Plan that was approved in 2007 continue to 2012 with a $0.06 increase in rates. The plan calls for annual incremental increases in water rates to adequately provide for operations, debt retirement and capital projects. The plan was reviewed in 2009 and in 2011 with slight modifications made in 2011. It is next scheduled for review in 2013 at which time the plan may again be amended. The Sewer Enterprise Fund’s working capital continues to improve as the capital demands on the fund have been reduced for a couple of years. The increases implemented pursuant to the Utility Master Plan that was approved in 2007 continue to 2012 with a $0.15 increase in rates. The plan calls for annual incremental increases in sewer rates to adequately provide for operations, and capital projects, however fees paid to the Metropolitan Council for wastewater treatment costs have risen faster than projected. Staff periodically reviews and updates the Utility Master Plan to ensure the goals of the plan are being met The plan was reviewed in 2009 and in 2011 with slight modifications made in 2011. It is next scheduled for review in 2013 at which time the plan may again be amended The Storm Sewer Enterprise Fund’s working capital increased in 2012 as a result of smaller capital projects and the final rate increase implemented pursuant to the Utility Master Plan that was approved in 2007. The system continues to set funds aside for upcoming capital projects that are scheduled in the Utility Master Plan. The Pavilion Ice Arena’s expenditures continue to exceed revenues; however staff is actively marketing the facility to various groups to increase off season rental income. These efforts are paying off as rental bookings are up for 2011 and the facility is seeing repeat bookings. The facility has debt from facility enhancements requested by the Hockey Associations that is being paid back pursuant to an amortization schedule; however these enhancements used a significant portion of the funds working capital. Projections show the working capital in the black by 2015. 2012 BUDGET 43 CITY OF HOPKINS Non-Major Funds Estimated YE 2011 Fund Balance/% Change$ ChangeReason for WorkingEndingin Fundin FundGreater than Fund NameCapital*RevenuesExpendituresBalanceBalanceBalance10% Variance Non-Major Funds Special Revenue Funds Chemical (45,445)45,00045,000(45,445)0.00%0 Assessment Economic 2,572,335188,500268,5532,492,282-3.11%(80,053) Development Special Revenue Fund Parking170,97588,50088,130171,3450.22%370 Communicatio400,586201,500210,026392,060-2.13%(8,526) ns Depot Coffee 13,941130,000120,17523,76670.48%9,825Expenditures were Housereduced to rebuild fund balance due to reduction of grant income Art Center(1,091,813)781,247779,452(1,090,018)0.16%1,795 Tax Increment 889,0272,264,0242,078,8101,074,24120.83%185,214Current collections are Funds being accumulated to be (aggregate)used for future tax increment project costs throughout all districts. Debt Service 3,024,0431,986,3371,922,7053,087,6752.10%63,632 Funds (aggregate) Enterprise Refuse *440,964975,360873,976542,34822.99%101,384Refuse rates were adjusted to plan for future equipment needs. 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 2011 a portion of those unreimbursed costs were absorbed by the General Fund Fire Department budget and we continue working to resolve the remaining shortfall. We expect this issue to be cleared up in 2012. The Economic Development fund continues to have expenditures that exceed revenues and each year uses a portion of its fund balance. 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 Parking fund fund balance will remain stable in 2012 as no large maintenance projects are planned. Parking permit fees were increased in 2012 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. The city has a cooperative agreement with the City of Golden Valley to share the web and newsletter editor position which is funded with cable TV franchise fees. The council and staff continue to work hard at 2012 BUDGET 44 CITY OF HOPKINS relieving the Art Center promotional activity expense burden from the communication fund. Currently this fund exceeds its fund balance goals however a small amount will be used to meet current expenditures. The Depot Coffee House is an alcohol free environment for area teens that provides specific programming of interest to them. The Depot Coffee House Youth Project has been extremely successful in obtaining private foundation grants to continue its mission however grants are becoming more difficult to obtain. After outsourcing the coffee shop portion of the Youth Center it was brought back under the Youth Project’s management. The teens are excited to be involved in all aspects of the 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, In addition both Hopkins and Minnetonka committed financing to ensure the continued success of the Depot Coffee House. 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 Economic Development and Communication funds. In 2011 due to staff vacancy and a retirement the City evaluated the management structure of the Arts Center and hired a Director with specific arts background and management experience. 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 Arts Center is working to retire its debt but is several years away from its targeted fund balance. Tax Increment fund balance may be used to retire tax increment debt early. Currently all 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 2011 and recycling rates were increased for 2012. Debt Overview The City of Hopkins has been conservative in its debt issuance practices and holds Standard and Poor’s’ AA and Moody’s A+ G.O. debt ratings. The city was very pleased to receive a bond rating upgrade by Standard and Poor’s from AA- to AA in conjunction with the December 2009 bond sale which was reaffirmed in November 2010. 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, 2011, was $25,680,000. After reducing the outstanding debt by the amount supported by utilities, and special fees, the per capita debt at December 31, 2011 is $463. The total debt principal and interest due in 2012 is $2,971,443, of which $1,306,400 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 $1,699,251 in 2022 and to $574,278 in 2024 before the final issue matures in 2026. The ability to retire 85% 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 2012-2013 street improvements in 2012. The actual amount to be bonded has not yet been finalized but will likely be around $2,000,000 and will include as revenue sources a tax levy and special assessments. 2012 BUDGET 45 CITY OF HOPKINS The graph below illustrates the retirement of debt (principal and interest) in years 2012 through 2026. Minnesota State law limits the amount of G.O. debt for any municipality to 3% of market value, estimated to be $1,526,916,700 in 2011. This limitation provides reasonable assurance of the municipality’s ability to pay. The legal debt limit for Hopkins is $45,807,501; projected debt subject to the legal limit for Hopkins is $10,190,000 or 22% of total debt limit allowed. OUTSTANDING DEBT AND PURPOSE 2010AGO Improvement BondsStreet Improvements2,710,000$ 2010BGO Refunding BondsCounty Road 3 Improvements Phase II (2002B), Street Improvements (2002A), Sewer (2003A)2,680,000$ 2009AGO Revenue BondsWater & Sewer Improvements and Refunding of 2000 Water and 1999C Storm Sewer Bonds2,930,000$ 2009BGO Taxable Housing Improvement Refunding 1999A & 1999B Housing RefundingImprovement Bonds2,645,000$ 2007AGO Capital Improvement Plan BondsFire Station & Public Works Storage Facility $ 8,005,000 2007BGO Improvement BondsStreet Improvements1,455,000$ 2005AGO Tax Increment RefundingOaks of Mainstreet Redevelopment490,000$ 2005AGO Tax Increment RefundingCounty Road 3 Improvements Phase I-$ 2005BTaxable General ObligationWestbrooke Patio Homes Improvements865,000$ 2003Public Facilities Lease Revenue BondsPolice Station Expansion and Remodeling $ 2,185,000 2002AImprovement Revolving BondsStreet Improvements1,715,000$ $25,680,000 Total Outstanding Debt December 31, 2011 2012 BUDGET 46 CITY OF HOPKINS SCHEDULE OF DEBT SERVICE REQUIREMENTS – ALL FUNDS TotalSpecial Assmnt BondsTax Increment BondsRevenue Bonds PrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterest 20122,085,000 886,433 200,000 125,365 440,000 116,840 450,000 100,598 20132,170,000 790,805 210,000 83,201 455,000 107,334 470,000 92,285 20142,155,000 691,687 240,000 42,296 365,000 97,228 475,000 82,573 20152,215,000 621,843 240,000 37,040 380,000 86,628 485,000 70,460 20162,000,000 549,949 260,000 31,103 390,000 75,221 185,000 61,548 20171,945,000 479,239 150,000 26,603 400,000 63,028 185,000 56,673 20182,010,000 405,526 150,000 23,790 415,000 49,921 190,000 51,248 20191,700,000 335,984 160,000 20,490 185,000 41,046 200,000 45,416 20201,760,000 270,817 160,000 16,730 190,000 36,638 205,000 38,905 20211,840,000 200,871 170,000 12,518 200,000 31,660 215,000 31,665 20221,565,000 134,251 175,000 7,815 180,000 26,490 215,000 24,085 20231,640,000 71,731 185,000 2,683 190,000 21,215 230,000 16,133 2024545,000 29,278 190,000 15,610 145,000 9,100 2025355,000 12,760 200,000 9,660 155,000 3,100 2026205,000 3,280 205,000 3,280 $ 5,484,45224,190,000$ 2,300,000$ 429,633$ 4,385,000$ 781,798$ 3,805,000$ 683,786$ Housing Fee BondsG.O Bonds RevenueG.O Bonds PrincipalInterestPrincipalInterestPrincipalInterest 2012335,000 133,325 135,000 82,281 525,000 328,024 2013345,000 123,650 140,000 77,811 550,000 306,524 2014360,000 112,413 145,000 73,054 570,000 284,124 2015370,000 99,565 145,000 68,070 595,000 260,080 2016390,000 85,075 155,000 62,742 620,000 234,261 2017405,000 68,604 160,000 56,953 645,000 207,380 2018415,000 50,461 165,000 50,776 675,000 179,330 2019285,000 34,720 170,000 44,200 700,000 150,111 2020295,000 21,665 180,000 37,155 730,000 119,724 2021310,000 7,440 185,000 29,717 760,000 87,871 2022195,000 21,830 800,000 54,031 2023200,000 13,435 835,000 18,266 2024210,000 4,568 2025 2025 $ 736,9183,510,000$ 2,185,000$ 622,592$ 8,005,000$ 2,229,726$ 2012 BUDGET 47 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 and storm sewer debt. Debt Service Fund debt includes, tax increment debt, special assessment debt, and capital projects debt. All enterprise fund debt is in major funds. SCHEDULE OF DEBT SERVICE REQUIREMENTS – MAJOR AND NON-MAJOR FUNDS Major Enterprise Fund Bonds Total - All FundsWater Fund BondsSewer Fund BondsStorm Sewer BondsTotal Enterprise Funds PrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterest 20122,085,000 886,433 210,000 41,125 60,000 32,650 180,000 26,823 450,000 100,598 20132,170,000 790,805 220,000 33,425 60,000 31,450 190,000 27,410 470,000 92,285 20142,155,000 691,687 225,000 31,812 60,000 30,100 190,000 20,661 475,000 82,573 20152,215,000 621,843 230,000 25,500 60,000 28,450 195,000 16,510 485,000 70,460 20162,000,000 549,949 50,000 21,350 65,000 26,575 70,000 13,623 185,000 61,548 20171,945,000 479,239 50,000 19,725 65,000 24,462 70,000 12,486 185,000 56,673 20182,010,000 405,526 55,000 17,887 65,000 22,188 70,000 11,173 190,000 51,248 20191,700,000 335,984 55,000 15,963 70,000 19,825 75,000 9,628 200,000 45,416 20201,760,000 270,817 55,000 13,900 70,000 17,200 80,000 7,805 205,000 38,905 20211,840,000 200,871 60,000 11,600 75,000 14,300 80,000 5,765 215,000 31,665 20221,565,000 134,251 60,000 9,200 75,000 11,300 80,000 3,585 215,000 24,085 20231,640,000 71,731 65,000 6,700 80,000 8,200 85,000 1,233 230,000 16,133 2024545,000 29,278 65,000 4,100 80,000 5,000 - - 145,000 9,100 2025355,000 12,760 70,000 1,400 85,000 1,700 - - 155,000 3,100 2026205,000 3,280 - - - - - - - - $ 5,484,45224,190,000$ 1,470,000$ 253,687$ 970,000$ 273,400$ 1,365,000$ 156,699$ 3,805,000$ 683,786$ Major FundNon-Major Funds - Aggregate Hsg Imprv Rfdg Bds of 2009BTaxable Tax Incr Bonds 2005BDebt Service Fund BondsTotal Debt Service Fund PrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterest 2012230,000 355,098 105,000 40,258 1,300,000 390,480 1,635,000 785,835 2013235,000 88,473 110,000 35,178 1,355,000 574,870 1,700,000 698,520 2014245,000 82,636 115,000 29,776 1,320,000 496,702 1,680,000 609,114 2015250,000 75,518 120,000 24,048 1,360,000 451,818 1,730,000 551,383 2016260,000 67,218 130,000 17,858 1,425,000 403,327 1,815,000 488,402 2017265,000 57,566 140,000 11,038 1,355,000 353,963 1,760,000 422,567 2018270,000 46,728 145,000 3,734 1,405,000 303,817 1,820,000 354,279 2019285,000 34,720 - - 1,215,000 255,847 1,500,000 290,567 2020295,000 21,665 - - 1,260,000 210,247 1,555,000 231,912 2021310,000 7,440 - - 1,315,000 161,766 1,625,000 169,206 2022- - - - 1,350,000 110,166 1,350,000 110,166 2023- - - - 1,410,000 55,599 1,410,000 55,599 2024- - - - 400,000 20,178 400,000 20,178 2025- - - - 200,000 9,660 200,000 9,660 2026- - - - 205,000 3,280 205,000 3,280 $ 837,0602,645,000$ 865,000$ 161,888$ 16,875,000$ 3,801,718$ 20,385,000$ 4,800,666$ 2012 BUDGET 48 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 2016 and again in 2024. 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. 2012 BUDGET 49 CITY OF HOPKINS 2012 Capital Improvement Projects Building Improvements – Scheduled for 2012 is the replacement in the Hopkins Activity Center of the existing low pressure steam boiler with two low pressure hot water boilers; replacement of existing air conditioning rooftop units for the gymnasium with gas heat and air conditioning; replacement of existing air conditioning fan coils with new condenser units and replacement of existing steam makeup unit for the kitchen with gas fired makeup unit. Existing low pressure steam boiler is 30 years old and the supply piping for this boiler unit is 60 years old. The rooftop air conditioning units are 24 years old. The upgraded system will allow better control of HVAC systems and reduce energy costs by an estimated 20%. Existing kitchen would be modified to meet current code regulations. The Hopkins Center for the Arts built in 1997 has been replacing the original carpet over the last three years. The last area to have carpet replaced is the Stages Theater offices, ticket office, Arts Center Director’s office and Programming Director’s office. There are no operational savings that result from this project, however safety is an issue as carpet has exceeded its useful life, is significantly worn and can no longer be maintained. The City Hall Server Room will receive an upgrade to the air conditioning system. The current units in place are not designed for the type of application being used. The new unit will bring in outside air for cooling in the cooler months. The new unit would allow shutting down lower level air handler during unoccupied times. This project also includes demolition of a portion of the dividing wall between the server room and telephone room to improve the area for better control of cooling. Anticipated energy savings are estimated at 15%. Parks – Scheduled for 2012 is the replacement of Valley Park and Cottageville Park play equipment with a current life of 20-25 years. The equipment is old, outdated and safety is an issue. Installation of the new equipment will provide maintenance savings of approximately $2,000 per year. In addition three park buildings are scheduled for roof replacement due to age and increased repairs. The current roofs have exceeded their useful life and are leaking. Maintenance savings are estimated at $3,000 per year. Also scheduled for 2012 are miscellaneous improvements to play equipment and park amenities in various city parks as evaluated by the City Parks Department. Operational impacts are approximately $10-20,000 in annual maintenance costs. Pavilion Ice Arena – Scheduled for 2012 is the replacement of the arena’s bleacher infrared heating system with a new efficient system. The current system is 18 years old and no longer produces adequate heat due to deterioration of the major components. Energy savings is estimated at 10% in addition to a greater satisfaction from user groups. Staff is exploring potential rebates from the energy company which could lower the cost of the project for additional savings. The Pavilion will also be replacing the three existing water heaters that are used to heat the ice resurfacing water and replace them with a new water heating system. One of the three heaters is unusable and the remaining two have corrosion and major scaling issues. All three water heaters are original to the building built in 1990. The new energy efficient system is expected to save approximately $4,000 a year in energy costs and allow for quicker ice resurfacing during hockey games thus allowing for more efficient game time. 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 2012 the City anticipates spending approximately $1,800,000 on street improvements. Projects scheduled are detailed in the city’s CIP which is posted on the website. 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. 2012 BUDGET 50 CITY OF HOPKINS nd A landscaped buffer on 2 Avenue will be replaced in 2012. The landscaped buffer is 30+ years old, the spruce trees are dying and this right-of-way area needs landscaping. This improvement will save approximately $2,000 a year in landscape maintenance costs. th Traffic Signals – In 2012 the city will upgrade traffic signals on Mainstreet at 11 Avenue with LED lighting, countdown timers, controllers and audible signals for the visually impaired. There are no operational savings as a result of this project; however this improvement will make this corner ADA compliant. Signals at other Mainstreet intersections will also be improved with these same signals over the next five years. Utilities – Included in the CIP for 2012 is annual storm drainage maintenance in the form of concrete alley repairs, water meter replacements in individual properties, 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. In addition planned for 2012 are lift station improvements and the installation of an emergency connection with the City of Edina. This project will connect the cities of Hopkins and Edina water system to provide mutual aid in the case of an emergency. There are no operational cost savings to this project. CAPITAL IMPROVEMENT PROJECTS FOR 2012 Project Title InvestmentProject Description Hopkins Activity Center$355,000HVAC Upgrade Hopkins Art Center$15,050Carpet replacement - Stages Theater area City Hall Server Room$10,000Upgrade city hall server room air conditioning Parks - Play Equipment$65,000Valley Park play equipment replacement Parks - Play Equipment$45,000Cottageville Park - install play equipment Park Buildings$15,000Re-roof three park buildings Miscellaneous Park Improvements$10,000Improvements to various neighborhood parks Residential Street Improvements$1,800,000Central Hopkins reclamation project Citywide Concrete Alleys$135,000Alley improvements Public Works - Railroad Quiet Zone$30,000Plan and design railroad quiet zone Public Works - Signal Upgrades$250,000Upgrand signals on Mainstreet for ADA compliance Pavilion - Bleacher Heating$38,000Arena bleacher heating upgrades Pavilion - Ice Resurfacer$15,000Ice resurfacer heating system replacement Public Works - Street$30,0002nd Ave berm replacement Water Department $95,000Meter replacement Water System Maintenance$75,000Upgrades done in conjunction with residential street improvements Sanitary Sewer System Maintenance$100,000Upgrades done in conjunction with residential street improvements Sanitary Sewer System Maintenance$15,000Lift station upgrades Sanitary Sewer System Maintenance$20,000Emergency water connection with Edina Storm Drainage System Maintenance$100,000Upgrades done in conjunction with residential street improvements Storm Drainage System Maintenance$250,000Cottageville Park - storm water improvements Storm Drainage System Maintenance$18,000Concrete alley repairs TOTAL$3,486,050 The projects described on the previous page are planned for 2012. 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. 2012 BUDGET 51 CITY OF HOPKINS Equipment Replacement Plan 2012 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 $801,400. 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 2012 ERP and have been approved for purchase in 2012. Project TitleProject Description Investment Computer Replacements & $63,000Replacement and/or upgrades of staff computers, printers Upgradesand scanners Police Patrol Vehicles $69,200Marked patrol cars used by patrol officers to respond to calls, enforce traffic laws and perform general patrol duties Police Administrative Vehicle$28,800Police administrative and detective vehicle Public Safety - Radios$15,000Portable and mobile radios used by police, fire and public works departments to allow departments to communicate on one frequency. Fire - Aerial Truck$54,217Lease payment on portion of aerial truck financed in 2008 Fire - Extrication Tool$22,300Replacement of extrication tool, a hydraulic rescue and extrication tool with spreader, cutters and hydraulic ram. Public Works - 3/4 ton Truck$67,400Replacement of truck used by parks division of public works for snow plowing, hauling and transportation. Public Works - 1 ton Truck$34,700Used in street division for street and park maintenance and light hauling. Public Works - 1 ton Traffic $82,500Used by traffic division for signal and light pole maintenance. Boom Truck Public Works - Single Axel $127,400Used by all divisions of public works for heavy hauling, snow Dump Truckplowing and sanding. Public Works - Front End $172,000Replacement of 1991 front end loader and used by all Loaderdivisions of public works. Public Works - Misc Equip$22,900Purcahse of asphalt hot mix heating box and grass seed appliator (overseeder). Additions to equipment. TOTAL $759,417 2012 BUDGET 52 CITY OF HOPKINS 2012 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 $1,000 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 2012. PROJECT TITLE2012 General Fund No items for 2012$0all items requested were eliminated from 2012 budget Special Revenue Funds Depot Coffee House$5,000Sound/video technology to record performances TOTAL$5,000 Total budgeted capital items from all funding sources totals $4,250,467 for 2012. 2012 BUDGET 53 CITY OF HOPKINS GENERAL FUND BUDGET PROJECTIONS ApprovedProjected 201120122013201420152016 SOURCEProjectedBudgetBudgetBudgetBudgetBudget Current Revenues Property Tax8,613,469$ 8,889,091$ 8,977,982$ 9,067,762$ 9,158,440$ 9,250,025$ Intergovernmental Revenues479,079 512,370 436,564 436,538 482,370 509,075 License, Permits and Fines634,315 485,615 675,000 700,000 710,000 710,000 Investment Earnings13,675 25,000 25,000 25,000 25,000 25,000 Charges for Current Services294,920 245,150 250,000 255,000 225,000 235,000 Other Revenue37,979 109,299 25,000 25,000 25,000 30,000 Franchise Fee289,188 290,000 300,000 310,000 325,000 325,000 Total Revenues 10,556,52510,362,625 10,689,546 10,819,300 10,950,810 11,084,100 Current Expenses Salaries and Employee Benefits8,127,528 8,290,961 8,373,871 8,457,610 8,542,185 8,627,600 Materials, Supplies and Services2,128,358 2,255,564 2,300,675 2,346,690 2,393,625 2,441,500 Capital outlay7,277 - - - - - Transfer Out10,000 10,000 15,000 15,000 15,000 15,000 Total Expenditures 10,556,52510,273,163 10,689,546 10,819,300 10,950,810 11,084,100 Change in Fund Balance89,462 - - - - - Fund Balance4,231,233$ 4,231,233$ 4,231,233$ 4,231,233$ 4,231,233$ 4,231,233$ 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 2012 through 2016 is projected to be 1-2.0% which the City Council feels is responsible given the current economic situation. This projection reflects an appropriation increase of 1.66% for 2012 and an average increase for years 2013-2016 of 1.2%. 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 84%. 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 conditions the market value will have minimal if any growth. However, the city is working 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 stay stable or see a minimal overall increase. 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 and 2011. The franchise fee 2012 BUDGET 54 CITY OF HOPKINS is set to expire December 31, 2013 and staff will be recommending it be renewed for two additional years. The franchise fee is reviewed annually by the City Council and along with staff continues to analyze its usefulness. An alternative to the flat fee based franchise is a fee based on percentages and staff will look at moving in that direction for the future. Intergovernmental revenue, which decreased substantially in 2003 and 2004, leveled off in 2005 and was stable over the next several years. Following the state aid cuts of 2003 and 2004 funds received by the City of Hopkins from the State have remained the same until December 2008 when the second half MVHC payment was cut due to the state deficit. In 2004, the City lost the remainder of its local government aid except $50,000, which is used to assist with the operations of the Art Center. In 2008 the second half payment was unallotted and no funds have been received from this source since that date. Local government aid is derived from sales tax revenues and is allocated by the state legislature. Each year the State reviews its ability to make payments of Local Government Aid (LGA) and the amount can increase or decrease based upon State Legislative action. Due to the states continued budget challenges it is uncertain if this revenue stream will ever be reinstated and therefore the city no longer relies on this income when setting the annual budgets. Other significant forms of 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. LGA payments formerly received were used by the Hopkins Center for the Arts, a Special Revenue Fund. 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 remain flat for 2012 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. 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 were held stable for the 2012 budget. Future projections are to forecast an increase of 1% annually. Interest revenues have fallen drastically the last few years as interest rates declined and as investment options for municipalities became limited. Interest revenue projections for 2012 remain at a low level based on information from the city’s investment brokers. The general fund, which accounts for one third of the City's operating expenses, has a revenue budget of $10,556,525 and an appropriation budget of the same. The increase in appropriations over 2011 is $170,969 or 1.66%. The budget was specifically prepared with the intention of meeting the budget goals, while assuring efficiency and effectiveness in all positions. For 2012, the budget was prepared with no new staffing, several positions left open for portions of the year, a zero percentage wage increase for all employee groups, no general fund capital items, reduced street maintenance expenses for road repairs, re-allocation of staff to non general fund activities and re- organization of the recreation program. The enhanced medical response program implemented in 2007 will continue into 2012 as the program has allowed for greater efficiencies in the police department and increased service to the public. In 2008 the City implemented a new rental licensing program and brought on one new staff member. Hopkins consists of over 60% rental properties and in order to ensure the housing stock is maintained to code all rental properties are required to be licensed and inspected. Prior to 2008 the license fee structure did not allow for adequate staffing to inspect rental properties on a scheduled basis. The rental fees were restructured and an additional staff person was hired. The program is now meeting the inspection schedule while the fee structure ensures funding for the additional staff person. Other budget considerations for 2012 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 2012 BUDGET 55 CITY OF HOPKINS information by programs within a department and the council spent considerable time reviewing that information before adopting the budget. The council and staff will continue to face budgetary challenges for the next few years as we strive to hold taxes down while meeting the needs of the citizens. Staff 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. The chart to the left shows 2011 projected actual expenditures along with the 2012 approved budget and projected budgets from 2013 through 2016. 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. 2012 BUDGET 56 CITY OF HOPKINS General Fund Appropriation Budget Comparisons – By Department Budget 2010201120112012$ Amount ActualActualBudgetBudgetChangeChange Council $ 62,355 $ 78,911 $ 71,547 $ 68,697 $ (2,850)-3.98% Administrative Services 412,808 392,850 451,670 469,132 17,462 3.87% Finance 196,490 213,136 203,243 209,726 6,483 3.19% Legal 126,233 140,213 135,000 135,000 - 0.00% Municipal Building 259,887 275,796 294,818 296,863 2,045 0.69% Community Services 905,036 934,453 927,430 941,074 13,644 1.47% Police 4,309,202 4,432,532 4,484,387 4,530,032 45,645 1.02% Fire 963,389 859,115 838,258 855,424 17,166 2.05% Public Works 2,037,469 2,289,066 2,174,400 2,198,677 24,277 1.12% Recreation 503,534 524,920 533,192 528,864 (4,328)-0.81% Planning & Economic Dev. 110,970 112,335 125,182 126,837 1,655 1.32% Community Development - - - 85,999 85,999 0.00% Unallocated 21,506 19,836 60,200 110,200 50,000 83.06% TOTAL $9,908,879 $10,273,163 $10,299,327 $10,556,525 $257,198 2.50% 2012 Mayor & City Council 2012 BUDGET 57 GENERAL FUND BUDGET Revenues and Expenditures ActualActualActualBudgeBudgePercen ttt 20092010201120112012Change Revenues Property Taxes$8,015,571 $8,498,409 $8,613,470 $8,630,564 $8,889,091 3.00% Intergovernmental526,250 436,282 479,078 442,070 512,370 15.90% Licenses, Permits and Fines747,207 541,872 634,315 515,290 485,615 -5.76% Interest Earnings32,534 17,570 13,675 75,000 25,000 -66.67% Charges for Services362,161 225,800 295,170 194,200 245,150 26.24% Franchise Fees286,404 283,015 289,188 290,000 290,000 Miscellaneous28,617 31,425 37,729 21,400 109,299 410.74% Transfer In - Operating50,000 - - - - Use of Budget Reserves- - - 130,803 - Total Revenues10,048,744 10,034,374 10,362,625 10,299,327 10,556,525 2.50% Expenditures Salaries, Wages and Benefits Salaries and Wages5,948,231 5,898,506 6,002,626 5,980,232 6,096,337 1.94% Fringe Benefits1,987,977 2,192,695 2,124,902 2,183,567 2,194,624 0.51% Materials, Supplies and Services Professional & Technical Services747,244 712,086 803,298 734,517 764,365 4.06% Utilities and Maintenance 744,213830,279 871,970 863,930 871,880 0.92% Operations250,392 236,028 296,730 401,899 484,611 20.58% City Support Services157,967 143,465 149,386 150,886 154,954 2.70% Supplies and Materials624,682 599,820 692,035 667,250 654,870 -1.86% Capital Outla y Buildings & Improvements- - - - - Vehicles- - - - - -- - - - Office Furniture and Equipmen t 2,169- 7,277 - - Equipmen t Equipment Allocation284,164 289,355 299,253 299,224 314,166 4.99% Total Expenditures10,830,936 10,818,336 11,247,477 11,281,505 11,535,807 2.25% Transfer Ou 11,5995,836 10,000 - 10,000 t Reimbursed Expenditures(918,556) (976,977) (981,939) (982,178) (989,282) 0.72% Net Total Expenditures9,918,216 9,852,958 10,275,538 10,299,327 10,556,525 2.50% Excess (deficiency) of Rev. over Exp.130,527 181,416 87,087 - - Ending Fund Balance3,996,115 4,177,531 4,264,618 4,177,531 4,264,618 2012 BUDGET 58 CITY OF HOPKINS - 2010 BUDGET UNALLOCATED Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Property Taxes$8,014,416$8,498,409$8,611,399$8,595,064$8,991,0914.61% Intergovernmental Revenue23,20623,20023,33120,51020,510 Interest earnings32,02617,57013,67575,00025,000-66.67% Franchise Fees286,404283,015289,188290,000290,000 Miscellaneous5303,7642,029500 - Total Revenues8,356,5818,825,9588,939,6238,981,0749,326,6013.85% Expenditures Materials, Supplies and Services Operations12,0909,9089,83660,200100,20066.45% Operating Transfers Transfer from other funds50,000 - - - - Transfer to other funds5,83611,59910,000 -10,000 Total Expenditures67,92621,50619,83660,200110,20083.06% Indirectly Funded Amount8,288,6558,804,4528,919,7878,920,8749,216,4013.31% 2012 BUDGET 59 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 2012: 1. Monitor tax collections 2. Evaluate franchise fee structure 3. Maximize investment earnings FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Property Taxes $ 8,630,564 $ 8,887,591 2.98% Intergovernmental 20,510 20,510 0.00% Interest Earnings 75,000 25,000 -66.67% Franchise Fee 290,000 290,000 0.00% Miscellaneous 500 - -100.00% Total Revenues 9,016,574 9,223,101 2.29% EXPENDITURES: Materials, Supplies & Services 60,200 100,200 66.45% Operating Transfer - 10,000 -- Total Expenditures 60,200 110,200 83.06% NET TAX AND GENERAL $8,956,374 $9,112,901 1.80% REVENUE 2012 BUDGET 60 CITY COUNCIL BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Expenditures Salaries, Wages and Benefits Salaries and Wages24,49624,49124,40024,40024,400 Fringe Benefits2,2262,2612,1692,0972,097 Materials, Supplies and Services Professional & Technical Services1,6159912,671500400-20.00% Operations34,07033,44337,86338,30037,800-1.31% City Support Services1,218 - -1,250 --100.00% Supplies and Materials4,4452,0621,8075,0004,000-20.00% Total Expenditures68,07062,35578,91171,54768,697-3.98% Indirectly Funded Amount68,07062,35578,91171,54768,697-3.98% The City Council Department is made up of two programs. They are Council Activity and Boards & Commissions. 2012 BUDGET 61 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 2012: 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 2012 Citizen’s Academy and Alumni event 3. Publish 2011 City Annual Report 4. Conduct 2012 State of the City event FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits26,497$ 26,497$ 0.00% Materials, Supplies & Services45,050$ 42,200$ -6.33% NET TAX AND GENERAL REVENUE SUPPORTED71,547$ 68,697$ -3.98% PERSONNEL: Number of FTE positionsMayor and 4 Council Citizen’s Academy class 2012 BUDGET 62 ADMINISTRATIVE SERVICES BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Expenditures Salaries, Wages and Benefits Salaries and Wages$356,491 $346,999 $327,853 $359,073 $371,168 3.37% Fringe Benefits131,398 130,039 123,395 138,511 144,489 4.32% Materials, Supplies and Services Professional & Technical Services10,937 9,896 15,875 14,500 14,470 -0.21% Utilities and Maintenance1,794 3,318 3,666 3,910 4,065 3.96% Operations19,029 15,019 14,611 26,856 26,556 -1.12% City Support Services2,268 2,028 1,823 1,870 1,619 -13.42% Supplies and Materials4,152 4,871 4,847 6,450 6,155 -4.57% Total Expenditures526,068 512,170 492,068 551,170 568,522 3.15% Reimbursed Expenditures(100,000) (104,000) (104,000) (104,000) (104,000) Net Total Expenditures426,068 408,170 388,068 447,170 464,522 3.88% Indirectly Funded Amount426,068 408,170 388,068 447,170 464,522 3.88% The Administrative Services Department is made up of four programs. They are Administration, Personnel, Wellness and Information Technology Services 2012 BUDGET 63 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. FY 2011FY 2012 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN ApprovedApprovedPercent 2012: 1. Enhance the agenda and report program that BudgetBudgetChange keeps the Council and public informed through EXPENDITURES: meetings and correspondence. Salaries/Wages/Benefits $ 209,734 $ 214,465 2.26% 2. Continue the coordinate the future planning of the Materials, Supplies & Services 23,566 22,625 -3.99% City through the Capital Improvements Plan (CIP) Reimbursed Expenditures (66,000) (66,000)0.00% program. 3. Continue to operate and enhance the employee NET TAX AND GENERAL wellness program. REVENUE SUPPORTED $167,300 $171,090 2.27% 4. Enhance Leadership and Training for City Council and Staff. PERSONNEL: 5. Prepare a legislative agenda, monitor legislative issues, and lobby on issues affecting the City Number of FTE positions1.81.95 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 2012: 1. Improve benefit information provided to all employees. 2. Negotiate three contracts. FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits $ 56,447 $ 56,990 0.96% Materials, Supplies & Services 3,477 3,415 -1.78% Reimbursed Expenditures (16,000) (16,000)0.00% NET TAX AND GENERAL REVENUE SUPPORTED $ 43,924 $ 44,405 1.10% PERSONNEL: Number of FTE positions0.450.45 2012 BUDGET 64 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Administrative Services – Wellness FY 2011FY 2012 ApprovedApprovedPercent PROGRAM SUMMARY BudgetChange Budget The Wellness program of the Administrative Services EXPENDITURES: Department provides support and activities to encourage Materials, Supplies & Services 2,000 2,000 0.00% overall general good health of city employees. NET TAX AND GENERAL MAJOR OBJECTIVES TO BE ACCOMPLISHED IN REVENUE SUPPORTED $ 2,000 $ 2,000 0.00% 2012: Goal 2, Strategy 3 – Healthy City Initiatives: 1. Continue to provide healthy guidance to employees. PERSONNEL: 2. Provide at least one low cost wellness event each Number of FTE positions00 month. 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 2012: 1. Create open sourced Linux based redundant iSCSI SAN. 2. Remove final 3 Windows 2000 computers from the City Network. 3. Install fiber optic network connection to LOGIS 4. Migrate from Visionair public safety software to software offered by LOGIS. 5. Continue to update and improve network security, efficiency, and reliability. 6. Replace aging Cisco 3550 core network switches with new upgraded switch. 7. Update IT business continuity/disaster recovery plan to take advantage of virtualization technologies. 8. Update Incode to allow web payments. 9. Pending the release of a new PCI compliant version of Incode, certify the city 100% PCI complaint. 10. Extend CJIS network to Fire Hall and move one PD domain controller off site. 11. Continue to explore the feasibility of running the Exchange Message store from the iSCSI SAN. FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits $ 231,403 $ 244,202 5.53% Materials, Supplies & Services 29,043 29,435 1.35% Reimbursed Expenditures (20,000) (22,000)10.00% NET TAX AND GENERAL REVENUE SUPPORTED $240,446 $251,637 4.65% PERSONNEL: Number of FTE positions2.552.55 2012 BUDGET 65 FINANCE BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Miscellaneous$14,686$12,228$18,758$10,000$10,5505.50% Expenditures Salaries, Wages and Benefits Salaries and Wages256,320261,446265,412264,571270,4582.23% Fringe Benefits80,82982,63288,15686,97087,7100.85% Materials, Supplies and Services Professional & Technical Services19,23528,31625,05823,46026,26011.94% Utilities and Maintenance22,32522,35825,96320,30022,85012.56% Operations8,1929,0259,53511,62512,1254.30% City Support Services3902673073453594.06% Supplies and Materials8,03110,36311,14510,8009,800-9.26% Capital Outlay Equipment Allocation1,4091,3111,1141,114821-26.30% Total Expenditures396,730415,717426,690419,185430,3832.67% Reimbursed Expenditures(211,055) (223,486) (219,178) (219,178) (226,282) 3.24% Net Total Expenditures185,675192,232207,512200,007204,1012.05% Indirectly Funded Amount170,990180,004188,754190,007193,5511.87% The Finance department consists of six programs. They are budgeting, Debt Management, General Accounting, Payroll, Tax Increment Financing Reporting, and Utility Billing. 2012 BUDGET 66 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Finance – Budget PROGRAM SUMMARY The budget program of the Finance Department coordinates and prepares the annual budget. It also prepares the 20-year equipment replacement plan and assists the City Manager with the capital improvement plan preparation. This includes meeting with departments and FY 2011FY 2012 administrators to determine the overall goals and ApprovedApprovedPercent funding requirements for the city. BudgetBudgetChange MAJOR OBJECTIVES TO BE ACCOMPLISHED IN EXPENDITURES: 2012: Salaries/Wages/Benefits $ 34,045 $ 37,205 9.28% 1. Submit budget for the Government Finance Officers Materials, Supplies & Services 3,021 3,044 0.76% Budget Award. Reimbursed Expenditures (14,000) (14,000)0.00% 2. Update the 20-year Equipment Replacement Plan 3. Update budget document on the website. NET TAX AND GENERAL REVENUE SUPPORTED $ 23,066 $ 26,249 13.80% PERSONNEL: Number of FTE positions0.30.3 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 2012: 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 potential bond issue. 4. Analyze possibilities of debt refunding(s). FY 2011FY 2012 5. Prepare annual debt reporting for county as required ApprovedApprovedPercent by state statutes BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits $ 12,174 $ 12,408 1.92% Materials, Supplies & Services 1,676 1,670 -0.36% Reimbursed Expenditures (13,850) (14,078)1.65% NET TAX AND GENERAL REVENUE SUPPORTED $ - $ - -- PERSONNEL: Number of FTE positions0.10.1 2012 BUDGET 67 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Finance – Accounting PROGRAM SUMMARY The Accounting program of the Finance Department FY 2011FY 2012 provides financial management for the City and the ApprovedApprovedPercent Housing and Redevelopment Authority. It provides BudgetBudgetChange support services to other departments in the City through REVENUES: initiating fiscal plans, implementation and control of those Miscellaneous $ 6,000 $ 5,550 -7.50% plans, accounting and analysis of transactions. Accounting manages the city’s day-to-day accounting EXPENDITURES: transactions, including accounts receivable, accounts payable, cash receipts and general accounting. The Salaries/Wages/Benefits $ 139,965 $ 143,349 2.42% program prepares monthly and quarterly financial Materials, Supplies & Services 38,483 40,053 4.08% statements and compiles the year-end comprehensive Reimbursed Expenditures (49,000) (50,000)2.04% financial report. $ 129,448 $ 133,402 3.05% MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: NET TAX AND GENERAL 1. Submit CAFR for the GFOA award program. REVENUE SUPPORTED $123,448 $127,852 3.57% 2. Provide accurate and timely month-end and quarterly financial reports. PERSONNEL: 3. Prepare 20-year Capital Improvement Plan. 4. Update actuarial study on OPEB obligations. Number of FTE positions1.71.7 5. Update CAFR on city website. 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 2012: 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 information and assist employees with questions regarding their benefit options. FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits $ 61,594 $ 59,975 -2.63% Materials, Supplies & Services 5,135 5,100 -0.68% Reimbursed Expenditures (20,000) (20,000)0.00% NET TAX AND GENERAL REVENUE SUPPORTED $ 46,729 $ 45,075 -3.54% PERSONNEL: Number of FTE positions0.750.75 2012 BUDGET 68 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Finance – TIF Administration PROGRAM SUMMARY The Tax Increment Financing Administration program of the Finance Department records and reports tax increment program activities. It is charged with the responsibility of ensuring compliance with state statutes and guidelines. FY 2011FY 2012 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN ApprovedApprovedPercent 2012: BudgetBudgetChange 1. Continue analysis of Tax Increment Financing funds. EXPENDITURES: 2. Assist with implementation of new TIF districts. Salaries/Wages/Benefits $ 12,174 $ 12,408 1.92% 3. Prepare annual Office of the State Auditor reports. Materials, Supplies & Services 2,480 2,495 0.60% Reimbursed Expenditures (14,654) (14,903)1.70% NET TAX AND GENERAL REVENUE SUPPORTED $ - $ - -- PERSONNEL: Number of FTE positions0.10.1 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 2012: 1. Explore 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. FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Charges for service $ 4,000 $ 5,000 25.00% EXPENDITURES: Salaries/Wages/Benefits $ 91,589 $ 92,823 1.35% Materials, Supplies & Services 20,085 25,478 26.85% Reimbursed Expenditures (107,674) (113,301)5.23% $ 4,000 $ 5,000 25.00% NET TAX AND GENERAL REVENUE SUPPORTED $ - $ - #DIV/0! PERSONNEL: Number of FTE positions1.651.65 2012 BUDGET 69 LEGAL BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Court Fines$ 96,206$ 86,538$ 118,993$ 115,000$ 115,000 Expenditures Materials, Supplies and Services Professional & Technical Services137,221126,233140,213135,000135,000 Operations - - - - - Total Expenditures137,221126,233140,213135,000135,000 Indirectly Funded Amount41,01539,69521,22020,00020,000 The Legal Department is made up of two programs. They are Legal Counsel and Prosecution. 2012 BUDGET 70 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 Steiner & Curtiss 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 2012: 1. Prosecute the rights of the City. 2. Prosecute violators of the law. 3. Obtain quality legal representation for the City FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Court Fines $ 115,000 $115,000 0.00% EXPENDITURES: Materials, Supplies & Services $ 135,000 $135,000 0.00% NET TAX AND GENERAL REVENUE SUPPORTED $ 20,000 $20,000 0.00% PERSONNEL: The City contracts with a legal firm to represent the City. 2012BUDGET 71 MUNICIPAL BUILDING Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Sale of Fixed Assets$2,520$2,880$2,520$2,500$2,500 Expenditures Salaries, Wages and Benefits Salaries and Wages80,32187,86290,06388,89793,0304.65% Fringe Benefits37,49438,36241,12440,10042,5626.14% Materials, Supplies and Services Professional & Technical Services32,84336,55132,27542,00042,000 Utilities and Maintenance118,512111,784127,612132,700125,500-5.43% Operations4072,3036002,8002,500-10.71% City Support Services13,16412,12312,34811,04113,57122.91% Supplies and Materials13,29110,42011,43716,95016,950 Capital Outlay Buildings & Structures - - - - - Office Furniture and Equipment - - - - - Total Expenditures296,032299,404315,458334,488336,1130.49% Reimbursed Expenditures(40,000) (40,000) (40,000) (40,000) (40,000) Net Total Expenditures256,032259,404275,458294,488296,1130.55% Indirectly Funded Amount253,512256,524272,938291,988293,6130.56% The Municipal Building Department consists of building maintenace. 2012 BUDGET 72 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 2012: 1. Continuation of Green Initiatives within City Hall. 2. Painting of Raspberry Meeting Rooms. FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Rents $ 2,500 $ 2,500 0.00% EXPENDITURES: Salaries/Wages/Benefits $ 128,997 $ 135,592 5.11% Materials, Supplies & Services 205,821 201,271 -2.21% Reimbursed Expenditures (40,000) (40,000)0.00% $ 294,818 $ 296,863 0.69% NET TAX AND GENERAL REVENUE SUPPORTED $ 292,318 $294,363 0.70% th City Hall at 11 & First St PERSONNEL: Number of FTE positions1.451.45 2012 BUDGET 73 COMMUNITY SERVICES SUMMARY BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Licenses$39,920$40,866$30,864$41,600$13,000-68.75% Permits480,539278,376315,126221,000238,5007.92% Current Services194,694103,140147,23987,05081,150-6.78% Expenditures Salaries, Wages and Benefits Salaries and Wages557,387573,148570,385579,234575,594-0.63% Fringe Benefits152,447161,119175,016166,982168,2030.73% Materials, Supplies and Services Professional & Technical Services137,588147,252152,070146,050156,4007.09% Utilities and Maintenance12,31510,93711,28211,43013,50518.15% Operations13,95115,12218,94324,97528,34013.47% City Support Services44,36644,34744,65044,58342,346-5.02% Supplies and Materials9,7167,87517,92210,02010,7807.58% Capital Outlay Office Furniture and Equipment - - - - - Equipment Allocation5,5346,2375,1855,1566,90633.94% Total Expenditures933,305966,036995,453988,430########1.38% Reimbursed Expenditures(61,000) (61,000) (61,000) (61,000) (61,000) Net Total Expenditures872,305905,036934,453927,430941,0741.47% Indirectly Funded Amount157,152482,654441,224577,780608,4245.30% The Community Service department is made up of four main programs. They ar e Reception, Assessing, Inspections, and City Clerk. 2012 BUDGET 74 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Community Services – Receptionist PROGRAM SUMMARY FY 2011FY 2012 The Receptionist program of the Community Services ApprovedApprovedPercent Department answers calls at main switchboard and BudgetBudgetChange route calls to various departments. Directs walk-in EXPENDITURES: customers to the appropriate department. Sales of dog Salaries/Wages/Benefits43,510$ 44,067$ 1.28% licenses and parking permits occur in this program. Materials, Supplies & Services984$ 779$ -20.83% Receipts are accepted for payment of building permits and utility bills. The program also provides clerical and NET TAX AND GENERAL secretarial services to other departments. REVENUE SUPPORTED44,494$ 44,846$ 0.79% OBJECTIVES TO BE ACCOMPLISHED IN 2012: PERSONNEL: Goal 1, Strategy 3- Provide Accessible and Friendly City Number of FTE positions1.451.45 Services: 1. Move dog licensing to Incode 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 2012: 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 Incode system. FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Charges for service $ 1,000 $ 1,200 20.00% EXPENDITURES: Salaries/Wages/Benefits $ 84,213 $ 85,313 1.31% Materials, Supplies & Services 107,023 111,778 4.44% Reimbursed Expenditures (24,000) (24,000)0.00% $ 167,236 $ 173,091 3.50% The Special Assessment Clerk is available to assist with property tax and assessing related questions. NET TAX AND GENERAL REVENUE SUPPORTED $ 166,236 $171,891 3.40% PERSONNEL: Number of FTE positions1.051.05 2012 BUDGET 75 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Community Services – City Clerk PROGRAM SUMMARY FY 2011FY 2012 The City updates the City Code as new ordinances are ApprovedApprovedPercent passed, takes minutes at the City Council meetings and BudgetBudgetChange transcribes them using a computer. Business licenses REVENUES: applications are reviewed prior to issuance. The City Licenses $ 7,600 $ 5,000 -34.21% Clerk is also the purchasing officer of the city. EXPENDITURES: MAJOR OBJECTIVES TO BE ACCOMPLISHED IN Salaries/Wages/Benefits $ 37,643 $ 35,619 -5.38% 2012: Materials, Supplies & Services 6,395 6,203 -3.00% Goal 2, Strategy 2 – Go Green Reimbursed Expenditures (25,000) (25,000)0.00% 1. Purchase “green” or recycled products when $ 19,038 $ 16,822 -11.64% available if the pricing is competitive and product meets quality standards. NET TAX AND GENERAL 2. Ensure that the City Document Archives section of REVENUE SUPPORTED $ 11,438 $ 11,822 3.36% the City’s website contains the most up to date information in all areas listed. PERSONNEL: 3. Review and update where needed applications and forms that are available on the Web site. Number of FTE positions0.40.4 PROGRAM: Community Services – Records Management PROGRAM SUMMARY The Records Management program of the Community Services Department reviews City records to ensure that necessary documents are retained and outdated documents are disposed. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: Goal 2, Strategy 2 – Go Green 1. Continue to transfer permanent records to electronic storage and integrate with the Web site. 2. Review and update the General Records Retention Schedule for each of the departments. FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits $ 26,561 $ 27,037 1.79% Materials, Supplies & Services 15,272 17,236 12.86% Reimbursed Expenditures (12,000) (12,000)0.00% NET TAX AND GENERAL REVENUE SUPPORTED $ 29,833 $ 32,273 8.18% PERSONNEL: Number of FTE positions0.350.35 2012 BUDGET 76 CITY OF HOPKINS FUND 101 – GENERAL FUND 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, 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 2012: 1. Recruit and train additional Election Judges for the 2012 Presidential Election. Offer some part-time positions as requested by several current Election Judges who may be unable to complete a 15 or 16 hour day. 2. Work with Hennepin County City to review 2010 Census information for State mandated redistricting in 2012. 3. Work to better organize information and supplies for Election Judges use on Election Day. FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Charges for service $ 11,000 $ - -100.00% EXPENDITURES: Salaries/Wages/Benefits $ 32,403 $ 31,379 -3.16% Materials, Supplies & Services 17,819 29,496 65.53% $ 50,222 $ 60,875 21.21% NET TAX AND GENERAL REVENUE SUPPORTED $ 39,222 $ 60,875 55.21% PERSONNEL: Number of FTE positions0.350.35 2012 BUDGET 77 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 FY 2011FY 2012 easily accessible customer service at the inspections ApprovedApprovedPercent counter and continues with plan review; permit issuance, BudgetBudgetChange inspection of construction phases and an issuance of a REVENUES: certificate of occupancy. License, Permits, Charges $ 123,500 $ 143,500 16.19% MAJOR OBJECTIVES TO BE ACCOMPLISHED IN EXPENDITURES: 2012: Salaries/Wages/Benefits $ 191,000 $ 193,879 1.51% Goal 1, Strategy 3- Provide Accessible and Friendly City Materials, Supplies & Services 61,090 74,719 22.31% Services: 1. Work on closing out aging permits from the past $ 252,090 $ 268,598 6.55% years. 2. Adopt 2006 International Property Maintenance NET TAX AND GENERAL Code. REVENUE SUPPORTED $ 128,590 $125,098 -2.72% 3. Get Emergency Inspection Packets together in case of natural disaster. PERSONNEL: 4. Update handouts and website. Number of FTE positions2.2252.195 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 FY 2011FY 2012 residential buildings are inspected yearly for fire code ApprovedApprovedPercent violations to insure these structures are maintained BudgetBudgetChange safe for their occupants. The focus is on more hazardous occupancies.REVENUES: Permits $ 3,000 $ - -100.00% MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: EXPENDITURES: 1. Continue the fire prevention inspection program. Salaries/Wages/Benefits $ 37,745 $ 34,193 -9.41% 2. Implement new fire code software. Materials, Supplies & Services 460 301 -34.57% $ 38,205 $ 34,494 -9.71% NET TAX AND GENERAL REVENUE SUPPORTED $ 35,205 $ 34,494 -2.02% PERSONNEL: Number of FTE positions0.410.35 2012 BUDGET 78 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Community Services – Heating and Plumbing Code Inspection PROGRAM SUMMARY FY 2011FY 2012 The Heating and Plumbing Code Inspection program ApprovedApprovedPercent of the Community Services Department inspects new BudgetBudgetChange and remodeled buildings for heating and plumbing REVENUES: compliance. The process begins with easily Permits $ 73,000 $ 53,000 -27.40% accessible customer service at the inspections counter and continues with plan review; permit EXPENDITURES: issuance, inspection of construction phases. Become Salaries/Wages/Benefits $ 85,980 $ 87,584 1.87% familiar with new gas, mechanical and energy code. Materials, Supplies & Services 4,420 3,774 -14.62% MAJOR OBJECTIVES TO BE ACCOMPLISHED IN $ 90,400 $ 91,358 1.06% 2012 1. Close out open permits from 2006-2010. NET TAX AND GENERAL 2. Work with Engineering to get the storm sewer REVENUE SUPPORTED $ 17,400 $ 38,358 120.45% permitting process revised. PERSONNEL: Number of FTE positions1.041.04 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 2012: M Goal 1, Strategy 3- Provide Accessible and Friendly City Services: 1. Continue to tweak rental licensing program. 2. Get Truth In Housing Guidelines updated. FY 2011FY 2012 3. Educate property owners on the new Rental ApprovedApprovedPercent Inspection Point System so they pass BudgetBudgetChange inspections the first time. REVENUES: License, permits, charges $ 89,100 $ 111,600 25.25% EXPENDITURES: Salaries/Wages/Benefits $ 128,146 $ 128,136 -0.01% Materials, Supplies & Services 6,534 7,441 13.88% $ 134,680 $ 135,577 0.67% NET TAX AND GENERAL REVENUE SUPPORTED $ 45,580 $ 23,977 -47.40% PERSONNEL: Number of FTE positions1.781.72 2012 BUDGET 79 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Community Services – Restaurant and FY 2011FY 2012 Hotel Inspection ApprovedApprovedPercent BudgetBudgetChange PROGRAM SUMMARY REVENUES: Hennepin County took over this service on January 1, License, permits, charges $ 27,600 $ - -100.00% 2012. EXPENDITURES: MAJOR OBJECTIVES TO BE ACCOMPLISHED IN Salaries/Wages/Benefits $ 4,009 $ 876 -78.15% 2012: Materials, Supplies & Services 19,300 284 -98.53% 1. Help the transition with Hennepin County as they have taken over the Health Inspections in 2012. $ 23,309 $ 1,160 -95.02% NET TAX AND GENERAL REVENUE SUPPORTED $ (4,291) $ 1,160 -127.03% PERSONNEL: Number of FTE positions0.060.01 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. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: Goal 1, Strategy 3- Provide Accessible and Friendly City Services: 1. Continue with spring and fall sweeps and respond to citizen complaints in a prompt and courteous manner. 2. Send out newsletter in spring regarding sweeps potential violations. FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Citations, charges for service $ 3,850 $ 8,350 116.88% EXPENDITURES: Salaries/Wages/Benefits $ 71,104 $ 75,694 6.46% Materials, Supplies & Services 4,039 3,566 -11.71% $ 75,143 $ 79,260 5.48% NET TAX AND GENERAL REVENUE SUPPORTED $ 71,293 $ 70,910 -0.54% PERSONNEL: Number of FTE positions0.8350.885 2012 BUDGET 80 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Community Services – Vacant Property Management PROGRAM SUMMARY The Vacant Property Management program of the Community Services Department MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: 1. Continue to educate snow birds and other vacant property owners on why we want them to register their property. 2. Send out enforcement letters and billings. FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Property Registrations $ 10,000 $ 10,000 0.00% EXPENDITURES: Materials, Supplies & Services $ 2,700 $ 2,700 0.00% NET TAX AND GENERAL REVENUE SUPPORTED $ (7,300) $ (7,300)0.00% PERSONNEL: Number of FTE positions00 2012 BUDGET 81 POLICE BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Intergovernmental$307,755$223,239$243,884$216,560$296,86037.08% Licenses83,85185,91298,88195,90096,2000.31% Court Fines/Forfeitures23,98526,78040,27520,000 --100.00% Penalties2,1991,8466102,5002,500 Current Service38,52749,86847,99043,50040,000-8.05% Miscellaneous1,6485,0266,1755001,000100.00% Expenditures Salaries, Wages and Benefits Salaries and Wages2,828,6352,821,4062,831,7192,836,7322,863,9900.96% Fringe Benefits956,126945,7701,001,7731,042,5931,038,074-0.43% Materials, Supplies and Services Professional & Technical Services101,48290,12195,547110,350119,6008.38% Utilities and Maintenance110,299102,577124,819134,190134,2900.07% Operations133,76580,47190,10887,69892,8535.88% City Support Services129,740117,761103,383106,409118,03510.93% Supplies and Materials168,893151,006185,183166,415163,190-1.94% Capital Outlay Office Furniture and Equipment - - - - - Equipment - - - - - Total Expenditures4,428,9404,309,1134,432,5324,484,3874,530,0321.02% Indirectly Funded Amount3,970,9763,916,4433,994,7184,105,4274,093,472-0.29% 2012 BUDGET 82 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Police – Administration PROGRAM SUMMARY The Administration program of the Police Department provides 24-hour staffing of police and support services to enhance the delivery and supervision of emergency and non-emergency services to the community. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: 1. Engage City employees and community in the Joint Community Police Partnership (JCPP) program. 2. Continue to engage police employees to develop strategies and promote Problem Oriented Policing (POP) concept 3. Continue to seek grant funding and administer grants awarded. 4. Administer JCPP program and personnel FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits386,554$ 386,032$ -0.14% Materials, Supplies & Services94,061$ 100,467$ 6.81% NET TAX AND GENERAL REVENUE SUPPORTED480,615$ 486,499$1.22% PERSONNEL: Number of FTE positions3.153.15 2012 BUDGET 83 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Police –Patrol FY 2011FY 2012 PROGRAM SUMMARY ApprovedApprovedPercent Work with citizens to improve the quality of life by BudgetBudgetChange implementing effective prevention strategies to REVENUES: reduce crime and improve traffic safety. Licenses $ 10,200 $ 10,200 0.00% Intergovernmental Revenue 191,700 272,000 41.89% MAJOR OBJECTIVES TO BE ACCOMPLISHED IN Fines & Forfeits 22,500 2,500 -88.89% 2012: Charges for Service 15,000 15,000 0.00% 1. Continue to focus on Problem Oriented Policing Misecllaneous - 500 #DIV/0! (POP) concept 2. Engage officers in the Joint Community Police $ 239,400 $ 300,200 25.40% Partnership (JCPP) program. EXPENDITURES: 3. Continue the Neighborhood Officer program. Salaries/Wages/Benefits $ 2,103,490 $ 2,210,240 5.07% 4. Utilize monies obtained from DWI forfeitures to Materials, Supplies & Services 257,215 256,059 -0.45% fund special DWI enforcement projects. $ 2,360,705 $ 2,466,299 4.47% 5. Provide leadership training for senior officers for advancement opportunities within the NET TAX AND GENERAL department. REVENUE SUPPORTED $2,121,305 $2,166,099 2.11% 6. Partner with surrounding & other agencies (Henn Co Probation, Three Rivers, etc) on joint initiatives. PERSONNEL: Number of FTE positions20.522.7 PROGRAM: Police – SWAT Team PROGRAM SUMMARY The Special Weapons and Tactics (SWAT) team of the Hopkins Police Department is part of a 5 city tactical consortium that provides tactical and rescue operations in situations posing a high-risk to civilians and/or department personnel. The members of the consortium train together and provide support during high-risk events. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: 1. Continue to maintain a strong working relationship with other consortium members. FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits54,276$ 38,649$ -28.79% Materials, Supplies & Services19,022$ 20,257$ 6.49% NET TAX AND GENERAL REVENUE SUPPORTED73,298$ 58,906$ -19.63% PERSONNEL: Number of FTE positions0.550.45 2012 BUDGET 84 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, surveillance details, extra patrol and other duties as necessary. FY 2011FY 2012 MAJOR OBJECTIVES TO BE ACCOMPLISHED ApprovedApprovedPercent IN 2012: BudgetBudgetChange 1. Engage Reserve members in the Joint EXPENDITURES: Community Police Partnership (JCPP) program. Salaries/Wages/Benefits25,235$ 16,050$ -36.40% 2. Continue to utilize trained Reserve personnel to Materials, Supplies & Services8,385$ 8,417$ 0.38% respond to medical emergencies and other calls for service. NET TAX AND GENERAL 3. Conduct recruitment processes to achieve 25 REVENUE SUPPORTED33,620$ 24,467$ -27.22% members. 4. Continue leadership training for Reserve PERSONNEL: Command Staff. Number of FTE positions0.20.1 PROGRAM: Police – Investigations PROGRAM SUMMARY The Investigations Division of the Police Department conducts follow-up investigations on criminal activity that has occurred in Hopkins. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: 1. Continue liaison with the County Attorney’s office. 2. Provide ongoing training opportunities for the investigation and prosecution techniques regarding identity theft. 3. Continue rotating patrol officers into the investigator position. 4. Conduct tobacco and liquor compliance FY 2011FY 2012 checks. 5. Coordinate anti-graffiti efforts with ApprovedApprovedPercent neighboring communities. BudgetBudgetChange REVENUES: Licenses $ 75,700 $ 76,000 0.40% EXPENDITURES: Salaries/Wages/Benefits $ 424,336 $ 354,429 -16.47% Materials, Supplies & Services 74,812 75,928 1.49% $ 499,148 $ 430,357 -13.78% NET TAX AND GENERAL REVENUE SUPPORTED $ 423,448 $ 354,357 -16.32% PERSONNEL: Number of FTE positions3.83.8 2012 BUDGET 85 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Police – Metro Drug Task Force PROGRAM SUMMARY The Southwest Hennepin Metro 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. The Hopkins Police Department provides one investigator to this unit. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: 1. Continue to identify and investigate illegal drug activity. FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Charges for service $ 20,000 $ 15,000 -25.00% EXPENDITURES: Salaries/Wages/Benefits $ 104,560 $ 104,102 -0.44% Materials, Supplies & Services 1,177 1,190 1.10% $ 105,737 $ 105,292 -0.42% NET TAX AND GENERAL REVENUE SUPPORTED $ 85,737 $ 90,292 5.31% PERSONNEL: Number of FTE positions0.950.95 PROGRAM: Police – Pawn Shop Management PROGRAM SUMMARY The Pawn Shop Management program of the FY 2011FY 2012 Police Department maintains computerized records ApprovedApprovedPercent of pawnshop transactions as required by City BudgetBudgetChange ordinance, checks transactions for the presence of REVENUES: reported stolen property and assists other Licenses $ 5,000 $ 5,000 0.00% departments in recovering stolen property located Charges for service 8,500 10,000 17.65% in Hopkins pawnshops. $ 13,500 $ 15,000 11.11% EXPENDITURES: MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: Salaries/Wages/Benefits $ 3,312 $ 3,355 1.30% 1. Conduct at least one random inventory and Materials, Supplies & Services 124 138 11.29% compliance check. $ 3,436 $ 3,493 1.66% NET TAX AND GENERAL REVENUE SUPPORTED $ (10,064) $ (11,507)14.34% PERSONNEL: Number of FTE positions0.050.05 2012 BUDGET 86 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Police – Outreach/Police Services Liaison 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 FY 2011FY 2012 Liaison administers the alarm program, nuisance ApprovedApprovedPercent property program, review and revisions of various BudgetBudgetChange ordinances and grant research, application and REVENUES: administration and is the staff liaison to SCIP, Licenses $ 5,000 $ 5,000 0.00% One Voice, HBCA, Rental Community Donations 500 500 0.00% Engagement Program and other committees. $ 5,500 $ 5,500 0.00% MAJOR OBJECTIVES TO BE ACCOMPLISHED EXPENDITURES: IN 2012: Salaries/Wages/Benefits $ 68,345 $ 71,327 4.36% 1. Increase participation in Crime Free Multi- Materials, Supplies & Services 12,459 12,709 2.01% Housing program & Neighborhood Watch. $ 80,804 $ 84,036 4.00% 2. Partner with businesses and neighborhoods to reduce crime. NET TAX AND GENERAL 3. Coordinate information sharing with REVENUE SUPPORTED $ 75,304 $ 78,536 4.29% Police/city staff regarding graffiti, nuisance property and other quality of life issues. PERSONNEL: 4. Coordinate efforts with Joint Community Police Partnership (JCPP) Community Number of FTE positions0.850.85 Liaison. PROGRAM: Police – Dispatch PROGRAM SUMMARY The Hopkins Police Department Public Safety Communications Center receives, processes and dispatches calls for service for Police, Fire, EMS and Public Works; operates an E-911 Public Safety Answering Point (PSAP) that handles enquiries from the public and other agencies, receives, enters, modifies and queries information from a variety of information systems including FY 2011FY 2012 computer-aided dispatch (CAD), state, national and local databases, and operates a state of the ApprovedApprovedPercent art 800 MHz digital radio system. BudgetBudgetChange REVENUES: MAJOR OBJECTIVES TO BE Intergovernmental revenue $ 24,860 $ 24,860 0.00% ACCOMPLISHED IN 2012: 1. Identify relevant job related training for EXPENDITURES: dispatchers. Salaries/Wages/Benefits $ 461,910 $ 473,752 2.56% 2. Upgrade analog enhanced 911phone Materials, Supplies & Services 64,872 79,393 22.38% system to digital system. $ 526,782 $ 553,145 5.00% NET TAX AND GENERAL REVENUE SUPPORTED $ 501,922 $ 528,285 5.25% PERSONNEL: Number of FTE positions66 2012 BUDGET 87 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 in-person, mail and telephone requests for service, documents or records; enters, modifies, queries and manages a variety of databases; processes information and generates state and federal mandated reports, transcribes and processes reports and correspondence and maintains records in accordance with state and local guidelines. Also assists in the management of residential and commercial alarms. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: 1. Annual records retention purge. 2. Process Suspense File requests. 3. Provide weekly statistical crime analysis. FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits247,307$ 244,128$ -1.29% Materials, Supplies & Services8,253$ 8,228$ -0.30% NET TAX AND GENERAL REVENUE SUPPORTED255,560$ 252,356$ -1.25% PERSONNEL: Number of FTE positions3.953.95 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 2012: 1. Work to integrate the police department network with the city’s network. FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Materials, Supplies & Services64,862$ 65,182$ 0.49% NET TAX AND GENERAL REVENUE SUPPORTED64,862$ 65,182$ 0.49% PERSONNEL: Number of FTE positions00 2012 BUDGET 88 FIRE BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Licenses & Permits$2,270$2,390$860$5,300$3,500-33.96% State Aid74,98968,13265,03985,00070,000-17.65% Federal Grant - -3,675 - - County Grant - - - - - Administrative Citations - - - - - Current Service73,5978,1374,4076,00070,0001066.67% Donations1,650 -8,500 - - Miscellaneous832,2491,740 - - 152,58980,90884,22196,300143,50049.01% Expenditures Salaries, Wages and Benefits Salaries and Wages368,449355,108356,070337,416340,9311.04% Fringe Benefits148,047312,848151,666176,620161,106-8.78% Materials, Supplies and Services Professional & Technical Services11,59711,61811,57310,32719,90092.70% Utilities and Maintenance55,60756,43459,35949,05054,00010.09% Operations51,82153,04061,07367,57265,965-2.38% City Support Services73,24074,123105,101105,908105,707-0.19% Supplies and Materials103,037100,21992,84791,36596,3755.48% Capital Outlay Equipment - - - - - Total Expenditures811,798963,389837,689838,258843,9840.68% Indirectly Funded Amount659,209882,481753,468741,958700,484-5.59% The Fire Department is made up of two programs. They are Fire Prevention/Suppression and Emergency Preparedness. 2012 BUDGET 89 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 FY 2011FY 2012 reports with the State Fire Marshall on ApprovedApprovedPercent department activity, property loss or death due to BudgetBudgetChange fire emergencies. REVENUES: MAJOR OBJECTIVES TO BE ACCOMPLISHED Licenses $ 5,300 $ 3,500 -33.96% IN 2012: Intergovernmental Revenue 85,000 70,000 -17.65% 1. Charges for Service 6,200 70,000 1029.03% Develop Long Term Strategic and Marketing plan $ 96,500 $ 143,500 48.70% . for the department EXPENDITURES: 2. Continue Home Fire Prevention Inspection in Salaries/Wages/Benefits $ 514,036 $ 502,037 -2.33% accordance with the fire prevention grant. Materials, Supplies & Services 319,551 349,522 9.38% 3. Establish Cooking Hood Cleaning and $ 833,587 $ 851,559 2.16% Inspection Program 4. Work with Police Department and School NET TAX AND GENERAL District in establishing a summer safety camp REVENUE SUPPORTED $ 737,087 $ 708,059 -3.94% PERSONNEL: Number of FTE positions1.222.7 Volunteer Firefighters3535 PROGRAM: Fire – Emergency Preparedness PROGRAM SUMMARY The Emergency Preparedness program provides the community with preparedness, mitigation, response, and recovery from natural and technological disasters including acts of terrorism. The emergency preparedness program is designed to provide training for all employees through partnerships with the Federal Emergency Management Agency, Minnesota Division of Emergency Management, and Hennepin County Emergency Preparedness. Training is accomplished through mock drills and simulated emergency situations, along with specialized training. FY 2011FY 2012 MAJOR OBJECTIVES TO BE ApprovedApprovedPercent ACCOMPLISHED IN 2012: . BudgetBudgetChange 1. Prepare Table Top for city staff and EXPENDITURES: Police and Fire Command staff Materials, Supplies & Services4,671$ 3,865$ -17.26% 2. Establish forms for EOC and equip EOC for operations. NET TAX AND GENERAL REVENUE SUPPORTED4,671$ 3,865$ -17.26% PERSONNEL: Number of FTE positions00 2012 BUDGET 90 PUBLIC WORKS BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Licenses and Permits$10,549$13,460$14,980$9,490$9,415-0.79% Intergovernmental120,300121,711135,049120,000125,0004.17% Charges for Services2,7763,7036,9942,2502,75022.22% Other Miscellaneous3,5481,8724,7332,1004,00090.48% Sales of Fixed Assets2,074 - - - - Expenditures Salaries, Wages and Benefits Salaries and Wages1,165,552 1,144,280 1,213,645 1,146,823 1,158,004 0.97% Fringe Benefits426,650 470,387 480,473 460,893 461,461 0.12% Materials, Supplies and Services Professional & Technical Services191,722 164,056 221,980 204,300 214,300 4.89% Utilities and Maintenance383,362 361,417 428,277 414,800 420,500 1.37% Operations(194) (6,044) (3,224) 13,685 10,280 -24.88% City Support Services154,943 158,498 156,584 158,599 165,132 4.12% Supplies and Materials270,449 267,596 321,813 313,300 299,000 -4.56% Capital Outla y Buildings & Improvements- - - - - Equipment- 2,169 7,277 - - Total Expenditures2,592,483 2,562,361 2,826,826 2,712,400 2,728,677 0.60% Reimbursed Expenditures(486,511) (528,492) (537,760) (538,000) (538,000) Net Total Expenditures2,105,972 2,033,869 2,289,066 2,174,400 2,190,677 0.75% Indirectly Funded Amount1,966,724 1,893,123 2,127,310 2,040,560 2,049,512 0.44% The Public Works Department is made up of eight programs. They are Buildings, Equipment Services, Administration, Engineering, Streets, Snow Removal, Parks and Tree Service. 2012 BUDGET 91 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 covers the entire public works complex. The buildings and equipment are maintained by in house maintenance personnel and the custodial duties by a contract cleaner. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN FY 2011FY 2012 2012: ApprovedApprovedPercent 1. Maintain PW building to assure a safe and BudgetBudgetChange comfortable environment for all City employees at EXPENDITURES: the lowest cost to the taxpayer. Salaries/Wages/Benefits $ 34,563 $ 35,845 3.71% Materials, Supplies & Services 69,129 66,894 -3.23% Reimbursed Expenditures (70,000) (70,000)0.00% $ 33,692 $ 32,739 NET TAX AND GENERAL REVENUE SUPPORTED $ 33,692 $ 32,739 -2.83% PERSONNEL: Number of FTE positions0.40.4 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 2012: 1. Continue aggressive maintenance and repair FY 2011FY 2012 of all city equipment. ApprovedApprovedPercent 2. Purchase of Two 1 Ton Plow Trucks, One BudgetBudgetChange Single Axle Dump with snow and ice REVENUES: equipment, Front end Loader, Hot mix trailer, Charges for service $ 150 $ 150 0.00% Overseeder and Aerial Bucket Truck. EXPENDITURES: Salaries/Wages/Benefits $ 200,447 $ 211,693 5.61% Materials, Supplies & Services 20,999 17,536 -16.49% Reimbursed Expenditures (143,000) (143,000)0.00% $ 78,446 $ 86,229 9.92% NET TAX AND GENERAL REVENUE SUPPORTED $ 78,296 $ 86,079 9.94% PERSONNEL: Number of FTE positions2.352.35 2012 BUDGET 92 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 FY 2011FY 2012 IN 2012: ApprovedApprovedPercent 1. Southwest Transitway (LRT) planning: protect BudgetBudgetChange city interests and position Hopkins for Federal EXPENDITURES: funding to mitigate LRT station impacts Salaries/Wages/Benefits $ 158,905 $ 161,865 1.86% 2. Continue to analyze and respond to Materials, Supplies & Services 15,573 13,577 -12.82% opportunities to save energy and be more Reimbursed Expenditures (148,000) (148,000)0.00% environmentally conscious while improving $ 26,478 $ 27,442 service quality and efficiency. NET TAX AND GENERAL 3. Complete aggressive 2012 program of street, utility, municipal building and park system REVENUE SUPPORTED $ 26,478 $ 27,442 3.64% improvements. 4. Complete Cottageville Park master planning PERSONNEL: work and design of associated storm water Number of FTE positions1.351.35 drainage improvements PROGRAM: Public Works – Engineering PROGRAM SUMMARY The Engineering Division of the Public Works FY 2011FY 2012 Department provides engineering services for the ApprovedApprovedPercent City. The Engineering Division provides drafting, BudgetBudgetChange surveying, layout, design and other engineering REVENUES: services for the City, as well as maintenance and Licenses $ 8,000 $ 8,000 0.00% updating of base maps, as-builts, and other Charges for Service 100 100 0.00% miscellaneous map updating projects. This division also acts as the primary liaison to consultants $ 8,100 $ 8,100 0.00% involved with construction projects. EXPENDITURES: Salaries/Wages/Benefits $ 176,404 $ 167,943 -4.80% MAJOR OBJECTIVES TO BE ACCOMPLISHED Materials, Supplies & Services $ 26,398 $ 29,324 IN 2012: Reimbursed Expenditures (65,000) (65,000)0.00% 1. Continue to develop utility maps in digitized $ 137,802 $ 132,267 -4.02% format and apply to GIS program. 2. Continue field survey and inventory of utility NET TAX AND GENERAL system for GIS application. REVENUE SUPPORTED $ 129,702 $ 124,167 3. Complete Well No. 1 upgrades. -4.27% 4. Oversee implementation of the City’s Capital Improvement Plan. PERSONNEL: Number of FTE positions1.771.6 2012 BUDGET 93 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 2012: 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. Mall 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 2011FY 2012 ApprovedApprovedPercent BudgetChange Budget REVENUES: Licenses $ 1,490 $ 1,415 -5.03% Intergovernmental Revenue 120,000 125,000 4.17% Charges for Service 500 500 0.00% $ 121,990 $ 126,915 4.04% EXPENDITURES: Salaries/Wages/Benefits $ 365,815 $ 361,011 -1.31% Materials, Supplies & Services $ 599,997 $ 610,194 Reimbursed Expenditures (112,000) (112,000)0.00% $ 853,812 $ 859,205 0.63% NET TAX AND GENERAL REVENUE SUPPORTED $ 731,822 $ 732,290 0.06% PERSONNEL: Number of FTE positions4.654.61 2012 BUDGET 94 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Public Works – Snow & Ice Removal PROGRAM SUMMARY The Snow & Ice Removal program of the Public FY 2011FY 2012 Works Department provides snow and ice control ApprovedApprovedPercent services of 55 miles of streets, 33 miles of alleys BudgetBudgetChange and 9 parking lots (including parking ramp) and REVENUES: economic development properties within the city for Charges for service $ - $ 500 #DIV/0! convenient day-to-day use, and to provide safe travel and parking conditions. EXPENDITURES: Salaries/Wages/Benefits $ 120,716 $ 119,918 -0.66% MAJOR OBJECTIVES TO BE ACCOMPLISHED IN Materials, Supplies & Services 84,899 77,632 -8.56% 2012; 1. Complete plowing/sanding operations of all city $ 205,615 $ 197,550 -3.92% streets, alleys, parking lots and parking ramp with 10 hours. NET TAX AND GENERAL 2. Complete snow removal operations in REVENUE SUPPORTED $ 205,615 $ 197,050 -4.17% downtown areas/ramp/parking lots in efficient manner to meet parking/traffic flow demands. PERSONNEL: 3. Increase snow/ice maintenance activities on residential streets.Number of FTE positions1.281.23 4. Utilize snow emergency policy to maximize safety and snow removal efforts, while minimizing resident conflicts. 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, 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. FY 2011FY 2012 Maintenance of picnic facilities and trails, trash and ApprovedApprovedPercent rubbish removal from parks is also included. Open BudgetBudgetChange skating and hockey areas are included. Open skating and hockey areas are provided from December REVENUES: through February for outdoor recreational purposes. Charges for service $ 1,500 $ 1,500 0.00% Miscellaneous 2,100 4,000 90.48% MAJOR OBJECTIVES TO BE ACCOMPLISHED IN $ 3,600 $ 5,500 52.78% 2012: EXPENDITURES: 1. Continue grounds maintenance of all parks Salaries/Wages/Benefits $ 424,533 $ 434,634 2.38% including Shady Oak Beach, plus City Hall, 4 well Materials, Supplies & Services 203,568 217,831 7.01% houses, Public Works garage and all other City $ 628,101 $ 652,465 3.88% owned right-of-way. 2. Provide open skating and hockey at the following parks: Valley, Harley Hopkins, Oakes, Central, NET TAX AND GENERAL Interlachen, open skating only at Hilltop and REVENUE SUPPORTED $ 624,501 $ 646,965 3.60% Burnes. PERSONNEL: Number of FTE positions5.095.09 2012 BUDGET 95 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Public Works – Tree Maintenance & 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 2012: 1. Trim 12% of trees on city boulevards. 2. Replace trees on city property that were lost in 2012 3. Remove all diseased, dead, dying trees on public property. 4. Create 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 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits126,333$ 126,556$ 0.18% Materials, Supplies & Services84,121$ 84,224$ 0.12% $ 210,454 $ 210,780 NET TAX AND GENERAL REVENUE SUPPORTED $ 210,454 $ 210,780 0.15% PERSONNEL: Number of FTE positions1.861.86 2012 BUDGET 96 RECREATION BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Miscellaneous$ -$ -$ -$ -$ - Expenditures Salaries, Wages and Benefits Salaries and Wages35,67334,95032,74944,97545,2500.61% Fringe Benefits5,1594,7464,3515,3905,6013.91% Materials, Supplies and Services Operations161,118153,057150,736148,656153,9473.56% Supplies and Materials159152100700300-57.14% Capital Outlay Improvements Other than Bldg - - - - - Transfer Out - - - - - Total Expenditures202,108192,905187,935199,721205,0982.69% Indirectly Funded Amount202,108192,905187,935199,721205,0982.69% The Recreation Department is made up of five main porgrams. They are Playground, Ice Rink, Park Services, Joint Recreation and Skate Park. 2012 BUDGET 97 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 2012: 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 FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits20,198$ 21,034$ 4.14% NET TAX AND GENERAL REVENUE SUPPORTED20,198$ 21,034$ 4.14% PERSONNEL: Number of Part-time positions2222 PROGRAM: Recreation – Ice Rink Program PROGRAM SUMMARY Supervised outdoor ice rinks are provided at 14 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 2012: 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 FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits12,284$ 12,192$ -0.75% NET TAX AND GENERAL REVENUE SUPPORTED12,284$ 12,192$ -0.75% PERSONNEL: Number of Part-time positions3030 2012 BUDGET 98 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 both Burnes 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 2012: 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 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits12,518$ 12,810$ 2.33% NET TAX AND GENERAL REVENUE SUPPORTED12,518$ 12,810$ 2.33% PERSONNEL: Number of Part-time positions44 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 40,000 people each summer. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: 1. Implementation of a new “Buddy” system for children with special needs. 2. Expand summer “junior leader” program for children with special needs. 3. To expand non-school day program offerings. FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Materials, Supplies & Services145,000$ 147,000$ 1.38% NET TAX AND GENERAL REVENUE SUPPORTED145,000$ 147,000$1.38% PERSONNEL: Number of Part-time positions9090 2012 BUDGET 99 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Recreation – Overpass Skate Park PROGRAM SUMMARY The Overpass program provides skate boarders, bikers, and inline skate athletes, 10 years of age or older, with a safe, fun, and challenging place to gather and practice their sport. The Overpass creates a healthy recreational opportunity primarily for youth, and young adults. The Overpass is a seasonal operation, and one of only a few tier II aggressive skate parks in the state of Minnesota. This unique park attracts a regional population in addition to serving the residents of Hopkins. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: rd 1. To operate the park under a contractual operating agreement with 3 Lair Skate Parks. 2. To operate the park with favorable fees for resident and community partners. 3. To increase the number of Hopkins resident users and partner community (Minnetonka and St. Louis Park) resident users. FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits5,365$ 4,816$ -10.23% Materials, Supplies & Services2,356$ 2,247$ -4.63% $ 7,721 $ 7,063 NET TAX AND GENERAL REVENUE SUPPORTED $ 7,721 $ 7,063 -8.52% PERSONNEL: Number of FTE positions0.050.05 2012 BUDGET 100 ACTIVITY CENTER BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Charges for Services$64,969$53,349$82,571$50,300$50,300 Contributions5,7229,7776,36910,70010,700 Total Revenues70,69163,12788,93961,00061,000 Expenditures Salaries, Wages and Benefits Salaries and Wages139,327170,865166,337175,013169,477-3.16% Fringe Benefits35,49753,27454,41558,10557,065-1.79% Materials, Supplies and Services Professional & Technical Services29,22919,09945,93620,40021,5005.39% Utilities and Maintenance37,15429,89934,72235,70034,200-4.20% Operations11,0847,8707,00612,10010,400-14.05% City Support Services7,66211,79311,8769,5538,923-6.59% Supplies and Materials16,74016,10714,98619,20018,800-2.08% Capital Outlay Buildings & Structures - - - - - Office Furniture and Equipment - - - - - Total Expenditures276,693308,909335,278330,071320,365-2.94% Indirectly Funded Amount206,002245,782246,339269,071259,365-3.61% 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. 2012 BUDGET 101 CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Activity Center – Programming FY 2011FY 2012 PROGRAM SUMMARY ApprovedApprovedPercent The Activity Center Community Use program of the BudgetBudgetChange Public Works Department provides a facility for residents to use for active or passive activities. Staff REVENUES: coordinates all users of the Activity Center. The Rent $ 26,000 $ 26,000 0.00% Hopkins Activity Center also implements and Charges for Service 23,500 23,500 0.00% coordinates the Seasoned Adult Program, which is Miscellaneous 13,500 13,500 0.00% geared towards the over 50 Hopkins population. $ 63,000 $ 63,000 0.00% EXPENDITURES: MAJOR OBJECTIVES TO BE ACCOMPLISHED IN Salaries/Wages/Benefits $ 215,824 $ 208,608 -3.34% 2012: Materials, Supplies & Services 58,184 56,306 -3.23% 1. Market the Hopkins Activity Center to the over 50 $ 274,008 $ 264,914 -3.32% Hopkins population. 2. Develop partnerships with businesses, civic organizations, school district and faith community. NET TAX AND GENERAL 3. Work with the Hopkins festivals and special events REVENUE SUPPORTED $211,008 $201,914 -4.31% committees to promote events for the over 50 population. PERSONNEL: Number of FTE positions3.13 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 2012: 1. Upgrade existing Low Pressure Steam Heating and DX cooling system to Low Pressure Hot Water with new HVAC fan units, Replace existing Gymnasium AC only units to Heat and AC units. Capital Project of $375 K FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits17,294$ 17,934$ 3.70% Materials, Supplies & Services42,169$ 40,917$ -2.97% $ 59,463 $ 58,851 NET TAX AND GENERAL REVENUE SUPPORTED $ 59,463 $ 58,851 -1.03% PERSONNEL: Number of FTE positions0.20.2 2012 BUDGET 102 CITY OF HOPKINS - 2010 BUDGET PLANNING BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Permits and Licenses$ 840$ 1,750$ 1,370$ 1,000$ 1,000 Charges for Services6271,9004,0501,5001,500 Total Revenues1,4673,6505,4202,5002,500 Expenditures Salaries, Wages and Benefits Salaries and Wages77,99190,29792,76994,58295,5981.07% Fringe Benefits25,90933,06833,58933,82234,4501.86% Materials, Supplies and Services Professional & Technical Services1401111132,2502,250 Utilities and Maintenance25024924920032060.00% Operations3,8823,2813,22110,70010,700 City Support Services996826787828719-13.16% Supplies and Materials3,1213,1381,6062,8002,800 Total Expenditures112,289130,970132,335145,182146,8371.14% Reimbursed Expenditures(20,000) (20,000) (20,000) (20,000) (20,000) Net Total Expenditures92,289110,970112,335125,182126,8371.32% Indirectly Funded Amount90,822107,320106,915122,682124,3371.35% The Planning and Economic Development Department is made up of thee programs. They are Zoning Activities & Enforcement, Sign & Fence Permits and Miscellaneous Planning. 2012 BUDGET 103 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 2012: 1. Begin process of re-zoning properties 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 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Licenses & Permits $ 2,500 $ 2,500 0.00% EXPENDITURES: Salaries/Wages/Benefits $ 128,404 $ 130,048 1.28% Materials, Supplies & Services 16,778 16,789 0.07% Reimbursed Expenditures (20,000) (20,000)0.00% $ 125,182 $ 126,837 NET TAX AND GENERAL REVENUE SUPPORTED $122,682 $124,337 1.35% PERSONNEL: Number of FTE positions1.351.35 2012 BUDGET 104 CITY OF HOPKINS - 2010 BUDGET COMMUNITY DEVELOPMENT BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Miscellaneous$- $- $- $- $85,999 Expenditures Salaries, Wages and Benefits Salaries and Wages56,832 56,018 56,777 57,219 58,762 2.70% Fringe Benefits19,997 19,41119,123 20,92921,480 2.63% Materials, Supplies and Services Professional & Technical Services928 708 613 560 600 7.14% Operations211 175 289 3,200 3,075 -3.91% City Support Services1,386 1,006 1,086 1,210 1,182 -2.31% Supplies and Materials971 499 520 1,150 900 -21.74% Total Expenditures80,325 77,817 78,408 84,268 85,999 2.05% Indirectly Funded Amount80,325 77,817 78,408 84,268 - -100.00% The Community Development budget accounts for expendiutres used to promote and enhance the community of Hopkins. 2012 BUDGET 105 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 support of housing programs such as 1 Time Home Buyer Mortgage Program, Image Awards, Housing Improvement Areas and Livable Communities Program. Assist in implementation of the Engaging Raspberry Renters project. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: 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 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Miscellaneous $ 84,268 $ 85,999 2.05% EXPENDITURES: Salaries/Wages/Benefits $ 78,148 $ 80,242 2.68% Materials, Supplies & Services 6,120 5,757 -5.93% $ 84,268 $ 85,999 NET TAX AND GENERAL REVENUE SUPPORTED $ - $ - #DIV/0! PERSONNEL: Number of FTE positions0.850.85 2012 BUDGET 106 STATE CHEMICAL ASSESSMENT BUDGET Revenues and Revenues and Expenditures Special Revenue Fund 203 Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Intergovernmental $ 96,568 $ 177,355 $ 106,285 $ 45,000 $ 45,000 Refunds & Reimbursements4,203 123 14,482 - - Total Revenues100,772 177,478 120,767 45,000 45,000 Expenditures Salaries, Wages and Benefits Salaries and Wages51,767 48,049 39,512 37,200 37,200 Materials, Supplies and Services Professional & Technical Services2,600 2,618 3,183 2,000 2,000 Utilities and Maintenance3,050 3,111 6,173 - - Operations26,985 11,370 24,277 - - City Support Services4,085 3,936 3,915 3,946 4,024 1.98% Supplies and Materials67,924 41,161 30,588 1,854 1,776 -4.21% Capital Outlay Computers17,973 3,237 - - - Other Equipment- 17,513 - - - Total Expenditures174,385 130,996 107,649 45,000 45,000 Excess (deficiency) of revenue over expenditures(73,613) 46,482 13,118 (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. 2012 BUDGET 107 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 $45,000 per year for the training of personnel, maintenance of equipment, and purchase of supplies and equipment. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012 1. To bring all Team Members from a Technician Level to the highest level attainable, Specialist. 2. To restructure and redefine chemical assessment team to meet the needs of the state, city and team members needs. FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Intergovernmental Revenue $ 45,000 $ 45,000 0.00% EXPENDITURES: Salaries/Wages/Benefits $ 37,200 $ 37,200 0.00% Materials, Supplies & Services 7,800 7,800 0.00% $ 45,000 $ 45,000 NET TAX AND GENERAL REVENUE SUPPORTED $ - $ - -- PERSONNEL: Number of FTE positions00 2012 BUDGET 108 ECONOMIC AND COMMUNITY DEVELOPMENT BUDGET Revenues and Expenditures Special Revenue Fund 204 Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Property Taxes$48,254 $72,244 $122,754$125,000$175,000 42.56% Intergovernmental5,000 6,792 6,800 - - Interest earnings148 3,654 575 500 - -100.00% Charges for services14,912 32,934 18,025 12,000 1,500 -91.68% Miscellaneous13,602 26,355 18,093 11,000 11,000 -39.20% Total Revenues81,916 141,979 166,247 148,500 187,500 Expenditures Salaries, Wages and Benefits Salaries and Wages118,879 115,758120,444118,207120,494 1.93% Fringe Benefits47,455 46,565 48,955 49,047 48,525 -1.06% Materials, Supplies and Services Professional & Technical Services15,984 38,355 26,624 44,600 39,350 -11.77% Utilities and Maintenance307 275 799 300 650 116.67% Operations15,411 14,619 11,242 6,400 6,400 City Support Services29,184 30,537 29,505 29,555 30,534 3.31% Supplies and Materials991 1,224 1,424 1,600 1,600 Capital Outla y Land Acquisition697,098 - - 30,000 - -100.00% Other Improvements- - - - - Total Expenditures925,310 247,331238,992279,709247,553 -11.50% Reimbursed Expenditures(37,500) (40,000) (40,000) (40,000) (40,000) Net Total Expenditures887,810 207,331198,992239,709207,553 -13.41% Operating Transfer In (Out) (61,000)(61,000) (61,000) (61,000) (61,000) Excess (deficiency) of Revenues ove r Expenditures(866,894) (126,352)(93,745) (152,209)(81,053) -46.75% The Economic Development Fund was established to fund development and redeveloment opportunities. Sources are derived from loans, grants and tax levy. 2012 BUDGET 109 CITY OF HOPKINS FUND 204 – ECONOMIC DEVELOPMENT FUND PROGRAM: Project Development and Coordination PROGRAM SUMMARY FY 2011FY 2012 Undertake development activities not directly funded by specific project budgets. Meet with developers, property ApprovedApprovedPercent owners and business tenants to review possible BudgetBudgetChange redevelopment/development activities. Recruit desirable REVENUES: businesses to locate in Hopkins. Explore developer Property Taxes $ 125,000 $ 175,000 40.00% incentives aimed at promoting sustainability and active Interest 10,500 - -100.00% living. Miscellaneous 11,000 11,000 0.00% $ 146,500 $ 186,000 26.96% MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: EXPENDITURES: 1. Monitor income/expenditure of Economic Salaries/Wages/Benefits $ 72,350 $ 72,317 -0.05% Development fund. Materials, Supplies & Services $ 27,644 $ 28,340 2. Prepare program budget. Transfer Out 61,000 61,000 0.00% 3. Facilitate redevelopment projects as directed by the $ 160,994 $ 161,657 0.41% City Council. NET TAX AND GENERAL REVENUE SUPPORTED $ 14,494 $(24,343)-267.95% PERSONNEL: Number of FTE positions0.650.65 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 2012: 1. Ensure districts are meeting legal and statutory requirements. 2. Continue to monitor all districts. 3. Coordinate development activities within districts. FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits $ 51,924 $ 52,978 2.03% Materials, Supplies & Services 13,986 14,038 0.37% Reimbursed Expenditures (40,000) (40,000)0.00% $ 25,910 $ 27,016 NET TAX AND GENERAL REVENUE SUPPORTED $ 25,910 $ 27,016 4.27% PERSONNEL: Number of FTE positions0.50.5 2012 BUDGET 110 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. FY 2011FY 2012 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: ApprovedApprovedPercent 1. Work towards the Council-approved goals and BudgetBudgetChange objectives. REVENUES: 2. Continue liaison role for City between both Interest $ 2,000 $ 1,500 -25.00% HBCA and Twin West Chamber. Miscellaneous 100 1,000 900.00% 3. Work with Marketing Task Force to implement $ 2,100 $ 2,500 19.05% year four of the Think Hopkins marketing plan. EXPENDITURES: 4. Facilitate year two of Hopkins Artstreet. Salaries/Wages/Benefits $ 42,980 $ 43,724 1.73% Materials, Supplies & Services 23,325 23,656 1.42% $ 66,305 $ 67,380 1.62% NET TAX AND GENERAL REVENUE SUPPORTED $ 64,205 $ 64,880 1.05% PERSONNEL: Number of FTE positions0.450.45 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 2012: 1. Facilitate a redevelopment project on the former Park Nicollet clinic site. th 2. Begin the design process for the 8 Avenue FY 2011FY 2012 streetscape project. ApprovedApprovedPercent 3. Continue to explore the redevelopment/reuse of BudgetBudgetChange the Johnson Building property. EXPENDITURES: Materials, Supplies & Services 17,500 12,500 -28.57% Land Acquisition 30,000 - -100.00% $ 47,500 $ 12,500 NET TAX AND GENERAL REVENUE SUPPORTED $ 47,500 $ 12,500 -73.68% PERSONNEL: Number of FTE positions00 2012 BUDGET 111 REAL ESTATE PURCHASES AND SALES BUDGET Revenues and Expenditures Special Revenue Fund 205 Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Miscellaneous$3,700$3,700$663$3,700$3,700 Interest1,6659253,7002,1002,100 Total Revenues5,3654,6254,3635,8005,800 Expenditures Materials, Supplies and Services Professional & Technical Services1,350 - - - - Capital Outlay Land Purchases - - - - - Total Expenditures1,350 - - - - Net Revenues$4,015$4,625$4,363$5,800$5,800 The Rreal Estate Purchases and Sales Fund records acquisitions and dsposition of property with the proceeds used to improve city buildings. 2012 BUDGET 112 CITY OF HOPKINS FUND 205 – REAL ESTATE PURCHASES & SALES FUND PROGRAM: Real Estate Purchases & Sales PROGRAM SUMMARY Undertake miscellaneous real estate activities for the city. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: 1. Continue to promote and advertise the sale of surplus lots to achieve the maximum sale price. FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Interest $ 2,100 $ 2,100 0.00% License & Permits 3,700 3,700 0.00% $ 5,800 $ 5,800 0.00% EXPENDITURES: Materials, Supplies & Services $ - $ - #DIV/0! NET TAX AND GENERAL REVENUE SUPPORTED $ (5,800) $ (5,800)0.00% PERSONNEL: Number of FTE positions00 2012 BUDGET 113 E-911 SERVICE FEE FUND BUDGET Revenues and Expenditures Special Revenue Fund 206 Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Tax Increment$- $- $24,860 $- $24,860 Interest- - 50 - 100 Expenditures Materials, Supplies and Services Transfer Out- - 24,860 - 24,860 Total Expenditures- - 24,860 - 24,860 Excess (deficiency) of Revenues over Expenditures- - 50 - 100 The E-911 Service Fee fund is established pursuant to state statute to account for state revenues for the E-911 program. Funds may be used for E-911 equipment and/or operations. 2012 BUDGET 114 CITY OF HOPKINS FUND 206 – E-911 SERVICE FEE FUND PROGRAM: E-911 Service Fee PROGRAM SUMMARY To account for funds received from the State of Minnesota for the operation and maintenance of the E-911 telephone system. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: 1. Upgrade existing analog E-911 telephone system to next generation digital technology. 2. Complete annual report on expenditures to State of Minnesota. FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Intergovernmental Revenue $ - $ 24,860 -- Interest - 100 -- $ - $ 24,960 -- EXPENDITURES: Transfers Out $ - $ 24,860 -- NET TAX AND GENERAL REVENUE SUPPORTED $ - $ (100)-- PERSONNEL: Number of FTE positions00 2012 BUDGET 115 TIF DISTRICT 1-2 BUDGET Revenues and Expenditures Special Revenue Fund 211 Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Tax Increment$52,174 $58,259 $52,736 $55,000 $55,000 Interest3,133 1,642 562 1,500 500 -66.67% Transfers In- - - - - Expenditures Materials, Supplies and Services Professional & Technical Services813 840 1,254 1,000 1,000 Operations775 25,266 19,086 2,000 2,000 Capital Outlay TIF projects75,000 75,000 75,000 75,000 - -100.00% Total Expenditures76,588 101,106 95,340 78,000 3,000 -96.15% Transfers out for debt- - - - - Total Expenditures76,588 101,106 95,340 78,000 3,000 -96.15% Excess (deficiency) of Revenues over Expenditures(21,281) (41,204) (42,042) (21,500) 52,500 -344.19% 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. 2012 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 11 and 12 Avenues. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: 1. Assist in preparation of program budget and other required documentation. 2. Prepare required State Auditor Annual Reports. FY 2011FY 2012 ApprovedApprovedPercent BudgetChange Budget REVENUES: Tax Increments $ 55,000 $ 55,000 0.00% Interest 1,500 500 -66.67% $ 56,500 $ 55,500 -1.77% EXPENDITURES: Transfers Out $ 78,000 $ 3,000 -96.15% NET TAX AND GENERAL REVENUE SUPPORTED $ 21,500 $ (52,500)-344.19% PERSONNEL: Number of FTE positions00 2012 BUDGET 117 PARKING BUDGET Revenues and Expenditures Special Revenue Fund 214 Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Court Fines$18,932 $19,775 $21,901 $20,000 $20,000 Leased Parking39,374 53,199 66,646 58,000 67,000 15.52% Interest Earned4,144 1,721 1,190 4,000 1,500 -62.50% Federal Grant- - - - - Revenues 7,5,5,7, 7.,5 Tota l6240469893682000880093% Expenditures Salaries, Wages and Benefits Salaries and Wages36,629 36,174 36,791 39,664 39,533 -0.33% Fringe Benefits6,193 6,161 6,309 6,671 6,510 -2.41% Materials, Supplies and Services Professional & Technical Services2,862 2,900 7,481 3,700 3,700 Utilities and Maintenance13,829 13,715 14,496 14,150 14,130 -0.14% Operations390 710 345 1,000 1,000 City Support Services18,671 17,746 19,067 18,358 18,507 0.81% Supplies and Materials5,974 3,782 3,694 4,750 4,750 Capital Outla y Other Improvements- 14,450 26,055 30,000 - -100.00% Total Expenditures84,548 95,637 114,238118,29388,130 -25.50% Excess (deficiency) of Revenues over Expenditures(22,097) (20,942) (24,502) (36,293) 370 -101.02% 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. 2012 BUDGET 118 CITY OF HOPKINS FUND 214 – PARKING FUND PROGRAM: Parking Enforcement PROGRAM SUMMARY Manage and enforce parking rules and regulations. Ensure that parking is available for customers and parking rules are followed. FY 2011FY 2012 ApprovedApprovedPercent MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: BudgetBudgetChange 1. Monitor the effects of current parking REVENUES: enforcement efforts and recommend Fines & Forfeits $ 20,000 $ 20,000 0.00% changes as needed. 2. Continue to accurately account for fine EXPENDITURES: revenues that result from parking Salaries/Wages/Benefits $ 42,607 $ 43,033 1.00% enforcement. Materials, Supplies & Services 16,342 16,203 -0.85% $ 58,949 $ 59,236 NET TAX AND GENERAL REVENUE SUPPORTED $ 38,949 $ 39,236 0.74% PERSONNEL: Number of FTE positions0.720.72 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 2012: 1. Update parking brochure and map. 2. Promote marketing plan for permit parking and FY 2011FY 2012 municipal ramp. ApprovedApprovedPercent 3. Review funding options for future maintenance BudgetBudgetChange of public lots. REVENUES: 4. Maintain and improve public parking lots as needed. Leases $ 58,000 $ 67,000 15.52% 5. Work with Public Works Department to Interest 4,000 1,500 -62.50% complete analysis of public parking lots $ 62,000 $ 68,500 10.48% EXPENDITURES: Salaries/Wages/Benefits $ 3,728 $ 3,010 -19.26% Materials, Supplies & Services 1,764 1,623 -7.99% $ 5,492 $ 4,633 -15.64% NET TAX AND GENERAL REVENUE SUPPORTED $ (56,508) $ (63,867)13.02% PERSONNEL: Number of FTE positions0.10.1 2012 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 2012: 1. Review funding options for future maintenance of parking ramp. 2. Maintain and improve parking ramp as needed. FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Materials, Supplies & Services 23,852 24,261 1.71% Capital Expenditures 30,000 - -100.00% $ 53,852 $ 24,261 NET TAX AND GENERAL REVENUE SUPPORTED $ 53,852 $ 24,261 -54.95% PERSONNEL: Number of FTE positions00 2012 BUDGET 120 COMMUNICATIONS BUDGET Revenues and Expenditures Special Revenue Fund 217 Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Franchise Fees$200,908 $200,739 $210,050 $200,000 $200,000 Interest Earned6,167 2,945 2,177 4,000 1,500 -62.50% Revenue 7,75,5,, -,5. Tota l2002036821222620400020100123% Expenditures Salaries, Wages and Benefits Salaries and Wages11,073 24,018 26,138 25,864 26,602 2.85% Fringe Benefits2,350 5,849 6,548 6,426 6,609 2.85% Materials, Supplies and Services Professional & Technical Services27,312 27,226 27,913 48,450 55,850 15.27% Utilities and Maintenance496 522 4,705 - 475 Operations17,250 18,698 21,391 18,200 18,150 -0.27% City Support Services11,201 12,316 14,341 14,364 14,620 1.78% Supplies and Materials827 377 308 750 800 6.67% Capital Outla y Office Furniture and Equipment58,588 25,395 25,129 26,900 - -100.00% Transfer Out86,920 86,920 86,920 86,920 86,920 Total Expenditures216,018 201,321213,393227,874210,026 -7.83% Excess (deficiency) of Revenues over Expenditures(8,943) 2,363 (1,167) (23,874) (8,526) -64.29% 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. 2012 BUDGET 121 CITY OF HOPKINS FUND 217 – COMMUNICATIONS FUND PROGRAM: Communication and Cable Liaison PROGRAM SUMMARY FY 2011FY 2012 Provide two-way communication between the City and its ApprovedApprovedPercent residents, employees and businesses; its civic, service, BudgetBudgetChange and fraternal organizations; and other communities and REVENUES: government agencies. Written, verbal and visual Franchise Fees $ 160,000 $ 160,000 0.00% communication tools. Interest 4,000 1,000 -75.00% MAJOR OBJECTIVES TO BE ACCOMPLISHED IN $ 164,000 $ 161,000 -1.83% 2012: EXPENDITURES: City Goal 3, Strategy 4: Citizen Engagement Initiatives: Salaries/Wages/Benefits $ 32,290 $ 33,211 2.85% 1. Complete project to allow the City to independently Materials, Supplies & Services $ 35,818 $ 43,318 20.94% program Cable Channel 16. Capital Expenditures $ 25,000 $ - -100.00% 2. Conduct City Survey Transfer Out 86,920 86,920 0.00% 3. Continue to expand e-newsletter and Facebook $ 180,028 $ 163,449 -9.21% NET TAX AND GENERAL REVENUE SUPPORTED $ 16,028 $ 2,449 -84.72% PERSONNEL: Number of FTE positions0.250.25 PROGRAM: Newsletters PROGRAM SUMMARY Provide newsletter for the City and its residents, employees and businesses; its civic, service, and fraternal organizations; and other communities and government agencies. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: 1. City Goal 3: Take it to Them - Engage the Rental Community of Hopkins. Increase newsletter distribution to rental properties. FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Materials, Supplies & Services15,077$ 15,225$ 0.98% NET TAX AND GENERAL REVENUE SUPPORTED15,077$ 15,225$ 0.98% PERSONNEL: Number of FTE positions00 2012 BUDGET 122 CITY OF HOPKINS FUND 217 – COMMUNICATIONS FUND PROGRAM: Web and Messaging PROGRAM SUMMARY Provide communication for the City and its residents, employees and businesses; its civic, service, and fraternal organizations; and other communities and government agencies through a web site. Also maintain the “Ask the City” line. Written, verbal and visual communication tools. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN FY 2011FY 2012 2012: ApprovedApprovedPercent City Goal 1, Strategy 3: Provide Accessible and BudgetBudgetChange Friendly City Services: REVENUES: 1. Increase interactivity on web site through one or Franchise Fees $ 40,000 $ 40,000 0.00% more of the following: Interest - 500 #DIV/0! Ability to make payments via the web $ 40,000 $ 40,500 1.25% Customer Response system EXPENDITURES: Ability to fill out forms on the website Materials, Supplies & Services $ 30,869 $ 31,352 1.56% Capital Expenditures 1,900 - -100.00% $ 32,769 $ 31,352 -4.32% NET TAX AND GENERAL REVENUE SUPPORTED $ (7,231) $ (9,148) 26.51% PERSONNEL: Number of FTE positions00 2012 BUDGET 123 DEPOT BUDGET Revenues and Exenditure ps Special Revenue Fund 219 Projected ActualActualActualBudgetBudgetPercent 2009201020120112012Change Revenues Intergovernmental$- $4,500 $- $10,000 $10,000 Leases and Rentals52,626 51,064 50,960 52,000 51,000 -1.92% Concessions & Merchandise Sales588 144 108 1,000 2,000 100.00% Donations & Contributions2,905 2,735 2,532 7,000 7,000 Private Foundation Grants20,000 20,000 20,000 45,000 25,000 Interest785 44 43 900 - Miscellaneous8,568 10,213 14,148 7,000 25,000 Transfer In- - 10,000 - 10,000 Total Revenues85,473 88,700 97,791 122,900130,000 5.78% Expenditures Salaries, Wages and Benefits Salaries and Wages56,743 57,336 57,833 66,797 69,403 3.90% Fringe Benefits17,436 16,418 17,353 19,009 19,715 3.72% Materials, Supplies and Services Professional & Technical Services9,946 7,831 2,030 3,750 2,450 -34.67% Utilities and Maintenance12,442 14,787 9,748 8,760 7,360 -15.98% Operations10,526 7,329 4,058 18,050 10,050 -44.32% City Support Services2,771 2,537 2,508 2,901 2,697 -7.03% Supplies and Materials4,607 1,510 7,641 3,600 3,500 -2.78% Capital Outla y Improvements15,466 - - - 5,000 Total Expenditures129,936 107,747 101,172 122,867 120,175 -2.19% Excess (deficiency) of Revenues over expenditures(44,463) (19,047) (3,381) 33 9,825 ######## The Depot Coffee House Fund accounts for the operations of the teen center, a chemical free environment for area teens to socialize. 2012 BUDGET 124 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 staffing and programs are funded primarily through contractual coffee house operations, admission fees, rentals, gifts and grants. The Depot programs are intended to offer youth creativity and leadership opportunities, strengthening their involvement in community activities, and nurturing 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, 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. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: 1. Provide a chemical-free, enjoyable environment for teens. 2. Maintain youth engagement programming at the Depot. 3. Support additional youth-initiated projects. 4. Promote partnerships with the Depot in the arts community, with area students, and youth allies. 5. Launch the generation solar project. 6. Complete contract agreements between the city of Hopkins and the Depot Express. FY 2011FY 2012 ApprovedApprovedPercent BudgetChange Budget REVENUES: Intergovernmental $ 60,000 $ 60,000 0.00% Charges for Service $ 2,000 $ 1,000 Interest 900 - -100.00% Foundation/Corporate Grants 45,000 25,000 Miscellaneous 15,000 34,000 Tranfer In - 10,000 #DIV/0! $ 122,900 $ 130,000 5.78% EXPENDITURES: Salaries/Wages/Benefits $ 85,806 $ 89,118 3.86% Materials, Supplies & Services $ 37,061 $ 26,057 Capital Expenditures - 5,000 #DIV/0! $ 122,867 $ 120,175 -2.19% NET TAX AND GENERAL REVENUE SUPPORTED $ (33) $ (9,825)29672.73% PERSONNEL: Number of FTE positions1.51.5 2012 BUDGET 125 TIF DISTRICT 2-1 BUDGET Revenues and Expenditures Special Revenue Fund 221 Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Tax Increment$601,604$318,497$ -$ -$ - Interest521 1,501 100 100 100 Transfers In- - 4,419 - - Total Revenues602,125 319,998 4,519 100 100 Expenditures Materials, Supplies and Services Professional & Technical Services2,9512,3211,4753,000 --100.00% Operations10,60110,8489,269 - - Capital Outlay TIF projects254,862 - - - - Total Expenditures268,41413,16910,7443,000 --100.00% Transfers out for debt214,000146,000 - - - Total Expenditures482,414159,16910,7443,000 --100.00% Excess (deficiency) of Revenues over Expenditures119,712 160,829 (6,225) (2,900) 100 -103.45% The Tax Increment 2-1 Fund is the redevelopment of an office/warehouse within the project area. The fund records the use of tax increment receipts. 2012 BUDGET 126 CITY OF HOPKINS FUND 221 – TAX INCREMENT 2-1 FUND PROGRAM: Improvement of County Road 3 and former Minneapolis Moline. PROGRAM SUMMARY th Coordinate redevelopment activity of former Minneapolis Moline property on 11 Av., south of Excelsior Boulevard. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: 1. Assist in preparation of program budget and other required documents. 2. Prepare required annual State Auditor report. FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Interest 100 100 0.00% $ 100 $ 100 0.00% EXPENDITURES: Materials, Supplies & Services $ 12,269 $ - -100.00% NET TAX AND GENERAL REVENUE SUPPORTED $ 12,169 $ (100)-100.82% PERSONNEL: Number of FTE positions00 2012 BUDGET 127 TIF DISTRICT 2-6 BUDGET Revenues and Expenditures Special Revenue Fund 226 Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Tax Increment$8,764 $10,320 $9,418 $10,500 $9,500 -9.52% Interest296 22 36 300 100 -66.67% Miscellaneous10,292 8,741 9,640 8,524 9,524 11.73% Total Revenues19,352 19,083 19,094 19,324 19,124 -1.03% Expenditures Materials, Supplies and Services Professional & Technical Services415 410 460 400 450 12.50% Operations860 1,500 1,500 1,500 1,500 Capital Outlay TIF projects- - - - - Total Expenditures1,275 1,910 1,960 1,900 1,950 2.63% Transfers out for debt- - - - - Total Expenditures1,275 1,910 1,960 1,900 1,950 2.63% Excess of Revenues over Expenditures18,076 17,173 17,133 17,424 17,174 -1.43% The Tax Increment 2-6 Fund is the handicapped housing development. The funds records the use of tax increment receipts. 2012 BUDGET 128 CITY OF HOPKINS FUND 226 – TAX INCREMENT 2-6 FUND PROGRAM: SonomaHandicap Housing Project PROGRAM SUMMARY th Coordinate redevelopment of northwest corner of 5 Avenue and Excelsior Boulevard. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: 1. Assist in preparation of program budget and other required documents. 2. Prepare required annual State Auditor report. FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Tax Increments $ 10,500 $ 9,500 -9.52% Miscellaneous $ 8,524 $ 9,524 Interest 300 100 -66.67% $ 19,324 $ 19,124 -1.03% EXPENDITURES: Materials, Supplies & Services $ 1,900 $ 1,950 2.63% NET TAX AND GENERAL REVENUE SUPPORTED $ (17,424) $ (17,174)-1.43% PERSONNEL: Number of FTE positions00 2012 BUDGET 129 TIF DISTRICT 2-9 BUDGET Revenues and Expenditures Special Revenue Fund 229 ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Tax Increment$149,998$153,215$136,811$150,000$140,000-6.67% Intergovernmental - Mkt Value Credit9,6149,73810,9669,800 --100.00% Interest5,3282,6582,1945,0002,500-50.00% Transfers In - -37,248 - - Total Revenues164,940165,612187,219164,800142,500-13.53% Expenditures Materials, Supplies and Services Professional & Technical Services1,5861,5701,8141,5001,5704.67% Operations3,2274,6964,5394,5392,882-36.51% Transfers out for debt133,000134,000119,000119,000118,000-0.84% Total Expenditures137,813140,266125,353125,039122,452-2.07% Excess (deficiency) of Revenues over Expenditures27,127 25,345 61,866 39,761 20,048 -49.58% 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. 2012 BUDGET 130 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 2012: 1. Assist in preparation of program budget and other required documents. 2. Prepare required annual State Auditor report. FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Tax Increments $ 150,000 $ 140,000 -6.67% Intergovernmental $ 9,800 $ - Interest 5,000 2,500 -50.00% $ 164,800 $ 142,500 -13.53% EXPENDITURES: Materials, Supplies & Services $ 6,039 $ 4,452 -26.28% Transfer Out 119,000 118,000 -0.84% $ 125,039 $ 122,452 -2.07% NET TAX AND GENERAL REVENUE SUPPORTED $ (39,761) $ (20,048)-49.58% PERSONNEL: Number of FTE positions00 2012 BUDGET 131 TIF DISTRICT 2-11 BUDGET Revenues and Expenditures Projected Special Revenue Fund 231 ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Tax Increment$772,288$1,587,598$2,030,408$1,580,000$2,030,00028.48% Interest4,5172,5223,7553,0003,000 Miscellaneous8,2981,630169,152 - - Total Revenues785,1031,591,7502,203,3161,583,0002,033,00028.43% Expenditures Materials, Supplies and Services Professional & Technical Services12,3239,57813,8946,8007,50010.29% Operations30,42833,02634,72334,72345,50831.06% Capital Outlay TIF projects - - - - - Transfers out 188,000188,000188,000188,000188,000 Total Expenditures230,751230,604236,617229,523241,0085.00% Excess (deficiency) of Revenues over Expenditures554,352 1,361,146 1,966,699 1,353,477 1,791,992 32.40% 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. 2012 BUDGET 132 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 2012: 1. Assist in preparation of program budget and other required documents. 2. Prepare required annual State Auditor report. 3. Distribute PAYG financing to developer as scheduled. FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Tax Increments $1,580,000 $2,030,000 28.48% Interest 3,000 3,000 0.00% $1,583,000 $2,033,000 28.43% EXPENDITURES: Materials, Supplies & Services $ 41,523 $ 53,008 27.66% Debt Service - PAYG TIF $1,341,975 $1,696,700 Transfer Out 188,000 188,000 0.00% $1,571,498 $1,937,708 23.30% NET TAX AND GENERAL REVENUE SUPPORTED $ (11,502) $ (95,292)728.48% PERSONNEL: Number of FTE positions00 Super Valu Development Excelsior Crossings Development 2012 BUDGET 133 TIF 1-3 5TH AVENUE FLATS Revenues and Expenditures Special Revenue Fund 232 Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Tax Increments$1,944 $19,117 $10,805 $19,100 $10,800 -43.46% Interest(2,971) (1,626) (2,326) - - Development Fees- - - - - Other Miscellaneous84,084 10,929 158,128 3,000 3,000 Transfer In- - - - - Total Revenues83,057 28,420 166,608 22,100 13,800 -37.56% Expenditures Materials, Supplies and Services Professional & Technical Services86,648 14,228 3,714 6,250 6,350 1.60% Miscellaneous Other Charges- - 33,915 - - Capital Outlay TIF Projects- - - - - Total Expenditures86,648 14,228 37,629 6,250 6,350 1.60% Excess of Revenues over Expenditures$(3,591) $14,192 $128,979 $15,850 $7,450 -53.00% TIF 1-3 is the redevelopment of a block within the downtown district. The fund records the costs and reimbursement of project expenses. 2012 BUDGET 134 CITY OF HOPKINS FUND 232 – TAX INCREMENT 1-3 FUND 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 2012: 1. Assist in preparation of program budget and other required documents. 2. Prepare required annual State Auditor report. 3. Work with developer on project implementation. FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Tax Increments $ 19,100 $ 10,800 -43.46% Miscellaneous 3,000 3,000 0.00% $ 22,100 $ 13,800 -37.56% EXPENDITURES: Materials, Supplies & Services $ 6,250 $ 6,350 1.60% NET TAX AND GENERAL REVENUE SUPPORTED $ (15,850) $ (7,450)-53.00% PERSONNEL: Number of FTE positions00 Proposed Fifth Avenue Flats project 2012 BUDGET 135 TIF 1-4 MARKETPLACE II Revenues and Expenditures Special Revenue Fund 233 Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Tax Increments$- $- $- $- $- Interest(183) (228) (96) - - Development Fees- - - - - Miscellaneous- 26,108 6,475 13,500 - Transfers In- - - - - Total Revenues(183) 25,880 6,379 13,500 - -100.00% Expenditures Materials, Supplies and Services Professional & Technical Services21,184 10,168 10,127 16,350 7,350 -55.05% Operations- - - - - Capital Outlay TIF Projects- - - - - Total Expenditures21,184 10,168 10,127 16,350 7,350 -55.05% Excess of Revenues over Expenditures$(21,367) $15,711 $(3,748) $(2,850) $(7,350) 157.89% 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. 2012 BUDGET 136 CITY OF HOPKINS FUND 233 – TAX INCREMENT 1-4 FUND PROGRAM: Redevelopment Area –Marketplace & Main PROGRAM SUMMARY thth Redevelopment of property between 6 and 8 Avenues into mixed-use apartment, townhome & retail development. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: 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 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Tax Increments $ - $ - #DIV/0! Miscellaneous 13,500 - -100.00% $ 13,500 $ - -100.00% EXPENDITURES: Materials, Supplies & Services $ 16,350 $ 7,350 -55.05% NET TAX AND GENERAL REVENUE SUPPORTED $ 2,850 $ 7,350 157.89% PERSONNEL: Number of FTE positions00 Marketplace & Main project 2012 BUDGET 137 ARTS CENTER Revenues and Exenditure ps Special Revenue Fund 250 Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Current Services$309,391 $311,576 $323,914 $322,092 $338,653 5.14% Intergovernmental Revenue- - - 50,000 - Grants3,500 54,819 59,501 42,000 50,824 21.01% Interest- - - - - Charges for Service- - - - - Other Revenues106,716 141,217 161,935 233,200 243,850 4.57% Transfers In147,920 147,920 147,920 147,920 147,920 Total Revenues567,527 655,531 693,269 795,212 781,247 -1.76% Operating Expenses Salaries, Wages and Benefits Salaries and Wages287,374 287,915 313,288 297,321 307,453 3.41% Fringe Benefits81,323 68,911 90,803 87,943 104,442 18.76% Materials, Supplies and Services Professional & Technical Services121,545 179,449 179,874 192,500 166,400 -13.56% Utilities and Maintenance73,658 65,543 83,100 71,925 72,630 0.98% Operations52,980 82,770 101,293 103,221 86,861 -15.85% City Support Services13,451 13,878 9,947 13,083 14,066 7.51% Supplies and Materials30,643 30,039 33,166 28,950 27,600 -4.66% Interest Expense147 - - - - Capital Outlay Equipment- - - - - Total Expenses661,121 728,505 811,470 794,943 779,452 -1.95% Excess (deficiency) of Revenues over Expenditures(93,594) (72,974) (118,200)269 1,795 567.37% The Arts Center accounts for the maintenance, operation, programming and promotion of the Hopkins Center for the Arts 2012 BUDGET 138 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, and enhance the lives of our citizens through managing, maintaining, scheduling, programming, promoting, and utilizing the Arts Center as a focal point for arts, education, and community gathering. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: 1. Develop collaborative efforts with tenants, partners, business community, and residents that meet City Strategic Plan goals, while enhancing the sustainability of the Arts Center. 2. The Friends of the Hopkins Center for the Arts will address their mission by (1) increasing the revenue generated by the Hopkins Arts Festival and adding a second event, and (2) identifying a compelling case for support and increasing membership and sponsorship support. 3. Build participation in both performance arts FY 2011FY 2012 series presented by the Arts Center and strengthen the visual arts program through ApprovedApprovedPercent increasing community involvement and BudgetBudgetChange providing resources for area artists. REVENUES: 4. Operate a budget to maximize revenues and Intergovernmental $ 50,000 $ - -100.00% minimize expenses. Charges for Service $ 529,192 $ 561,253 Foundation/Corporate Grants 42,000 50,824 Miscellaneous 26,100 21,250 Tranfer In 147,920 147,920 0.00% $ 795,212 $ 781,247 -1.76% EXPENDITURES: Salaries/Wages/Benefits $ 385,264 $ 411,895 6.91% Materials, Supplies & Services 409,679 367,557 -10.28% $ 794,943 $ 779,452 -1.95% NET TAX AND GENERAL REVENUE SUPPORTED $ (269) $ (1,795)567.29% PERSONNEL: Number of FTE positions4.6754.625 Actual Actual Actual SELECTED WORK 200920102011 INDICATORS 219,975 1. Total visits to the Arts 203,100 215,320 Center 2. Number on Art Center 6,550 6,812 6,576 mailing list 3. Friends membership total 420 505 424 2012 BUDGET 139 EQUIPMENT REPLACEMENT BUDGET Revenues and Expenses Internal Service Fund 602 Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Current Services$287,463$292,867$302,012$302,009$316,7364.88% Intergovernmental Revenue - - - - - Interest Earnings18,5196,7205,30215,0009,266-38.23% Miscellaneous62,80311,76642,34318,00025,00038.89% Total Revenues368,785311,353349,657335,009351,002 Operating Expenses Materials, Supplies and Services Professional & Technical Services3,3262,0002,0002,0002,000 Utilities and Maintenance11,61410,9439,45015,0005,000-66.67% City Support Services10,20210,79811,54711,54711,7671.91% Total Operating Expenses25,14223,74122,99728,54718,767-34.26% Non-operating expenses479,987462,443459,975436,250470,0007.74% Total Expenses505,129486,183482,973464,797488,7675.16% Net Income (Loss)(136,344) (174,831) (133,316) (129,788) (137,765) 6.15% Capital185,568497,036282,100282,100717,300 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. 2012 BUDGET 140 CITY OF HOPKINS FUND 602 – EQUIPMENT REPLACEMENT FUND PROGRAM: Equipment Replacement FY 2011FY 2012 ApprovedApprovedPercent PROGRAM SUMMARY BudgetBudgetChange Coordinate and review twenty-year equipment REVENUES: replacement plan on an annual basis. The Charges for Service$302,009 $316,736 4.88% objective of this fund is to stabilize the required Interest15,000 9,266 -38.23% funding on an annual basis while enabling the fund Miscellaneous18,000 25,000 38.89% to purchase scheduled equipment replacement 335,009 351,002 4.77% without issuing bonds. EXPENDITURES: MAJOR OBJECTIVES TO BE ACCOMPLISHED Materials, Supplies & 28,547 18,767 -34.26% IN 2012: Services 1. Update 5-year Equipment Replacement Plan. Depreciation436,250 470,000 7.74% 2. Analyze future needs. Debt Service16,901 15,058 -10.90% 3. Review revenue structure to accommodate 481,698 503,825 4.59% equipment needs as identified in the long-range NET SOURCE (USE) 20-year plan. 4.18% OF EQUITY($146,689)($152,823) Capital Purchases$282,100 $717,300 154.27% PERSONNEL: Number of FTE positions00 2012 BUDGET 141 WATER BUDGET Revenues and Expenses Enterprise Fund 703 Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Current Services$1,271,316 $1,256,500 $1,276,786 $1,399,000 $1,267,500 -9.40% Permits1,495 864 - 2,000 1,500 -25.00% Interest Earnings(3,173) (2,951) (2,050) - - Miscellaneous66,579 85,789 121,448 110,464 118,870 7.61% Total Revenues1,336,217 1,340,2021,396,1851,511,4641,387,870 -8.18% Operating Expenses Salaries, Wages and Benefits Salaries and Wages275,940 265,280 289,273 224,537 232,753 3.66% Fringe Benefits95,199 103,766 115,663 92,901 91,266 -1.76% Materials, Supplies and Services Professional & Technical Services48,089 28,068 52,798 46,800 46,800 Utilities and Maintenance206,405 193,791 217,162 220,700 222,200 0.68% Operations10,238 8,188 6,753 22,460 22,460 City Support Services225,710 224,875 238,428 223,788 231,999 3.67% Supplies and Materials72,227 71,071 68,779 75,900 75,900 Depreciation218,513 228,635 237,985 228,600 239,100 Total Operating Expenses1,152,321 1,123,6741,226,8411,135,6861,162,478 2.36% Non-operating expenses99,014 101,678 45,402 91,025 41,675 -54.22% Total Expenses1,251,335 1,225,3531,272,2431,226,7111,204,153 -1.84% Net Income (Loss)84,882 114,849 123,941 284,753 183,717 -35.48% The Water fund is a utility enterprise. The operations of water pumps, wells and distribution are recorded here. 2012 BUDGET 142 CITY OF HOPKINS FUND 703 – WATER FUND PROGRAM: Pumps & Wells FY 2011FY 2012 PROGRAM SUMMARY ApprovedApprovedPercent The Pumps & Wells program of the Water BudgetChange Budget Utility Fund provides maintenance to the City’s water well pumping system so that a continued supply of potable water is $2,000 $1,500 -25.00% OPERATING REVENUES: furnished to water customers at the most reasonable cost. Water supply must be OPERATING EXPENSES: maintained at proper levels, as well as Salaries/Wages/Benefits121,534 127,318 4.76% bacterial free. Metering devices are also Materials, Supplies & Services400,566 403,276 0.68% maintained. Depreciation Expense103,000 107,600 4.47% 2.09% Operating Income (Loss)625,100 638,194 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: 0 0 - NON-OPERATING REVENUES: Produce water supply sufficient to meet the needs of 17,000 people. 1. Flush and check all hydrants annually. 2.18% NET INCOME (LOSS)($623,100)($636,694) 2. Check all wells each day. 3. Test samples each month to ensure PERSONNEL: safe water supply. Number of FTE positions1.311.33 4. Well # 6 emergency generator installation & Moline tank valve upgrade. 5. Install dehumidifiers in # 4 Treatment Plant 6. Paint High Service Pump Room 7. Install emergency shut off valves for chlorine tanks PROGRAM: Water Distribution PROGRAM SUMMARY FY 2011FY 2012 The Water Distribution program of the Water ApprovedApprovedPercent Utility Fund provides maintenance to the BudgetBudgetChange City’s water system so that a continued supply of potable water is furnished to water $1,399,200 $1,267,700 -9.40% OPERATING REVENUES: customers at the most reasonable cost. Water supply must be maintained at proper OPERATING EXPENSES: levels, as well as bacterial free. Metering Salaries/Wages/Benefits195,904 196,701 0.41% devices are also maintained. Materials, Supplies & Services219,082 226,083 3.20% MAJOR OBJECTIVES TO BE Depreciation Expense125,600 131,500 4.70% ACCOMPLISHED IN 2012: 2.53% Operating Income (Loss)540,586 554,284 Produce water supply sufficient to meet the needs of 17,000 people. 110,264 118,670 7.62% NON-OPERATING REVENUES: 1. Flush and check all hydrants annually. (91,025)(41,675)-54.22% NON-OPERATING EXPENSES: 2. Test samples each month to ensure safe water supply. -9.96% NET INCOME (LOSS)$877,853 $790,411 3. Reduce copper levels at taps to comply with Safe Drinking Water Act. Capital Outlay/Construction$170,000 $190,000 11.76% 4. Complete one fifth of residential meter upgrade program 5. Start Fire Hydrant head upgrade to Storz PERSONNEL: connection Number of FTE positions1.81.8 6. Install new valves & hydrants in new construction areas. 2012 BUDGET 143 SANITARY SEWER BUDGET Revenues and Expenses Projected ActualActualActualBudgetBudgetPercent 20092010201120112012 Change Revenues Current Services$1,579,718$1,794,813$1,823,054$2,052,000$2,137,5004.17% Permits355230 -1,0001,000 Interest Earnings(6,162) 2,256 127 1,000 - -100.00% Miscellaneous18,64517,54215,89518,00018,000 Total Revenues1,592,5551,814,8411,839,0752,072,0002,156,5004.08% Operating Expenses Salaries, Wages and Benefits Salaries and Wages179,515162,844145,519215,758222,1182.95% Fringe Benefits51,31772,66767,26097,109102,2195.26% Materials, Supplies and Services Professional & Technical Services27,24743,50610,13755,70056,8502.06% Utilities and Maintenance28,60822,08156,054105,550106,3000.71% Operations1,108,6041,154,7461,156,7751,158,3931,132,355-2.25% City Support Services177,318183,584169,028171,194166,956-2.48% Supplies and Materials22,33117,23718,97726,00026,5001.92% Depreciation140,017145,096146,326146,125147,0000.60% Total Operating Expenses1,734,9571,801,7611,770,0761,975,8291,960,298-0.79% Non-operating expenses50,00050,000 -50,000 --100.00% Total Expenses1,784,9571,851,7611,770,0762,025,8291,960,298-3.23% Net Income (Loss)(192,401) (36,921) 68,999 46,171 196,202 324.95% The Sanitary Sewer fund is a utility enterprise. The operations of the Lift Stations and the Collection/Disposal process is recorded here. 2012 BUDGET 144 CITY OF HOPKINS FUND 707 – SEWER FUND PROGRAM: Lift Stations FY 2011FY 2012 ApprovedApprovedPercent PROGRAM SUMMARY BudgetBudgetChange The Lift Stations program of the Sewer Utility Fund provides maintenance and repairs to the $2,052,000 $2,137,500 4.17% OPERATING REVENUES: City’s sanitary sewer lift station system. The system is comprised of 6 sanitary sewer lift stations that pump sewage to the Metro Sewer OPERATING EXPENSES: System for disposal. Salaries/Wages/Benefits179,790 185,958 3.43% Materials, Supplies & Services171,711 171,742 0.02% MAJOR OBJECTIVES TO BE Depreciation Expense87,125 88,000 1.00% ACCOMPLISHED IN 2012: 1.61% Operating Income (Loss)438,626 445,700 1. Mechanically clean 33% of sanitary sewer lines in the City. 0 0 - NON-OPERATING REVENUES: 2. Check daily the operation of sanitary sewer lift stations and repair as needed. 4.86% NET INCOME (LOSS)$1,613,374 $1,691,800 3. Inform neighborhoods prior to scheduled sanitary sewer line maintenance. 4. Verify accuracy and implement new utility PERSONNEL: mapping system. Number of FTE positions1.871.87 PROGRAM: Collection & Disposal PROGRAM SUMMARY The Collection & Disposal program of the FY 2011FY 2012 Sewer Utility Fund provides maintenance ApprovedApprovedPercent to the City’s sanitary sewer system. The BudgetChange Budget system is comprised of sewers, manholes, and lift stations so that sewage may be $19,000 $19,000 0.00% OPERATING REVENUES: transported to the Metro Sewer System for disposal. OPERATING EXPENSES: Salaries/Wages/Benefits133,077 138,379 3.98% MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: Materials, Supplies & Services1,345,126 1,317,219 -2.07% 1. Mechanically clean 33% of sanitary Depreciation Expense59,000 59,000 0.00% sewer lines in the City plus monthly -1.47% Operating Income (Loss)1,537,203 1,514,598 checks of manholes in problem areas. 2. Inform neighborhoods prior to 1,000 0 -100.00% NON-OPERATING REVENUES: scheduled sanitary sewer line (68,475)(33,050)-51.73% NON-OPERATING EXPENSES: maintenance. 3. Verify accuracy and implement new -3.60% NET INCOME (LOSS)($1,585,678)($1,528,648) utility mapping system. 4 Repair or replace manhole cover & casting as needed.Capital Outlay/Construction$100,000 $100,000 0.00% 4. Line & repair sewer mains as needed per T.V. reports, also repair of PERSONNEL: manhole structures. Number of FTE positions1.571.59 2012 BUDGET 145 REFUSE BUDGET Revenues and Expenses Projected Enterprise Fund 717 ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Current Services$796,263$ 815,840$ 862,464$ 887,370$ 905,3602.03% County Grant24,58134,19543,69749,00028,000-42.86% Interest Earnings5,0103,4652,6475,0005,000 Miscellaneous25,36736,35274,04511,00037,000236.36% Total Revenues851,221889,853982,852952,370975,3602.41% Operating Expenses Salaries, Wages and Benefits Salaries and Wages184,681145,443172,517241,224241,4710.10% Fringe Benefits61,06553,778122,29495,62290,454-5.40% Materials, Supplies and Services Professional & Technical Services127,842113,279114,606123,580127,5503.21% Utilities and Maintenance33,50834,81121,76131,90031,900 Operations123,882125,420124,226145,780136,080-6.65% City Support Services158,642160,751163,928165,888167,1710.77% Supplies and Materials49,41158,22851,51454,00054,3500.65% Depreciation47,49045,97256,26647,00056,00019.15% Total Operating Expenses786,522737,682827,113904,994904,9760.00% Non-operating expenses25,00025,00025,00025,00025,000 Total Expenses811,522762,682852,113929,994929,9760.00% Net Income (Loss)39,699 127,171 130,739 22,376 45,384 102.82% The Refuse fund is a utility enterprise. The operations of bulk collections, yard waste, recycling, brush service and refuse disposal are recorded here. 2012 BUDGET 146 CITY OF HOPKINS FUND 717 – REFUSE FUND PROGRAM: Bulk Collection FY 2011FY 2012 PROGRAM SUMMARY ApprovedApprovedPercent The Bulk Collection program of the BudgetBudgetChange Refuse Utility Fund is a user fee based service that provides bulk item pickup $15,000 $15,000 0.00% OPERATING REVENUES: for larger items. Pick ups are scheduled on a call-in basis and take place OPERATING EXPENSES: Thursdays throughout the year. A bulk Salaries/Wages/Benefits15,609 15,752 0.92% item drop off event is provided twice per year (spring & fall). Materials, Supplies & Services28,909 25,017 -13.46% -8.42% Operating Income (Loss)44,518 40,769 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: 0 0 - NON-OPERATING REV (EXP): 1. Review and expand user fee based system. (Council Approval Required) -12.70% NET INCOME (LOSS)($29,518)($25,769) 2. Improve drop off procedures and increase efficiency at our bi-annual PERSONNEL: drop offs. Number of FTE positions0.260.26 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 2012: 1. Continue to explore ways to improve FY 2011FY 2012 our user fee based system. ApprovedApprovedPercent (Council Approval Required) BudgetBudgetChange 2. Monitor usage of free residential drop off site. $13,500 $18,500 37.04% OPERATING REVENUES: 3. Track impact of curbside fee increase and compostable bag requirement. OPERATING EXPENSES: Salaries/Wages/Benefits52,573 40,872 -22.26% Materials, Supplies & Services36,600 32,347 -11.62% -17.89% Operating Income (Loss)89,173 73,219 0 0 - NON-OPERATING REV (EXP): -27.69% NET INCOME (LOSS)($75,673)($54,719) PERSONNEL: Number of FTE positions0.620.62 2012 BUDGET 147 CITY OF HOPKINS FUND 717 – REFUSE FUND PROGRAM: Recycle FY 2011FY 2012 ApprovedApprovedPercent PROGRAM SUMMARY BudgetBudgetChange The Recycle program of the Refuse Utility Fund provides bi-weekly single stream recycle $131,010 $144,000 9.92% OPERATING REVENUES: collection for 2,990 residences in the City Service area. Collection is provided by a private licensed hauler who is contracted by OPERATING EXPENSES: the City. Commercial and multi-family Salaries/Wages/Benefits34,446 34,748 0.88% properties are required to contract Materials, Supplies & Services158,872 166,005 4.49% independently for recycling services. 3.85% Operating Income (Loss)193,318 200,753 54,000 58,000 7.41% NON-OPERATING REVENUES: MAJOR OBJECTIVES TO BE 0 0 #DIV/0! NON-OPERATING EXPENSES: ACCOMPLISHED IN 2012: 1. Monitor the Single Stream Recycling -115.01% NET INCOME (LOSS)($8,308)$1,247 Program and work with residents to increase the volume of waste recycled. 2. Verify compliance of commercial and PERSONNEL: multi-family properties. Number of FTE positions0.410.41 3. Continue to promote waste abatement through public awareness campaigns and educational presentations. 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.) FY 2011FY 2012 MAJOR OBJECTIVES TO BE ApprovedApprovedPercent ACCOMPLISHED IN 2012: BudgetBudgetChange 1. Continue to explore ways to improve our user fee based system. (Council Approval Required) $0 $0 #DIV/0! OPERATING REVENUES: 2. Monitor impact of curbside brush pick- up fee increase on program usage. OPERATING EXPENSES: 3. Continue free residential drop off Salaries/Wages/Benefits55,771 53,369 -4.31% system. Materials, Supplies & Services33,376 31,278 -6.29% -5.05% Operating Income (Loss)89,147 84,647 0 0 - NON-OPERATING REV (EXP): -5.05% NET INCOME (LOSS)($89,147)($84,647) PERSONNEL: Number of FTE positions0.6550.655 2012 BUDGET 148 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 2012: 1. Continue to improve refuse collection service to our residents. 2. Maintain excellent customer service through monitoring of operations and communicating with residents. FY 2011FY 2012 ApprovedApprovedPercent BudgetBudgetChange $727,860 $727,860 0.00% OPERATING REVENUES: OPERATING EXPENSES: Salaries/Wages/Benefits178,447 184,184 3.21% Materials, Supplies & Services263,391 262,404 -0.37% Depreciation Expense47,000 56,000 19.15% 2.81% Operating Income (Loss)488,838 502,588 11,000 12,000 9.09% NON-OPERATING REVENUES: (25,000)(25,000)0.00% NON-OPERATING EXPENSES: -5.67% NET INCOME (LOSS)$225,022 $212,272 Capital Outlay/Construction$0 $0 - PERSONNEL: Number of FTE positions2.0952.145 2012 BUDGET 149 STORM SEWER BUDGET Revenues and Expenses Projected Enterprise Fund 740 ActualActualActualBudgetBudgetPercent 20112012 200920102011Change Revenues Current Services$800,843$803,889$803,417$810,140$810,1400.84% Interest Earnings5,302 1,361 1,300 5,000 1,200 284.68% Total Revenues806,145805,250804,717815,140811,3401.30% Operating Expenses Salaries, Wages and Benefits Salaries and Wages26,18234,44336,81033,23447,364-9.71% Fringe Benefits10,32811,74514,99011,48316,914-23.39% Materials, Supplies and Services Professional & Technical Services1,3581,40814,6929,0009,200-38.74% Utilities and Maintenance3,4674,7736,2277,00025,20012.41% City Support Services80,10476,77076,56376,74081,6210.23% Supplies and Materials8909461,5021,0001,000-33.43% Depreciation190,461198,860198,840198,900198,900 Total Operating Expenses312,789328,945349,624337,357380,199-3.51% Non-operating expenses105,63790,573161,38971,370147,322-55.78% Total Expenses418,426419,518511,013408,727527,521-20.02% Net Income387,719385,732293,704406,413283,81938.38% The Storm Sewer fund is a utility enterprise. The reconstruction of storm sewers and ponding for drainage throughout the city is recorded here. 2012 BUDGET 150 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 men and equipment from the Water & Sewer and Street & Sanitation divisions. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2012: 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. FY 2011FY 2012 4. Continue grit chamber cleaning ApprovedApprovedPercent 5. Clean catch basins and inspect for BudgetChange Budget repair. 6. Work with MCWD to plan and design storm water improvements at $810,140 $810,140 0.00% OPERATING REVENUES: expanded Cottageville Park site OPERATING EXPENSES: Salaries/Wages/Benefits44,717 64,278 43.74% Materials, Supplies & Services110,740 117,021 5.67% Depreciation Expense198,900 198,900 0.00% 7.29% Operating Income (Loss)354,357 380,199 5,000 1,200 -76.00% NON-OPERATING REVENUES: (71,370)(147,322)106.42% NON-OPERATING EXPENSES: -27.12% NET INCOME (LOSS)$389,413 $283,819 Capital Outlay/Construction$100,000 $100,000 - PERSONNEL: Number of FTE positions0.460.63 2012 BUDGET 151 PAVILION Revenues and Expenses Projected Enterprise Fund 747 ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Rental$297,243 $298,520 $296,000 $296,000 $308,700 4.29% Interest Earnings2,529 2,055 1,000 1,000 1,000 Miscellaneous51,984 46,071 55,850 55,850 51,480 -7.82% Total Revenues351,757 346,646352,850352,850361,180 2.36% Operating Expenses Salaries, Wages and Benefits Salaries and Wages164,692 162,231 163,989 169,467 169,605 0.08% Fringe Benefits42,555 47,015 47,624 48,347 47,302 -2.16% Total Salaries and Wages207,247 209,246211,613217,814216,907 -0.42% Materials, Supplies and Services Professional & Technical Services4,845 5,835 6,810 6,375 7,400 16.08% Utilities and Maintenance81,543 75,052 82,364 81,400 83,000 1.97% Operations801 947 512 2,200 1,750 -20.45% City Support Services19,207 19,115 20,565 20,756 20,798 0.20% Supplies and Materials19,543 20,622 24,111 21,050 21,050 Total Materials Supplies & Service125,940 121,572 134,363 131,781 133,998 1.68% Total Operating Expenses333,188 330,818 345,976 349,595 350,905 0.37% Non-operating expenses66,828 67,938 68,000 68,000 68,000 Total Expenses400,016 398,756 413,976 417,595 418,905 0.31% (57,725) -10.84% Net Income (Loss)(48,259) (52,110) (61,126) (64,745) The Pavilion fund is an ice rink enterprise. The operations for the ice arena, soccer league and dry floor are recorded here. 2012 BUDGET 152 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 2012: 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 2011FY 2012 ApprovedApprovedPercent BudgetChange Budget $341,850 $350,580 2.55% OPERATING REVENUES: OPERATING EXPENSES: Salaries/Wages/Benefits217,814 216,907 -0.42% Materials, Supplies & Services131,881 134,098 1.68% Depreciation Expense68,000 68,000 0.00% 0.31% Operating Income (Loss)417,695 419,005 11,000 10,600 -3.64% NON-OPERATING REVENUES: 0 0 - NON-OPERATING EXPENSES: -10.83% NET INCOME (LOSS)($64,845)($57,825) Capital Outlay/Construction$0 $38,000 - PERSONNEL: Number of FTE positions3.052.9 Actual Actual Projected SELECTED WORK 2010 2011 2012 INDICATORS 1. Rented prime hours ice 1,147 1185 1180 2. Rented non-prime hours ice 307 221 250 3. Pavilion leases for summer use 8 8 8 4. Hours ice resurfacer is in use 237 232 235 5. Hours of part-time employment 2,331 3634 3500 6. Open skate hours 272 278 275 7. Teams for indoor soccer 14 14 14 8. Dry Floor Use Hours 261 363 350 9. Hours compressors in use 4,429 4511 4500 10. Hours of turf use 624 758 650 11. Hours Of Mezzanine Rental Use 776 1301 1150 2012 BUDGET 153 DEBT SERVICE FUNDS Revenues and Expenditures YTD ActualActualActualBudgetBudgetPercent 20082009201020102011Change Revenues Property Tax$1,202,613$1,224,663$1,208,527$1,269,500$1,306,4002.91% Special Assessments273,905672,785658,437651,000552,000-15.21% Interest7,03115,6435,9877,2702,245-69.12% Transfer In885,1192,509,631710,977677,619679,4920.28% Bond Proceeds1,035,0004,515,000 - - - Total Revenues3,403,6688,937,7222,583,9292,605,3892,540,137-2.50% Expenditures Bond expenditures Professional Fees74,31852,5502,4832,4001,800-25.00% Principal1,640,0001,685,0002,280,0002,270,0001,635,000-27.97% Interest811,119801,792803,093807,295752,479-6.79% Fiscal charges5,6945,1114,4755,4754,250-22.37% Bond Discount & Issuance Costs - - - - - Deposit to escrow account - - - - - Transfer Out -6,901,93952,514 - - Total Expenditures2,531,1319,446,3923,142,5663,085,1702,393,529-22.42% Sources (Uses) of Fund Balance872,536 (508,670) (558,637) (479,781) 146,608 -14.12% 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. 2012 BUDGET 154 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. 2012 BUDGET 155 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. 2012 BUDGET 156 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 2012 BUDGET 157 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. 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. 2012 BUDGET 158 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. 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. 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. 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. 2012 BUDGET 159 CITY OF HOPKINS 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. 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. 2012 BUDGET 160 CITY OF HOPKINS 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. 2012 BUDGET 161