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2013 City of Hopkins-MN Budget CITY OF HOPKINS BUDGET FISCAL YEAR BEGINNING JANUARY 1, 2013 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 Community Profile ........................................................................................................ 7 Organization Structure ................................................................................................ 10 Organization Mission Statement, Vision & Goals ....................................................... 11 Financial Management and Policies ........................................................................... 13 Budget Calendar ......................................................................................................... 16 Budget Planning Process ........................................................................................... 18 Fund Structure ............................................................................................................ 19 Budget Overview Authorized and Approved Staffing Levels .................................................................. 22 2013 Summary Budget Information by Major and Non-Major Funds ......................... 24 2013 Budget Summary – All Funds ............................................................................ 25 2013 Revenue Summary – All Funds ......................................................................... 27 2013 Appropriation Summary – All Funds .................................................................. 31 Property Tax Information ............................................................................................ 34 Fund Balance ............................................................................................................. 38 Debt Overview ............................................................................................................ 42 Capital Improvements Overview ................................................................................. 47 General Fund Budget Projection ................................................................................ 51 General Fund ................................................................................................................. 55 Special Revenue Funds ................................................................................................ 103 Internal Service Fund .................................................................................................... 133 Enterprise Funds ........................................................................................................... 135 General Debt Service Funds ......................................................................................... 147 Glossary ........................................................................................................................ 148 January 2013 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 2013 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 2013 tax levy. The final result is an adopted 2013 budget totaling $21,522,456 of which $10,580,329 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 “Partnering with the community to enhance the quality of life” 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. 2013 BUDGET DEVELOPMENT The City has developed a number of elements that have been brought together to provide the best information for the Council to make their budget decisions. These elements include the following: Strategic Planning Process – The Council has a mission and vision statement, which helps determine the priorities of the community and direct the council in providing services for its constituency. As part of the process annual goals and objectives are set. Program Budgeting – This provides more information in regards to what programs departments provide and what is the individual cost of those programs. This accomplishes the objective of reviewing revenues and expenditures based on program activity. Four Year Budget Modeling – Encourages future planning for the General Fund budget and allows us a preview at projected property tax levy needs over the next four years. Cash Flow Models – Cash flow projections are created for all funds to provide us with a view of future sources and uses within the various funds and for the City as a whole. This assists in long range planning and goal setting. Net Property Tax Cost for Sample Properties – Developed many years ago, this provides information to the council incorporating expected increases in valuation and projecting actual costs on sample properties within the City. Net Tax Cost by Program – This provides both a dollar and percentage of property tax support for programs. each of the City’s general fund CITY OF HOPKINS HOPKINS IN 2012 In the year 2012, 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 2012. 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 2012, 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 2012 the overall taxable market value declined by 3.5%. Despite the decrease in value the levy has increased an average of 2.4% per year over the last five years. The City’s general fund expenditures have increased an average of 2.03% 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. Looking ahead Hopkins was facing approximately $500,000 in capital investment to maintain and upgrade our dispatch center. After exploring several options including keeping the dispatch service, the City chose to transfer dispatch services to Hennepin County in August of 2012. As a result the City will be saving approximately $300,000 annually. The employee compensation has remained competitive in the market for both those with and those without labor contracts. The number of employees has remained stable at 105-110. ECONOMIC OUTLOOK Hopkins is a diverse community made up of a healthy mix of residential, commercial and industrial properties. Super Valu is the largest food wholesaler in the nation. They are a Fortune 500 company that continues to have a strong presence in Hopkins. Another Fortune 500 company with a branch in Hopkins is US Bank. In addition Cargill, the largest privately held company in terms of revenue, 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. Some of the more recent projects are: Redevelopment of a 27-acre parcel into $130 million corporate campus for Cargill that has brought over 3,000 jobs to the City Redevelopment of a vacant car dealership for LA Fitness Redevelopment of a vacant commercial building into a new 10,000 sf retail strip mall Redevelopment of a vacant commercial site in downtown Hopkins into a 53-unit luxury apartment and retail development Expansion by the Hopkins Health and Wellness Center with a $3 million dollar investment Redevelopment of a vacant office and clinic site into 163 luxury apartments with retail space In addition to projects other development continues in Hopkins. This includes new commercial structures on Mainstreet, renovation of older industrial buildings, new residential projects, and more mixed-use projects that incorporate residential and commercial development. Overall, these redevelopment efforts continue to ensure that Hopkins remains a desirable community in which to live and work. 2013 BUDGET 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 2013 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 in 2012. State Aids – The City of Hopkins no longer relies on significant state aids as a revenue source despite the legislature annually discussing the Local Government Aid program and working to modify the program and how funds are allocated to cities. Hopkins lost their entire allotment many years ago and does not plan for its return. Real Estate Values – Overall real estate values in this community experienced a decrease in estimated market value of 1.4% for 2012. This resulted in a decrease in the City’s tax capacity of 3.46%. Overall, budgeted expenditures will decrease by 0.6% in 2013 due in large part to holding expenditures down. We projected a 1.26% change for 2014 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. 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. 2013 BUDGET CITY OF HOPKINS 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 2013 BUDGET ADOPTION Overall the budget objective is to provide quality services at a reasonable cost, while keeping tax rates fairly constant In the past this has been accomplished through increased net tax capacity levels and keeping the tax levy at a reasonable amount while at the same time allowing the City enough funds to continue with the level and quality of service it currently has. This has been particularly challenging the last few years as property values declined. The city’s tax capacity rate held fairly steady from 2005 to 2010 at around 48%. When property values started falling in 2010 they affected the tax rate for 2011 and 2012 causing the rate to increase to 55.6% in 2011 and 58.7% for 2012. The 2013 city tax rate is 62.3% due primarily to a new street improvement levy. The adopted General Fund budget has a 0.23% expenditure increase for a total General Fund Budget of $10,580,329. The total tax levy increase for 2013 is 0.99%. 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 $104 or approximately $1,244 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 2012-13 goals and strategic plan are included in the budget document on pages 11-12. Sincerely, CITY OF HOPKINS Michael J. Mornson City Manager 2013 BUDGET 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, 2012. 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. 2013 BUDGET CITY OF HOPKINS 2013 BUDGET 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 79 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. 2013 BUDGET CITY OF HOPKINS 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 201117,701 Summertime in Hopkins at the Clock Tower Plaza 2013 BUDGET CITY OF HOPKINS CITY STATISTICS: Founded1852School Enrollment8,911 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 Family2,750Elections: Multiple Family4,917 Registered Voters - last general election10,766 Duplexes482 Number of votes cast last general election9,130 Townhouses839 Percentage of registered voters voting85% Population by AgeCity Bond Rating 0 to 194,515 Stand & Poor'sAA 20 to 6411,078 Moody'sA- Over 651,938 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$48,500Miles of Watermains52.6 Per Capita Personal Income$29,500 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$1.469 billion Skating Rinks7 2013 BUDGET CITY OF HOPKINS ORGANIZATION STRUCTURE The home rule charter of the City was adopted on December 2, 1947 and serves as the basis for the government operations of the City. The City utilizes the council-manager form of municipal government. The City Council is comprised of the mayor and four council members. The mayor and the council members are elected at large. The council members serve a four-year term and the mayor serves a two- year term. The city manager of the City is the chief administrative officer of the City. The city manager and the city attorney are selected by the City Council and serve an indefinite term. The city manager controls and directs the administration of the City’s affairs and therefore, supervises all departments and divisions of the City. The city attorney provides legal and prosecution services for the City. City boards and commissions serve in an advisory capacity to the City Council. The City is managed through seven departments, each with a department head who reports to the city manager. A description of each of the departments is included in this document. Within each department are several programs. A description of each program, its objectives and budgets are presented in this document. The City utilizes several commissions to advise, prioritize or implement various city issues or projects throughout the year. These commissions are comprised of volunteer citizens and an appointed staff member as a liaison. The Charter commission reviews the city charter for appropriateness and also recommends changes to the charter. They meet annually or more often as needed. The Zoning and Planning commission meets monthly and reviews and recommends zoning applications, changes to zoning ordinances and recommends possible future economic development for the City. The Park board meets monthly to review park and recreation programs use and recommends future programs and development for parks. There are also several internal committees comprised of department heads and employees to assist in the management of City operations. These include the Labor Management committee, Employee Management committee, Insurance committee, Safety committee, Wellness Committee and Police Review committee. MISSION, VISION AND GOALS Long-range goals for the City are: Continually enhance partnerships with citizens. o Inspire citizen leadership. o Educate and involve residents. o Communicate openly and effectively. o Be responsive. o Be fiscally responsible. o Provide quality customer service that is: o Responsive to the needs of the community. Innovative. Accessible. Short-term goals are reviewed 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 mission, vision and short-term goals for the City and the strategies to implement them. 2013 BUDGET CITY OF HOPKINS 2013 BUDGET CITY OF HOPKINS 2013 BUDGET 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 2012 CAFR will be available to the public upon completion in May 2013 and a summary of the results will be published in the official newspaper. The 2012 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, 2011. 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. 2013 BUDGET 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. 2013 BUDGET CITY OF HOPKINS Governmental budgets are prepared on the modified accrual basis and enterprise budgeted on an accrual basis. Budgets are estimates and may be amended under the following guidelines. PREPARATION OF THE ANNUAL BUDGET – The annual budget shall provide a complete financial plan for the budget year by fund, showing all proposed expenditures and estimates of all anticipated revenues applicable to proposed expenditures and any other information the council may require or the city manager might deem desirable. In parallel columns shall be shown the amounts, if any, granted and expended under similar heads for the past two complete fiscal years and, as current as possible, for the immediate past fiscal year. The council may include or exclude at its discretion any fund, except the general fund. The budget shall be submitted to the council at a regular council meeting, in a manner prescribed by state statute, not less than 30 days prior to final approval. It shall be a public record open to public inspection by anyone and the city manager shall cause sufficient copies thereof to be prepared for distribution to the mayor, members of the council and interested persons. ADOPTION OF THE BUDGET – The council shall hold a public hearing on the budget and it shall make such changes therein as it deems necessary and adopt the budget by Resolution. ENFORCEMENT OF THE BUDGET – Except as set forth in Section 7.16, the city manager or the City Council shall not approve any expenditure uncovered by the budget. The City Council may approve expenditures uncovered by the budget if there is sufficient unexpended balance left after deducting the total past expenditures and the sum of all outstanding bills, orders and encumbrances. No employee of the City shall place any orders or make any purchases except for the purpose and to the amounts authorized in the budget. Except as in this Charter otherwise provided, any obligations incurred by any person in the employ of the City for any purpose not authorized in the budget or for any amount in excess of the amount therein authorized shall be a personal obligation upon the person incurring the expenditure. ALTERATIONS IN THE BUDGET – Except as set forth in Section 7.16, after the budget shall have been duly adopted, the council shall not have power to increase the amounts therein fixed, whether by the insertion of new items or otherwise, beyond the estimated revenues, unless the actual receipts shall exceed such estimates, and in that event not beyond such actual receipts. The sums fixed in the budget are appropriated at the beginning of the fiscal year for the several purposes named therein. The council may reduce salaries or the sums appropriated for any other purpose, or authorize the transfer of sums from unexpended balances to other purposes. Budgets are adopted by fund and are appropriated for several purposes. The council may reduce appropriations within any fund and re-appropriate those funds within the same fund for other purposes. The council may also increase appropriations if actual receipts exceed budgeted revenues. The increase in appropriations cannot exceed the excess in budgeted revenues. The budget, as presented in this document, is developed for each program within a department. For example, the Finance department is made up of several programs including Benefit Administration, Payroll, Utility Billing, etc… For management purposes, the sum of the program expenditures may not exceed the total budget for the specific department. For legal purposes, the general fund total expenditures cannot exceed the total general fund appropriation. The council must budget for the general fund but budgets for all other funds are at their discretion. Budgets are adopted on a basis consistent with generally accepted accounting principles and are defined on the same basis of accounting described below. Annually appropriated budgets are legally adopted for the general fund. Budgeted amounts are reported as originally adopted, or as amended by the City Council. Budgeted expenditure appropriations lapse at year-end. Unexpended or supplementary appropriations can be carried forward if approved by the City Council. Encumbrances represent purchase commitments. Encumbrances outstanding at year-end are reported as reservations of fund balances and the budgets associated with them are carried forward to the next year. 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. 2013 BUDGET 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 5City Council adopts preliminary levy and budget September 6Proposed 2012 budget and levy certified to Hennepin September/OctoberSpecial Revenue & Enterprise budgets presented to Council for review and approval December 5Budget public hearing December 19Final 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. 2013 BUDGET 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 2013 BUDGET 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. 2013 BUDGET 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 $845,400. 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 fifteen Special Revenue Funds. There are fourteen 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. 2013 BUDGET CITY OF HOPKINS 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 14 individual debt service funds for the various bond issues. The City has established annual financial plans for all 14 general obligation bond funds, which are shown in total as the GO Debt Service Funds. Capital Project Funds Capital project funds account for the acquisition and construction of major capital facilities and equipment (except those financed by proprietary funds). This includes expenditures relating to capital projects and large capital outlay purchases. The City has five budgeted funds in this category: Park Improvement Fund – development and improvement of City parks. Revenue is primarily from park development fees paid by developers. State Aid Construction Fund – revenue from state aid to assist with maintenance and construction of state aid streets throughout the city. Capital Improvement Fund – transfers from other funds to cover future improvements or maintenance of city facilities and infrastructure. Street Improvement Franchise Fee Fund – revenue is derived from the increase off the base gas and electric franchise fees and will be used to offset street improvement costs that are to be levied on the taxes. Permanent Improvement Revolving Fund – bonds issued to fund reconstruction and maintenance of residential streets throughout the city. 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. 2013 BUDGET CITY OF HOPKINS Internal Service Funds Internal Service Funds are used to account for the financing of goods and services provided by one department to other departments of the City on a cost reimbursement basis. The City has three Internal Service Funds and no budgets are prepared for these funds. Equipment Replacement – revenues derived from leases of large equipment to all departments. Revenues are used to cover the cost of replacing equipment in the future. Lease payments are budgeted in the individual funds and transferred to the Equipment Replacement Fund monthly. Employee Benefits – to account for compensated absences of non-enterprise employees Insurance Risk – accounts for the dividends received from the insurance company for low insurance claims and costs, which is used to cover the deductible for any losses. Major Funds For 2013 the City identifies the following funds as major funds which are described above. All major funds are budgeted. General Fund Economic Development Special Revenue Fund Arts Center Special Revenue Fund 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 2013 BUDGET 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 20102011201220132013 Authorized Authorized Authorized Authorized Actual & Actual& Actual Administrative Services4.804.804.955.005.00 Finance4.604.604.604.604.60 Municipal Building1.451.451.451.451.45 Community Services9.959.959.809.889.80 Police40.0040.0039.5038.4536.45 Fire1.201.201.201.251.25 Public Works17.2517.2517.6918.4917.69 Skate Park0.050.050.050.050.05 Activity Center3.303.303.203.203.20 Planning & Community 1.351.351.351.351.35 Community Development0.000.000.850.850.85 General Fund Total83.9583.9584.6484.5781.69 Economic Development1.751.601.601.151.15 Housing Rehabilitation0.850.850.000.000.00 Parking1.001.000.720.720.72 Communications 0.400.250.250.250.25 Depot Coffee House1.001.501.502.502.50 Art Center4.054.554.304.303.80 Special Revenue Fund Total9.059.758.378.928.42 Water3.113.113.133.133.13 Sanitary Sewer3.443.443.463.463.46 Refuse3.403.583.894.093.89 Storm Sewer0.420.420.630.630.63 Pavilion/Ice Arena3.052.452.402.402.40 Housing & Redevelopment2.052.202.202.202.20 Total Proprietary Funds15.4715.2015.7115.9115.71 Total All Funds108.47108.90108.72109.40105.82 2013 BUDGET CITY OF HOPKINS Operating Fund Crosswalk This matrix shows the relationship between functional units and funds. Major Funds pecaevenueCapital ProjectsDebt ServiceEnterprise SilR Tax Incr Taxable District - Taxable Tax Entertain-Permanent Houing Increment Storm General Economic ment Arts Municipal Improvement Bonds of Rfdg Bonds Water Sewer Sewer Function FundDevDistrictCenterState AidRevolving2009Bof 2005BUtilityUtilityUtilityPavilion General GovernmentXXXXXXXXXXX Public SafetyX Health and WelfareX Highways and StreetsX Urban Redevelopment and HousingXX Culture and RecreationXXX Capital OutlayXXXXXX Debt ServiceXXXXX WaterX SewerX Storm SewerX Non-Major Funds SpecialCapitalDebt FunctionRevenueProjectsServiceEnterprise General GovernmentXXXX Public SafetyX Health and WelfareX Highways and StreetsX Urban Redevelopment and HousingX Culture and RecreationX Capital OutlayXX Debt ServiceX RefuseX Hopkins Citizen’s Academy participants engage in Police, Planning and Economic Development, and fire exercises. The Citizens Academy, a five week program held annually in March allows citizens to get a better understanding of how their City government works. The Academy covers the topics of, Our Government, Police, Fire, Public Works and Planning & Economic Development. The program has been well received by the community with over 25 participants each year. 2013 BUDGET CITY OF HOPKINS Summary Budget Information – Major Funds and Non-Major Funds by Fund Type 2013 BUDGET CITY OF HOPKINS Summary of Budgeted Funds GENERAL FUND 2011201220122013Budget ActualActualBudgetBudgetDifference% age REVENUES Property Taxes8,613,469$ 8,721,264$ 8,889,091$ 8,954,274$ 65,183 0.73% Intergovernmental479,079 551,534 512,370 498,510 (13,860) -2.71% Licenses, Permits & Fines634,315 707,374 485,615 526,595 40,9808.44% Charges for Services295,170302,526245,150187,850 -23.37%(57,300) Miscellaneous340,59274,250134,299123,100 -8.34%(11,199) Franchise Fees289,188292,065290,000290,000 - $ 10,649,01310,651,813$ 10,556,525$ 10,580,329$ 23,804 0.23% APPROPRIATIONS Council$78,911$72,965$68,697$ 68,967 2700.39% Administrative Services392,850466,032469,132482,816 13,6842.92% Finance213,136226,974209,726214,196 4,4702.13% Legal140,213131,152135,000142,000 7,0005.19% Municipal Building 275,796289,633296,863313,998 17,1355.77% Community Services934,453942,212941,074948,729 7,6550.81% Police4,432,5324,504,4284,530,0324,394,021(136,011)-3.00% Fire859,115973,973855,424916,308 60,8847.12% Public Works2,289,0662,101,7392,198,6772,266,002 3.06%67,325 Recreation524,920533,971528,864544,483 15,6192.95% Planning112,335118,588126,837129,6832,8 462.24% Community Development 82,233-85,99988,9260% 2,927 Unallocated 19,83619,583110,20070,200 -36.30%(40,000) $ 10,463,48310,273,163$ 10,556,525$ 10,580,329$ 23,804 0.23% SPECIAL REVENUE FUNDS 2011201220122013Budget ActualActualBudgetBudgetDifference% age REVENUES Chemical Asses. Team120,767$ 44,706$ 45,000$ 45,000 $ $ -- Economic Development167,5621,137,729188,500240,000 51,50027.3% Real Estate Sales4,3634,3015,8004,200 -27.6%(1,600) Parking89,736134,99788,50094,000 5,5006.2% Communication212,226232,941201,500223,500 22,00010.9% Depot Coffee House97,791280,311130,000330,000 200,000153.8% Art Center693,269723,835781,247766,310(14,937)-1.9% Tax Incr Financing (7 funds)2,641,4552,575,7782,264,0242,257,224 -0.3%(6,800) $4,027,169$5,134,598$3,704,571$3,960,2346.9% $ 255,663 APPROPRIATIONS Chemical Assess. Team110,791$$78,746$45,000$ 45,000 $ -- Economic Development259,992323,655268,553286,8146.8% 18,261 Real Estate Sales---- -- Parking114,23892,43588,13089,094 9641.1% Communication213,393254,130210,570218,264 7,6943.7% Depot Coffee House101,172285,247120,175327,300 207,125172.4% Art Center812,055759,828779,452765,418(14,034)-1.8% Tax Incr Financing (7 funds)2,110,4821,426,8872,078,8101,338,939(739,871)-35.6% $3,722,123$3,220,928$3,590,690$3,070,829$(519,861)-14.5% 2013 BUDGET CITY OF HOPKINS PROPRIETARY FUNDS 2011201220122013Budget ActualActualBudgetBudgetDifference% age REVENUES Water1,396,185$ 1,537,067$ 1,387,870$ 1,464,3855.5% $ $ 76,515 Sanitary Sewer1,839,0752,154,7052,156,5002,037,150(119,350)-5.5% Refuse1,006,523927,764 975,360988,7001.4% 13,340 Storm Sewer804,717804,332 811,340809,940 -0.2%(1,400) Pavilion/Ice Arena386,095407,805 361,180366,100 4,9201.4% $5,432,595$5,831,673$5,692,250$5,666,275$ (25,975)-0.5% APPROPRIATIONS Water$1,272,243$1,330,163$1,234,153$1,290,7164.6% $ 56,563 Sanitary Sewer1,803,9351,798,9101,993,3482,151,056157,7087.9% Refuse852,403893,361 929,976878,275(51,701)-5.6% Storm Sewer532,690516,890 527,521533,304 5,7831.1% Pavilion/Ice Arena413,696424,040 419,005419,981 9760.2% $4,874,967$4,963,364$5,104,003$5,273,3323.3% $ 169,329 DEBT SERVICE FUNDS (all funds) 2011201220122013Budget ActualActualBudgetBudgetDifference% age REVENUES Property Taxes1,208,527$ 1,288,932$ 1,306,400$ 1,306,400$ -$ Special Fees658,437 577,801 552,000 552,000 - Miscellaneous14,879 23,570 2,245 3,720 1,47565.7% Proceeds from Bond Sale- 6,050,704 - - -0% Operating Transfer In710,977 1,106,746 679,492 850,51925.2% 171,027 $2,592,820$9,047,753$2,540,137$2,712,6396.8% $ 172,502 APPROPRIATIONS Bond Principal$1,345,000$1,635,000$1,635,000$1,775,0008.6% $ 140,000 Bond Interest809,253785,845 752,479676,400 -10.1%(76,079) Miscellaneous other charges6,258117,394 6,050146,566 140,5162322.6% Transfer out 6,172,673- -- -0% $2,160,511$8,710,912$2,393,529$2,597,9668.5% $ 204,437 Total Revenues22,704,39730,663,03722,493,48322,919,477425,9941.9% Total Appropriations21,030,76427,358,68721,644,74721,522,456(122,291)-0.6% Use of Equity or Fund Balance(1,673,633)(3,304,350)(848,736)(1,397,021)(548,285)64.6% 2013 BUDGET CITY OF HOPKINS APPROVED BUDGET SUMMARY – ALL FUNDS REVENUE SUMMARY The total budget represents planned or anticipated revenues for all funds, excluding unbudgeted special revenue funds and capital project funds. The amount of the annual total anticipated revenues fluctuates up or down from year to year, depending on special projects and grants which may occur during the plan budget period. The budget provides guidelines to staff for City operations. 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 $22,746,975. The largest source of revenue by category is property taxes of $12,728,174 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 2013 budgeted taxes increased in total by 0.99% primarily for as a result of a new street debt levy. 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 acquire. Intergovernmental revenues total $704,510 or 3.1% 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. In 2012 the city received an $875,000 Transit Oriented Development grant from the County to assist with a development project. These funds were used to buy down the cost of property that is in the process of being re-developed for a luxury apartment-retail development. Utility fees for water, sewer, refuse and storm sewer account for $5,104,740 of the City’s revenue or 22.44%. 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 2013 BUDGET CITY OF HOPKINS 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 2013 rates for water, sewer, and refuse 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 $1,721,399 or 7.57% of the City’s revenues. The City charges for plan reviews, special police or fire services, parking permits for city parking facilities, facility rental, concessions and ice time. A large portion of the charges for services include plan review fees from building permits which are on the rise again with new development. The significant increase in 2012 was due in fact to commercial re-development and the related plan review fees. Finance relies on plan review fee projections prepared by the City’s Building Official and input from departmental managers on the level of activity expected in their departments when setting the budget for this revenue category. The City budgets conservatively on plan review fee income due to the uncertainty of the development market. Special Assessments and Special Assessment Fees for housing projects are $552,000 or 2.43% 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 2012 two long-term special assessment rolls were completed resulting in a decrease in projected revenue for 2013. Special assessment revenue projections are based on the special assessment rolls and scheduled payments due in the budget year. Permits, licenses and fines are $550,295 or 2.42% of revenues. Permit revenues are dependent on the economy and on future development of the City. Due to the economy commercial development ground to a virtual halt and building permit revenues fell significantly in 2010. The increase in 2012 resulted from tri-annual fie inspections of school buildings, unexpected commercial development, and higher than anticipated fine revenue. The commercial development and higher than expected fine revenue was not budgeted. 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 2013. 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. The City also budgets conservatively for fine revenue as that revenue stream is unpredictable. 2013 BUDGET CITY OF HOPKINS 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 2013 will be about $512,000 or 2.25% 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. In 2012 due to changes in local government programming the City received additional cable franchise fees for public, education and government (PEG) programming. We anticipate receiving PEG fees in 2013 but have set the budget conservatively. Total 2012 actual revenues increased from 2011 from several grants we were received, higher than expected building permit, plan review, fine revenues and franchise fees. The City has continued to be conservative in preparing the 2013 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 COPS grant and a transit orientated development grant. 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. 2013 BUDGET CITY OF HOPKINS Shown below is a chart showing the relationship between all revenue sources. 2013 BUDGET CITY OF HOPKINS APPROPRIATION SUMMARY Appropriations for all funds total $21,522,456. This is less than anticipated revenues for 2013 and results in an excess of $1,397,021 overall. Of that amount $918,285 is from tax increment funds a portion of which will be pooled with other tax increment districts for additional qualifying improvements; $392,943 is from enterprise funds as we work to rebuild fund equity and bring the water and sewer fund to a more stable financial position; $114,673 is from debt revenue exceeding principal and interest payments some of which don’t begin until 2014. The largest source of appropriations by category is employee salaries and benefits at $10,390,769. Employee salary and benefits make up 48.28% of the City’s annual appropriation and represent a 1.24% increase from 2012. In 2012, salaries were held at 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. Also contributing to the small increase is the transfer of dispatch services to the County that resulted in six staff seeking other positions or transferring to the County. Materials, supplies and services make up 29.14% of appropriations at $6,271,450. This amount represents a 1.92% decrease from the 2012 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 2013, the appropriated amount is $15,000 or 0.07% of total appropriations. Anticipated capital costs are for improvements at the Depot Coffee House, a Youth Center operated by the City and a new computer system in the council chambers. 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 2013 increased 18.19% as refunding bonds sold in 2012 were called in 2013. Total appropriations for 2013 are $3,528,317 or 16.39% of total expenditures and include debt paid within the Enterprise Funds. Another 3.29% of appropriations are for depreciation of property and equipment. The six largest programs of the City in 2013 account for 92% of the appropriations budget and are as follows: Public Safety 5.3 million Utilities (water, sewer, storm sewer, refuse) 4.9 million General Government 2.5 million Debt Service 2.6 million Public Works 2.4 million Recreation 2.0 million 2013 BUDGET CITY OF HOPKINS 2013 BUDGET CITY OF HOPKINS REVENUES - ALL FUNDS COMPARATIVE ANALYSIS BY SOURCE ADOPTED 2010201120122013 SOURCEACTUALACTUALACTUALBUDGET Current Revenues PROPERTY TAX$9,795,317$9,944,750$10,194,143$10,485,674 TAX INCREMENT2,147,0072,240,1782,333,4132,242,500 SPECIAL ASSESSMENTS672,785658,437658,437552,000 LICENSE, PERMITS & FINES565,347660,579733,494550,295 INTERGOVERNMENTAL REVENUE683,376721,6871,096,713704,510 CHARGES FOR CURRENT SERVICES1,477,4291,227,2341,491,8071,357,090 INTEREST ON INVESTMENTS67,65148,15659,28336,445 UTILITY SERVICE CHARGES4,720,9424,781,9385,091,1105,104,740 FRANCHISE FEES483,754499,238523,537512,000 OTHER REVENUES299,497698,878918,691364,309 TOTAL CURRENT REVENUES$20,913,105$21,481,075$23,100,628$21,909,563 Other Financing Sources 8,114,632925,046 837,412 1,109,319 TOTAL REVENUES$29,027,737$22,406,121$24,209,947$22,746,975 Less: Inter-Fund Transfers 3,599,632925,0461,109,319837,412 TOTAL REVENUES$25,428,105$21,481,075$23,100,628$21,909,563 EXPENDITURES/EXPENSES - ALL FUNDS COMPARATIVE ANALYSIS BY OBJECTIVE ADOPTED 2010201120122013 OBJECTIVEACTUALACTUALACTUALBUDGET Current Expenditures/Expenses SALARIES AND EMPLOYEE BENEFITS$9,956,828$10,082,550$10,263,036$10,390,769 MATERIALS, SUPPLIES AND SERVICES6,537,0318,257,1976,394,0506,271,450 CAPITAL OUTLAY241,33558,51962,76015,000 DEPRECIATION686,501707,138740,927709,000 DEBT REPAYMENT3,692,0994,621,6572,985,3593,528,317 TOTAL$21,113,794$23,727,061$20,446,132$20,914,536 Other Financing Uses 7,807,437875,897633,235607,920 TOTAL EXPENDITURES$28,921,231$24,602,958$21,079,367$21,522,456 2013 BUDGET 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 several years so any gains as a result of commercial development has been tempered by the fall of residential housing values. One bright spot on the horizon is that Hopkins has a mixed use residential/commercial development that was completed in 2012. This project will added approximately $6 million in market value in 2013. 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 . 2013 BUDGET 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, 69.68%, however a significant percentage, 30.21% 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 2013 is valued at $225,000. Total taxes of $3,468 on an average home in Hopkins helps pay for all levels of governmental services. City Property Tax Levy CITY Shown to the left is the annual cost of taxes on a home valued at $225,000 assuming the value of the home did not change. Starting with 2006 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 $8 increase in City property taxes in 2013. The total City taxes on a $225,000 home would be $1,236 in 2013 as compared to $1,244 in 2012. 2013 BUDGET 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 2013 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 increased for 2013. The storm sewer rate is not expected to increase in the near future. Hopkins utility rd rates continue to rank in the lower 1/3 of the Minneapolis/St. Paul metropolitan area. Monthly Service Cost 2013 Annual Property Tax Cost (average home) Council$8.20 City of Hopkins Average Annual Service Costs Administrative Services$57.41 on an Average Home. Finance$24.22 2013 2012 Legal$3.21 City Property Taxes$1,244.00$1,236.00 Municipal Building$37.34 Water - Consumption Community Services$69.95 7,500 gallons a month Police$470.34 $181.80 $2.02/1,000 gallons Fire$99.86 $176.40 $1.96/1,000 gallons Public Works$252.02 Sewer - Consumption Recreation$24.87 7,500 gallons a month Activity Center$32.38 $351.00 $3.90 1,000 gallons Planning and Community Development$15.13 $337.50 $3.75/1,000 gallons Unallocated $2.40 Debt$44.83 Refuse Collection$250.20$238.20 Debt on Facility Project$101.84 Storm Sewer$60.00$60.00 Annual Cost for City Services$1,244.00 Franchise Fees$40.80$40.80 Total$2,127.80$2,088.90 City Levy – By Purpose 20132012 General Fund$8,834,274$8,784,0910.57%increase Debt$1,306,400$1,306,4000.00%no change PERA$35,500$35,5000.00%no change Capital$125,000$125,0000.00%no change Total Levy$10,301,174$10,250,9910.49%increase In 2013 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 and were not reinstated for 2013. City tax capacity rates of 61.968% result in payments of $1,244 annually or approximately $104 per month for the average homeowner. Net property tax costs by program, was developed by crediting related revenues against appropriate programs expenditures. 2013 BUDGET CITY OF HOPKINS Net annual property tax costs for program budgets Streets & Park Facilities Debt Police Protection Maintenance $101.84 $470.34 $252.02 Fire Protection Council & Other Debt $99.86 Administration $44.83 $68.01 Assessing, Inspections Building MaintenanceActivity Center & $37.34$32.38 City Clerk $69.95 Legal Planning & Finance Recreation $3.21 Zoning $24.22 $24.87 $15.13 The City’s overall net levy increase is 0.49%. The general fund levy increased in 2013 by 0.57% or $50,183. The debt levy remained stable through the use of gas and electric franchise fees that were increased in 2013. Finally the capital levy remained at $125,000 to provide for facility capital needs. The total levy increase for 2013 is $50,183. Fire Chief Dale Specken and Mayor Gene Maxwell presented Life Safety awards to Eliecer Ramirez Vargas and Rebecca Eckhoff for their heroic efforts in rescuing occupants of a Hopkins residential fire. 2013 BUDGET CITY OF HOPKINS Shown to the left are PRINCIPAL TAXPAYERS the main taxpayers in Percentage the City of Hopkins and Taxof Total Tax their percentage of total TaxpayerType of BusinessCapacityCapacity tax capacity. The largest taxpayer Super ValuGrocery Warehouses$1,861,7839.78% comprises 9.78% of American Fund US Invest LPReal Estate$1,675,4168.80% total tax capacity and Excelsior Crossings Invst LLCAgriculture$1,574,4888.27% the next largest Cargill, Inc.Agriculture$686,8733.61% taxpayer comprises Duke Realty LTD PartnershipOffice/Warehouses420,9112.21% 8.80%. The city has a Hopkins Real Estate LLCCar Dealership383,5572.02% diverse and stable tax City Center Ventures LLCFitness Center356,3661.87% base, which provides Hines Reit Mpls Ind, LLCManagement Services351,1941.85% the city with assurance Southwest Real Estate, Inc.Apartments341,6491.80% that tax revenues will Oak Ridge Country ClubGolf Course322,0511.69% Ramsgate ApartmentsApartments318,7861.67%remain stable against EDCO ProductsManufactoring266,6391.40%the loss of a significant Continental Decatur, LLCApartments258,8391.36% taxpayer. Venturian Place, LLCCommercial Condo's254,7191.34% The Luther Company, LLCCar Dealership241,6011.27% City's Total Tax Capacity$19,032,348 PRINCIPAL EMPLOYERS Percentage of Total TaxpayerType of BusinessEmployeesEmployment CargillFood, agricultural, financial and industrial2,35018.112% SuperValuGrocery distributor1,2659.750% GE Water & Process TechnologiesWater systems solutions5504.239% ThermotechAutomotive Products2351.811% ISD 270 HopkinsSchool2151.657% Augustana Chapel View Care CenterHealth Care Services2101.618% Oak Ridge Country ClubCounty/Golf Club2041.572% Rudy Luther's Hopkins HondaCar dealership2001.541% Hopkins Care CenterHealth Care Services1250.963% City of HopkinsMunicipal Government1100.848% Major employers in Hopkins include Cargill an international producer and marketer of food, agricultural, financial and industrial products, followed by Super Valu, a grocery distribution warehouse facility and GE Water & Process Technologies. While these three organizations employ almost 28% of the workforce in Hopkins the City has a diverse group of employers who have had a long-term presence in the City. Changes in Fund Balance Major Funds Fund balance is defined as the difference between a fund’s assets and liabilities. Adequate fund balance is necessary to have funds for emergency or unexpected events, to enhance the City’s financial position and bond ratings, to provide cash for operations prior to receipt of tax revenues and to maximize investment earnings. Working capital balance, defined as current assets less current liabilities is carefully monitored to ensure enough financial flexibility to meet both short and long-term goals for each fund. 2013 BUDGET CITY OF HOPKINS Estimated YE 2012 Fund Balance/% Change$ ChangeReason for WorkingEndingin Fundin FundGreater than Fund NameCapital*RevenuesExpendituresBalanceBalanceBalance10% Variance Major Funds General Fund$5,076,206$10,580,329$10,580,329$5,076,2060.00%$0 Economic 3,678,121240,000286,8143,631,307-1.27%(46,814) Development Special Revenue Fund Art Center(1,108,205)766,310765,418(1,107,313)0.08%892 Municipal State Aid 2,059,962385,94202,445,90418.74%385,942No projects are scheduled Capital Project for 2013 and the state aid Fundallotment received each year is being accumulated for a large project in 2014. 1,812,2884,078,7734,347,7111,543,350-14.84%(268,938)Bonds are scheduled to Permanent Improvement be sold in 2013 for the Revolving Fund2013 street project. Housing Improv 830,734383,300325,743888,2916.93%57,557 Refunding Bonds of 2009B Debt Service Fund Taxable GO 409,479170,500147,580432,3995.60%22,920 Refunding Bonds of 2005B Debt Service Fund Water Enterprise 384,6222,354,3852,299,616439,39114.24%54,769Bonds are scheduled to Fund *be sold in 2013 for the 2013 street & utility project. Sewer Enterprise 549,5902,543,1502,719,056373,684-32.01%(175,906)Bonds are scheduled to Fund *be sold in 2013 for the 2013 street & utility project. Storm Sewer 988,2291,204,9401,084,4041,108,76512.20%120,536Bonds are scheduled to Enterprise Fund *be sold in 2013 for the 2013 street & utility project. Pavilion Enterprise 118,311366,100531,981(47,570)-140.21%(165,881)Bonds were sold in 2012 Fund *for an ice resurfacer to be purchased in 2013. The programs and activities in this department are being evaluated to eliminate the negative working capital The general fund added approximately $185,530 to its fund balance in 2012. This was accomplished by all departments managing their budgets conservatively, reducing or eliminating expenses when appropriate and eliminating non-essential capital items. In addition the transfer of dispatch services in late 2012 to Hennepin County resulted in savings for the Police Department. The 2013 budget was adopted with 2% wage increases and a continuation of conservative budgeting. This is done to keep the levy increase at a minimum recognizing that the economic challenges faced by our taxpayers continue. The general fund is on target with its fund balance goal of 42% of prior year’s expenditures and is at 47% 2013 BUDGET CITY OF HOPKINS of expenditures. This has been accomplished by the reductions identified above and all department managers being particularly conscious of their budgets. Staff continues to work to address how to improve the financial position so that we maintain our fund balance goal. This may involve new or revised revenue options, expenditure adjustments or a combination of all these options. The Economic Development Fund received a transit orientated development (TOD) grant in 2012 that assisted in the development of a vacant clinic site. Demolition will begin in early 2013 for a 136 until luxury apartment/retail complex. The Economic Development fund provides the funding to assist in development efforts in Hopkins. It has a strong fund balance with available resources to assist potential development efforts. The main source of income is a development tax levy which has increased each year. There is a significant fund balance in this fund that is available for economic development but the long term goal is to ensure that revenues are adequate for planned expenditures. The 2013 budget plans to use about $46,800 of fund balance or 1.27%. 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 2013 staffing was restructured to minimize expenses. 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. 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 2013 $385,942 will be added to the fund balance. There are no projects scheduled for 2013, however the Shady Oak road reconstruction is a multi- jurisdictional project that is estimated at $8.2 million. The City’s share is estimated at $2.8 million. The Permanent Improvement Revolving Fund will decrease its fund balance in 2013 as bond funds from 2012 are used for street improvement projects. It is anticipated that we will again be selling bonds in 2013 for the 2013 street improvement project. 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 remains positive due to the sale of bonds for the water portion of the street improvement project scheduled for 2013. The increases implemented pursuant to the Utility Master Plan that was approved in 2007 continue to 2013 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 remains positive due to the sale of bonds for the sewer portion of the street improvement project scheduled for 2013, however working capital will decrease by approximately $175,000 as a result of capital projects that do not qualify for bonding. The increases implemented pursuant to the Utility Master Plan that was approved in 2007 continue to 2013 with a $0.15 increase in rates. The plan calls for annual incremental increases in sewer rates to adequately provide for operations, and capital projects, however fees paid to the Metropolitan Council for wastewater treatment costs have risen faster than projected. Staff periodically reviews and updates the Utility Master Plan to ensure the goals of the plan are being met The plan was reviewed in 2009 and in 2011 with slight modifications made in 2011. It is next scheduled for review in 2013 at which time the plan may again be amended 2013 BUDGET CITY OF HOPKINS The Storm Sewer Enterprise Fund’s working capital increased in 2013 due to the sale of bonds for the storm sewer portion of the street improvement project scheduled for 2013 and a reduction of operating expenditures. The Pavilion Ice Arena’s expenditures continue to exceed revenues; however staff is actively marketing the facility to various groups to increase off season rental income. These efforts are paying off as rental bookings are up for 2013 and the facility is seeing repeat bookings. The facility has debt from equipment certificates sold in 2012 that will be used to purchase a new ice machine in 2013. Projections show the working capital in the black by 2015. Non-Major Funds Estimated YE 2012 Fund Balance/% Change$ ChangeReason for WorkingEndingin Fundin FundGreater than Fund NameCapital*RevenuesExpendituresBalanceBalanceBalance10% Variance Non-Major Funds Special Revenue Funds Chemical (2,503)45,00045,000(2,503)0.00%0 Assessment Parking213,38994,00089,094218,2952.30%4,906 Communications380,235223,500218,264385,4711.38%5,236 Depot Coffee 8,667330,000327,30011,36731.15%2,700Rebuilding fund balance Housefollowing a year of growth for this department. Tax Increment 1,544,5382,257,2241,338,9392,462,82359.45%918,285Current collections are Funds being accumulated to be (aggregate)used for future tax increment project costs throughout all districts. Debt Service 3,372,4592,158,8392,124,6433,406,6551.01%34,196 Funds (aggregate) Enterprise Refuse *619,293988,700822,275785,71826.87%166,425Refuse 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 2012 a portion of those unreimbursed costs were absorbed by the General Fund Fire Department budget The Parking fund, fund balance will remain stable in 2013 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 relieving the Art Center promotional activity expense burden from the communication fund. Currently this fund exceeds its fund balance goals. 2013 BUDGET CITY OF HOPKINS The Depot Coffee House is a chemical free environment for area teens that provides specific programming of interest to them. The Depot Coffee House Youth Project is being supported by the General Fund with a $10,000 transfer as well as the Hopkins-Minnetonka Joint Recreation program ($15,000) and Three Rivers Park District ($15,000). The coffee shop portion of the Youth Center is a successful venture of the Depot and provides funding for the Youth Project. This funding has helped replaced grant funding that has dried up. The teens are excited to be involved in all aspects of the coffee business while learning vital business skills. In conjunction with the coffee business we offer rental of the facility when not used by the youth and we anticipate increased revenues from that source that will supplement the budget. 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 2013 and recycling rates were increased for 2012. Working capital is being built up for future equipment capital needs for the three refuse trucks in the fleet. 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. In 2009 the city was very pleased to receive a bond rating upgrade by Standard and Poor’s from AA- to AA which was reaffirmed in November 2010 and again in September 2012. 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, 2012, was $28,955,000. After reducing the outstanding debt by the amount supported by utilities, and special fees, the per capita debt at December 31, 2012 is $575. The total debt principal and interest due in 2013 is $4,626,829, 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 $2,129,292 in 2022 and to $55,345 in 2026 before the final issue matures in 2028. The ability to retire 86% 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 2013 street improvements in 2013. The actual amount to be bonded is estimated at $3,770,000 and will include as revenue sources a tax levy, utility revenues and special assessments. 2013 BUDGET 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 $1,406,292,285 in 2012. This limitation provides reasonable assurance of the municipality’s ability to pay. The legal debt limit for Hopkins is $42,188,769; projected debt subject to the legal limit for Hopkins is $10,180,000 or 24% of total debt limit allowed. OUTSTANDING DEBT AND PURPOSE 2012AGO Capital Improvement Plan BondsPolice Station Expansion and Remodeling1,905,000$ 2012BGO BondsStreet Improvements4,535,000$ 2012BGO BondsEquipment Purchases970,000$ 2010AGO Improvement BondsStreet Improvements2,570,000$ 2010BGO Refunding BondsCounty Road 3 Improvements Phase II (2002B), Street Improvements (2002A), Sewer (2003A)$ 2,500,000 2009AGO Revenue BondsWater & Sewer Improvements and Refunding of 2000 Water and 1999C Storm Sewer Bonds$ 2,540,000 2009BGO Taxable Housing Improvement Refunding 1999A & 1999B Housing RefundingImprovement Bonds$ 2,415,000 2007AGO Capital Improvement Plan BondsFire Station & Public Works Storage $ 7,480,000 Facility 2007BGO Improvement BondsStreet Improvements1,275,000$ 2005AGO Tax Increment RefundingOaks of Mainstreet Redevelopment400,000$ 2005BTaxable General ObligationWestbrooke Patio Homes Improvements760,000$ 2002AImprovement Revolving BondsStreet Improvements1,605,000$ Total Outstanding Debt December 31, 2012$28,955,000 2013 BUDGET CITY OF HOPKINS SCHEDULE OF DEBT SERVICE REQUIREMENTS – ALL FUNDS TotalTax Increment BondsSpecial Assmnt BondsRevenue Bonds PrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterest 20133,800,000 826,849 535,000 1,700,000 8 3,201 475,000165,881 117,083 20142,525,000 742,308 555,000 240,000 4 2,296 555,000161,434 109,281 20152,595,000 669,646 575,000 240,000 3 7,040 570,000147,034 9 5,469 20162,390,000 594,843 280,000 260,000 3 1,103 585,000131,778 8 4,706 20172,335,000 521,246 280,000 150,000 2 6,603 600,000115,634 7 7,931 20182,400,000 444,585 150,000 2 3,790 620,000 9 8,478 285,000 7 0,606 20192,095,000 372,035 160,000 2 0,490 395,000 8 5,452 295,000 6 2,873 20202,155,000 303,889 160,000 1 6,730 405,000 7 6,794 300,000 5 4,464 20212,235,000 230,957 170,000 1 2,518 415,000 6 7,516 315,000 4 5,274 20221,965,000 161,292 175,000 7,815 400,000 5 7,996 315,000 3 5,694 20231,930,000 96,826 185,000 2,683 415,000 4 8,271 310,000 2 5,941 2024645,000 55,425 , - - 420000 3 8,116 225,000 1 7,309 2025670,000 37,225 - - 435,000 2 7,516 235,000 9,709 2026530,000 21,345 - - 445,000 1 6,386 8 5,000 4,959 2027340,000 11,202 - - 245,000 8,103 9 5,000 3,099 2028345,000 3,795 - - 250,000 2,750 9 5,000 1,045 $ 28,955,000$ 5,093,467$ 4,780,000$ $ 815,443 $ 3 ,590,000$ 304,268$ 7 ,230,0001,249,139 Housing Fee BondsG.O Bonds Revenue PrincipalInterestPrincipalInterest 2013345,000745,000337,034 123,650 2014360,000815,000316,884 112,413 2015370,00099,565840,000290,538 2016390,00085,075875,000262,181 2017405,00068,604900,000232,475 2018415,00050,461930,000201,250 2019285,00034,720960,000168,500 2020295,00021,665995,000134,236 2021310,0007,4401,025,000 9 8,209 2022- 1,075,000- 5 9,787 2023- 1,020,000- 1 9,931 2024-- - - 2025-- - - 2026-- - - 2027-- - - 2028-- - - $3,175,000$10,180,000 $ 603,593$ 2,121,025 2013 BUDGET CITY OF HOPKINS The following is a schedule of the City’s debt by major and non-major funds. Enterprise Fund debt consists of water, sewer, storm sewer debt and Pavilion. Debt Service Fund debt includes, tax increment debt, special assessment debt, and capital projects debt. Water, sewer, storm sewer enterprise fund debt is in major funds, the Pavilion is a non-major fund. SCHEDULE OF DEBT SERVICE REQUIREMENTS – MAJOR AND NON-MAJOR FUNDS Major Enterprise Fund Bonds Total - All FundsWater Fund BondsSewer Fund BondsStorm Sewer BondsNonmajor EnterpriseTotal Enterprise Funds PrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterest 20133,800,000 260,000 46,610 34,39670,000 205,000 826,849 3 2,985 - 3,092 535,000117,083 20142,525,000 265,000 45,991 33,24970,000 205,000 3,350 742,308 2 6,69115,000 555,000109,281 20152,595,000 270,000 38,879 31,39970,000 215,000 575,0003,000 669,646 2 2,19120,000 9 5,469 20162,390,000 33,87995,000 29,32475,000 90,000 280,0002,600 594,843 1 8,90320,000 8 4,706 20172,335,000 31,35495,000 27,01175,000 90,000 280,0002,200 521,246 1 7,36620,000 7 7,931 20182,400,000 100,000 28,616 24,53775,000 90,000 285,0001,800 444,585 1 5,65320,000 7 0,606 20192,095,000 100,000 24,792 21,97480,000 95,000 295,0001,400 372,035 1 4,70720,000 6 2,873 20202,155,000 100,000 22,829 19,14980,000 100,000 300,0001,000 303,889 1 1,48620,000 5 4,464 20212,235,0 00 110,000 19,629 16,04985,000 20,0008,996 600 230,957 100,000 315,000 4 5,274 20221,965,000 110,000 16,179 12,84985,000 20,0006,466 200 161,292 100,000 315,000 3 5,694 20231,930,000 96,826 115,000 12,679 90,0009,549 3,713 105,000 - - 310,000 2 5,941 2024645,000 55,425 90,000 6,149 20,000 115,000 9,079 2,081 - - 225,000 1 7,309 2025670,000 37,225 95,000 2,649 20,000 120,000 5,379 1,681 - - 235,000 9,709 2026530,000 21,345 55,000 2,929 10,000 20,000749 1,281 - - 8 5,000 4,959 2027340,000 11,202 55,000 1,794 15,000 25,000489 815 - - 9 5,000 3,099 2028345,000 25,000165 3,795 5 5,000 605 1 5,000 275 - - 9 5,000 1,045 $ 28,955,000$ 2,020,000$ 185,297$ 175,000$ 4,780,00019,242$ $ 5 ,093,467$ 341,220$ 1 ,080,000$ 269,685$ 1 ,505,000$ 815,443 Major FundNon-Major Funds - Aggregate Hsg Imprv Rfdg Bds of 2009BTaxable Tax Incr Bonds 2005BDebt Service Fund BondsTotal Debt Service Fund PrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterest 2013235,000 88,473 110,000 35,178 2,920,000 586,116 3,265,000 709,766 2014245,000 82,636 115,000 29,776 1,610,000 520,614 1,970,000 633,027 2015250,000 75,518 120,000 24,048 1,650,000 474,612 2,020,000 574,177 2016260,000 67,218 130,000 17,858 1,720,000 425,062 2,110,000 510,137 2017265,000 57,566 140,000 11,038 1,650,000 374,712 2,055,000 443,315 2018270,000 46,728 145,000 1,700,0003,734 323,518 2,115,000 373,979 2019285,000 34,720 - 1,515,000- 274,442 1,800,000 309,162 2020295,000 21,665 - 1,560,000- 227,760 1,855,000 249,425 2021310,000 7,440 - 1,610,000- 178,243 1,920,000 185,683 2022 - - - 1,650,000- 125,598 1,650,000 125,598 2023 - - - 1,620,000- 70,885 1,620,000 70,885 2024 - - - 420,000- 38,116 420,000 38,116 2025 - - - 435,000- 27,516 435,000 27,516 2026 - - - 445,000- 16,386 445,000 16,386 2027 - - - 245,000- 8,103 245,000 8,103 2028 - - - 250,000- 2,750 250,000 2,750 $ 2,415,000$ 481,963$ 760,000$ 121,630$ 21,000,000$ 3,674,432$ 24,175,000$ 4,278,024 2013 BUDGET 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 2019 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. 2013 BUDGET CITY OF HOPKINS 2013 Capital Improvement Projects th Building Improvements – Scheduled for 2013 is the implementation of a new concept called Café on 14 to be placed within the Activity Center, a facility that focuses on senior programming. The concept involves a café where seniors who are participating in programming can purchase coffee, snacks and sandwiches. The City is looking to partner with other organizations to bring this concept to fruition. The Hopkins Center for the Arts built in 1997 has been replacing the original carpet over the last several years. The last area to have carpet replaced is the Stages Theater offices. In addition we will be re- sealing floors in the public restrooms and catering kitchen. 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. Parks – Scheduled for 2013 is the replacement of Oakes 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 Burns Park play court and tennis courts will receive surface and crack repairs along with asphalt overlay and a new color coating system. Repairs are needed to protect the City’s investment, prolong the life of park and improve play conditions. Maintenance savings are estimated at $3,000 per year. 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 2013 the City anticipates spending approximately $6,100,000 on street improvements that also include water, sewer and storm sewer infrastructure 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. Blake Road, a major thoroughfare in Hopkins that is in an economically disadvantaged area has been undergoing improvements in the last few years to spur development and make this area more pedestrian friendly. In 2013 the project continues with the upgrade of lighting and streetscape enhancements. Much of the funding comes from Hennepin County as we focus on this corridor. The enhancements to this area will encourage development both commercial and housing and result in fewer police calls. Savings are already being realized from past improvements in reduced police calls and demands for public works service. Estimated savings as a result of these improvements is $5,000. th Traffic Signals – In 2013 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 2013 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 2013 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. 2013 BUDGET CITY OF HOPKINS CAPITAL IMPROVEMENT PROJECTS FOR 2012 Project Title InvestmentProject Description Hopkins Activity Center$90,000Café on 14th Hopkins Art Center$35,500Carpet replacement - Stages Theater area; Seal floors in public restrooms & kitchen Parks - Play Equipment$60,000Oakes Park - play equipment Parks - Play Equipment$45,000Burns Park play court & tennis courts Residential Street Improvements$6,100,000North Presidential Streets area street improvements Mainstreet Traffic Signals$50,000Upgrade traffic signals on Mainstreet & 11th Ave Public Works - Blake Road Streetscape$200,000Lighting and streetscape enhancements Public Works - Excelsior Blvd$60,000Replace asphalt walk on Excelsior Blvd Water System$95,000Meter replacement Water System$33,000Emergency chlorine shut off valves Sanitary Sewer System$15,000Lift station upgrades Sanitary Sewer System$20,000Emergency water connection with Edina Storm Drainage System$250,000Cottageville Park - storm water improvements Storm Drainage System$19,000Concrete alley repairs TOTAL$7,072,500 The projects described on the previous page are planned for 2013. 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. 2013 BUDGET CITY OF HOPKINS Equipment Replacement Plan 2013 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 $845,400. 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 2013 ERP and have been approved for purchase in 2013. Project TitleProject Description Investment Computer Replacements & $46,500Replacement and/or upgrades of staff computers, printers and Upgradesscanners Arts Center Kitchen$5,000Replacement of catering kitchen equipment Arts Center Theater$6,000Replacement of projector in theater Election Equipment$50,000Replacement of ballot scanners and ballot boxes City Buildings$65,000Upgrade of existing building management control systems at City Hall, Fire Station, Activity Center, and Arts Center Police Patrol Vehicles $71,200Marked patrol cars used by patrol officers to respond to calls, enforce traffic laws and perform general patrol duties Police Administrative Vehicle$29,600Police administrative and detective vehicle Police - Tactical Ballistic Vests$23,200Replacement of SWAT team vests. The tactical vests offer a higher level of protection against weapon assault than the regular duty vests. Police - Taser Replacement$18,600Replacement of Tasers due to age of current equipment. Public Safety - Records $200,000Upgrade/replacement of computer records management system Management Systemused to store, retrieve and transfer required data. Fire - Aerial Truck$54,217Lease payment on portion of aerial truck financed in 2008 Fire - Thermal Imaging Camera$11,500Replacement of thermal imaging camera used to locate victims trapped in a smoke filled building Public Works - 1/2 ton truck$26,400Replacement of pickup used by parks division Public Works - Truckster$19,800Replacement of current vehicle used by parks division for ball field and parks maintenance Public Works - Brush Chipper$25,700Replacement of current chipper used by forestry division and during brush pick up Public Works - 3/4 ton plow truck$21,500Replacement of current vehicle used by the various public works divisions for light hauling and transportation. Public Works - Regenerative Air $185,000Replacement of current sweeper with a vacuum type sweeper that Sweeperwill allow staff to work more efficiently as this proposed sweeper does not use water and has a higher capacity collection. Public Works - Backhoe Loader$75,000Replacement of current unit. Backhoe loader is used by the utility department for repair and installation of underground utilities. Pavilion - Ice Resurfacer & Ice $185,000Due to changes in state statutes for indoor quality the current Edgerpropane model will be replaced with an electric driven model. The ice edger is used for ice maintenance of the ice sheet. TOTAL $1,119,217 2013 BUDGET CITY OF HOPKINS 2013 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 2013. PROJECT TITLE2013 General Fund No items for 2013$0all items requested were eliminated from 2012 budget Special Revenue Funds Communications$5,000Computer in council chambers Depot Coffee House$10,000Computer upgrade and AV equipment for meeting space TOTAL$15,000 Total budgeted capital items from all funding sources totals $8,206,717 for 2013. 2013 BUDGET CITY OF HOPKINS GENERAL FUND BUDGET PROJECTIONS ApprovedProjected 201220132014201520162017 OURCEProjectedBudgetBudgetBudgetBudgetBudget urrent Revenues Property Tax8,721,264$ 8,954,274$ 8,977,982$ $ $ 9,067,762$ 9,158,4409,250,025 509,075 Intergovernmental Revenues 551,534 498,510 436,564 436,538 482,370 License, Permits and Fines710,000 707,374 526,595 675,000 700,000 710,000 235,000 Charges for Current Services 302,526 187,850 250,000 255,000 225,000 Other Revenue74,250123,10050,000 50,000 50,000 55,000 Franchise Fee325,000 292,065 290,000 300,000 310,000 325,000 Total Revenues 10,580,32910,649,013 10,689,546 10,819,300 10,950,81011,084,100 Current Expenses 8,627,600 Salaries and Employee Benefits 8,257,355 8,255,180 8,373,871 8,457,610 8,542,185 2,441,500 Materials, Supplies and Services 2,238,222 2,315,149 2,300,675 2,346,690 2,393,625 Capital outlay6,887 - - - - - Transfer Out10,000 10,000 15,000 15,000 15,000 15,000 Total Expenditures 10,580,32910,512,464 10,689,546 10,819,300 10,950,81011,084,100 Change in Fund Balance136,549 - - - - - Fund Balance$ 4,939,6584,939,658$ 4,939,658$ $ $ 4,939,658$ 4,939,6584,939,658 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 2013 through 2017 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 0.23% for 2013 and an average increase for years 2014-2017 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 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 2013 BUDGET CITY OF HOPKINS 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 received by the City include police and fire aid, which is used to offset pension costs of the police and fire departments and municipal state aid for streets. The City of Hopkins receives less than 5% of its budget from state grants and programs. The revenue we do receive is derived from fees on services to the public – police & fire aid is from fees on insurance policies purchased by individuals and companies, municipal state aid is derived from gas tax. Both these sources remain stable. 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 2013 with revenues continuing to show small increases in the following years as. Fine revenue continues to be stable with slight increases due to implementation of license violation and administrative citations. The additional revenues received in 2012 were from commercial re-development projects. Unless a commercial project is funded it is the City’s practice to not budget for those amounts. Various programs throughout the City generate charges for services and a significant portion of this line item is plan review, housing inspection fees and vacant property registrations. Charges are usually increased by an inflationary rate but were held stable for the 2013 budget. Future projections are to forecast an increase of 1% annually. The general fund, which accounts for one third of the City's operating expenses, has a revenue budget of $10.580.329 and an appropriation budget of the same. The increase in appropriations over 2012 is $23,804 or 0.23%. This was accomplished with the transfer of dispatch services to Hennepin County which is expected to save the city $300,000 per year. The budget was specifically prepared with the intention of meeting the budget goals, while assuring efficiency and effectiveness in all positions. For 2013, the budget was prepared with no new staffing, several positions left open for portions of the year, a 2% 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 2013 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 2013 are the cost of employee health insurance and state mandated increases in employee pension funds along with normal inflationary increases. The council attempts to balance maintaining the current level of services while meeting the increasing needs of the public. An emphasis remained on holding the line on the cost of current government services, while recognizing the increased cost of providing those services. Departments were requested to provide financial information by programs within a department and the council spent considerable time reviewing that information before adopting the budget. The council and staff 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. 2013 BUDGET CITY OF HOPKINS The chart to the left shows 2012 projected actual expenditures along with the 2013 approved budget and projected budgets from 2014 through 2017. 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 84% of General Fund revenues. 2013 BUDGET CITY OF HOPKINS General Fund Appropriation Budget Comparisons – By Department Budget 2011201220122013$ Amount ActualActualBudgetBudgetChangeChange Council $ 78,911 $ 72,965 $ 68,697 $ 68,967 $ 270 0.39% Administrative Services 392,850 466,032 469,132 482,816 13,684 2.92% Finance 213,136 226,974 209,726 214,196 4,470 2.13% Legal 140,213 131,152 135,000 142,000 7,000 5.19% Municipal Building 275,796 289,633 296,863 313,998 17,135 5.77% Community Services 934,453 942,212 941,074 948,729 7,655 0.81% Police 4,432,532 4,504,428 4,530,032 4,394,021 (136,011)-3.00% Fire 859,115 973,973 855,424 916,308 60,884 7.12% Public Works 2,289,066 2,101,739 2,198,677 2,266,002 67,325 3.06% Recreation 524,920 533,971 528,864 544,483 15,619 2.95% Planning & Economic Dev. 112,335 118,588 126,837 129,683 2,846 2.24% Community Development - 82,233 85,999 88,926 2,927 3.40% Unallocated 19,836 19,583 110,200 70,200 (40,000)-36.30% TOTAL $10,273,163 $10,463,483 $10,556,525 $10,580,329 $ 23,804 0.23% 2013 Mayor & Council (The mayor is in the middle) 2013 BUDGET GENERAL FUND BUDGET Revenues and Expenditures ActualActualActualBudgetBudgetPercent 20102011201220122013Change Revenues 0.73% Property Taxes$ 8,498,409$ 8,613,470$ 8,721,264$ 8,889,091$ 8,954,274 Intergovernmental-2.71% 436,282 479,078 551,534 512,370 498,510 Licenses, Permits and Fines8.44% 541,872 634,315 707,374 485,615 526,595 Interest Earnings 1 7,570 1 3,675 1 0,919 2 5,000 1 5,000-40.00% Charges for Services-23.37% 225,800 295,170 302,526 245,150 187,850 Franchise Fees 283,015 289,188 292,065 290,000 290,000 Miscellaneous-1.10% 3 1,425 3 7,729 6 3,330 109,299 108,100 Transfer In - Operating - 499,124 - - - Total Revenues10,034,374 0.23% 10,861,749 10,649,012 10,556,52510,580,329 Expenditures Salaries, Wages and Benefits Salaries and Wages-0.37% 5,898,506 6,002,626 6,087,499 6,096,337 6,073,725 Fringe Benefits-0.60% 2,192,695 2,124,902 2,169,856 2,194,624 2,181,455 Materials, Supplies and Services 4.84% Professional & Technical Services 712,086 803,298 890,288 764,365 801,374 Utilities and Maintenance-4.20% 744,213 871,970 815,306 871,880 835,265 Operations-5.45% 236,028 296,730 345,156 484,611 458,183 City Support Services2.20% 143,465 149,386 151,823 154,954 158,369 4.53% Supplies and Materials 743,002 684,535 599,820 692,035 654,870 Capital Outlay Buildings & Improvements - - - - - Vehicles - - - - - Office Furniture and Equipment - - - - - Equipment 2 ,169 7 ,277 6 ,887 - - Equipment Allocation15.17% 289,355 299,253 314,166 314,166 361,811 Total Expenditures10,818,336 0.16% 11,247,477 11,523,983 11,535,80711,554,717 Transfer Out 1 1,599 1 0,000 1 0,000 1 0,000 1 0,000 Reimbursed Expenditures (976,977) (981,939)(1,021,519) (989,282) (984,388)-0.49% Net Total Expenditures10,275,538 0.23% 9,852,958 10,512,464 10,556,52510,580,329 Excess (deficiency) of Rev. over Exp. 181,416 586,211 136,548 - - Ending Fund Balance 3,996,115 4,582,326 4,718,874 4,582,326 4,718,874 2013 BUDGET CITY OF HOPKINS - 2010 BUDGET UNALLOCATED Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20102011201220122013Change Revenues Property Taxes$8,498,409$8,611,399$8,719,712$8,955,591$8,952,774-0.03% Intergovernmental Revenue23,20023,33120,53220,51020,510 Interest earnings17,57013,6753,71825,00015,000-40.00% Franchise Fees283,015289,188292,065290,000290,000 Miscellaneous3,7642,029658 - - Total Revenues8,825,9588,939,6239,036,6859,291,1019,278,284-0.14% Expenditures Materials, Supplies and Services Operations9,9089,8369,583100,20060,200-39.92% Operating Transfers Transfer from other funds - - - - - Transfer to other funds11,59910,00010,00010,00010,000 Total Expenditures21,50619,83619,583110,20070,200-36.30% Indirectly Funded Amount8,804,4528,919,7879,017,1029,180,9019,208,0840.30% 2013 BUDGET 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 2013: 1. Monitor tax collections 2. Evaluate franchise fee structure 3. Maximize investment earnings FY 2012FY 2013 ApprovedApprovedPercent getBudgetChange Bud REVENUES: Property Taxes$8,887,591 $8,952,774 0.73% Intergovernmental 20,510 20,510 0.00% Interest Earnings 25,000 15,000 -40.00% Franchise Fee 290,000 290,000 0.00% Miscellaneous - - #DIV/0! Total Revenues 9,223,101 9,278,284 0.60% EXPENDITURES: Materials, Supplies & Services 100,200 60,200 -39.92% Operating Transfer 10,000 10,000 -- Total Expenditures 110,200 70,200 -36.30% NET TAX AND GENERAL REVENUE SUPPORTED$9,112,901 $9,208,084 1.80% 2013 BUDGET CITY COUNCIL BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20102011201220122013Change Expenditures Salaries, Wages and Benefits Salaries and Wages24,49124,40025,06224,40024,400 Fringe Benefits2,2612,1691,9922,0971,867-10.97% Materials, Supplies and Services Professional & Technical Services9912,671 -400100-75.00% Operations33,44337,86342,54537,80039,6004.76% City Support Services - - - - -#DIV/0! Supplies and Materials2,0621,8073,3664,0003,000-25.00% Total Expenditures62,35578,91172,96568,69768,9670.39% Indirectly Funded Amount62,35578,91172,96568,69768,9670.39% The City Council Department accounts for the expenses of the mayor and council. 2013 BUDGET 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 2013: 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 2013 Citizen’s Academy and Alumni event 3. Publish 2012 City Annual Report 4. Conduct 2013 State of the City event FY 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits26,497 $ $ 2 6,267-0.87% Materials, Supplies & Services42,200 $ $ 4 2,7001.18% 68,697 $ $ 6 8,967 NET TAX AND GENERAL 0.39% REVENUE SUPPORTED68,697 $ $ 6 8,967 PERSONNEL: Number of FTE positionsMayor and 4 Council Citizen’s Academy Class 2013 BUDGET ADMINISTRATIVE SERVICES BUDGET Revenues and Expenditures ActualActualActualBudgetBudgetPercent 20102011201220122013Change Expenditures Salaries, Wages and Benefits 1.94% Salaries and Wages$ 346,999$ 327,853$ 374,597$ 371,168$ 378,357 Fringe Benefits3.63% 130,039 123,395 144,018 144,489 149,729 Materials, Supplies and Services -4.28% Professional & Technical Services 9,896 15,875 9,126 14,470 13,850 Utilities and Maintenance1.23% 3,318 3,666 4,417 4,065 4,115 Operations4.71% 15,019 14,611 22,400 26,556 27,806 City Support Services 2,028 1,823 1,570 1,619 1,79911.12% Supplies and Materials4.14% 4,871 4,847 5,942 6,155 6,410 Total Expenditures2.38% 512,170 492,068 562,069 568,522 582,066 Reimbursed Expenditures (104,000) (104,000) (102,523) (104,000) (104,000) Net Total Expenditures2.92% 408,170 388,068 459,546 464,522 478,066 Indirectly Funded Amount2.92% 408,170 388,068 459,546 464,522 478,066 The Administrative Services Department is made up of four programs. They are Administration, Personnel, Wellness and Information Technology Services 2013 BUDGET 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 2012FY 2013 MAJOR OBJECTIVES TO BE ACCOMPLISHED ApprovedApprovedPercent IN 2013: BudgetBudgetChange 1. Enhance the agenda and report program that EXPENDITURES: keeps the Council and public informed through Salaries/Wages/Benefits $214,465 $221,671 3.36% meetings and correspondence. Materials, Supplies & Services 22,625 23,389 3.38% 2. Continue the coordinate the future planning of the City through the Capital Improvements Reimbursed Expenditures (66,000) (66,000)0.00% Plan (CIP) program. $171,090 $179,060 3. Continue to operate and enhance the NET TAX AND GENERAL employee wellness program. 4.66% REVENUE SUPPORTED $171,090 $179,060 4. Enhance Leadership and Training for City Council and Staff. PERSONNEL: 5. Prepare a legislative agenda, monitor Number of FTE positions1.952.00 legislative issues, and lobby on issues affecting the City PROGRAM: Administrative Services – Personnel PROGRAM SUMMARY Personnel provides human resource support for departments and employees. This includes coordination of staff recruitment, coordination of employee benefit programs and conducting employee relations’ activities for all City employees. Another aspect of this program is ensuring compliance with state, federal and local laws regarding employment. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2013: 1. Improve benefit information provided to all employees. FY 2012FY 2013 2. Negotiate three contracts. ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits $ 56,990 $ 59,486 4.38% Materials, Supplies & Services 3,415 3,282 -3.89% Reimbursed Expenditures (16,000) (16,000)0.00% $ 44,405 $ 46,768 NET TAX AND GENERAL 5.32% REVENUE SUPPORTED $ 44,405 $ 46,768 PERSONNEL: Number of FTE positions0.450.45 2013 BUDGET CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Administrative Services – Wellness FY 2012FY 2013 PROGRAM SUMMARY ApprovedApprovedPercent The Wellness program of the Administrative Services BudgetBudgetChange Department provides support and activities to encourage EXPENDITURES: overall general good health of city employees. Materials, Supplies & Services 2,000 2,000 0.00% MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2013: NET TAX AND GENERAL Goal 2, Strategy 3 – Healthy City Initiatives: REVENUE SUPPORTED $ 2,000 $ 2,000 0.00% 1. Continue to provide healthy guidance to employees. 2. Provide at least one low cost wellness event each PERSONNEL: month. Number of FTE positions00 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 2013: 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 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits $244,202 $246,929 1.12% Materials, Supplies & Services 29,435 30,059 2.12% Reimbursed Expenditures (22,000) (22,000)0.00% $251,637 $254,988 NET TAX AND GENERAL REVENUE SUPPORTED$251,637 $254,988 1.33% PERSONNEL: Number of FTE positions2.552.55 2013 BUDGET FINANCE BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20102011201220122013Change Revenues Miscellaneous$12,228$18,758$21,381$10,550$10,550 Expenditures Salaries, Wages and Benefits Salaries and Wages261,446265,412269,018270,458272,9550.92% Fringe Benefits82,63288,15687,89387,71088,6621.09% Materials, Supplies and Services Professional & Technical Services28,31625,05871,32926,26029,36011.81% Utilities and Maintenance22,35825,96324,16322,85023,2001.53% Operations9,0259,53510,79812,12512,3501.86% City Support Services2673073193593692.79% Supplies and Materials10,36311,14513,1219,80010,1003.06% Capital Outlay Equipment Allocation1,3111,11482182193814.25% Total Expenditures415,717426,690477,461430,383437,9341.75% Reimbursed Expenditures1.37% ( 223,486) ( 219,178) (256,041) ( 226,282) (229,388) Net Total Expenditures192,232207,512221,420204,101208,5462.18% Indirectly Funded Amount180,004188,754200,039193,551197,9962.30% The Finance department consists of six programs. They are budgeting, Debt Management, General Accounting, Payroll, Tax Increment Financing Reporting, and Utility Billing. 2013 BUDGET 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 2012FY 2013 administrators to determine the overall goals and funding requirements for the city. ApprovedApprovedPercent BudgetBudgetChange MAJOR OBJECTIVES TO BE ACCOMPLISHED IN EXPENDITURES: 2013: Salaries/Wages/Benefits $ 37,205 $ 37,278 0.20% 1. Submit budget for the Government Finance Materials, Supplies & Services 3,044 3,110 2.17% Officers Budget Award. Reimbursed Expenditures (14,000) (14,000)0.00% 2. Update the 20-year Equipment Replacement Plan $ 26,249 $ 26,388 3. Update budget document on the website. NET TAX AND GENERAL REVENUE SUPPORTED $ 26,249 $ 26,388 0.53% 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 2013: 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. FY 2012FY 2013 4. Analyze possibilities of debt refunding(s). ApprovedApprovedPercent 5. Prepare annual debt reporting for county as BudgetBudgetChange required by state statutes EXPENDITURES: Salaries/Wages/Benefits $ 12,408 $ 12,427 0.15% Materials, Supplies & Services 1,670 1,673 0.18% Reimbursed Expenditures (14,078) (14,100)0.16% $ - $ - NET TAX AND GENERAL -- REVENUE SUPPORTED $ - $ - PERSONNEL: Number of FTE positions0.10.1 2013 BUDGET CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Finance – Accounting PROGRAM SUMMARY The Accounting program of the Finance Department FY 2012FY 2013 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 initiating fiscal plans, implementation and REVENUES: control of those plans, accounting and analysis of Miscellaneous $ 5,550 $ 5,550 0.00% transactions. Accounting manages the city’s day-to-day accounting transactions, including accounts receivable, EXPENDITURES: accounts payable, cash receipts and general Salaries/Wages/Benefits $143,349 $144,872 1.06% accounting. The program prepares monthly and Materials, Supplies & Services 40,053 42,327 5.68% quarterly financial statements and compiles the year- Reimbursed Expenditures (50,000) (50,000)0.00% end comprehensive financial report. $133,402 $137,199 2.85% MAJOR OBJECTIVES TO BE ACCOMPLISHED IN NET TAX AND GENERAL 2013: REVENUE SUPPORTED $127,852 $131,649 2.97% 1. Submit CAFR for the GFOA award program. 2. Provide accurate and timely month-end and quarterly financial reports. PERSONNEL: 3. Prepare 20-year Capital Improvement Plan. Number of FTE positions1.71.7 4. Update actuarial study on OPEB obligations. 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 2013: 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 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits $ 59,975 $ 60,384 0.68% Materials, Supplies & Services 5,100 5,225 2.45% Reimbursed Expenditures (20,000) (20,000)0.00% $ 45,075 $ 45,609 NET TAX AND GENERAL 1.18% REVENUE SUPPORTED$ 45,075 $ 45,609 PERSONNEL: Number of FTE positions0.750.75 2013 BUDGET CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Finance – TIF Administration PROGRAM SUMMARY The Tax Increment Financing Administration FY 2012FY 2013 program of the Finance Department records and ApprovedApprovedPercent reports tax increment program activities. It is BudgetBudgetChange charged with the responsibility of ensuring EXPENDITURES: compliance with state statutes and guidelines. Salaries/Wages/Benefits $ 12,408 $ 12,427 0.15% Materials, Supplies & Services 2,495 3,498 40.20% MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2013: Reimbursed Expenditures (14,903) (15,925)6.86% 1. Continue analysis of Tax Increment Financing $ - $ - funds. NET TAX AND GENERAL 2. Assist with implementation of new TIF districts. REVENUE SUPPORTED $ - $ - -- 3. Prepare annual Office of the State Auditor reports. 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 2013: 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 2012FY 2012 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Charges for service $ 5,000 $ 5,000 0.00% EXPENDITURES: Salaries/Wages/Benefits $ 92,823 $ 94,229 1.51% Materials, Supplies & Services 25,478 26,134 2.57% Reimbursed Expenditures (113,301) (115,363)1.82% $ 5,000 $ 5,000 0.00% NET TAX AND GENERAL -- REVENUE SUPPORTED $ - $ - PERSONNEL: Number of FTE positions1.651.65 2013 BUDGET LEGAL BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20102011201220122013Change Revenues Court Fines$ 86,538$ 118,993$ 166,411$ 115,000$ 115,000 Expenditures Materials, Supplies and Services Professional & Technical Services126,233140,213131,152135,000142,0005.19% Operations - - - - - Total Expenditures126,233140,213131,152135,000142,0005.19% Indirectly Funded Amount39,69521,220(35,260)20,00027,00035.00% The Legal Department is made up of two programs. They are Legal Counsel and Prosecution. 2013 BUDGET 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 2013: 1. Prosecute the rights of the City. 2. Prosecute violators of the law. 3. Obtain quality legal representation for the City FY 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Court Fines $ 115,000 $115,000 0.00% EXPENDITURES: Materials, Supplies & Services $ 135,000 $142,000 5.19% NET TAX AND GENERAL 35.00% REVENUE SUPPORTED $ 20,000 $ 27,000 PERSONNEL: The City contracts with a legal firm to represent the City. 2013BUDGET MUNICIPAL BUILDING Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20102011201220122013Change Revenues Sale of Fixed Assets$2,880$2,520$ -$2,500$ - Expenditures Salaries, Wages and Benefits Salaries and Wages87,86290,06394,19693,03093,8430.87% Fringe Benefits38,36241,12441,77242,56250,14117.81% Materials, Supplies and Services Professional & Technical Services36,55132,27534,24242,00042,000 Utilities and Maintenance111,784127,612120,841125,500125,000-0.40% Operations2,5476002,8282,7002,8003.70% City Support Services12,12312,34815,08113,57114,4146.21% Supplies and Materials10,65911,77612,34917,50017,8001.71% Capital Outlay Buildings & Structures - - - - - Office Furniture and Equipment - - - - - Total Expenditures299,887315,796321,309336,863345,9982.71% Reimbursed Expenditures (40,000) (40,000) (31,676) (40,000) (32,000)-20.00% Net Total Expenditures259,887275,796289,633296,863313,9985.77% Indirectly Funded Amount257,007273,276289,633294,363313,9986.67% The Municipal Building Department consists of building maintenace. 2013 BUDGET 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 2013: 1. Continuation of Green Initiatives within City Hall. 2. Explore lobby upgrade. FY 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Rents $ 2,500 $ - -100.00% EXPENDITURES: Salaries/Wages/Benefits $ 135,592 $143,984 6.19% Materials, Supplies & Services 201,271 202,014 0.37% Reimbursed Expenditures (40,000) (32,000)-20.00% $ 296,863 $313,998 5.77% NET TAX AND GENERAL REVENUE SUPPORTED $ 294,363 $313,998 6.67% thst PERSONNEL: Ave and 1 St City Hall at 11 Number of FTE positions1.451.45 2013 BUDGET COMMUNITY SERVICES SUMMARY BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20102011201220122013Change Revenues Licenses$40,866$30,864$12,027$13,000$11,200-13.85% Permits278,376315,126368,227238,500261,4009.60% Current Services103,140147,239101,46981,15087,8508.26% Expenditures Salaries, Wages and Benefits Salaries and Wages573,148570,385572,662575,594585,6001.74% Fringe Benefits161,119175,016178,857168,203173,7553.30% Materials, Supplies and Services Professional & Technical Services147,252152,070159,223156,400147,155-5.91% Utilities and Maintenance10,93711,28210,78613,50513,8802.78% Operations15,12218,94323,49128,34029,2503.21% City Support Services44,34744,65042,15542,34642,310-0.09% Supplies and Materials7,87517,9228,61310,78011,1002.97% Capital Outlay Office Furniture and Equipment - - - - - Equipment Allocation6,2375,1856,9066,9066,679-3.29% Total Expenditures966,036995,4531,002,6921,002,0741,009,7290.76% Reimbursed Expenditures ( 61,000) ( 61,000) (60,480) (61,000) (61,000) Net Total Expenditures905,036934,453942,212941,074948,7290.81% Indirectly Funded Amount482,654441,224460,489608,424588,279-3.31% The Community Service department is made up of four main programs. They ar e Reception, Assessing, Inspections, and City Clerk. 2013 BUDGET CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Community Services – Receptionist FY 2012FY 2013 PROGRAM SUMMARY ApprovedApprovedPercent The Receptionist program of the Community Services Department answers calls at main BudgetBudgetChange switchboard and route calls to various EXPENDITURES: departments. Directs walk-in customers to the Salaries/Wages/Benefits44,067 appropriate department. Sales of dog licenses $ $ 4 6,1394.70% and parking permits occur in this program. Materials, Supplies & Services779$ 909$ 16.69% Receipts are accepted for payment of building $ 44,846 $ 47,048 permits and utility bills. The program also NET TAX AND GENERAL provides clerical and secretarial services to other departments. REVENUE SUPPORTED $ 44,846 $ 47,048 4.91% PERSONNEL: OBJECTIVES TO BE ACCOMPLISHED IN 2013: Number of FTE positions1.451.45 Goal 1, Strategy 3- Provide Accessible and Friendly City Services: 1. Continue to provide excellent customer service 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 2013: 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 FY 2012FY 2013 issues. 3. Maintain the Property and Contact Information ApprovedApprovedPercent in the Incode system. BudgetBudgetChange REVENUES: Charges for service $ 1,200 $ 1,500 25.00% EXPENDITURES: Salaries/Wages/Benefits $ 85,313 $ 86,252 1.10% Materials, Supplies & Services 111,778 114,935 2.82% Reimbursed Expenditures (24,000) (24,000)0.00% $ 173,091 $177,187 2.37% NET TAX AND GENERAL REVENUE SUPPORTED $ 171,891 $175,687 2.21% PERSONNEL: The Special Assessment Clerk is Number of FTE positions1.051.05 available to assist with property tax and assessing related questions. 2013 BUDGET CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Community Services – City Clerk PROGRAM SUMMARY The City updates the City Code as new ordinances are passed, takes minutes at the City Council meetings and transcribes them using a computer. Business FY 2012FY 2013 licenses applications are reviewed prior to issuance. ApprovedApprovedPercent The City Clerk is also the purchasing officer of the getBudgetChange Bud city. REVENUES: Licenses $ 5,000 $ 5,000 0.00% MAJOR OBJECTIVES TO BE ACCOMPLISHED IN EXPENDITURES: 2013: Salaries/Wages/Benefits $ 35,619 $ 37,162 4.33% Goal 2, Strategy 2 – Go Green Materials, Supplies & Services 6,203 6,532 5.30% 1. Purchase “green” or recycled products when Reimbursed Expenditures (25,000) (25,000)0.00% available if the pricing is competitive and product $ 16,822 $ 18,694 11.13% meets quality standards. 2. Ensure that the City Document Archives section NET TAX AND GENERAL of the City’s website contains the most up to date REVENUE SUPPORTED $ 11,822 $ 13,694 15.83% information in all areas listed. 3. Review and update where needed applications PERSONNEL: 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 2013: 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 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits $ 27,037 $ 28,075 3.84% Materials, Supplies & Services 17,236 17,013 -1.29% Reimbursed Expenditures (12,000) (12,000)0.00% $ 32,273 $ 33,088 NET TAX AND GENERAL 2.53% REVENUE SUPPORTED$ 32,273 $ 33,088 PERSONNEL: Number of FTE positions0.350.35 2013 BUDGET 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, and equipment and polling places are prepared. After elections ballots are counted and the results certified to the County and State of Minnesota. Throughout the year citizens are registered to vote. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2013: 1. Recruit and train additional Election Judges for the 2013 Local 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 voting equipment and the possible replacement. 3. Work to better organize information and supplies for Election Judges use on Election Day. FY 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Charges for service $ - $ 5,000 --- EXPENDITURES: Salaries/Wages/Benefits $ 31,379 $ 30,373 -3.21% Materials, Supplies & Services 29,496 15,209 -48.44% $ 60,875 $ 45,582 -25.12% NET TAX AND GENERAL REVENUE SUPPORTED$ 60,875 $ 40,582 -33.34% PERSONNEL: Number of FTE positions0.350.35 2013 BUDGET 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 FY 2012FY 2013 requirements of the state building code. The ApprovedApprovedPercent process begins with easily accessible customer getBudgetChange Bud service at the inspections counter and continues REVENUES: with plan review; permit issuance, inspection of License, Permits, Charges $ 143,500 $147,480 2.77% construction phases and an issuance of a certificate of occupancy. EXPENDITURES: MAJOR OBJECTIVES TO BE ACCOMPLISHED Salaries/Wages/Benefits $ 192,816 $184,270 -4.43% IN 2013: Materials, Supplies & Services 74,719 77,584 3.83% Goal 1, Strategy 3- Provide Accessible and $ 267,535 $261,854 -2.12% Friendly City Services: 1. Work on closing out aging permits from the NET TAX AND GENERAL past years. REVENUE SUPPORTED $ 124,035 $114,374 -7.79% 2. Get Emergency Inspection Packets together in case of natural disaster. PERSONNEL: 3. Update handouts and website. Number of FTE positions2.1952.05 4. Continue to cross train staff and get new Admin Assistant fully trained 5. Get trained on 2012 building code PROGRAM: Community Services – Fire Code Inspection PROGRAM SUMMARY The Fire Code Inspection program of the Community Services Department inspects existing buildings from time to time to insure they are maintained safe in accordance with the minimum safety standards provided in the state fire code. A percentage of commercial and large multiple residential buildings are inspected yearly for fire code violations to insure these structures are maintained safe for their occupants. The focus is on more hazardous occupancies. MAJOR OBJECTIVES TO BE ACCOMPLISHED FY 2012FY 2013 IN 2013: ApprovedApprovedPercent 1. Continue the fire prevention inspection getBudgetChange Bud program. REVENUES: 2. Implement new fire code software. Permits $ - $ 4,000 #DIV/0! -- EXPENDITURES: Salaries/Wages/Benefits $ 34,193 $ 34,828 1.86% Materials, Supplies & Services 301 327 8.64% $ 34,494 $ 35,155 1.92% NET TAX AND GENERAL REVENUE SUPPORTED$ 34,494 $ 31,155 -9.68% PERSONNEL: Number of FTE positions0.350.35 2013 BUDGET CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Community Services – Heating and Plumbing Code Inspection PROGRAM SUMMARY FY 2012FY 2013 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 $ 53,000 $ 53,000 0.00% accessible customer service at the inspections counter and continues with plan review; permit EXPENDITURES: issuance, inspection of construction phases. Become familiar with new gas, mechanical and energy code.Salaries/Wages/Benefits $ 87,584 $ 85,139 -2.79% Materials, Supplies & Services 3,774 3,813 1.03% MAJOR OBJECTIVES TO BE ACCOMPLISHED IN $ 91,358 $ 88,952 -2.63% 2013 1. Close out open permits from 2006-2012. NET TAX AND GENERAL 2. Work with Engineering to get the storm sewer REVENUE SUPPORTED $ 38,358 $ 35,952 -6.27% permitting process revised. PERSONNEL: Number of FTE positions1.041.0 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 2013: 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 2012FY 2013 3. Continue to educate property owners on the ApprovedApprovedPercent new Rental Inspection Point System so they BudgetBudgetChange pass inspections the first time. REVENUES: License, permits, charges $ 111,600 $126,200 13.08% EXPENDITURES: Salaries/Wages/Benefits $ 128,136 $150,015 17.07% Materials, Supplies & Services 7,441 7,580 1.87% $ 135,577 $157,595 16.24% NET TAX AND GENERAL 30.94% REVENUE SUPPORTED$ 23,977 $ 31,395 PERSONNEL: Number of FTE positions1.721.82 2013 BUDGET CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Community Services – Miscellaneous Community Inspection PROGRAM SUMMARY The Miscellaneous Community Inspection program of the Community Services Department responds to FY 2012FY 2013 general nuisance complaints from Hopkins citizens. rovedArovedPercent Apppp Track responses to citizens and results of the BudetBudetChane ggg complaint. REVENUES: Citations, charges for service $ 8,350 $ 8,350 0.00% MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2013: EXPENDITURES: Goal 1, Strategy 3- Provide Accessible and Friendly Salaries/Wages/Benefits $ 75,694 $ 75,136 -0.74% City Services: Materials, Supplies & Services 3,566 3,772 5.78% 1. Continue with spring and fall sweeps and respond $ 79,260 $ 78,908 -0.44% to citizen complaints in a prompt and courteous manner. NET TAX AND GENERAL 2. Send out newsletter in spring regarding sweeps REVENUE SUPPORTED $ 70,910 $ 70,558 -0.50% potential violations. PERSONNEL: Number of FTE positions0.8850.86 PROGRAM: Community Services – Vacant Property Management PROGRAM SUMMARY The Vacant Property Management program of the Community Services Department MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2013: 3. Continue to educate mortgage banks, property managers, realtors and vacant property owners on why we want them to register their property. 4. Send out enforcement letters and billings. FY 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Property Registrations $ 10,000 $ 10,000 0.00% EXPENDITURES: Salaries/Wages/Benefits $ 1,382 $ 1,966 42.26% Materials, Supplies & Services 2,700 2,700 0.00% $ 4,082 $ 4,666 14.31% NET TAX AND GENERAL 5,918$5,334 REVENUE SUPPORTED$ ()()-9.87% PERSONNEL: Number of FTE positions0.020.02 2013 BUDGET POLICE BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20102011201220122013Change Revenues Intergovernmental$223,239$243,884$283,016$296,860$278,000-6.35% Licenses85,91298,88195,80196,20096,000-0.21% Court Fines/Forfeitures26,78040,27548,438 -20,000 Penalties1,8466106652,5001,000 Current Service49,86847,99034,21940,00042,0005.00% Miscellaneous5,0266,17531,1051,0001,50050.00% Expenditures Salaries, Wages and Benefits Salaries and Wages2,821,4062,831,7192,805,2722,861,9492,786,627-2.63% Fringe Benefits945,7701,001,7731,013,9951,036,1881,000,582-3.44% Materials, Supplies and Services Professional & Technical Services90,12195,547152,413119,60093,964-21.43% Utilities and Maintenance102,577124,819134,212134,290105,670-21.31% Operations80,47190,10898,59592,27487,686-4.97% City Support Services117,761103,383114,173118,014128,4528.84% Supplies and Materials151,006185,183185,768165,395162,040-2.03% Capital Outlay Office Furniture and Equipment - - - - - Equipment - - - - - Total Expenditures4,309,1134,432,5324,504,4284,527,7114,365,021-3.59% Indirectly Funded Amount3,916,4433,994,7184,011,1844,091,1513,926,521-4.02% 2013 BUDGET CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Police – Administration PROGRAM SUMMARY To be recognized as a progressive law enforcement agency, striving to enhance the quality of life for all citizens. We seek to collaborate with all stakeholders to continually improve our community. Hopkins Police Department will recruit, hire, and retain the most qualified personnel to fulfill this vision. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2013: 1. To provide effective, efficient, and professional police services to the community. 2. Continue to produce the highest ethical standards and transparent police department. 3. Create trust and partnerships with our multi-cultural community. 4. Promote a proactive, problem-solving culture that focuses on crime prevention. FY 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits386,032 $ $ 3 96,3962.68% Materials, Supplies & Services100,467 $ $ 1 31,04130.43% $ 486,499 $ 527,437 NET TAX AND GENERAL 8.41% REVENUE SUPPORTED$ 486,499 $ 527,437 PERSONNEL: Number of FTE positions3.153.15 2013 BUDGET CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Police –Patrol FY 2012FY 2013 PROGRAM SUMMARY ApprovedApprovedPercent To provide public safety by reducing crime, BudgetBudgetChange enhancing the quality of life for all citizens, REVENUES: while working collaboratively with all Licenses $ 10,200 $ 10,000 -1.96% stakeholders in the community. Intergovernmental Revenue 272,000 278,000 2.21% MAJOR OBJECTIVES TO BE Fines & Forfeits 2,500 21,000 740.00% ACCOMPLISHED IN 2013: Charges for Service 15,000 15,000 0.00% 1. Provide the highest level of Misecllaneous 500 1,000 100.00% professional customer service to the $ 300,200 $ 325,000 8.26% public with each and every contact. EXPENDITURES: 2. Create trust and partnerships with our Salaries/Wages/Benefits $2,210,240 $2,350,932 6.37% multi-cultural community. Materials, Supplies & Services 256,059 276,305 7.91% 3. Provide proactive criminal enforcement through intelligence-lead policing $2,466,299 $2,627,237 6.53% efforts. 4. Committed to identifying and solving NET TAX AND GENERAL problems through building positive 6.28% REVENUE SUPPORTED $2,166,099 $2,302,237 community partnerships PERSONNEL: Number of FTE positions22.723.55 PROGRAM: Police – SWAT Team PROGRAM SUMMARY The Special Weapons and Tactics team (SWAT) of the Hopkins Police Department will provide tactical and rescue operations in high-risk situations, and will receive the highest level of training possible. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2013: 1. Committed to the highest level of training standards and performance standards. 2. Build upon strong working relationships with other consortium SWAT members and partners. 3. Continue to be a leader in the consortium of SWAT teams. FY 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits34,722$ $ 5 2,89052.32% Materials, Supplies & Services21,863$ $ 2 0,721-5.22% $ 56,585 $ 73,611 NET TAX AND GENERAL 30.09% REVENUE SUPPORTED$ 56,585 $ 73,611 PERSONNEL: Number of FTE positions0.450.5 2013 BUDGET CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Police – Reserves PROGRAM SUMMARY The Hopkins Police Reserve Unit provides civilian volunteers with exceptional training to assist the police department with civic events, community-building and outreach efforts. MAJOR OBJECTIVES TO BE FY 2012FY 2013 ACCOMPLISHED IN 2013: ApprovedApprovedPercent 1. Continue to recruit individuals with BudgetBudgetChange diverse backgrounds. EXPENDITURES: 2. Continue to supplement uniformed patrol Salaries/Wages/Benefits16,050$ with calls for service and problem-solving $ 6 ,713-58.17% Materials, Supplies & Services8,417$ efforts. $ 8 ,4490.38% 3. Provide leadership training for Reserve $ 24,467 $ 15,162 Command Staff. NET TAX AND GENERAL 4. Utilize Reserve personnel whenever -38.03% REVENUE SUPPORTED $ 24,467 $ 15,162 feasible to alleviate uniformed patrol calls for service. PERSONNEL: Number of FTE positions0.10.05 PROGRAM: Police – Investigations PROGRAM SUMMARY The Investigations Division of the Police Department conducts thorough criminal investigations on all criminal activity that has occurred in Hopkins, while working with other police agencies to identify suspects and work collaboratively. MAJOR OBJECTIVES TO BE FY 2012FY 2013 ACCOMPLISHED IN 2013: ApprovedApprovedPercent 1. Continue professional development by BudgetBudgetChange training officers in the Investigations Division of the Hopkins Police REVENUES: Department. Licenses $ 76,000 $ 76,000 0.00% 2. Continue to problem solve and reduce crime through crime analysis and EXPENDITURES: intelligence-lead policing. Salaries/Wages/Benefits $ 354,429 $ 538,460 51.92% 3. Work in partnership with other law Materials, Supplies & Services 75,928 76,623 0.92% enforcement agencies to identify $ 430,357 $ 615,083 42.92% crime trends and patterns on a local and regional level. 4. Continue to work in partnership with NET TAX AND GENERAL all divisions within the Police REVENUE SUPPORTED$ 354,357 $ 539,083 52.13% Department. 5. Continue to work in partnership with PERSONNEL: the County Attorney’s Office to Number of FTE positions3.84.9 successfully prosecute individuals involved in criminal behavior. 2013 BUDGET CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Police – Southwest Hennepin Drug Task Force PROGRAM SUMMARY The Southwest Hennepin Drug Task Force is a multi-jurisdictional unit that conducts investigations of illegal drug activity by developing suspect information from citizens, utilizing confidential informants, search warrants, surveillance, and other covert activities. FY 2012FY 2013 MAJOR OBJECTIVES TO BE ACCOMPLISHED ApprovedApprovedPercent IN 2013: BudetBudetChane ggg 1. Continue to work jointly with the Criminal REVENUES: Investigations Unit and Focus Unit to identify Charges for service $ 15,000 $ 15,000 0.00% suspects engaged in criminal activity. 2. Work with all divisions of the Police EXPENDITURES: Department and communicate current crime Salaries/Wages/Benefits $ 104,102 $ 113,272 8.81% trends and/or possible suspects residing in Materials, Supplies & Services 1,190 1,196 0.50% the City. $ 105,292 $ 114,468 8.71% 3. Continue to work nuisance property and crime free multi-housing issues with the Police NET TAX AND GENERAL Services Liaison to remove problem tenants REVENUE SUPPORTED$ 90,292 $ 99,468 10.16% from units who continue to use illegal drugs. PERSONNEL: Number of FTE positions0.950.95 PROGRAM: Police – Pawn Shop Management PROGRAM SUMMARY The Pawn Shop Management program of the Police Department maintains computerized records of pawnshop transactions as required by City ordinance, checks transactions for the presence of reported stolen property and assists other departments in recovering stolen property located in Hopkins pawnshops. FY 2012FY 2013 MAJOR OBJECTIVES TO BE ApprovedApprovedPercent ACCOMPLISHED IN 2013: BudgetBudgetChange 1. Conduct at least one random inventory REVENUES: and compliance check. Licenses $ 5,000 $ 5,000 0.00% Charges for service 10,000 12,000 20.00% $ 15,000 $ 17,000 13.33% EXPENDITURES: Salaries/Wages/Benefits $ 3,355 $ 3,182 -5.16% Materials, Supplies & Services 138 153 10.87% $ 3,493 $ 3,335 -4.52% NET TAX AND GENERAL 18.75% REVENUE SUPPORTED$ (11,507) $ (13,665) PERSONNEL: Number of FTE positions0.050.05 2013 BUDGET CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Police – Crime Prevention Specialist PROGRAM SUMMARY The Police Services Liaison is responsible for presenting and coordinating outreach and crime prevention programs including Neighborhood Watch, National Night Out, Crime-free Multi-housing and classroom instruction of Project Alert. In addition, the Police Services Liaison administers the alarm program, nuisance property program, review and revisions of various ordinances and grant research, application and administration and is the staff liaison to SCIP, One Voice, HBCA, Rental Community Engagement Program and other committees. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2013: 1. Increase participation in Crime Free Multi-Housing program & Neighborhood Watch. 2. Partner with businesses and neighborhoods to reduce crime. 3. Coordinate information sharing with Police/city staff regarding graffiti, nuisance property and other quality of life issues. 4. Coordinate efforts with Joint Community Police Partnership (JCPP) Community Liaison. FY 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Licenses $ 5,000 $ 5,000 0.00% Donations 500 500 0.00% $ 5,500 $ 5,500 0.00% EXPENDITURES: Salaries/Wages/Benefits $ 71,327 $ 89,479 25.45% Materials, Supplies & Services 12,709 17,853 40.48% $ 84,036 $ 107,332 27.72% NET TAX AND GENERAL REVENUE SUPPORTED$ 78,536 $ 101,832 29.66% Cops ‘n Kids Fishing PERSONNEL: Number of FTE positions0.850.85 National Night Out New American Academy 2013 BUDGET CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Police – Support Services PROGRAM SUMMARY This division of the Police Department provides the public, police personnel and other law enforcement agencies with police data requested by mail, telephone and in person. Support Services personnel strives for excellence in quality and accuracy of all police data while managing our Records Management System (RMS), entering, modifying, and quality checking all police records. This division generates state and federal mandated reports, transcribes and processes reports and correspondence and maintains records in accordance with state and local guidelines. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2013: 1. Continue to learn new RMS system (LETG) while seeking to refine processes for better efficiency of records maintenance. 2. Train on new RMS reporting software to FY 2012FY 2013 develop reports to provide more data to the ApprovedApprovedPercent public. BudgetBudgetChange 3. Continue to provide weekly crime statistics EXPENDITURES: and learning additional crime analysis software and mapping tools Salaries/Wages/Benefits244,128$ 235,885$ -3.38% Materials, Supplies & Services8,228 $ $ 8 ,6164.72% $ 252,356 $ 244,501 NET TAX AND GENERAL REVENUE SUPPORTED$ 252,356 $ 244,501 -3.11% PERSONNEL: Number of FTE positions3.953.45 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 2013: 1. Work to integrate the police department network with the city’s network. FY 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Materials, Supplies & Services65,182$ $ 6 5,8551.03% NET TAX AND GENERAL REVENUE SUPPORTED$65,182$ 65,8551.03% PERSONNEL: Number of FTE positions00 2013 BUDGET FIRE BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20102011201220122013Change Revenues Licenses & Permits$2,390$860$5,070$3,500$3,500 State Aid68,13265,03967,16970,00070,000 Federal Grant -3,67536,735 - - County Grant - - - - - Administrative Citations - - - - - Current Service8,1374,40775,47270,0003,000-95.71% Donations -8,5007,000 - - Miscellaneous2,2491,7407,000 - - 80,90884,221198,446143,50076,500-46.69% Expenditures Salaries, Wages and Benefits Salaries and Wages355,108356,070385,579340,931344,3851.01% Fringe Benefits312,848151,666151,394161,106162,6700.97% Materials, Supplies and Services Professional & Technical Services11,61811,57328,00219,90027,14236.39% Utilities and Maintenance56,43459,35964,59656,00058,2003.93% Operations53,04061,07365,52266,91564,385-3.78% City Support Services74,123105,101103,907105,707147,67639.70% Supplies and Materials100,21992,847149,21796,575100,4003.96% Capital Outlay Equipment - -3,891 - - Total Expenditures963,389837,689952,106847,134904,8586.81% Indirectly Funded Amount882,481753,468753,660703,634828,35817.73% The Fire Department is made up of two programs. They are Fire Prevention/Suppression and Emergency Preparedness. 2013 BUDGET 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 FY 2012FY 2013 the fire code, and the review and inspection of ApprovedApprovedPercent new construction. It also provides for public BudgetBudgetChange education and files reports with the State Fire REVENUES: Marshall on department activity, property loss or death due to fire emergencies. Licenses $ 3,500 $ 3,500 0.00% Intergovernmental Revenue 70,000 70,000 0.00% MAJOR OBJECTIVES TO BE Charges for Service 70,000 3,000 -95.71% ACCOMPLISHED IN 2013: $ 143,500 $ 76,500 -46.69% 1. Develop Long Term Strategic and Marketing EXPENDITURES: plan for the department. Salaries/Wages/Benefits $ 502,037 $ 507,055 1.00% 2. Continue Home Fire Prevention Inspection in accordance with the fire prevention grant. Materials, Supplies & Services 349,522 405,288 15.95% 3. Establish Cooking Hood Cleaning and $ 851,559 $ 912,343 7.14% Inspection Program 4. Work with Police Department and School NET TAX AND GENERAL District on the second summer safety camp. 18.05% REVENUE SUPPORTED $ 708,059 $ 835,843 PERSONNEL: Number of FTE positions1.21.25 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 2012FY 2013 MAJOR OBJECTIVES TO BE ApprovedApprovedPercent ACCOMPLISHED IN 2013: BudgetBudgetChange 1. Prepare Table Top for city staff and EXPENDITURES: Police and Fire Command staff Materials, Supplies & Services3,865 2. Establish forms for EOC and equip $ $ 3 ,9652.59% EOC for operations. NET TAX AND GENERAL 2.59% REVENUE SUPPORTED3,865$ 3,965$ PERSONNEL: Number of FTE positions00 2013 BUDGET PUBLIC WORKS BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20102011201220122013Change Revenues Licenses and Permits$13,460$14,980$9,730$9,415$9,415 Intergovernmental121,711135,049137,082125,000130,0004.00% Charges for Services3,7036,9943,3432,7502,750 Other Miscellaneous1,8724,7336,2874,0004,40010.00% Sales of Fixed Assets - -225 - - Expenditures Salaries, Wages and Benefits Salaries and Wages1.64% 1,144,280 1,213,645 1,147,040 1,158,004 1,176,990 Fringe Benefits1.34% 470,387 480,473 466,430 461,461 467,647 Materials, Supplies and Services 13.91% Professional & Technical Services 164,056 221,980 195,581 214,300 244,100 Utilities and Maintenance-1.81% 361,417 428,277 374,627 420,500 412,900 Operations (6,044) (3,399)25.29% (282) 10,280 12,880 City Support Services-1.81% 158,498 156,584 161,888 165,132 162,135 Supplies and Materials6.81% 267,596 314,120 299,287 299,000 319,350 Capital Outlay Buildings & Improvements - - - - - Equipment 2,169 7,277 - - - Total Expenditures2.47% 2,562,361 2,818,958 2,644,570 2,728,677 2,796,002 Reimbursed Expenditures (537,760) (528,492) (550,799) (538,000) (538,000) Net Total Expenditures3.07% 2,033,869 2,281,198 2,093,771 2,190,677 2,258,002 Indirectly Funded Amount3.02% 1,893,123 2,119,442 1,937,104 2,049,512 2,111,437 The Public Works Department is made up of eight programs. They are Buildings, Equipment Services, Administration, Engineering, Streets, Snow Removal, Parks and Tree Service. 2013 BUDGET 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. FY 2012FY 2013 MAJOR OBJECTIVES TO BE ACCOMPLISHED ApprovedApprovedPercent IN 2013: BudgetBudgetChange EXPENDITURES: 1. Maintain PW building to assure a safe and Salaries/Wages/Benefits $ 35,845 $ 36,004 0.44% comfortable environment for all City employees at the lowest cost to the taxpayer. Materials, Supplies & Services 66,894 68,984 3.12% Reimbursed Expenditures (70,000) (70,000)0.00% $ 32,739 $ 34,988 NET TAX AND GENERAL REVENUE SUPPORTED $ 32,739 $ 34,988 6.87% 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. FY 2012FY 2013 MAJOR OBJECTIVES TO BE ApprovedApprovedPercent ACCOMPLISHED IN 2013: 1. Continue aggressive maintenance and BudgetBudgetChange repair of all city equipment. REVENUES: 2. Purchase of ¾ Ton Plow Truck, a ½ Ton Charges for service $ 150 $ 150 0.00% Dump Truck, Trucksteer, brush chipper, and a regenerative air sweeper. EXPENDITURES: Salaries/Wages/Benefits $211,693 $207,163 -2.14% Materials, Supplies & Services 17,536 20,933 19.37% Reimbursed Expenditures (143,000) (143,000)0.00% $ 86,229 $ 85,096 -1.31% NET TAX AND GENERAL REVENUE SUPPORTED$ 86,079 $ 84,946 -1.32% PERSONNEL: Number of FTE positions2.352.35 2013 BUDGET 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. FY 2012FY 2013 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2013: ApprovedApprovedPercent 1. Southwest Transitway (LRT) planning: BudgetBudgetChange protect city interests and position Hopkins for EXPENDITURES: Federal funding to mitigate LRT station Salaries/Wages/Benefits $161,865 $172,084 6.31% impacts Materials, Supplies & Services 13,577 14,261 5.04% 2. Continue to analyze and respond to Reimbursed Expenditures (148,000) (148,000)0.00% opportunities to save energy and be more environmentally conscious while improving $ 27,442 $ 38,345 service quality and efficiency. NET TAX AND GENERAL 3. Complete aggressive 2013 program of street, REVENUE SUPPORTED $ 27,442 $ 38,345 39.73% utility, municipal building and park system improvements. PERSONNEL: 4. Complete Cottageville Park master planning Number of FTE positions1.351.35 work and design of associated storm water drainage improvements PROGRAM: Public Works – Engineering PROGRAM SUMMARY FY 2012FY 2013 The Engineering Division of the Public Works 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 $ 8,100 $ 8,100 0.00% division also acts as the primary liaison to consultants involved with construction projects. EXPENDITURES: Salaries/Wages/Benefits $167,943 $167,700 -0.14% MAJOR OBJECTIVES TO BE ACCOMPLISHED Materials, Supplies & Services $ 29,324 $ 29,303 IN 2013: Reimbursed Expenditures (65,000) (65,000)0.00% 1. Continue to develop utility maps in digitized $132,267 $132,003 -0.20% format and apply to GIS program. 2. Continue field survey and inventory of utility NET TAX AND GENERAL system for GIS application. 3. Oversee implementation of the City’s Capital REVENUE SUPPORTED $124,167 $123,903 -0.21% Improvement Plan. PERSONNEL: Number of FTE positions1.61.6 2013 BUDGET 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 2013: 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 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Licenses $ 1,415 $ 1,415 0.00% Intergovernmental Revenue 125,000 130,000 4.00% Charges for Service 500 500 0.00% $126,915 $131,915 3.94% EXPENDITURES: Salaries/Wages/Benefits $361,011 $361,787 0.21% Materials, Supplies & Services $610,194 $628,612 Reimbursed Expenditures (112,000) (112,000)0.00% $859,205 $878,399 2.23% NET TAX AND GENERAL 1.94% REVENUE SUPPORTED $732,290 $746,484 PERSONNEL: Number of FTE positions4.614.61 2013 BUDGET CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Public Works – Snow & Ice Removal PROGRAM SUMMARY The Snow & Ice Removal program of the Public Works Department provides snow and ice control services of 55 miles of streets, 33 miles of alleys and 9 parking FY 2012FY 2013 lots (including parking ramp) and economic ApprovedApprovedPercent development properties within the city for convenient day-to-day use, and to provide safe BudgetBudgetChange travel and parking conditions. REVENUES: Charges for service $ 500 $ 500 0.00% MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2013: EXPENDITURES: 1. Complete plowing/sanding operations of all Salaries/Wages/Benefits $119,918 $110,449 -7.90% city streets, alleys, parking lots and parking Materials, Supplies & Services 77,632 72,174 -7.03% ramp with 10 hours. 2. Complete snow removal operations in $197,550 $182,623 -7.56% downtown areas/ramp/parking lots in efficient manner to meet parking/traffic flow NET TAX AND GENERAL demands. REVENUE SUPPORTED$197,050 $182,123 -7.58% 3. Increase snow/ice maintenance activities on residential streets. 4. Utilize snow emergency policy to maximize PERSONNEL: safety and snow removal efforts, while Number of FTE positions1.231.23 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. FY 2012FY 2013 Maintenance of Co. Rd 3 median flowers and ApprovedApprovedPercent irrigation is provided. Maintenance of picnic BudgetBudgetChange facilities and trails, trash and rubbish removal REVENUES: from parks is also included. Open skating Charges for service $ 1,500 $ 1,500 0.00% and hockey areas are included. Open Miscellaneous 4,000 4,400 10.00% skating and hockey areas are provided from $ 5,500 $ 5,900 7.27% December through February for outdoor recreational purposes. EXPENDITURES: Salaries/Wages/Benefits $434,634 $440,676 1.39% MAJOR OBJECTIVES TO BE Materials, Supplies & Services 217,831 240,098 10.22% ACCOMPLISHED IN 2013: $652,465 $680,774 4.34% 1. Continue grounds maintenance of all parks including Shady Oak Beach, plus NET TAX AND GENERAL City Hall, 4 well houses, Public Works garage and all other City owned right-of- 4.31% REVENUE SUPPORTED $646,965 $674,874 way. 2. Provide open skating and hockey at the PERSONNEL: following parks: Valley, Harley Hopkins, Number of FTE positions5.095.09 Oakes, Central, Interlachen, open skating only at Hilltop and Burnes. 2013 BUDGET CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Public Works – Forestry PROGRAM SUMMARY The Forestry Division of the Public Works Department provides for the maintenance of all trees. Through the utilization of arboricultural practices, all trees on public property will be maintained in an acceptable condition or removed as necessary to allow for a healthy environment for the urban forest along with providing safe passage for pedestrian and vehicular traffic. Through utilization of tree inspectors residents will be consulted on tree related problems and advised to the solutions. Reforestation of the urban forest is also an activity of this division. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2013: 1. Trim 12% of trees on city boulevards. 2. Replace trees on city property that were lost in 2013 3. Remove all diseased, dead, dying trees on public property. 4. Create an effective data base record keeping system that tracks forestry activities to better manage and maintain public trees. 5. Provide for prompt customer service on requests for trimming and tree consultation FY 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits126,556$ 148,774$ 17.56% Materials, Supplies & Services84,224$ 85,000$ 0.92% $210,780 $233,774 NET TAX AND GENERAL 10.91% REVENUE SUPPORTED$210,780 $233,774 PERSONNEL: Number of FTE positions1.861.86 Tree trimming by staff Trees damaged by disease and marked for removal. 2013 BUDGET RECREATION BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20102011201220122013Change Revenues Miscellaneous$ -$ -$ -$ -$ - Expenditures Salaries, Wages and Benefits Salaries and Wages34,95032,74932,84245,25045,170-0.18% Fringe Benefits4,7464,3514,4425,6014,924-12.08% Materials, Supplies and Services Operations153,057150,736153,768153,947158,7553.12% Supplies and Materials152100235300300 Capital Outlay Improvements Other than Bldg - - - - - Transfer Out - - - - - Total Expenditures192,905187,935191,288205,098209,1491.98% Indirectly Funded Amount192,905187,935191,288205,098209,1491.98% The Recreation Department is made up of five main porgrams. They are Playground, Ice Rink, Park Services, Joint Recreation and Skate Park. 2013 BUDGET 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 2013: 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 2012FY 2013 ApprovedApprovedPercent BudgetChange Budget EXPENDITURES: Salaries/Wages/Benefits21,034 $ $ 2 1,4171.82% NET TAX AND GENERAL REVENUE SUPPORTED21,0341.82% $ $ 2 1,417 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 2013: 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 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits12,192 $ $ 1 3,1137.55% NET TAX AND GENERAL REVENUE SUPPORTED12,1927.55% $ $ 1 3,113 PERSONNEL: Number of Part-time positions3030 2013 BUDGET 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 2013: 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 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits12,810 $ $ 1 2,454-2.78% NET TAX AND GENERAL -2.78% REVENUE SUPPORTED12,810 $ $ 1 2,454 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 2013: 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 FY 2012FY 2013 offerings. ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Materials, Supplies & Services152,000$ 155,000$ 1.97% NET TAX AND GENERAL REVENUE SUPPORTED152,000$ 155,000$1.97% PERSONNEL: Number of Part-time positions9090 2013 BUDGET 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 2013: 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 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits4,816 $ $ 4 ,810-0.12% Materials, Supplies & Services2,247 $ $ 2 ,3554.81% $ 7,063 $ 7,165 NET TAX AND GENERAL 1.44% REVENUE SUPPORTED$ 7,063 $ 7,165 PERSONNEL: Number of FTE positions0.050.05 2013 BUDGET ACTIVITY CENTER BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20102011201220122013Change Revenues Charges for Services$64,721$82,571$67,271$50,300$55,0009.34% Contributions5,7226,3696,00810,7006,000-43.93% Total Revenues70,44388,93973,28061,00061,000 Expenditures Salaries, Wages and Benefits Salaries and Wages139,327166,337177,782169,477170,4610.58% Fringe Benefits35,65254,41555,32457,06559,8904.95% Materials, Supplies and Services Professional & Technical Services29,22945,93636,38921,50032,70052.09% Utilities and Maintenance37,15434,72230,91934,20031,750-7.16% Operations12,8048,71311,36613,80011,900-13.77% City Support Services7,66211,87611,2618,9239,3334.59% Supplies and Materials16,74014,98616,64618,80019,3002.66% Capital Outlay Buildings & Structures - - - - - Office Furniture and Equipment - - - - - Other Equipment - -2,996 - - Total Expenditures278,569336,985342,683323,765335,3343.57% Indirectly Funded Amount208,125248,046269,404262,765274,3344.40% 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. 2013 BUDGET CITY OF HOPKINS FUND 101 – GENERAL FUND PROGRAM: Activity Center – Programming PROGRAM SUMMARY FY 2012FY 2013 The Activity Center Community Use program of ApprovedApprovedPercent the Public Works Department provides a facility BudgetBudgetChange for residents to use for active or passive activities. Staff coordinates all users of the Activity Center. REVENUES: The Hopkins Activity Center also implements and Rent $ 26,000 $ 26,000 0.00% coordinates the Seasoned Adult Program, which Charges for Service 23,500 28,500 21.28% is geared towards the over 50 Hopkins population. Miscellaneous 13,500 8,500 -37.04% $ 63,000 $ 63,000 0.00% MAJOR OBJECTIVES TO BE ACCOMPLISHED EXPENDITURES: IN 2013: Salaries/Wages/Benefits $208,608 $212,185 1.71% 1. Market the Hopkins Activity Center to the over 50 Hopkins population. Materials, Supplies & Services 56,306 64,674 14.86% 2. Develop partnerships with businesses, civic $264,914 $276,859 4.51% organizations, school district and faith community. NET TAX AND GENERAL 3. Work with the Hopkins festivals and special 5.92% REVENUE SUPPORTED $201,914 $213,859 events committees to promote events for the over 50 population. PERSONNEL: Number of FTE positions3.03.0 PROGRAM: Activity Center – Maintenance PROGRAM SUMMARY The Building Maintenance Department of Public Works is responsible for the Maintenance and repair of all City Buildings. The Activity Center maintenance Budget covers the Hopkins Activity Center. In house maintenance personnel and part time cleaning personnel maintain this Building. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2013: 1. Upgrade kitchen to bring it back to commercial use standards FY 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits17,934 $ $ 1 8,1661.29% Materials, Supplies & Services40,917 $ $ 4 0,309-1.49% $ 58,851 $ 58,475 NET TAX AND GENERAL REVENUE SUPPORTED$ 58,851 $ 58,475 -0.64% PERSONNEL: Number of FTE positions0.20.2 2013 BUDGET CITY OF HOPKINS - 2010 BUDGET PLANNING BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20102011201220122013Change Revenues Permits and Licenses$ 1,750$ 1,370$ 1,005$ 1,000$ 1,000 Charges for Services1,9004,0506,9331,5001,500 Total Revenues3,6505,4207,9382,5002,500 Expenditures Salaries, Wages and Benefits Salaries and Wages90,29792,76993,07095,59896,8291.29% Fringe Benefits33,06833,58935,12034,45036,1274.87% Materials, Supplies and Services Professional & Technical Services1111131002,2502,250 Utilities and Maintenance24924926132040025.00% Operations3,2813,2217,40810,70010,8000.93% City Support Services8267876777197778.07% Supplies and Materials3,1381,6061,9512,8002,500-10.71% Total Expenditures130,970132,335138,588146,837149,6831.94% Reimbursed Expenditures (20,000) (20,000) (20,000) (20,000) (20,000) Net Total Expenditures110,970112,335118,588126,837129,6832.24% Indirectly Funded Amount107,320106,915110,650124,337127,1832.29% The Planning and Economic Development Department is made up of thee programs. They are Zoning Activities & Enforcement, Sign & Fence Permits and Miscellaneous Planning. 2013 BUDGET 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 2013: 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 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Licenses & Permits $ 2,500 $ 2,500 0.00% EXPENDITURES: Salaries/Wages/Benefits $130,048 $132,956 2.24% Materials, Supplies & Services 16,789 16,727 -0.37% Reimbursed Expenditures (20,000) (20,000)0.00% $126,837 $129,683 NET TAX AND GENERAL REVENUE SUPPORTED $124,337 $127,183 2.29% PERSONNEL: Number of FTE positions1.351.35 2013 BUDGET CITY OF HOPKINS - 2010 BUDGET COMMUNITY DEVELOPMENT BUDGET Revenues and Expenditures Projected ActualActualActualBudgetBudgetPercent 20102011201220122013Change Revenues $88,9003.37% Miscellaneous$ -$ - $ -$85,999 Expenditures Salaries, Wages and Benefits Salaries and Wages56,018 58,59558,76260,8843.61% 56,777 Fringe Benefits19,411 21,42421,48022,6855.61% 19,123 Materials, Supplies and Services Professional & Technical Services 708 613 4 2 600 600 Operations 175 289 2 22 3,075 2,625-14.63% City Support Services 1,006 1,086 1 ,033 1,182 1,2324.23% Supplies and Materials 499 520 9 17 900 900 Total Expenditures77,817 82,23385,99988,9263.40% 78,408 Indirectly Funded Amount77,817 82,233 78,408 - 26 The Community Development budget accounts for expendiutres used to promote and enhance the community of Hopkins. 2013 BUDGET 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 2013: 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 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Miscellaneous $ 85,999 $ 88,900 3.37% EXPENDITURES: Salaries/Wages/Benefits $ 80,242 $ 83,569 4.15% Materials, Supplies & Services 5,757 5,357 -6.95% $ 85,999 $ 88,926 NET TAX AND GENERAL REVENUE SUPPORTED $ - $ 26 -- PERSONNEL: Number of FTE positions0.850.85 2013 BUDGET STATE CHEMICAL ASSESSMENT BUDGET Revenues and Expenditures Special Revenue Fund 203 Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Intergovernmental $ 177,355 $ 106,285$ 40,615$ 45,000$ 45,000 Refunds & Reimbursements 123 14,482 4,091 - - Total Revenues 177,478 120,767 44,706 45,000 45,000 Expenditures Salaries, Wages and Benefits Salaries and Wages 48,049 39,512 30,181 37,200 37,200 Materials, Supplies and Services Professional & Technical Services 2,618 3,183 2,360 2,000 2,000 Utilities and Maintenance 3,111 6,173 3,073 - - Operations 11,370 24,277 23,571 - - City Support Services 3,936 3,915 3,912 4,024 3,681-8.52% Supplies and Materials 41,161 30,588 15,649 1,776 2,11919.31% Capital Outlay Computers 3,237 - - - - Other Equipment 17,513 - - - - Total Expenditures 130,996 107,649 78,746 45,000 45,000 Excess (deficiency) of revenue over expenditures 46,482 13,118 (34,040) ( 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. 2013 BUDGET 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 2013: 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 2012FY 2013 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 2013 BUDGET ECONOMIC AND COMMUNITY DEVELOPMENT BUDGET Revenues and Expenditures Special Revenue Fund 204 Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues -14.89% Property Taxes$ 72,244$ 122,754$ 264,352$ 175,000$ 225,000 Intergovernmental 6,792 6,800 424,264 - - Interest earnings 36,588 18,600 27,838 4,000 3,000-89.22% Charges for services Miscellaneous 26,482 19,409 421,274 12,000 12,000-97.15% Total Revenues 142,106 167,562 1,137,729 191,000 240,000 Expenditures Salaries, Wages and Benefits Salaries and Wages3.53% 115,758 120,444 122,612 120,494 124,744 Fringe Benefits-8.31% 46,565 48,955 52,092 48,525 44,493 Materials, Supplies and Services 56.16% Professional & Technical Services 38,355 26,624 83,060 39,350 61,450 Utilities and Maintenance 275 799 833 650 650 Operations 14,619 11,242 11,748 6,400 6,400 City Support Services 30,537 29,505 30,482 30,534 26,477-13.29% Supplies and Materials 1,224 1,424 1,827 1,600 1,600 Capital Outla y Land Acquisition - - - - - Other Improvements - - - - - Total Expenditures7.38% 247,331 238,992 302,655 247,553 265,814 Reimbursed Expenditures (40,000) (40,000) (40,000) (40,000) ( 40,000) Net Total Expenditures8.80% 207,331 198,992 262,655 207,553 225,814 Operating Transfer In (Out) (61,000) (61,000) (61,000) (61,000) ( 61,000) Excess (deficiency) of Revenues over Expenditures-39.64% (126,226) (92,429) 814,074 (77,553) ( 46,814) The Economic Development Fund was established to fund development and redeveloment opportunities. Sources are derived from loans, grants and tax levy. 2013 BUDGET CITY OF HOPKINS FUND 204 – ECONOMIC DEVELOPMENT FUND PROGRAM: Project Development and Coordination PROGRAM SUMMARY FY 2012FY 2013 Undertake development activities not directly funded by specific project budgets. Meet with ApprovedApprovedPercent developers, property owners and business BudgetBudgetChange tenants to review possible REVENUES: redevelopment/development activities. Recruit Property Taxes $175,000 $225,000 28.57% desirable businesses to locate in Hopkins. Interest 2,500 2,000 -20.00% Explore developer incentives aimed at Miscellaneous 11,000 11,000 0.00% promoting sustainability and active living. $188,500 $238,000 26.26% MAJOR OBJECTIVES TO BE EXPENDITURES: ACCOMPLISHED IN 2013: Salaries/Wages/Benefits $ 72,317 $ 67,907 -6.10% 1. Monitor income/expenditure of Economic Materials, Supplies & Services $ 28,340 $ 26,975 Development fund. Transfer Out 61,000 61,000 0.00% 2. Prepare program budget. $161,657 $155,882 -3.57% 3. Facilitate redevelopment projects as directed by the City Council. NET TAX AND GENERAL 205.92% REVENUE SUPPORTED $(26,843) $(82,118) 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 2013: 1. Ensure districts are meeting legal and statutory requirements. 2. Continue to monitor all districts. 3. Coordinate development activities within districts. FY 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Salaries/Wages/Benefits $ 52,978 $ 55,217 4.23% Materials, Supplies & Services 14,038 12,198 -13.11% Reimbursed Expenditures (40,000) (40,000)0.00% $ 27,016 $ 27,415 NET TAX AND GENERAL 1.48% REVENUE SUPPORTED$ 27,016 $ 27,415 PERSONNEL: Number of FTE positions0.50.5 2013 BUDGET CITY OF HOPKINS FUND 204 – ECONOMIC DEVELOPMENT FUND PROGRAM: Community Development Activity PROGRAM SUMMARY Promote the City of Hopkins by building on assets, including the small town feel, walkability and Hopkins as a destination. Explore ways to enhance the sense of place through public art and directional signage. MAJOR OBJECTIVES TO BE FY 2012FY 2013 ACCOMPLISHED IN 2013: 1. Work towards the Council-approved goals ApprovedApprovedPercent and objectives. BudgetBudgetChange 2. Continue liaison role for City between both REVENUES: HBCA and Twin West Chamber. Interest $ 1,500 $ 1,000 -33.33% 3. Work with Marketing Task Force to Miscellaneous 1,000 1,000 0.00% implement year four of the Think Hopkins $ 2,500 $ 2,000 -20.00% marketing plan. EXPENDITURES: 4. Facilitate year three of Hopkins Artstreet. Salaries/Wages/Benefits $ 43,724 $ 46,113 5.46% Materials, Supplies & Services 23,656 22,404 -5.29% $ 67,380 $ 68,517 1.69% NET TAX AND GENERAL 2.52% REVENUE SUPPORTED $ 64,880 $ 66,517 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. FY 2012FY 2013 MAJOR OBJECTIVES TO BE ApprovedApprovedPercent ACCOMPLISHED IN 2013: BudgetBudgetChange 1. Facilitate a redevelopment project EXPENDITURES: on the former Park Nicollet clinic site. Materials, Supplies & Services 12,500 35,000 180.00% 2. Begin the design process for the Land Acquisition - - -- th 8 Avenue streetscape project. $ 12,500 $ 35,000 3. Continue to explore the NET TAX AND GENERAL redevelopment/reuse of the 180.00% REVENUE SUPPORTED$ 12,500 $ 35,000 Johnson Building property. PERSONNEL: Number of FTE positions00 2013 BUDGET REAL ESTATE PURCHASES AND SALES BUDGET Revenues and Expenditures Special Revenue Fund 205 Projected ActualActualActualBudgetBudgetPercent 20102011201220122013Change Revenues Miscellaneous$3,700$3,700$3,700$3,700$3,700 Interest9256636012,100500-76.19% Total Revenues4,6254,3634,3015,8004,200 Expenditures Materials, Supplies and Services Professional & Technical Services - - - - - Capital Outlay Land Purchases - - - - - Total Expenditures - - - - - Net Revenues$4,625$4,363$4,301$5,800$4,200-27.59% The Rreal Estate Purchases and Sales Fund records acquisitions and dsposition of property with the proceeds used to improve city buildings. 2013 BUDGET 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 2013: 1. Continue to promote and advertise the sale of surplus lots to achieve the maximum sale price. FY 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Interest $ 2,100 $ 500 -76.19% License & Permits 3,700 3,700 0.00% $ 5,800 $ 4,200 -27.59% EXPENDITURES: Materials, Supplies & Services $ - $ - -- NET TAX AND GENERAL REVENUE SUPPORTED$ (5,800)$(4,200)-27.59% PERSONNEL: Number of FTE positions00 2013 BUDGET TIF DISTRICT 1-2 BUDGET Revenues and Expenditures Special Revenue Fund 211 Projected ActualActualActualBudgetBudgetPercent 20102011201220122013Change Revenues Tax Increment5.45% $ 58,259$ 52,736$ 5 8,172$ 55,000$ 58,000 Interest 1,642 562 1 86 500 100-80.00% Transfers In - - - - - Expenditures Materials, Supplies and Services Professional & Technical Services 840 1,254 4 63 1,000 1,000 Operations 25,266 19,086 1 4,594 2,000 2,000 Capital Outlay TIF projects 75,000 75,000 - - - Total Expenditures 101,106 95,340 1 5,057 3,000 3,000 Transfers out for debt - - - - - Total Expenditures 101,106 95,340 1 5,057 3,000 3,000 Excess (deficiency) of Revenues over Expenditures4.95% (41,204) (42,042) 4 3,301 52,500 55,100 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. 2013 BUDGET 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 2013: 1. Assist in preparation of program budget and other required documentation. 2. Prepare required State Auditor Annual Reports. FY 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Tax Increments $ 55,000 $ 58,000 5.45% Interest 500 100 -80.00% $ 55,500 $ 58,100 4.68% EXPENDITURES: Transfers Out $ 3,000 $ 3,000 0.00% NET TAX AND GENERAL REVENUE SUPPORTED$(52,500)$(55,100)4.95% PERSONNEL: Number of FTE positions00 2013 BUDGET PARKING BUDGET Revenues and Expenditures Special Revenue Fund 214 Projected ActualActualActualBudgetBudgetPercent 20102011201220122013Change Revenues Court Fines$19,775 $21,901 $ 2 2,420$ 20,000$ 20,000 Leased Parking53,199 66,646 111,789 67,000 73,000 8.96% Interest Earned 1,721 1,190 7 88 1,500 1,000-33.33% Federal Grant - - - - - Total Revenues74,695 134,99788,50089,736 94,000 6.21% Expenditures Salaries, Wages and Benefits Salaries and Wages36,174 36,791 2.20%40,402 3 8,125 39,533 Fringe Benefits-0.60% 6,161 6,309 6 ,670 6,510 6,471 Materials, Supplies and Services 4.05% Professional & Technical Services 2,900 7,481 3 ,942 3,700 3,850 Utilities and Maintenance13,715 14,496 3.54%14,630 1 8,412 14,130 Operations 710 345 6 96 1,000 1,000 City Support Services17,746 19,067 -2.79%17,991 1 9,090 18,507 Supplies and Materials 3,782 3,694 5 ,501 4,750 4,750 Capital Outla y Other Improvements14,450 26,055 - - - Total Expenditures95,637114,23892,435 89,09488,130 1.09% Excess (deficiency) of Revenues over Expenditures (24,502)(20,942) 42,562 370 4,9061225.95% 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. 2013 BUDGET CITY OF HOPKINS FUND 214 – PARKING FUND PROGRAM: Parking Enforcement PROGRAM SUMMARY FY 2012FY 2013 Manage and enforce parking rules and ApprovedApprovedPercent regulations. Ensure that parking is available BudgetBudgetChange for customers and parking rules are followed. REVENUES: MAJOR OBJECTIVES TO BE Fines & Forfeits $ 20,000 $ 20,000 0.00% ACCOMPLISHED IN 2013: 1. Monitor the effects of current parking EXPENDITURES: enforcement efforts and recommend Salaries/Wages/Benefits $ 43,033 $ 43,450 0.97% changes as needed. Materials, Supplies & Services 16,203 15,918 -1.76% 2. Continue to accurately account for fine $ 59,236 $ 59,368 revenues that result from parking NET TAX AND GENERAL enforcement. 0.34% REVENUE SUPPORTED$ 39,236 $ 39,368 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 2013: 1. Update parking brochure. FY 2012FY 2013 2. Promote marketing plan for permit parking and municipal ramp. ApprovedApprovedPercent 3. Review funding options for future BudgetBudgetChange maintenance of public lots. REVENUES: 4. Maintain and improve public parking Leases $ 67,000 $ 73,000 8.96% lots as needed. Interest 1,500 1,000 -33.33% 5. Work with Public Works Department to $ 68,500 $ 74,000 8.03% complete analysis of public parking lots EXPENDITURES: Salaries/Wages/Benefits $ 3,010 $ 3,423 13.72% Materials, Supplies & Services 1,623 1,446 -10.91% $ 4,633 $ 4,869 5.09% NET TAX AND GENERAL REVENUE SUPPORTED$(63,867) $(69,131)8.24% PERSONNEL: Number of FTE positions0.10.1 2013 BUDGET 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 2013: 1. Review funding options for future maintenance of parking ramp. 2. Maintain and improve parking ramp as needed. FY 2012FY 2013 ApprovedApprovedPercent getBudgetChange Bud EXPENDITURES: Materials, Supplies & Services 24,261 24,857 2.46% Capital Expenditures - - -- $ 24,261 $ 24,857 NET TAX AND GENERAL REVENUE SUPPORTED$ 24,261 $ 24,857 2.46% PERSONNEL: Number of FTE positions00 2013 BUDGET COMMUNICATIONS BUDGET Revenues and Expenditures Special Revenue Fund 217 Projected ActualActualActualBudgetBudgetPercent 20102011201220122013Change Revenues Franchise Fees $231,472 $200,000 $222,000 11.00% $ 2 00,739$210,050 Interest Earned 2,945 2,177 1 ,469 1,500 1,500 Total Revenue212,226232,941201,500223,500 10.92% 203,685 Expenditures Salaries, Wages and Benefits Salaries and Wages-3.57% 24,018 26,138 2 5,154 26,602 25,653 Fringe Benefits 5,849 6,548 7 ,907 6,609 8,06322.00% Materials, Supplies and Services 1.07% Professional & Technical Services 27,226 27,913 3 3,234 56,542 57,150 Utilities and Maintenance 5 22 4,705 1 3,338 410 60046.34% Operations17.77% 18,698 21,391 1 8,409 18,150 21,375 City Support Services 12,316 14,341 1 4,885 14,537 12,903-11.24% Supplies and Materials 3 77 308 2 ,046 800 600-25.00% Capital Outla y Office Furniture and Equipment 25,395 25,129 5 2,236 - 5,000 86,92086,920 86,92086,920 Transfer Out 86,920 213,393254,130210,570218,264 3.65% Total Expenditures 201,321 Excess (deficiency) of Revenues over Expenditures(21,188) (9,070) 2,363 (1,167) 5,236-157.73% 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. 2013 BUDGET CITY OF HOPKINS FUND 217 – COMMUNICATIONS FUND PROGRAM: Communication and Cable Liaison PROGRAM SUMMARY FY 2012FY 2013 Provide two-way communication between ApprovedApprovedPercent the City and its residents, employees and BudgetBudgetChange businesses; its civic, service, and fraternal organizations; and other communities and REVENUES: government agencies. Written, verbal and Franchise Fees $160,000 $180,000 12.50% visual communication tools. Interest 1,000 1,000 0.00% $161,000 $181,000 12.42% MAJOR OBJECTIVES TO BE EXPENDITURES: ACCOMPLISHED IN 2013: Salaries/Wages/Benefits $ 33,211 $ 33,716 1.52% City Goal 3, Strategy 4: Citizen Engagement Materials, Supplies & Services $ 43,318 $ 44,547 2.84% Initiatives: 1. Complete project to allow the City to Capital Expenditures $ - $ 5,000 #DIV/0! independently program Cable Channel Transfer Out 86,920 86,920 0.00% 16. $163,449 $170,183 4.12% 2. Conduct City Survey 3. Continue to expand e-newsletter and NET TAX AND GENERAL Facebook. REVENUE SUPPORTED$ 2,449 $(10,817)-541.69% 4. Send out weekly e-Newsletter, Hopkins Connections, to listserv members. 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 2013: 1. City Goal 3: Take it to Them - Engage the Rental Community of Hopkins. 2. Increase newsletter distribution to rental properties. FY 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange EXPENDITURES: Materials, Supplies & Services15,077 $ $ 1 4,909-1.11% NET TAX AND GENERAL REVENUE SUPPORTED15,077-1.11% $ $ 1 4,909 PERSONNEL: Number of FTE positions00 2013 BUDGET 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 FY 2012FY 2013 ACCOMPLISHED IN 2013: City Goal 1, Strategy 3: Provide Accessible ApprovedApprovedPercent and Friendly City Services: BudgetBudgetChange 1. Increase interactivity on web site through REVENUES: one or more of the following: Franchise Fees $ 40,000 $ 42,000 5.00% Ability to make payments via the web Interest 500 500 0.00% Customer Response system $ 40,500 $ 42,500 4.94% Ability to fill out forms on the website EXPENDITURES: Web streaming of city council meetings Materials, Supplies & Services $ 31,352 $ 33,172 5.81% NET TAX AND GENERAL REVENUE SUPPORTED $ (9,148) $ (9,328)1.97% PERSONNEL: Number of FTE positions00 2013 BUDGET DEPOT BUDGET Revenues and Exenditure ps Special Revenue Fund 219 Projected ActualActualActualBudgetBudgetPercent 20102011201220122013Change Revenues 50.00% Intergovernmental$ 4,500$ -$ 6,000$ 10,000$ 15,000 Leases and Rentals52.94% 51,064 50,960 72,205 51,000 78,000 Charges for Service - 2,175 8 - - Concessions & Merchandise Sales1466.67% 9,437 12,081 175,298 12,000 188,000 Donations & Contributions28.57% 2,735 2,532 1,345 7,000 9,000 Private Foundation Grants 20,000 20,000 - 25,000 15,000 Interest 44 43 75 - - Miscellaneous 920 - 15,380 15,000 15,000 Transfer In - 10,000 10,000 10,000 10,000 Total Revenues280,311 153.85% 88,700 97,791 130,000330,000 Expenditures Salaries, Wages and Benefits Salaries and Wages109.62% 57,336 57,833 130,329 69,403 145,484 Fringe Benefits123.57% 16,418 17,353 33,540 19,715 44,077 Materials, Supplies and Services Professional & Technical Services 7,581 1,662 8,458 2,000 7,500275.00% Utilities and Maintenance47.55% 14,787 9,748 13,957 7,360 10,860 Operations-1.79% 7,526 4,264 7,830 10,418 10,231 City Support Services2.48% 2,590 2,591 2,634 2,779 2,848 Supplies and Materials 1,510 7,721 84,864 3,500 96,3002651.43% Capital Outlay Improvements100.00% - - 3,637 5,000 10,000 Total Expenditures172.35% 107,747 101,172 285,247 120,175 327,300 Excess (deficiency) of Revenues over expenditures (19,047) ( 3,381) (4,936) 9,825 2,700-72.52% The Depot Coffee House Fund accounts for the operations of the Youth Center, a chemical free environment for area teens to socialize and the operations of the Coffee House which provides a service to the Youth and those on the trail system. 2013 BUDGET CITY OF HOPKINS FUND 219 – DEPOT FUND PROGRAM: Depot Youth Project PROGRAM SUMMARY: Depot Mission To provide a place of community and learning in which student involvement and youth development are encouraged in a chemically-free environment Depot Youth Project staffing and programs are funded primarily through admission fees, rentals, gifts and grants. The Depot programs are intended to offer area youth creativity and leadership opportunities, strengthen youth involvement in community activities, and nurture their growth and development as citizens through interaction with peers, the public, and community partners. The Depot Board and The Partners Advisory Team, consisting of students, community members, community business partners, City, Hopkins School District, Depot Youth Foundation and Three Rivers Park District representatives, guide and support site and programming decisions.. The facility/grounds serve as a Trailhead for Three Rivers Park District and the coffee house which operates 7 days a week is an amenity enjoyed by local residents as well as trail riders/walkers. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2013: 1. Sustain welcoming and chemical free venue for community youth and other gatherings. 2. Continue staffing 2 – 3 night a week year -round youth events programming at the Depot.. 3. Support additional youth-initiated projects. 4. Provide learning lab for Business./Marketing classes at Hopkins High School. 5. Promote partnerships with the Depot in the community, with area students, and youth allies. 6. Create new youth learning opportunities with Coffee Operations staff. 7. Provide workplace training and employment opportunities for youth. FY 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Intergovernmental $ 75,000 $ 80,000 6.67% Charges for Service $ 1,000 $ 8,000 700.00% Foundation/Corporate Grants 25,000 15,000 -40.00% Miscellaneous 19,000 17,000 -10.53% Tranfer In 10,000 10,000 0.00% $130,000 $130,000 0.00% EXPENDITURES: Salaries/Wages/Benefits $ 89,118 $ 87,698 -1.59% Materials, Supplies & Services $ 26,057 $ 30,475 16.96% Capital Expenditures 5,000 10,000 100.00% $120,175 $128,173 6.66% NET TAX AND GENERAL -81.40% REVENUE SUPPORTED $ (9,825) $ (1,827) PERSONNEL: Number of FTE positions2.52.5 2013 BUDGET CITY OF HOPKINS FUND 219 – DEPOT FUND PROGRAM: Depot Coffee Ops PROGRAM SUMMARY: The coffee shop is a natural adjunct to the youth programming at the Depot and provides actual sustenance for youth patrons and the wider community as well as employment and training opportunities for youth. . MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2013: 1. Continue to provide organic fair-trade coffee drinks, locally sourced snacks and hand-crafted baked goods, sandwiches, salads, and soups for youth and adult patrons. 2. Provide barista/customer service training and supervision for youth volunteers and employees. 3. Provide learning lab for Marketing/Business students at Hopkins High School. 4. Offer food choices as well as repair and small merchandise items for biking/trail patrons of the Depot. 5. Develop catering menu and business for youth to operate. 6. Develop food service partnership with Hopkins Activity Center. 7. Market the Depot space for rentals. FY 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Charges for Service $ - $200,000 0.00% EXPENDITURES: Salaries/Wages/Benefits $ - $101,863 0.00% Materials, Supplies & Services - 97,264 0.00% $ - $199,127 0.00% NET TAX AND GENERAL 0.00% REVENUE SUPPORTED $ - $ (873) PERSONNEL: Number of FTE positions03.5 2013 BUDGET TIF DISTRICT 2-6 BUDGET Revenues and Expenditures Special Revenue Fund 226 Projected ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Tax Increment$ 10,320$ 9,418$ 9 ,834$ 9,500$ 9,500 Interest 22 36 8 1 100 100 Miscellaneous 8,741 9,640 9 ,640 9,524 9,524 Transfers In - - 2 4,315 - - Total Revenues 19,083 19,094 4 3,870 19,124 19,124 Expenditures Materials, Supplies and Services Professional & Technical Services 410 460 4 10 450 450 Operations 1,500 1,500 1 ,000 1,500 1,500 Interest Expense - - 9 ,355 - - Capital Outlay TIF projects - - - - - Total Expenditures 1,910 1,960 1 0,765 1,950 1,950 Transfers out for debt - - - - - Total Expenditures 1,910 1,960 1 0,765 1,950 1,950 Excess of Revenues over Expenditures 17,173 17,133 3 3,105 17,174 17,174 The Tax Increment 2-6 Fund is the handicapped housing development. The funds records the use of tax increment receipts. 2013 BUDGET 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 2013: 1. Assist in preparation of program budget and other required documents. 2. Prepare required annual State Auditor report. FY 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Tax Increments $ 9,500 $ 9,500 0.00% Miscellaneous $ 9,524 $ 9,524 Interest 100 100 0.00% $ 19,124 $ 19,124 0.00% EXPENDITURES: Materials, Supplies & Services $ 1,950 $ 1,950 0.00% NET TAX AND GENERAL 0.00% REVENUE SUPPORTED $(17,174) $(17,174) PERSONNEL: Number of FTE positions00 2013 BUDGET TIF DISTRICT 2-9 BUDGET Revenues and Expenditures Special Revenue Fund 229 ActualActualActualBudgetBudgetPercent 20092010201120112012Change Revenues Tax Increment$153,215$136,811$133,034$140,000$140,000 Intergovernmental - Mkt Value Credit9,73810,966192 - - Interest2,6582,1941,6132,5002,000-20.00% Transfers In -37,248 - - - Total Revenues165,612187,219134,838142,500142,000-0.35% Expenditures Materials, Supplies and Services Professional & Technical Services1,5701,8147841,5701,80014.65% Operations4,6964,5393,6362,8822,671-7.32% Transfers out for debt134,000119,000118,000118,000117,000-0.85% Total Expenditures140,266125,353122,420122,452121,471-0.80% Excess (deficiency) of Revenues 20,048 20,5292.40% over Expenditures 25,345 61,866 12,419 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. 2013 BUDGET 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 2013: 1. Assist in preparation of program budget and other required documents. 2. Prepare required annual State Auditor report. FY 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Tax Increments $140,000 $140,000 0.00% Intergovernmental $ - $ - 0.00% Interest 2,500 2,000 -20.00% $142,500 $142,000 -0.35% EXPENDITURES: Materials, Supplies & Services $ 4,452 $ 4,471 0.43% Transfer Out 118,000 117,000 -0.85% $122,452 $121,471 -0.80% NET TAX AND GENERAL REVENUE SUPPORTED$(20,048)$(20,529)2.40% PERSONNEL: Number of FTE positions00 2013 BUDGET TIF DISTRICT 2-11 BUDGET Revenues and Expenditures Projected Special Revenue Fund 231 ActualActualActualBudgetBudgetPercent 20102011201220122013Change Revenues Tax Increment$1,587,598$2,030,408$2,132,273$2,030,000$2,030,000 Interest2,5223,7555,3973,0003,000 Miscellaneous1,630169,152 - - - Total Revenues1,591,7502,203,3162,137,6712,033,0002,033,000 Expenditures Materials, Supplies and Services Professional & Technical Services9,57813,89428,2187,5005,000-33.33% Operations33,02634,723148,74145,50846,7682.77% Debt Service1,236,8841,592,713480,2121,696,700965,000 Capital Outlay TIF projects - - - - - Transfers out 188,000188,000212,315188,000188,000 Total Expenditures1,467,4891,829,329869,4861,937,7081,204,768-37.83% Excess (deficiency) of Revenues over Expenditures 124,262 373,987 1,268,185 95,292 828,232769.15% 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. 2013 BUDGET 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 2013: 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 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Tax Increments $2,030,000 $2,030,000 0.00% Interest 3,000 3,000 0.00% $2,033,000 $2,033,000 0.00% EXPENDITURES: Materials, Supplies & Services $ 53,008 $ 51,768 -2.34% Debt Service - PAYG TIF $1,696,700 $ 965,000 -43.12% Transfer Out 188,000 188,000 0.00% $1,937,708 $1,204,768 -37.83% NET TAX AND GENERAL REVENUE SUPPORTED$ (95,292)$(828,232)769.15% PERSONNEL: Number of FTE positions00 Super Valu Development Excelsior Crossings Development 2013 BUDGET TIF 1-3 5TH AVENUE FLATS Revenues and Expenditures Special Revenue Fund 232 Projected ActualActualActualBudgetBudgetPercent 20102011201220122013Change Revenues Tax Increments$ 19,117$ 10,805$ -$ 10,800$ --100.00% Interest (1,626) ( 2,326) (1,964) - - Development Fees - - - - - Other Miscellaneous 10,929 158,128 - 3,000 - Transfer In - - - - - Total Revenues 28,420 166,608 (1,964) 13,800 --100.00% Expenditures Materials, Supplies and Services Professional & Technical Services 14,228 3,714 3,294 6,350 2,500-60.63% Miscellaneous Other Charges - 33,915 - - - Capital Outlay TIF Projects - - - - - Total Expenditures 14,228 37,629 3,294 6,350 2,500-60.63% Excess of Revenues over Expenditures $ 14,192$ 128,979$ (5,258)$ 7,450$ (2,500)-133.56% TIF 1-3 is the redevelopment of a block within the downtown district. The fund records the costs and reimbursement of project expenses. 2013 BUDGET CITY OF HOPKINS TH FUND 232 – 5 AVENUE FLATS th PROGRAM: Redevelopment Area –6 & Mainstreet PROGRAM SUMMARY Redevelopment of property between Fifth and Sixth Avenues, north of Mainstreet into an apartment development. MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2013: 1. Work with developer on project implementation. FY 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Tax Increments $ 10,800 $ - -100.00% Miscellaneous 3,000 - -100.00% $ 13,800 $ - -100.00% EXPENDITURES: Materials, Supplies & Services $ 6,350 $ 2,500 -60.63% NET TAX AND GENERAL REVENUE SUPPORTED$ (7,450)$ 2,500 -133.56% PERSONNEL: Number of FTE positions00 Proposed Fifth Avenue Flats project 2013 BUDGET TIF 1-4 MARKETPLACE II Revenues and Expenditures Special Revenue Fund 233 Projected ActualActualActualBudgetBudgetPercent 20102011201220122013Change Revenues Tax Increments$ -$ -$ -$ -$ 5,000 Interest (228) (96) (6) - - Development Fees - - - - - Miscellaneous 26,108 6,475 1,386 - - Transfers In - - 201,625 - - Total Revenues 25,880 6,379 203,005 - 5,000 Expenditures Materials, Supplies and Services Professional & Technical Services 10,168 10,127 5,252 7,350 4,500-38.78% Operations - - - - - Miscellaneous - - 400,000 - - Interest Expense - - 614 - 750 Capital Outlay TIF Projects - - - - - Total Expenditures 10,168 10,127 405,865 7,350 5,250-28.57% Excess of Revenues over Expenditures $ 15,711$ (3,748)$ (202,861)$ (7,350)$ (250)-96.60% 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. 2013 BUDGET 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 2013: 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 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Tax Increments $ - $ 5,000 #DIV/0! Miscellaneous - - #DIV/0! $ - $ 5,000 #DIV/0! EXPENDITURES: Materials, Supplies & Services $ 7,350 $ 5,250 -28.57% NET TAX AND GENERAL -96.60% REVENUE SUPPORTED$ 7,350 $ 250 PERSONNEL: Number of FTE positions00 Marketplace & Main project 2013 BUDGET ARTS CENTER Revenues and Expenditures Special Revenue Fund 250 Projected ActualActualActualBudgetBudgetPercent 20102011201220122013Change Revenues 2.92% Current Services$ 311,576$ 323,914$ 328,079$ 338,653$348,540 Grants-90.16% 54,819 59,501 69,114 50,824 5,000 Charges for Service - - - - - Other Revenues264,8508.61% 141,217 161,935 178,722 243,850 Transfers In147,920 147,920 147,920 147,920 147,920 Total Revenues766,310-1.91% 655,531 693,269 723,835 781,247 Operating Expenses Salaries, Wages and Benefits Salaries and Wages307,7160.09% 287,915 313,288 278,297 307,453 Fringe Benefits103,906-0.51% 68,911 90,803 96,544 104,442 Materials, Supplies and Services 143,400-13.82% Professional & Technical Services 179,449 179,874 168,556 166,400 Utilities and Maintenance4.34% 65,543 83,100 78,554 72,630 75,780 Operations0.17% 82,770 101,384 88,006 86,861 87,011 City Support Services5.22% 13,878 10,441 10,717 14,066 14,800 Supplies and Materials18.86% 30,039 33,601 39,153 27,600 32,805 Capital Outlay Equipment - - - - - Total Expenses765,418-1.80% 728,505 812,489 759,828 779,452 Excess (deficiency) of Revenues over Expenditures (35,993)(119,219) (72,974) 1,795 892-50.30% The Arts Center accounts for the maintenance, operation, programming and promotion of the Hopkins Center for the Arts 2013 BUDGET 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 2013: 1. Collaborate with tenants, partners, the business community and residents to meet City Strategic Plan goals, while enhancing the sustainability of the Hopkins Center for the Arts. 2. Build participation in the two concert series and the exhibition program presented by the Center, and strengthen educational/outreach efforts in conjunction with these. 3. Provide leadership and support to the Friends of the Hopkins Center for the Arts in addressing their mission – the objectives being to: (1) Increase the revenue generated by the Hopkins Arts Festival and GiveMN initiative (individual gifts) (2) Expand outreach into the community, and (3) Engage and grow the Friends’ membership and volunteer base, including the Board of Directors. 4. Operate a balanced budget that maximizes revenues, including increasing rental income, and controlling expenses. FY 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange REVENUES: Intergovernmental $ - $ 56,000 #DIV/0! Charges for Service 561,253 532,640 -5.10% Foundation/Corporate Grants 50,824 5,000 -90.16% Miscellaneous 21,250 24,750 16.47% Tranfer In 147,920 147,920 0.00% $ 781,247 $ 766,310 -1.91% EXPENDITURES: Salaries/Wages/Benefits $ 411,895 $ 411,622 -0.07% Materials, Supplies & Services 367,557 353,796 -3.74% $ 779,452 $ 765,418 -1.80% NET TAX AND GENERAL -50.31% REVENUE SUPPORTED $ (1,795) $ (892) PERSONNEL: Number of FTE positions4.6754.3 2013 BUDGET EQUIPMENT REPLACEMENT BUDGET Revenues and Expenses Internal Service Fund 602 Projected ActualActualActualBudgetBudgetPercent 20102011201220122013Change Revenues Current Services$292,867$302,012$316,734$316,736$317,1130.12% Intergovernmental Revenue - - - - - Interest Earnings6,7205,3023,9989,2665,300-42.80% Miscellaneous11,76642,34350,01725,00025,000 Transfers In - -346,274 - - Total Revenues311,353349,657717,022351,002347,413-1.02% Operating Expenses Materials, Supplies and Services Professional & Technical Services3,0022,9972,0542,0002,000 Utilities and Maintenance10,9439,4501,0825,0001,100-78.00% City Support Services10,79811,54711,76711,7678,574-27.14% Total Operating Expenses24,74323,99414,90318,76711,674-37.80% Non-operating expenses498,017476,877440,435485,058551,62013.72% Total Expenses522,760500,871455,338503,825563,29411.80% Net Income (Loss)41.26% ( 211,407) ( 151,214) 261,684 (152,823) (215,881) Capital497,036323,437717,300717,300740,000 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. 2013 BUDGET CITY OF HOPKINS FUND 602 – EQUIPMENT REPLACEMENT FUND PROGRAM: Equipment Replacement FY 2012FY 2013 PROGRAM SUMMARY ApprovedApprovedPercent Coordinate and review twenty-year BudgetBudgetChange equipment replacement plan on an annual REVENUES: basis. The objective of this fund is to stabilize Charges for Service$316,736 $317,113 0.12% the required funding on an annual basis while enabling the fund to purchase scheduled Interest9,266 5,300 -42.80% equipment replacement without issuing Miscellaneous25,000 25,000 0.00% bonds. 351,002 347,413 -1.02% EXPENDITURES: MAJOR OBJECTIVES TO BE Materials, Supplies & Services18,767 11,674 -37.80% ACCOMPLISHED IN 2013: Depreciation470,000 470,000 0.00% 1. Update 5-year Equipment Replacement Debt Service15,058 83,620 455.32% Plan. 2. Analyze future needs. 503,825 565,294 12.20% 3. Review revenue structure to NET SOURCE (USE) accommodate equipment needs as 42.57% OF EQUITY($152,823)($217,881) identified in the long-range 20-year plan. Capital Purchases$282,100 $717,300 154.27% PERSONNEL: Number of FTE positions00 2013 BUDGET WATER BUDGET Revenues and Expenses Enterprise Fund 703 Projected ActualActualActualBudgetBudgetPercent 20102011201220122013Change Revenues 5.53% Current Services$ 1 ,256,500$ 1,276,786$ 1,410,091$ 1,267,500$ 1,337,600 Permits - 8 64 559 1,500 500-66.67% Interest Earnings (2,050) (804) (2,951) - - Miscellaneous6.24% 85,789 121,448 127,221 118,870 126,285 Total Revenues 1,387,8701,537,067 1,464,385 5.51% 1 ,340,202 1,396,185 Operating Expenses Salaries, Wages and Benefits Salaries and Wages1.31% 265,280 289,273 285,979 232,753 235,812 Fringe Benefits2.15% 103,766 115,663 116,657 91,266 93,225 Materials, Supplies and Services Professional & Technical Services 28,068 52,798 73,650 46,800 65,40039.74% Utilities and Maintenance26.33% 193,791 217,162 242,805 222,200 280,700 Operations1.74% 8,188 6,753 10,914 22,460 22,850 City Support Services 224,875 238,428 247,106 231,999 207,145-10.71% Supplies and Materials1.98% 71,071 68,779 73,556 75,900 77,400 Depreciation 228,635 237,985 238,023 239,100 239,100 1,162,4781,288,689 1,221,632 5.09% Total Operating Expenses 1 ,123,674 1,226,841 Non-operating expenses-6.22% 101,678 45,402 41,473 41,675 39,084 Total Expenses 1,204,1531,330,163 1,260,716 4.70% 1 ,225,353 1,272,243 Net Income (Loss)183,71710.86% 114,849 123,941 206,904 203,669 The Water fund is a utility enterprise. The operations of water pumps, wells and distribution are recorded here. 2013 BUDGET CITY OF HOPKINS FUND 703 – WATER FUND PROGRAM: Pumps & Wells PROGRAM SUMMARY The Pumps & Wells program of the Water FY 2012FY 2013 Utility Fund provides maintenance to the ApprovedApprovedPercent City’s water well pumping system so that a continued supply of potable water is furnished BudgetBudgetChange to water customers at the most reasonable cost. Water supply must be maintained at OPERATING REVENUES:$1,500 $500 -66.67% proper levels, as well as bacterial free. Metering devices are also maintained. OPERATING EXPENSES: Salaries/Wages/Benefits127,318 136,882 7.51% MAJOR OBJECTIVES TO BE Materials, Supplies & Services403,276 457,971 13.56% ACCOMPLISHED IN 2013: Produce water supply sufficient to meet the Depreciation Expense107,600 107,600 0.00% needs of 17,000 people. Operating Income (Loss)638,194 702,453 10.07% 1. Flush and check all hydrants annually. 2. Check all wells each day. NON-OPERATING REVENUES:0 0 - 3. Test samples each month to ensure safe water supply. 10.25% NET INCOME (LOSS)($636,694)($701,953) 4. Well # 6 emergency generator installation & Moline tank valve upgrade. 5. Install dehumidifiers in # 4 Treatment PERSONNEL: Plant Number of FTE positions1.311.33 6. Paint High Service Pump Room 7. Install emergency shut off valves for chlorine tanks PROGRAM: Water Distribution PROGRAM SUMMARY FY 2012FY 2013 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 customers at the most reasonable cost. $1,267,700 $1,338,600 5.59% OPERATING REVENUES: Water supply must be maintained at proper levels, as well as bacterial free. Metering OPERATING EXPENSES: devices are also maintained. Salaries/Wages/Benefits196,701 192,155 -2.31% Materials, Supplies & Services226,083 225,524 -0.25% MAJOR OBJECTIVES TO BE Depreciation Expense131,500 131,500 0.00% ACCOMPLISHED IN 2013: -0.92% Operating Income (Loss)554,284 549,179 Produce water supply sufficient to meet the needs of 17,000 people. 118,670 125,285 5.57% NON-OPERATING REVENUES: 1. Flush and check all hydrants annually. (41,675)(39,084)-6.22% NON-OPERATING EXPENSES: 2. Test samples each month to ensure safe water supply. 3. Reduce copper levels at taps to comply 10.78% NET INCOME (LOSS)$790,411 $875,622 with Safe Drinking Water Act. 4. Complete one fifth of residential meter Capital Outlay/Construction$190,000 $1,248,000 556.84% 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. 2013 BUDGET SANITARY SEWER BUDGET Revenues and Expenses Projected ActualActualActualBudgetBudgetPercent 20102011201220122013 Change Revenues Current Services$1,794,813$1,823,054$1,997,092$2,137,500$2,018,000-5.59% Permits230 - -1,0001,000 Interest Earnings 2,256 127 401 - - Miscellaneous17,54215,895157,21218,00018,1500.83% Total Revenues1,814,8411,839,0752,154,7052,156,5002,037,150-5.53% Operating Expenses Salaries, Wages and Benefits Salaries and Wages162,844145,519141,163222,118225,0441.32% Fringe Benefits72,66767,26063,932102,21994,806-7.25% Materials, Supplies and Services Professional & Technical Services43,50610,13718,01356,85098,10072.56% Utilities and Maintenance22,08156,05462,331106,300125,55018.11% Operations1,154,7461,156,7751,138,2251,132,3551,229,9168.62% City Support Services183,584169,028164,748166,956169,0291.24% Supplies and Materials17,23718,97712,37026,50026,9151.57% Depreciation145,096146,326164,931147,000147,000 Total Operating Expenses1,801,7611,770,0761,765,7141,960,2982,116,3607.96% Non-operating expenses50,000 - - - - Total Expenses1,851,7611,770,0761,765,7141,960,2982,116,3607.96% Net Income (Loss) (36,921) 68,999 388,991 196,202 (79,210)-140.37% The Sanitary Sewer fund is a utility enterprise. The operations of the Lift Stations and the Collection/Disposal process is recorded here. 2013 BUDGET CITY OF HOPKINS FUND 707 – SEWER FUND PROGRAM: Lift Stations FY 2012FY 2013 PROGRAM SUMMARY ApprovedApprovedPercent The Lift Stations program of the Sewer BudgetBudgetChange Utility Fund provides maintenance and repairs to the City’s sanitary sewer lift $2,137,500 $2,018,000 -5.59% OPERATING REVENUES: station system. The system is comprised of 6 sanitary sewer lift stations that pump sewage to the Metro Sewer System for OPERATING EXPENSES: disposal. Salaries/Wages/Benefits185,958 183,485 -1.33% Materials, Supplies & Services171,742 185,415 7.96% MAJOR OBJECTIVES TO BE Depreciation Expense88,000 88,000 0.00% ACCOMPLISHED IN 2013: Operating Income (Loss)445,700 456,900 2.51% 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. (LOSS)$1,691,800 $1,561,100 -7.73% NET INCOME 3. Inform neighborhoods prior to scheduled sanitary sewer line PERSONNEL: maintenance. Number of FTE positions1.871.87 4. Verify accuracy and implement new utility mapping system. PROGRAM: Collection & Disposal PROGRAM SUMMARY FY 2012FY 2013 The Collection & Disposal program of ApprovedApprovedPercent the Sewer Utility Fund provides BudgetBudgetChange maintenance to the City’s sanitary sewer system. The system is comprised of OPERATING REVENUES:$19,000 $19,000 0.00% sewers, manholes, and lift stations so that sewage may be transported to the OPERATING EXPENSES: Metro Sewer System for disposal. Salaries/Wages/Benefits138,379 136,365 -1.46% MAJOR OBJECTIVES TO BE Materials, Supplies & Services1,317,219 1,464,095 11.15% ACCOMPLISHED IN 2013: Depreciation Expense59,000 59,000 0.00% 1. Mechanically clean 33% of sanitary Operating Income (Loss)1,514,598 1,659,460 9.56% sewer lines in the City plus monthly checks of manholes in problem 0 150 0.00% NON-OPERATING REVENUES: areas. (33,050)(34,696)4.98% NON-OPERATING EXPENSES: 2. Inform neighborhoods prior to scheduled sanitary sewer line maintenance. 9.57% NET INCOME (LOSS)($1,528,648)($1,675,006) 3. Verify accuracy and implement new utility mapping system. Capital Outlay/Construction$100,000 $715,000 615.00% 4 Repair or replace manhole cover & casting as needed. PERSONNEL: 4. Line & repair sewer mains as Number of FTE positions1.571.59 needed per T.V. reports, also repair of manhole structures. 2013 BUDGET REFUSE BUDGET Revenues and Expenses Projected Enterprise Fund 717 ActualActualActualBudgetBudgetPercent 20102011201220122013Change Revenues Current Services$815,840$ 862,464$ 866,808$ 905,360$ 921,7001.80% County Grant34,19543,69717,79528,00025,000-10.71% Interest Earnings3,4652,6472,6825,0005,000 Miscellaneous36,35274,04540,48037,00037,000 Total Revenues889,853982,852927,764975,360988,7001.37% Operating Expenses Salaries, Wages and Benefits Salaries and Wages145,443172,517227,260241,471231,793-4.01% Fringe Benefits53,778122,29475,38090,45485,786-5.16% Materials, Supplies and Services Professional & Technical Services113,279114,606125,500127,550119,640-6.20% Utilities and Maintenance34,81121,76129,15931,90023,900-25.08% Operations125,420124,226135,318136,080136,050-0.02% City Support Services160,751163,928165,143167,171150,256-10.12% Supplies and Materials58,22851,51455,50554,35049,850-8.28% Depreciation45,97256,26655,09456,00056,000 Total Operating Expenses737,682827,113868,361904,976853,275-5.71% Non-operating expenses25,00025,00025,00025,00025,000 Total Expenses762,682852,113893,361929,976878,275-5.56% Net Income (Loss)127,171 130,739 34,404 143.31%110,425 45,384 The Refuse fund is a utility enterprise. The operations of bulk collections, yard waste, recycling, brush service and refuse disposal are recorded here. 2013 BUDGET CITY OF HOPKINS FUND 717 – REFUSE FUND PROGRAM: Bulk Collection FY 2012FY 2013 PROGRAM SUMMARY ApprovedApprovedPercent The Bulk Collection program of the BudgetBudgetChange Refuse Utility Fund is a user fee based service that provides bulk item pickup for larger items. Pick ups are scheduled $15,000 $15,000 0.00% OPERATING REVENUES: on a call-in basis and take place Thursdays throughout the year. A bulk OPERATING EXPENSES: item drop off event is provided twice per Salaries/Wages/Benefits15,752 15,263 -3.10% year (spring & fall). Materials, Supplies & Services25,017 24,337 -2.72% -2.87% Operating Income (Loss)40,769 39,600 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2013: 1. Review and expand user fee based NET INCOME (LOSS)($25,769)($24,600)-4.54% system. (Council Approval Required) 2. Improve drop off procedures and PERSONNEL: increase efficiency at our bi-annual Number of FTE positions0.260.26 drop offs. PROGRAM: Yard Waste/Leaf Collection PROGRAM SUMMARY The Yard Waste/Leaf Collection program of the Refuse Utility Fund is a user fee based service that provides bagged yard waste and leaf collection weekly, mid-April through November, for Hopkins residential refuse customers. (Subject to change upon Council review.) A free drop-off site is also available to Hopkins residents three times a week. FY 2012FY 2013 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2013: ApprovedApprovedPercent 1. Continue to explore ways to BudgetBudgetChange improve our user fee based system. OPERATING REVENUES:$18,500 $8,000 -56.76% (Council Approval Required) 2. Monitor usage of free residential OPERATING EXPENSES: drop off site. Salaries/Wages/Benefits40,872 38,186 -6.57% 3. Track impact of curbside fee increase and compostable bag Materials, Supplies & Services32,347 26,863 -16.95% requirement. -11.16% Operating Income (Loss)73,219 65,049 4.26% NET INCOME (LOSS)($54,719)($57,049) PERSONNEL: Number of FTE positions0.620.62 2013 BUDGET CITY OF HOPKINS FUND 717 – REFUSE FUND PROGRAM: Recycle PROGRAM SUMMARY The Recycle program of the Refuse Utility FY 2012FY 2013 Fund provides bi-weekly single stream ApprovedApprovedPercent recycle collection for 2,990 residences in the City Service area. Collection is BudgetBudgetChange provided by a private licensed hauler who is contracted by the City. Commercial and $144,000 $144,000 0.00% OPERATING REVENUES: multi-family properties are required to contract independently for recycling OPERATING EXPENSES: services. Salaries/Wages/Benefits34,748 34,564 -0.53% Materials, Supplies & Services166,005 153,427 -7.58% MAJOR OBJECTIVES TO BE Operating Income (Loss)200,753 187,991 -6.36% ACCOMPLISHED IN 2013: 1. Monitor the Single Stream Recycling NON-OPERATING REVENUES:58,000 55,000 -5.17% Program and work with residents to increase the volume of waste NET INCOME (LOSS)$1,247 $11,009 782.84% recycled. 2. Verify compliance of commercial and PERSONNEL: multi-family properties. 3. Continue to promote waste Number of FTE positions0.410.41 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.) MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2013: 1. Continue to explore ways to improve our user fee based system. (Council FY 2012FY 2013 Approval Required) ApprovedApprovedPercent 2. Monitor impact of curbside brush pick-up BudgetBudgetChange fee increase on program usage. 3. Continue free residential drop off system. $0 $0 0.00% OPERATING REVENUES: OPERATING EXPENSES: Salaries/Wages/Benefits53,369 56,273 5.44% Materials, Supplies & Services31,278 29,436 -5.89% 1.25% Operating Income (Loss)84,647 85,709 NET INCOME (LOSS)($84,647)($85,709)1.25% PERSONNEL: Number of FTE positions0.6550.655 2013 BUDGET 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 2013: 1. Continue to improve refuse collection service to our residents. 2. Maintain excellent customer service through monitoring of operations and communicating with residents. FY 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange OPERATING REVENUES:$727,860 $754,700 3.69% OPERATING EXPENSES: Salaries/Wages/Benefits184,184 173,293 -5.91% Materials, Supplies & Services262,404 245,633 -6.39% Depreciation Expense56,000 56,000 0.00% Operating Income (Loss)502,588 474,926 -5.50% 12,000 12,000 0.00% NON-OPERATING REVENUES: (25,000)(25,000)0.00% NON-OPERATING EXPENSES: 25.68% NET INCOME (LOSS)$212,272 $266,774 Capital Outlay/Construction$0 $0 - PERSONNEL: Number of FTE positions2.1452.145 2013 BUDGET STORM SEWER BUDGET Revenues and Expenses Projected Enterprise Fund 740 ActualActualActualBudgetBudgetPercent 20122013 201020112012Change Revenues Current Services$803,889$803,417$801,345$810,140$808,9401.10% Interest Earnings 1,361 1,300 2,987 1,200 1,000-59.82% Total Revenues805,250804,717804,332811,340809,9400.87% Operating Expenses Salaries, Wages and Benefits Salaries and Wages34,44336,81044,11447,36446,5857.37% Fringe Benefits11,74514,99015,06416,91416,52812.28% Materials, Supplies and Services Professional & Technical Services1,40814,6921,0009,2009,000820.00% Utilities and Maintenance4,7736,2274,6507,20026,00054.84% City Support Services76,77076,56378,72781,62185,4063.68% Supplies and Materials9461,5021,0901,0001,000-8.27% Depreciation198,860198,840215,432198,900198,900 Total Operating Expenses328,945349,624360,077362,199383,4190.59% Non-operating expenses90,573161,389147,084147,322149,8850.16% Total Expenses419,518511,013507,162509,521533,3040.47% Net Income385,732293,704297,171301,819276,6361.56% The Storm Sewer fund is a utility enterprise. The reconstruction of storm sewers and ponding for drainage throughout the city is recorded here. 2013 BUDGET 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. FY 2012FY 2013 MAJOR OBJECTIVES TO BE ACCOMPLISHED IN 2013: ApprovedApprovedPercent 1. Continue upgrades of storm water BudgetBudgetChange system including catch basin maintenance upgrades and open OPERATING REVENUES:$810,140 $808,940 -0.15% drainage ditch maintenance. 2. Continue reviewing overall city storm OPERATING EXPENSES: water drainage system and meet all requirements of city’s National Salaries/Wages/Benefits64,278 63,113 -1.81% Pollution Discharge Elimination Materials, Supplies & Services117,021 121,406 3.75% System (NPDES), Phase II Storm Depreciation Expense198,900 198,900 0.00% Water Pollution Prevention Plan Operating Income (Loss)380,199 383,419 0.85% (SWPPP). 3. Complete construction of watershed- 1,200 1,000 -16.67% NON-OPERATING REVENUES: funded Nine Mile Creek stream bank (147,322)(149,885)1.74% NON-OPERATING EXPENSES: stabilization and habitat enhancement project. 4. Continue grit chamber cleaning -2.53% NET INCOME (LOSS)$283,819 $276,636 5. Clean catch basins and inspect for repair. Capital Outlay/Construction$100,000 $750,000 650.00% 6. Work with MCWD to plan and design storm water improvements at PERSONNEL: expanded Cottageville Park site Number of FTE positions0.630.63 2013 BUDGET PAVILION Revenues and Expenses Projected Enterprise Fund 747 ActualActualActualBudgetBudgetPercent 20102011201220122013Change Revenues 1.39% Rental$ 298,520$ 316,940$ 308,700$ 308,700$ 313,000 Interest Earnings 2,055 1,573 1,000 1,000 1,000 Miscellaneous1.20% 46,071 67,583 51,480 51,480 52,100 Total Revenues386,095 1.36% 346,646 361,180 361,180366,100 Operating Expenses Salaries, Wages and Benefits Salaries and Wages0.50% 162,231 163,989 167,491 169,605 170,454 Fringe Benefits0.10% 47,015 47,624 47,189 47,302 47,347 211,613 0.41% Total Salaries and Wages 209,246 214,680 216,907217,801 Materials, Supplies and Services -4.05% Professional & Technical Services 5,835 4,625 6,974 7,400 7,100 Utilities and Maintenance1.20% 75,052 82,364 97,025 83,000 84,000 Operations 947 512 623 1,750 1,750 City Support Services-19.04% 19,115 20,351 20,488 20,798 16,838 Supplies and Materials1.19% 20,622 24,111 16,709 21,050 21,300 -2.25% Total Materials Supplies & Service 121,572 131,963 141,817 133,998 130,988 -0.60% Total Operating Expenses 330,818 343,576 356,498 350,905 348,789 Non-operating expenses 67,938 67,720 68,000 68,000 68,000 Total Expenses 418,905-0.51% 398,756 411,296 424,498 416,789 Net Income (Loss)-12.19% (52,110) ( 25,201) (63,318) ( 57,725) (50,689) The Pavilion fund is an ice rink enterprise. The operations for the ice arena, soccer league and dry floor are recorded here. 2013 BUDGET 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 2013: 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 2012FY 2013 ApprovedApprovedPercent BudgetBudgetChange OPERATING REVENUES:$350,580 $356,600 1.72% OPERATING EXPENSES: Salaries/Wages/Benefits216,907 217,801 0.41% Materials, Supplies & Services134,098 131,088 -2.24% Depreciation Expense68,000 68,000 0.00% Operating Income (Loss)419,005 416,889 -0.51% NON-OPERATING REVENUES:10,600 9,500 -10.38% NON-OPERATING EXPENSES:0 3,092 0.00% (LOSS)($57,825)($47,697)-17.51% NET INCOME Capital Outlay/Construction$38,000 $0 -100.00% PERSONNEL: Number of FTE positions2.92.4 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 2013 BUDGET DEBT SERVICE FUNDS Revenues and Expenditures YTD ActualActualActualBudgetBudgetPercent 20102011201220122013Change Revenues Property Tax$1,063,236$1,208,527$1,288,931$1,306,400$1,306,400 Special Assessments672,785658,437577,801552,000552,000 Interest12,39914,87813,0702,2453,72065.70% Miscellaneous - -10,500 - - Bond Premium - -65,704 - - Transfer In1,985,412710,9771,106,746679,492850,51925.17% Bond Proceeds4,515,000 -5,985,000 - - Total Revenues8,248,8322,592,8209,047,7532,540,1372,712,6396.79% Expenditures Bond expenditures Professional Fees51,9992,48398,3961,8005,406200.33% Miisc Other Charges - -200 -136,000 Principal1,060,0001,345,0001,635,0001,635,0001,775,0008.56% Interest755,122809,253785,845752,479676,400-10.11% Fiscal charges3,8633,7755,9684,2505,16021.41% Bond Discount 45,150 -12,830 - - Transfer Out6,901,307 -6,172,673 - - Total Expenditures8,817,4412,160,5118,710,9122,393,5292,597,9668.54% Sources (Uses) of Fund Balance(568,609)432,309146,608114,673-56.48% 336,841 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. 2013 BUDGET 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. 2013 BUDGET 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. 2013 BUDGET 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 2013 BUDGET 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. 2013 BUDGET 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. 2013 BUDGET 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. 2013 BUDGET 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. 2013 BUDGET